Which of the following is a societal consequence of market globalization?

Each of the following has contributed to the rapid growth of trade among nations EXCEPT ________.
Answer:A

a.
the increase in trade barriers


b.
the growth of emerging market countries


c.
advances in information technology


d.
the liberalization of markets

Which of the following best explains why export growth has outpaced the growth of domestic production during the last few decades?
Answer:C

a.
The cost to import products is generally higher than the cost to produce domestic products.



b.
Growth in gross domestic product in most countries has steadily increased since 1970.


c.
Advanced economies now source many of their consumable products from low-cost manufacturing nations.



d.
Both world exports and domestic production have grown significantly

The fourth phase of globalization is characterized by ________.

Answer:  D


a.
the enormous growth of cross-border trade and investment


b.
the rise of railroads and ocean transport


c.
the initiation of the Marshall Plan to reconstruct Europe


d.
the reduction of barriers to trade by Western industrialized countries

________ is the total value of products and services produced in a country over the course of a year.
Answer:A

a.
GDP


b.
FDI


c.
PPP


d.
CAD

Which of the following would NOT be considered an example of foreign direct investment (FDI)?

Answer: A

a.
cross-border purchase of stocks


b.
purchase of capital assets of a foreign company


c.
purchase of foreign land for business operations


d.
cross-border purchase of a textile plant