Global Business Today: Asia-Pacific Perspective 5th edition by Charles W. L. Hill Test bank
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Hill (2019), Global Business Today 5e, McGraw-Hill Education (Australia)
Chapter 01 Testbank
Chapter 01 Testbank
1. The most global of markets is for industrial goods and materials that serve a universal need
around the world, rather than for consumer products.
True False
2. Over the past two decades, the globalisation of markets in the services sector has overtaken
that of goods manufacturing.
True False
3. Growth in China’s manufacturing sector and in its middle class is creating both opportunities
and threats for Australia’s economy.
True False
4. A firm has to become a multinational enterprise to engage in international business.
True False
5. Offshoring is a special form of outsourcing.
True False
6. 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
7. The move towards a global economy has also been strengthened by the widespread adoption
of liberal economic policies by countries that had firmly opposed them for two generations or
more.
True False
8. The economies like those of China and India are developing and a business that enters these
markets could grow with them.
True False
9. Managers in an international business must deal with government restrictions on international
trade and investment.
True False
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Hill (2019), Global Business Today 5e, McGraw-Hill Education (Australia)
Chapter 01 Testbank
10. The Group of Eight (G8) represents the fastest-growing emerging economies (including
China and Brazil) with respect to global economic issues.
True False
11. One of the objectives of Boeing’s outsourcing strategy was to reduce risk by:
A. replicating existing domestic products and operations in foreign locations.
B. ensuring that most key management decisions were made by foreign nationals.
C. pushing some of the risks associated with the production of the new 787 on to foreign
suppliers.
D. more women occupying key management positions in the organisation.
12. The most global of brand names is in:
A. services.
B. consumer goods.
C. industrial goods.
D. intellectual capital.
13. Critics of offshoring, which is when tasks previously performed in one country are
undertaken abroad, suggest that it causes ________________ and _______________.
A. job losses; depresses wages
B. higher trade; lower trade barriers
C. poverty; greater wealth concentration
D. home-country costs; host-country benefits
14. Which of the following refers to the exporting of goods or services to consumers in another
country?
A. Situational commerce.
B. World exchange.
C. International trade.
D. Cross-national barter.
15. When a firm invests resources in business activities outside its home country, giving it
control over those activities, this is referred to as:
A. international trade.
B. domestic direct investment.
C. transnational barter.
D. foreign direct investment.
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
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Hill (2019), Global Business Today 5e, McGraw-Hill Education (Australia)
Chapter 01 Testbank
in Australia. Supporters of globalisation reply to these criticisms and trends by making the point
that:
A. the benefits outweigh the costs.
B. the costs outweigh the benefits.
C. costs are offset by concentrating on product and market factors.
D. consumers benefit in the long run.
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).
A. information technology
B. process design
C. markets
D. production
18. The globalisation of ______________ refers to the merging of historically distinct and
separate national markets into one huge global marketplace.
A. corporations
B. production
C. markets
D. culture
19. A company does not have to be the size of a multinational corporation to facilitate and
benefit from the globalisation of markets. In Australia, for example, _______ of all goods
exporters are small businesses employing fewer than ___________ employees.
A. 57 per cent; 10
B. 67 per cent; 15
C. 44 per cent; 20
D. 87 per cent; 25
20. Fifty outside suppliers spread around the world account for 65 per cent of the value of
Boeing’s 787 Dreamliner. As such, Boeing can be said to be undertaking: