econ midterm 1
What is an accurate characterization of the role of international business investments in Latin America today? a. Foreign investment by Western international business is frowned upon. b. Debt and inflation are down and foreign investment is welcomed. c. Latin America is plagued with low growth, high debt, and hyperinflation that discourages investment. d. Latin American governments are purchasing businesses from private investors. e. There are fewer opportunities for investment because of communist rule.
b. Debt and inflation are down and foreign investment is welcomed.
Ultimately, product safety and product liability laws are in place to protect
consumers
The U.S.'s and France's economic growth today are both examples of
cutting-edge growth
Technology Solutions, a U.S.-based company, is planning to expand operations to a foreign country. Considering the factors that make a country attractive as a place in which to do business, which country should Technology Solutions consider for entry? a) Country A, which lacks democratic institutions and has a market-based economic system b) Country B, which has democratic institutions and where economic activity is heavily regulated by the state c) Country C, which has democratic institutions and where corruption is rampant d) Country D, which has democratic institutions and a market-based economic system e) Country E, which lacks democratic institutions and where property rights are always respected
d) Country D, which has democratic institutions and a market-based economic system
Which of the following is a factor that has contributed to Hungary's move toward an autocracy? a) The government removed tariffs to encourage international trade. b) The government privatized many smaller state-owned enterprises. c) The government has removed all price controls to help businesses grow more quickly. d) The government has directed public spending toward businesses owned by the political party leader and his allies and associates. e) The government developed stock markets.
d) The government has directed public spending toward businesses owned by the political party leader and his allies and associates.
The commercial jet aircraft market a) reflects the need for domestic competition to spur innovation. b) indicates that national markets in consumer goods are now homogenous. c) suggests that national economies are largely self-sufficient. d) can best be described as a global market.
d) can best be described as a global market.
Using the information on political economy in your text and the case above, how would you characterize Russia's political economy under Putin - practically, as opposed to technically? a) socialist state b) pseudo-democracy c) pure market economy d) dictatorship e) pure command economy
d) dictatorship
A country's __________ system is one of the three parts of the political economy. a) religious b) value c) demographic d) legal e) technological
d) legal
For companies, Venezuela a) has a large and underserved market and warrants significant investment. b) would only be an option if an agreement could be reached with top government officials. c) is competitively less risky and warrants a closer look. d) would likely be considered a highly risky destination for doing business. e) is an ethical destination for business as long as the company chooses to avoid corrupt officials.
d) would likely be considered a highly risky destination for doing business.
The WTO arbitrates trade disputes between its member states. What is one power of particular interest that the WTO can use? a. It can restrict the membership of nations in other supranational organizations such as the United Nations. b. It can grant loans to cash-strapped governments in poor nations. c. It supersedes the IMF and has complete authority over the IMF's actions. d. It can issue a ruling instructing a member-state to change trade policies that violate GATT regulations. e. It can make decisions related to international trade without considering the collective interests of member-states.
d. It can issue a ruling instructing a member-state to change trade policies that violate GATT regulations.
Carlan bought his son, Ephron, a computer two years ago. Recently, he decided to buy his daughter, Betsy, a computer of her own. When applying Moore's Law to the two-year gap between the purchase of the computers, it is most likely that a. Carlan paid a higher price for Betsy's computer. b. Ephron's computer would have a microprocessor with better power than that of Betsy's. c. both Ephron's and Betsy's computers would cost Carlan the same price. d. the microprocessor in Betsy's computer would be more advanced in terms of power than that of Ephron's. e. the power of the microprocessors, in both Ephron's and Betsy's computers, would be the same.
d. the microprocessor in Betsy's computer would be more advanced in terms of power than that of Ephron's.
