Test Bank For Global Business 5th Edition by Mike Peng. Exam Questions with 100% Correct Answers. Latest 2026

Test Bank For
Global Business (Authors: Mike Peng)
5th Edition




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,Test Bank For Global Business 5th Edition By Mike Peng (All Chapters, 100% Original Verified, A+ Grade)
Name: Class: Date:

Chapter 01 - Introduction

Indicate Whether The Statement Is True Or False.

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

2. The Term “Emerging Markets” Refers To The Fastest-Growing Developing Economies.
a. True
b. False

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

4. The Majority Of The Global GDP Is Contributed By The Emerging Markets.
a. True
b. 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

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

7. Global Business Includes Both International And Domestic Business Activities.
a. True
b. False

8. International Business Can Be Defined As The Investment In, Controlling, And Managing Value-Added Activities
In Other Countries.
a. True
b. False

9. On The Global Economic Pyramid, The Triad Refers To Developed Economies Consisting Of North America,
Europe, And Japan.
a. True
b. False

10. All The Countries Of The BRIC Belong To The Top Tier Of The Global Economic Pyramid.
a. True

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,Name: Class: Date:

Chapter 01 - Introduction

b. 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

12. The Emerging Markets Of The World Are Placed At The Top Of The Global Economic Pyramid.
a. True
b. 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

14. The Term "Base Of The Pyramid" Represents Economies Where Individuals Make Less Than $2,000 A Year.
a. True
b. False

15. Reverse Innovations Are Innovations That Are Adopted First In The Triad-Based Multinationals And Then Diffused
Around The World.
a. True
b. False

16. Reverse Innovation Is An Example Of Bottom Up Innovation.
a. True
b. False

17. The Group Of 20 Includes The European Union (EU)—A Regional Bloc.
a. True
b. False

18. Globalization Has Driven Up The Salaries Of Low-Level Jobs.
a. True
b. False

19. An International Premium Is A Significant Pay Raise Awarded To Expatriate Employees Working Abroad.
a. True
b. False

20. New York Has More Fortune Global 500 Company Headquarters Than Any Other City.
a. True
b. False


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, Name: Class: Date:

Chapter 01 - Introduction

b. False
21. Overall, The Focus On Firm Performance Around The Globe Defines The Field Of Global Business More Than Anything
Else.
a. True




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