TEST BANK FOR GLOBAL BUSINESS 5TH
EDITION BY PENG MIKE : ISBN-10; 035771640X
/ ISBN-13; 978-0357716403 ALL CHAPTERS
COVERED
Here are all the questions, their optional answers, and the correct answers from the provided test bank.
**Chapter 1**
1. A multinational enterprise is a firm that engages in foreign direct investment by directly investing in,
controlling, and managing value-added activities in other countries.
a. True
b. False
ANSWER: True
2. The term "emerging markets" refers to the fastest-growing developing economies.
a. True
b. False
ANSWER: True
3. Gross domestic product (GDP) is the sum of value added by resident firms, households, and
governments operating in an economy.
a. True
b. False
ANSWER: True
4. The majority of the global GDP is contributed by the emerging markets.
,a. True
b. False
ANSWER: False
5. Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and
services different currencies can purchase.
a. True
b. False
ANSWER: True
6. Purchasing power parity (PPP) is calculated as the sum of value added by resident firms, households,
and governments operating in an economy.
a. True
b. False
ANSWER: False
7. Global business includes both international and domestic business activities.
a. True
b. False
ANSWER: True
8. International business can be defined as the investment in, controlling, and managing value-added
activities in other countries.
a. True
b. False
ANSWER: False
9. On the global economic pyramid, the Triad refers to developed economies consisting of North
America, Europe, and Japan.
a. True
,b. False
ANSWER: True
10. All the countries of the BRIC belong to the top tier of the global economic pyramid.
a. True
b. False
ANSWER: False
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.
a. True
b. False
ANSWER: False
12. The emerging markets of the world are placed at the top of the global economic pyramid.
a. True
b. False
ANSWER: False
13. The global economic pyramid does not represent countries that have a per capita annual income of
less than $2,000.
a. True
b. False
ANSWER: False
14. The term "base of the pyramid" represents economies where individuals make less than $2,000 a
year.
a. True
b. False
ANSWER: True
, 15. Reverse innovations are innovations that are adopted first in the Triad-based multinationals and
then diffused around the world.
a. True
b. False
ANSWER: False
16. Reverse innovation is an example of bottom up innovation.
a. True
b. False
ANSWER: True
17. The Group of 20 includes the European Union (EU)—a regional bloc.
a. True
b. False
ANSWER: True
18. Globalization has driven up the salaries of low-level jobs.
a. True
b. False
ANSWER: False
19. An international premium is a significant pay raise awarded to expatriate employees working
abroad.
a. True
b. False
ANSWER: True
20. New York has more Fortune Global 500 company headquarters than any other city.
EDITION BY PENG MIKE : ISBN-10; 035771640X
/ ISBN-13; 978-0357716403 ALL CHAPTERS
COVERED
Here are all the questions, their optional answers, and the correct answers from the provided test bank.
**Chapter 1**
1. A multinational enterprise is a firm that engages in foreign direct investment by directly investing in,
controlling, and managing value-added activities in other countries.
a. True
b. False
ANSWER: True
2. The term "emerging markets" refers to the fastest-growing developing economies.
a. True
b. False
ANSWER: True
3. Gross domestic product (GDP) is the sum of value added by resident firms, households, and
governments operating in an economy.
a. True
b. False
ANSWER: True
4. The majority of the global GDP is contributed by the emerging markets.
,a. True
b. False
ANSWER: False
5. Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and
services different currencies can purchase.
a. True
b. False
ANSWER: True
6. Purchasing power parity (PPP) is calculated as the sum of value added by resident firms, households,
and governments operating in an economy.
a. True
b. False
ANSWER: False
7. Global business includes both international and domestic business activities.
a. True
b. False
ANSWER: True
8. International business can be defined as the investment in, controlling, and managing value-added
activities in other countries.
a. True
b. False
ANSWER: False
9. On the global economic pyramid, the Triad refers to developed economies consisting of North
America, Europe, and Japan.
a. True
,b. False
ANSWER: True
10. All the countries of the BRIC belong to the top tier of the global economic pyramid.
a. True
b. False
ANSWER: False
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.
a. True
b. False
ANSWER: False
12. The emerging markets of the world are placed at the top of the global economic pyramid.
a. True
b. False
ANSWER: False
13. The global economic pyramid does not represent countries that have a per capita annual income of
less than $2,000.
a. True
b. False
ANSWER: False
14. The term "base of the pyramid" represents economies where individuals make less than $2,000 a
year.
a. True
b. False
ANSWER: True
, 15. Reverse innovations are innovations that are adopted first in the Triad-based multinationals and
then diffused around the world.
a. True
b. False
ANSWER: False
16. Reverse innovation is an example of bottom up innovation.
a. True
b. False
ANSWER: True
17. The Group of 20 includes the European Union (EU)—a regional bloc.
a. True
b. False
ANSWER: True
18. Globalization has driven up the salaries of low-level jobs.
a. True
b. False
ANSWER: False
19. An international premium is a significant pay raise awarded to expatriate employees working
abroad.
a. True
b. False
ANSWER: True
20. New York has more Fortune Global 500 company headquarters than any other city.
