Test Bank for Global Business 4th Edition by Mike Peng.

Test Bank for Introduction to Global Business Introduction
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to Global Business: Understanding the International Enviro
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nment and Global Business Functions 1st Edition, Gaspar.
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Chapter 1-15 g



Chapterg1:gThegRisegofgGlobalization


TRUE/FALSE

1.
Withgbusinessgbecominggincreasinglygglobal,gitsgsuccess,gfortunately,gdependsgonlygongth
egdomesticgenvironment.

ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g4 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gComprehension

2.
Evengthoughgbusinessgisgglobal,gthegcreditgcrisisgofg2008,gstartedgbygangAmericanginvest
mentgbank,gwasglimitedgtogthegAmericangeconomygwithgfortunatelygnogimpactgongthegglobalgeco
nomy.

ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g3 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gAnalysis

3.
Keygaspectsgofgglobalizationgincludegthegeliminationgofgbarriersgtogtradegandginformationg
technology.

ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g5 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gAnalysis

4.
Sogfargglobalizationghasgmadegitgpossiblegforggoods,gservices,gandgcapital,gtogcrossgnation
algbordersgbutgnotgtechnologygandgculture.

ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g5 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gAnalysis

, 5.
Theg“soft”gqualitiesgessentialgtogglobalizationgincludegopenness,gprotectionism,gaccounta
bility,gconnectivity,gdemocracy,gandgcentralization.

ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g6 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gAnalysis

6. Agsustainablegdecouplinggprocessgwouldgeventuallygleadgtogagmulti-polargworld—
agworldgeconomygingwhichgthegenginesgofggrowthgcouldgcomprisegthegUnitedgStates,gthegEurope
angUnion,gChina,gIndia,gBrazil,gRussia,gandgSouthgAfricagrathergthangthegUnitedgStatesgalone.

ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g9 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gAnalysis

7.
Thegopennessgandgproliferationgofgglobalizationgandgfreegtradegrulesgcangbestgbegattribute
dgtogtheginterwargperiodgbetweengWorldgWargIgandgII.

ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g10 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gAnalysis

8.
AsgpartgofgthegWorldgBank’sgStrategicgFramework,gtheregaregfivegfocusgareasgthatgaccom
modategandgfacilitategthegglobalizationgprocessgincludinggitsganalyticalgandgadvisorygrolegsupport
inggnationalgpoliciesgtogstrengthengfreegmarketginstitutionsgandginfrastructuregthatghasgprovidedgt
hegpotentialgforgcreatingglargeggainsgfromgtrade.

ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g12 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gEvaluation

9.
ForgWorldgTradegOrganization,gincreasinggtradegbarriersghasgbeengonegofgthegmostgsimpli
sticgwaysgtogencouragegtradegandgglobalization.

ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g13 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gComprehension

10. Thegfoundationsgofgthegglobalizedgbusinessgworldgaregpolitical—
andgsogaregthegbiggestgthreatsgtogthegsystem.

ANS: T PTS: 1 DIF: Difficulty:gChallenging

, REF: p.g15 OBJ: LO:g01-03 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gAnalysis

11.
Countriesgthatghavegsuccessfullygadaptedgtogglobalizationgrealizegthatgtheygcannotgsuccee
dgwithoutghigh-qualityggovernmentgmanagementgatghome.

ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g18 OBJ: LO:g01-04 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gComprehension

12. Ingcommunistgandgstate-
controlledgeconomiesglikegthosegingCentralgAsiagpropertygrightsgeithergdognotgexistgorgaregnotgwe
llgdefinedgwhichgdiscouragesgdomesticgandgforeignginvestorsgfromgmakingglong-
termgcommitmentsgingthesegcountries.

ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g18 OBJ: LO:g01-04 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gEvaluation

13.
MoregglobalizedgeconomiesglikegNewgZealandgandgSingaporegrankgatgthegtopgingindexgfor
gabsencegofgcorruptiongbygTransparencygInternational.

ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g19 OBJ: LO:g01-04 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gEvaluation

14.
Becausegbroadbandgpricesghavegbeengfalling,ggovernmentsgingemerginggeconomiesgsuchg
asgIndiagandgSouthgAfricagaregfacilitatinggthegspreadgofgbroadbandgtogruralgtownsgandgvillagesgto
gprovideginstantgaccessgtogmarketginformationgandggovernmentgprogramsgtogremotegvillagersgwhi
chgwillgenablegpolicymakersgtogmaximizegthegeconomicgpotentialgofgremotegcommunitiesgandgm
akegglobalizationgsustainable.

ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g20 OBJ: LO:g01-05 NAT: BUSPROG:gAnalytic
STA: DISC:gInformationgTechnology KEY: Bloom's:gEvaluation

15.
Criticsgarguegthatgopengtradegandgforeigngdirectginvestmentgalwaysgtakegjobsgfromgworke
rsgingdevelopinggeconomiesgandgtransfergthemgtogworkersgingadvancedgindustrialgcountriesgwhich
gleavegthegworkersgingthegdevelopinggcountry,goutgofgwork.


ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g23 OBJ: LO:g01-06 NAT: BUSPROG:gAnalytic

, STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gEvaluation

16.
AgsurveygbygthegWorldgBankgindicatesgthatgofgthegcompaniesgsurveyed;gunfortunately,gon
lyg30gpercentghavegboard-
approvedgpoliciesgongenvironmentalgmanagementgindicatinggthatgcorporategsocialgresponsibilityg
practicesghavegbecomeganginsignificantgfactorgingdetermininggwheregmultinationalgcorporationsgc
onductgbusiness.

ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g24 OBJ: LO:g01-06 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gEvaluation

MULTIPLEgCHOICE

1. Ofgthegfollowing,gwhichgisgNOTgtruegregardinggthegcreditgcrisis?
a. ItgaffectedgfarmersgingBurkinagFaso.
b. ItgaffectedgminersgandgsteelgworkersgingUkraine.
c. Itgaffectedgassemble-linegworkersgingSingapore.
d. Itgaffectedgwhite-collargworkersgatginformationgtechnologygfirmsgingIreland.
e. Itghadgangimpactgonlygongitsgcountrygofgorigin-gthegUnitedgStates.
ANS: E PTS: 1 DIF: Difficulty:gEasy
REF: p.g3 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gEvaluation

2.
BraziliangJuice,gagmanufacturergofghealthygfruitgjuicesgingBrazil,gsellsgjuicegingsixgdifferen
tgcountriesgincludinggUnitedgStates.gBraziliangjuicegisgengaginggin
a. economicgdevelopmentgingUnitedgStates.
b. exercisinggnontariffgbarriersgingBrazil.
c. unfairgtradegpractices.
d. globalization.
e. thegWorldgTradegBankgGroup.
ANS: D PTS: 1 DIF: Difficulty:gModerate
REF: p.g5 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY: Bloom's:gApplication

3. WhichgofgthegfollowinggisgNOTgagkeygaspectgofgglobalization?
a. Thegeliminationgofgbarriersgtogtrade
b. Investment
c. Financialgindependence
d. Culture
e. Informationgtechnology
ANS: C PTS: 1 DIF: Difficulty:gModerate