question

___ refers to the shift towards a more integrated and interdependent world economy.

answer

Globalization

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Sony Corporation sources foods and services for its electronics products from different locations around the globe in attempt to take advantage of differences in the cost and quality of factors of production. This practice is made possible by the:

answer

Globalization of products

question

The merging of historically distinct and separate national markers into one huge global marketplace is referred to as:

answer

Globalization of markets

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Indentify the International Treaty committed signatories to lowering barriers to the free flow of goods across national borders and is the predecessor to the WTO.

answer

The General Agreement of Tariffs and Trade

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Why was the International Monetary fund established?

answer

To maintain order in the international monetary system

question

Although Gillette is an American company, it has invested substantial business resources in activities outside the United States. This practice is referred to as:

answer

Foreign Direct Investment

question

How does the lowering of barriers to international trade help firms?

answer

It allows them to view the world as their market.

question

Due to containerization:

answer

The costs of shipping foods over long distances have significantly improved.

question

Going by the changing economic geography, most of tomorrow's economic opportunities may be found in:

answer

the developing nations of the world

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Since the 1960's, there have been two notable trends in the demographics of the multinational enterprises. These two trends have been:

answer

The rise of non-U.S. multinationals and the growth of mini-multinationals.

question

What are mini-multinationals?

answer

Medium and small sized multinationals

question

Which of the following arguments do critics use to suggest that globalization is a contributing factor to an increase in pollution?

answer

Firms from advanced national move their manufacturing facilities to countries that have less stringent or no pollution controls to avoid the cost of regulation.

question

When ___ is practiced, the of society as a while are generally viewed as being more important than individual freedom.

answer

Collectivism

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The group that believed socialism could be achieved only through violent revolution and totalitarian dictatorship was referred to as:

answer

Communists

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Followers who commit themselves to achieving socialism through democratic reforms are:

answer

Social Democrats

question

Which of the following is not a central tenet of individualism?

answer

Establishing laws that promote society's best interests

question

Which of the following countries would most likely adhere to tribal totalitarianism?

answer

Uganda

question

The fascist regimes that ruled Germany and Italy in the 1930's and the 1940's were:

answer

Right-wing totalitarian

question

In what kind of economy is production determined by the interaction of supply and demand and signaled to producers through the price system?

answer

Market Economy

question

Common law is based on all the following except

answer

Religion

question

When firms do not wish to accept the rules of the Convention on Contracts for the International Sale of Goods, they usually rely on ___ to settle contract disputes.

answer

Arbitration

question

The theft, piracy, or blackmail by private individuals or groups violating property rights refers to:

answer

Private Action

question

Suppose 3-M Corporation develops a new type of adhesive tape, 3-M can protect its invention for a defined period to the manufacture, use, or sale of that invention through what kind of protection?

answer

Patent

question

Patent, Copyrights, and Trademarks are examples of ___ property laws

answer

intellectual

question

There is a fairly wide agreement that ___ is the engine of long-run economic growth

answer

innovation

question

Which of the following is an advantage of a market economy?

answer

Any individual who has an innovative idea is free to try to make money out of that idea by starting a business.

question

Since the late 1980's, which of the following trends has emerged in the political economies of many of the world's national states?

answer

A wave of democratic revolutions has swept the world.

question

___ are social conventions concerning such things as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like.

answer

Folkways

question

What is the difference between folkways and mores?

answer

Violating mores tends to bring more serious retributions than violating folkways.

question

Which of the following statements is true about most Western societies?

answer

The value of most western societies emphasize individual achievement

question

One of the downsides to the emphasis on individualism is that it:

answer

is difficult to build teams within an organization to perform collective tasks

question

___ is an ethical system that has influenced behavior and shaped culture in parts of Asia, however it cannot considered as a religion.

answer

Confucianism

question

A major distinction between a conventional bank and an Islamic bank is that:

answer

Islamic banks cannot pay or charge interest

question

"Mudarabah" and the "murabaha" are:

answer

Islamic banking methods

question

Which of the following statements is true with regard to Geert Hofstede's cultural dimensions?

