Global Business International Edition 3rd Edition By Mike Peng – Test Bank
Chapter 1—Globalizing Business
TRUE/FALSE
- A multinational enterprise is a firm that engages in foreign direct investment by directly managing value-added activities in other countries.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: Creation of Value KEY: Bloom’s: Knowledge
- The term “emerging markets” refers to all markets other than the developed markets.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: Strategy KEY: Bloom’s: Knowledge
- Gross domestic product (GDP) is the sum of value added by resident firms, households, and governments operating in an economy.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom’s: Knowledge
- Majority of the global GDP is contributed by the emerging markets.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom’s: Knowledge
- Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and services different currencies can purchase.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom’s: Knowledge
- Purchasing power parity (PPP) is calculated as the sum of value added by resident firms, households, and governments operating in an economy.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom’s: Knowledge
- Emerging markets contribute about 26% of global GDP without adjusting for purchasing power parity (PPP).
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom’s: Knowledge
