Global Business International Edition 3rd Edition By Mike Peng – Test Bank

Global Business International Edition 3rd Edition By Mike Peng – Test Bank

Chapter 1—Globalizing Business

 

TRUE/FALSE

 

1. 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

 

2. 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

 

3. 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

 

4. 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

 

5. 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

 

6. 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

7. 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