,TESTBANK for Global Strategy , 5th Edition Mike
Peng
Notes
1- The file is chapter after chapter.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
1. Studying global strategy is considered highly important for the consulting industry but
optional for careers outside consulting.
a. True
b. False
ANSWER: False
2. The company Zoom employs a strategy of both planned deliberate actions and unplanned
emergent activities.
a. True
b. False
ANSWER: True
3. A multinational enterprise rarely engages in foreign direct investment.
a. True
b. False
ANSWER: False
4. A typical “one-size-fits-all” strategy remains the most effective for firms “going global.”
a. True
b. False
ANSWER: False
5. Researchers are not sure why firms in emerging economies seem to suffer from lower-quality
management and how they can catch up.
a. True
b. False
ANSWER: True
6. In the global economic pyramid, the top tier includes the 5 billion people whose annual per
capita income is less than US$2,000.
a. True
b. False
ANSWER: False
7. Global strategy has, in the past, been primarily focused on markets that consist of those people
who are in the bottom tier of the global economic pyramid, as they make up the largest portion of
the population and have the most buying power.
a. True
b. False
ANSWER: False
8. A SWOT analysis resonates well with Sun Tzu’s teachings.
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
a. True
b. False
ANSWER: True
9. If a strategy (theory) is truly successful, it will work not just for one firm but for all others as
well.
a. True
b. False
ANSWER: False
10. If done well, a SWOT analysis will turn unrealized strategies into intended strategies.
a. True
b. False
ANSWER: False
11. The two primary purposes of a theory are to explain the past and predict the future.
a. True
b. False
ANSWER: True
12. The concept of strategy as integration means that strategy is a combination of planned
deliberate actions and unplanned emergent activities.
a. True
b. False
ANSWER: True
13. The quality of management practices around the world is higher for more developed
economies than emerging economies.
a. True
b. False
ANSWER: True
14. A strategy tripod represents a comprehensive view of strategy consisting of three leading
perspectives.
a. True
b. False
ANSWER: True
15. The three key perspectives of strategy as a discipline include industry-based, resource-based,
and institution-based views.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
ANSWER: True
16. Companies use balanced scorecards to summarize business information into a smaller
number of critical factors.
a. True
b. False
ANSWER: True
17. Determining the scope of the firm involves not only growth of the firm but also contraction.
a. True
b. False
ANSWER: True
18. The text stresses that realism indicates that all companies should go global and endeavor to
do so as quickly as possible in view of the vast opportunities that exist.
a. True
b. False
ANSWER: False
19. The industry-based view posits that the degree of competitiveness in an industry largely
determines firm performance.
a. True
b. False
ANSWER: False
20. The resource-based view suggests that firm-specific capabilities that differentiate successful
companies from floundering ones.
a. True
b. False
ANSWER: True
21. The institution-based view argues that industry- and firm-level conditions alone determine
why firms differ in strategy.
a. True
b. False
ANSWER: False
22. The more traditional meaning of global strategy consists of offering standardized services
and products on a worldwide basis.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
23. The textbook’s goal is to approach global strategy as the way that both domestic firms and
foreign entrants compete successfully.
a. True
b. False
ANSWER: True
24. In discussions of globalization, a case can be made for both extensive cultural integration as
well as the promotion of inequality.
a. True
b. False
ANSWER: True
25. Although global strategy is associated with business, the term globalization can also refer to
the closer integration of countries and peoples of the world.
a. True
b. False
ANSWER: True
26. The earliest MNEs existed in some form thousands of years ago in the Assyrian, Phoenician,
and Roman empires.
a. True
b. False
ANSWER: True
27. Reverse innovation follows the traditional flow from developed to developing economies.
a. True
b. False
ANSWER: False
28. During the second half of the twentieth century, Hong Kong, Singapore, South Korea, and
Taiwan, refused to participate in the global economy and became known as the “Four Toothless
Tigers.”
a. True
b. False
ANSWER: False
29. During the 1990s there was an increase in both global trade and opposition to global trade.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
30. Semiglobalization involves doing business in either the Northern or Southern Hemisphere but
not both.
a. True
b. False
ANSWER: False
31. The recession that began in 2008 demonstrated just how interconnected the global economy
had become.
a. True
b. False
ANSWER: True
32. The pendulum view of globalization explains the forces that increase and decrease the extent
of globalization over time.
a. True
b. False
ANSWER: True
33. China in the 1970s is an example of an emerging economy.
a. True
b. False
ANSWER: True
34. Standardization in markets is the main goal of semiglobalization.
a. True
b. False
ANSWER: False
35. While some may argue that globalization is currently in retreat, trade in services across
national boundaries, and specifically digital services, is growing.
a. True
b. False
ANSWER: True
36. It is advantageous for an industry to be designated "strategic," as that often means it can qualify for
government subsidies and bailouts.
a. True
b. False
ANSWER: True
37. The need for face masks as a result of the 2020 coronavirus outbreak demonstrated how
industries that were once thought insignificant can quickly be designated as "strategic."
