Globalisation: Impact on Business and the Global Economy

Question 1

What is the primary role of international organisations, such as the World Trade Organisation (WTO), in globalisation?

Accepted Answer

To facilitate trade and reduce trade barriers

Answer

To set and enforce global labour standards

Answer

To provide financial assistance to developing countries

Answer

To promote cultural exchange and understanding

Question 2

Which of the following is a key characteristic of a globalised business?

Accepted Answer

Extensive use of outsourcing and offshoring

Answer

Emphasis on local markets and customer preferences

Answer

Limited international operations and investment

Answer

Investment solely in domestic research and development

Question 3

Which of the following is NOT a factor contributing to globalisation?

Accepted Answer

Government regulations

Answer

Advancements in technology

Answer

Reduced trade barriers

Answer

Increased consumer demand

Question 4

Which of the following is a potential benefit of globalisation for businesses?

Accepted Answer

Access to new markets

Answer

Increased production costs

Answer

Reduced economies of scale

Answer

Weakening of brand equity

Question 5

The World Trade Organization (WTO) is an international organisation that plays a crucial role in promoting globalisation. What is one of the primary functions of the WTO?

Accepted Answer

Negotiating trade agreements

Answer

Enforcing trade laws

Answer

Providing financial assistance to developing countries

Answer

Promoting human rights

Question 6

Globalisation has been criticised for its potential adverse effects on specific population groups. Which of the following is NOT a potential negative impact of globalisation?

Accepted Answer

Improved living standards for all

Answer

Increased income inequality

Answer

Environmental degradation

Answer

Exploitation of workers in developing countries

Question 7

The concept of 'offshoring' refers to the practice of:

Accepted Answer

Relocating business operations to another country

Answer

Expanding operations into new markets

Answer

Outsourcing non-core functions to external providers

Answer

Investing in research and development

Question 8

Globalisation has influenced the way businesses operate and compete in the global marketplace. Which of the following is NOT a potential implication of globalisation for businesses?

Accepted Answer

Reduced need for marketing efforts

Answer

Increased need for cultural adaptability

Answer

Greater focus on sustainability

Answer

Increased reliance on technology

Question 9

What term refers to the process of countries becoming more connected and interdependent?

Accepted Answer

Globalisation

Answer

Internationalisation

Answer

Liberalisation

Answer

Regionalisation

Question 10

Which of these is NOT a challenge businesses face due to cultural differences in a global market?

Accepted Answer

Increased competition from global rivals

Answer

Communication barriers

Answer

Adapting products to local tastes

Answer

Meeting legal requirements in different countries

Question 11

Identify the factor that is NOT a driver of globalisation:

Accepted Answer

Limited global economic cooperation

Answer

Advancements in transportation and communication technologies

Answer

Supportive government policies promoting free trade

Answer

Growing consumer demand for global products

Question 12

What is the primary objective of a multinational corporation (MNC)?

Accepted Answer

To expand business activities on a global scale

Answer

To focus operations solely within domestic markets

Answer

To manufacture products exclusively for export

Answer

To minimize tax obligations

Question 13

What term describes the growing interconnectedness of global economies and markets?

Accepted Answer

Global integration

Answer

Cross-border trade

Answer

Market liberalisation

Answer

Trade protectionism

Question 14

What is the term used to describe the movement of individuals across borders for work or education?

Accepted Answer

Migration

Answer

Relocation

Answer

Emigration

Answer

Expatriation

Question 15

Which factor does NOT contribute to the process of globalisation?

Accepted Answer

Increased border controls and trade barriers

Answer

Advancements in technology

Answer

Growing consumer demand for variety

Answer

Government policies favouring international trade

Question 16

What is the term used to describe the process of adapting products and services to meet the needs of different cultures?

Accepted Answer

Localisation

Answer

Globalisation

Answer

Internationalisation

Answer

Standardisation

Question 17

Which of the following is a primary reason for the increased interconnectedness of countries and markets globally?

Accepted Answer

Advancements in transportation and communication technologies

Answer

Reduced government regulations

Answer

Increased consumer spending

Answer

Political alliances

Question 18

Which of the following is a significant consequence of globalisation on the global economy?

Accepted Answer

Greater economic interdependence

Answer

Elimination of poverty

Answer

Enhanced environmental sustainability

Answer

Reduced income inequality

Question 19

What is the term used to describe businesses with operations in multiple countries?

Accepted Answer

Multinational corporations

Answer

Small and medium enterprises

Answer

Joint ventures

Answer

Non-governmental organizations

Question 20

Which organization plays a pivotal role in promoting international trade and resolving trade disputes?

Accepted Answer

World Trade Organization

Answer

International Monetary Fund

Answer

United Nations

Answer

Organisation for Economic Co-operation and Development

Question 21

What is the term used to describe the spread and exchange of cultural practices and beliefs across borders?

Accepted Answer

Cultural diffusion

Answer

Cultural assimilation

Answer

Cultural homogenization

Answer

Cultural isolation

Question 22

What is the term used to describe government policies aimed at reducing trade barriers?

Accepted Answer

Liberalisation

Answer

Protectionism

Answer

Nationalisation

Answer

Privatisation

Question 23

Which of the following is NOT a key driver of globalization?

Accepted Answer

Cultural diversity

Answer

Technological advancements

Answer

Political alliances

Answer

Economic liberalization

Question 24

What is the term used to describe the practice of moving production processes to countries with lower labor costs?

