TEST BANK For Global Business
Today,
12th Edition By Charles Hill Chapters 1 -
17
,Chapter One Globalization
PART TWO National Differences
Chapter Two National Differences in Political, Economic, and Legal
Systems Chapter Three National Differences in Economic
Development
Chapter Four Differences in Culture
Chapter Five Ethics, Corporate Social Responsibility, and Sustainability
PART THREE The Global Trade and Investment
Environment Chapter Six International Trade Theory
Chapter Seven Government Policy and International
Trade Chapter Eight Foreign Direct Investment
Chapter Nine Regional Economic Integration
PART FOUR The Global Monetary System
Chapter Ten The Foreign Exchange Market
Chapter Eleven The International Monetary System
PART FIVE The Strategy of International Business
Chapter Twelve The Strategy of International
Business
Chapter Thirteen Entering Developed and Emerging Markets
PART SIX International Business Functions
Chapter Fourteen Exporting, Importing, and Countertrade
Chapter Fifteen Global Production and Supply Chain
Management Chapter Sixteen Global Marketing and
Business Analytics
Chapter Seventeen Global Human Resource Management
,Answers are at the end of each chapter
Chapter 01
Globalization True /
False Questions
1. As a result of globalization, we have been moving toward a world in which
national economies are relatively self-contained entities7
True False
2. By offering the same basic product worldwide, firms help to create a
global market7 True False
3. A company has to be the size of a multinational giant to facilitate, and
benefit from, the globalization of markets7
True False
4. As a result of globalization, companies rarely need to customize marketing
strategies, product features, and operating practices in different countries7
True False
5. Globalization has resulted in greater uniformity replacing diversity across
national markets7 True False
6. As firms follow each other around the world, they bring with them many of
the assets that served them well in other national markets7 Thus, greater diversity
replaces uniformity7
True False
7. Substantial impediments, such as barriers to foreign direct investment, make it
difficult for firms to achieve the optimal dispersion of their productive activities to
locations around the globe7
True False
8. The World Trade Organization, the International Monetary Fund and its sister
institution the World Bank, and the United Nations were all created by voluntary
agreement between individual nation- states7
True False
, 9. The International Monetary Fund and the World Bank were both created in 1944
by 44 nations that met at Bretton Woods, New Hampshire7
True False
10. The WTO is seen as the lender of last resort to nation-states whose economies
are in turmoil and whose currencies are losing value against those of other nations7
True False
11. The IMF is less controversial than its sister institution, the
World Bank7 True False
12. In return for loans, the IMF requires nation-states to adopt specific economic
policies aimed at returning their troubled economies to stability and growth7
True False
13. Foreign direct investment (FDI) occurs when a firm invests resources in
business activities outside its home country7
True False
14. After World War II, the advanced nations of the West committed themselves
to increasing barriers to the free flow of goods, services, and capital between
nations7
True False
15. The Uruguay Round, held under the umbrella of GATT, extended GATT to cover
services as well as manufactured goods7
True False
16. The lowering of trade and investment barriers allows firms to base production
at the optimal location for that activity7
True False
17. As a result of international trade, the economies of the world’s nation-states are
becoming less intertwined7
True False
18. The globalization of markets and production and the resulting growth of world
trade, foreign direct investment, and imports all imply that firms are finding it easier to
protect themselves from
the attack of foreign competitors7
