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Test bank for Global Business 5th edition Mike W. Peng
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Test bank for Global Business 5th edition Mike W. Peng

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  • 11 juni 2024
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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
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: Creation of Value
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
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
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
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Remember
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
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Moderate
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

5. Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and services different
currencies can purchase.
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
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
DATE MODIFIED: 3/5/2022 11:24 AM

7. Global business includes both international and domestic business activities.
a. True
b. False
ANSWER: True
POINTS: 1
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
DATE MODIFIED: 3/5/2022 11:24 AM

8. International business can be defined as the investment in, controlling, and managing value-added activities in other
countries.
a. True
b. False
ANSWER: False
POINTS: 1
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
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
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

10. All the countries of the BRIC belong to the top tier of the global economic pyramid.
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
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

11. The second tier of the global economic pyramid is made up of countries with a per capita annual income of more than
$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

,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

12. The emerging markets of the world are placed at the top of the global economic pyramid.
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
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Creation of Value
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

13. The global economic pyramid does not represent countries that have a per capita annual income of less than $2,000.
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
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

14. The term "base of the pyramid" represents economies where individuals make less than $2,000 a year.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Globalization and Semiglobalization

Copyright Cengage Learning. Powered by Cognero. Page 5

,QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-04 - LO: 01-04
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

15. Reverse innovations are innovations that are adopted first in the Triad-based multinationals and then diffused around
the world.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Moderate
REFERENCES: Globalization and Semiglobalization
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-04 - LO: 01-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

16. Reverse innovation is an example of bottom up innovation.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Moderate
REFERENCES: Globalization and Semiglobalization
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-04 - LO: 01-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Motivation Concepts - DISC: Environmental Influence
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

17. The Group of 20 includes the European Union (EU)—a regional bloc.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 6

,POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Why Study Global Business?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-02 - LO: 01-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

18. Globalization has driven up the salaries of low-level jobs.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Moderate
REFERENCES: Why Study Global Business?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-02 - LO: 01-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Creation of Value
KEYWORDS: Bloom's: Understand
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

19. An international premium is a significant pay raise awarded to expatriate employees working abroad.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: Why Study Global Business?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-02 - LO: 01-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Creation of Value
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

20. New York has more Fortune Global 500 company headquarters than any other city.

Copyright Cengage Learning. Powered by Cognero. Page 7

, a. True
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: Analyze
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

21. Overall, the focus on firm performance around the globe defines the field of global business more than anything else.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: A Unified Framework
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-03 - LO: 01-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Analyze
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

22. An institution-based view suggests that the success and failure of firms are enabled and constrained by business rules
and norms of the host nation.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Moderate
REFERENCES: A Unified Framework
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-03 - LO: 01-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Understand

Copyright Cengage Learning. Powered by Cognero. Page 8

,DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

23. Formal institutions include laws, regulations, and rules.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: A Unified Framework
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-03 - LO: 01-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Remember
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

24. The institution-based view places emphasis on the external factors that could affect a firm.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Moderate
REFERENCES: A Unified Framework
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-03 - LO: 01-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Analyze
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

25. Focusing on a firm‘s internal resources and capabilities is the main emphasis of the resource-based view.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: A Unified Framework
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-03 - LO: 01-03

Copyright Cengage Learning. Powered by Cognero. Page 9

, NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Environmental Influence
KEYWORDS: Bloom's: Analyze
DATE CREATED: 11/12/2021 2:54 PM
DATE MODIFIED: 3/5/2022 11:24 AM

26. Liability of foreignness is the inherent disadvantage experienced by foreign firms in host countries because of their
non-native status.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
REFERENCES: A Unified Framework
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: GLOB.PENG.05.01-03 - LO: 01-03
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

27. Most opponents of globalization view it as a long-run historical evolution since trade began.
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
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

28. According to the pendulum view of globalization, globalization is a relatively new phenomenon triggered by the
information revolution of the early 1990s.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Easy
Copyright Cengage Learning. Powered by Cognero. Page 10

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