TEST BANK For Global Business Today,
12th Edition By Charles Hill Chapters 1 - 17
,ChapteryOneyGlobalizationy
PARTyTWOyNationalyDifferences
ChapteryTwoyNationalyDifferencesyinyPolitical,yEconomic,yandyLegalySystemsy
ChapteryThreeyNationalyDifferencesyinyEconomicyDevelopmenty
ChapteryFouryDifferencesyinyCulturey
ChapteryFiveyEthics,yCorporateySocialyResponsibility,yandySustainabilityy
PARTyTHREEyTheyGlobalyTradeyandyInvestmentyEnvironment
ChapterySixyInternationalyTradeyTheoryy
ChapterySevenyGovernmentyPolicyyandyInternationalyTradey
ChapteryEightyForeignyDirectyInvestmenty
ChapteryNineyRegionalyEconomicyIntegrationy
PARTyFOURyTheyGlobalyMonetaryySystem
ChapteryTenyTheyForeignyExchangeyMarkety
ChapteryElevenyTheyInternationalyMonetaryySystemy
PARTyFIVEyTheyStrategyyofyInternationalyBusiness
ChapteryTwelveyTheyStrategyyofyInternationalyBusinessy
ChapteryThirteenyEnteringyDevelopedyandyEmergingyMarketsy
PARTySIXyInternationalyBusinessyFunctions
ChapteryFourteenyExporting,yImporting,yandyCountertradey
ChapteryFifteenyGlobalyProductionyandySupplyyChainyManagementy
ChapterySixteenyGlobalyMarketingyandyBusinessyAnalyticsy
ChapterySeventeenyGlobalyHumanyResourceyManagementyy
,Answersyareyatytheyendyofyeachychapter
Chaptery01yGlobalizationy
Truey/yFalseyQuestions
1. Asyayresultyofyglobalization,yweyhaveybeenymovingytowardyayworldyinywhichynationalyeconomie
syareyrelativelyyself-containedyentities.
True False
2. Byyofferingytheysameybasicyproductyworldwide,yfirmsyhelpytoycreateyayglobalymarket
.yTrue False
3. Aycompanyyhasytoybeytheysizeyofyaymultinationalygiantytoyfacilitate,yandybenefityfrom,yth
eyglobalizationyofymarkets.
True False
4. Asyayresultyofyglobalization,ycompaniesyrarelyyneedytoycustomizeymarketingystrategies,yproduc
tyfeatures,yandyoperatingypracticesyinydifferentycountries.
True False
5. Globalizationyhasyresultedyinygreateryuniformityyreplacingydiversityyacrossynationalymarkets
.yTrue False
6. Asyfirmsyfollowyeachyotheryaroundytheyworld,ytheyybringywithythemymanyyofytheyassetsytha
tyservedythemywellyinyotherynationalymarkets.yThus,ygreaterydiversityyreplacesyuniformity.
True False
7. Substantialyimpediments,ysuchyasybarriersytoyforeignydirectyinvestment,ymakeyitydifficultyforyfirm
sytoyachieveytheyoptimalydispersionyofytheiryproductiveyactivitiesytoylocationsyaroundytheyglobe.
True False
8. TheyWorldyTradeyOrganization,ytheyInternationalyMonetaryyFundyandyitsysisteryinstitutionyth
eyWorldyBank,yandytheyUnitedyNationsywereyallycreatedybyyvoluntaryyagreementybetweenyindividualy
nation-ystates.
True False
, 9. TheyInternationalyMonetaryyFundyandytheyWorldyBankywereybothycreatedyiny1944ybyy44ynation
sythatymetyatyBrettonyWoods,yNewyHampshire.
True False
10. TheyWTOyisyseenyasytheylenderyofylastyresortytoynation-
statesywhoseyeconomiesyareyinyturmoilyandywhoseycurrenciesyareylosingyvalueyagainstythoseyofyothery
nations.
True False
11. TheyIMFyisylessycontroversialythanyitsysisteryinstitution,ytheyWorldyBank
.yTrue False
12. Inyreturnyforyloans,ytheyIMFyrequiresynation-
statesytoyadoptyspecificyeconomicypoliciesyaimedyatyreturningytheirytroubledyeconomiesytoystabilityyand
ygrowth.
True False
13. Foreignydirectyinvestmenty(FDI)yoccursywhenyayfirmyinvestsyresourcesyinybusinessyactivitie
syoutsideyitsyhomeycountry.
True False
14. AfteryWorldyWaryII,ytheyadvancedynationsyofytheyWestycommittedythemselvesytoyincreasin
gybarriersytoytheyfreeyflowyofygoods,yservices,yandycapitalybetweenynations.
True False
15. TheyUruguayyRound,yheldyunderytheyumbrellayofyGATT,yextendedyGATTytoycoveryservicesyasywe
llyasymanufacturedygoods.
True False
16. Theyloweringyofytradeyandyinvestmentybarriersyallowsyfirmsytoybaseyproductionyatytheyoptim
alylocationyforythatyactivity.
True False
17. Asyayresultyofyinternationalytrade,ytheyeconomiesyofytheyworld’synation-
statesyareybecomingylessyintertwined.
True False
18. Theyglobalizationyofymarketsyandyproductionyandytheyresultingygrowthyofyworldytrade,yforeig
nydirectyinvestment,yandyimportsyallyimplyythatyfirmsyareyfindingyityeasierytoyprotectythemselvesyfrom
theyattackyofyforeignycompetitors.
