BUS 280 - Midterm Review

Which of the following refers to the use of computer networks to purchase, sell, or exchange products and collaborate with partners?A) e-commerceB) telecommutingC) data virtualizationD) virtual hosting

A) e-commerce

Which of the following is referred to as the predecessor to WTO? A. GATT B. OPEC C. IMF D. World Bank

A. GATT

Which of the following is true about planned economies? A. In a planned economy, the state owns all means of production. B. In a planned economy, entrepreneurs have economic incentives that encourage innovation. C. In a planned economy, market regulations reduce the risk of economic stagnation. D. In a planned economy, individuals benefit more from innovations than the state does.

A. In a planned economy, the state owns all means of production.

International trade occurs primarily because of: A) Price differences among nations. B) Supply and demand. C) Capitalism. D) None of the above.

A. Price differences among nations

Why do most international firms today support reasonable environmental​ laws? A. They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services. B. Openness and globalization lessen environmental standards C. They want to choose​ low-cost resources over environmental concerns. D. They want to introduce a new product line

A. They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services

A major operating objective that may induce companies to engage in international business is _____? A. To expand sales B. To maximize risk C. To acquire competitors D. None of the above

A. To expand sales

Which of the following statements is true about trademarks? A. Trademarks are designs and names by which businesses differentiate their products. B. Trademarks are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit. C. Trademarks grant the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention. D. Trademarks specify certain safety standards to which a product must adhere.

A. Trademarks are designs and names by which businesses differentiate their products.

The ________ replaced the institution of GATT while retaining all of the former GATT agreements. A) World Trade Organization B) Federation of International Trade Association C) Commonwealth of Nations D) International Monetary Fund

A. World Trade Organization

Operating across borders and time zones could complicate the job of coordinating and controlling international business activities especially for smaller firms. To operate more​ efficiently, international companies tend to​ ________. A. accelerate the use of​ technology, email, video​ conferencing, the​ Internet, and intranets B. send local staff on a​ long-term assignment in the field offices to provide immediate solutions for operation problems C. travel to the business destination more often than before to ensure personal communication D. invite the overseas staff to visit the headquarters a lot more often to ensure the smoothness of communication between headquarters and field staff

A. accelerate the use of technology, email, video conferencing, the Internet, and intranets

Opponents of globalization argue that falling trade barriers A. allow firms to move manufacturing activities to countries with lower wage rates. B. create manufacturing jobs in wealthy advanced economies. C. force countries to maintain manufacturing in their home countries regardless of wage rates. D. reduce the pool of global labor.

A. allow firms to move manufacturing activities to countries with lower wage rates.

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses? A) capitalism B) communism C) tribalism D) socialism

A. capitalism

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses? A. capitalism B. Socialism C. Communism D. Tribalism

A. capitalism

Which of the following terms is used to refer to habits or ways of behaving in specific circumstances that are passed down through generations? A) customs B) attitudes C) prejudices D) aesthetics

A. customs

Opponents argue that globalization ________. A) eliminates manufacturing jobs in developed nations B) generates labor market flexibility in developed nations C) brings an end to practices like outsourcing D) slows down the employment rate in developing nations

A. eliminates manufacturing jobs in developing nations

The revision in 1994 of the GATT clearly defined intellectual property rights in order to​ ________. A. give more protection to​ copyrights, trademarks, and patents B. further reduce average tariffs on merchandise trade C. lower subsidies for agricultural products D. facilitate the sharing of trade secrets

A. give more protection to copyrights, trademark, and patents

Uncontrollable forces that management has no direct control over include: A) Political. B) Capital. C) Raw materials. D) Production.

A. political

In the case of command economies, deregulation involves A. removing price controls. B. detailed state planning. C. exercising tight control over foreign trade. D. encouraging state ownership of enterprises.

