International Management: Culture, Strategy, and Behavior – 12th Edition (Fred Luthans, Jonathan Doh) | Complete Test Bank | REVISED EDITION – NEW 100% VERIFIED CORRECT

TestBankforInternationalManagement:
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Culture, Strategy, and Behavior, 12th
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Edition, Fred Luthans, Jonathan Doh
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, Chapter 01 fh




fh Globalization and International Linkages fh fh fh




True/False Questions fh




1. Internationalization is the vision of creating one world unit, a single market entity. fh fh fh fh fh fh fh fh fh fh fh fh




Answer: False
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Feedback: Internationalization is the process of a business crossing national and cultural
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borders, while globalization is the vision of creating one world unit, a single market entity.
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AACSB: Analytic
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Bloom's: Remember fh




Learning Objective: 01-01 ASSESS the implications of globalization for countries, industries,
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firms, and communities.
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Level of Difficulty: 1 Easy
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Topic: Globalization and Internationalization
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2. In the context of the changing global demographics, elderly populations spend money on
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housing and other capitally financed purchases.
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Answer: False fh




Feedback: While elderly populations spend money on health care services, younger populations
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spend income on housing and other capitally financed purchases.
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AACSB: Analytic fh




Bloom's:Remember
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Learning Objective: 01-01 ASSESS the implications of globalization for countries, industries,
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firms, and communities.
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Level of Difficulty: 1 Easy
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Topic: Globalization and Internationalization
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3. North American Free Trade Agreement (NAFTA) members are better integrated as a
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single market than the European Union (EU) or the allied Asian countries.
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Answer: False fh




Feedback: Even though long-standing cultural differences remain, and the European Union has
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recently experienced some substantial challenges, the European Union is more integrated as a
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single market than NAFTA, CAFTA, or the allied Asian countries.
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AACSB: Analytic fh




Bloom's:Remember
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Learning Objective: 01-01 ASSESS the implications of globalization for countries, industries,
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firms, and communities.
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Level of Difficulty: 1 Easy
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Topic: Globalization and Internationalization
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4. General Electric (GE) has strategically leveraged social media to improve its long-term
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brand image.
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Answer: True fh




Feedback: General Electric (GE) has strategically leveraged social media to improve its long-
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term brand image. By interacting daily with customers across a variety of social networks, the
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100-year-old company aims to transform the way that its brand is perceived while
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simultaneously building a new generation of consumers.
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, AACSB: Analytic fh




Bloom's:Remember
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Learning Objective: 01-01 ASSESS the implications of globalization for countries, industries,
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firms, and communities.
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Level of Difficulty: 1 Easy Topic:
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An Interconnected World
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5. An increase in the ease of travel between countries is an important development that has
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occurred because of the North American Free Trade Agreement (NAFTA).
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Answer: True fh




Feedback: An increase in the ease of travel between countries is an important development that
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has occurred because of the North American Free Trade Agreement (NAFTA). Other important
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developments include the elimination of tariffs as well as import and export quotas, the opening
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of government procurement markets to companies in Canada and Mexico, an increase in the
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opportunity to make investments in each other’s country, and the removal of restrictions on
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agricultural products, auto parts, and energy goods.
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AACSB: Analytic fh




Bloom's:Remember
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Learning Objective: 01-01 ASSESS the implications of globalization for countries, industries,
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firms, and communities.
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Level of Difficulty: 1 Easy
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Topic: Globalization and Internationalization
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6. According to a Goldman Sachs global economics team report, it is estimated that the
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economies of Brazil, Russia, India, and China, which it collectively coined as the "BRIC"
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nations, will surpass the collective economies of the G7 nations by 2032.
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Answer: True fh




Feedback: According to a Goldman Sachs global economics team report, it is estimated that the
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economies of Brazil, Russia, India, and China, which it collectively coined as the "BRIC"
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nations, will surpass the collective economies of the G7 nations by 2032.
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AACSB: Analytic fh




Bloom's:Remember
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Learning Objective: 01-01 ASSESS the implications of globalization for countries, industries,
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firms, and communities.
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Level of Difficulty: 1 Easy
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Topic: Globalization and Internationalization
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7. Foreign direct investment has been falling alarmingly since the global recession of 2009 in
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most regions of the world.
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Answer: False fh




Feedback: Foreign direct investment (FDI)—the term used to indicate the amount invested in
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property, plant, and equipment in another country—has been growing at a slow but steady rate
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in the years since the global recession of 2009.
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AACSB: Analytic fh




Bloom's:Remember
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Learning Objective: 01-01 ASSESS the implications of globalization for countries, industries,
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firms, and communities.
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Level of Difficulty: 1 Easy
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Topic: Globalization and Internationalization
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