Page of This chapter has 50 questions Scroll down to see and select individual questions or narrow the list using the checkboxes below questions at random and keep in order Multiple Choice Questions - (40) Section: Drivers of Globalisation - (11) True/False Questions - (10) Section: Introduction - (15) Odd Numbered - (25) Section: Managing in the Global Marketplace: What's the Difference? - (2) Even Numbered - (25) Section: Opening Case - (1) Difficulty: Easy - (19) Section: The Changing Foreign Direct Investment Picture - (1) Difficulty: Hard - (10) Section: The Changing Shape of the Global economy - (1) Difficulty: Medium - (21) Section: The Changing World Output and World Trade Picture - (2) Gradable: automatic - (50) Section: The Emergence of Global Institutions - (5) Learning Objective: 1.1 Explain the process and drivers of globalisation and the opportunities and challenges it creates for business - (30) Section: The Global Economy of the 21st Century: The Emerging Markets Century? - (1) Learning Objective: 1.2 Illustrate how the global economy has changed over the past 50 years - (11) Section: The Globalisation Debate - (4) Learning Objective: 1.3 Justify the labelling of the twenty-first century as the Emerging Markets Century - (4) Section: The Globalisation of Markets - (4) Learning Objective: 1.4 Debate the impact of globalisation on issues such as job security, income inequality and the environment - (4) Section: The Globalisation of Production - (3) Learning Objective: 1.5 Compare how the management of international business differs from the management of domestic business - (2) The most global of markets are for industrial goods and materials that serve a universal need around the world rather than for consumer products → True False Difficulty: Easy Gradable: automatic True / False Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Editionand bychallenges Hill Question TheTest most Bank global for of Global Business Today 3rd Australian opportunities it creates for business markets are for Section: Introduction Full file at https://TestbankDirect.eu/ Over the past two decades, the globalisation of markets in the services sector has overtaken that of goods manufacturing True → False Difficulty: Easy Gradable: automatic True / False Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question Over the past two decades, the opportunities and challenges it creates for business globalisation Section: Introduction Changes in China are creating both opportunities and threats for established international business → True False Difficulty: Easy Gradable: automatic True / False Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question Changes in China are creating opportunities and challenges it creates for business both opportunities Section: Introduction An international business is any firm that engages in exporting True → False Difficulty: Easy Gradable: automatic True / False Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question An international business is opportunities and challenges it creates for business any firm that Section: Introduction Offshoring is a special form of outsourcing → True False Difficulty: Medium Gradable: automatic True / False Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question Offshoring is a special form of opportunities and challenges it creates for business outsourcing Section: Introduction Part of Boeing's rationale for outsourcing so much of its production to foreign suppliers is that these suppliers are the best in the world at their particular activity → True False Difficulty: Hard Gradable: automatic True / False Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question Part of Boeing's rationale for opportunities and challenges it creates for business outsourcing so much Section: The Globalisation of Production The European Union Central Fund (EUCP) has replaced that of the International Monetary Fund (IMF) True → False Full file at https://TestbankDirect.eu/ Page of Difficulty: Hard Gradable: automatic True / False Question Learning Objective: 1.2 Illustrate how the global economy has Question The European Union Central Fund (EUCP) changed over the past 50 years has replaced Section: The Emergence of Global Institutions Two macro factors that underlie the trend towards greater globalisation are (1) the decline in barriers to the free flow of goods, services and capital; and (2) the dramatic developments in recent years in information and communication technologies and transportation → True False Difficulty: Medium Gradable: automatic True / False Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question Two macro factors that underlie opportunities and challenges it creates for business the trend towards Section: Drivers of Globalisation During the Global Financial Crisis (GFC), the main reasons for the decline in global production were through a severe drop in consumer demand and an inability to finance international trade due to tight credit controls → True False Difficulty: Easy Gradable: automatic True / False Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question During the Global Financial opportunities and challenges it creates for business Crisis (GFC), the Section: Drivers of Globalisation Test Bank for Global Business Today 3rd Australian Edition by Hill of the G8 and a selection 10 The Group of Twenty (G20) is an international forum comprising the government representatives of other economies who have global economic issues they wish to address at the forum Full file at https://TestbankDirect.eu/ True → False Difficulty: Medium Gradable: automatic Learning Objective: 1.2 Illustrate how the global economy has changed over the past 50 years True / False Question Learning Objective: 1.3 