answer

Members of high uncertainty avoidance cultures had a strong need for rules and regulations

question

A country characterized by low uncertainty avoidance and low masculinity will:

answer

be less resistant to change and less distinguishing between men and women in the same job

question

Which of the following statements is true of Geert Hofstede's work on cultural dimensions?

answer

Hofstede's work fails to consider that many countries have more than one culture.

question

Hofstede's fifth dimension of Confucian dynamism captures:

answer

attitude towards time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors

question

Janet believes that the cultural group she belongs to is superior and is hence highly intolerant towards employees from the cultures of other countries. This behavior of Janet is known as:

answer

Ethnocentrism

question

The "oven" in the body of the ritual among the Nacirema was a:

answer

Hair dryer

question

___ are the accepted principles of tight or wrong governing the conduct of business people.

answer

Business Ethics

question

Which of the following statements is true about Sullivan principles?

answer

They promote the abolition of apartheid laws.

question

Ten years after he proposed what came to be known as the Sullivan's principles, Leon Sullivan concluded that his principles:

answer

were not sufficient to ethically justify the existence of Western businesses in South Africa

question

Which of the following is most likely to be considered unethical?

answer

Orion Inc. sends its products for recycling to a developing nation because the pollution control laws in its home country are more strict than that in the developing nation.

question

In the modern world, corporations can contribute to the global tragedy of the common by:

answer

Moving production to locations where they are free to pump pollutants into the environment.

question

The ___ outlawed the paying of bribes to foreign government officials to gain business.

answer

Foreign Corrupt Practices Act

question

The FCPA was subsequently amended to allow for speed money, or grease payments which are made to:

answer

ensure receiving the standard treatment that a business ought to receive.

question

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions:

answer

does not consider facilitating payments a criminal offense.

question

The concept of ___ refers to the idea that business people should consider the social consequences of economic actions when making business decisions, and that there should be a presumption in favor of decisions that have both food economic and social consequences.

answer

Social Responsibility

question

Which of the following best exemplifies noblesse oblige?

answer

Multinational Corporations funding schools, universities, and hospitals in under developed countries.

question

The practice of "gift giving" between the parties to a business negotiation is considered right and proper behavior in many Asian cultures. However, some Westerners view the practice as a form of bribery, and therefore unethical, particularly if the gifts are substantial. This reflects that:

answer

What is ethical depends on one's cultural perspective.

question

Davis is the manager of a pharmaceutical manufacturing plant in a developing country. The manufacturing unit does not meet the acceptable standards of the manufacturing facility in the home nation. He knows that demanding a better man. unit will raise the cost of the drugs mail exported to less developed countries, and hence its price. But he also realizes that by not demanding a better unit, the employees are prone to serious health issues. Davis is facing:

answer

an ethical dilemma

question

the first step to establishing a strong sense of business ethics is for a society to emphasize strong:

answer

Personal Ethics

question

Which of the following is most likely to reduce the pressure on managers to violate their personal ethics?

answer

Keeping managers psychologically and geographically close to their parent company.

question

Unipeg Corp. has uniform high sales targets for its employees all across the globe, regardless of the environmental constraints in each market. Employees are penalized for any shortfall. This has cause many employees to falsify the values of their sales. In this context, the roots of unethical behavior can be traced to:

answer

Unrealistic performance expectations.

question

According to ___, the only social responsibility of businesses is to increase profits, so long as the company stays within the rules of law.

answer

Milton Friedman

question

___ advocates that ethics are culturally determined and that firms should adopt the ethics of cultures in which they operate.

answer

Cultural Relativism

question

A righteous moralist is most likely to claim that:

answer

A multinational's home country standard of ethics are the appropriate ones for companies to follow in foreign countries.

question

An American manager of a multinational company who is working in one of the company's production plans located in Cadmia, employs children at the factory he is in charge of. On being criticized as unethical, the manager argues that such actions are ethically defensible because everyone in Cadmia is doing it. Which of the following straw men approaches to ethics is most likely demonstrated by the manager?

answer

the Naive Immoralist

question

The utilitarian philosophy for business ethics primarily focuses on:

answer

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

question

Which of the following philosophies of ethics holds that people should be treated as ends and never purely as means to the ends of others?