Which country has seen their share of world output increase the most from 1960 to today? a) the United States b) The United Kingdom c) Japan d) Germany e) China
e) China
Today, the main reason that North Korea has far fewer lights when viewed from outer space than South Korea is that a) North Korea's population is more dispersed than South Korea's. b) North Koreans have different norms around using electricity than South Korea. c) North Korea has less available energy than South Korea. d) North Korea has fewer people than South Korea. e) North Korea has different institutions than South Korea.
e) North Korea has different institutions than South Korea.
Based on the information on political economy in the text and the case on Russia above, which statement best characterizes the situation in Russia? a) The country is very close to true democracy. b) Bribery is likely to be fairly low as a result of the authoritarian state. c) Greater privatization should be expected in the short term. d) Further nationalization of business should not be expected. e) There is probably a high level of corruption within the government.
e) There is probably a high level of corruption within the government.
Totalitarian states usually have a) free and fair elections. b) free access to state information. c) all the basic civil liberties for citizens. d) the right to freedom of expression and organization. e) a lack of free and fair elections.
e) a lack of free and fair elections.
Hungary's economic growth in the 1990s can largely be attributed to a) the nationalization of major industries. b) its lack of privatization reform. c) its focus on enlarging government-run sectors like agriculture. d) the growth of its state-owned companies. e) its shift toward a market-based economic system.
e) its shift toward a market-based economic system.
China's economic growth from the late 1970s to the present can largely be attributed to a) the nationalization of major industries. b) the growth of its state-owned companies. c) its focus on enlarging government-run sectors like agriculture. d) its lack of privatization reform. e) its shift toward more private enterprises.
e) its shift toward more private enterprises.
Immediately after the collapse of the Soviet Union in 1991, what type of economic system was Russia moving toward? a) mixed b) totalitarian c) command d) socialist e) market
e) market
Which is not a factor contributing to economic growth in China since the 1970s? a) privatization of many smaller state-owned enterprises b) removal of price controls c) increase in international trade d) development of stock markets e) nationalization of most vital industrial sectors
e) nationalization of most vital industrial sectors
The growth of trade as a percentage of global GDP a) indicates growing isolationism among countries, especially developing economies. b) represents an argument for greater barriers to trade. c) is surprising given the level of conflict among nations. d) suggests that the United States is increasing its role as the most dominant player in global trade. e) reflects the globalization of markets
e) reflects the globalization of markets
California-based Fresh Food Groups has invested resources in production facilities in Mexico. What type of business activity does this represent?
foreign direct investment
Silky Skin Care, a U.S.-based beauty products manufacturer, has built a manufacturing plant in the Philippines. This is an example of
foreign direct investment
What is the term for the shift toward a more integrated and interdependent world economy?
globalization
Johnson Manufacturing produces kitchen and bathroom fixtures and currently sources component parts for these from fifteen different companies around the globe. They use these sources to take advantage of lower costs. This demonstrates the idea of
globalization of production
Kettle Moraine Corporation sources goods and services for its gardening products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice is an example of the
globalization of production
One cost-cutting measure used by Garrett's Garage Door Co. is sourcing the parts it uses from companies in Germany, Brazil, and Mexico that are more economical than home-country sources. The choice to use these sources is an example of the
globalization of production
Which best describes Apple's sourcing of components from other countries for assembly in China?
globalization of production
Which term best describes what takes place when a German supplier exports advanced microprocessors to Apple?
international trade
An economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced is called a __________ system.
market
What are mini-multinationals?
medium- and small-sized multinationals
A U.S.-based company specializes in protective clothing to be worn at the beach or pool. The company recently opened a production facility in Mexico and another in China. What type of enterprise is this?
multinational
In just a few years, thanks to the policies and actions of its undemocratic and authoritarian economy, Venezuela has gone from being a prosperous country to a nation with widespread poverty. We use the term _______________ to indicate that a country's political, economic, and legal system are interdependent, and influence the country's level of economic well-being.
political economy
The sale of state-owned enterprises to independent, nonpublic investors is referred to as
privatization
What country has seen a relative decline in its share of world output between 1960 and 2022? The United States Brazil Thailand China South Korea
the United States
Apple's strategy has been impacted by tariffs imposed by Donald Trump on parts imported from China. Which institution is responsible for ensuring countries adhere to their trade treaties?