Justify the labelling of the twenty-first century as Question 10 The Group of Twenty (G20) is an the Emerging Markets Century international Section: The Changing World Output and World Trade Picture 11 A goal of Komatsu was to become ‘truly global' To be truly global is exemplified by: replicating existing domestic products and operations in foreign locations ensuring most key management decisions are made by foreign nationals → more autonomy for local managers in foreign markets and less reliance on expatriate managers more women occupying key management positions in the organisation Difficulty: Hard Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 11 A goal of Komatsu was to opportunities and challenges it creates for business become Section: Opening Case 12 The most global of brand names is in what area? services consumer goods → industrial goods intellectual capital Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.2 Illustrate how the global economy has changed Question 12 The most global of brand names is in over the past 50 years what Section: Introduction 13 Offshoring, which means that the tasks previously performed in one country are now being undertaken abroad, is accepted widely by , but not as much by _ at this time → manufacturing; services management; unions governments; corporations the home country; the host country Difficulty: Hard Gradable: automatic Multiple Choice Question Learning Objective: 1.2 Illustrate how the global economy has changed Question 13 Offshoring, which means that the tasks over the past 50 years previously Section: Introduction 14 Which of the following refers to the exporting of goods or services to consumers in another country? situational commerce Full file at https://TestbankDirect.eu/ Page of → world exchange international trade cross-national barter Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.2 Illustrate how the global economy has changed Question 14 Which of the following refers to the over the past 50 years exporting Section: Introduction 15 When a firm invests resources in business activities outside its home country, giving it control over those activities, it is referred to as: international trade domestic direct investment transnational barter → foreign direct investment Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.2 Illustrate how the global economy has changed Question 15 When a firm invests resources in over the past 50 years business Section: Introduction 16 Critics of globalisation argue that falling trade barriers and the costs of production allow firms to move manufacturing operations to countries where the wage rates are much lower than in Australia Supporters of globalisation reply to these criticisms and trends to make the point that: → the benefits outweigh the costs Test Bank for Global Business Today 3rd Australian Edition by Hill the costs outweigh the benefits costs are offset by concentrating on product and market factors Full file at https://TestbankDirect.eu/ consumers benefit in the long run Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.4 Debate the impact of globalisation on issues such as job Question 16 Critics of globalisation argue security, income inequality and the environment that falling Section: The Globalisation Debate 17 The globalisation of _ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labour, energy, land and capital) information technology process design markets → production Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 17 The globalisation of opportunities and challenges it creates for business _ refers Section: The Globalisation of Production 18 The globalisation of refers to the shift towards a more integrated and interdependent world economy corporations production → markets culture Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 18 The globalisation of opportunities and challenges it creates for business refers Section: The Globalisation of Markets 19 A company does not have to be the size of multinational corporations to facilitate and benefit from the globalisation of markets In Australia, for example, _ of firms that export are small businesses employing fewer than _ employees 57%; 10 67%; 15 → 42%; 20 87%; 25 Multiple Choice Question Question 19 A company does not have to be the size of 20 Difficulty: Easy Gradable: automatic Learning Objective: 1.1 Explain the process and drivers of globalisation and the opportunities and challenges it creates for business Section: The Globalisation of Markets Full file at https://TestbankDirect.eu/ Page of Although Boeing is incorporated in the United States, eight Japanese suppliers make parts for the fuselage, doors and wings; a supplier in Singapore makes the doors for the nose landing gear; and three suppliers in Italy manufacture wing flaps Boeing is taking part in: exporting licensing → outsourcing franchising Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 20 Although Boeing is incorporated opportunities and challenges it creates for business in the United Section: The Globalisation of Production 21 In establishing their credentials, companies such as McDonald's hamburgers, Samsung phones and Apple iPads apply the same basic formula worldwide, which is to: → standardise its product offerings, and then adapt to local conditions adapt its product offerings, and then standardise to local conditions outsource manufacturing to key suppliers open large warehouses under franchise agreement Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 21 In establishing their credentials, opportunities and challenges it creates for business companies Section: The Globalisation of Markets Bank forofGlobal Business Today 3rd Australian Hilland international markets 22 One of the Test key adaptations