Although the characteristics of the global business have changed dramatically over the past 40 years, as late as the 1960s all of the following demographic characteristics were true, except:
a. the U.S. dominated the world foreign direct investment picture.
b. roughly half the world was governed by centrally planned economies of the Communist world.
c. the U.S. dominated the world economy.
d. small, U.S. entrepreneurial firms dominated the international business scene.
By 2020 some one-fourth of the world’s 500 largest global corporations (Fortuneâ€™s Global 500 Corporations List) multinationals were:
a. Chinese enterprises.
b. Japanese enterprises.
c. U.S. enterprises.
d. British enterprises.
One key critics of globalization emphasize that the apparent decline in real wage rates of unskilled workers
a. is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers.
b. has been impacted most by technological change.
c. can be checked by increasing society’s investment in education to reduce the supply of unskilled workers.
d. owes far more to a technology-induced shift within advanced economies toward jobs that require significant education and skills.
f the critics of globalization are correct, all of the followings must be shown except:
a. even though labor’s share of the economic pie may have declined, living standards need not deteriorate if the size of the total pie has increased sufficiently to offset the decline in labor’s share.
b. the decline in labor’s share of national income must be due to moving production to low-wage countries, as opposed to improving production technology and productivity.
c. economic growth in developed nations has offset the fall in unskilled workers’ share of national income, raising their living standards.
d. the share of national income received by labor, as opposed to the share received by the owners of capital should have declined in advanced nations.