International Business Test 1
In January 2006, a Shanghai court said Coffeebux's decision to use the logo and similar sounding name to Javabucks was
"Clearly Malicious"
Opponents of globalization argue that falling trade barriers
Allow firms to move manufacturing activities to countries with lower wage rates.
Communist Totalitarianism
China
China: Continues to move toward greater free market reform; at the same time, however, the country continues to deny many basic civil liberties to its citizens.
Communist Totalitarianism
Which of the following factors contributed to the Great Depression of the 1930s?
Countries progressively raising trade barriers against each other.
Globalization has enabled organizations to reduce their costs of production by
Creating manufacturing units in developing countries.
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
Decling barriers to trade and investment are facilitating global production strategies.
Rapid FDI growth and new production opportunities and new markets.
Declining Investment Barriers
Lower tariffs and increased international trade in goods and services
Declining Trade Barriers
Saudi Arabia
Found in states where political power is monopolized by a party, group, or individual that governs according to religious principles
A series of treaties that reduced barriers to trade.
GATT
The _____ is often seen as the lender of last resort.
International Monetary Fund
Tribal Totaliranism
Kenya
Globalization critics argue that the decline in unskilled wage rates is due to the
Migration of low-wage manufacturing jobs offshore.
An international business is defined as
One that implements homogenous practices across countries.
Intellectual property rights are intended to
Protect original ideas/works.
Russia: These states lie between pure democracies and complete totalitarian systems of government.
Pseudo Democracy
The purpose of the UN's Millennium Development Goals that were established in 2000 was to
Reduce the number of people living in extreme poverty.
The growth of trade as a percentage of global GDP
Reflects the globalization of markets
United States: Elected representatives who fail to perform adequately will be voted out of office at the next election.
Representative Democracy
The philosophy behind intellectual property rights is to
Reward the creator of an idea
The philosophy behind intellectual property rights is to
Reward the creator of an idea.
Germany in the 1930s: In retreat since the early 1980s, a common feature of this type of regime is an overt hostility to socialist or communist ideas.
Right-wing Totalitarianism
Pseudo Democracy
Russia
Explosive growth of high-power, low-cost computing and growth in services
Technology; Computing and Communication
Faster and Cheaper Shipping and Optimal Production
Technology; Transportation
Toyota rapidly increased its investment in auto production facilities in the United States and Europe in the late 1980s and early 1990s.
The Changing FDI Picture
One of the world's largest real estate companies, the Dalian Wanda Group, hopes to become a world class multinational by 2020. Already, the company, which began
The Changing Nature of the Multinational Enterprise
It is estimated that today's developing nations may account for more than 60% of world economic activity by 2025, while rich nations' activity, currently at 55 percent, may decling to 38 percent.
The Changing World Output and World Trade Picture
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 more rapidly than Japan did.
The Chaning World Order
Representative Democracy
United States
The gap between the rich and the poor nations of the world has gotten wider.
Argument Against Globalization
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.
UN
The _____ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to promoted economic development.
World Bank
Which of the following expresses one of the reasons why managing an international business is different from managing a purely domestic business?
An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.
Economic power shifts from nations to international institutions.
Argument Against Globalization
Lack of Adequate regulations to protect the environment.
Argument Against Globalization
Manufacturing jobs move to low wage countries
Argument Against Globalization
Increased Efficiency of the whole economy.
Argument for Globalization
Living standards improve.
Argument for Globalization
Real power resides with nation-states.
Argument for Globalization
Tougher Environment regulations follow economic progress.
Argument for Globalization
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.
Bretton Woods Institutions
Foreign direct investment occurs when a firm invests resources in
Business activities outside its home country.
The commercial jet aircraft market
Can best be described as a global market.
Which of the following actions was implemented in the Uruguay Round, finalized in December 1993?
Establishment of the World Trade Organization
Finance ministers and central bank govenors of major economies coordinate policy on global financial crises.
GTO
Right- Wing Totaliranism
Germany in the 1930s
Boing produced just 5 percent of its original 737 and 747 outside the US but produces 65 percent of its newer 787 in foreign locations Boeing's production strategy
Reflects the globalization of production.
Theocratic Totalitarianism
Saudi Arabia
The stock of foreign direct investment refers to
The total cumulative value of foreign investments as a percentage of the country's GDP.
Which of the following statements pertaining to changes in the global economy of the 21st century is true?
The world is moving toward an economic system that is more favorable for international business.
Kenya: Politicians from the Kikuyu tribe have long dominated the poloitical system
Tribal Totalitarnism
Primarily responsible for pricing world trade system.
WTO
The organization of approximately 185 countries that have all signed treaties to protect intellectual property rights is known as the
World Intellectual Property Organization
theft or blackmail
bribery
organized crime/protection money
corruption
weak legal system
legal mechanisms
