1.

What do you call a term that refers to the shift towards a more integrated and
interdependent world economy?
A. Globalization. C. International Trade
B. Industrialization. D. Foreign Exchange
2. If a firm moves into a nation not currently served by its rivals, many of those
rivals are sure to follow to prevent their competitor from
A. Losing a chance to trade to other countries.
B. Gaining an advantage
C. Exporting products abroad
D. Outsourcing the trends.
3. Which of the following is not a factor of production?
A. Labor. B. Capital. C. Energy. D. Resource
4. What term has allowed hospitals to outsource some radiology work to India,
where images from MRI scans and the like are read at night while U.S.
physicians sleep and the results are ready for them in the morning?
A. Globalization. C. Trade policy
B. Internet. D. Foreign exchange
5. Those are important actors in this trend, their very actions fostering increased
globalization.
A. Industrial firms. C. Modern firms
B. Foreign firms. D. Fashion trends
6. This agency is responsible for policing the world trading system and making sure
nation-states adhere to the rules laid down in trade treaties.
A. General Agreement on Tariffs and Trade
B. World Trade Organization
C. International Monetary Fund
D. United Nations
7. This agency is often seen as the lender of last resort to nation-states whose
economies are in turmoil and whose currencies are losing value against those of
other nations.
A. General Agreement on Tariffs and Trade
B. World Trade Organization
C. International Monetary Fund
D. United Nations
8. This was established October 24, 1945, by 51 countries committed to preserving
peace through international cooperation and collective security.
A. General Agreement on Tariffs and Trade
B. World Trade Organization
C. International Monetary Fund
D. United Nations
9. Under the umbrella of GATT, how many rounds of Negotiations among member
states worked to lower barriers to the free flow of goods and services?
A. Five. B. Six. C. Seven. D. Eight
10. The typical aim of GATT is to protect domestic industries from
A. Foreign exchange. C. Globalization
B. Foreign competition D. Trade Policy
11. This data explains that the volume of the world merchandize trade has grown
faster than
A. Exporting goods. C. International trade
B. World economy D. Foreign competition
12. From __________, the volume of world merchandise trade expanded more than
30-fold, outstripping the expansion of world production, which grew close to 10
times in real terms.
A. 1950-1990. C. 1970-2010
B. 1960-2000. D. 1980-2009
13. In 2009 the global economy contracted by _______ as the global financial crisis
that began with problems in the U.S. subprime mortgage lending market
reverberated around the world.
A. 2.3 percent. C. 2.5 percent
B. 2.4 percent. D. 2.6 percent
14. The volume of total exports from 1950-1970 is ________
A. 11.2. B. 12.1. C. 21.1. D. 21.0
15. Over the past 30 years, _____________ have been revolutionized by
developments in satellite, optical fiber, wireless technologies, and the Internet
and the World Wide Web (WWW).
A. Telecommunications. C. Global Communications
B. Microprocessors. D. World trade
16. This is a phenomenon which predicts that the power of microprocessor
technology doubles and its cost of production falls in half every 18 months.
A. Boyle’s law. C. Law of contraction
B. Moore’s law. D. Foreign exchange
17. It has revolutionized the transportation business, significantly lowering the costs
of shipping goods over long distances.
A. Industrialization. C. Containerization
B. Foreign Direct Investment D. Globalization
18. In addition to developments in communication technology, several major
innovations in transportation technology have occurred since ________.
A. World War I. C. Cold war
B. World War II. D. Spanish revolution
19. Before the advent of containerization, moving goods from one mode of transport
to another was ________________.
A. Very labor intensive, lengthy and costly
B. Very extensive, short and cheap
C. Crucial to export good to other countries
D. All are correct
20. As _____________ costs associated with the globalization of production have
declined, dispersal of production to geographically separate locations became
more economical.
A. Transportation. C. Global Communications
B. Telecommunications D. Microprocessors
21. Low-cost global communications networks such as the World Wide Web are
helping to create electronic global marketplaces.
A. Discover new modernized technologies
B. Create electronic global marketplaces.
C. Have a good relationship with other countries.
D. Explore more intrinsic and globalized ways of improving the world
economy.
22. Low-cost transportation has made it more economical to ship products around
the world, Thereby helping to create global markets.