A. removing price controls.

is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage. A. Situational management B. Situational attribution C. Social mobility D. Social stratification

A. situational management

Multinational corporations are key players in international business and can be described as companies that​ __________. A. tend to have innovative cultures B. have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries C. are engaged only in exporting products globally D. employ thousands of workers

B. have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries.

Globalization is characterized by ________. A) the demise of democracy within a nation B) national boundaries becoming less relevant C) the fortification of trade barriers D) rigid foreign relations policies

B. national boundaries becoming less relevant

________ is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage. A) Situational attribution B) Situational management C) Social mobility D) Social stratification

B. situational management

Which of the following terms is used to refer to the process of ranking people into social layers or classes? A) social transformation B) social stratification C) social loafing D) social mobility

B. social stratification

Opposition groups allege that globalization empowers organizations erodes the​ ________. A. local labor laws B. sovereignty of a nation C. spread of democracy D. legal system of the country

B. sovereignty of a nation

Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture? A) macroculture B) subculture C) cultural universal D) monoculture

B. subculture

Newly privatized entities often have little incentive to restructure their operations to become more efficient when A. they are faced with intense foreign competition. B. they continue to receive subsidies from the state. C. foreign investment is permitted by the state. D. prices are set by the forces of demand and supply.

B. they continue to receive subsidies from the state.

Any commercial transaction that crosses the borders of two or more nations is known as ________. A) domestic marketing B) market segmentation C) international business D) global manufacturing

C) International business

Which of the following is an example of globalization of production? A) Canadian consumers who import food products from Australia B) A German company which sells car components to British car makers C) A U.S. company that builds a computer hardware manufacturing facility in India D) A Swiss watch manufacturer that builds a manufacturing facility in Switzerland

C. A U.S. company that builds a computer hardware manufacturing facility in India.

Which of the following is a more attractive place to do business? A. A nation that lacks democratic institutions B. A nation where economic activity is regulated by the state C. A nation with a market-based economic system D. A nation where the rule of law does not take precedence over business

C. A nation with a market-based economic system

The capacity of a nation to produce more of a good with the same amount of input than another country is known as: A) Competitive advantage. B) Perfect competition. C) Absolute advantage. D) Economies of scale.

C. Absolute advantage

NAFTA's purpose is to: A) Create an economic union of the member countries. B) Create a political union of the member countries. C) Eliminate trade barriers among the member countries. D) Allow for the free movement of people, goods and services among the member countries.

C. Eliminate trade barriers among the member countries.

_______________are the two main forces that underlie the globalization of markets and production. A. The North American Free Trade Agreement​ (NAFTA) B. The WTO role to enforce the rules of international trade and funding available from the IMF C. Falling barriers to trade and investment and technological innovation D. The leading role that the World Bank plays to provide financing and the dispute resolution methods of the IMF

C. Falling barriers to trade and investment and technological innovation

________ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. A) Privatization B) Heterogenization C) Globalization D) Decentralization

C. Globalization

is the name we give to the trend toward greater​ economic, cultural,​ political, and technological interdependence among national institutions and economies. A. Internationalization B. Cross-cultural communication C. Globalization D. Emerging economies

C. Globalization

One of management's goals is utilizing economies of scale to reduce unit costs. Which of the following would not necessarily result in economics of scale being realized? A) Globalizing product lines to reduce development costs. B) Locating production in countries where the costs of the factors of production are lower. C) Locating production in countries where the labor force is the most highly educated. D) Globalizing product lines to reduce production and inventory costs.

C. Locating production in countries where the labor force is the most highly educated.

________ place limits on the quantity of a product being imported. A) Embargoes B) Trade blocs C) Nontariff barriers D) Anti-dumping duties

C. Nontariff barriers

Arguments for trade restrictions include: A. National defense. B. Unfair competition. C. all of the above. D. Protection of mature industries.

C. all of the above

The rise of a new international entity called the ________ suggests that any company, regardless of age, experience, and resources, can engage in international business. A) transnational corporation B) multinational corporation C) born global firm D) global firm

C. born global firm

Globalization has enabled organizations to reduce their costs of production by A. differentiating material culture the world over. B. setting up barriers to cross-border trade. C. creating manufacturing units in developing countries. D. turning national economies into self-contained entities.