the Indian-based global conglomerate, the Tata Edition Group, forby home was to consider: Full file attohttps://TestbankDirect.eu/ free delivery customers who repeat purchase subsidised customer parking → a customised assembly service and delivery car designs for small-space living in high-rise apartments Difficulty: Hard Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 22 One of the key adaptations of the opportunities and challenges it creates for business Indian-based Section: The Globalisation of Markets 23 An international treaty that committed signatories to lowering barriers to the free flow of goods across national borders is called: the International Agreement on Trade the Global Expansion Agreement the Warsaw Pact → the General Agreement on Tariffs and Trade Multiple Choice Question Question 23 An international treaty that committed signatories 24 The most global of markets is in what area? services consumer goods → industrial goods intellectual capital Difficulty: Easy Gradable: automatic Learning Objective: 1.2 Illustrate how the global economy has changed over the past 50 years Section: The Emergence of Global Institutions Difficulty: Easy Gradable: automatic Learning Objective: 1.1 Explain the process and drivers of globalisation and the opportunities and challenges it creates for business Section: Introduction Multiple Choice Question Question 24 The most global of markets is in what area? 25 The term 'offshoring': is synonymous with outsourcing → means that the tasks previously performed in one country are now being undertaken abroad means shoring-up intellectual capital means that the tasks that were previously performed in-house are now purchased from another country Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the opportunities Question 25 The term and challenges it creates for business 'offshoring': Section: Introduction 26 Globalisation results in a greater degree of across markets and in the world economy than would be present otherwise Full file at https://TestbankDirect.eu/ Page of → diversification; homogeneity diversity; complexity integration; interdependency isolation; independence Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 26 Globalisation results in a opportunities and challenges it creates for business greater degree of Section: Introduction 27 Although outsourcing has been primarily confined to _, increasingly, companies are taking advantage of outsourcing for services; manufacturing → manufacturing; services mining; manufacturing manufacturing; mining Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and Question 27 Although outsourcing has been the opportunities and challenges it creates for business primarily confined Section: Introduction 28 _ is seen as the lender of last resort to nation-states whose economies are in economic turmoil and whose currencies are losing value against those of other nations → The International Monetary Fund Test Bank for Global The International Bank Business Today 3rd Australian Edition by Hill The United Nations Full file at https://TestbankDirect.eu/ The United States Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.2 Illustrate how the global economy has changed Question 28 _ is seen as the lender of last over the past 50 years resort Section: The Emergence of Global Institutions 29 With membership of 193 countries, the _ was established to preserve peace through international cooperation and collective security World Monetary Fund International Monetary Fund International Bank → United Nations Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.2 Illustrate how the global economy has changed Question 29 With membership of 193 countries, the over the past 50 years Section: The Emergence of Global Institutions 30 Promoting economic development, primarily by offering low-interest loans to governments of poorer nations, is the purpose of: the United Nations the International Monetary Fund the World Trade Organization → the World Bank Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.2 Illustrate how the global economy has changed Question 30 Promoting economic development, over the past 50 years primarily by Section: The Emergence of Global Institutions 31 _ are the two macro factors that seem to underlie the trend towards greater globalisation The increase in global economic stability; and the slowdown in technological change The increase in barriers to the free flow of goods, services and capital that has occurred since the end of World War Two; and global economic stability The decline in barriers to the free flow of goods, services and capital that has occurred in the past 10 years; and the slowdown in technological change The decline in barriers to the free flow of goods, services and capital that has occurred since the end of World → War Two; and increased technological change Difficulty: Hard Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 31 _ are the two opportunities and challenges it creates for business macro factors Section: Drivers of Globalisation 32 The investing of resources in business activities outside a firm's home country is referred to as: Full file at https://TestbankDirect.eu/ Page of → international trade domestic direct investment transnational barter foreign direct investment Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 32 The investing of resources in opportunities and challenges it creates for business business activities Section: Drivers of Globalisation 33 The _ (now subsumed under the World Trade Organization) is a treaty designed to remove barriers to the free flow of goods, services and capital between nations Global Agreement on Tariffs and Commerce United Nations Treaty on Trade → General Agreement on Tariffs and Trade Multinational