question

Article 23 of the Universal Declaration of Human Rights implies that it is unethical to employ child labor in sweatshop settings and pay less than subsistence wages, even if that happens to be common practice in some countries. This is in contrast to:

answer

Cultural relativism.

question

Some contemporary moral philosophers view Kant's ethical philosophy as incomplete because his system has no place for:

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moral emotions and sentiments.

question

Justice theories primarily focus on:

answer

the attainment of fair and equitable distribution of economic goods and services.

question

The utilitarian philosophy for business ethics primarily focuses on:

answer

weighing the benefits, costs, and risks associated with a course of action.

question

In a business setting, managers sometimes do not realize they are behaving unethically, primarily because they:

answer

fail to take into account the ethical dimension of business decisions.

question

Which of the following is a drawback of the product life-cycle theory?

answer

Its relevance in the modern world seems limited.

question

New trade theory argues that, through its impact on economies of scale, trade can:

answer

increase the variety of goods available to consumers.

question

Diminishing returns to specialization occur when:

answer

more units of resources are required to produce each additional unit.

question

Which of the following creates a barrier to subsequent entries in an industry dominated by first movers?

answer

The ability of first movers to benefit from increasing returns

question

Which of the following helps a firm to preempt available demand, gain cost advantages related to volume, and build an enduring brand ahead of later competitors?

answer

First-mover advantages

question

Porter argues that a nation's firms gain competitive advantage if their domestic consumers are:

answer

sophisticated and demanding.

question

Which of the following is one of the four factors included in Porter's diamond?

answer

Strategy, structure, and rivalry

question

Which of the following components of Porter's diamond is particularly important in shaping the attributes of domestically made products and in creating pressures for innovation and quality?

answer

Demand conditions

question

Which of the following factor endowments would be classified as a basic factor by Michael Porter?

answer

Natural resources

question

Which of the following is true of factor endowments according to Porter?

answer

Disadvantages in basic factors can create pressures to invest in advanced factors.

question

According to the new trade theory, how does trade offer an opportunity for mutual gain when countries do not differ in their resource endowments or technology?

answer

Trade increases the variety of goods available to consumers and lowers the costs of those goods.

question

A government should use subsidies to support promising firms that are active in newly emerging industries, according to:

answer

strategic trade policy.

question

The Palladian government required that all imported products that came from Lovaskiya be checked by Palladian customs inspectors. The inspection was done at a container freight station that was both remote and poorly staffed. This delayed the Lovaskiyan consignment from reaching the consumers in Palladia. The inspection strategy adopted by the customs officers in Palladia is an example of a(n):

answer

administrative trade policy.

question

The country of Cadmia, which is a leading producer of bauxite, had to impose trade sanctions on Cerian soda cans in order to get the government of Ceria to enforce export restraints. This imposition by Cadmian government was undertaken to protect domestic producers of soda cans. Which of the following government intervention is being used by Cadmia?

answer

Retaliation

question

Which of the following refers to a quota on trade imposed by the exporting country, typically at the request of the importing country's government?

answer

Voluntary export restraint (VER)

question

Which of the following is the most common political argument for government intervention in international trade?

answer

Protecting jobs and industries from unfair foreign competition

question

Many developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries cannot initially compete with well-established industries in developed countries, according to:

answer

infant industry argument.

question

Which of the following is NOT a constraint on a firm's ability to disperse its productive activities to foreign countries?

answer

The increasing integration of the world economy

question

The threat of antidumping action:

answer

limits the ability of a firm to use aggressive pricing to gain market share in a country.

question

Animax Limited got an order to sell 50,000 central processing units (CPUs) to Palladia, but the Palladian government stipulated that 15 percent of the component parts of those CPUs must be produced in Palladia. This stipulation by the Palladian government would be example of a(n):

answer

local content requirement.

question

A charge of 15-20% was levied by the government of Cadmia on the value of automobile accessories imported from a neighboring country. This increased the price of those imported car accessories for the consumers in Cadmia. Which of the following instruments of trade policy is being used by the government of Cadmia?

answer

Ad valorem tariff

question

According to Krugman, which of the following best indicates the dangers of a strategic trade policy?

answer

Occurrence of a trade war

question

According to the free market view, how does FDI increase the efficiency of the world economy through MNEs?

answer

The MNE is an instrument for dispersing the production of goods and services to the most efficient locations around the globe.

question

Direct effects of FDI on employment in the host country arise when a foreign MNE:

answer

employs a number of host country citizens.

question

Location-specific advantages for a firm are those that arise from:

answer

utilizing resource assets that are tied to a particular foreign location and valuable enough to be combined with the firm's own unique assets.

question

A firm is most likely to favor foreign direct investment over exporting when:

answer

the firm wishes to maintain control over its operations and business strategy.

question

The pragmatic nationalist view is that:

answer

FDI has both benefits and costs.

question

FDI is risky because of the problems associated with:

answer

doing business in a different culture where the rules of the game may be very different.

question

Governments impose quotas to limit:

answer

importing.

question

Which of the following is a major issue confronting the North American Free Trade Agreement?

answer

Expanding the membership of the agreement

question

The agreement of the member-states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States is known as the:

answer

Central American Free Trade Agreement.

question

Which of the following has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members?

answer

Common market

question

The Maastricht Treaty called for:

answer

establishment of the independent European Central Bank (ECB).

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