Global Exam 1

In this stage, technically advanced products are produced and consumed in developed nations. The producer focuses on the domestic customer, who provides market feedback, allowing the producer to adjust the product to better respond to demand. Which stage of the international product life cycle is described?

Introduction

Jim, an independent trader, conducts his business transactions using digital forms of money that are not regulated by any national government. Jim uses this digital means of exchange with his trading partners as well. In this scenario, Jim uses currencies known as ________.

Cryptocurrencies

Nations are increasingly connected by trade, technology, and economic trends. Which of these sets of developments spurred globalization the most?

Free trade agreements, express shipping, and broadband

What is a standard in which a dollar has intrinsic value because anyone holding it could trade it for a specified amount of gold at a government-approved bank?

Gold standard

A U.S. firm is approached by the government of a developing nation to build a turnkey facility that will be used for research and development operations. The foreign nation has experienced financial instability in recent years and has a fiat currency. Which is the BEST way that the U.S. firm should proceed if it wants to participate in foreign direct investment for the country's long-term development?

Accept U.S. dollars and percent of chemical revenues

In 2019, Tesla started construction on a massive 2-billion-dollar plant in Shanghai called a gigafactory. China hosts a handful of attractive reasons for Tesla to benefit from, such as a mature industrial supply chain and the raw material and manufacturing capabilities needed to produce key electronic parts like lithium batteries. What does Tesla's decision represent?

Acquisition of new resources and knowledge

Culture, which is society's unique set of values and norms that govern how people live and interact, is often compared to an iceberg for what reason?

An iceberg can be seen above water (i.e., visual aspects), while part of it is hidden under the water (i.e., influences more difficult to discern).

Which of the following is NOT one of the three major objectives that motivate companies to engage in international business?

Avoid external factors in their domestic market

A factory's equipment, a stock certificate of a company, and a plot of land are all examples of resources of wealth that can produce revenue. What is the name of this revenue generating resource?

Capital

________ generally, refers to a resource that can serve to generate wealth, such as factories, equipment, investment accounts, software, land, and education.

Capital

A pharmaceutical company plans to develop, test, and patent a drug to cure Alzheimer's disease. Which type of economic system would MOST likely allow the firm to maintain ownership of its patent without requiring a portion of the proceeds?

Capitalist

Civil law is a type of legal system that provides a comprehensive code of written law; however, it differs from other legal systems such as common law and customary law based upon one key distinction. What differentiates civil law from the other legal systems?

Judges are not bound by earlier rulings and instead interpret the law based upon a written constitution and detailed statutory code that is always binding.

A nation is instituting heavy tariffs on imports, giving subsidies to exports, and imposing controls on what can be traded domestically. The nation is also using monetary policy to control currency exchange. This nation is an example of what government trading model?

Neo-mercantilism

A country will host national elections to choose its legislative body of government. These elected officials will form a cabinet amongst themselves. This is MOST likely reflective of which political system?

Parliamentary government

China's policies on currency, trade, and investment led to nearly two decades of rapid economic growth, slowing down in the 2010s but then picking back up after the COVID pandemic. This is an example of which concept?

Political system

The American colonies declaring independence from the British Empire in 1776 allowed for increased trade and business between countries with strong cultural and political differences. This is an example of which concept?

Sovereign globalization

Borivia is a country in Eastern Europe that was ruled by Auleria, a country in Western Europe, for over a century. It gained independence from Auleria in 1923. Now, Borivia has its own government. Given this information, it can be said that Borivia is a(n) ________.

Sovereign nation

Sharia law provides for lenders to purchase goods a business needs to buy and then to sell those goods to the business at an agreed‐upon markup. Beehive, a novel loan maker based in Dubai, offers peer‐to‐peer lending that is Sharia‐compliant. This is an example of which of the following legal systems?

Theocratic law

The Mexican government reformed its energy policies in 2021 to limit the private ownership of energy plants and private consumers. How will this affect a company's ability to conduct international business in this market?

This change significantly discourages foreign energy investments because those policies make it difficult for any private companies to be successful in the Mexican market.

Which of the following would NOT be considered a visible aspect of culture?

Values