Business in Global Markets - Question & Answers

Chapter 03

Business in Global Markets

True / False Questions

1. (p. 72) Global business is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

FALSE

Learning Goal: Define global business

Level of Learning: Knows basic terms and facts

2. (p. 72) Global business is any activity that seeks to provide goods and services to others across national borders while operating at a profit.

TRUE

Learning Goal: Define global business

Level of Learning: Knows basic terms and facts

3. (p. 72) One disadvantage of global business is that labor is more expensive overseas.

Rationale: Businesses can save on the costs of labor by producing overseas, which is an advantage.

FALSE

Learning Goal: Define global business

Level of Learning: Understands concepts and principles

4. (p. 72) One advantage of engaging in business globally is the businesses have entirely new markets in which to sell their products.

Rationale: Engaging in global business has many advantages for businesses including exposure to entirely new markets in which to sell their products.

TRUE

Learning Goal: Define global business

Level of Learning: Understands concepts and principles

5. (p. 72) The global market is smaller than the American market.

FALSE

Learning Goal: Understand the importance of global trade

Level of Learning: Knows basic terms and facts

6. (p. 73) Friedman says that technology is one of the drivers of the "flattening of the world".

TRUE

Learning Goal: Understand the importance of global trade

Level of Learning: Knows basic terms and facts

7. (p. 73) Exporting is buying products from another country.

FALSE

Learning Goal: Understand the importance of global trade

Level of Learning: Knows basic terms and facts

8. (p. 74) Importing is buying products from another country.

TRUE...