Test Bank for Introduction to Global Business Introduction to Global Business: Understanding the International Environment and Global Business Functions 1st Edition, Gaspar. Chapter 1-15. MCQ, With Referencing, Completion and Essay Questions and Answers.

,Chapter 1: The Rise of Globalization
l l l l l




TRUE/FALSE

1. Withlbusinesslbecominglincreasinglylglobal,litslsuccess,lfortunately,ldependslonlylonltheldo
mesticlenvironment.

ANS: F PTS: 1 DIF: Difficulty:lModerate
REF: p.l4 OBJ: LO:l01-01 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lComprehension

2. Evenlthoughlbusinesslislglobal,lthelcreditlcrisislofl2008,lstartedlbylanlAmericanl investmentlbank
,lwasllimitedltolthelAmericanleconomylwithlfortunatelylnolimpactlonlthelgloballeconomy.

ANS: F PTS: 1 DIF: Difficulty:lChallenging
REF: p.l3 OBJ: LO:l01-01 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lAnalysis

3. Keylaspectsloflglobalizationlincludeltheleliminationloflbarriersltoltradelandlinformationltech
nology.

ANS: T PTS: 1 DIF: Difficulty:lModerate
REF: p.l5 OBJ: LO:l01-01 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lAnalysis

4. Solfarlglobalizationlhaslmadelitlpossiblelforlgoods,lservices,landlcapital,ltolcrosslnationallbord
erslbutlnotltechnologylandlculture.

ANS: F PTS: 1 DIF: Difficulty:lModerate
REF: p.l5 OBJ: LO:l01-01 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lAnalysis

5. Thel“soft”lqualitieslessentialltolglobalizationlincludelopenness,lprotectionism,lac
countability,lconnectivity,ldemocracy,landlcentralization.

ANS: F PTS: 1 DIF: Difficulty:lChallenging
REF: p.l6 OBJ: LO:l01-01 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lAnalysis

6. Alsustainableldecouplinglprocesslwouldleventuallylleadltolalmulti-polarlworld—
alworldleconomylinlwhichlthelenginesloflgrowthlcouldlcompriselthelUnitedlStates,lthelEurop
eanlUnion,lChina,lIndia,lBrazil,lRussia,landlSouthlAfricalratherlthanlthelUnitedlStateslalone.

ANS: T PTS: 1 DIF: Difficulty:lChallenging
REF: p.l9 OBJ: LO:l01-01 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lAnalysis

, 7. Thelopennesslandlproliferationloflglobalizationlandlfreeltradelruleslcanlbestlbelattributedltoltheli
nterwarlperiodlbetweenlWorldlWarlIlandlII.

ANS: F PTS: 1 DIF: Difficulty:lChallenging
REF: p.l10 OBJ: LO:l01-02 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lAnalysis

8. AslpartloflthelWorldlBank’slStrategiclFramework,ltherelarelfivelfocuslareaslthatlaccommodatela
ndlfacilitatelthelglobalizationlprocesslincludinglitslanalyticallandladvisorylrolelsupportinglnatio
nallpoliciesltolstrengthenlfreelmarketlinstitutionslandlinfrastructurelthatlhaslprovidedlthelpotenti
allforlcreatingllargel gainslfroml trade.

ANS: T PTS: 1 DIF: Difficulty:lChallenging
REF: p.l12 OBJ: LO:l01-02 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lEvaluation

9. ForlWorldlTradelOrganization,lincreasingltradelbarrierslhaslbeenloneloflthelmostlsimplisticlway
sltolencourageltradelandlglobalization.

ANS: F PTS: 1 DIF: Difficulty:lModerate
REF: p.l13 OBJ: LO:l01-02 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lComprehension

10. Thelfoundationsloflthelglobalizedlbusinesslworldlarelpolitical—
andlsolarelthelbiggestlthreatsltolthelsystem.

ANS: T PTS: 1 DIF: Difficulty:lChallenging
REF: p.l15 OBJ: LO:l01-03 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lAnalysis

11. Countrieslthatlhavelsuccessfullyladaptedltolglobalizationlrealizelthatltheylcannotlsucceedlwit
houtlhigh-qualityl governmentlmanagementlatlhome.

