TEST BANK - Global Business Today Latest
Edition By Charles Hill, All Chapters
Complete Questions With Verified
Answers|Already Passed!!
T/F: Globalization directly and indirectly influences the politics, environment, geopolitics,
and
economics of virtually every country in the world. - CORRECT ANSWERS-TRUE
T/F: Although many firms conduct business across national boundaries, most global
commerce is
carried out by a small number of powerful firms. - CORRECT ANSWERS-TRUE
T/F: Even small local businesses often compete with global companies from around the
world. - CORRECT ANSWERS-TRUE
T/F: The importing of foreign goods by U.S. firms is called foreign direct investment. -
CORRECT ANSWERS-TRUE
T/F: The main purpose of inversion is to reduce corporate income tax obligations -
CORRECT ANSWERS-FALSE
T/F: The World Bank makes currency exchange easier for member countries so that
they can
participate in global trade. - CORRECT ANSWERS-FALSE
T/F: The World Trade Organization conducts negotiations, called "cycles," on various
topics, rotating its meetings among different cities - CORRECT ANSWERS-FALSE
T/F: Under the World Trade Organization's most favored nation rule, member countries
may not
discriminate against foreign products for any reason. - CORRECT ANSWERS-TRUE
T/F: Globalization is accepted worldwide and creates little controversy. - CORRECT
ANSWERS-FALSE
T/F: Productivity rises more quickly when countries produce goods and services for
which they have a
natural talent - CORRECT ANSWERS-TRUE
,T/F: Only manufacturing jobs are being lost through globalization. - CORRECT
ANSWERS-FALSE
T/F: Critics of globalization support the spread of American ideals and culture
throughout the rest of
the world. - CORRECT ANSWERS-FALSE
T/F: Most nations in the world share similar political, social and economic beliefs. -
CORRECT ANSWERS-FALSE
T/F: At the beginning of the 20th century, no country in the world had universal suffrage.
- CORRECT ANSWERS-TRUE
T/F: The term sector refers to broad divisions of a whole. - CORRECT ANSWERS-
TRUE
Global market channels involve a firm producing goods in:
A. Their home country and exporting them to other countries.
B. Their home country to sell at home.
C. A foreign country to sell at home.
D. A foreign country to sell abroad. - CORRECT ANSWERS-A. Their home country to
sell at home
A firm that has global operations has:
A. All of their manufacturing and service operations abroad.
B. Some or all of their manufacturing or service operations abroad.
C. Manufacturing but not service operations abroad.
D. Service but not manufacturing operations abroad. - CORRECT ANSWERS-B. Some
or all of their manufacturing or service operations abroad
A firm that would like to develop a global supply chain would:
A. Manufacture components or supplies in other countries.
B. Sell raw materials, components or supplies produced at home abroad.
C. Purchase raw materials, components, or supplies from sellers in other countries.
D. Check products that were manufactured abroad for defects in their home country. -
CORRECT ANSWERS-C. Purchase raw materials, components, or supplies from
sellers in other countries
The three strategies of globalization can be summarized using what three words?
A. Channels, operations, and chains.
B. Export, locate, and purchase.
C. Sell, make, and buy.
D. Ethics, import, and sell. - CORRECT ANSWERS-C. Sell, make, and buy
According to the United Nations, how many transnational corporations operate in the
global
,economy?
A. 49,000.
B. 104,000.
C. 290,000.
D. 900,000 - CORRECT ANSWERS-B. 104,000
Which of the following statements accurately describe the practice of tax inversion?
A. A company shifts their headquarters to a foreign country.
B. A company decreases cash holdings in a foreign country.
C. A company increases debt in their home country.
D. Both A and C, but not B. - CORRECT ANSWERS-D. Both A and C, but not B
Microfinance refers to:
A. Banks lending money to a very small number of businesses.
B. Banks lending money to low-income businesses.
C. Banks lending very small amounts of money to wealthy businesses.
D. Banks charging low fees for all business loans. - CORRECT ANSWERS-B. Banks
lending money to low income businesses
An example of an international financial and trade institution is:
A. World Bank.
B. International Monetary Fund.
C. World Trade Organization.
D. All of the above - CORRECT ANSWERS-D. All of the above
Representation on the World Bank's board of directors is based on:
A. The size of the member nation's population.
B. The size of the member nation's economy.
C. The size of the member nation's land mass.
D. Equal representation of all member nations. - CORRECT ANSWERS-B. The size of
the member nation's economy
The primary goal of a "vulture fund" is to:
A. Provide countries with debt-relief.
B. Pay back loans in default.
C. Increase global financial stability.
D. Make a profit. - CORRECT ANSWERS-D. Make a profitt
The primary purpose of the International Monetary Fund is to:
A. Lend foreign currency to member countries.
B. Exchange one currency for another.
C. Consolidate the debt facing third world nations.
D. Collect the interest on loans made by the World Bank to third-world nations. -
CORRECT ANSWERS-A. Lend foreign currency to member countries
The purpose of the World Trade Organization is to:
, A. Impose barriers to free trade among nations.
