Global Business Today Global 8th Edition Hill Test Bank
g g g g g g g g
Answersgaregatgthegendgofgeachgchapter
Chapterg01gGlobalizationgTru
eg/gFalsegQuestions
1. Asgagresultgofgglobalization,gweghavegbeengmovinggtowardgagworldgingwhichgnationalgeconomiesg
aregrelativelygself-containedgentities.
True False
2. Bygofferinggthegsamegbasicgproductgworldwide,gfirmsghelpgtogcreategagglobalgmarket.g
True False
3. Agcompanyghasgtogbegthegsizegofgagmultinationalggiantgtogfacilitate,gandgbenefitgfrom,gtheg
globalizationgofgmarkets.
True False
4. Asgagresultgofgglobalization,gcompaniesgrarelygneedgtogcustomizegmarketinggstrategies,gproductg
features,gandgoperatinggpracticesgingdifferentgcountries.
True False
5. Globalizationghasgresultedginggreaterguniformitygreplacinggdiversitygacrossgnationalgmarkets.g
True False
6. Asgfirmsgfollowgeachgothergaroundgthegworld,gtheygbringgwithgthemgmanygofgthegassetsgthatg
servedgthemgwellgingothergnationalgmarkets.gThus,ggreatergdiversitygreplacesguniformity.
True False
7. Substantialgimpediments,gsuchgasgbarriersgtogforeigngdirectginvestment,gmakegitgdifficultgforgfirmsg
togachievegthegoptimalgdispersiongofgtheirgproductivegactivitiesgtoglocationsgaroundgthegglobe.
True False
8. ThegWorldgTradegOrganization,gthegInternationalgMonetarygFundgandgitsgsisterginstitutiongtheg
WorldgBank,gandgthegUnitedgNationsgweregallgcreatedgbygvoluntarygagreementgbetweengindividualgna
tion-gstates.
True False
,9. ThegInternationalgMonetarygFundgandgthegWorldgBankgweregbothgcreatedging1944gbyg44gnationsg
thatgmetgatgBrettongWoods,gNewgHampshire.
True False
10. ThegWTOgisgseengasgtheglendergofglastgresortgtognation-
statesgwhosegeconomiesgaregingturmoilgandgwhosegcurrenciesgareglosinggvaluegagainstgthosegofgotherg
nations.
True False
11. ThegIMFgisglessgcontroversialgthangitsgsisterginstitution,gthegWorldgBank.g
True False
12. Ingreturngforgloans,gthegIMFgrequiresgnation-
statesgtogadoptgspecificgeconomicgpoliciesgaimedgatgreturninggtheirgtroubledgeconomiesgtogstabilitygandg
growth.
True False
13. Foreigngdirectginvestmentg(FDI)goccursgwhengagfirmginvestsgresourcesgingbusinessgactivitiesg
outsidegitsghomegcountry.
True False
14. AftergWorldgWargII,gthegadvancedgnationsgofgthegWestgcommittedgthemselvesgtogincreasingg
barriersgtogthegfreegflowgofggoods,gservices,gandgcapitalgbetweengnations.
True False
15. ThegUruguaygRound,gheldgundergthegumbrellagofgGATT,gextendedgGATTgtogcovergservicesgasgwellg
asgmanufacturedggoods.
True False
16. Thegloweringgofgtradegandginvestmentgbarriersgallowsgfirmsgtogbasegproductiongatgthegoptimalg
locationgforgthatgactivity.
True False
17. Asgagresultgofginternationalgtrade,gthegeconomiesgofgthegworld’sgnation-
statesgaregbecomingglessgintertwined.
True False
18. Thegglobalizationgofgmarketsgandgproductiongandgthegresultingggrowthgofgworldgtrade,gforeigng
directginvestment,gandgimportsgallgimplygthatgfirmsgaregfindinggitgeasiergtogprotectgthemselvesgfrom
thegattackgofgforeigngcompetitors.
,True False
19. Containerizationghasgrevolutionizedgthegtransportationgbusiness,gsignificantlygloweringgthegcostsg
ofgshippingggoodsgoverglonggdistances.
True False
20. Whilegadvancesgingtelecommunicationsgaregcreatinggagglobalgaudience,gadvancesging
transportationgaregcreatinggagglobalgvillage.
True False
21. Thegrealgcostsgofginformationgprocessinggandgcommunicationghavegfallengdramaticallygingthegpastg
twogdecades.
True False
22. ThegInternetghasgbeengagmajorgforcegfacilitatingginternationalgtradegingservices.g
True False
23. Countriesgthatgmarkedlygincreasedgtheirgsharegofgworldgoutputgfromg1960gtog2010gincludedg
Germany,gFrance,gandgthegUnitedgKingdom.
True False
24. ThegUnitedgStatesgaccountedgforgagsignificantlyglargergsharegofgthegworldgeconomyging2011gthangitg
didgingtheg1960's.