ANS: T PTS: 1 DIF: Difficulty:lModerate
REF: p.l18 OBJ: LO:l01-04 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lComprehension

12. Inlcommunistlandlstate-
controlledleconomiesllikelthoselinlCentrallAsialpropertylrightsleitherldolnotlexistlorlarelnotlwelll
definedlwhichldiscouragesldomesticlandlforeignl investorslfromlmakingllong-
termlcommitmentslinltheselcountries.

ANS: T PTS: 1 DIF: Difficulty:lModerate
REF: p.l18 OBJ: LO:l01-04 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lEvaluation

13. MorelglobalizedleconomiesllikelNewlZealandlandlSingaporelranklatltheltoplinlindexlforlabse
nceloflcorruptionlbylTransparencylInternational.

ANS:l T PTS: 1 DIF: Difficulty:lChallenging

, REF: p.l19 OBJ: LO:l01-04 NAT:l BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lEvaluation

14. Becauselbroadbandlpriceslhavelbeenlfalling,lgovernmentslinlemergingleconomieslsuchlaslIndial
andlSouthlAfricalarelfacilitatinglthelspreadloflbroadbandltolruralltownslandlvillagesltolprovidelin
stantlaccessltolmarketlinformationlandlgovernmentlprogramsltolremotelvillagerslwhichlwilllena
blelpolicymakersltolmaximizeltheleconomiclpotentialloflremotelcommunitieslandlmakelglobaliz
ationlsustainable.

ANS: T PTS: 1 DIF: Difficulty:lModerate
REF: p.l20 OBJ: LO:l01-05 NAT: BUSPROG:lAnalytic
STA: DISC:lInformationlTechnology KEY:l Bloom's:lEvaluation

15. Criticslarguelthatlopenltradelandlforeignldirectl investmentlalwaysltakeljobslfromlworkerslinldeve
lopingleconomieslandltransferlthemltolworkerslinladvancedlindustriallcountrieslwhichlleavelthel
workersl inltheldevelopinglcountry,loutloflwork.

ANS: F PTS: 1 DIF: Difficulty:lModerate
REF: p.l23 OBJ: LO:l01-06 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lEvaluation

16. AlsurveylbylthelWorldlBanklindicateslthatloflthelcompanieslsurveyed;lunfortunately,lonlyl30lp
ercentlhavelboard-
approvedlpolicieslonlenvironmentallmanagementlindicatinglthatlcorporatelsociallresponsibilit
ylpracticeslhavelbecomelanlinsignificantlfactorlinldetermininglwherelmultinationallcorporation
slconductlbusiness.

ANS: F PTS: 1 DIF: Difficulty:lChallenging
REF: p.l24 OBJ: LO:l01-06 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lEvaluation

MULTIPLElCHOICE

1. Oflthelfollowing,lwhichl islNOTltruel regardinglthelcreditlcrisis?
a. Itlaffectedlfarmersl inlBurkinalFaso.
b. Itlaffectedlminerslandlsteellworkersl inl Ukraine.
c. Itlaffectedlassemble-linelworkerslinlSingapore.
d. Itlaffectedlwhite-collarlworkerslatlinformationltechnologylfirmslinlIreland.
e. Itlhadlanlimpactlonlylonlitslcountryloflorigin-lthelUnitedlStates.
ANS: E PTS: 1 DIF: Difficulty:lEasy
REF: p.l3 OBJ: LO:l01-01 NAT: BUSPROG:lAnalytic
STA: DISC:lEnvironmentallInfluence KEY:l Bloom's:lEvaluation

2. BrazilianlJuice,lalmanufacturerloflhealthylfruitljuiceslinl Brazil,lsellsljuicelinlsixldifferentlcoun
trieslincludingl UnitedlStates.lBrazilianljuicelislengaginglin
a. economicldevelopmentlinlUnitedlStates.
b. exercisinglnontarifflbarrierslinlBrazil.
c. unfairltradelpractices.
d. globalization.