Global Business Today Global 8th Edition Hill Test Bank
m m m m m m m m
Answersmarematmthemendmofmeachmchapter
Chapterm01mGlobalizationmTr
ue m/mFalse mQuestions
1. Asmamresultmofmglobalization,mwemhave mbeenmmovingmtowardmamworldminmwhichmnationalmecono
miesmare mrelativelymself-containedmentities.
True False
2. Bymofferingmthemsame mbasicmproductmworldwide,mfirmsmhelpmtomcreate mamglobalmma
rket.mTrue False
3. Amcompanymhasmtombemthemsizemof mammultinationalmgiantmtomfacilitate,mandmbenefitmfrom
,mthe mglobalizationmofmmarkets.
True False
4. Asmamresultmofmglobalization,mcompaniesmrarelymneedmtomcustomizemmarketingmstrategies,mpro
ductmfeatures,mandmoperatingmpracticesminmdifferentmcountries.
True False
5. Globalizationmhasmresultedminmgreatermuniformitymreplacingmdiversitymacrossmnationalmmark
ets.mTrue False
6. Asmfirmsmfollowmeachmothermaroundmthemworld,mtheymbringmwithmthemmmanymofmthemassets
m thatm servedmthemmwellm inmothermnationalm markets. mThus, mgreaterm diversity m replaces m uniformity.
True False
7. Substantialmimpediments, msuchmasmbarriersmtomforeignmdirectminvestment,mmakemitmdifficultmformf
irmsmtomachieve mthemoptimalmdispersionmofmtheirmproductivemactivitiesmtomlocationsmaroundmthe mglobe.
True False
8. The mWorldmTrade mOrganization,mthemInternationalmMonetarymFundmandmitsmsisterminstitution
m the m Worldm Bank, mandm the mUnitedm Nations mwerem allm createdm by mvoluntary magreementmbetween mind
ividualmnation-mstates.
True False
,9. The mInternationalmMonetarymFundmandmthe mWorldmBankmwerembothmcreatedminm1944mbym44mna
tionsmthatmmetmatmBrettonmWoods,mNewmHampshire.
True False
10. The mWTOmismseenmasmthe mlendermofmlastmresortmtomnation-
statesmwhose meconomiesmareminmturmoilmandmwhosemcurrenciesmaremlosingmvalue magainstmthosemofmo
thermnations.
True False
11. The mIMFmismlessmcontroversialmthanmitsmsisterminstitution,mthe mWorldmB
ank.mTrue False
12. Inmreturnmformloans,mthe mIMFmrequiresmnation-
statesmtomadoptmspecificmeconomicmpoliciesmaimedmatmreturningmtheirmtroubledmeconomiesmtomstability
m andm growth.
True False
13. Foreignmdirectminvestmentm(FDI)moccursmwhenmamfirmminvestsmresourcesminmbusinessmactivi
tiesmoutside mitsmhome mcountry.
True False
14. AftermWorldmWarmII,mthe madvancedmnationsmofmthemWestmcommittedmthemselvesmtomincrea
singmbarriersmtomthe mfree mflowmofmgoods,mservices,mandmcapitalmbetweenmnations.
True False
15. The mUruguaymRound,mheldmundermthemumbrellamofmGATT,mextendedmGATTmtomcovermservicesmas
m wellm asm manufactured m goods.
True False
16. The mloweringmofmtrade mandminvestmentmbarriersmallowsmfirmsmtombasemproductionmatmthemopt
imalmlocationmformthatmactivity.
True False
17. Asmamresultmof minternationalmtrade,mthe meconomiesmof mthe mworld’smnation-
statesmare mbecomingmlessmintertwined.
True False
18. The mglobalizationmof mmarketsmandmproductionmandmthemresultingmgrowthmof mworldmtrade,mfor
eignmdirectminvestment,mandmimportsmallmimplymthatmfirmsmare mfindingmitmeasiermtomprotectmthemselv
esmfrom
the mattackmof mforeignmcompetitors.
,True False
19. Containerizationmhasmrevolutionizedmthemtransportationmbusiness,msignificantlymloweringmthemco
stsmof mshippingmgoodsmovermlongmdistances.
True False
20. While madvancesminmtelecommunicationsmare mcreatingmamglobalmaudience,madvance
sminmtransportationmare mcreatingmamglobalmvillage.
True False
21. The mrealmcostsmofminformationmprocessingmandmcommunicationmhavemfallenmdramaticallyminmthem
pastmtwomdecades.
True False
22. The mInternetmhasmbeenmammajormforce mfacilitatingminternationalmtrademinmservi
ces.mTrue False
23. Countriesmthatmmarkedlymincreasedmtheirmshare mofmworldmoutputmfromm1960mtom2010mincl
udedmGermany,mFrance,mandmthe mUnitedmKingdom.
True False
24. The mUnitedmStatesmaccountedmformamsignificantlymlargermshare mofmthemworldmeconomyminm2011mt
hanmitmdidminmthe m1960's.
