MGMT 325 - Ch 4 Quiz

A society where economic power is concentrated in the hands of government officials and political authorities is called:

A central state control system.

Under the World Trade Organization's most-favored nation rule:

All import restrictions are illegal unless proven scientifically.

Which statement(s) below are true about global income?

Both of these answers are correct: -Income is how much one earns in a day or a year -Income at the bottom of the pyramid varies from place to place

A free enterprise system refers to:

Economic assets that are privately owned and exchanged in an open market.

(T/F) Globalization is accepted worldwide and creates little controversy.

False

(T/F) The importing of foreign goods by U.S. firms is called foreign direct investment.

False

Experts attribute the growth of nongovernmental organizations to:

Greater openness in many societies.

The primary goal of a "vulture fund" is to:

Make a profit.

The term "race to the bottom" refers to:

Moving production jobs to the country with the lowest labor cost.

The three strategies of globalization can be summarized using what three words?

Sell, make, and buy.

A firm that has global operations has:

Some or all of their manufacturing or service operations abroad.

An example of a Global Action Network, or GAN, is:

The Kimberley Process.

(T/F) Even small local businesses often compete with global companies from around the world.

True

(T/F) The main purpose of inversion is to reduce corporate income tax obligations.

True

Assets that a person accumulates and owns at a certain point in time are called:

Wealth.

According to the United Nations, a feature of democracy is:

All of the following answers are correct: -Fair elections. -An independent media. -A government with power balanced among executive, legislative, and judicial branches.

Microfinance refers to banks:

Lending money to low-income businesses.

(T/F) At the beginning of the 20th century, no country in the world had universal suffrage.

True

An individual who is a supporter of globalization would argue that it helps the developing world by:

All of the following answers are correct: -Giving entrepreneurs access to foreign investment funds to support economic development. -Allowing new ideas and technological innovations to spread quickly. -Providing people in developing countries with more jobs.

An example of an international financial and trade institution is:

All of the following answers are correct: -World Bank. -International Monetary Fund. -World Trade Organization.

Which of the following statements accurately describe the practice of tax inversion:

Both of these answers are correct: -a company shifts their headquarters to a foreign country -a company increases debt in their home country.

How did Intel eliminate conflict minerals from their supply chain?

By collaborating with most suppliers in the chain including smelters, processors, and traders.

(T/F) Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

True

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

Weak health and safety regulations.

(T/F) Although many firms conduct business across national boundaries, most global commerce is carried out by a small number of powerful firms.

True