Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
Chapter 1—Globalizing Business
TRUE/FALSE
1. A multinational enterprise is a firm that engages in foreign direct investment by directly managing
value-added activities in other countries.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 4 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
2. The term “emerging markets” refers to all markets other than the developed markets.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
3. Gross domestic product (GDP) is the sum of value added by resident firms, households, and
governments operating in an economy.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
4. Majority of the global GDP is contributed by the emerging markets.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
5. Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and
services different currencies can purchase.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
6. Purchasing power parity (PPP) is calculated as the sum of value added by resident firms, households,
and governments operating in an economy.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
7. Emerging markets contribute about 26% of global GDP without adjusting for purchasing power parity
(PPP).
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 7 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
8. More than half the GDP produced by emerging markets comes from outside the BRIC countries.
Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
,Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 7 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
9. On the global economic pyramid, the Triad refers to developed economies consisting of North
America, Western Europe, and Japan.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
10. All the countries of the BRIC belong to the top tier of the global economic pyramid.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
11. The second tier of the global economic pyramid is made up of countries with a per capita annual
income of more than $20,000.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
12. The emerging markets of the world are placed at the top of the global economic pyramid.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
13. The global economic pyramid does not represent countries that have a per capita annual income of less
than $2,000.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
14. The term "base of the pyramid" represents economies where individuals make less than $2,000 a year.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
15. Reverse innovations are innovations that are adopted first in the Triad-based multinationals and then
diffused around the world.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
16. Reverse innovation is an example of bottom up innovation.
ANS: T PTS: 1 DIF: Difficulty: Moderate
Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
,Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
REF: p. 10 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
17. The Group of 20 includes the European Union (EU)—a regional bloc.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 11 OBJ: LO: 1-2 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
18. Globalization has driven up the salaries of low-level jobs.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic
KEY: Bloom's: Comprehension
19. An international premium is a significant pay raise awarded to expatriate employees working abroad.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
20. Approximately 80 million people worldwide are employed by foreign-owned firms.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 13 OBJ: LO: 1-2 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
21. Overall, the focus on firm performance around the globe defines the field of global business more than
anything else.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 15 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
22. An institution-based view suggests that the success and failure of firms are enabled and constrained by
business norms of the host nation.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 15 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Comprehension
23. Formal institutions include laws, regulations, and rules.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 15 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
24. The institution-based view places emphasis on the external factors that could affect a firm.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 16 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
, Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
25. Focusing on a firm’s internal resources and capabilities is the main emphasis of the resource-based
view.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 16 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
26. Liability of foreignness is the inherent disadvantage experienced by foreign firms in host counties
because of their non-native status.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 16 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
27. Most opponents of globalization view globalization as a long-run historical evolution since trade
began.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: pp. 18-19 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
28. According to the pendulum view of globalization, globalization is a relatively new phenomenon
triggered by the information revolution of early 1990s.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 19 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
29. Scenario planning is a technique to prepare and plan exclusively for high risk scenarios.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 20 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
30. Standardization of markets would lead to a state of semiglobalization.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 21 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Comprehension
31. Semiglobalization is primarily caused by the practice of total isolation.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 21 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Comprehension
32. The current state of globalization around the world is that of semiglobalization.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 21 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
33. Semiglobalization calls for adopting one way of doing business for all conditions.
Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
Chapter 1—Globalizing Business
TRUE/FALSE
1. A multinational enterprise is a firm that engages in foreign direct investment by directly managing
value-added activities in other countries.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 4 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
2. The term “emerging markets” refers to all markets other than the developed markets.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
3. Gross domestic product (GDP) is the sum of value added by resident firms, households, and
governments operating in an economy.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
4. Majority of the global GDP is contributed by the emerging markets.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
5. Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and
services different currencies can purchase.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
6. Purchasing power parity (PPP) is calculated as the sum of value added by resident firms, households,
and governments operating in an economy.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 5 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
7. Emerging markets contribute about 26% of global GDP without adjusting for purchasing power parity
(PPP).
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 7 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
8. More than half the GDP produced by emerging markets comes from outside the BRIC countries.
Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
,Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 7 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
9. On the global economic pyramid, the Triad refers to developed economies consisting of North
America, Western Europe, and Japan.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
10. All the countries of the BRIC belong to the top tier of the global economic pyramid.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
11. The second tier of the global economic pyramid is made up of countries with a per capita annual
income of more than $20,000.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
12. The emerging markets of the world are placed at the top of the global economic pyramid.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
13. The global economic pyramid does not represent countries that have a per capita annual income of less
than $2,000.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
14. The term "base of the pyramid" represents economies where individuals make less than $2,000 a year.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
15. Reverse innovations are innovations that are adopted first in the Triad-based multinationals and then
diffused around the world.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 9 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
16. Reverse innovation is an example of bottom up innovation.
ANS: T PTS: 1 DIF: Difficulty: Moderate
Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
,Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
REF: p. 10 OBJ: LO: 1-1 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
17. The Group of 20 includes the European Union (EU)—a regional bloc.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 11 OBJ: LO: 1-2 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
18. Globalization has driven up the salaries of low-level jobs.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic
KEY: Bloom's: Comprehension
19. An international premium is a significant pay raise awarded to expatriate employees working abroad.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 12 OBJ: LO: 1-2 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
20. Approximately 80 million people worldwide are employed by foreign-owned firms.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 13 OBJ: LO: 1-2 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
21. Overall, the focus on firm performance around the globe defines the field of global business more than
anything else.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 15 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
22. An institution-based view suggests that the success and failure of firms are enabled and constrained by
business norms of the host nation.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 15 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Comprehension
23. Formal institutions include laws, regulations, and rules.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 15 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
24. The institution-based view places emphasis on the external factors that could affect a firm.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 16 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
, Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
25. Focusing on a firm’s internal resources and capabilities is the main emphasis of the resource-based
view.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 16 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
26. Liability of foreignness is the inherent disadvantage experienced by foreign firms in host counties
because of their non-native status.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 16 OBJ: LO: 1-3 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
27. Most opponents of globalization view globalization as a long-run historical evolution since trade
began.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: pp. 18-19 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
28. According to the pendulum view of globalization, globalization is a relatively new phenomenon
triggered by the information revolution of early 1990s.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 19 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
29. Scenario planning is a technique to prepare and plan exclusively for high risk scenarios.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 20 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
30. Standardization of markets would lead to a state of semiglobalization.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 21 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Comprehension
31. Semiglobalization is primarily caused by the practice of total isolation.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 21 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Comprehension
32. The current state of globalization around the world is that of semiglobalization.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 21 OBJ: LO: 1-4 NAT: BUSPROG: Analytic
KEY: Bloom's: Knowledge
33. Semiglobalization calls for adopting one way of doing business for all conditions.
Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf Global business 4e mike peng test bank.pdf
