Test Bank For Global Business 2nd Edition by Mike Peng

Chapter 1—Globalizing Business

TRUE/FALSE

1. 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

2. 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

3. 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

4. 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