B. Eliminate barriers to free trade among nations.
C. Develop trading partnerships between rich and poor nations.
D. Decrease globalization and free trade - CORRECT ANSWERS-B. Eliminate barriers
to free trade among nations
Under the World Trade Organization's most-favored nation rule:
A. All import restrictions imposed by other nations on their goods are illegal unless a
cultural
waiver is issued.
B. All import restrictions are illegal unless proven scientifically.
C. Most-favored nations can impose heavy tariffs on other nations.
D. Most-favored nations can oppose the dumping of goods by any nation in their home
market - CORRECT ANSWERS-B. All import restrictions are illegal unless proven
scientifically
The theory of comparative advantage states that:
A. Productivity rises more quickly when countries produce goods and services for which
they have
a natural talent.
B. Productivity decreases when countries produce goods and services based on their
natural
resources.
C. All countries start out on an equal playing field.
D. Countries that operate under a policy of isolationism have a comparative advantage -
CORRECT ANSWERS-A. Productivity rises more quickly when countries produce
goods and services for which they have natural talent
An individual who is a supporter of globalization would argue that it helps the developing
world
by:
A. Giving entrepreneurs access to foreign investment funds to support economic
development.
B. Allowing new ideas and technological innovations to spread quickly.
C. Providing people in developing countries with more jobs.
D. All of the above. - CORRECT ANSWERS-D. All of the above
What U.S. company is the best example of using globalization to reduce the price of its
products?
A. K-Mart.
B. Toys R Us.
C. Walmart.
D. Macy's. - CORRECT ANSWERS-C. Walmart
A critic of globalization might argue that companies decide to manufacture in China
mainly
Edition By Charles Hill, All Chapters
Complete Questions With Verified
Answers|Already Passed!!
T/F: Globalization directly and indirectly influences the politics, environment, geopolitics,
and
economics of virtually every country in the world. - CORRECT ANSWERS-TRUE
T/F: Although many firms conduct business across national boundaries, most global
commerce is
carried out by a small number of powerful firms. - CORRECT ANSWERS-TRUE
T/F: Even small local businesses often compete with global companies from around the
world. - CORRECT ANSWERS-TRUE
T/F: The importing of foreign goods by U.S. firms is called foreign direct investment. -
CORRECT ANSWERS-TRUE
T/F: The main purpose of inversion is to reduce corporate income tax obligations -
CORRECT ANSWERS-FALSE
T/F: The World Bank makes currency exchange easier for member countries so that
they can
participate in global trade. - CORRECT ANSWERS-FALSE
T/F: The World Trade Organization conducts negotiations, called "cycles," on various
topics, rotating its meetings among different cities - CORRECT ANSWERS-FALSE
T/F: Under the World Trade Organization's most favored nation rule, member countries
may not
discriminate against foreign products for any reason. - CORRECT ANSWERS-TRUE
T/F: Globalization is accepted worldwide and creates little controversy. - CORRECT
ANSWERS-FALSE
T/F: Productivity rises more quickly when countries produce goods and services for
which they have a
natural talent - CORRECT ANSWERS-TRUE
,T/F: Only manufacturing jobs are being lost through globalization. - CORRECT
ANSWERS-FALSE
T/F: Critics of globalization support the spread of American ideals and culture
throughout the rest of
the world. - CORRECT ANSWERS-FALSE
T/F: Most nations in the world share similar political, social and economic beliefs. -
CORRECT ANSWERS-FALSE
T/F: At the beginning of the 20th century, no country in the world had universal suffrage.
