,Test Bank For Introduction to Global Business Understanding the International Environment & Global Business
Functions - 3rd
Chapter 1: The Rise of Globalization
TRUE/FALSE
1. With business becoming increasingly global, its success, fortunately, depends only on the
domestic environment.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 4 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
2. Even though business is global, the credit crisis of 2008, started by an American investment
bank, was limited to the American economy with fortunately no impact on the global
economy.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 3 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
3. Key aspects of globalization include the elimination of barriers to trade and information
technology.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
4. So far globalization has made it possible for goods, services, and capital, to cross national
borders but not technology and culture.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
5. The “soft” qualities essential to globalization include openness, protectionism,
accountability, connectivity, democracy, and centralization.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 6 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
6. A sustainable decoupling process would eventually lead to a multi-polar world—a world
economy in which the engines of growth could comprise the United States, the European
Union, China, India, Brazil, Russia, and South Africa rather than the United States alone.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 9 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
,STA: DISC: Environmental Influence KEY: Bloom's: Analysis
, 7. The openness and proliferation of globalization and free trade rules can best be attributed to
the interwar period between World War I and II.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 10 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
8. As part of the World Bank’s Strategic Framework, there are five focus areas that
accommodate and facilitate the globalization process including its analytical and advisory role
supporting national policies to strengthen free market institutions and infrastructure that has
provided the potential for creating large gains from trade.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 12 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
9. For World Trade Organization, increasing trade barriers has been one of the most simplistic
ways to encourage trade and globalization.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 13 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
10. The foundations of the globalized business world are political—and so are the biggest
threats to the system.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 15 OBJ: LO: 01-03 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
11. Countries that have successfully adapted to globalization realize that they cannot succeed
without high-quality government management at home.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 18 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
12. In communist and state-controlled economies like those in Central Asia property rights
either do not exist or are not well defined which discourages domestic and foreign investors
from making long-term commitments in these countries.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 18 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
13. More globalized economies like New Zealand and Singapore rank at the top in index for
absence of corruption by Transparency International.
ANS: T PTS: 1 DIF: Difficulty: Challenging
Functions - 3rd
Chapter 1: The Rise of Globalization
TRUE/FALSE
1. With business becoming increasingly global, its success, fortunately, depends only on the
domestic environment.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 4 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
2. Even though business is global, the credit crisis of 2008, started by an American investment
bank, was limited to the American economy with fortunately no impact on the global
economy.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 3 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
3. Key aspects of globalization include the elimination of barriers to trade and information
technology.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
4. So far globalization has made it possible for goods, services, and capital, to cross national
borders but not technology and culture.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
5. The “soft” qualities essential to globalization include openness, protectionism,
accountability, connectivity, democracy, and centralization.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 6 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
6. A sustainable decoupling process would eventually lead to a multi-polar world—a world
economy in which the engines of growth could comprise the United States, the European
Union, China, India, Brazil, Russia, and South Africa rather than the United States alone.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 9 OBJ: LO: 01-01 NAT: BUSPROG: Analytic
,STA: DISC: Environmental Influence KEY: Bloom's: Analysis
, 7. The openness and proliferation of globalization and free trade rules can best be attributed to
the interwar period between World War I and II.
ANS: F PTS: 1 DIF: Difficulty: Challenging
REF: p. 10 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
8. As part of the World Bank’s Strategic Framework, there are five focus areas that
accommodate and facilitate the globalization process including its analytical and advisory role
supporting national policies to strengthen free market institutions and infrastructure that has
provided the potential for creating large gains from trade.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 12 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
9. For World Trade Organization, increasing trade barriers has been one of the most simplistic
ways to encourage trade and globalization.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 13 OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
10. The foundations of the globalized business world are political—and so are the biggest
threats to the system.
ANS: T PTS: 1 DIF: Difficulty: Challenging
REF: p. 15 OBJ: LO: 01-03 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Analysis
11. Countries that have successfully adapted to globalization realize that they cannot succeed
without high-quality government management at home.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 18 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Comprehension
12. In communist and state-controlled economies like those in Central Asia property rights
either do not exist or are not well defined which discourages domestic and foreign investors
from making long-term commitments in these countries.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 18 OBJ: LO: 01-04 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Evaluation
13. More globalized economies like New Zealand and Singapore rank at the top in index for
absence of corruption by Transparency International.
ANS: T PTS: 1 DIF: Difficulty: Challenging
