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1 Copyright © 2014 Pearson Education, Inc.
International Business: The Challenges of Globalization, 7e (Wild)
Chapter 1 Globalization 1) International business is any commercial transaction that crosses the borders of two or more nations.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
2) Imports are goods and services purchased abroad and brought into a country.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Discuss the roles of exporting, importing, and countertrade in international business 3) Multinational corporations (MNCs) have direct investments abroad in multiple countries.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
4) A born global firm is a company that engages in international business from or near its inception.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
5) The term "globalization of production" refers to convergence in buyer preferences in markets around the world.
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
International Business The Challenges of Globalization 7e John Wild Kenneth Wild (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4
2 Copyright © 2014 Pearson Education, Inc.6) Products marketed in all countries essentially without any changes are known as continental products.
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
7) The General Agreement on Tariffs and Trade (GATT) was designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
8) The power of the General Agreement on Tariffs and Trade (GATT) to settle trade disputes is what sets it apart from the World Trade Organization (WTO).
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Define the fundamental concepts of international business
9) The World Trade Organization's dispute settlement system has the ability to penalize offending nations.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Define the fundamental concepts of international business
10) NAFTA is the international organization that enforces the rules of international trade worldwide.
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Define the fundamental concepts of international business 2 / 4
3 Copyright © 2014 Pearson Education, Inc.11) Resistance to worldwide trade agreements has resulted in some nations placing greater emphasis on regional pacts.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Define the fundamental concepts of international business
12) Gross national product (GNP) is the value of all goods and services imported into a country over a one-year period.
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
13) Extranets give distributors and suppliers access to a company's database to place orders or restock inventories electronically.
Answer: TRUE
AACSB: Use of information technology
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Describe how global production and logistics decisions are made
14) A characteristic of the world's least-global nations is low levels of corruption.
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Define the fundamental concepts of international business
15) The role of the World Bank is to provide financing for national economic development efforts.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
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4 Copyright © 2014 Pearson Education, Inc.16) The rules of the international monetary system are enforced by the World Bank.
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Define the fundamental concepts of international business
17) Critics of globalization argue that it eliminates jobs in developing nations.
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 4
Difficulty: Moderate
Course LO: Discuss trends in and the debate over globalization
18) Pro-globalization economists believe globalization increases wealth in both developed and developing nations.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 4
Difficulty: Moderate
Course LO: Discuss trends in and the debate over globalization
19) Flexible labor markets allow workers to be redeployed rapidly to sectors of the economy where they are highly valued.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 4
Difficulty: Moderate
Course LO: Discuss trends in and the debate over globalization
20) Supporters and critics of globalization appear to agree that globalization prevents dislocation in labor markets.
Answer: FALSE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 4
Difficulty: Moderate
Course LO: Discuss trends in and the debate over globalization
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