the World Trade Organization
When considering globalization, what is thought to be the single most important innovation since World War II?
the microprocessor
What political system has a government in which one political party exercises absolute control over all spheres of human life and doesn't allow opposing political parties to exist?
totalitarianism
The distinctive Nike logo can only be used on sports equipment produced by Nike. What protects the Nike logo from being used by another manufacturer?
trademark
True or false? Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.
true
According to globalization opponents, what has increased in wealthy advanced economies due to outsourcing?
unemployment
True or False? The COVID-19 global pandemic has had minimal impact on global supply chains.
False
True or false? The term political economy is used to stress the fact that the political, economic, and legal systems of a country are independent of each other and do not influence one another.
False
What was the precursor of the WTO?
GATT (General Agreement on Tariffs and Trade)
Which two organizations are collectively referred to as The World Bank? [Select 2!] GATT, IFC, IDA, MIGA, ICSID, IBRD
IDA (International Development Association) and IBRD (International Bank for Reconstruction and Development)
Match the following organizations to their main purpose. World Bank, International Monetary Fund, United Nations, and World Trade Organization 1. Focus: international political stability - an organization promoting peace, dignity and equality on a healthy planet 2. Focus: international financial stability (short-term help) - an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world 3. Focus: international economic development (long-term perspective) - an organization providing financial and technical assistance to developing countries around the world in an effort to reduce poverty 4. Focus: international trade - and organization developing trade agreements between nations to encourage cross-border commerce; this includes setting up the agreeme
World Bank: 3 International Monetary Fund: 2 United Nations: 1 World Trade Organization: 4
Apple is headquartered in the United States, assembles its product in China, but imports components from Taiwan and other countries. Which best describes Apple?
a multinational company
Adidas AG is an athletic apparel and footwear company that is headquartered in Germany. It has factories in the UK, Italy, Spain, Sweden, and other countries in Eastern and Central Europe. Adidas AG is an example of
a multinational enterprise
Which of the following was one of the reforms established by the Communist Party in 1986 to stimulate the economy in Vietnam? Question options: a) Agricultural land was privatized. b) Price controls were added. c) Agricultural land became state owned. d) Barriers to foreign direct investment were heightened. e) Rules restricting the establishment of private enterprises increased.
a) Agricultural land was privatized.
When Korea split into two countries in 1945, the northern and southern portions were similar if not identical in all of the following except a) Institutions b) Language c) Human capital d) Real GDP per capita
a) Institutions
The political system in Venezuela reflects the ideals of a) communist totalitarianism. b) individualism. c) theocratic totalitarianism. d) representative democracy. e) tribal totalitarianism.
a) communist totalitarianism.
A payment made to expedite or to secure the performance of a routine governmental action is called a a) grease payment. b) tariff. c) government fee. d) protection payout. e) lump payment.
a) grease payment.
Which best describes what takes place when a Chinese supplier of bicycle parts exports bike seats to Detroit Bikes? a) international trade b) the General Agreement on Trade and Tariffs c) foreign direct investment d) globalization e) Moore's Law
a) international trade
How can Russia's economic system best be described during Vladimir Putin's years as leader? a) mixed b) market c) totalitarian d) socialist e) command
a) mixed
Intellectual property laws protect a) the originator of a new invention. b) government officials when traveling to foreign countries. c) the parts supplier in an international transaction. d) individuals who want to open a franchise of a retail store. e) a company from losing business to a monopoly.
a) the originator of a new invention.
Since 2010, Hungary's government has had elements of a) an oligarchy. b) a kleptocracy. c) a democracy. d) a theocracy. e) a republic.
b) a kleptocracy.
