international Business exam 1
people are born into a social ranking, with no opportunity for social mobility.
A caste system is a system of social stratification in which
newly industrialized country
A country that has recently increased the portion of its national production and exports derived from industrial operations is called
Uncertainty Avoidance
According to Hofstede's framework, a culture that scores low on _____ is characterized by individual stability and reputation, fulfilling social obligations, and reciprocation of greetings and gifts.
Long-term orientation
According to Hofstede's framework, cultures that score high on _____ value respect for tradition, thrift, and perseverance, and have strong work ethics.
Promoting exports to enlarge gold and silver holdings
According to mercantilism, what should a country's primary goal be?
Switzerland
An individual from a country with a low degree of poltical risk would most likely be from
Denationalization
As a result of globalization, Argonia finds that its national borders are becoming less relevant. This indicates that Argonia is undergoing
the welfare of a group is more important than individual well-being.
Central planning is rooted in the ideology that
Use proper intermediaries as required in Pacific Rim nations
Chuck believes that his business has grown because of his personal involvement in every step of the way. What advice do you offer Chuck as he continues to expand his business in new Asian markets?
Which of the following statements about representative democracies is true?
Citizens elect individuals from political groups to act on their behalf.
voluntary export restraint
Countries might impose a _____ in response to the threat of an import quota or total ban on a product by an importing nation.
Country B has an absolute advantage in producing coffee.
Country A produces a ton of coffee using one unit of resources. Country B produces two tons of coffee using one unit of resources. Which of the following is true regarding Country A and Country B?
Foreign trade zones
Country X protects its domestic manufacturers from foreign competition by using a variety of nontariff barriers. Which of the following is not one of those nontariff barriers?
Cultural Literacy
Detailed knowledge about a culture that enables people to work happily and effectively within it is called
New product stage
During which stage of the international product life cycle theory does demand rise and remain sustained for a fairly lengthy period of time?
local content requirement
Excelsior's limited tried to sell its product in Canada, bur was told that at least forty percent of the product must be manufactured in Canada. This is an example of a
Services
Exports and imports of tourism and business consulting are included in ____ account of a country's balance of payments
Economic motive
Freeland's efforts to provide opportunities to its emerging industries is an example of its
E-Business
Gentian Violet is a dye manufacturing company that uses computer networks to sell its products, service customers, and collaborate with partners. Which of the following technologies is the company engaging in this Scenario?
Command economy
In country X, all dimensions of economic activity, including pricing and production decisions, are determined by the central government. Which term best describes Country X?
Offer customers a choice of delivery methods with different speeds and costs
In reviewing his fulfillment process, Jack realizes that different customers opt for different types of shipping based on their preferences. Which of the following would most likely help Jack provide better shipping service to his customers?
Which of the following is true regarding the protection of infant industries from international competition?
It is difficult for govt's to identify the industries worth protecting
Globalization of Production
Jeans unlimited manufactures its clothing at facilities located in two southeast Asian countries. The dispersal of manufacturing activities by the company indicates:
Emerging Market
Kireki is a small country with a corrupt govt. Its population is rural for most part and citizens have few or no legal rights. Which of the following is the type of market featured in Kireki?
Emerging Market
Konesia is a country in which rising incomes are increasing the global demand for basic products and services. Which of the following is the type of market featured in this country?
Totalitarianism
Konesia is a country whose political leaders do not tolerate opposing viewpoints and often suppress or punish dissidents. The lives of Konesians are tightly controlled by its rules. Which of the following political systems prevails in country?
Link Language
Lingua franca means:
encourage MNEs to increase production activities in a country.
Local content regulation are primarily intended to
Manufactured Goods
Most of the world merchandise trade is composed of trade in
Mercantilsim
Nations following the theory of _____ believed that the worlds wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors
On a recent trip to Hong Kong, a group of tourists found several Prada bags being sold on the pavement. They cost only a few dollars and were clearly fake; though they bore the Prada trademark. This is an example of
Piracy
Macropolitical risk
Political risk that affects all firms in country is referred to as
Administrative delays
Regulatory controls or bureaucratic rules designed to impair the rapid flow of imports into a country are called
professionals are lured back to their homeland
Reverse Brain Drain is the process by which
Robert does not believe that a violent revolution is needed to seize control over resources.
Robert believes that social and economic, equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. However, he does not think of himself as a communist, but as a socialist Which of the following about Robert is true?
Don't overlook the importance of personal relationships; friendship comes before business
Stephanie also expects participants to ask: "Are the Chinese as formal and business-oriented as Americans are?" Which of the following would most likely be Stephanie's response?
Totalitarian
Susan decides not to set up production facilities in Konesia because its business laws are vague and are often interpreted according to the convenience of the government. Bribery is a common feature in conducting business deals there and a refusal to pay up is not an option. What kind of govt does Konesia have?
Its costs more to buy everyday goods in the country than in Thailand.
The GDP per capita of a country is higher than that of Thailand. If the GDP per capita of the country is adjusted for PPP, the country's revised GDP is lower than that of Thailand. Which of the following is most likely true about the country?
Extent of globalization
The KOF Index measures the?
Domestic sugar producers
The U.S. government has decided to impose a tariff rate quota on sugar imports into the US, which of the following would benefit from this decision?
