IB GROUP2

The comparison Walmart's revenues to Norway's Gross National Income (GNI) primarily to illustrate that...

• Retail companies are the most important part of the global economy.
• The economic influence of some transnational corporations can be comparable to that of entire nations.
• Norway is an economically weak country.
• All transnational corporations are American.

Which of the following scenarios is the BEST example of Foreign Direct Investment (FDI) as defined in the text?

• You buy 50 shares of Toyota stock on the Tokyo Stock Exchange.
• A German company (Siemens) builds a new wind turbine factory in the United States.
• A French tourist pays for a hotel stay in Italy.
• You import a smartphone that was made in China.

What is the key characteristic of economic globalization?

• It is a trend driven exclusively by government policies.
• It only involves the movement of physical goods across borders.
• It involves the international integration of multiple elements, including goods, capital, technology, and labor.
• It is a recent phenomenon that only began in the 21st century.

What has been the historical relationship between the growth of international trade and the growth of the world's overall economy (world output)?

• The growth of international trade has generally been slower than the growth of the world economy.
• The growth of international trade has consistently been faster than the growth of the world economy.
• The two have always grown at exactly the same rate.
• The text suggests there is no clear relationship between the two.

Theodore Levitt's theory, as mentioned in the text, argues that the "proletarianization" (standardization) of global markets is primarily driven by:

• The United Nations forcing countries to adopt similar standards.
• A natural decline in cultural differences over time.
• New technologies in communication and transportation.
• The dominance of the English language.

Which of the following is an example of a political driver of globalization?

• The internet
• Privatization of industries
• Low-cost manufacturing
• Market saturation

Free trade agreements such as NAFTA or the EU aim to:

• Increase tariffs
• Limit investment
• Expand markets and reduce barriers
• Restrict imports

Saturated home markets push companies to:

• Increase tariffs
• Expand to foreign markets
• Stop producing goods
• Focus only on domestic customers

Outsourcing production is an example of which driver?

• Political
• Technological
• Cost
• Competitive

Lower transport and communication costs can encourage globalization.

• True
• False