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
a. True
b. False
ANSWER: True
38. While a slack-laden corporation may become inefficient, some level of organizational slack
can be valuable to protect against external shocks.
a. True
b. False
ANSWER: True
39. The 2020 coronavirus (COVID-19) pandemic is an example of a black swan event.
a. True
b. False
ANSWER: True
40. The limitation of scenario planning is that it can be used to plan for only expected events.
a. True
b. False
ANSWER: False
41. Multinational enterprises (MNEs) are firms that
a. engage in foreign direct investment (FDI).
b. delegate control of value-adding activities in other countries.
c. standardize strategies across all business units.
d. rely on the “one-size-fits-all stragegy.”
ANSWER: a
42. Which of the following best describes foreign direct investment (FDI)?
a. A firm’s direct investment in production and/or service activities abroad
b. The purchases of foreign securities by people within the United States
c. The purchases of U.S. securities by people from other countries
d. Avoidance of brokers or other financial intermediaries when making foreign
investments
ANSWER: a
43. The crafting of a firm's strategy is known as strategy
a. implementation.
b. integration.
c. formulation.
d. intention.
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
44. What country was added when the label BRIC was changed to BRICS?
a. Sweden
b. South Africa
c. Switzerland
d. Singapore
ANSWER: b
45. Which of the following statements accurately reflects recent research in emerging economies
(or emerging markets)?
a. Most firms that are part of conglomerates experience lower profitability than
independent firms.
b. Conglomeration provides measurable performance benefits.
c. There is a relatively negative link between conglomeration as a strategy and firm
performance.
d. A majority of firms in emerging economies are currently trying to divest and
downsize.
ANSWER: b
46. BRIC refers to
a. Brazil, Russia, India, and China.
b. Bolivia, Romania, Indonesia, and Columbia.
c. Bulgaria, Romania, Italy, and Canada.
d. Bahrain, Russia, Iran, and China.
ANSWER: a
47. Which of the following best reflects the reality of how MNEs adapt their "global"
strategies?
a. Zoom broke records in numbers of users in March and April of 2020.
b. The Volkswagen Golf and Ford Mondeo are popular cars throughout the world.
c. Coca-Cola used a set of "world commercials" focused on a polar bear character.
d. The recipe for Coke Classic is different around the world.
ANSWER: d
48. The notion of global strategy as one-size-fits-all
a. adds to local responsiveness.
b. provides the best way for companies to compete with domestic rivals as well as
international rivals.
c. fails to adequately accommodate firms in emerging economies.
d. looks primarily at how MNEs compete with their domestic rivals in foreign countries.
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
49. When looking at the global economy as a pyramid, MNEs
a. traditionally believed no money was to be made in base of the pyramid markets.
b. are based almost exclusively in the top tier.
c. face little competition from emerging markets at any level of the pyramid.
d. tend to target the population at the base of the pyramid.
ANSWER: a
50. GE developed a portable electrocardiograph machine originally for doctors in India and China that is
now being sold in the United States at a significantly lower price than comparable products. This product
is an example of
a. foreign direct investment.
b. reverse innovation.
c. a black swan strategy.
d. intended strategy.
ANSWER: b
51. MNEs have found that
a. the strategy that works in their domestic market will most likely work best in foreign
markets.
b. tailoring strategies for particular markets is costly and often ineffective.
c. it is ineffective to design advertising that appeals to worldwide values and interests.
d. strategies targeted to emerging markets work best in developed markets as well.
ANSWER: c
52. It is worthwhile to study global strategy, even if one doesn't desire to become a consultant, because
approximately _____ million people worldwide are employed by foreign-owned firms, including _____
Americans.
a. 18; 1
b. 18; 7
c. 80; 7
d. 80; 18
ANSWER: c
53. Which of the following statements applies to the concept of strategy?
a. It dates back to 500 B.C. and the work of the strategist Sun Tzu of China.
b. The first book about it was authored by Napoleon regarding military tactics.
c. In business competition its principles distinctly differ from military operations.
d. It is a fairly recent concept.
ANSWER: a
54. A hallmark of theory building and development is
a. the outcome of a test.
