Chapter 4

free enterprise system

An economic system in which people are free to operate their businesses as they see fit, with little government interference.

How did intel eliminate conflict minerals from their supply chain?

By collaborating with most suppliers in the chain including smelters, processors, and traders

According to the United Nations, a feature of democracy is:

Fair elections, an independent government, and a government with balance of powers

Government has distinctive resources and competencies including

Knowledge of public policy, ability to enforce the rules, and revenue from taxation

The primary purpose of the International Monetary Fund is to

Lend foreign currency to member countries.

The term "race to the bottom" refers to:

Moving production jobs to the country with the lowest labor cost

Three Stages of Globalization

Sell, make, and buy

An example of Global Action Network, or GAN, is

The Kimberly process

Global market channels involve a firm producing goods in

Their home country and exporting them to other countries

What country does communist parties still remain?

Vietnam

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

weak health and safety regulations

Microfinance refers to banks

Lending money to low income businesses

What are examples of international financial and trade institutions?

World bank, International Monetary Fund, and world trade organization

central state control system

economic power is concentrated in the hands of government officials and political authorities

A firm that would like to develop a global supply chain would:

purchase raw materials, components, or supplies from sellers in other countries