International Business The Challenges of Globalization, wild - Complete test bank - exam questions - quizzes (updated 2022)

Chapter 1


Globalization



TRUE/FALSE QUESTIONS


1. Globalization benefits Apple by helping it sell the same iPod models worldwide with
little or no modification.

(True; Easy; p. 3; LO1) {AACSB: Technology}



2. Globalization does not affect national economies and standards of living.

(False; Easy; p. 4; LO1)



3. International business is any commercial transaction that crosses the borders of
two or more nations.

(True; Easy; p. 4; LO1)



4. Imports are goods and services brought into a country that are acquired from
organizations located abroad.

(True; Easy; p. 4; LO1)



5. Exporting is any business transaction that crosses the borders of two or more
nations.

(False; Moderate; p. 4; LO1)

,6. E-business (e-commerce) is the use of computer networks to purchase, sell, or
exchange goods and services, service customers, collaborate with partners, and
transact within a company.

(True; Easy; p. 5; LO1) {AACSB: Technology}



7. Globalization is the trend toward greater economic, cultural, political, and
technological interdependence among national institutions and economies.

(True; Easy; p. 6; LO1) {AACSB: Technology}



8. Denationalization refers to national boundaries becoming less relevant.

(True; Moderate; p. 6; LO1)



9. Internationalization refers to national boundaries becoming less relevant.

(False; Moderate; p. 6; LO1)



10. Products marketed in all countries essentially without any changes are called
“international products.”

(False; Difficult; p. 6; LO1)



11. Companies that sell global products can reduce costs by standardizing various
aspects of their marketing activities.

(True; Moderate; p.7; LO1)



12. A company that sells a global product can explore opportunities abroad if the home
market is small or becomes saturated.

(True; Easy; p. 7; LO1)

13. Globalization of production refers to convergence in buyer preferences in markets
around the world.

(False; Moderate; p. 8; LO1)

,14. The General Agreement on Tariffs and Trade (GATT) was a treaty designed to
promote free trade by reducing both tariffs and nontariff barriers to international
trade.

(True; Easy; p. 10; LO2)



15. Today, the institution of the General Agreement on Tariffs and Trade (GATT)
continues to promote free trade.

(False; Moderate; p. 10; LO2)



16. The World Trade Organization (WTO) is the international organization that
regulates trade between nations.

(True; Easy; p. 10; LO2)



17. The power of the General Agreement on Tariffs and Trade (GATT) to settle trade
disputes is what sets it apart from its predecessor, the World Trade Organization
(WTO).

(False; Easy; p. 10; LO2)



18. Because of its ability to penalize offending nations, the World Trade Organization
(WTO) dispute settlement system truly is the spine of the global trading system.

(True; Easy; p. 10; LO2)



19. Resistance to worldwide trade agreements is causing some nations to place greater
emphasis on regional pacts.

(True; Easy; p. 11; LO2)



20. Gross national product (GNP) is the value of all goods and services produced by a
country during a one-month period, excluding income generated by both domestic
production and the country’s international activities.

, (False; Moderate; p. 11; LO2)



21. GDP or GNP per capita is a nation’s GDP or GNP multiplied by its population.

(False; Moderate; p. 11; LO2)



22. Although falling barriers to trade and investment discourage globalization,
technological innovation is accelerating the process.

(False; Moderate; p. 12; LO2) {AACSB: Technology}



23. Videoconferencing provides access to a company’s computer network from distant
locations using personal computers.

(False; Moderate; p. 12; LO2) {AACSB: Technology; Communication}



24. Businesses are using the Internet to sharpen their forecasting, lower their
inventories, and improve communication with their suppliers.

(True; Easy; p. 12; LO2) {AACSB: Technology; Communication}