Copyright Cengage Learning. Powered by Cognero. Page 8
Peng
Notes
1- The file is chapter after chapter.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
1. Studying global strategy is considered highly important for the consulting industry but
optional for careers outside consulting.
a. True
b. False
ANSWER: False
2. The company Zoom employs a strategy of both planned deliberate actions and unplanned
emergent activities.
a. True
b. False
ANSWER: True
3. A multinational enterprise rarely engages in foreign direct investment.
a. True
b. False
ANSWER: False
4. A typical “one-size-fits-all” strategy remains the most effective for firms “going global.”
a. True
b. False
ANSWER: False
5. Researchers are not sure why firms in emerging economies seem to suffer from lower-quality
management and how they can catch up.
a. True
b. False
ANSWER: True
6. In the global economic pyramid, the top tier includes the 5 billion people whose annual per
capita income is less than US$2,000.
a. True
b. False
ANSWER: False
7. Global strategy has, in the past, been primarily focused on markets that consist of those people
who are in the bottom tier of the global economic pyramid, as they make up the largest portion of
the population and have the most buying power.
a. True
b. False
ANSWER: False
8. A SWOT analysis resonates well with Sun Tzu’s teachings.
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
a. True
b. False
ANSWER: True
9. If a strategy (theory) is truly successful, it will work not just for one firm but for all others as
well.
a. True
b. False
ANSWER: False
10. If done well, a SWOT analysis will turn unrealized strategies into intended strategies.
a. True
b. False
ANSWER: False
11. The two primary purposes of a theory are to explain the past and predict the future.
a. True
b. False
ANSWER: True
12. The concept of strategy as integration means that strategy is a combination of planned
deliberate actions and unplanned emergent activities.
a. True
b. False
ANSWER: True
13. The quality of management practices around the world is higher for more developed
economies than emerging economies.
a. True
b. False
ANSWER: True
14. A strategy tripod represents a comprehensive view of strategy consisting of three leading
perspectives.
a. True
b. False
ANSWER: True
15. The three key perspectives of strategy as a discipline include industry-based, resource-based,
and institution-based views.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
ANSWER: True
16. Companies use balanced scorecards to summarize business information into a smaller
number of critical factors.
a. True
b. False
ANSWER: True
17. Determining the scope of the firm involves not only growth of the firm but also contraction.
a. True
b. False
ANSWER: True
18. The text stresses that realism indicates that all companies should go global and endeavor to
do so as quickly as possible in view of the vast opportunities that exist.
a. True
b. False
ANSWER: False
19. The industry-based view posits that the degree of competitiveness in an industry largely
determines firm performance.
a. True
b. False
ANSWER: False
20. The resource-based view suggests that firm-specific capabilities that differentiate successful
companies from floundering ones.
a. True
b. False
ANSWER: True
21. The institution-based view argues that industry- and firm-level conditions alone determine
why firms differ in strategy.
a. True
b. False
ANSWER: False
22. The more traditional meaning of global strategy consists of offering standardized services
and products on a worldwide basis.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
23. The textbook’s goal is to approach global strategy as the way that both domestic firms and
foreign entrants compete successfully.
a. True
b. False
ANSWER: True
24. In discussions of globalization, a case can be made for both extensive cultural integration as
well as the promotion of inequality.
a. True
b. False
ANSWER: True
25. Although global strategy is associated with business, the term globalization can also refer to
the closer integration of countries and peoples of the world.
a. True
b. False
ANSWER: True
26. The earliest MNEs existed in some form thousands of years ago in the Assyrian, Phoenician,
and Roman empires.
a. True
b. False
ANSWER: True
27. Reverse innovation follows the traditional flow from developed to developing economies.
a. True
b. False
ANSWER: False
28. During the second half of the twentieth century, Hong Kong, Singapore, South Korea, and
Taiwan, refused to participate in the global economy and became known as the “Four Toothless
Tigers.”
a. True
b. False
ANSWER: False
29. During the 1990s there was an increase in both global trade and opposition to global trade.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
30. Semiglobalization involves doing business in either the Northern or Southern Hemisphere but
not both.
a. True
b. False
ANSWER: False
31. The recession that began in 2008 demonstrated just how interconnected the global economy
had become.
a. True
b. False
ANSWER: True
32. The pendulum view of globalization explains the forces that increase and decrease the extent
of globalization over time.
a. True
b. False
ANSWER: True
33. China in the 1970s is an example of an emerging economy.
a. True
b. False
ANSWER: True
34. Standardization in markets is the main goal of semiglobalization.
a. True
b. False
ANSWER: False
35. While some may argue that globalization is currently in retreat, trade in services across
national boundaries, and specifically digital services, is growing.
a. True
b. False
ANSWER: True
36. It is advantageous for an industry to be designated "strategic," as that often means it can qualify for
government subsidies and bailouts.
a. True
b. False
ANSWER: True
37. The need for face masks as a result of the 2020 coronavirus outbreak demonstrated how
industries that were once thought insignificant can quickly be designated as "strategic."
