QUESTION 1

1. Which one of the following statements best identifies the central theme of the book?

   		an explanation of globalization at work in the world today
   		reversion of the global economy to a socialist state
   		the struggle between the forces of communisim and capitalism
   		the struggle between the religions of the lexus and the olive tree countries

QUESTION 2

1. Which one of the following determines into which countries foreign direct investment by multinational corporations will occur?

   		the electronic herd
   		the U.S. Federal Reserve Bank
   		the Japanese central bank
   		the lexus countries

QUESTION 3

1. Which one of the following moves the fastest with respect to its actions in the global financial markets?

   		short-horn cattle
   		long-horn cattle
   		the Japanese central bank
   		the lexus countries

QUESTION 4

1. In the opinion of the author, regarding the future of globalization

   		in the 21st century a country has no choice but to globalize
   		a lexus country will be less likely to accept future globalization
   		the electronic herd is the symbol of globalization
   		an olive tree country will be more likely to accept future globalization

QUESTION 5

1. Which one of the following is NOT a characteristic of the golden straitjacket?

   		making the government sector the primary engine of economic growth
   		reducing the size of the government bureaucracy
   		opening the bnaking industry within a country to permit foreign ownership
   		deregulating banking and capital markets

QUESTION 6

1. To fit into the golden straitjacket, a country must be seen to follow the golden rules that include

   		balancing a country's national budget
   		the government as the primary engine of economic growth
   		establishing strict government regulations on an economy's financial markets
   		nationalizing the private sector10 points

QUESTION 7

1. In the book, the symbol of the modern, globalized world is referred to as the

   		Lexus automobile
   		olive tree
   		Toyota factory
   		the electronic herd

QUESTION 8

1. The long-horn cattle are represented in the book as

   		multinational corporations
   		currency traders
   		stock market brokers
   		developing countries

QUESTION 9

1. In the title of the book, the olive tree represents the symbol of

   		traditional life in an agricultural society
   		modern life in an ever-changing world
   		the struggle between the traditional world and the modern world
   		the free market economy

QUESTION 10

1. Which one of the following would belong to the group Friedman refers to as the short-horn cattle?

   		a currency trader
   		a country's prime minister
   		an insurance company executive
   		a bank board member