Professional Documents
Culture Documents
1. Globalization directly and indirectly influences the politics, environment, geopolitics, and
economics of virtually every country in the world.
True False
2. Although many firms conduct business across national boundaries, most global commerce is
carried out by a small number of powerful firms.
True False
3. Even small local businesses often compete with global companies from around the world.
True False
4. The importing of foreign goods by U.S. firms is called foreign direct investment.
True False
True False
4-1
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McGraw-Hill Education.
6. The World Bank makes currency exchange easier for member countries so that they can
True False
7. The World Trade Organization conducts negotiations, called "cycles," on various topics, rotating its
meetings among different cities.
True False
8. Under the World Trade Organization's most favored nation rule, member countries may not
True False
True False
10. Productivity rises more quickly when countries produce goods and services for which they have a
natural talent.
True False
True False
12. Critics of globalization support the spread of American ideals and culture throughout the rest of
the world.
True False
4-2
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McGraw-Hill Education.
13. Most nations in the world share similar political, social and economic beliefs.
True False
14. At the beginning of the 20th century, no country in the world had universal suffrage.
True False
True False
4-3
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McGraw-Hill Education.
18. A firm that would like to develop a global supply chain would:
D. Check products that were manufactured abroad for defects in their home country.
19. The three strategies of globalization can be summarized using what three words?
20. According to the United Nations, how many transnational corporations operate in the global
economy?
A. 49,000.
B. 104,000.
C. 290,000.
D. 900,000.
21. Which of the following statements accurately describe the practice of tax inversion?
4-4
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McGraw-Hill Education.
22. Microfinance refers to:
A. World Bank.
D. Make a profit.
4-5
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McGraw-Hill Education.
26. The primary purpose of the International Monetary Fund is to:
D. Collect the interest on loans made by the World Bank to third-world nations.
A. All import restrictions imposed by other nations on their goods are illegal unless a cultural
waiver is issued.
D. Most-favored nations can oppose the dumping of goods by any nation in their home market.
4-6
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McGraw-Hill Education.
29. The theory of comparative advantage states that:
A. Productivity rises more quickly when countries produce goods and services for which they have
a natural talent.
B. Productivity decreases when countries produce goods and services based on their natural
resources.
30. An individual who is a supporter of globalization would argue that it helps the developing world
by:
31. What U.S. company is the best example of using globalization to reduce the price of its products?
A. K-Mart.
B. Toys R Us.
C. Walmart.
D. Macy's.
4-7
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McGraw-Hill Education.
32. A critic of globalization might argue that companies decide to manufacture in China mainly
because of China's:
B. Moving production jobs to the country with the lowest labor cost.
A. Fair elections.
B. An independent media.
C. A government with power balanced among executive, legislative, and judicial branches.
A. Lithuania.
B. Vietnam.
C. Thailand.
D. Russia.
4-8
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McGraw-Hill Education.
36. The most important agreement which codifies human rights is the:
37. A society where economic power is concentrated in the hands of government officials and political
authorities is called:
B. A social democracy.
D. A military dictatorship.
A. Economic assets that are privately owned and exchanged in an open market.
39. The Heritage Foundation scored which nation of the world among the most repressed in 2012?
A. Hong Kong.
B. Australia.
C. North Korea.
D. Singapore.
4-9
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McGraw-Hill Education.
40. Assets that a person accumulates and owns at a certain point in time are called:
A. Income.
B. Equity.
C. Wealth.
D. Microfinance.
41. The percentage of global wealth concentrated at the Bottom of the Pyramid is:
A. 8 percent.
B. 22 percent.
C. 60 percent.
D. 70 percent.
C. Around 400 billion people globally sit at the bottom of the pyramid.
4-10
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McGraw-Hill Education.
44. Government has distinctive resources and competencies including:
B. Nongovernmental organizations.
46. What is a transnational corporation? How do these corporations operate in the global
marketplace?
4-11
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
47. Describe the roles of the World Bank, International Monetary Fund, and World Trade Organization
48. Discuss the benefits and costs of globalization. Provide examples of how globalization has helped
or harmed individual nations and the world economy.
4-12
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
50. Compare and contrast the world's political and economic systems and their effects on
globalization.
51. Explain global wealth and power inequalities. What are the special challenges of serving the
"bottom of the pyramid" sector?
52. How can global action networks help global problem solving?
4-13
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 04 Business in a Globalized World Answer Key
1. Globalization directly and indirectly influences the politics, environment, geopolitics, and
TRUE
2. Although many firms conduct business across national boundaries, most global commerce is
TRUE
3. Even small local businesses often compete with global companies from around the world.
TRUE
4-14
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
4. The importing of foreign goods by U.S. firms is called foreign direct investment.
FALSE
TRUE
6. The World Bank makes currency exchange easier for member countries so that they can
participate in global trade.