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
a. True
b. False
ANSWER: True
38. While a slack-laden corporation may become inefficient, some level of organizational slack
can be valuable to protect against external shocks.
a. True
b. False
ANSWER: True
39. The 2020 coronavirus (COVID-19) pandemic is an example of a black swan event.
a. True
b. False
ANSWER: True
40. The limitation of scenario planning is that it can be used to plan for only expected events.
a. True
b. False
ANSWER: False
41. Multinational enterprises (MNEs) are firms that
a. engage in foreign direct investment (FDI).
b. delegate control of value-adding activities in other countries.
c. standardize strategies across all business units.
d. rely on the “one-size-fits-all stragegy.”
ANSWER: a
42. Which of the following best describes foreign direct investment (FDI)?
a. A firm’s direct investment in production and/or service activities abroad
b. The purchases of foreign securities by people within the United States
c. The purchases of U.S. securities by people from other countries
d. Avoidance of brokers or other financial intermediaries when making foreign
investments
ANSWER: a
43. The crafting of a firm's strategy is known as strategy
a. implementation.
b. integration.
c. formulation.
d. intention.
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
44. What country was added when the label BRIC was changed to BRICS?
a. Sweden
b. South Africa
c. Switzerland
d. Singapore
ANSWER: b
45. Which of the following statements accurately reflects recent research in emerging economies
(or emerging markets)?
a. Most firms that are part of conglomerates experience lower profitability than
independent firms.
b. Conglomeration provides measurable performance benefits.
c. There is a relatively negative link between conglomeration as a strategy and firm
performance.
d. A majority of firms in emerging economies are currently trying to divest and
downsize.
ANSWER: b
46. BRIC refers to
a. Brazil, Russia, India, and China.
b. Bolivia, Romania, Indonesia, and Columbia.
c. Bulgaria, Romania, Italy, and Canada.
d. Bahrain, Russia, Iran, and China.
ANSWER: a
47. Which of the following best reflects the reality of how MNEs adapt their "global"
strategies?
a. Zoom broke records in numbers of users in March and April of 2020.
b. The Volkswagen Golf and Ford Mondeo are popular cars throughout the world.
c. Coca-Cola used a set of "world commercials" focused on a polar bear character.
d. The recipe for Coke Classic is different around the world.
ANSWER: d
48. The notion of global strategy as one-size-fits-all
a. adds to local responsiveness.
b. provides the best way for companies to compete with domestic rivals as well as
international rivals.
c. fails to adequately accommodate firms in emerging economies.
d. looks primarily at how MNEs compete with their domestic rivals in foreign countries.
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01: Strategizing Around the Globe
TEST BANK
49. When looking at the global economy as a pyramid, MNEs
a. traditionally believed no money was to be made in base of the pyramid markets.
b. are based almost exclusively in the top tier.
c. face little competition from emerging markets at any level of the pyramid.
d. tend to target the population at the base of the pyramid.
ANSWER: a
50. GE developed a portable electrocardiograph machine originally for doctors in India and China that is
now being sold in the United States at a significantly lower price than comparable products. This product
is an example of
a. foreign direct investment.
b. reverse innovation.
c. a black swan strategy.
d. intended strategy.
ANSWER: b
51. MNEs have found that
a. the strategy that works in their domestic market will most likely work best in foreign
markets.
b. tailoring strategies for particular markets is costly and often ineffective.
c. it is ineffective to design advertising that appeals to worldwide values and interests.
d. strategies targeted to emerging markets work best in developed markets as well.
ANSWER: c
52. It is worthwhile to study global strategy, even if one doesn't desire to become a consultant, because
approximately _____ million people worldwide are employed by foreign-owned firms, including _____
Americans.
a. 18; 1
b. 18; 7
c. 80; 7
d. 80; 18
ANSWER: c
53. Which of the following statements applies to the concept of strategy?
a. It dates back to 500 B.C. and the work of the strategist Sun Tzu of China.
b. The first book about it was authored by Napoleon regarding military tactics.
c. In business competition its principles distinctly differ from military operations.
d. It is a fairly recent concept.
ANSWER: a
54. A hallmark of theory building and development is
a. the outcome of a test.
Copyright Cengage Learning. Powered by Cognero. Page 8