Detroit Bike is located in the United States, assembles its product in the United States, but imports components from China and other countries. Which best describes Detroit Bikes? a) an exporter b) an international business c) a foreign investor d) a transnational company e) a multinational company
b) an international business
China's state-owned enterprises a) are primarily limited to the information technology sector. b) are less productive than its private sector businesses. c) have largely been replaced across all sectors with privately held companies. d) are an indication of its thriving market economy. e) reflect the commitment of China to democratic ideals.
b) are less productive than its private sector businesses.
A major factor leading to Vietnam's current economic problems is its Question options: a) freedom of assembly and the press. b) corrupt privatization processes. c) independent, nonpolitical court system. d) increase in independent political parties, labor unions, and human rights organizations. e) lack of price controls on certain commodities.
b) corrupt privatization processes.
Boeing's 787 aircraft is produced by 50 suppliers spread around the world, a huge increase in global outsourcing as compared to the past. Boeing's strategy, like that of other multinational companies, suggests that a) as compared to foreign producers Boeing is more efficient at producing component parts. b) declining barriers to trade and investment are facilitating global production strategies. c) Boeing's cost structure is higher than it should be. d) the manufacturing capabilities of suppliers in other nations is declining. e) time zones and language differences remain significant impediments to global trade.
b) declining barriers to trade and investment are facilitating global production strategies.
Venezuela's economic system can best be described as a a) democracy. b) mixed economy. c) market economy. d) pseudo-economy. e) command economy.
b) mixed economy.
Communists believed that socialism could only be achieved through a) state-owned enterprises. b) totalitarian dictatorship. c) the free flow of goods. d) democratic principles. e) a mixed economy.
b) totalitarian dictatorship.
Detroit Bike's strategy has been impacted by tariffs imposed by Donald Trump on parts imported from China. Which institution is responsible for ensuring countries adhere to their trade treaties? a)The General Agreement on Trade and Tariffs b) The World Trade Organization c) The International Monetary Fund d) The World Bank e) The United Nations
b) The World Trade Organization
Match the description with the correct organization. GATT, Bretton Woods Institutions, WTO, UN, GTO 1. Finance ministers and central bank governors of major economies coordinate policy on global financial crises. 2. A series of treaties that reduced barriers to trade. 3. The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth. 4. Primarily responsible for policing world trade system. 5. As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.
2, 3, 4, 5, 1
Select the most appropriate action—public (1) or private (2)—in terms of property rights and legal protections for each. - Legal Mechanisms: You've learned your firm will face very expensive new licensing fees and a new tax regulation that targets foreign firms - Corruption: You face demands from government officials that will be required before you are allowed to do business - Bribery: A government official is demanding payments before he will allow your firm to be considered for a procurement bid - Weak Legal System: You have a contract, but your customer is now refusing to pay for merchandise already received, and the courts aren't willing to help you - Theft or Blackmail: A group of hackers based in the country where your firm wishes to conduct business has broken into your database and is demanding payment - Organized Crime: Your business is told to pay a group of individuals or face violent retribution
1, 1, 1, 2, 2, 2
For each issue, decide whether the description of the argument is an Argument For Globalization (1) or an Argument Against Globalization (2). - Increased efficiency of the whole economy. - Living standards improve. - Tougher environmental regulations follow economic progress. - Real power resides with nation-states. - The gap between the rich and the poor nations of the world has gotten wider. - Lack of adequate regulations to protect the environment. - Economic power shifts from nations to international institutions. - Manufacturing jobs move to low-wage countries.
1, 1, 1, 1, 2, 2, 2, 2
Match the correct category with the description of the change associated with it. The Changing World Order, The Changing FDI Picture, The Changing Nature of the Multinational Enterprise, The Changing World Output and World Trade Picture 1. In 1970, China's Hisense started with 10 employees. Today, it has sales of $7 billion, with overseas anufacturing subsidiaries in Algeria, Hungary, etc. 2. Toyota rapidly increased its investment in auto production facilities in the United States and Europe during the late 1980s and early 1990s. 3. It's estimated that today's developing nations may account for more than 60% of world economic activity by 2030, while rich nations' economic activity, currently at 55%, may decline to 38%. 4. China continues to move toward greater free market reforms. If this continues for two more decades, China may move from third-world to industrial superpower status more rapidly than Japan did.
