CBA 300: International Business Exam 1

In a pure command economy A. all businesses are owned by the state B. there is free and fair competition between private producers C. the goods and services that a country produces are not planned by anyone D. prices are determined by market forces

A. All businesses are owned by the state

Opponents of globalization argue that falling trade barriers A. allow firms to move manufacturing activities to countries with lower wage rates B. create manufacturing jobs in wealthy advanced economies C. force countries to maintain manufacturing in their home countries regardless of wage rates D. reduce the pool of global labor

A. Allow firms to move manufacturing activities to countries with lower wage rates

The role of the government in a market economy involves A. encouraging free and fair competition among private producers B. mobilizing massive economic resources of the country for public good C. determining the prices at which the goods and services will be sold D. planning the types and quantities of goods and services to be produced

A. Encouraging free and fair competition among private producers

The belief in the superiority of one's own culture is known as A. ethnocentrism B. cultural relativism C. cross-cultural literacy D. the convergence hypothesis

A. Ethnocentrism

Which of the following is true about planned economics? A. in a planned economy, the state owns all means of products B. in a planned economy, entrepreneurs have economic incentives that encourage innovation C. in a planned economy, market regulations reduce the risk of economic stagnation D. in a planned economy, individuals benefit more from innovations than the state does

A. In a planned economy, the state owns all means of production

Globalization critics argue that the decline in unskilled wage rates is due to the A. migration of low-wage manufacturing jobs offshore B. privatization of government owned enterprises C. regulation of the global market by WTO D. technology-induced shift toward skilled jobs

A. Migration of low-wage manufacturing jobs offshore

In the case of command economies, deregulation involves __________ A. removing price controls B. detailed state planning C. exercising tight control over foreign trade D. encouraging state ownership of enterprises

A. Removing price controls

Folkways are A. the routine conventions of everyday life B. abstract ideas about what a group believes to be good, right, and desirable C. norms that are seen as central to the functioning of a society and to its social life D. a group of people who share a common set of values and norms

A. The routine conventions of everyday life

Which of the following statements is true about trademarks? A. trademarks are designs and names by which businesses differentiate their products B. trademarks are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit C. trademarks grant the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention D. trademarks are certain safety standards to which a product must adhere

A. Trademarks are designs and names by which businesses differentiate their products

Contracts drafted under a common law framework tend to be A. very detailed with contingencies spelled out B. very short and general in scope C. inexpensive to draw up between two parties D. inflexible and difficult to adjudicate

A. Very detailed with contingencies spelled out

Which of the following exemplifies privatization? A. a country reduces trade barriers, allowing individuals to engage in export and import B. a country sells its postal services to a consortium of companies that runs it as a profit making venture without any state funding C. a country enlists the services of SomersConsultancy, a global management consulting firm, to improve the profitability of the state-owned airlines company D. a country allows state-owned coal companies to sell coal to private parties

B. A country sells its postal services to consortium of companies that runs it as a profit making venture without any state funding

Historically, command economies were found in __________, where collectivist goals were given priority over individual goals A. democratic countries B. communist countries C. libertarian countries D. free-market countries

B. Communist Countries

Innovation and entrepreneurial activity help increase economic activity by A. providing more authority to government officials B. creating new products and markets C. eliminating state-run enterprises D. strengthening business infrastructure

B. Creating new products and markets

Amazon.com was the earliest, major online bookstore, which allowed it to generate brand awareness and have a significant presence in the market. Amazon.com had a head start on later entrants to the online bookstore market. In this example, Amazon.com has __________ A. vertical integration advantages B. first-mover advantages C. free rider advantages D. horizontal integration advantages

B. First-Mover Advantages

Countries with free market economies in which property rights are protected tend to have __________ than command economies or economies where property rights are poorly protected A. higher population growth rates B. greater economic growth rates C. lower gross national income D. slower economic growth rates

B. Greater economic growth rates

A multinational enterprise (MNE) is a firm that: A. exports its products to multiple countries B. has production units in more than one countries C. does most of its business on the Internet D. lists its securities on a public exchange

B. Has production units in more than one country

Which of the following is a consequence of globalization? A. decreasing interdependence between national economies B. increasing outsourcing of goods and services C. increased government ownership of factors of production D. increase in barriers to cross-border trade