True False
25. Beginningminmthe m1970s,mEuropeanmandmJapanese mfirmsmbeganmtomshiftmlabor-
intensive mmanufacturingmoperationsmfrommdevelopingmnationsmtomtheirmhomemcountriesmwheremlab
ormcostsmwere mlower.
True False
26. The mstockmofmforeignmdirectminvestmentmrefersmtomthe mtotalmcumulative mvaluemofmfor
eignminvestmentsminmamcountry.
True False
27. Throughoutmthem1990s,mthe mamountmofminvestmentmdirectedmatmbothmdevelopedmandmdevelo
pingmnationsmincreasedmdramatically
True False
, 28. Amongmdevelopingmnations,mthemlargestmrecipientmofmforeignmdirectminvestmentmhasmbeenmCh
ina.mTrue m m False
29. Althoughmmostminternationalmtrademandminvestmentmismstillmconductedmbymlargemfirms,mm
anymmedium-
m sizem andm smallm businessesm arembecomingm increasinglym involvedm inm internationalm tradem andm inve
stment.
True False
30. The mrise mofmthemInternetmismincreasingmthembarriersmthatmsmallmfirmsmface minmbuildingminternat
ionalmsales.
True False
31. ManymofmthemformermCommunistmnationsmofmEuropemandmAsiamseemmtomsharemamcommitme
ntmtomdemocraticmpoliciesmandmfree mmarketmeconomies.
True False
32. Inmthe mpastmquartermcentury,mthe mvolume mof mcross-
bordermtrade mandminvestmentmhasmbeenmgrowingmlessmrapidlymthanmglobalmoutput.
True False
33. One mconcernmfrequentlymvoicedmbymglobalizationmopponentsmismthatmfallingmbarriersmtominternati
onalmtrade mdestroymmanufacturingmjobsminmwealthymadvancedmeconomiesmsuchmasmthe mUnitedmStatesman
dm westernmEurope.
True False
34. Itmismpossible mthatmeconomicmgrowthminmdevelopedmnationsmhasmoffsetmthe mfallminmthemsha
re mof mnationalmincome menjoyedmbymunskilledmworkers,mraisingmtheirmlivingmstandards.
True False
35. One mconcernmofmglobalizationmopponentsmismthatmitmunderminesmthe minfluence mofmsupranati
onalmorganizationsmandmpromotesmthe msovereigntymof mindividualmnation-states.
True False
36. Inmgeneral,masmcountriesmgetmricher,mtheymenactmtoughermenvironmentalmandmlabormregulations.
m m m m m m m m
Answersmarematmthemendmofmeachmchapter
Chapterm01mGlobalizationmTr
ue m/mFalse mQuestions
1. Asmamresultmofmglobalization,mwemhave mbeenmmovingmtowardmamworldminmwhichmnationalmecono
miesmare mrelativelymself-containedmentities.
True False
2. Bymofferingmthemsame mbasicmproductmworldwide,mfirmsmhelpmtomcreate mamglobalmma
rket.mTrue False
3. Amcompanymhasmtombemthemsizemof mammultinationalmgiantmtomfacilitate,mandmbenefitmfrom
,mthe mglobalizationmofmmarkets.
True False
4. Asmamresultmofmglobalization,mcompaniesmrarelymneedmtomcustomizemmarketingmstrategies,mpro
ductmfeatures,mandmoperatingmpracticesminmdifferentmcountries.
True False
5. Globalizationmhasmresultedminmgreatermuniformitymreplacingmdiversitymacrossmnationalmmark
ets.mTrue False
6. Asmfirmsmfollowmeachmothermaroundmthemworld,mtheymbringmwithmthemmmanymofmthemassets
m thatm servedmthemmwellm inmothermnationalm markets. mThus, mgreaterm diversity m replaces m uniformity.
True False
7. Substantialmimpediments, msuchmasmbarriersmtomforeignmdirectminvestment,mmakemitmdifficultmformf
irmsmtomachieve mthemoptimalmdispersionmofmtheirmproductivemactivitiesmtomlocationsmaroundmthe mglobe.
True False
8. The mWorldmTrade mOrganization,mthemInternationalmMonetarymFundmandmitsmsisterminstitution
m the m Worldm Bank, mandm the mUnitedm Nations mwerem allm createdm by mvoluntary magreementmbetween mind
ividualmnation-mstates.
True False
,9. The mInternationalmMonetarymFundmandmthe mWorldmBankmwerembothmcreatedminm1944mbym44mna
tionsmthatmmetmatmBrettonmWoods,mNewmHampshire.
True False
10. The mWTOmismseenmasmthe mlendermofmlastmresortmtomnation-
statesmwhose meconomiesmareminmturmoilmandmwhosemcurrenciesmaremlosingmvalue magainstmthosemofmo
thermnations.
True False
11. The mIMFmismlessmcontroversialmthanmitsmsisterminstitution,mthe mWorldmB
ank.mTrue False
12. Inmreturnmformloans,mthe mIMFmrequiresmnation-
statesmtomadoptmspecificmeconomicmpoliciesmaimedmatmreturningmtheirmtroubledmeconomiesmtomstability
m andm growth.
