Test Bank for Introduction to Global Business Introduction
to Global Business: Understanding the International
Environment and Global Business Functions 1st Edition,
Gaspar. Chapter 1-15
Chapter 1: The Rise of Globalization
TRUE/FALSE
1. With business becoming increasingly global, its success, fortunately, depends only on the
domestic environment.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 4 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
2. Even though business is global, the credit crisis of 2008, started by an American investment
bank, was limited to the American economy with fortunately no impact on the global economy.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 3 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
3. Key aspects of globalization include the elimination of barriers to trade and information
technology.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
4. So far globalization has made it possible for goods, services, and capital, to cross national
borders but not technology and culture.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
5. The “soft” qualities essential to globalization include openness, protectionism, accountability,
connectivity, democracy, and centralization.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 6 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
, 6. A sustainable decoupling process would eventually lead to a multi-polar world—a world
economy in which the engines of growth could comprise the United States, the European Union,
China, India, Brazil, Russia, and South Africa rather than the United States alone.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 9 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
7. The openness and proliferation of globalization and free trade rules can best be attributed to the
interwar period between World War I and II.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 10 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
8. As part of the World Bank’s Strategic Framework, there are five focus areas that accommodate
and facilitate the globalization process including its analytical and advisory role supporting
national policies to strengthen free market institutions and infrastructure that has provided the
potential for creating large gains from trade.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 12 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
9. For World Trade Organization, increasing trade barriers has been one of the most simplistic
ways to encourage trade and globalization.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 13 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
10. The foundations of the globalized business world are political—and so are the biggest threats to
the system.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 15 OBJ: LO: 01-03 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
11. Countries that have successfully adapted to globalization realize that they cannot succeed
without high-quality government management at home.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 18 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
, 12. In communist and state-controlled economies like those in Central Asia property rights either do
not exist or are not well defined which discourages domestic and foreign investors from making
long-term commitments in these countries.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 18 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
13. More globalized economies like New Zealand and Singapore rank at the top in index for absence
of corruption by Transparency International.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 19 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
14. Because broadband prices have been falling, governments in emerging economies such as India
and South Africa are facilitating the spread of broadband to rural towns and villages to provide
instant access to market information and government programs to remote villagers which will
enable policymakers to maximize the economic potential of remote communities and make
globalization sustainable.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 20 OBJ: LO: 01-05 NAT: BUSPROG: Analytic
STA: DISC: Information Technology KEY: Bloom's: Evaluation
15. Critics argue that open trade and foreign direct investment always take jobs from workers in
developing economies and transfer them to workers in advanced industrial countries which leave
the workers in the developing country, out of work.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 23 OBJ: LO: 01-06 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
16. A survey by the World Bank indicates that of the companies surveyed; unfortunately, only 30
percent have board-approved policies on environmental management indicating that corporate
social responsibility practices have become an insignificant factor in determining where
multinational corporations conduct business.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 24 OBJ: LO: 01-06 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
MULTIPLE CHOICE
1. Of the following, which is NOT true regarding the credit crisis?
a. It affected farmers in Burkina Faso.
, b. It affected miners and steel workers in Ukraine.
c. It affected assemble-line workers in Singapore.
d. It affected white-collar workers at information technology firms in Ireland.
e. It had an impact only on its country of origin- the United States.
ANS: E PTS: 1 DIF: Difficulty: Easy
REF: p. 3 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
2. Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different
countries including United States. Brazilian juice is engaging in
a. economic development in United States.
b. exercising nontariff barriers in Brazil.
c. unfair trade practices.
d. globalization.
e. the World Trade Bank Group.
