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
N
REFERENCES: International Business and Global Business
QUESTION TYPE: True / False
HAS VARIABLES: False
U
LEARNING OBJECTIVES: GLOB.PENG.05.01-01 - LO: 01-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
R
STATE STANDARDS: United States - AK - DISC: Creation of Value
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
SE
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
D
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Globalization and Semiglobalization
O
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-04 - LO: 01-04
C
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Remember
S
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
Copyright Cengage Learning. Powered by Cognero. Page 1
,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
N
b. False
ANSWER: False
POINTS: 1
U
DIFFICULTY: Difficulty: Moderate
REFERENCES: Global Business and Globalization at a Crossroads
QUESTION TYPE: True / False
R
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-05 - LO: 01-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
SE
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
D
currencies can purchase.
a. True
b. False
O
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
C
REFERENCES: Global Business and Globalization at a Crossroads
QUESTION TYPE: True / False
HAS VARIABLES: False
S
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
Copyright Cengage Learning. Powered by Cognero. Page 2
, 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
N
DATE MODIFIED: 3/5/2022 11:24 AM
7. Global business includes both international and domestic business activities.
U
a. True
b. False
ANSWER: True
R
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: International Business and Global Business
SE
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
D
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM
O
8. International business can be defined as the investment in, controlling, and managing value-added activities in other
countries.
a. True
C
b. False
ANSWER: False
POINTS: 1
S
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
Copyright Cengage Learning. Powered by Cognero. Page 3
, 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
N
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
U
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM
R
10. All the countries of the BRIC belong to the top tier of the global economic pyramid.
a. True
SE
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Globalization and Semiglobalization
QUESTION TYPE: True / False
D
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-04 - LO: 01-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
O
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
C
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
S
$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
Copyright Cengage Learning. Powered by Cognero. Page 4
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