TEST BANK For Global Business Today, 12th Edition By Charles Hill Chapters 1 - 17

Chapter One Globalization PART TWO National Differences Chapter Two National Differences in Political, Economic, and Legal Systems Chapter Three National Differences in Economic Development Chapter Four Differences in Culture Chapter Five Ethics, Corporate Social Responsibility, and Sustainability PART THREE The Global Trade and Investment Environment Chapter Six International Trade Theory Chapter Seven Government Policy and International Trade Chapter Eight Foreign Direct Investment Chapter Nine Regional Economic Integration PART FOUR The Global Monetary System Chapter Ten The Foreign Exchange Market Chapter Eleven The International Monetary System PART FIVE The Strategy of International Business Chapter Twelve The Strategy of International Business Chapter Thirteen Entering Developed and Emerging Markets PART SIX International Business Functions Chapter Fourteen Exporting, Importing, and Countertrade Chapter Fifteen Global Production and Supply Chain Management Chapter Sixteen Global Marketing and Business Analytics Chapter Seventeen Global Human Resource Management Answers are at the end of each chapter Chapter 01 Globalization True / False Questions 1. As a result of globalization, we have been moving toward a world in which national economies are relatively self-contained entities. True False 2. By offering the same basic product worldwide, firms help to create a global market. True False 3. A company has to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets. True False 4. As a result of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries. True False 5. Globalization has resulted in greater uniformity replacing diversity across national markets. True False 6. As firms follow each other around the world, they bring with them many of the assets that served them well in other national markets. Thus, greater diversity replaces uniformity. True False 7. Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe. True False 8. The World Trade Organization, the International Monetary Fund and its sister institution the World Bank, and the United Nations were all created by voluntary agreement between individual nation- states. True False 9. The International Monetary Fund and the World Bank were both created in 1944 by 44 nations that met at Bretton Woods, New Hampshire. True False 10. The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations. True False 11. The IMF is less controversial than its sister institution, the World Bank. True False 12. In return for loans, the IMF requires nation-states to adopt specific economic policies aimed at returning their troubled economies to stability and growth. True False 13. Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country. True False 14. After World War II, the advanced nations of the West committed themselves to increasing barriers to the free flow of goods, services, and capital between nations. True False 15. The Uruguay Round, held under the umbrella of GATT, extended GATT to cover services as well as manufactured goods. True False 16. The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity. True False 17. As a result of international trade, the economies of the world’s nation-states are becoming less intertwined. True False 18. The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding it easier to protect themselves from the attack of foreign competitors. True False 19. Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances. True False 20. While advances in telecommunications are creating a global audience, advances in transportation are creating a global village. True False 21. The real costs of information processing and communication have fallen dramatically in the past two decades. True False 22. The Internet has been a major force facilitating international trade in services. True False 23. Countries that markedly increased their share of world output from 1960 to 2010 included Germany, France, and the United Kingdom. True False 24. The United States accounted for a significantly larger share of the world economy in 2011 than it did in the 1960's. True False 25. Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from developing nations to their home countries where labor costs were lower. True False 26. The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country. True False 27. Throughout the 1990s, the amount of investment directed at both developed and developing