ANS: D PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Application
3. Which of the following is NOT a key aspect of globalization?
a. The elimination of barriers to trade
b. Investment
c. Financial independence
d. Culture
e. Information technology
ANS: C PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
4. Countries that have been moving toward more open trade and free market policies are known as
_____.
a. African countries
b. open-door economies
c. industralized countries
d. globalized economies
e. emerging market economies
ANS: E PTS: 1 DIF: Difficulty: Moderate
REF: p. 6 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Knowledge KEY: Bloom's: Knowledge
5. India and Brazil have been moving towards more open trade and free market policies. These
countries can be described as
a. emerging market economies.
b. open-door economies.
to Global Business: Understanding the International
Environment and Global Business Functions 1st Edition,
Gaspar. Chapter 1-15
Chapter 1: The Rise of Globalization
TRUE/FALSE
1. With business becoming increasingly global, its success, fortunately, depends only on the
domestic environment.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 4 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
2. Even though business is global, the credit crisis of 2008, started by an American investment
bank, was limited to the American economy with fortunately no impact on the global economy.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 3 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
3. Key aspects of globalization include the elimination of barriers to trade and information
technology.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
4. So far globalization has made it possible for goods, services, and capital, to cross national
borders but not technology and culture.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
5. The “soft” qualities essential to globalization include openness, protectionism, accountability,
connectivity, democracy, and centralization.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 6 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
, 6. A sustainable decoupling process would eventually lead to a multi-polar world—a world
economy in which the engines of growth could comprise the United States, the European Union,
China, India, Brazil, Russia, and South Africa rather than the United States alone.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 9 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
7. The openness and proliferation of globalization and free trade rules can best be attributed to the
interwar period between World War I and II.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 10 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
8. As part of the World Bank’s Strategic Framework, there are five focus areas that accommodate
and facilitate the globalization process including its analytical and advisory role supporting
national policies to strengthen free market institutions and infrastructure that has provided the
potential for creating large gains from trade.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 12 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
9. For World Trade Organization, increasing trade barriers has been one of the most simplistic
ways to encourage trade and globalization.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 13 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
10. The foundations of the globalized business world are political—and so are the biggest threats to
the system.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 15 OBJ: LO: 01-03 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
11. Countries that have successfully adapted to globalization realize that they cannot succeed
without high-quality government management at home.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 18 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
, 12. In communist and state-controlled economies like those in Central Asia property rights either do
not exist or are not well defined which discourages domestic and foreign investors from making
long-term commitments in these countries.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 18 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
13. More globalized economies like New Zealand and Singapore rank at the top in index for absence
of corruption by Transparency International.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 19 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
14. Because broadband prices have been falling, governments in emerging economies such as India
and South Africa are facilitating the spread of broadband to rural towns and villages to provide
instant access to market information and government programs to remote villagers which will
enable policymakers to maximize the economic potential of remote communities and make
globalization sustainable.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 20 OBJ: LO: 01-05 NAT: BUSPROG: Analytic
STA: DISC: Information Technology KEY: Bloom's: Evaluation
15. Critics argue that open trade and foreign direct investment always take jobs from workers in
developing economies and transfer them to workers in advanced industrial countries which leave
the workers in the developing country, out of work.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 23 OBJ: LO: 01-06 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
16. A survey by the World Bank indicates that of the companies surveyed; unfortunately, only 30
percent have board-approved policies on environmental management indicating that corporate
social responsibility practices have become an insignificant factor in determining where
multinational corporations conduct business.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 24 OBJ: LO: 01-06 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
MULTIPLE CHOICE
1. Of the following, which is NOT true regarding the credit crisis?
a. It affected farmers in Burkina Faso.
, b. It affected miners and steel workers in Ukraine.
c. It affected assemble-line workers in Singapore.
d. It affected white-collar workers at information technology firms in Ireland.
e. It had an impact only on its country of origin- the United States.
ANS: E PTS: 1 DIF: Difficulty: Easy
REF: p. 3 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
2. Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different
countries including United States. Brazilian juice is engaging in
a. economic development in United States.
b. exercising nontariff barriers in Brazil.
c. unfair trade practices.
d. globalization.
e. the World Trade Bank Group.
ANS: D PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Application
3. Which of the following is NOT a key aspect of globalization?
a. The elimination of barriers to trade
b. Investment
c. Financial independence
d. Culture
e. Information technology
ANS: C PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
4. Countries that have been moving toward more open trade and free market policies are known as
_____.
a. African countries
b. open-door economies
c. industralized countries
d. globalized economies
e. emerging market economies
ANS: E PTS: 1 DIF: Difficulty: Moderate
REF: p. 6 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Knowledge KEY: Bloom's: Knowledge
5. India and Brazil have been moving towards more open trade and free market policies. These
countries can be described as
a. emerging market economies.
b. open-door economies.