4, 2, 1, 3
Match the driving force to the correct description and implication for business. Driver - declining investment barriers Driver - declining trade barriers Driver - technology: computing and communication Driver - technology: transportation 1. Implication - explosive growth of high-power, low-cost computing and growth in services 2. Implication - faster and cheaper shipping and optimal production 3. Implication - lower tariffs and increased international trade in goods and services 4. Implication - rapid FDI growth and new production opportunities and new markets
4, 3, 1, 2
In 2020, GDP per capita in Canada was CAN$61,842 while in the U.S. it was US$64,799. The US$ to CAN$ exchange rate was 1.33 CAN$ for 1 US$. If the price level in the U.S. was US$100, the price level in Canada was CAN$119.7. That is, a basket of goods that costs US$100 in the U.S. costs CAN$119.7 in Canada. Without PPP adjustment, Canadian GDP per capita was US$________. [Round to the nearest tenth of a US$.]
46,497.7
Match the description with the correct political system. Tribal Totalitarianism, Representative Democracy, Right-Wing Totalitarianism, Communist Totalitarianism, Social Democracy, Theocratic Totalitarianism 1. China: Xi Jinping, the new party chief, has said officials need to guard against corruption as its spread would doom the party and the state. 2. France: State-owned enterprises allow for the "public good rather than the private profit." 3. Saudi Arabia: Ruled by an Islamic absolute monarchy. 4. United States: Two major political parties field candidates for federal, state, and local elections. 5. Zimbabwe: Defeated in 2008 parliamentary elections, President Mugabe remains in power today. 6. Italy in the 1930s: Benito Mussolini's dictatorship.
5, 4, 6, 1, 2, 3
In 2020, GDP per capita in Canada was CAN$61,842 while in the U.S. it was US$64,799. The US$ to CAN$ exchange rate was 1.33 CAN$ for 1 US$. If the price level in the U.S. was US$100, the price level in Canada was CAN$119.7. That is, a basket of goods that costs US$100 in the U.S. costs CAN$119.7 in Canada. With PPP adjustment, Canadian GDP per capita was US$________. [Round to the nearest tenth of a US$.]
51,664.2
Match the following characteristics of the G20: 1. two-thirds 2. 85% 3. 75% 4. 1999 5. 2008 6. global crises 7. informal forum The G20 aims to fight or prevent ________. The G20 was heavily involved in dealing with the global financial crisis of _____. The G20 represents about _______ of the world's population. The G20 was created in December of _______. The G20 represents about ________ of global GDP. The G20 is a(n) _______. The G20 represents about ________ of global trade.
6, 5, 1, 4, 2, 7, 3
Which of the following international organizations are non-governmental [select all that apply]: Nato, Doctors Without Borders, International Red Cross, Amnesty International, United Nations, Peace Corps, World Trade Organization, Oxfam
Doctors Without Borders, International Red Cross, Amnesty International, and Oxfam
Which of the following international organizations are governmental [select all that apply]: Nato, Doctors Without Borders, International Red Cross, Amnesty International, United Nations, Peace Corps, World Trade Organization, Oxfam
Nato, Peace Corps, United Nations, and World Trade Organization
In 2020, GDP per capita in Canada was CAN$61,842 while in the U.S. it was US$64,799. The US$ to CAN$ exchange rate was 1.33 CAN$ for 1 US$. If the price level in the U.S. was US$100, the price level in Canada was CAN$119.7. That is, a basket of goods that costs US$100 in the U.S. costs CAN$119.7 in Canada. True or false? Adjusted for exchange rates, the price level in Canada is lower than the price level in the U.S.