True False
25. Beginninggingtheg1970s,gEuropeangandgJapanesegfirmsgbegangtogshiftglabor-
intensivegmanufacturinggoperationsgfromgdevelopinggnationsgtogtheirghomegcountriesgwhereglaborgc
ostsgwereglower.
True False
26. Thegstockgofgforeigngdirectginvestmentgrefersgtogthegtotalgcumulativegvaluegofgforeigng
investmentsgingagcountry.
True False
27. Throughoutgtheg1990s,gthegamountgofginvestmentgdirectedgatgbothgdevelopedgandgdevelopingg
nationsgincreasedgdramatically
True False
, 28. Amonggdevelopinggnations,gtheglargestgrecipientgofgforeigngdirectginvestmentghasgbeengChina.g
Trueg g False
29. Althoughgmostginternationalgtradegandginvestmentgisgstillgconductedgbyglargegfirms,gmanyg
medium-
gsizegandgsmallgbusinessesgaregbecominggincreasinglyginvolvedginginternationalgtradegandginvestme
nt.
True False
30. ThegrisegofgthegInternetgisgincreasinggthegbarriersgthatgsmallgfirmsgfacegingbuildingginternationalg
sales.
True False
31. ManygofgthegformergCommunistgnationsgofgEuropegandgAsiagseemgtogsharegagcommitmentgtog
democraticgpoliciesgandgfreegmarketgeconomies.
True False
32. Ingthegpastgquartergcentury,gthegvolumegofgcross-
bordergtradegandginvestmentghasgbeenggrowingglessgrapidlygthangglobalgoutput.
True False
33. Onegconcerngfrequentlygvoicedgbygglobalizationgopponentsgisgthatgfallinggbarriersgtoginternationalg
tradegdestroygmanufacturinggjobsgingwealthygadvancedgeconomiesgsuchgasgthegUnitedgStatesgandg wester
ngEurope.
True False
34. Itgisgpossiblegthatgeconomicggrowthgingdevelopedgnationsghasgoffsetgthegfallgingthegsharegofg
nationalgincomegenjoyedgbygunskilledgworkers,graisinggtheirglivinggstandards.
True False
35. Onegconcerngofgglobalizationgopponentsgisgthatgitgunderminesgtheginfluencegofgsupranationalg
organizationsgandgpromotesgthegsovereigntygofgindividualgnation-states.
True False
36. Inggeneral,gasgcountriesggetgricher,gtheygenactgtoughergenvironmentalgandglaborgregulations.
g g g g g g g g
Answersgaregatgthegendgofgeachgchapter
Chapterg01gGlobalizationgTru
eg/gFalsegQuestions
1. Asgagresultgofgglobalization,gweghavegbeengmovinggtowardgagworldgingwhichgnationalgeconomiesg
aregrelativelygself-containedgentities.
True False
2. Bygofferinggthegsamegbasicgproductgworldwide,gfirmsghelpgtogcreategagglobalgmarket.g
True False
3. Agcompanyghasgtogbegthegsizegofgagmultinationalggiantgtogfacilitate,gandgbenefitgfrom,gtheg
globalizationgofgmarkets.
True False
4. Asgagresultgofgglobalization,gcompaniesgrarelygneedgtogcustomizegmarketinggstrategies,gproductg
features,gandgoperatinggpracticesgingdifferentgcountries.
True False
5. Globalizationghasgresultedginggreaterguniformitygreplacinggdiversitygacrossgnationalgmarkets.g
True False
6. Asgfirmsgfollowgeachgothergaroundgthegworld,gtheygbringgwithgthemgmanygofgthegassetsgthatg
servedgthemgwellgingothergnationalgmarkets.gThus,ggreatergdiversitygreplacesguniformity.
True False
7. Substantialgimpediments,gsuchgasgbarriersgtogforeigngdirectginvestment,gmakegitgdifficultgforgfirmsg
togachievegthegoptimalgdispersiongofgtheirgproductivegactivitiesgtoglocationsgaroundgthegglobe.
True False
8. ThegWorldgTradegOrganization,gthegInternationalgMonetarygFundgandgitsgsisterginstitutiongtheg
WorldgBank,gandgthegUnitedgNationsgweregallgcreatedgbygvoluntarygagreementgbetweengindividualgna
tion-gstates.
True False
,9. ThegInternationalgMonetarygFundgandgthegWorldgBankgweregbothgcreatedging1944gbyg44gnationsg
thatgmetgatgBrettongWoods,gNewgHampshire.
True False
10. ThegWTOgisgseengasgtheglendergofglastgresortgtognation-
statesgwhosegeconomiesgaregingturmoilgandgwhosegcurrenciesgareglosinggvaluegagainstgthosegofgotherg
nations.
