TEST BANK FOR INTRODUCTION TO GLOBAL BUSINESS 2ND EDITION
With business becoming increasingly global, its success, fortunately, depends only on the domestic environment. ANS: F PTS: 1 DIF: Difficulty: Moderate REF: p. 4 OBJ: LO: 01-01 NAT: BUSPROG: Analytic STA: DISC: Environmental Influence KEY: Bloom's: Comprehension 2. Even though business is global, the credit crisis of 2008, started by an American investment bank, was limited to the American economy with fortunately no impact on the global economy. ANS: F PTS: 1 DIF: Difficulty: Challenging REF: p. 3 OBJ: LO: 01-01 NAT: BUSPROG: Analytic STA: DISC: Environmental Influence KEY: Bloom's: Analysis 3. Key aspects of globalization include the elimination of barriers to trade and information technology. ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic STA: DISC: Environmental Influence KEY: Bloom's: Analysis 4. So far globalization has made it possible for goods, services, and capital, to cross national borders but not technology and culture. ANS: F PTS: 1 DIF: Difficulty: Moderate REF: p. 5 OBJ: LO: 01-01 NAT: BUSPROG: Analytic STA: DISC: Environmental Influence KEY: Bloom's: Analysis 5. The “soft” qualities essential to globalization include openness, protectionism, accountability, connectivity, democracy, and centralization. ANS: F PTS: 1 DIF: Difficulty: Challenging REF: p. 6 OBJ: LO: 01-01 NAT: BUSPROG: Analytic STA: DISC: Environmental Influence KEY: Bloom's: Analysis 6. A sustainable decoupling process would eventually lead to a multi-polar world—a world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone.