C211 CH 1, GLOBALIZING BUSINESS QUESTIONS WITH VERIFIED
ANSWERS & RATIONALES (COMPLETE EXAM PREP MATERIAL)
From an institution-based view, a government's legal requirement for a business to pay taxes would be
an example of:
a. a political resource.
b. the influence of a formal institution.
c. the influence of an informal institution.
d. a core perspective. - CORRECT ANSWERS-b. the influence of a formal institution.
What is the definition of a resource-based view of global business?
a. The resource-based view focuses on a firm's external resources and capabilities.
b. The resource-based view focuses on a firm's internal resources and capabilities.
c. None of these answers
d. The resource-based view focuses on a firm's internal and external resources and capabilities. -
CORRECT ANSWERS-b. The resource-based view focuses on a firm's internal resources and capabilities.
The Group of 20 (G-20) is:
a. a group of 20 countries whose leaders meet to solve global economic problems.
b. a group of 20 countries plus the European Union whose leaders meet to solve global economic
problems.
c. a group of 20 countries whose leaders meet to solve global hunger problems.
d. a group of 19 countries plus the European Union whose leaders meet to solve global economic
problems. - CORRECT ANSWERS-d. a group of 19 countries plus the European Union whose leaders
meet to solve global economic problems.
The liability of foreignness is:
,a. the inherent advantage that firms experience in home countries because of their native status.
b. the inherent disadvantage that firms experience in home countries because of their native status.
c. the inherent advantage that foreign firms experience in host countries because of their non-native
status.
d. the inherent disadvantage that foreign firms experience in host countries because of their non-native
status. - CORRECT ANSWERS-d. the inherent disadvantage that foreign firms experience in host
countries because of their non-native status.
The fundamental question in global business is:
a. What determines the success and failure of firms' foreign entry?
b. What determines the success and failure of firms' new product globalization?
c. What determines the success and failure of firms around the globe?
d. What determines the success and failure of firms based in the US? - CORRECT ANSWERS-c. What
determines the success and failure of firms around the globe?
Globalization can be viewed as:
a. a new force sweeping through the world in recent times.
b. all of these
c. a long-run historical evolution since the dawn of human history.
d. a pendulum that swings from one extreme to another from time to time. - CORRECT ANSWERS-b. all
of these
Semi-globalization suggests:
a. that some countries fight against globalization and try to isolate themselves.
b. that there are barriers to market integration at borders which are high but not high enough to insulate
countries from each other completely.
c. that globalization is a passing trend.
, d. that the some economies prefer to buy local. - CORRECT ANSWERS-b. that there are barriers to
market integration at borders which are high but not high enough to insulate countries from each other
completely.
BRIC is an acronym for the emerging economies of:
a. Belgium, Romania, Indonesia, and Chile.
b. Brazil, Romania, India, and Chile.
c. Britain, Russia, India, and China.
d. Brazil, Russia, India, and China. - CORRECT ANSWERS-d. Brazil, Russia, India, and China.
The size of the global economy at the beginning of the 21st century (measured by total GDP) is
approximately:
a. $100 trillion.
b. $50 billion.
c. $60 trillion.
d. $250 billion. - CORRECT ANSWERS-c. $60 trillion.
What is the difference between the traditional definition of International Business and this text's
definition of global business?
a. In many cases, international business refers to domestic firms expanding into international (cross-
border) economic activities; here, global business focuses exclusively on domestic firms' strategies for
competing against foreign firms entering their home territory.
b. International business traditionally refers to firms that start in one country and then expand
internationally, while global business refers to firms that are designed to do business internationally from
the beginning.
c. There is no difference between the two terms; they can be used interchangeably.
d. In many cases, international business refers to domestic firms expanding into international (cross-
border) economic activities; here, global business also includes domestic firms' strategies for competing
against foreig - CORRECT ANSWERS-d. In many cases, international business refers to domestic firms
ANSWERS & RATIONALES (COMPLETE EXAM PREP MATERIAL)
From an institution-based view, a government's legal requirement for a business to pay taxes would be
an example of:
a. a political resource.
b. the influence of a formal institution.
c. the influence of an informal institution.
d. a core perspective. - CORRECT ANSWERS-b. the influence of a formal institution.
What is the definition of a resource-based view of global business?
a. The resource-based view focuses on a firm's external resources and capabilities.
b. The resource-based view focuses on a firm's internal resources and capabilities.
c. None of these answers
d. The resource-based view focuses on a firm's internal and external resources and capabilities. -
CORRECT ANSWERS-b. The resource-based view focuses on a firm's internal resources and capabilities.
The Group of 20 (G-20) is:
a. a group of 20 countries whose leaders meet to solve global economic problems.
b. a group of 20 countries plus the European Union whose leaders meet to solve global economic
problems.
c. a group of 20 countries whose leaders meet to solve global hunger problems.
d. a group of 19 countries plus the European Union whose leaders meet to solve global economic
problems. - CORRECT ANSWERS-d. a group of 19 countries plus the European Union whose leaders
meet to solve global economic problems.
The liability of foreignness is:
,a. the inherent advantage that firms experience in home countries because of their native status.
b. the inherent disadvantage that firms experience in home countries because of their native status.
c. the inherent advantage that foreign firms experience in host countries because of their non-native
status.
d. the inherent disadvantage that foreign firms experience in host countries because of their non-native
status. - CORRECT ANSWERS-d. the inherent disadvantage that foreign firms experience in host
countries because of their non-native status.
The fundamental question in global business is:
a. What determines the success and failure of firms' foreign entry?
b. What determines the success and failure of firms' new product globalization?
c. What determines the success and failure of firms around the globe?
d. What determines the success and failure of firms based in the US? - CORRECT ANSWERS-c. What
determines the success and failure of firms around the globe?
Globalization can be viewed as:
a. a new force sweeping through the world in recent times.
b. all of these
c. a long-run historical evolution since the dawn of human history.
d. a pendulum that swings from one extreme to another from time to time. - CORRECT ANSWERS-b. all
of these
Semi-globalization suggests:
a. that some countries fight against globalization and try to isolate themselves.
b. that there are barriers to market integration at borders which are high but not high enough to insulate
countries from each other completely.
c. that globalization is a passing trend.
, d. that the some economies prefer to buy local. - CORRECT ANSWERS-b. that there are barriers to
market integration at borders which are high but not high enough to insulate countries from each other
completely.
BRIC is an acronym for the emerging economies of:
a. Belgium, Romania, Indonesia, and Chile.
b. Brazil, Romania, India, and Chile.
c. Britain, Russia, India, and China.
d. Brazil, Russia, India, and China. - CORRECT ANSWERS-d. Brazil, Russia, India, and China.
The size of the global economy at the beginning of the 21st century (measured by total GDP) is
approximately:
a. $100 trillion.
b. $50 billion.
c. $60 trillion.
d. $250 billion. - CORRECT ANSWERS-c. $60 trillion.
What is the difference between the traditional definition of International Business and this text's
definition of global business?
a. In many cases, international business refers to domestic firms expanding into international (cross-
border) economic activities; here, global business focuses exclusively on domestic firms' strategies for
competing against foreign firms entering their home territory.
b. International business traditionally refers to firms that start in one country and then expand
internationally, while global business refers to firms that are designed to do business internationally from
the beginning.
c. There is no difference between the two terms; they can be used interchangeably.
d. In many cases, international business refers to domestic firms expanding into international (cross-
border) economic activities; here, global business also includes domestic firms' strategies for competing
against foreig - CORRECT ANSWERS-d. In many cases, international business refers to domestic firms
