Chapter 1
Globalization
True/False Questions
1. Globalization of business involves the creation of wealth that benefits nations and
individuals worldwide.
ANS: T PAGE: 2
2. Globalization can help move a country from a developing status to a developed
status.
ANS: T PAGE: 2
3. The World Bank, IMF and WTO believe that globalization is responsible for
worsening poverty nationwide.
ANS: F PAGE: 2
4. Globalization supporters believe that economic policy must carry social
responsibility.
ANS: T PAGE: 2
5. The globalization of business brings new opportunities and threats to governments,
firms, and individuals.
, ANS: T PAGE: 3
6. Failure to become a part of the global market assured a nation of declining economic
influence and a deteriorating standard of living for its citizens.
ANS: T PAGE: 3
7. Economic isolation is not only possible but is probably the only way to survive the
ever increasing globalization impact.
ANS: F PAGE: 3
8. Technology continues to increase the reach and ease of conducting international
business.
ANS: T PAGE: 3
,LO 1 To learn the definition of international business
9. Import-export trade and foreign wholly-owned investments are the primary types
of international business.
ANS: F PAGE: 4
10. Global business consists of transactions that are devised and carried out across
national borders to satisfy the objectives of individuals, companies, and
organizations.
ANS: T PAGE: 4
11. When considering international business, the basic principles of business still apply,
but their applications, complexity and intensity vary substantially.
ANS: T PAGE: 4
LO 2 To recognize today’s global linkages that drive nations and firms to operate across
borders
12. Ever since the first national borders were formed, international business has been
conducted by nations and individuals.
ANS: T PAGE: 5
13. International business is a relatively recent phenomenon.
ANS: F PAGE: 5
14. The sales of foreign affiliates of multinational corporations are now twice as high as
global exports.
ANS: T PAGE: 6
, 15. The sheer volume and value of international trade has led to the forging of a
network of global links around the world that binds us all much closer than ever
before.
ANS: T PAGE: 6
16. Service firms do not play a larger role in international business.
ANS: F PAGE: 7
Globalization
True/False Questions
1. Globalization of business involves the creation of wealth that benefits nations and
individuals worldwide.
ANS: T PAGE: 2
2. Globalization can help move a country from a developing status to a developed
status.
ANS: T PAGE: 2
3. The World Bank, IMF and WTO believe that globalization is responsible for
worsening poverty nationwide.
ANS: F PAGE: 2
4. Globalization supporters believe that economic policy must carry social
responsibility.
ANS: T PAGE: 2
5. The globalization of business brings new opportunities and threats to governments,
firms, and individuals.
, ANS: T PAGE: 3
6. Failure to become a part of the global market assured a nation of declining economic
influence and a deteriorating standard of living for its citizens.
ANS: T PAGE: 3
7. Economic isolation is not only possible but is probably the only way to survive the
ever increasing globalization impact.
ANS: F PAGE: 3
8. Technology continues to increase the reach and ease of conducting international
business.
ANS: T PAGE: 3
,LO 1 To learn the definition of international business
9. Import-export trade and foreign wholly-owned investments are the primary types
of international business.
ANS: F PAGE: 4
10. Global business consists of transactions that are devised and carried out across
national borders to satisfy the objectives of individuals, companies, and
organizations.
ANS: T PAGE: 4
11. When considering international business, the basic principles of business still apply,
but their applications, complexity and intensity vary substantially.
ANS: T PAGE: 4
LO 2 To recognize today’s global linkages that drive nations and firms to operate across
borders
12. Ever since the first national borders were formed, international business has been
conducted by nations and individuals.
ANS: T PAGE: 5
13. International business is a relatively recent phenomenon.
ANS: F PAGE: 5
14. The sales of foreign affiliates of multinational corporations are now twice as high as
global exports.
ANS: T PAGE: 6
, 15. The sheer volume and value of international trade has led to the forging of a
network of global links around the world that binds us all much closer than ever
before.
ANS: T PAGE: 6
16. Service firms do not play a larger role in international business.
ANS: F PAGE: 7