True
In 2020, GDP per capita in Canada was CAN$61,842 while in the U.S. it was US$64,799. The US$ to CAN$ exchange rate was 1.33 CAN$ for 1 US$. If the price level in the U.S. was US$100, the price level in Canada was CAN$119.7. That is, a basket of goods that costs US$100 in the U.S. costs CAN$119.7 in Canada. True or false? With PPP adjustment, GDP per capita appears closer to that in the U.S. than GDP per capita without PPP adjustment because the general price level in Canada is lower than it is in the U.S..
True
True or false? A nation that has inadequate enforcement of property rights reduces the motivation for innovative activity which tends to impede economic growth.
True
True or false? Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth define innovation broadly to include not just new products, but also new processes, new organizations, new management practices, and new strategies.
True
True or false? In a planned economy, there is little freedom for entrepreneurial activity which leads to weaker cutting-edge growth.
True
Which of these companies is taking advantage of the globalization of production? a. Designer Fabrics, an American textile manufacturer, buys fabric from France and exports it to India for garment production. b. Tryon Group, a U.S.-based fashion designer, is planning to open a flagship store in China to serve the Asian market. c. Mary Jones, Ltd., a U.K. facial products company, serves customers worldwide through its local franchises. d. Fast Channel Incorporated uses sales personnel from the respective host country to sell its products and services. e. Mario's, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers.
a. Designer Fabrics, an American textile manufacturer, buys fabric from France and exports it to India for garment production.
Which statement reflects the changing demographics of the global economy? a. U.S. dominance in export markets has waned as Japan, Germany, and a number of newly industrialized countries have taken a larger share of world exports. b. The change in the position of the United States in terms of the share of world output is the result of the absolute decline in the health of the global economy. c. From 1960 to today, countries that experienced a large decrease in their share of world output include Japan, Thailand, Malaysia, Taiwan, and South Korea. d. The United States is the only developed nation to see its relative standing in the share of world output slip. e. Today, roughly half the globe—the centrally planned economies of the communist world—is off-limits to Western international businesses.
a. U.S. dominance in export markets has waned as Japan, Germany, and a number of newly industrialized countries have taken a larger share of world exports.
Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the a. migration of low-wage manufacturing jobs offshore. b. technology-induced shift toward jobs that require significant education and skills. c. increased supply of highly skilled workers. d. increasing demand for unskilled workers. e. reducing national differences in the cost of labor between developed and developing nations.
a. migration of low-wage manufacturing jobs offshore.
Fast food chain restaurants promote different menu choices in different countries depending on a range of factors such as demographics, local taste, income levels, and cultural values. This demonstrates that a. significant differences still exist among national markets. b. cultural diversity has been replaced by global uniformity. c. the global market is less complex than national markets. d. only multinational giants can benefit from the globalization of markets. e. the social norms in a country do not affect purchase decisions of consumers.
a. significant differences still exist among national markets.
While the lowering of trade barriers made globalization of markets and production a theoretical possibility, what has made it a tangible reality? a. the advances in communication, information processing, and transportation technologies b. the rise of communism and the need for independent economies on a global scale c. the increasing diversity in consumer tastes and preferences worldwide d. the increasing differences in material culture the world over e. the decreasing significance of the World Trade Organization
a. the advances in communication, information processing, and transportation technologies
Which best characterizes the political system in China? a) China is an imperfect democracy. b) China is a one-party state. c) China has a pseudo-democracy. d) China has a representative democracy. e) China has a multiparty state dominated by the Communist regime.
b) China is a one-party state.
Which best characterizes the political system in Hungary? a) Hungary has a multiparty state dominated by the Communist regime. b) Hungary is moving from a pseudo-democracy toward a one-party state. c) Hungary has a well-functioning representative democracy. d) Hungary is moving from a one-party state to a representative democracy.
b) Hungary is moving from a pseudo-democracy toward a one-party state.
