IB Test 1
Which of the following is a more attractive place to do business?
A nation with a market based economic system
Who was the author of "The Wealth of Nations"?
Adam Smith
Many of the national markets of Eastern Europe, Latin America, Africa, and Asia may still be underdeveloped, but they are potentially enormous. Which of the following is a risk to businesses moving into these regions?
There is no guarantee that democracy will thrive in many of the worlds newer democratic states
Newly privatized entities often have little incentive to restructure their operations to become more efficient when
They continue to receive subsidies from the state
Which of the following statements is true about trademarks?
Trademarks are designs and names by which businesses differentiate their products
opponents of globalization argue that falling trade barriers
allow firms to move production to countries with low wages
The foreign corrupt practices act was amended in order to
allow for facilitating payments
Ford was the first company to mass-produce cars in the united states. this gave ford a first mover advantage, which is
an economic and strategic advantage that accrues to early entrants into an industry
An American executive of a multinational home-furnishings chain finds that one of the company's production units in Philippines employs children to work in its factories. However, most of the children employed at the factory are orphans who will be sold as forced labor or pushed into prostitution, if they lose their jobs. The executive finds that all the available alternatives seem ethically unacceptable. In this example, the American executive faces
an ethical dilemma
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. What is this an example of?
an ethical dilemma and cultural relativism
which of the following statements is true about the righteous moralist approach to ethics?
the righteous moralist approach is typically associated with managers from developed nations
Jonathans family makes a point to sit down to dinner together every night. This is an example of folkways, which are characterized by
the routine conventions of everyday life
The government of Iran is ruled by religious figures and they endure that citizens adhere to islamic teachings. Iran is a _________ law system.
theocratic
Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because of which of the following
they may be based in a culture that does not place the same value on ethical norms important in the managers home country
Systems that emphasize collectivism have a greater tendency to end up in
totalitarian
Which of the following is a reason for the spread of democracy?
totalitarian regimes failing to deliver economic progress to the majority of their populations
Constant returns to specialization occurs when
units of resources required to produce a good remain stable regardless of the country's position on the production possibility frontier
Contracts drafted under a common law framework tend to be
very detailed with contingencies spelled out
As a philosophy for business ethics, utilitarianism focuses attention on the need to
weigh carefully all social benefits and costs of a business action
Flags, Food, Festivals, and Finery are examples of what
Big C Culture
What nation has implemented a "social credit system?"
China
It has been argued that the success of Japanese enterprises in the global economy has been based partly on which of the following?
Cooperation between a company and its suppliers on issues such as design, quality control, and inventory reduction
Which of the following factors contributed to the great depression of the 1930s?
Countries progressively raising trade barriers against each other
________ refers to a set of moral principals, or values, that are used to guide and shape behavior
Ethical System
Which of the following is true about planned economies?
In an planned economy, the state owns all means of production
in a(n) _____ society, the welfare of society is best served by letting people pursue their own economic self interest.
Individualist
The_________ is often seen as the lender of last resort
International Monetary Fund
Which of the following statements about globalization is NOT true?
It benefits everyone equally and unconditionally
Modern socialists trace their intellectual roots to ______, although socialist thought clearly predates this idividual.
Karl Marx
In the reading, french farmers vandalized an under construction branch of which international franchise in protest of American trade policies?
McDonalds
Hofstede's masculinity versus femininity dimension examined
the relationship between gender and work roles
Which of the following is a feature of right wing totalitarianism?
Provision of partial individual economic freedom along with restricted individual political freedom
Which of the following theories explains global trade in terms of the international differences in labor productivity?
Ricardo's theory of competitive advantage
which of the following is an example of an advanced factor, as proposed by porter, that a nation will posses?
Skilled labor
The all emissions corporation moved its automobile production plant to a country in South America because it could freely dump waste products in the nearby ocean. By doing this, the corporation is contributing to the concept of
The tragedy of the commons
The ____ was created in 1944 by 44 nations that met in Bretton wood, NH to promote economic development
World Bank
Priyansh grew up in India, where caste systems have become less prevalent. Which of the following statements is true about a caste system?
a caste system is a rigid form of social stratification
Which of the following exemplifies privatization?
a country sells its postal service to a consortium of companies that runs it as a profit making venture without any state funding
Free trade refers to a situation where
a government does not try to influence what its citizens can buy from global markets
Geert Hofstede added the dimension of indulgence to the world values survey to refer to
a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun
Porter argues that a nation's firms should
adopt policies that promote strong competition within domestic markets.
Which of these is a characteristic of a pure command economy
all businesses owned by the state
According to the findings of the World Values Survey
as countries get richer, there seems to be a shift from survival values to well being values
The common law system is
based on tradition, precedent, and custom
Foreign direct investment occurs when a firm invests resources in
business activities outside its home country
When _____ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society." A. individualism B. totalitarianism C. collectivism D. theocracy
collectivism
Historically, command economies were found in ______ countries, whereas collectivist goals were given priority over individual goals
communist
Globalization has enabled organizations to reduce their costs of production by
creating manufacturing units in developing countries
Innovation and entrepreneurial activity help increase economic activity by
creating new products and markets
from an international business perspective, some argue that what is ethical
depends on ones cultural perspective
A factory in Mexico produces millions of plumbuses a year, and has been able to reduce its costs per unit as it increased its production. This demonstrates the concept of
economies of scale
The role of government in a market economy involves
encouraging vigorous free and fair competition among private producers
Which of the following actions was implemented in the Uruguay round, finalized in December 1993?
establishment of the World Trade Organization
Belief in the superiority of one's own culture is known as
ethnocenterism
Factor endowments refer to the
extent to which a country is gifted with such resources as land, labor, and capital
a typical american value is an expectation that people have a right to live the way they want. Values are defined as
ideas about what a group believes to be good, right, and desirable
_________ refers to a philosophy that a person should have freedom in his or her economic and political pursuits
individualism
Which of the following is true about the economic risks of doing business in a country?
the inflation rate in a country is an indicator of the economic risks of doing business in a country
Which of the following is a disadvantage of a high degree of managerial mobility between firms?
lack of loyalty and commitment to an individual company
Globalization has allowed corporations to reduce their costs by
locating manufacturing where the costs of the factors of production is lowest
During the late 1980s and early 1990s, totalitarian governments collapsed and were replaced by democratically elected governments that were typically _________ than their predecessors had been
more committed to free market capitalism
Diminishing returns to specialization occur when
more units of resources are required to produce each additional unit
the social rules and guidelines that prescribe appropriate behavior in a particular situation are called
norms
The ethical obligations of a multinational corporation toward employment conditions, human rights, corruption, and environmental pollution are
not always clear cut
culture is
not static
the term ____ refers to the values and norms tht are shared among employees of an organization
organizational culture
When a rich country enters into a free trade agreement with a poor country, the poor country benefits more than the rich country. this is the concept behind
paul Samuelson's critique
what principle or theory argues that it is in a country's best interest to maintain a trade surplus?
principle of mercantilism
the _______ theory argues that such advanced nations as the United states have an incentive to develop consumer products and hence such nations tend to produce newer products
product life cycle
United Nations has developed the Human Development Index (HDI) to measure the
quality of human life in different nations
In the case of command economies, deregulation involves _____.
removing price controls
