Biggest problem of environmental despoliation

20) Because of economic growth, a larger portion of the population can shift from ________ to ________.

A) recycling old products; disposing of old products

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B) disposing of old products; recycling old products

C) producing new products; developing new products

D) developing new products; producing new products

21) Because their citizens want a greater variety of goods and services at lower prices, many governments have ________.

A) reduced their restrictions on the international movement of goods and services

B) acted to reduce the pressures created by global competition

C) sought to eliminate reciprocal advantages negotiated through international organizations and treaties

D) increased their participation in multinational problem-solving efforts

22) Which of the following is a reason for recent governmental relaxation in restrictions on cross-border trade or resource movements?

A) Most countries face shortages of workers, so they seek foreign workers who can help them produce more.

B) Governments believe that this will decrease the need to make their own companies more innovative.

C) Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary.

D) Governments believe that domestic producers will become more efficient as a result of foreign competition.

23) Which of the following is a reason for recent governmental relaxation in restrictions on cross-border trade or resource movements?

A) Governments typically welcome the opportunity to increase the offshoring of a country’s domestic producers.

B) All countries have signed binding reciprocal trade agreements through international organizations.

C) Governments hope that other countries will lower their barriers in response.

D) Most countries face surpluses of workers, so they seek foreign markets in need of labor supplies.

24) A company starting out with a global focus, usually because of the international experience of its founders, is called a ________.

A) multinational enterprise

B) transnational company

C) strategically allied company

D) born-global company

25) In a strategy known as ________, many new companies locate themselves near competitors and suppliers.

A) offshoring

B) franchising

C) clustering

D) exporting

26) Companies often expand their business internationally in response to ________.

A) increased import restrictions in their domestic markets

B) competitive international advantages gained by their competitors

C) increased export restrictions in their domestic markets

D) a decrease in domestic competition

27) When a company successfully responds to foreign production and market opportunities, ________.

A) other companies will likely emulate its successful practices

B) it likely has a long-term advantage over competitors

C) it typically downsizes its domestic operations

D) its home government likely raises taxes on the company

28) According to your text, which of the following is NOT one of the three main reasons governments cooperate with each other?

A) to attack problems that one country acting alone cannot solve

B) to deal with areas of concern that lie outside the territory of any nation

C) to gain reciprocal advantages

D) to encourage cross-border movement of resources in response to interest rate differences

29) Governments have signed treaties to protect foreign-owned property rights, such as investments and patents. A primary reason for doing so is to ________.

A) gain reciprocal advantages

B) reduce the domestic effects of other countries’ economic policies

C) deal with areas of concern outside the territory of any one country

D) reduce national conflicts leading to violent encounters

30) Which of the following is NOT a source of disagreement about the use of noncoastal areas of the oceans, outer space, and Antarctica?

A) There is little short-term business potential in these areas.

B) There is disagreement about how commercial benefits should be shared among nations.

C) There is disagreement about who should be allowed to develop where.

D) The commercial viability of some areas has only recently been demonstrated.

31) Which of the following is a reason that governments cooperate through treaties, agreements, and consultation?

A) to gain a division of labor, such as by performing research and development in one country and production in another

B) to be in compliance with United Nations’ requirements

C) to attack problems jointly that one country acting alone cannot solve

D) to assure that all countries get an equitable share of taxes from multinational enterprises

32) Small countries worry about overdependence caused by globalization. Their concerns include all of the following EXCEPT which of the following?

A) A large country on whom they depend may pressure them on political matters.

B) A large international company may dictate its terms of operations in a small country.

C) A large company may exploit legal loopholes to avoid political oversight and taxes.

D) A large country may reduce its level of cultural homogeneity.

33) Although critics complain that globalization causes the consumption of too many nonrenewable resources while despoiling the environment, those in favor of globalization counter that ________.

A) globalization encourages the adoption of uniform and superior standards for combating environmental problems

B) economic growth created by globalization is largely in services, which neither use too many nonrenewable resources nor despoil the environment

C) the biggest problem of environmental despoliation occurs in the countries that are least globalized

D) pollution and toxic runoff problems do not increase with economic growth

34) Curtailment of logging in the Amazon region is generally viewed as environmentally beneficial for the planet as a whole. However, unemployed Brazilian workers have felt that job creation inside Brazil is more important than climate protection outside Brazil. This example best illustrates which of the following?

A) why smaller countries are concerned that large international countries are powerful enough to dictate operating terms

B) why globalization is needed to foster uniform standards for combating environmental problems

C) how global interests can conflict with a country’s local interests

D) how cultural homogeneity threatens the cultural foundation of smaller nations

35) Although globalization may bring economic growth, critics nevertheless contend that ________.

A) the growth is not fast enough

B) the inequality of gains puts some people in a relatively worse economic situation

C) this growth is mainly for the future, thus ignoring present economic growth needs

D) the cultural foundations of sovereignty are supported by globalization

36) The process of shifting production from a domestic to a foreign location is known as ________.

A) offshoring

B) outsourcing

C) licensing

D) joint venturing

37) Proponents of offshoring claim all EXCEPT which of the following?

A) Aggregate employment figures show that displaced workers find new jobs.

B) Offshoring increases the number of high-value jobs in the home countries of offshoring companies.

C) Offshoring is fundamentally better for workers than the introduction of labor-saving technologies.

D) There are upper limits on offshoring because there are not enough workers abroad with needed skills who will permanently work for low wages.

38) A major criticism of offshoring is that it ________.

A) increases production costs

B) exchanges good jobs for bad jobs

C) threatens the sovereignty of larger countries

D) allows companies to avoid payment of any taxes

39) Critics of offshoring claim all EXCEPT which of the following?

A) Cost savings are seldom passed on to final consumers.

B) Workers who have been displaced by offshoring do not have the skills needed for higher-value jobs.

C) Incomes of workers in offshoring countries have gone down as a percentage of national income.

D) Offshoring reduces the incomes of people in low-wage countries.

40) Which of the following conditions must be met for a company to increase profits through foreign sales?

A) The company can obtain resources abroad.

B) The costs to make the sales do not increase disproportionately.

C) The company can offshore its production.

D) The foreign market can be reached through exporting rather than direct investment.

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