answer

Kantian ethics

question

According to theory of rights:

answer

Fundamental human rights and privileges transcend national boundaries and cultures.

question

According to ___, all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage

answer

John Rawls

question

The code of ethics of a company draws heavily upon documents such as the UN Universal Declaration of Human Rights, which itself is grounded in Kantian and right-base theories of moral philosophy. In the context of this information, this company is most likely to:

answer

Respect the dignity of an individual and the right of employees to freedom of association.

question

Which of the following practices should be avoided by a company to ensure ethical decision making?

answer

Placing its economic interests before its moral principles.

question

___ advocated that countries should simultaneously encourage exports and discourage imports.

answer

Mercantilism

question

The flaw with mercantilism was that it viewed trade as a:

answer

zero-sum game

question

According to Adam Smith and David Ricardo, trade is:

answer

a positive-sum game

question

Cadmia and Rhodia specialize in the production of textiles and agricultural products respectively. They are the best at their respective specializations. Cadmia trades textiles with Rhodia in exchange for agricultural products. which of the following is illustrated by this form of trade between Cadmia and Rhodia?

answer

the concept of absolute advantage

question

Paula specializes in the production of beef more efficiently than any other country. She buys wheat, which she produces less efficiently than beef, from Rihanna, even though it produces more wheat efficiently than Rihanna. Which of the following theories of int'l trade supports Paula's decision to buy wheat from Rihanna?

answer

Ricardo's theory of comparative advantage.

question

The difference between Ricardo's theory and Heckscher-Ohlin theory is that the Heckscher-Ohlin theory:

answer

Argues that the pattern of international trade is determined by differences in national factor endowments.

question

Vernon's product life cycle theory is that as the market in the U.S. and other advanced nations matures:

answer

The product becomes more standardized, the industry more competitive, and price becomes the main competitive weapon.

question

According to the product life cycle theory, the locus of global production initially switches from the United States to other advanced nations and then from those nations to developing countries. Which of the following is most likely to be a consequence of these trends?

answer

Over time, the U.S. switches from being an exporting country to an importing country.

question

___ are units of cost reductions associated with a large scale of output.

answer

Economies of scale

question

The new trade theory states that:

answer

World trade in certain products may be dominated by countries whose firms were first movers in their production.

question

Which of the following is a component of Porter's diamond?

answer

Demand conditions

question

Porter, and his diamond model, suggested that there is a strong association between ___ and the creation and persistence of competitive advantage in an industry.

answer

vigorous domestic rivalry

question

If a company were to draw from the ideas proposed in the various theories of international trade, from a profit perspective how would it go about selecting locations for its business?

answer

It would disperse its productive activities to those countries where they can be performed most efficiently.

question

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

answer

First-Mover advantages

question

Which of the following accurately depicts the levels of economic integration, from least integrated to most integrated?

answer

Free trade area, customs union, common market, economic union, political union

question

A(n) ___ 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

Which of the following regional arrangements requires a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy?

answer

Economic Union

question

Which of the following makes a political case in favor of regional economic integration?

answer

Great Britain choosing not to opt for the Euro

question

The two trade blocs in Europe are:

answer

The European Union and the European Free Trade Association

question

Which of the following factors resulted in the establishment of the European Union?

answer

The devastation of Western Europe during two world wars and their desire for lasting peace.

question

Which of the following bodies, established in 1951 was the forerunner of the EU?

answer

European Coal and Steel Community

question

Which of the following is NOT one o the four main institutions in the political structure of the EU?

answer

The European Standards Board

question

What comprises the Euro Zone?

answer

Member nations who use the Euro

question

Which of the following underlines the decisions by Great Britain, Denmark, and Swede to stay out of the euro zone?

answer

the implied loss of national sovereignty to the EBC (European Central Bank)

question

Bolivia, Chile, Ecuador, Colombia, and Peru signed an agreement in 1969 to create the:

answer

Andean Pact

question

The customs union CARICOM applied to:

answer

Caribbean Nations

question

Which of the following is an attempt to establish a free trade are between Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam?

answer

ASEAN

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