Exam (elaborations)
Global Business 4th Edition By Mike Peng (Test Bank)
- Course
- Institution
Global Business 4e Mike Peng (Test Bank) Global Business 4e Mike Peng (Test Bank)
[Show more]
Content preview
(Global Business 4e Mike Peng)(Test Bank, Correct Answer are marked with*)
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
2. The term “emerging markets” refers to all markets other than the developed
markets.
*a. True
b. False
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
4. Majority of the global GDP is contributed by the emerging markets.
a. True
*b. False
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
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
*b. False
7. Emerging markets contribute about 30% of global GDP without adjusting
for purchasing power parity (PPP).
*a. True
b. False
8. More than half the GDP produced by emerging markets comes from outside
the BRIC countries.
, a. True
*b. False
9. On the global economic pyramid, the Triad refers to developed economies
consisting of North America, Western Europe, and Japan.
*a. True
b. False
10. All the countries of the BRIC belong to the top tier of the global economic
pyramid.
a. True
*b. False
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
12. The emerging markets of the world are placed at the top of the global
economic pyramid.
a. True
*b. False
13. The global economic pyramid does not represent countries that have a
per capita annual income of less than $2,000.
a. True
*b. False
14. The term "base of the pyramid" represents economies where individuals
make less than $2,000 a year.
*a. True
b. False
15. Reverse innovations are innovations that are adopted first in the
Triad-based multinationals and then diffused around the world.
a. True
*b. False
16. Reverse innovation is an example of bottom up innovation.
, *a. True
b. False
17. The Group of 20 includes the European Union (EU)—a regional bloc.
*a. True
b. False
18. Globalization has driven up the salaries of low-level jobs.
a. True
*b. False
19. An international premium is a significant pay raise awarded to expatriate
employees working abroad.
*a. True
b. False
20. New York has more Fortune Global 500 company headquarters than any other
city.
a. True
*b. False
21. Overall, the focus on firm performance around the globe defines the field
of global business more than anything else.
*a. True
b. False
22. An institution-based view suggests that the success and failure of firms
are enabled and constrained by business norms of the host nation.
*a. True
b. False
23. Formal institutions include laws, regulations, and rules.
*a. True
b. False
24. The institution-based view places emphasis on the external factors that
could affect a firm.
, *a. True
b. False
25. Focusing on a firm’s internal resources and capabilities is the main
emphasis of the resource-based view.
*a. True
b. False
26. Liability of foreignness is the inherent disadvantage experienced by
foreign firms in host countries because of their non-native status.
*a. True
b. False
27. Most opponents of globalization view globalization as a long-run
historical evolution since trade began.
a. True
*b. False
28. According to the pendulum view of globalization, globalization is a
relatively new phenomenon triggered by the information revolution of early
1990s.
a. True
*b. False
29. Scenario planning is a technique to prepare and plan exclusively for
high risk scenarios.
a. True
*b. False
30. Standardization of markets would lead to a state of semiglobalization.
a. True
*b. False
31. Semiglobalization is primarily caused by the practice of total
isolation.
a. True
*b. False
32. The current state of globalization around the world is that of
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tutorsection. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now