Test Bank For All Chapters Global Business Today, 11e (Hill) Chapter 1 Globalization
1) As a result of globalization, we have been moving toward a world in which national economies are relatively self-contained entities. Answer: FALSE Explanation: Over the past five decades, a fundamental shift has been occurring in the world economy. We have been moving away from a world in which national economies were relatively self-contained entities, isolated from each other by barriers to cross-border trade and investment; by distance, time zones, and language; and by national differences in government regulation, culture, and business systems. Difficulty: 1 Easy Topic: What is Globalization? Learning Objective: 01-01 Understand what is meant by the term globalization. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 2) To truly benefit from globalization, a firm needs to be a multinational conglomerate rather than a small or mid-size company. Answer: FALSE Explanation: A company does not have to be the size of a multinational giant to benefit from globalization. Currently, small and medium-size companies account for 33 percent of the value of U.S. exports of manufactured goods. Difficulty: 1 Easy Topic: What is Globalization? Learning Objective: 01-01 Understand what is meant by the term globalization. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 3) In today's marketplace, outsourcing efforts are confined to manufacturing activities. Answer: FALSE Explanation: Early outsourcing efforts were primarily confined to manufacturing activities. Increasingly, however, companies are taking advantage of modern communications technology, particularly the Internet, to outsource service activities to low-cost producers in other nations. Difficulty: 1 Easy Topic: What is Globalization? Learning Objective: 01-01 Understand what is meant by the term globalization. Bloom's: Understand AACSB: Analytical Thinking 1 Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.