International Business: Set II

encourage economic development

A foreign trade zone is primarily used by governments to ________.

tariff rate quota

A(n. ________ imposes a low tariff rate on a limited amount of imports of a specified good, but imposes a prohibitively high tariff on the good above that limited amount.

countervailing duty

A(n. ________ is calculated to offset the advantage an exporter receives from a subsidy.

promoting exports to enlarge gold and silver holdings

According to mercantilism, what should a country's primary goal be?

competitive

According to the model developed by Rob van Tulder and Alex van der Zwart, Anglo-Saxon countries view the state, the market, and civil society as ________.

cooperation between labor, business, and government

According to the model developed by Rob van Tulder and Alex van der Zwart, what is the key to the Continental European Approach?

British pound sterling

Assume you are an American exporter in 1895. What currency would you most likely want to receive for business transactions?

conflict of interest

Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n. ________.

balance on merchandise trade

Carmen is a vice president at TechWorks, an MNE that manufactures computer chips. TechWorks is considering expansion, and Carmen is responsible for identifying potential locations. Which of the following would best help Carmen assess the competitiveness of a country's manufacturing sector?

subsidies

Country X wants to stimulate exports. Which of the following would most likely help Country X achieve this goal?

short-term portfolio investment

Dell Computers invests excess cash balances overnight in a London bank to earn a higher interest rate than it could earn in a New York bank. Dell is most likely making a(n. ________.

resource availability

Demand factors affecting the decision to undertake FDI include all of the following except ________.

commitment to environmental protection

Firms such as Procter & Gamble that use recycled materials whenever possible are most likely demonstrating their ________.

working excessive overtime

HR at APEX Designs, an international architectural firm, have noticed the following behaviors among employees lately. Which of the following would NOT be considered a problematic ethical situation at APEX?

standardized product stage

In which stage of the international product life cycle does the innovating firm's country become a net importer of the product?

whistle-blowing

Justin is aware that his supervisor used corporate funds to pay for a personal vacation and reports the offense. This is called ________.

local business practices

Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following training topics would most likely prepare expatriate managers for handling ethics issues in China and Bangladesh?

Individuals have their personal belief systems.

Sonya and Amber work together in the Hong Kong corporate office. Despite having similar backgrounds and education, they cannot agree on whether it is appropriate to offer bribes to Chinese officials for the purpose of expediting business transactions. Which ethical generalization does this most likely illustrate?

customer mobility

Supply factors affecting the decision to undertake FDI include all of the following except ________.

restricted access to distribution networks

Thailand's policy whereby foreign banks can operate only three branches and only one of these can be in the city of Bangkok is an example of which type of nontariff barrier?

restrict foreign competition

The "level playing field" argument is primarily used to justify government policies that ________.

sugar substitute producers

The U.S. government has decided to impose a tariff rate quota on sugar imports into the United States. Which of the following would benefit the most from this decision?

per capita incomes

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

public-sector procurement policies

The federal government policy that international air travel purchased with U.S. government funds must occur on U.S. airlines is an example of which type of nontariff barrier?

import substitution

The government of Country X is encouraging the growth of domestic manufacturing by implementing high barriers to imported goods. Country X is most likely following a strategy of ________.

correcting imbalances between a country's international payments and receipts

The international monetary system provides a mechanism for ________.

current

The sale of a Mercedes-Benz from Germany to France would be recorded as a merchandise export in the ________ account of Germany's balance of payments.

countries agreed to buy or sell their paper currencies for gold

Under the gold standard ________.

compound tariff

What type of tariff includes both ad valorem components and specific components?

commodities

What type of trade were the early country-based theories of international trade most useful in understanding?

currency values were determined by supply and demand

When the gold standard ended ________.

U.S. dollar

Which currency played a central role in the Bretton Woods system?

insurance benefits

Which of the following is LEAST susceptible to ethical variations in international business?

home country advantage

Which of the following is not one of the conditions specified in eclectic theory for the occurrence of foreign direct investment?

debt account

Which of the following is not one of the major accounts in the BOP accounting system?

International Monetary Fund

Which of the following was created by the Bretton Woods Agreement to facilitate the expansion and balanced growth of international trade and to promote exchange stability?

Foreign Corrupt Practices Act

Which regulation prohibits the offering of bribes to any foreign government official in order to influence official actions or policies of that official or to gain or retain business?

relative factor endowments

Which theory answers the question, "What determines the products for which a country will have a comparative advantage?"

internalization theory

Which theory explains why a firm would choose to enter a foreign market via FDI rather than exploit its ownership advantages internationally through other means?

global strategic rivalry theory

Which theory suggests that trade flows can be determined by firms making the necessary research and development expenditures?