True False
13. Foreignmdirectminvestmentm(FDI)moccursmwhenmamfirmminvestsmresourcesminmbusinessmactivi
tiesmoutside mitsmhome mcountry.
True False
14. AftermWorldmWarmII,mthe madvancedmnationsmofmthemWestmcommittedmthemselvesmtomincrea
singmbarriersmtomthe mfree mflowmofmgoods,mservices,mandmcapitalmbetweenmnations.
True False
15. The mUruguaymRound,mheldmundermthemumbrellamofmGATT,mextendedmGATTmtomcovermservicesmas
m wellm asm manufactured m goods.
True False
16. The mloweringmofmtrade mandminvestmentmbarriersmallowsmfirmsmtombasemproductionmatmthemopt
imalmlocationmformthatmactivity.
True False
17. Asmamresultmof minternationalmtrade,mthe meconomiesmof mthe mworld’smnation-
statesmare mbecomingmlessmintertwined.
True False
18. The mglobalizationmof mmarketsmandmproductionmandmthemresultingmgrowthmof mworldmtrade,mfor
eignmdirectminvestment,mandmimportsmallmimplymthatmfirmsmare mfindingmitmeasiermtomprotectmthemselv
esmfrom
the mattackmof mforeignmcompetitors.
,True False
19. Containerizationmhasmrevolutionizedmthemtransportationmbusiness,msignificantlymloweringmthemco
stsmof mshippingmgoodsmovermlongmdistances.
True False
20. While madvancesminmtelecommunicationsmare mcreatingmamglobalmaudience,madvance
sminmtransportationmare mcreatingmamglobalmvillage.
True False
21. The mrealmcostsmofminformationmprocessingmandmcommunicationmhavemfallenmdramaticallyminmthem
pastmtwomdecades.
True False
22. The mInternetmhasmbeenmammajormforce mfacilitatingminternationalmtrademinmservi
ces.mTrue False
23. Countriesmthatmmarkedlymincreasedmtheirmshare mofmworldmoutputmfromm1960mtom2010mincl
udedmGermany,mFrance,mandmthe mUnitedmKingdom.
True False
24. The mUnitedmStatesmaccountedmformamsignificantlymlargermshare mofmthemworldmeconomyminm2011mt
hanmitmdidminmthe m1960's.
True False
25. Beginningminmthe m1970s,mEuropeanmandmJapanese mfirmsmbeganmtomshiftmlabor-
intensive mmanufacturingmoperationsmfrommdevelopingmnationsmtomtheirmhomemcountriesmwheremlab
ormcostsmwere mlower.
True False
26. The mstockmofmforeignmdirectminvestmentmrefersmtomthe mtotalmcumulative mvaluemofmfor
eignminvestmentsminmamcountry.
True False
27. Throughoutmthem1990s,mthe mamountmofminvestmentmdirectedmatmbothmdevelopedmandmdevelo
pingmnationsmincreasedmdramatically
True False
, 28. Amongmdevelopingmnations,mthemlargestmrecipientmofmforeignmdirectminvestmentmhasmbeenmCh
ina.mTrue m m False
29. Althoughmmostminternationalmtrademandminvestmentmismstillmconductedmbymlargemfirms,mm
anymmedium-
m sizem andm smallm businessesm arembecomingm increasinglym involvedm inm internationalm tradem andm inve
stment.
True False
30. The mrise mofmthemInternetmismincreasingmthembarriersmthatmsmallmfirmsmface minmbuildingminternat
ionalmsales.
True False
31. ManymofmthemformermCommunistmnationsmofmEuropemandmAsiamseemmtomsharemamcommitme
ntmtomdemocraticmpoliciesmandmfree mmarketmeconomies.
True False
32. Inmthe mpastmquartermcentury,mthe mvolume mof mcross-
bordermtrade mandminvestmentmhasmbeenmgrowingmlessmrapidlymthanmglobalmoutput.
True False
33. One mconcernmfrequentlymvoicedmbymglobalizationmopponentsmismthatmfallingmbarriersmtominternati
onalmtrade mdestroymmanufacturingmjobsminmwealthymadvancedmeconomiesmsuchmasmthe mUnitedmStatesman
dm westernmEurope.
True False
34. Itmismpossible mthatmeconomicmgrowthminmdevelopedmnationsmhasmoffsetmthe mfallminmthemsha
re mof mnationalmincome menjoyedmbymunskilledmworkers,mraisingmtheirmlivingmstandards.
True False
35. One mconcernmofmglobalizationmopponentsmismthatmitmunderminesmthe minfluence mofmsupranati
onalmorganizationsmandmpromotesmthe msovereigntymof mindividualmnation-states.
True False
36. Inmgeneral,masmcountriesmgetmricher,mtheymenactmtoughermenvironmentalmandmlabormregulations.