FALSE
7. The World Trade Organization conducts negotiations, called "cycles," on various topics, rotating
FALSE
4-15
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
8. Under the World Trade Organization's most favored nation rule, member countries may not
discriminate against foreign products for any reason.
TRUE
FALSE
10. Productivity rises more quickly when countries produce goods and services for which they have
a natural talent.
TRUE
FALSE
4-16
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
12. Critics of globalization support the spread of American ideals and culture throughout the rest
of the world.
FALSE
13. Most nations in the world share similar political, social and economic beliefs.
FALSE
14. At the beginning of the 20th century, no country in the world had universal suffrage.
TRUE
TRUE
4-17
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Multiple Choice Questions
4-18
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
18. A firm that would like to develop a global supply chain would:
D. Check products that were manufactured abroad for defects in their home country.
19. The three strategies of globalization can be summarized using what three words?
4-19
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
20. According to the United Nations, how many transnational corporations operate in the global
economy?
A. 49,000.
B. 104,000.
C. 290,000.
D. 900,000.
21. Which of the following statements accurately describe the practice of tax inversion?
4-20
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
22. Microfinance refers to:
A. World Bank.
4-21
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
24. Representation on the World Bank's board of directors is based on:
D. Make a profit.
4-22
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
26. The primary purpose of the International Monetary Fund is to:
D. Collect the interest on loans made by the World Bank to third-world nations.
4-23
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
28. Under the World Trade Organization's most-favored nation rule:
A. All import restrictions imposed by other nations on their goods are illegal unless a cultural
waiver is issued.
D. Most-favored nations can oppose the dumping of goods by any nation in their home
market.
A. Productivity rises more quickly when countries produce goods and services for which they
B. Productivity decreases when countries produce goods and services based on their natural
resources.
4-24
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
30. An individual who is a supporter of globalization would argue that it helps the developing
world by:
31. What U.S. company is the best example of using globalization to reduce the price of its
products?
A. K-Mart.
B. Toys R Us.
C. Walmart.
D. Macy's.
4-25
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
32. A critic of globalization might argue that companies decide to manufacture in China mainly
because of China's:
B. Moving production jobs to the country with the lowest labor cost.
A. Fair elections.
B. An independent media.
C. A government with power balanced among executive, legislative, and judicial branches.
4-26
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Difficulty: 1 Easy
Learning Objective: 04-04 Identifying the major types of political and economic systems in which companies operate across the
world.
A. Lithuania.
B. Vietnam.
C. Thailand.
D. Russia.
36. The most important agreement which codifies human rights is the:
4-27
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
37. A society where economic power is concentrated in the hands of government officials and
political authorities is called:
B. A social democracy.
D. A military dictatorship.
A. Economic assets that are privately owned and exchanged in an open market.
4-28
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
39. The Heritage Foundation scored which nation of the world among the most repressed in 2012?
A. Hong Kong.
B. Australia.
C. North Korea.
D. Singapore.
40. Assets that a person accumulates and owns at a certain point in time are called:
A. Income.
B. Equity.
C. Wealth.
D. Microfinance.
4-29
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
41. The percentage of global wealth concentrated at the Bottom of the Pyramid is:
A. 8 percent.
B. 22 percent.
C. 60 percent.
D. 70 percent.
C. Around 400 billion people globally sit at the bottom of the pyramid.
4-30
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
43. Experts attribute the growth of nongovernmental organizations to:
4-31
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
45. An example of a Global Action Network, or GAN, is:
B. Nongovernmental organizations.
46. What is a transnational corporation? How do these corporations operate in the global
marketplace?
Learning Objective: 04-01 Defining globalization and classifying the major ways in which companies enter the global
marketplace.
4-32
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McGraw-Hill Education.
47. Describe the roles of the World Bank, International Monetary Fund, and World Trade
Organization as international financial and trade institutions.
Learning Objective: 04-02 Identifying the international financial and trade institutions that have shaped the globalization process
in recent decades.
48. Discuss the benefits and costs of globalization. Provide examples of how globalization has
helped or harmed individual nations and the world economy.
Learning Objective: 04-03 Analyzing the benefits and costs of the globalization of business.
Learning Objective: 04-03 Analyzing the benefits and costs of the globalization of business.
4-33
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
50. Compare and contrast the world's political and economic systems and their effects on
globalization.
Learning Objective: 04-04 Identifying the major types of political and economic systems in which companies operate across the
world.
51. Explain global wealth and power inequalities. What are the special challenges of serving the
"bottom of the pyramid" sector?
Learning Objective: 04-05 Understanding global inequalities of wealth and income and analyzing the special challenges of
serving those at the "bottom of the pyramid".
52. How can global action networks help global problem solving?
Learning Objective: 04-06 Assessing how businesses can work collaboratively with governments and the civil sector to address
global social issues.
4-34
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.