Infant industry argument
The ____ proposes the tariffs be imposed manufactured goods to give U.S. firms temporary production competition until they can fully establish themselves.
Trade Surplus
The condition that results when a nation's exports are greater than its important is called
Raymond Vernon
The international product life cycle theory was developed by
Gross Domestic product (GDP)
The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic of foreign factors of production is its
Factor proportions
The new trade theory is mainly at odds with the
Govt restrictions and competitive support actions to affect trade flows.
The term protectionism when applied to international trade, refers to
GNP Gross national product.
The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's:
Globalization
The widening set of interdependent relationships among people from different parts of the world is known as
they fail to take other social and cultural factors into account.
Their argument is vulnerable to criticism because
The people of France prefer English music and movies to French music and movies.
Upon what assumption does their argument rest? Their argument assumes that
World Bank
What Bank is an agency created to provide financing for national economic development efforts.
Both believe that government should control all types of economic activity.
What do communists and socialists have in common?
Free Trade
What implies that the national govt exerts minimal influence on the exporting and importing decisions of private firms;
Currency Control
When Excelsior's limited tried to convert its earnings from one country, the govt stipulated that the company had to exchange its currency at a very unfavorable rate. This is an example of a
Ethnocentrism
When selecting employees to help her establish their chain in china, she decides not to transfer Craig, as he believes that the people of China are less competent and skilled than the people of his country. What trait does Craig display?
Postive-sum game
When there are gains to be had by both countries that are party to an exchange, international trade is considered a
Labor and Capital
Which factors of production did Leontief focus on?
They help domestic producers maintain their market shares and prices.
Which if the following is true of quotas?
GATT rules did not cover trade in services, but the rules of the WTO do.
Which of the following accurately identifies a difference between GATT and the WTO?
Slash agricultural subsidies that hurt the exports of developing nations.
Which of the following actions can be adopted by developed nations to lessen the negative effects of globalization?
It gives creators of original work the freedom to publish or dispose of them as they choose.
Which of the following functions does a copyright perform?
Local content requirements
Which of the following is a method of restricting trade?
There are gains to be made from specialization and increasing economies of scale.
Which of the following is an argument offered by the new trade theory?
Subculture
Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture.
Human development index
Which of the following measures the extent to which a govt equitably provides its people with a long and healthy life, an education, and decent standard of living.
Social motives
Which of the following motives is least likely attributed to Freeland's restriction on free trade?
Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.
Which of the following statements about approaches to political risk management is not true?
The law is interpreted on the basis of tradition, precedent and usage.
Which of the following statements is true of Kirawi, a democratic nation whose legal system is based on common law?
It forces companies from other companies to employ local resources in their production processes.
Which of the following statements is true of local content requirements?
Marketers use GDP or GNP figures to determine whether a country's population is wealthy enough to purchase its products.
Which of the following statements is true of national production
Globalization encourages the adoption of uniform and superior standards for combating environmental problems.
Which of the following statements would most likely be made by a SUPPORTER of globalization?
Customs
Which of the following terms is used to refer to habits or ways of behaving in specific circumstances that are passed down through generations?
Barter
Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?
Churning
Which of the following terms is used to refer to widespread job turnover throughout an economy?
Gross national product (GNP)
Which of the following terms refers to the broadest measure of economic development of a country?
Material Culture
Which of the following terms refers to the technology used in a culture to manufacture goods and services?
International Monetary Fund
Which of the following was originally created to regulate fixed exchange rates and enforce the rules of the International monetary system?
Reduce tariffs
Which of the following would be Konesia's least appropriate method to restrict unwanted trade?
Factor proportions theory
Which theory listed below is also called the Heckscher-Ohlin theory?
Comparative Advantage
Which theory suggests that a country should produce and export those goods and services for which it is relatively more productive than other countries and import those goods and services for which other countries are relatively more productive?
Economic transition is the process of moving from
centrally planned to free-market economies
Individualist
cultures value hard work and promote entrepreneurial risk taking.
Individualist
cultures, economic systems tend to provide incentives and rewards for person's private business initiatives.
Relaxed trade and investment barriers
facilitates the process of cultural imperialism.
Afghanistan
has one of the highest levels of macropolitical risk
Situational Management
is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage
Common Law
is based on the cumulative wisdom of judges decisions on individual cases through history.
Expropriation
is forced transfer of assets from a company to the govt with compensation
Social Mobility
is the ability of individuals to move from one stratum of society to another
Economic transition
is the process by which a nation changes its fundamental economic organization and creates new free-market institutions
Purchasing power
is the value of goods and services that can be purchased with one unit of a country's currency.
Nontariff barriers (Quotas)
place limits on the quantity of a product being imported
Pluralistic
political systems include democracies, constitutional monarchies, and some aristocracies.
Nationalization
refers to the transfer of ownership of resources from the private to the public sector.
Mercantilism
says that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports.
Ad Valorem, Percentage of value
tariff is levied as a ____ of an imported product
Specific, Particular fee
tariff is levied as a for each unit of an important product
International Trade
the term ______ refers to the voluntary exchange of goods, services, assets, or money between one person or organization and another across national borders.
International product life cycle
theory states that a country's export eventually becomes its import