COMPLETE TEST BANK FOR
GLOBAL BUSINESS 5TH EDITION BY
MIKE PENG VERIFIED QUESTIONS
AND ANSWERS COVERING
CHAPTERS 1-17 FOR
COMPREHENSIVE EXAM PREP
Prepared for Comprehensive Exam Preparation
October 3, 2025
,Contents
1 Chapter 1: Globalizing Business . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2 Chapter 2: Understanding Formal Institutions: Politics, Laws, and Economics . 3
3 Chapter 3: Cultures, Ethics, and Norms . . . . . . . . . . . . . . . . . . . . . . . 5
4 Chapter 4: Leveraging Resources and Capabilities . . . . . . . . . . . . . . . . . 6
5 Chapter 5: Trading Internationally . . . . . . . . . . . . . . . . . . . . . . . . . 8
6 Chapter 6: Foreign Direct Investment . . . . . . . . . . . . . . . . . . . . . . . . 10
7 Chapter 7: Entrepreneurship and SMEs . . . . . . . . . . . . . . . . . . . . . . . 11
8 Chapter 8: Entering Foreign Markets . . . . . . . . . . . . . . . . . . . . . . . . 13
9 Chapter 9: Managing Global Competitive Dynamics . . . . . . . . . . . . . . . . 15
10 Chapter 10: Structuring Global Organizations . . . . . . . . . . . . . . . . . . . 16
11 Chapter 11: Managing Human Resources Globally . . . . . . . . . . . . . . . . . 18
12 Chapter 12: Managing International Alliances . . . . . . . . . . . . . . . . . . . 20
13 Chapter 13: Global Marketing and Supply Chain . . . . . . . . . . . . . . . . . 21
14 Chapter 14: Global Strategy Formulation . . . . . . . . . . . . . . . . . . . . . . 23
15 Chapter 15: Global Integration vs. Local Responsiveness . . . . . . . . . . . . . 24
16 Chapter 16: Corporate Social Responsibility . . . . . . . . . . . . . . . . . . . . 26
17 Chapter 17: Managing Political Risk . . . . . . . . . . . . . . . . . . . . . . . . . 28
18 Additional Questions for Comprehensive Review . . . . . . . . . . . . . . . . . . 29
1
,1 Chapter 1: Globalizing Business
1. What defines international business?
Engaging in economic activities across national borders.
2. What is meant by global business?
Conducting business operations worldwide.
3. What does global marketing involve?
Promoting products or services globally.
4. What is a global vision in business?
Identifying and responding to international opportunities and risks.
5. How is globalization characterized?
Tight economic and cultural integration of global societies.
6. What are the perspectives on globalization?
Seen as a modern phenomenon, historical process, or cyclical trend.
7. What advantages does globalization offer?
Enhances competition, productivity, and living standards.
8. What are the drawbacks of globalization?
Causes job displacement and introduces trade restrictions.
9. What is a tariff in trade?
A tax imposed on imported products.
10. What does a quota restrict?
The quantity of goods imported.
11. What characterizes a multinational enterprise (MNE)?
A company investing directly in foreign operations.
12. What is foreign direct investment (FDI)?
Investment in controlling and managing foreign operations.
13. What is a nongovernmental organization (NGO)?
An independent group not tied to governments.
14. What are emerging economies?
Developing nations with growing markets.
15. What measures gross domestic product (GDP)?
Total value of goods and services produced domestically.
16. What does purchasing power parity (PPP) adjust for?
Differences in currency purchasing power.
17. What constitutes gross national income (GNI)?
GDP plus income earned from foreign sources.
18. What does BRIC represent?
Brazil, Russia, India, and China.
2
, 19. What regions form the Triad?
North America, Western Europe, and Japan.
20. What is the base of the pyramid (BOP)?
Economies with per capita income below $2,000.
21. What is reverse innovation?
Innovations from emerging markets adopted globally.
22. What is the Group of 20 (G-20)?
A forum of 19 countries and the EU addressing global issues.
23. Why do companies pursue globalization?
To tap into new markets and resources.
24. What fuels modern globalization?
Advances in technology and trade pacts.
25. How does globalization impact employment?
It generates jobs but also displaces workers.
26. What is a trade boycott?
Refusal to purchase goods from specific countries.
27. What is economic integration?
Strengthening economic ties between nations.
28. How do MNEs contribute to globalization?
By investing and operating across borders.
29. How do GDP and GNI differ?
GNI includes income from abroad, unlike GDP.
30. Why is PPP used in economic comparisons?
It reflects true purchasing power across countries.
2 Chapter 2: Understanding Formal Institutions: Politics, Laws, and
Economics
1. What is national competitiveness?
A countrys ability to produce and deliver goods efficiently.
2. What is the resource-based view?
Firm success driven by unique resources and capabilities.
3. What defines a political system?
Rules and structures governing political activities.
4. What is a democratic system?
Governance by the people through elections.
5. What characterizes totalitarianism?
Centralized control over all societal aspects.
6. What is a legal system?
Framework of rules regulating behavior.
