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Chapter 3 Multiple choice questions
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Chapter 3 Multiple choice questions
Quiz Content
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The stock of foreign direct investment (FDI) is measured as:
the total amount received over a one year period.
correct
incorrect
the total amount received over a five year period.
correct
incorrect
the total amount of FDI to date.
correct
incorrect
the current market value of FDI in a country.
correct
incorrect
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not completed
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In recent years the sectoral composition of FDI has changed:
in response to the increasing importance of natural resources in global output.
correct
incorrect
to reflect the decreasing importance of manufacturing output worldwide.
correct
incorrect
to reflect the increasing importance of traded services.
correct
incorrect
to reflect the increasing importance of global capital movements.
correct
incorrect
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The OLI or eclectic paradigm of international production refers to:
organization, location and internalization advantages.
correct
incorrect
organization, learning and internationalization.
correct
incorrect
ownership, location and internalization advantages.
correct
incorrect
ownership, location and internationalization.
correct
incorrect
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Globalization and growing income inequality between nations are associated with:
insufficient levels of free trade.
correct
incorrect
the decline in FDI following the 2008 global financial crisis.
correct
incorrect
declining levels of educational attainment in developed economies.
correct
incorrect
increased international economic exchange and technological change.
correct
incorrect
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Which of the following is likely to result in a reduction in value chain fragmentation:
new additive technologies such as 3D printing.
correct
incorrect
improvements in quality levels by outside contractors.
correct
incorrect
state support for the manufacturing base within emerging economies.
correct
incorrect
falling energy costs.
correct
incorrect
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The current Globalization wave differs from previous waves because:
the developed economies play a more significant role than in the past.
correct
incorrect
there is greater international exchange of knowledge intensive services.
correct
incorrect
governments play a more significant role in determining policy than in the past.
correct
incorrect
tariff levels have less of an impact on prices today than in the past.
correct
incorrect
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Globalization is beneficial for firms because:
it protects them against foreign competition.
correct
incorrect
it insulates them from the impact of events in other countries.
correct
incorrect
It opens up new market opportunities.
correct
incorrect
It increases the risk and uncertainty of operating in globalizing world economy.
correct
incorrect
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Globalization can be challenging for business because:
it can result in more competition.
correct
incorrect
It reduces vulnerability to political risk and uncertainty when operating internationally.
correct
incorrect
it means that prices can be increased.
correct
incorrect
all of the above.
correct
incorrect
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Which of the following is not likely to impede Globalization in an emerging economy?
delays in approval procedures
correct
incorrect
resource limitations in a market
correct
incorrect
poverty
correct
incorrect
literacy
correct
incorrect
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Chapter 3 suggests that globalization has experienced three main phases. During which phase was it "in retreat"?
during the 18th and 19th centuries.
correct
incorrect
during the interwar period of the 20th century.
correct
incorrect
after the Second World War.
correct
incorrect
none of the above as Globalization has been increasing steadily since the 1820s.
correct
incorrect
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