An oil company recently moved its operations from Dallas, Texas, to Somalia. The decision to move was the result of new federal regulations regarding clean air standards that all petroleum corporations are subjected to. A critic of globalization would say this example demonstrates what concern? a. Free trade discourages firms from advanced nations to move manufacturing facilities to less developed countries. b. Facilities in advanced nations are moving to less developed countries that have lower environmental regulations. c. Manufacturing enterprises are put at a competitive disadvantage by moving their production facilities to nations that do not have burdensome regulations. d. As countries get richer, they relax their environmental and labor regulations. e. More countries are working to meet the strict environmental standards set by the U.S. government.
b. Facilities in advanced nations are moving to less developed countries that have lower environmental regulations.
What is implied by the fact that in today's marketplace, the volume of world trade has been growing faster than world GDP? a. More companies are relying on domestic firms to obtain parts of their production process. b. The world has become significantly wealthier in the last four decades. c. Fewer companies are dispersing parts of their production process to locations around the globe. d. The world has experienced a loss of overall wealth in the last two decades. e. More countries are imposing trade barriers to minimize competition.
b. The world has become significantly wealthier in the last four decades.
An argument in support of the falling barriers to international trade and investment is that the falling barriers a. prohibit countries from specializing in the production of goods and services. b. drive the global economy toward greater prosperity. c. reduce the need to export jobs overseas. d. increase the bargaining power of business firms by decreasing the incomes of consumers. e. reduce attacks from foreign competitors.
b. drive the global economy toward greater prosperity.
Which best describes Detroit Bike's sourcing of components from other countries for assembly in the United States? a) globalization b) globalization of markets c) globalization of production d) factors of production
c) globalization of production
Boeing produced just 5 percent of its original 737s and 747s outside the United States but produces 65 percent of its newer 787s in foreign locations. Boeing's production strategy a) suggests that Boeing has lost its edge in product design. b) indicates the presence of trade barriers in the United States. c) reflects the globalization of production. d) suggests falling raw material costs require international production. implies that outsourcing services is virtually impossible.
c) reflects the globalization of production.
After reading Chapter 3, Vietnam's economic growth as described in the opening case is an example of
catching-up growth
Japan's and Germany's economic growth after World War II are both examples of
catching-up growth
As a judge in Germany, Wilhelm is not allowed to interpret the law but relies on a strict set of codes to determine the outcome of a case. Which type of law is in place in Germany?
civil law system
Some countries downplay individual goals and emphasize the collective goals of the country. These political systems stress
collectivism
An economic system where the allocation of resources, including determination of what goods and services should be produced, and in what quantity, is planned by the government is a(n) __________ economy.
command
Historically, __________ economies were found in communist countries where collectivist goals were given priority over individual goals.
command
The United Nations Convention on Contracts for the International Sale of Goods (CISG) was introduced to a) set up a legal mechanism that will help protect a firm when its product causes injury, death, or damage. b) make it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority. c) specify the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource. d) allow establishing ownership over intellectual property such as a computer software or a new drug. e) resolve disputes that arise in international trade regarding which country's laws to apply.
e) resolve disputes that arise in international trade regarding which country's laws to apply.
Zeke is the executive general manager of a United States-based multinational corporation. Masha is a manager in a similar position but works for an American company that operates only in the U.S. and does not engage in international business. In this context, which business function will most typically be exclusive to Zeke? a. marketing a product or service b. maintaining healthy relations with the U.S. government c. developing a business strategy d. adhering to labor and environmental standards e. choosing an appropriate mode for entering a particular foreign country
e. choosing an appropriate mode for entering a particular foreign country
One of the two macro factors underlying the trend toward greater globalization is the a. rise of communism across the globe. b. increase in nationalization of private organizations. c. increase in diversity in consumer tastes and preferences. d. increase in trade regulations across the globe. e. dramatic developments in information processing and other technologies.
e. dramatic developments in information processing and other technologies.
The labor, energy, land, and capital a country relies on to source goods and services are known as
factors of production
