b. Globalization was widely regarded as a minor factor in causing the crisis.
c. Global output, trade, and investment plummeted, while unemployment skyrocketed.
d. The crisis led to massive government bailouts of failed firms in the United States but not elsewhere in the world.
ANSWER: c
41. Which of the following statements is true of the rapid globalization in the 1990s and the 2000s?
a. It suggested that barriers to market integration at borders are high.
b. It led to the historically accurate view that globalization is new.
c. It created fear among many people in developed economies that they would lose jobs.
d. It decreased the foreign direct investment (FDI) inflows and outflows.
ANSWER: c
42. Which of the following is a difference between risk management and scenario planning?
a. Risk management plans for either high risk or low risk, whereas scenario planning prepares to minimize the impact of only high-risk events.
b. Risk management is the identification and assessment of risks, whereas scenario planning is a technique to prepare and plan for multiple situations.
c. Risk management is a new phenomenon beginning in the late 20th century, whereas scenario planning started 2,000 or 8,000 years ago.
d. Risk management is driven by recent technological innovations, whereas scenario planning is driven by a Western ideology.
ANSWER: b
43. Which of the following statements is true of semiglobalization?
a. It is more complex than extremes of total isolation and total globalization.
b. It is a measure used for assessing and classifying risks.
c. It is about limiting oneself to one’s home country.
d. It is recent and one-directional.
ANSWER: a
44. Which of the following expression does the author use to describe globalization in the recent times?
a. Global localization
b. Total globalization
c. Semiglobalization
d. Global standardization
ANSWER: c
45. Which of the following statements is true of semiglobalization?
a. It is to be engaged.
b. It is to be opposed as a menace.
c. It is about limiting oneself to one’s home country.
d. It is recent and one-directional.
ANSWER: a
46. According to one of the three views of globalization, globalization is _____.
a. recent
b. the disintegration of countries and peoples of the world
c. one-directional
d. a process similar to the swing of a pendulum
ANSWER: d
47. Which of the following was a consequence of rapid globalization in the 1990s and 2000s?
a. It led to the historically accurate view that globalization is ancient.
b. It caused some factions in emerging economies to complain against the onslaught of multinational enterprises (MNEs).
c. It was widely accepted by developed countries as a way of increasing the number of jobs.
d. It helped nurture local companies in emerging economies and also preserve their cultures and values.
ANSWER: b
48. The global economy may be viewed as a pyramid. The growing number of opportunities at the base of the pyramid highlights the role this bottom tier will play in the years to come. How would an individual take advantage of this often-ignored level if he or she was occupying a top management position at a prominent MNE?
ANSWER: The global economy can be viewed as a pyramid. The top of the pyramid consists of one billion people with per capita income of $20,000 or higher. The second tier consists of another billion people making $2,000 to $20,000 a year. The vast majority of the world’s populations, representing approximately 5 billion people, live at the base of this pyramid, making less than $2,000 a year. Marketers have focused on the top two levels and end up ignoring the bottom tier. An increasing number of countries located in this bottom tier are demonstrating economic and marketing opportunities as they move from low- to middle-income levels. It is much easier to market to consumers with higher incomes. In the emerging world, marketing is different. There is no guarantee that media choices will be available or that your product will be a success. The challenges in the bottom of the pyramid require innovation, such as identifying special price points, as well as long-term commitment. Many consumers at the base of the pyramid may be illiterate, but they are brand conscious. Companies need to think outside the box and identify win-win strategies for this emerging consumer market. Although individuals living in developing economies have less purchasing power than their counterparts living in the developed countries, they still have needs and wants. Global firms capable of fulfilling these needs will make a profit and emerge as global marketers.