3
GLOBAL BUSINESS 5TH EDITION BY
MIKE PENG VERIFIED QUESTIONS
AND ANSWERS COVERING
CHAPTERS 1-17 FOR
COMPREHENSIVE EXAM PREP
Prepared for Comprehensive Exam Preparation
October 3, 2025
,Contents
1 Chapter 1: Globalizing Business . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2 Chapter 2: Understanding Formal Institutions: Politics, Laws, and Economics . 3
3 Chapter 3: Cultures, Ethics, and Norms . . . . . . . . . . . . . . . . . . . . . . . 5
4 Chapter 4: Leveraging Resources and Capabilities . . . . . . . . . . . . . . . . . 6
5 Chapter 5: Trading Internationally . . . . . . . . . . . . . . . . . . . . . . . . . 8
6 Chapter 6: Foreign Direct Investment . . . . . . . . . . . . . . . . . . . . . . . . 10
7 Chapter 7: Entrepreneurship and SMEs . . . . . . . . . . . . . . . . . . . . . . . 11
8 Chapter 8: Entering Foreign Markets . . . . . . . . . . . . . . . . . . . . . . . . 13
9 Chapter 9: Managing Global Competitive Dynamics . . . . . . . . . . . . . . . . 15
10 Chapter 10: Structuring Global Organizations . . . . . . . . . . . . . . . . . . . 16
11 Chapter 11: Managing Human Resources Globally . . . . . . . . . . . . . . . . . 18
12 Chapter 12: Managing International Alliances . . . . . . . . . . . . . . . . . . . 20
13 Chapter 13: Global Marketing and Supply Chain . . . . . . . . . . . . . . . . . 21
14 Chapter 14: Global Strategy Formulation . . . . . . . . . . . . . . . . . . . . . . 23
15 Chapter 15: Global Integration vs. Local Responsiveness . . . . . . . . . . . . . 24
16 Chapter 16: Corporate Social Responsibility . . . . . . . . . . . . . . . . . . . . 26
17 Chapter 17: Managing Political Risk . . . . . . . . . . . . . . . . . . . . . . . . . 28
18 Additional Questions for Comprehensive Review . . . . . . . . . . . . . . . . . . 29
1
,1 Chapter 1: Globalizing Business
1. What defines international business?
Engaging in economic activities across national borders.
2. What is meant by global business?
Conducting business operations worldwide.
3. What does global marketing involve?
Promoting products or services globally.
4. What is a global vision in business?
Identifying and responding to international opportunities and risks.
5. How is globalization characterized?
Tight economic and cultural integration of global societies.
6. What are the perspectives on globalization?
Seen as a modern phenomenon, historical process, or cyclical trend.
7. What advantages does globalization offer?
Enhances competition, productivity, and living standards.
8. What are the drawbacks of globalization?
Causes job displacement and introduces trade restrictions.
9. What is a tariff in trade?
A tax imposed on imported products.
10. What does a quota restrict?
The quantity of goods imported.
11. What characterizes a multinational enterprise (MNE)?
A company investing directly in foreign operations.
12. What is foreign direct investment (FDI)?
Investment in controlling and managing foreign operations.
13. What is a nongovernmental organization (NGO)?
An independent group not tied to governments.
14. What are emerging economies?
Developing nations with growing markets.
15. What measures gross domestic product (GDP)?
Total value of goods and services produced domestically.
16. What does purchasing power parity (PPP) adjust for?
Differences in currency purchasing power.
17. What constitutes gross national income (GNI)?
GDP plus income earned from foreign sources.
18. What does BRIC represent?
Brazil, Russia, India, and China.
2
, 19. What regions form the Triad?
North America, Western Europe, and Japan.
20. What is the base of the pyramid (BOP)?
Economies with per capita income below $2,000.
21. What is reverse innovation?
Innovations from emerging markets adopted globally.
22. What is the Group of 20 (G-20)?
A forum of 19 countries and the EU addressing global issues.
23. Why do companies pursue globalization?
To tap into new markets and resources.
24. What fuels modern globalization?
Advances in technology and trade pacts.
25. How does globalization impact employment?
It generates jobs but also displaces workers.
26. What is a trade boycott?
Refusal to purchase goods from specific countries.
27. What is economic integration?
Strengthening economic ties between nations.
28. How do MNEs contribute to globalization?
By investing and operating across borders.
29. How do GDP and GNI differ?
GNI includes income from abroad, unlike GDP.
30. Why is PPP used in economic comparisons?
It reflects true purchasing power across countries.
2 Chapter 2: Understanding Formal Institutions: Politics, Laws, and
Economics
1. What is national competitiveness?
A countrys ability to produce and deliver goods efficiently.
2. What is the resource-based view?
Firm success driven by unique resources and capabilities.
3. What defines a political system?
Rules and structures governing political activities.
4. What is a democratic system?
Governance by the people through elections.
5. What characterizes totalitarianism?
Centralized control over all societal aspects.
6. What is a legal system?
Framework of rules regulating behavior.
3
