Test Bank For Global 2nd Edition By Mike Peng
Chapter 1—Globalizing Business
TRUE/FALSE
- Terms International Business (IB) and the term global business are synonymous.
ANS: F PTS: 1 DIF: Easy REF: p. 4
OBJ: 1.1 NAT: AACSB: Tier 1 Reflective Thinking; Tier 2 Strategy
- Multinational enterprise is a firm that engages in foreign direct investment by directly investing in, controlling, and managing value-added activities in other countries.
ANS: T PTS: 1 DIF: Moderate REF: p. 4
OBJ: 1.1 NAT: AACSB: Tier 1 Analytic; Tier 2 Creation of Value
- The term International Business should always refer to business activities conducted abroad.
ANS: F PTS: 1 DIF: Difficult REF: p. 5
OBJ: 1.1 NAT: AACSB: Tier 1 Communication; Tier 2 Environmental Influence
- Global business includes both international (cross-border) activities as well as domestic business activities.
ANS: T PTS: 1 DIF: Moderate REF: p. 4
OBJ: 1.1 NAT: AACSB: Tier 1 Reflective Thinking; Tier 2 Environmental Influence
- Gross domestic product (GDP) is the sum of value added by resident firms, households, and government operating in an economy.
ANS: T PTS: 1 DIF: Moderate REF: p. 7
OBJ: 1.1 NAT: AACSB: Tier 1 Reflective Thinking; Tier 2 Environmental Influence
- Emerging markets contribute about 25% of global GDP when adjusted for purchasing power parity, PPP.
ANS: F PTS: 1 DIF: Moderate REF: p. 8
OBJ: 1.1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence
- 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: Moderate REF: p. 8
OBJ: 1.1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence
- Purchasing power parity (PPP) is an adjustment that reflects the differences in cost of living in countries.
ANS: T PTS: 1 DIF: Moderate REF: p. 8
OBJ: 1.1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence
- Gross national product (GNP) is the sum of value added by resident firms, households, and government operating in an economy.
ANS: F PTS: 1 DIF: Moderate REF: p. 8
OBJ: 1.1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence
- Brazil, Russia, Indonesia, and China are commonly referred to as BRIC countries.
ANS: F PTS: 1 DIF: Moderate REF: p. 8
OBJ: 1.1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence
