Multiple Choice

Question 1

Globalization refers to:

A. The expansion of multinational corporations into developing countries

B. The shift from manufacturing to services

C. The integration of national economies through trade, investment, and information flows

D. Government control of international markets

Correct Answer

C. The integration of national economies through trade, investment, and information flows

Question 2

Which of the following is a key driver of modern globalization?

A. Higher tariffs on imports

B. Advances in communication and transportation technologies

C. Declining consumer demand

D. Increased political isolation

Correct Answer

B. Advances in communication and transportation technologies

Question 3

Which statement best describes globalization today?

A. It affects only wealthy nations

B. It is a new phenomenon that began in the 2000s

C. It increases economic interdependence among countries

D. It eliminates national differences

Correct Answer

C. It increases economic interdependence among countries

True / False

Question 4

Globalization has occurred in earlier historical periods, but its current form is faster and more interconnected.

Correct Answer

True

Question 5

Globalization impacts only large multinational corporations, not individuals or small businesses.

Correct Answer

False

Question 6

Technological advances have reduced the cost of coordinating business activities across borders.

Correct Answer

True

Essay Questions

Question 7

Define globalization and explain why it is considered a central concept in global business.

Expected Elements

A complete answer should include:

Clear definition
Emphasis on integration and interdependence
Relevance to firms, markets, and consumers

Question 8

Explain two major drivers of globalization and describe how each has contributed to increased global integration.

Expected Elements

A complete answer should include:

Identification of drivers (e.g., technology, trade liberalization)
Explanation grounded in Chapter 1 concepts

Question 9

"Globalization creates both opportunities and challenges." Explain this statement using one example discussed or implied in Chapter 1.

Expected Elements

A complete answer should include:

Balanced perspective
Clear example (e.g., lower costs vs. inequality, access vs. disruption)