TEST BANK For Global Business Today,
12th Edition By Charles Hill Chapters 1 - 17
,Chapter One Globalization
PART TWO National Differences
Chapter Two National Differences in Political, Economic, and Legal Systems
Chapter Three National Differences in Economic Development
Chapter Four Differences in Culture
Chapter Five Ethics, Corporate Social Responsibility, and Sustainability
PART THREE The Global Trade and Investment Environment
Chapter Six International Trade Theory
Chapter Seven Government Policy and International Trade
Chapter Eight Foreign Direct Investment
Chapter Nine Regional Economic Integration
PART FOUR The Global Monetary System
Chapter Ten The Foreign Exchange Market
Chapter Eleven The International Monetary System
PART FIVE The Strategy of International Business
Chapter Twelve The Strategy of International Business
Chapter Thirteen Entering Developed and Emerging Markets
PART SIX International Business Functions
Chapter Fourteen Exporting, Importing, and Countertrade
Chapter Fifteen Global Production and Supply Chain Management
Chapter Sixteen Global Marketing and Business Analytics
Chapter Seventeen Global Human Resource Management
,Answers are at the end of each chapter
Chapter 01 Globalization
True / False Questions
1. As a result of globalization, we have been moving toward a world in which national economies
are relatively self-contained entities.
True False
2. By offering the same basic product worldwide, firms help to create a global market.
True False
3. A company has to be the size of a multinational giant to facilitate, and benefit from, the
globalization of markets.
True False
4. As a result of globalization, companies rarely need to customize marketing strategies, product
features, and operating practices in different countries.
True False
5. Globalization has resulted in greater uniformity replacing diversity across national markets.
True False
6. As firms follow each other around the world, they bring with them many of the assets that
served them well in other national markets. Thus, greater diversity replaces uniformity.
True False
7. Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms
to achieve the optimal dispersion of their productive activities to locations around the globe.
True False
8. The World Trade Organization, the International Monetary Fund and its sister institution the
World Bank, and the United Nations were all created by voluntary agreement between individual
nation- states.
True False
, 9. The58International58Monetary58Fund58and58the58World58Bank58were58both58created58in58194
458by584458nations58that58met58at58Bretton58Woods,58New58Hampshire.
True False
10. The58WTO58is58seen58as58the58lender58of58last58resort58to58nation-
states58whose58economies58are58in58turmoil58and58whose58currencies58are58losing58value58against58
those58of58other58nations.
True False
11. The58IMF58is58less58controversial58than58its58sister58institution,58the5
8World58Bank.58True False
12. In58return58for58loans,58the58IMF58requires58nation-
states58to58adopt58specific58economic58policies58aimed58at58returning58their58troubled58economies58t
o58stability58and58growth.
True False
13. Foreign58direct58investment58(FDI)58occurs58when58a58firm58invests58resources58in58busi
ness58activities58outside58its58home58country.
True False
14. After58World58War58II,58the58advanced58nations58of58the58West58committed58themselves
58to58increasing58barriers58to58the58free58flow58of58goods,58services,58and58capital58between58nat
ions.
True False
15. The58Uruguay58Round,58held58under58the58umbrella58of58GATT,58extended58GATT58to58cover
58services58as58well58as58manufactured58goods.
True False
16. The58lowering58of58trade58and58investment58barriers58allows58firms58to58base58production5
8at58the58optimal58location58for58that58activity.
True False
17. As58a58result58of58international58trade,58the58economies58of58the58world’s58nation-
states58are58becoming58less58intertwined.
True False
18. The58globalization58of58markets58and58production58and58the58resulting58growth58of58world
58trade,58foreign58direct58investment,58and58imports58all58imply58that58firms58are58finding58it58easie
r58to58protect58themselves58from
the58attack58of58foreign58competitors.
12th Edition By Charles Hill Chapters 1 - 17
,Chapter One Globalization
PART TWO National Differences
Chapter Two National Differences in Political, Economic, and Legal Systems
Chapter Three National Differences in Economic Development
Chapter Four Differences in Culture
Chapter Five Ethics, Corporate Social Responsibility, and Sustainability
PART THREE The Global Trade and Investment Environment
Chapter Six International Trade Theory
Chapter Seven Government Policy and International Trade
Chapter Eight Foreign Direct Investment
Chapter Nine Regional Economic Integration
PART FOUR The Global Monetary System
Chapter Ten The Foreign Exchange Market
Chapter Eleven The International Monetary System
PART FIVE The Strategy of International Business
Chapter Twelve The Strategy of International Business
Chapter Thirteen Entering Developed and Emerging Markets
PART SIX International Business Functions
Chapter Fourteen Exporting, Importing, and Countertrade
Chapter Fifteen Global Production and Supply Chain Management
Chapter Sixteen Global Marketing and Business Analytics
Chapter Seventeen Global Human Resource Management
,Answers are at the end of each chapter
Chapter 01 Globalization
True / False Questions
1. As a result of globalization, we have been moving toward a world in which national economies
are relatively self-contained entities.
True False
2. By offering the same basic product worldwide, firms help to create a global market.
True False
3. A company has to be the size of a multinational giant to facilitate, and benefit from, the
globalization of markets.
True False
4. As a result of globalization, companies rarely need to customize marketing strategies, product
features, and operating practices in different countries.
True False
5. Globalization has resulted in greater uniformity replacing diversity across national markets.
True False
6. As firms follow each other around the world, they bring with them many of the assets that
served them well in other national markets. Thus, greater diversity replaces uniformity.
True False
7. Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms
to achieve the optimal dispersion of their productive activities to locations around the globe.
True False
8. The World Trade Organization, the International Monetary Fund and its sister institution the
World Bank, and the United Nations were all created by voluntary agreement between individual
nation- states.
True False
, 9. The58International58Monetary58Fund58and58the58World58Bank58were58both58created58in58194
458by584458nations58that58met58at58Bretton58Woods,58New58Hampshire.
True False
10. The58WTO58is58seen58as58the58lender58of58last58resort58to58nation-
states58whose58economies58are58in58turmoil58and58whose58currencies58are58losing58value58against58
those58of58other58nations.
True False
11. The58IMF58is58less58controversial58than58its58sister58institution,58the5
8World58Bank.58True False
12. In58return58for58loans,58the58IMF58requires58nation-
states58to58adopt58specific58economic58policies58aimed58at58returning58their58troubled58economies58t
o58stability58and58growth.
True False
13. Foreign58direct58investment58(FDI)58occurs58when58a58firm58invests58resources58in58busi
ness58activities58outside58its58home58country.
True False
14. After58World58War58II,58the58advanced58nations58of58the58West58committed58themselves
58to58increasing58barriers58to58the58free58flow58of58goods,58services,58and58capital58between58nat
ions.
True False
15. The58Uruguay58Round,58held58under58the58umbrella58of58GATT,58extended58GATT58to58cover
58services58as58well58as58manufactured58goods.
True False
16. The58lowering58of58trade58and58investment58barriers58allows58firms58to58base58production5
8at58the58optimal58location58for58that58activity.
True False
17. As58a58result58of58international58trade,58the58economies58of58the58world’s58nation-
states58are58becoming58less58intertwined.
True False
18. The58globalization58of58markets58and58production58and58the58resulting58growth58of58world
58trade,58foreign58direct58investment,58and58imports58all58imply58that58firms58are58finding58it58easie
r58to58protect58themselves58from
the58attack58of58foreign58competitors.