- CORRECT ANSWERS-TRUE
T/F: The term sector refers to broad divisions of a whole. - CORRECT ANSWERS-
TRUE
Global market channels involve a firm producing goods in:
A. Their home country and exporting them to other countries.
B. Their home country to sell at home.
C. A foreign country to sell at home.
D. A foreign country to sell abroad. - CORRECT ANSWERS-A. Their home country to
sell at home
A firm that has global operations has:
A. All of their manufacturing and service operations abroad.
B. Some or all of their manufacturing or service operations abroad.
C. Manufacturing but not service operations abroad.
D. Service but not manufacturing operations abroad. - CORRECT ANSWERS-B. Some
or all of their manufacturing or service operations abroad
A firm that would like to develop a global supply chain would:
A. Manufacture components or supplies in other countries.
B. Sell raw materials, components or supplies produced at home abroad.
C. Purchase raw materials, components, or supplies from sellers in other countries.
D. Check products that were manufactured abroad for defects in their home country. -
CORRECT ANSWERS-C. Purchase raw materials, components, or supplies from
sellers in other countries
The three strategies of globalization can be summarized using what three words?
A. Channels, operations, and chains.
B. Export, locate, and purchase.
C. Sell, make, and buy.
D. Ethics, import, and sell. - CORRECT ANSWERS-C. Sell, make, and buy
According to the United Nations, how many transnational corporations operate in the
global
,economy?
A. 49,000.
B. 104,000.
C. 290,000.
D. 900,000 - CORRECT ANSWERS-B. 104,000
Which of the following statements accurately describe the practice of tax inversion?
A. A company shifts their headquarters to a foreign country.
B. A company decreases cash holdings in a foreign country.
C. A company increases debt in their home country.
D. Both A and C, but not B. - CORRECT ANSWERS-D. Both A and C, but not B
Microfinance refers to:
A. Banks lending money to a very small number of businesses.
B. Banks lending money to low-income businesses.
C. Banks lending very small amounts of money to wealthy businesses.
D. Banks charging low fees for all business loans. - CORRECT ANSWERS-B. Banks
lending money to low income businesses
An example of an international financial and trade institution is:
A. World Bank.
B. International Monetary Fund.
C. World Trade Organization.
D. All of the above - CORRECT ANSWERS-D. All of the above
Representation on the World Bank's board of directors is based on:
A. The size of the member nation's population.
B. The size of the member nation's economy.
C. The size of the member nation's land mass.
D. Equal representation of all member nations. - CORRECT ANSWERS-B. The size of
the member nation's economy
The primary goal of a "vulture fund" is to:
A. Provide countries with debt-relief.
B. Pay back loans in default.
C. Increase global financial stability.
D. Make a profit. - CORRECT ANSWERS-D. Make a profitt
The primary purpose of the International Monetary Fund is to:
A. Lend foreign currency to member countries.
B. Exchange one currency for another.
C. Consolidate the debt facing third world nations.
D. Collect the interest on loans made by the World Bank to third-world nations. -
CORRECT ANSWERS-A. Lend foreign currency to member countries
The purpose of the World Trade Organization is to:
, A. Impose barriers to free trade among nations.
B. Eliminate barriers to free trade among nations.
C. Develop trading partnerships between rich and poor nations.
D. Decrease globalization and free trade - CORRECT ANSWERS-B. Eliminate barriers
to free trade among nations
Under the World Trade Organization's most-favored nation rule:
A. All import restrictions imposed by other nations on their goods are illegal unless a
cultural
waiver is issued.
B. All import restrictions are illegal unless proven scientifically.
C. Most-favored nations can impose heavy tariffs on other nations.
D. Most-favored nations can oppose the dumping of goods by any nation in their home
market - CORRECT ANSWERS-B. All import restrictions are illegal unless proven
scientifically
The theory of comparative advantage states that:
A. Productivity rises more quickly when countries produce goods and services for which
they have
a natural talent.
B. Productivity decreases when countries produce goods and services based on their
natural
resources.
C. All countries start out on an equal playing field.
D. Countries that operate under a policy of isolationism have a comparative advantage -
CORRECT ANSWERS-A. Productivity rises more quickly when countries produce
goods and services for which they have natural talent
An individual who is a supporter of globalization would argue that it helps the developing
world
by:
A. Giving entrepreneurs access to foreign investment funds to support economic
development.
B. Allowing new ideas and technological innovations to spread quickly.
C. Providing people in developing countries with more jobs.
D. All of the above. - CORRECT ANSWERS-D. All of the above
What U.S. company is the best example of using globalization to reduce the price of its
products?
A. K-Mart.
B. Toys R Us.
C. Walmart.
D. Macy's. - CORRECT ANSWERS-C. Walmart
A critic of globalization might argue that companies decide to manufacture in China
mainly
