Global Business 5th Edition (Peng)
Test Bank
Full Chapter Question Bank with Detailed Solutions for
International Business Fundamentals
September 26, 2025
, Global Business Test Bank 1 of 14
Chapter 1: Globalization and Global Business
Question 1.1: (True/False)
The World Trade Organization was formed in 1995, with the General Agree-
ment on Trade and Tariffs (GATT) as its basis.
Answer: True
Detailed Solution: The WTO replaced GATT in 1995 to oversee global trade rules.
This shift aimed to make trade predictable by reducing barriers and resolving disputes
effectively. It supports firms planning global expansion.
Question 1.2: (True/False)
A firm can fight anti-dumping directly with the WTO, not just through gov-
ernment.
Answer: True
Detailed Solution: Firms can initiate anti-dumping complaints with evidence of injury.
This allows businesses to counter unfair pricing, ensuring competitive markets.
Question 1.3: (Multiple Choice)
According to TRIPS, how long is a patent typically valid?
a) 10 years
b) 15 years
c) 20 years
d) 25 years
Answer: c
Detailed Solution: TRIPS sets a 20-year patent term, standardizing global protection
to encourage innovation by securing creators’ rights.
Question 1.4: (True/False)
The WTO allows anti-dumping actions only if there is genuine injury to do-
mestic industries.
Answer: True
Detailed Solution: Proof of material injury is required to prevent tariff abuse, protect-
ing local industries from predatory foreign pricing.
Question 1.5: (True/False)
Dumping occurs when a product is exported below its home market price.
Answer: True
Detailed Solution: Dumping involves selling abroad below cost to gain market share.
WTO rules allow countermeasures to balance consumer benefits and competitor harm.
Question 1.6: (True/False)
Quantitative restrictions limit imports to control trade volumes.
Answer: True
Test Bank
Full Chapter Question Bank with Detailed Solutions for
International Business Fundamentals
September 26, 2025
, Global Business Test Bank 1 of 14
Chapter 1: Globalization and Global Business
Question 1.1: (True/False)
The World Trade Organization was formed in 1995, with the General Agree-
ment on Trade and Tariffs (GATT) as its basis.
Answer: True
Detailed Solution: The WTO replaced GATT in 1995 to oversee global trade rules.
This shift aimed to make trade predictable by reducing barriers and resolving disputes
effectively. It supports firms planning global expansion.
Question 1.2: (True/False)
A firm can fight anti-dumping directly with the WTO, not just through gov-
ernment.
Answer: True
Detailed Solution: Firms can initiate anti-dumping complaints with evidence of injury.
This allows businesses to counter unfair pricing, ensuring competitive markets.
Question 1.3: (Multiple Choice)
According to TRIPS, how long is a patent typically valid?
a) 10 years
b) 15 years
c) 20 years
d) 25 years
Answer: c
Detailed Solution: TRIPS sets a 20-year patent term, standardizing global protection
to encourage innovation by securing creators’ rights.
Question 1.4: (True/False)
The WTO allows anti-dumping actions only if there is genuine injury to do-
mestic industries.
Answer: True
Detailed Solution: Proof of material injury is required to prevent tariff abuse, protect-
ing local industries from predatory foreign pricing.
Question 1.5: (True/False)
Dumping occurs when a product is exported below its home market price.
Answer: True
Detailed Solution: Dumping involves selling abroad below cost to gain market share.
WTO rules allow countermeasures to balance consumer benefits and competitor harm.
Question 1.6: (True/False)
Quantitative restrictions limit imports to control trade volumes.
Answer: True
