1.

A company does not need a large  size to facilitate, and benefit from, the globalization of markets.
   
  TRUE

A company does not have to be the size of multinational giants  to facilitate, and benefit from, the globalization of markets. In the United  States, for example, nearly 90 percent of firms that export are small  businesses employing less than 100 people, and their share of total U.S.  exports has grown steadily over the past decade to now exceed 20 percent.

AACSB: Knowledge Application
  Accessibility: Keyboard Navigation
  Blooms: Understand
  Difficulty: 1 Easy
  Gradable: automatic
  Learning Objective: 01-01 Understand what is meant by the term  globalization.
  Topic: What is Globalization?
  

2.

Companies hope to lower their  overall cost structure or improve the quality or functionality of their  product offering through globalization of production.
   
  TRUE

The globalization of production refers to the sourcing of goods  and services from locations around the globe to take advantage of national differences  in the cost and quality of factors of production. By doing this, companies  hope to lower their overall cost structure or improve the quality or  functionality of their product offering, thereby allowing them to compete  more effectively.

AACSB: Analytical Thinking
  Accessibility: Keyboard Navigation
  Blooms: Remember
  Difficulty: 1 Easy
  Gradable: automatic
  Learning Objective: 01-01 Understand what is meant by the term  globalization.
  Topic: What is Globalization?
  

3.

The most global markets currently  are markets for consumer products.
   
  FALSE

The most global markets currently are not markets for consumer  products—where national differences in tastes and preferences are still often  important enough to act as a brake on globalization—but markets for  industrial goods and materials that serve a universal need the world over.

AACSB: Analytical Thinking
  Accessibility: Keyboard Navigation
  Blooms: Remember
  Difficulty: 1 Easy
  Gradable: automatic
  Learning Objective: 01-01 Understand what is meant by the term  globalization.
  Topic: What is Globalization?
  

4.

Outsourcing is a process that is  limited to manufacturing enterprises.
   
  FALSE

Early outsourcing efforts were primarily confined to  manufacturing activities. Increasingly, however, companies are taking  advantage of modern communications technology, particularly the Internet, to  outsource service activities to low-cost producers in other nations.

AACSB: Analytical Thinking
  Accessibility: Keyboard Navigation
  Blooms: Remember
  Difficulty: 1 Easy
  Gradable: automatic
  Learning Objective: 01-01 Understand what is meant by the term  globalization.
  Topic: What is Globalization?