True False
11. ThegIMFgisglessgcontroversialgthangitsgsisterginstitution,gthegWorldgBank.g
True False
12. Ingreturngforgloans,gthegIMFgrequiresgnation-
statesgtogadoptgspecificgeconomicgpoliciesgaimedgatgreturninggtheirgtroubledgeconomiesgtogstabilitygandg
growth.
True False
13. Foreigngdirectginvestmentg(FDI)goccursgwhengagfirmginvestsgresourcesgingbusinessgactivitiesg
outsidegitsghomegcountry.
True False
14. AftergWorldgWargII,gthegadvancedgnationsgofgthegWestgcommittedgthemselvesgtogincreasingg
barriersgtogthegfreegflowgofggoods,gservices,gandgcapitalgbetweengnations.
True False
15. ThegUruguaygRound,gheldgundergthegumbrellagofgGATT,gextendedgGATTgtogcovergservicesgasgwellg
asgmanufacturedggoods.
True False
16. Thegloweringgofgtradegandginvestmentgbarriersgallowsgfirmsgtogbasegproductiongatgthegoptimalg
locationgforgthatgactivity.
True False
17. Asgagresultgofginternationalgtrade,gthegeconomiesgofgthegworld’sgnation-
statesgaregbecomingglessgintertwined.
True False
18. Thegglobalizationgofgmarketsgandgproductiongandgthegresultingggrowthgofgworldgtrade,gforeigng
directginvestment,gandgimportsgallgimplygthatgfirmsgaregfindinggitgeasiergtogprotectgthemselvesgfrom
thegattackgofgforeigngcompetitors.
,True False
19. Containerizationghasgrevolutionizedgthegtransportationgbusiness,gsignificantlygloweringgthegcostsg
ofgshippingggoodsgoverglonggdistances.
True False
20. Whilegadvancesgingtelecommunicationsgaregcreatinggagglobalgaudience,gadvancesging
transportationgaregcreatinggagglobalgvillage.
True False
21. Thegrealgcostsgofginformationgprocessinggandgcommunicationghavegfallengdramaticallygingthegpastg
twogdecades.
True False
22. ThegInternetghasgbeengagmajorgforcegfacilitatingginternationalgtradegingservices.g
True False
23. Countriesgthatgmarkedlygincreasedgtheirgsharegofgworldgoutputgfromg1960gtog2010gincludedg
Germany,gFrance,gandgthegUnitedgKingdom.
True False
24. ThegUnitedgStatesgaccountedgforgagsignificantlyglargergsharegofgthegworldgeconomyging2011gthangitg
didgingtheg1960's.
True False
25. Beginninggingtheg1970s,gEuropeangandgJapanesegfirmsgbegangtogshiftglabor-
intensivegmanufacturinggoperationsgfromgdevelopinggnationsgtogtheirghomegcountriesgwhereglaborgc
ostsgwereglower.
True False
26. Thegstockgofgforeigngdirectginvestmentgrefersgtogthegtotalgcumulativegvaluegofgforeigng
investmentsgingagcountry.
True False
27. Throughoutgtheg1990s,gthegamountgofginvestmentgdirectedgatgbothgdevelopedgandgdevelopingg
nationsgincreasedgdramatically
True False
, 28. Amonggdevelopinggnations,gtheglargestgrecipientgofgforeigngdirectginvestmentghasgbeengChina.g
Trueg g False
29. Althoughgmostginternationalgtradegandginvestmentgisgstillgconductedgbyglargegfirms,gmanyg
medium-
gsizegandgsmallgbusinessesgaregbecominggincreasinglyginvolvedginginternationalgtradegandginvestme
nt.
True False
30. ThegrisegofgthegInternetgisgincreasinggthegbarriersgthatgsmallgfirmsgfacegingbuildingginternationalg
sales.
True False
31. ManygofgthegformergCommunistgnationsgofgEuropegandgAsiagseemgtogsharegagcommitmentgtog
democraticgpoliciesgandgfreegmarketgeconomies.
True False
32. Ingthegpastgquartergcentury,gthegvolumegofgcross-
bordergtradegandginvestmentghasgbeenggrowingglessgrapidlygthangglobalgoutput.
True False
33. Onegconcerngfrequentlygvoicedgbygglobalizationgopponentsgisgthatgfallinggbarriersgtoginternationalg
tradegdestroygmanufacturinggjobsgingwealthygadvancedgeconomiesgsuchgasgthegUnitedgStatesgandg wester
ngEurope.
True False
34. Itgisgpossiblegthatgeconomicggrowthgingdevelopedgnationsghasgoffsetgthegfallgingthegsharegofg
nationalgincomegenjoyedgbygunskilledgworkers,graisinggtheirglivinggstandards.
True False
35. Onegconcerngofgglobalizationgopponentsgisgthatgitgunderminesgtheginfluencegofgsupranationalg
organizationsgandgpromotesgthegsovereigntygofgindividualgnation-states.
True False
36. Inggeneral,gasgcountriesggetgricher,gtheygenactgtoughergenvironmentalgandglaborgregulations.