Agreement on Tariffs and Commerce Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and Question 33 The _ (now the opportunities and challenges it creates for business subsumed under Section: Drivers of Globalisation 34 Evidence suggests that foreign direct investment is playing: a decreasing role in the world economy an increasing role in the world economy for services but a decreasing role in the world economy for Test Bank for Global Business Today 3rd Australian Edition by Hill manufactured goods an increasing role in the world economy for manufactured goods but a decreasing role in the world economy Full file at https://TestbankDirect.eu/ for services → an increasing role in the world economy Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and Question 34 Evidence suggests that foreign the opportunities and challenges it creates for business direct investment Section: Drivers of Globalisation 35 When discussing foreign direct investment, it is important to distinguish between the flow of FDI and the _ of FDI outflow inflow → stock trade Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 35 When discussing foreign direct opportunities and challenges it creates for business investment, it Section: Drivers of Globalisation 36 The flow of foreign direct investment experienced a major temporary setback during which years? 1990–99 2000–07 → 2008–09 2010–11 Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and Question 36 The flow of foreign direct the opportunities and challenges it creates for business investment experienced Section: Drivers of Globalisation 37 is the theory that predicts that the power of microprocessor technology doubles and its cost of production falls every 18 months Brennan's Theorem Bailey's Law → Moore's Law Ivan's Law Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 37 is the theory opportunities and challenges it creates for business that predicts that Section: Drivers of Globalisation 38 According to the textbook, between 1930 and 1990, the cost of a 3-minute phone call between New York and London fell from USD$244.65 to USD$3.32 By 1998, it had plunged to just USD$0.36 cents for consumers, and much lower rates for businesses All of these changes are due to: Full file at https://TestbankDirect.eu/ Page of → the Dial Subscriber Network(s) international dialler subscriptions the internet the latest in the NBN telecommunications processes Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 38 According to the textbook, opportunities and challenges it creates for business between 1930 and Section: Drivers of Globalisation 39 Due to containerisation and transportation technology, the transportation costs associated with the globalisation of production have: remained the same increased dramatically → declined increased slightly Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and Question 39 Due to containerisation and the opportunities and challenges it creates for business transportation technology Section: Drivers of Globalisation 40 One measure of the sustainability, or 'carbon footprint', of food production is 'food miles'—that is, the distance the food travels to reach the supermarket shelves Food producers who are carbon efficient in their food production, and are concerted in their efforts on environmental protection, are likely to have: Test Bank for Global Business Today 3rd Australian Edition by Hill a distinct advantage an absolute advantage file at advantage https://TestbankDirect.eu/ a Full comparative → a competitive advantage Difficulty: Hard Gradable: automatic Multiple Choice Question Learning Objective: 1.4 Debate the impact of globalisation on issues such as job Question 40 One measure of the security, income inequality and the environment sustainability Section: The Globalisation Debate 41 One concern of globalisation critics is that a global economy shifts economic power away from and towards the proletariat; the bourgeoisie → national governments; supranational organisations the West; the East the East; the West Difficulty: Hard Gradable: automatic Multiple Choice Question Learning Objective: 1.4 Debate the impact of globalisation on issues such as job Question 41 One concern of globalisation security, income inequality and the environment critics is that Section: The Globalisation Debate 42 Which of the following is NOT a reason why some of the world's poorest countries have suffered from economic stagnation? → democratic governments economic policies that destroy rather than facilitate the creation of wealth weak protection for property rights war Difficulty: Hard Gradable: automatic Multiple Choice Question Learning Objective: 1.4 Debate the impact of globalisation on issues such as Question 42 Which of the following is NOT a job security, income inequality and the environment reason why some Section: The Globalisation Debate 43 To is the minimum that a firm has to to engage in international business → export or import invest directly in operations in another country establish joint ventures or strategic alliances with companies in other countries licence products to companies in other countries Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and Question 43 To is the opportunities and challenges it creates for business the minimum that Section: Introduction 44 Any firm that engages in international trade or investment is referred to as: a multinational Full file at https://TestbankDirect.eu/ Page of → a franchise a conglomerate an international business Difficulty: Easy Gradable: automatic Multiple Choice Question Learning Objective: 1.1 Explain the process and drivers of globalisation and the Question 44 Any firm that engages in opportunities and challenges it creates for business international trade Section: Introduction 45 Managing an international business is different from managing a purely domestic business for all of the following reasons, except: countries are different international transactions involve converting money into different currencies the range of problems confronted by a manager in an international business is narrower than those confronted → by a manager in a domestic business an international business must find ways to work within the limits imposed by government intervention in the international trade and investment system Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.5 Compare how the management of international Question 45 Managing an international business differs from the management of domestic business business is different Section: Managing in the Global Marketplace: What's the Difference? 