B. Increasing outsourcing of goods and services

The __________ committed themselves to achieving socialism without resorting to violent revolution and dictatorship A. communists B. social democrats C. maoists D. anarchists

B. Social Democrats

The common law system A. lacks the flexibility that other systems have B. is based on tradition, precedent, and custom C. gives judges the power only to apply the law D. is based on a detailed set of laws organized into codes

B. is based on tradition, precedent, and custom

Which one is a factor of production? A. tariffs B. transportation costs C. capital D. government

C. Capital

Globalization has enabled organizations to reduce their costs of production by A. differentiating material culture the world over B. setting up barriers to cross-boarder trade C. creating manufacturing units in developing countries D. turning national economies into self-contained entities

C. Creating manufacturing units in developing countries

Which one is NOT correct? a. In 1983, Steve Jobs bragged "made in America", but by 2004, Apple had largely turned to foreign manufacturing b. The ease to hire engineers was one of the important criteria for Apples' outsourcing location decision c. Foxconn did not drop the lawsuit they filed against two journalists who reported work condition at Hongfujin Precision Industry even though Apple pressured to drop the suit d. Foxconn performs final assembly of iPhone in China

C. Foxconn did not drop the lawsuit they filed against two journalists who reported work conditions at Hongfujin Precision Industry even though Apple pressured to drop the suit

United Nations has developed the Human Development Index (HDI) to measure the A. relative access to education of males and females B. total income in different nations C. quality of human life in different nations D. level of political and economic freedom available to citizens

C. Quality of human life in different nations

A legal system based on religious teaching is called a __________ A. civil law system B. traditional law system C. theocratic law system D. common law system

C. Theocratic Law System

Which of the following statements is true about caste system? A. in a caste system, social position is determined by individual performance B. a caste system is an open system of social mobility C. a caste system is characterized by high social mobility D. a caste system is a rigid form of social stratification

D. A caste system is a rigid form of social stratification

Which of the following expresses one of the reasons why managing an international business is different from managing a purely domestic business? A. the range of problems confronted by a manager in a domestic business is wider and the problems more complex that those confronted by a manager in an international business B. international business transactions use the Euro instead of the U.S. dollar C. an international business does not need to contend with government intervention whereas a domestic business must work within the confines of their local government D. an international business must find ways to work within the limits imposed by government intervention in the international trade and investment system

D. An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system

What is the concept of understanding how cultural differences across and within nations can affect the way business is conducted? A. social strata B. cultural norms C. social consciousness D. cross-cultural literacy

D. Cross-Cultural Literacy

The shift toward a more integrated and interdependent world economy is referred to as A. outsourcing B. international marketing C. privatization D. globalization

D. Globalization

_____ is the raw material of the information age

Data

The dollar auction illustrates what?

Escalation of Commitment

Entrepreneurs and business-owners of high uncertainty avoidance cultures will be more willing to take risks and make changes

False

In a command economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning

False

In calculating GNI data in some countries, the official figures take into account the barter agreements that take place as part of daily business transactions

False

It can be more costly to do business in a country where there are no laws and regulations with regard to product safety

False

People who violate folkways are considered to be evil or bad

False

Since the 1960s, a notable trend in the demographics of the multinational enterprise has been the rise of U.S. multinationals

False

______ was the raw material of the agricultural age

Led

intellectual property

Patents, copyrights, and trademarks establish ownership rights over intellectual property

_______ was the raw material of the industrial age

Steel

A mudarabah contract of Islamic banks is similar to a profit-sharing scheme

True

GNI per person figures can be misleading because they don't consider differences in the cost

True

Hofstede's power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities

True

In the early twentieth century, the socialist ideology split into two broad camps: communists and social democrats

True

One concern frequently voiced by those opposed to globalization is that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies such as the United States and Western Europe

True

Trademarks

design and names by which merchants or manufacturers designate and differentiate their products

Patents

exclusive rights for a defined period to the manufacture, use, or sale of that invention

Copyrights

exclusive rights of author, composers, playwrights, artists, and publishers to publish and disperse their work