Test Bank for Global Business Today - 12e - Hill - Chapter 01 1) In the past ten years, increasing barriers to cross -border trade have made it harder for businesses to sell internationally. ⊚ true ⊚ false 2) To truly benefit from globalization, a firm needs to be a multinational conglomerate rather than a small or mid -size company. ⊚ true ⊚ false 3) In today’s marketplace, outsourcing efforts are confined to manufacturing activities. ⊚ true ⊚ false 4) Transportation costs and the managerial challenge of coordinating a globally dispersed supply chain are just two of the impediments compa nies face when trying to achieve optimal dispersion of their products between countries. ⊚ true ⊚ false 5) The WTO polices the world trading system and without this organization, the globalization of markets might not be where it is today. ⊚ true ⊚ false 6) Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country. ⊚ true ⊚ false 7) The retaliatory trade policies of the 1920s and 1930s contributed to the Great Depression. ⊚ true ⊚ false 8) The Uruguay Round extended GATT to cover services as well as manufactured goods. ⊚ true ⊚ false 1 Test Bank for Global Business Today - 12e - Hill - Chapter 01 9) Enhanced protection for patents and trademarks was one focus of the Uruguay Round. ⊚ true ⊚ false 10) The lowering of trade and investment barriers creates fewer opportunities for companies to have the world as their market. ⊚ true ⊚ false 11) In recent years, the economies of the world's nation -states have become less intertwined as a result of international trade. ⊚ true ⊚ false 12) The COVID-19 global pandemic has had minimal impact on global supply chains. ⊚ true ⊚ false 13) Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances. ⊚ true ⊚ false 14) Moore's law helps determine the most appropriate transportation method for a produced good. ⊚ true ⊚ false 15) Fifty years ago, the U.S. was struggling to find its place in the world economy and world trade picture. ⊚ true ⊚ false 16) The outward stock of foreign direct investment refers to the total cumulative value of foreign investments by firms domiciled in a nation outside of that nation ’s borders. ⊚ true ⊚ false 2 Test Bank for Global Business Today - 12e - Hill - Chapter 01 17) Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically. ⊚ true ⊚ false 18) A domestic enterprise is any business that has productive activities in at least two countries. ⊚ true ⊚ false 19) Today, many of the former communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies. ⊚ true ⊚ false 20) The amount of foreign direct investment in China has been increasing since the 1980s. ⊚ true ⊚ false 21) According to many influential economists, the increase in international trade and cross -
border investment will result in an increase in the prices of goods and services. ⊚ true ⊚ false 22) One criticism of globalization is that falling trade barriers encourage companies to locate manufacturing activities in another country to take advantage of lower wage rates. ⊚ true ⊚ false 23) A firm has to become a multinational enterprise to engage in international business. ⊚ true ⊚ false 24) The range of problems that a manager in an international business faces is typically more complex than those faced by a manager in a domestic business. ⊚ true ⊚ false 3 Test Bank for Global Business Today - 12e - Hill - Chapter 01 25) As a result of globalization, in ternational businesses can avoid the haggle of currency exchanges during cross -border transactions. ⊚ true ⊚ false 26) Many believe that globalization has created a convergence in A) the volume of goods and services produced. B) foreign exchange transaction law. C) environmental and labor laws. D) consumer taste preferences. E) the regulation of markets. 27) What is the shift toward a more integrated and interdependent world economy called? A) international trade B) foreign direct investment C) globalization D) Moore's Law E) containerization 28) Fast food chain restaurants promote different menu choices in different countries depending on a range of factors such as demographics, local taste, income levels, and cultural values. This demonstrates that A) significant differences still exist among na tional markets. B) cultural diversity has been replaced by global uniformity. C) the global market is less complex than national markets. D) only multinational giants can benefit from the globalization of markets. E) the social norms in a country do not affect purchase decisions of consumers. 4
border investment will result in an increase in the prices of goods and services. ⊚ true ⊚ false 22) One criticism of globalization is that falling trade barriers encourage companies to locate manufacturing activities in another country to take advantage of lower wage rates. ⊚ true ⊚ false 23) A firm has to become a multinational enterprise to engage in international business. ⊚ true ⊚ false 24) The range of problems that a manager in an international business faces is typically more complex than those faced by a manager in a domestic business. ⊚ true ⊚ false 3 Test Bank for Global Business Today - 12e - Hill - Chapter 01 25) As a result of globalization, in ternational businesses can avoid the haggle of currency exchanges during cross -border transactions. ⊚ true ⊚ false 26) Many believe that globalization has created a convergence in A) the volume of goods and services produced. B) foreign exchange transaction law. C) environmental and labor laws. D) consumer taste preferences. E) the regulation of markets. 27) What is the shift toward a more integrated and interdependent world economy called? A) international trade B) foreign direct investment C) globalization D) Moore's Law E) containerization 28) Fast food chain restaurants promote different menu choices in different countries depending on a range of factors such as demographics, local taste, income levels, and cultural values. This demonstrates that A) significant differences still exist among na tional markets. B) cultural diversity has been replaced by global uniformity. C) the global market is less complex than national markets. D) only multinational giants can benefit from the globalization of markets. E) the social norms in a country do not affect purchase decisions of consumers. 4