46 Managing an international business is different from managing a domestic business and is more challenging due to a variety of reasons including country differences; a wider range of more complex problems; the greater intensity of competition; increased of intervention governments, home and host; and: by Hill Test Banklikelihood for Global Business by Today 3rd Australian Edition barriers to cross-border trade and investment are said to be flat or dormant outsourcing is increasing due to worldwide productivity Full file at https://TestbankDirect.eu/ → added complexity of conducting transactions in different countries national economies are becoming increasingly interdependent on each other Difficulty: Hard Gradable: automatic Multiple Choice Question Learning Objective: 1.5 Compare how the management of international Question 46 Managing an international business differs from the management of domestic business business is different Section: Managing in the Global Marketplace: What's the Difference? 47 The Chinese Company HiSense has been able to be successful internationally through: earning more than 50 per cent of their total revenue internationally utilising the main drivers of growth in the rapidly developing economies around the world falling regulatory and administrative barriers to doing business internationally → establishing subsidiaries (manufacturing bases) around the world Difficulty: Medium Gradable: automatic Multiple Choice Question Learning Objective: 1.2 Illustrate how the global economy has changed Question 47 The Chinese Company HiSense has been over the past 50 years able to Section: The Changing Shape of the Global economy 48 In keeping with the normative prescriptions of liberal economic ideology, in country after country we have seen stateowned businesses privatised, widespread deregulation adopted, markets opened to more competition, and commitment increased to removing barriers to cross-border trade and investment All of this helps to: achieve economic dominance over the rest of the world ensure authoritarian governments shift in emphasis towards more democratic controls → facilitate a move towards the establishment of a more global economic system predict shifts (along with their attendant risks) in the economic, political, social, technological and environmental structures of the world Difficulty: Medium Gradable: automatic Learning Objective: 1.3 Justify the labelling of the twenty-first century as the Multiple Choice Question Emerging Markets Century Question 48 In keeping with the normative Section: The Global Economy of the 21st Century: The Emerging Markets prescriptions Century? 49 The Group of Twenty (G20) is an international forum comprising the government representatives of the G8 and other economies, including the emerging economies of Brazil, China and India, as a reflection of their rising global economic and political power to: achieve economic dominance over the rest of the world ensure authoritarian governments shift in emphasis towards more democratic controls → help facilitate continuing globalisation and trade liberalisation predict shifts (along with their attendant risks) in the economic, political, social, technological and environmental structures of the world Multiple Choice Question Question 49 The Group of Twenty (G20) is an international Difficulty: Medium Gradable: automatic Learning Objective: 1.3 Justify the labelling of the twenty-first century as Full file at https://TestbankDirect.eu/ Page of the Emerging Markets Century Section: The Changing World Output and World Trade Picture 50 A sovereign wealth fund is a: → government-controlled fund that manages and invests government savings privately controlled fund that manages and invests private sector savings pseudo-controlled fund that manages both private and government savings savings fund for the benefit of countries in the Commonwealth only Multiple Choice Question Question 50 A sovereign wealth fund is a: Difficulty: Medium Gradable: automatic Learning Objective: 1.3 Justify the labelling of the twenty-first century as the Emerging Markets Century Section: The Changing Foreign Direct Investment Picture Test Bank for Global Business Today 3rd Australian Edition by Hill Full file at https://TestbankDirect.eu/ Full file at https://TestbankDirect.eu/ ... The Changing Foreign Direct Investment Picture Test Bank for Global Business Today 3rd Australian Edition by Hill Full file at https://TestbankDirect.eu/ Full file at https://TestbankDirect.eu/... economy for services but a decreasing role in the world economy for Test Bank for Global Business Today 3rd Australian Edition by Hill manufactured goods an increasing role in the world economy for. .. International Monetary Fund Test Bank for Global The International Bank Business Today 3rd Australian Edition by Hill The United Nations Full file at https://TestbankDirect.eu/ The United States