Ch 1 - Practice Questions

Approximately _____ people are employed by foreign-owned firms throughout the world.

80 million

Which of the following groups is primarily composed of emerging economies?

BRIC

More than half of all GDP of emerging economies comes from _____.

BRIC (Brazil, Russia, India, and China)

Which of the following would be an example of a product undergoing reverse innovation on the global economic pyramid? a. Triad nation to Triad nation b. Triad nation to second tier nation c. Second tier to base tier nation d. Base tier nation to Triad nation

Base tier nation to Triad nation

Which of the following countries would be characterized as an emerging economy? Brazil USA Germany Japan

Brazil

The term "emerging economies" has replaced the term _____.

Developing Countries

Which of the following is true of globalization according to the "pendulum view" perspective? a. Globalization is being interrupted by artificial barriers to the flows of goods, services, capital, and knowledge. b. Globalization is a Western ideology focused on exploiting and dominating the world through MNEs. c. Globalization is a not a one-directional phenomenon. d. Globalization is a recent phenomenon of human trade.

Globalization is a not a one-directional phenomenon.

The _____ is measured as the sum of value added by resident firms, households, and governments operating in an economy.

Gross Domestic Product

The gross domestic product plus the income from non-resident sources abroad gives the ____.

Gross National Product

The _____ view of global business focuses on external factors that affect a firm's performance.

Institution-based

The _____ view suggests that the success and failure of firms are largely determined by their environments.

Institution-based

Which of the following is true of semiglobalization? a. It is a type of globalization that adopts a strategy of treating the entire world as one market. b. It is a type of globalization that lies between total isolation and total globalization. c. It is a form of globalization that treats each country as a unique market. d. It is a form of globalization that considers each nation in isolation when conducting business.

It is a type of globalization that lies between total isolation and total globalization.

Which of the following is true of globalization according to the "new force" perspective? a. It is a process of trade integration that has both advantages and disadvantages. b. It is a phenomenon that is technologically out of sync. c. It is a historical aspect of human trade. d. It is a western ideology focused on exploiting and dominating the world through MNEs.

It is a western ideology focused on exploiting and dominating the world through MNEs.

Which of the following is true of the Group of 20 (G-20)? a. It only has 19 member countries. b. It doesn't represent any European nation. c. It meets annually to discuss environmental issues.

It only has 19 member countries.

Which of the following countries is represented in the Triad of the global economic pyramid? a. India b. China c. Japan d. Russia

Japan

The _____ is the inherent disadvantage faced by foreign firms in host nations due to their non-native status

Liability of Foreignness

The strategy of treating each country as a unique market and in total isolation is referred to as _____.

Localization

Which of the following would be an example of a top down innovation? a. Lowering prices and features of existing products to meet emerging market needs b. Launching a product in and for emerging economies c. Adopting an innovation first in emerging economies and then diffusing it around the world d. Introducing products from emerging markets into developed markets

Lowering prices and features of existing products to meet emerging market needs

Which of the following would be regarded as a dragon MNE? a. MNEs from developed countries b. MNEs belonging to the Triad economies c. MNEs coming exclusively from the European Union d. MNEs from emerging markets

MNEs from emerging markets

Viewing the global economy as a pyramid, the Triad refers to _____.

North America, Western Europe, and Japan

The _____ of globalization suggests that globalization is neither recent nor one-directional.

Pendulum View

A conversion that determines the equivalent amount of goods and services that different currencies can buy is known as _____.

Purchasing Power Parity

The _____ view of global business focuses on internal factors that can help a firm overcome its external environment.

Resource-based

A _____ is defined as an innovation that is adopted first in emerging economies and then diffused around the world.

Reverse Innovation

Which of the following countries is included in BRIC? a. Belgium b. Russia c. Italy d. Canada

Russia

_____ is the strategy of treating the entire world as one market.

Standardization

Which of the following regions in the global economic pyramid would comprise developed nations? a. The base b. The Triad c. The second tier d. The outlier

The Triad

Which of the following is true of economies in the base of the global economic pyramid? a. They are composed of developed economies. b. They are composed of people from North America, Western Europe, and Japan. c. They are largely ignored by MNEs. d. They attract the largest FDI from MNEs.

They are largely ignored by MNEs

People who live in the Triad countries comprise the _____ of the global economic pyramid.

Top Tier

Which of the following would lead to the standardization of world markets? a. Semiglobalization b. Localization c. Total globalization d. Total isolation

Total Globalization

Which of the following does the institution-based view of global business lay emphasis on? a. Acquiring resources that belong to the host nation b. Consolidating the internal assets of a firm c. Focusing on the capabilities of the firm's headquarters d. Understanding the laws and values of the firm's host nation

Understanding the laws and values of the firm's host nation

The resource-based view of global business differs from the institution-based view of global business in that the resource-based view _____.

focuses on the internal strengths of the firm

People who earn _____ a year comprise the base of the global economic pyramid.

less than $2,000

The concept of _____ suggests that barriers to market integration at borders are high, but not high enough to completely insulate countries from each other.

semiglobalization