Chapter 01 Globalization Answer Key

True / False Questions

1.

As a result of globalization, we have been moving toward a world in which national economies are

(p. 7)

relatively self-contained entities.

FALSE
Over the past three decades a fundamental shift has been occurring in the world economy. We have been moving away from a world in which national economies were relatively self-contained entities. AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Understand what is meant by the term globalization.
Topic: Introduction

2.

By offering the same basic product worldwide, firms help to create a global market.

TRUE
Consumer products such as Citigroup credit cards, Coca-Cola soft drinks, video games,
McDonald’s hamburgers, Starbucks coffee, and IKEA furniture are frequently held up as prototypical examples of this trend. The firms that produce these products are more than just benefactors of this trend; they are also facilitators of it. By offering the same basic product worldwide, they help to create a global market.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Understand what is meant by the term globalization.
Topic: What Is Globalization?

3.

A company has to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets.

FALSE
A company does not have to be the size of multinational giants to facilitate, and benefit from, the globalization of markets.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Understand what is meant by the term globalization.
Topic: What Is Globalization?

4.

As a result of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries.

FALSE
Significant differences