Test Bank for Global Business 4th Edition by Mike Peng.

GlobalgBusinessgTodaygGlobalg8thgEditiongHillgTestgBank
Answersgaregatgthegendgofgeachgchapter

Chapterg01gGlobalizationgTr

ueg/gFalsegQuestions

1. Asgagresultgofgglobalization,gweghavegbeengmovinggtowardgagworldgingwhichgnationalgeconom
iesgaregrelativelygself-containedgentities.

True False

2. Bygofferinggthegsamegbasicgproductgworldwide,gfirmsghelpgtogcreategagglobalgmark

et.gTrue False

3. Agcompanyghasgtogbegthegsizegofgagmultinationalggiantgtogfacilitate,gandgbenefitgfrom,gt
hegglobalizationgofgmarkets.

True False

4. Asgagresultgofgglobalization,gcompaniesgrarelygneedgtogcustomizegmarketinggstrategies,gprodu
ctgfeatures,gandgoperatinggpracticesgingdifferentgcountries.

True False

5. Globalizationghasgresultedginggreaterguniformitygreplacinggdiversitygacrossgnationalgmarket

s.gTrue False

6. Asgfirmsgfollowgeachgothergaroundgthegworld,gtheygbringgwithgthemgmanygofgthegassetsgt
hatgservedgthemgwellgingothergnationalgmarkets.gThus,ggreatergdiversitygreplacesguniformity.

True False

7. Substantialgimpediments,gsuchgasgbarriersgtogforeigngdirectginvestment,gmakegitgdifficultgforgfir
msgtogachievegthegoptimalgdispersiongofgtheirgproductivegactivitiesgtoglocationsgaroundgthegglobe.

True False

8. ThegWorldgTradegOrganization,gthegInternationalgMonetarygFundgandgitsgsisterginstitutiongt
hegWorldgBank,gandgthegUnitedgNationsgweregallgcreatedgbygvoluntarygagreementgbetweengindivid
ualgnation-gstates.

True False

,9. ThegInternationalgMonetarygFundgandgthegWorldgBankgweregbothgcreatedging1944gbyg44gnatio
nsgthatgmetgatgBrettongWoods,gNewgHampshire.

True False

10. ThegWTOgisgseengasgtheglendergofglastgresortgtognation-
statesgwhosegeconomiesgaregingturmoilgandgwhosegcurrenciesgareglosinggvaluegagainstgthosegofgoth
ergnations.

True False

11. ThegIMFgisglessgcontroversialgthangitsgsisterginstitution,gthegWorldgBan

k.gTrue False

12. Ingreturngforgloans,gthegIMFgrequiresgnation-
statesgtogadoptgspecificgeconomicgpoliciesgaimedgatgreturninggtheirgtroubledgeconomiesgtogstabilityga
ndggrowth.

True False

13. Foreigngdirectginvestmentg(FDI)goccursgwhengagfirmginvestsgresourcesgingbusinessgactiviti
esgoutsidegitsghomegcountry.

True False

14. AftergWorldgWargII,gthegadvancedgnationsgofgthegWestgcommittedgthemselvesgtogincreasi
nggbarriersgtogthegfreegflowgofggoods,gservices,gandgcapitalgbetweengnations.

True False

15. ThegUruguaygRound,gheldgundergthegumbrellagofgGATT,gextendedgGATTgtogcovergservicesgasgw
ellgasgmanufacturedggoods.

True False

16. Thegloweringgofgtradegandginvestmentgbarriersgallowsgfirmsgtogbasegproductiongatgthegopti
malglocationgforgthatgactivity.

True False

17. Asgagresultgofginternationalgtrade,gthegeconomiesgofgthegworld’sgnation-
statesgaregbecomingglessgintertwined.

True False

18. Thegglobalizationgofgmarketsgandgproductiongandgthegresultingggrowthgofgworldgtrade,gforei
gngdirectginvestment,gandgimportsgallgimplygthatgfirmsgaregfindinggitgeasiergtogprotectgthemselvesgfr
om

thegattackgofgforeigngcompetitors.

,True False

19. Containerizationghasgrevolutionizedgthegtransportationgbusiness,gsignificantlygloweringgthegcos
tsgofgshippingggoodsgoverglonggdistances.

True False

20. Whilegadvancesgingtelecommunicationsgaregcreatinggagglobalgaudience,gadvancesg
ingtransportationgaregcreatinggagglobalgvillage.

True False

21. Thegrealgcostsgofginformationgprocessinggandgcommunicationghavegfallengdramaticallygingthegp
astgtwogdecades.

True False

22. ThegInternetghasgbeengagmajorgforcegfacilitatingginternationalgtradegingservice

s.gTrue False

23. Countriesgthatgmarkedlygincreasedgtheirgsharegofgworldgoutputgfromg1960gtog2010ginclud
edgGermany,gFrance,gandgthegUnitedgKingdom.

True False

24. ThegUnitedgStatesgaccountedgforgagsignificantlyglargergsharegofgthegworldgeconomyging2011gtha
ngitgdidgingtheg1960's.

True False

25. Beginninggingtheg1970s,gEuropeangandgJapanesegfirmsgbegangtogshiftglabor-
intensivegmanufacturinggoperationsgfromgdevelopinggnationsgtogtheirghomegcountriesgwhereglabor
gcostsgwereglower.


True False

26. Thegstockgofgforeigngdirectginvestmentgrefersgtogthegtotalgcumulativegvaluegofgforei
gnginvestmentsgingagcountry.

True False

27. Throughoutgtheg1990s,gthegamountgofginvestmentgdirectedgatgbothgdevelopedgandgdevelopi
nggnationsgincreasedgdramatically

True False

, 28. Amonggdevelopinggnations,gtheglargestgrecipientgofgforeigngdirectginvestmentghasgbeengChin

a.gTrueg g False

29. Althoughgmostginternationalgtradegandginvestmentgisgstillgconductedgbyglargegfirms,gma
nygmedium-
gsizegandgsmallgbusinessesgaregbecominggincreasinglyginvolvedginginternationalgtradegandginvest

ment.

True False

30. ThegrisegofgthegInternetgisgincreasinggthegbarriersgthatgsmallgfirmsgfacegingbuildingginternatio
nalgsales.

True False

31. ManygofgthegformergCommunistgnationsgofgEuropegandgAsiagseemgtogsharegagcommitment
gtogdemocraticgpoliciesgandgfreegmarketgeconomies.


True False

32. Ingthegpastgquartergcentury,gthegvolumegofgcross-
bordergtradegandginvestmentghasgbeenggrowingglessgrapidlygthangglobalgoutput.

True False

33. Onegconcerngfrequentlygvoicedgbygglobalizationgopponentsgisgthatgfallinggbarriersgtoginternation
algtradegdestroygmanufacturinggjobsgingwealthygadvancedgeconomiesgsuchgasgthegUnitedgStatesgandg w
esterngEurope.

True False

34. Itgisgpossiblegthatgeconomicggrowthgingdevelopedgnationsghasgoffsetgthegfallgingthegshare
gofgnationalgincomegenjoyedgbygunskilledgworkers,graisinggtheirglivinggstandards.




True False




35. Onegconcerngofgglobalizationgopponentsgisgthatgitgunderminesgtheginfluencegofgsupranation
algorganizationsgandgpromotesgthegsovereigntygofgindividualgnation-states.

True False

36. Inggeneral,gasgcountriesggetgricher,gtheygenactgtoughergenvironmentalgandglaborgregulations.