Accepted Answer

Offshoring

Answer

Outsourcing

Answer

Insourcing

Answer

Nearshoring

Question 25

What is the term used to describe the interconnectedness and interdependence of the world's economies?

Accepted Answer

Economic interdependence

Answer

Global village

Answer

World market

Answer

Free trade zone

Question 26

Which of the following is an example of a non-tariff barrier to international trade?

Accepted Answer

Technical regulations

Answer

Tariffs

Answer

Quotas

Answer

Subsidies

Question 27

The term used to describe the increasing integration and interdependence of the world's economies and cultures is:

Accepted Answer

Globalization

Answer

Internationalization

Answer

Westernization

Answer

Economic integration

Question 28

The practice of relocating production processes to countries with lower labor costs is known as:

Accepted Answer

Offshoring

Answer

Insourcing

Answer

Nearshoring

Answer

Outsourcing

Question 29

Which of the following is NOT considered a primary driver of globalisation?

Accepted Answer

Political stability

Answer

Technological advancements

Answer

Increased economic interdependency

Answer

Cultural homogenisation

Question 30

What is the process by which businesses establish operations and production facilities in multiple countries?

Accepted Answer

Multinationalisation

Answer

Globalisation

Answer

Internationalisation

Answer

Transnationalisation

Question 31

What is the term used to describe the process by which businesses adapt their products, marketing, and operations to suit different national markets?

Accepted Answer

Localisation

Answer

Globalisation

Answer

Internationalisation

Answer

Standardisation

Question 32

Which of the following is NOT an example of a global organisation?

Accepted Answer

National government

Answer

World Trade Organization

Answer

United Nations

Answer

European Union

Question 33

Which of the following is NOT a primary driver of globalisation?

Accepted Answer

Cultural homogeneity

Answer

Technological advancements

Answer

Increased consumer demand

Answer

Deregulation of trade barriers

Question 34

Which of the following is a benefit of outsourcing?

Accepted Answer

Reduced labour costs

Answer

Improved quality of production

Answer

Greater control over operations

Answer

Elimination of language barriers

Question 35

What is a key characteristic of a multinational enterprise (MNE)?

Accepted Answer

Operations in multiple countries

Answer

Headquarters in a single country

Answer

Ownership by multiple governments

Answer

Focus on domestic markets

Question 36

What is a primary function of the World Trade Organization (WTO)?

Accepted Answer

To regulate international trade

Answer

To promote economic development

Answer

To protect intellectual property rights

Answer

To provide humanitarian aid

Question 37

Which of the following is an indicator of a country's level of globalisation?

Accepted Answer

Globalisation index

Answer

GDP per capita

Answer

Population growth rate

Answer

Literacy rate

Question 38

How does globalisation differ from internationalisation?

Accepted Answer

Globalisation focuses on worldwide integration, while internationalisation focuses on specific regions.

Answer

Internationalisation focuses on worldwide integration, while globalisation focuses on specific regions.

Answer

They are essentially the same concept.

Answer

Globalisation is a political process, while internationalisation is an economic process.

Question 39

Which of the following is **not** a key driver of globalization?

Accepted Answer

Political stability

Answer

Technological advancements

Answer

Economic liberalization

Answer

Cultural convergence

Question 40

What is the main advantage for businesses that engage in offshoring?

Accepted Answer

Reduced labor costs

Answer

Access to new markets

Answer

Increased innovation

Answer

Improved customer service

Question 41

Which of the following is NOT a primary driver of globalization?

Accepted Answer

Government intervention

Answer

Increased consumer demand

Answer

Free trade agreements

Answer

Technological advancements

Question 42

What is the primary advantage of global sourcing for businesses?

Accepted Answer

Reduced production costs

Answer

Improved customer service

Answer

Enhanced brand image

Answer

Increased sales in domestic markets

Question 43

Which of the following is a recognized negative impact of globalization on the global economy?

Accepted Answer

Increased income inequality

Answer

Reduced unemployment

Answer

Increased economic growth

Answer

Improved living standards

Question 44

Which of the following is a key characteristic of a business that has successfully globalized its operations?

Accepted Answer

Operates in multiple countries

Answer

Has limited international exposure

Answer

Focuses solely on domestic markets

Answer

Relies heavily on government support

Question 45

What is the term used to describe the process of moving production facilities to other countries to take advantage of lower costs?

Accepted Answer

Offshoring

Answer

Expansion

Answer

Relocation

Answer

Outsourcing

Question 46

Which of the following is a recognized benefit of cultural diversity in the workplace?

Accepted Answer

Increased creativity and innovation

Answer

Enhanced customer loyalty

Answer

Improved productivity

Answer

Reduced communication barriers

Question 47

What is the term used to describe the increasing interconnectedness of people and businesses around the world?

Accepted Answer

Globalization

Answer

Internationalization

Answer

Regionalization

Answer

Modernization

Question 48

Which of the following is NOT a challenge faced by businesses operating in a globalized economy?

Accepted Answer

Elimination of cultural differences

Answer

Regulatory compliance

Answer

Currency fluctuations

Answer

Language barriers

Question 49

What is the impact of globalization on the demand for skilled labor in developed countries?

Accepted Answer

Increased demand for skilled labor

Answer

Increased demand for unskilled labor

Answer

Reduced demand for labor

Answer

No significant impact on labor demand