CHAPTER 1 – STRATEGIZING AROUND THE GLOBE
TEST BANK
TRUE/FALSE QUESTIONS
1. The opening case is an example of how the publishing industry now requires a
simultaneous penetration of all markets rather than trying to win one market after
another.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
2. In the opening case, the formal rules in China stated that foreign companies could
not publish books on their own.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Environmental Influence
3. In China, political correctness may need to be considered when making reference to
Taiwan.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Environmental Influence
4. The Closing Case illustrates how to strategically focus on the base of the global
economic pyramid and to do so successfully.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Strategy
5. A SWOT analysis resonates very well with Sun Tzu’s teachings.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
6. If a strategy (theory) is truly successful, it will work not just for one firm but for all
others as well.
, a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Strategy
7. Determining the scope of the firm involves not only growth of the firm but also
contraction.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
8. The text stresses that realism indicates that all companies should “go global” and
endeavor to do so as quickly as possible in view of the vast opportunities that exist.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Strategy
9. The industry-based view posits that the degree of competitiveness in an industry
largely determines firm performance.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
10. The resource-based view suggests that firm-specific capabilities do not drive
performance differences.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
11. The institution-based view argues that institutional forces provide an answer to
similarities in firm performance but not differences.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Strategy
,12. As illustrated by Cengage Learning’s penetration of the China market with Global
Strategy (Opening Case), the idea that firms must “think global and act local”
simultaneously is simply not possible.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Creation of Value
13. The earliest MNEs existed in some form thousands of years ago in the Assyrian,
Phoenician, and Roman empires.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Environmental Influence
14. According to the text, today’s most successful MNEs far exceed the historical clout of
some MNEs such as Britain’s East India Company during colonial times.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Creation of Value
15. During the second half of the twentieth century, Hong Kong, Singapore, South Korea,
and Taiwan, refused to participate in the global economy and became known as the
“Four Toothless Tigers.”
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Motivation Concepts
16. During the 1990s there was an increase in both global trade and opposition to
global trade.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
17. Semiglobalization involves doing business in either the northern or southern
hemisphere but not both.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
, 18. Beginning in the late 1990s and early twenty first century, a corporate governance
crisis has developed.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Environmental Influence
19. According to the text, business students may tend to focus more on the economic
gains of globalization, and be less concerned with its darker sides.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Motivation Concepts
20. A lot of opponents of globalization are nongovernmental organizations (NGOs), such
as environmentalists and consumer groups.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Group Dynamics
MULTIPLE CHOICE QUESTIONS
1. Multinational enterprises (MNEs) are firms that:
a. Engage in foreign direct investment (FDI).
b. Directly control value-adding activities in other countries.
c. Manage value-adding activities in other countries.
d. All of the above.
e. None of the above.
AACSB: Tier 1: Analytic; Tier 2: Strategy
TEST BANK
TRUE/FALSE QUESTIONS
1. The opening case is an example of how the publishing industry now requires a
simultaneous penetration of all markets rather than trying to win one market after
another.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
2. In the opening case, the formal rules in China stated that foreign companies could
not publish books on their own.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Environmental Influence
3. In China, political correctness may need to be considered when making reference to
Taiwan.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Environmental Influence
4. The Closing Case illustrates how to strategically focus on the base of the global
economic pyramid and to do so successfully.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Strategy
5. A SWOT analysis resonates very well with Sun Tzu’s teachings.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
6. If a strategy (theory) is truly successful, it will work not just for one firm but for all
others as well.
, a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Strategy
7. Determining the scope of the firm involves not only growth of the firm but also
contraction.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
8. The text stresses that realism indicates that all companies should “go global” and
endeavor to do so as quickly as possible in view of the vast opportunities that exist.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Strategy
9. The industry-based view posits that the degree of competitiveness in an industry
largely determines firm performance.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
10. The resource-based view suggests that firm-specific capabilities do not drive
performance differences.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
11. The institution-based view argues that institutional forces provide an answer to
similarities in firm performance but not differences.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Strategy
,12. As illustrated by Cengage Learning’s penetration of the China market with Global
Strategy (Opening Case), the idea that firms must “think global and act local”
simultaneously is simply not possible.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Creation of Value
13. The earliest MNEs existed in some form thousands of years ago in the Assyrian,
Phoenician, and Roman empires.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Environmental Influence
14. According to the text, today’s most successful MNEs far exceed the historical clout of
some MNEs such as Britain’s East India Company during colonial times.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Creation of Value
15. During the second half of the twentieth century, Hong Kong, Singapore, South Korea,
and Taiwan, refused to participate in the global economy and became known as the
“Four Toothless Tigers.”
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Motivation Concepts
16. During the 1990s there was an increase in both global trade and opposition to
global trade.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
17. Semiglobalization involves doing business in either the northern or southern
hemisphere but not both.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Strategy
, 18. Beginning in the late 1990s and early twenty first century, a corporate governance
crisis has developed.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Environmental Influence
19. According to the text, business students may tend to focus more on the economic
gains of globalization, and be less concerned with its darker sides.
a. True b. False
AACSB: Tier 1: Reflective Thinking; Tier 2: Motivation Concepts
20. A lot of opponents of globalization are nongovernmental organizations (NGOs), such
as environmentalists and consumer groups.
a. True b. False
AACSB: Tier 1: Analytic; Tier 2: Group Dynamics
MULTIPLE CHOICE QUESTIONS
1. Multinational enterprises (MNEs) are firms that:
a. Engage in foreign direct investment (FDI).
b. Directly control value-adding activities in other countries.
c. Manage value-adding activities in other countries.
d. All of the above.
e. None of the above.
AACSB: Tier 1: Analytic; Tier 2: Strategy
