TEST BANK
Global Business Today, 12th Edition
by Charles Hill All Chapters 1 – 17, Covered
,ChapteruOneuGlobalizationu
PARTuTWOuNationaluDifferences
ChapteruTwouNationaluDifferencesuinuPolitical,uEconomic,uanduLegaluSystemsu
ChapteruThreeuNationaluDifferencesuinuEconomicuDevelopmentu
ChapteruFouruDifferencesuinuCultureu
ChapteruFiveuEthics,uCorporateuSocialuResponsibility,uanduSustainabilityu
PARTuTHREEuTheuGlobaluTradeuanduInvestmentuEnvironment
ChapteruSixuInternationaluTradeuTheoryu
ChapteruSevenuGovernmentuPolicyuanduInternationaluTradeu
ChapteruEightuForeignuDirectuInvestmentu
ChapteruNineuRegionaluEconomicuIntegrationu
PARTuFOURuTheuGlobaluMonetaryuSystem
ChapteruTenuTheuForeignuExchangeuMarketu
ChapteruElevenuTheuInternationaluMonetaryuSystemu
PARTuFIVEuTheuStrategyuofuInternationaluBusiness
ChapteruTwelveuTheuStrategyuofuInternationaluBusinessu
ChapteruThirteenuEnteringuDevelopeduanduEmerginguMarketsu
PARTuSIXuInternationaluBusinessuFunctions
ChapteruFourteenuExporting,uImporting,uanduCountertradeu
ChapteruFifteenuGlobaluProductionuanduSupplyuChainuManagementu
ChapteruSixteenuGlobaluMarketinguanduBusinessuAnalyticsu
ChapteruSeventeenuGlobaluHumanuResourceuManagementuu
,Answersuareuatutheuenduofueachuchapter
Chapteru01uGlobalizati
onuTrueu/uFalseuQuestio
ns
1. Asuauresultuofuglobalization,uweuhaveubeenumovingutowarduauworlduinuwhichunationalueco
nomiesuareurelativelyuself-containeduentities.
True False
2. Byuofferingutheusameubasicuproductuworldwide,ufirmsuhelputoucreateuauglobalu
market.uTrue False
3. Aucompanyuhasutoubeutheusizeuofuaumultinationalugiantutoufacilitate,uandubenefitufr
om,utheuglobalizationuofumarkets.
True False
4. Asuauresultuofuglobalization,ucompaniesurarelyuneedutoucustomizeumarketingustrategies,u
productufeatures,uanduoperatingupracticesuinudifferentucountries.
True False
5. Globalizationuhasuresulteduinugreateruuniformityureplacingudiversityuacrossunationalum
arkets.uTrue False
6. Asufirmsufollowueachuotheruaroundutheuworld,utheyubringuwithuthemumanyuofutheuasse
tsuthatuserveduthemuwelluinuotherunationalumarkets.uThus,ugreaterudiversityureplacesuuniformi
ty.
True False
7. Substantialuimpediments,usuchuasubarriersutouforeignudirectuinvestment,umakeuitudifficultuf
orufirmsutouachieveutheuoptimaludispersionuofutheiruproductiveuactivitiesutoulocationsuaroundutheugl
obe.
True False
8. TheuWorlduTradeuOrganization,utheuInternationaluMonetaryuFunduanduitsusisteruinstituti
onutheuWorlduBank,uandutheuUniteduNationsuwereuallucreatedubyuvoluntaryuagreementubetween
uindividualunation-ustates.
True False
, 9. TheuInternationaluMonetaryuFunduandutheuWorlduBankuwereubothucreateduinu1944ubyu44u
nationsuthatumetuatuBrettonuWoods,uNewuHampshire.
True False
10. TheuWTOuisuseenuasutheulenderuofulasturesortutounation-
statesuwhoseueconomiesuareuinuturmoiluanduwhoseucurrenciesuareulosinguvalueuagainstuthoseu
ofuotherunations.
True False
11. TheuIMFuisulessucontroversialuthanuitsusisteruinstitution,utheuWorldu
Bank.uTrue False
12. Inureturnuforuloans,utheuIMFurequiresunation-
statesutouadoptuspecificueconomicupoliciesuaimeduatureturningutheirutroubledueconomiesutoustabi
lityuandugrowth.
True False
13. Foreignudirectuinvestmentu(FDI)uoccursuwhenuaufirmuinvestsuresourcesuinubusinessu
activitiesuoutsideuitsuhomeucountry.
True False
14. AfteruWorlduWaruII,utheuadvancedunationsuofutheuWestucommitteduthemselvesutouincr
easingubarriersutoutheufreeuflowuofugoods,uservices,uanducapitalubetweenunations.
True False
15. TheuUruguayuRound,uhelduunderutheuumbrellauofuGATT,uextendeduGATTutoucoveruservices
uasuwelluasumanufacturedugoods.
True False
16. Theuloweringuofutradeuanduinvestmentubarriersuallowsufirmsutoubaseuproductionuatutheu
optimalulocationuforuthatuactivity.
True False
17. Asuauresultuofuinternationalutrade,utheueconomiesuofutheuworld’sunation-
statesuareubecomingulessuintertwined.
True False
18. Theuglobalizationuofumarketsuanduproductionuandutheuresultingugrowthuofuworldutrade,uf
oreignudirectuinvestment,uanduimportsualluimplyuthatufirmsuareufindinguitueasierutouprotectuthems
elvesufrom
theuattackuofuforeignucompetitors.