A. Create electronic global marketplace.

B. Explore more intrinsic and globalized ways of improving the world
economy.
C. Create global markets
D. Discover new modernized technologies
23. In 1963 the United States accounted for 40.3 percent of world economic activity,
measured by _____________.
A. Gross Domestic Product. C. Productivity
B. Economists. D. Economic Growth
24. By 2009, the United States accounted for 24.l percent of world output (measured
by gross national income, or GNI), still the world’s _________________but down
significantly in relative size Since the 1960s.
A. Worst industrial Power. C. Shortest industrial power
B. Largest industrial power. D. Weakest industrial power
25. Managing an international business is different from managing a purely domestic
business for at least four reasons, except one
A. Countries are different.
B. The range of Problems confronted by a manager in an international
business is wider and the problems themselves more complex than those
confronted by a manager in a domestic business.
C. An international business must find ways to work within the limits imposed
by Government intervention in the international trade and investment
system,
D. An international business must find ways to work within the limits imposed
by specific govern-Mental interventions.
26. What term implies that national markets are merging into one huge marketplace.
However, it is important not to push this view too far?
A. Globalization debate
B. Globalization of markets
C. Globalization of Production
D. Anti-globalization
27. What term implies that firms are basing individual productive activities at the
optimal world locations for the particular activities?
A. Globalization debate. C. Globalization of production
B. Globalization of markets. D. Anti-globalization
28. It refers to a political system that stresses the primacy of collective goals over
individual goals.
A. Individualism. C. Collectivism
B. Socialism. D. Totalitarianism
29. Advocacy of collectivism can be traced to ____________, who in The Republic
argued that individual rights should be sacrificed for the good of the majority and
that property should be owned in common.
A. Aristotle. B. Descartes. C. Karl Marx. D. Plato
30. He argued that the Few benefit at the expense of the many in a capitalist society
where individual freedoms are Not restricted.
A. Adam smith. C. Plato
B. Karl Marx. D. Aristotle
31. They believed that socialism could be achieved only through violent revolution
and totalitarian dictatorship,
A. Economists. C. Communists
B. Social Democrats. D. Socialists
32. They committed themselves to achieving socialism by democratic means, turning
their backs on violent revolution and dictatorship.
A. Social Democrats. C. Communists
B. Socialists. D. Economists
33. Families typically work together to help each other survive and thrive. Parents
provide for the entire family rather than providing for only themselves. Once the
children are old enough, they might contribute to the family group by doing
chores or cooking dinner. What political system is described in the statement?
A. Collectivism. C. Socialism
B. Individualism D. Representative democracy
34. The traditional social institutions and organizations are discouraged and
suppressed. Thus, the social fabric is weakened and people become more
amenable to absorption into a single, unified movement. Participation in
approved public organizations is at first encouraged and then required. Old
religious and social ties are supplanted by artificial ties to the state and its
ideology. As pluralism and individualism diminish, most of the people embrace
the totalitarian state’s ideology. The infinite diversity among individuals blurs,
replaced by a mass conformity (or at least acquiescence) to the beliefs and
behavior sanctioned by the state. What political system is described in the
statement?
A. Democracy. C. Socialism
B. Theocratic law. D. Totalitarianism
35. The freedom of one man to own slaves conflicts with the freedom of the slaves to
be free. The problem with this is that it is based on an overly broad conception of
freedom. To consider the ability to own slaves “freedom” is a rather perverted
conception of freedom. Freedom should properly be conceived of as control over
one’s own life; I am free when I control my own life instead of being bossed
around by others. Control of other people (whether this is slavery or some other
form of control) is not freedom but hierarchy. What political system is described
in the statement?
A. Totalitarianism. C. Collectivism
B. Individualism D. Democracy
36.