TEST BANK – Global Business 5th Edition by Mike W. Peng | Chapters 1–17 Complete Questions & Answers 2025/2026

Test Bank for
Global Business, 5th Edition Mike W. Peng
Chapter1-17

Chapter 1

1. A multinational enterprise is a firm that engages in foreign direct investment by directly investing in, controlling, and
managing value-added activities in other countries.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: International Business and Global Business
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-01 - LO: 01-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Creation of Value
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

2. The term ―emerging markets‖ refers to the fastest-growing developing economies.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Globalization and Semiglobalization
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-04 - LO: 01-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

3. Gross domestic product (GDP) is the sum of value added by resident firms, households, and governments operating in
an economy.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Moderate
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,REFERENCES: Global Business and Globalization at a Crossroads
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-05 - LO: 01-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

4. The majority of the global GDP is contributed by the emerging markets.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Moderate
REFERENCES: Global Business and Globalization at a Crossroads
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-05 - LO: 01-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

5. Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and services different
currencies can purchase.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Global Business and Globalization at a Crossroads
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-05 - LO: 01-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

6. Purchasing power parity (PPP) is calculated as the sum of value added by resident firms, households, and governments
operating in an economy.
a. True
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, b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Global Business and Globalization at a Crossroads
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-05 - LO: 01-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

7. Global business includes both international and domestic business activities.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: International Business and Global Business
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-01 - LO: 01-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

8. International business can be defined as the investment in, controlling, and managing value-added activities in other
countries.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: International Business and Global Business
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-01 - LO: 01-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM

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, DATE MODIFIED: 3/5/2022 11:24 AM

9. On the global economic pyramid, the Triad refers to developed economies consisting of North America, Europe, and
Japan.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Global Business and Globalization at a Crossroads
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-05 - LO: 01-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Creation of Value
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

10. All the countries of the BRIC belong to the top tier of the global economic pyramid.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Globalization and Semiglobalization
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-04 - LO: 01-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

11. The second tier of the global economic pyramid is made up of countries with a per capita annual income of more than
$20,000.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Globalization and Semiglobalization
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-04 - LO: 01-04
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