C. creating manufacturing units in developing countries.

The practice of exchanging rings at weddings, which was initially a pagan ritual, is now followed by most people across the world. Which of the following does this illustrate? A) cultural literacy B) cultural encoding C) cultural diffusion D) cultural lag

C. cultural diffusion

Which of the following refers to the process by which cultural traits spread from one culture to another? A) cultural heterogeneity B) cultural imperialism C) cultural diffusion D) cultural literacy

C. cultural diffusion

The main purpose for establishing regional trade agreements such as NAFTA and APEC is to​ ________. A. promote tourism and travel among neighboring countries B. eliminate cultural differences C. foster trade and boost​ cross-border investment D. reform immigration and labor laws

C. foster trade and boost cross-border investment

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 ________. A) gross domestic product (GDP) B) gross world product (GWP) C) gross national product (GNP) D) gross state product (GSP)

C. gross national product (GNP)

Globalization of markets can benefit companies that sell a global product and creates new market opportunities abroad especially if their home market​ _________. A. can sustain higher prices B. can offer a consistent increase in demand C. is small or becoming saturated D. is large and growing

C. is small of becoming saturated

All of the following are objectives of international business operations except for: a) sales expansion b) resource acquisition c) locally expanding d) risk minimization

C. locally expanding

A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a ________. A) dummy corporation B) shell corporation C) multinational corporation D) domestic corporation

C. multinational corporation

The power of the WTO that sets it apart from the GATT is its capability to​ ______________. A. lower the trade barriers B. help the free flow of trade among its member states C. penalize offending nations and the power to settle trade disputes D. maintain fair trade policies

C. penalize offending nations and the power to settle trade disputes

United Nations has developed the Human Development Index (HDI) to measure the A. relative access to education of males and females. B. total income in different nations. C. quality of human life in different nations. D. level of political and economic freedom available to citizens.

C. quality of human life in different nations.

Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture? A. macroculture B. Monoculture C. subculture D. cultural universal

C. subculture

The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a ________ law system. A. civil B. traditional C. theocratic D. common

C. theocratic

Globalization is criticized because it ________. A) does not generate labor market flexibility in developing nations B) prevents developed countries from outsourcing work to developing nations C) creates fewer manufacturing jobs in developing nations D) exploits workers in low-wage nations

D. exploits workers in low-wage nations

The benefits, costs, and risks associated with doing business in a country are a function of that country's A. political system only. B. economic system only. C. legal system only. D. political, economic, and legal systems.

D. political, economic, and legal systems.

The purpose of the General Agreement on Tariffs and Trade (GATT) was to ________. A) create an international currency B) regulate exchange rates C) create regional trade organizations D) promote free trade

D. promote free trade

Which of the following terms is used to refer to the ideas, beliefs, and customs to which people are emotionally attached? A) attitudes B) memetics C) aesthetics D) values

D. values

A civil law system tends to be more adversarial than a common law system. True or False?

False

A common feature of many right-wing dictatorships is that they support socialist or communist ideas. True or False?

False

Globalization resulted in a decrease in non-U.S. firms' investment across national borders. True or False?

False

In calculating GNI data in some countries, the official figures take into account the barter agreements that take place as part of daily business transactions. True or False?

False

Since the 1960s, a notable trend in the demographics of the multinational enterprise has been the rise of U.S. multinationals. True or False?

False

Supporters of globalization believe that tougher environmental regulations and stricter labor standards are a natural aspect of economic progress. True or False?

True

Which of the following exemplifies privatization? A. A country reduces trade barriers, allowing individuals to engage in export and import. B. A country sells its postal services to a consortium of companies that runs it as a profit making venture without any state funding. C. A country enlists the services of SomersConsultancy, a global management consulting firm, to improve the profitability of the state-owned airlines company. D. A country allows state-owned coal companies to sell coal to private parties.

B. A country sells its postal services to a consortium of companies that runs it as a profit making venture without any state funding.

________ is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service. A) Global offering B) Globalization of production C) Global governance D) Globalization of markets

B. Globalization of production

The ________ is often seen as the lender of last resort. A. World Bank B. International Monetary Fund C. International Development Association D. World Trade Organization

B. International Monetary Fund

Purchasing power parity is: A) The US dollar equivalent to buy a product outside of the US. B) The number of units of a currency required to buy the same amount of goods and services in the domestic market as one dollar would buy in the US. C) The foreign currency equivalent to buy a product in the US. D) None of the above.

B. The number of units of a currency required to buy the same amount of goods and services in the domestic market as one dollar would buy in the US.

Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts? A) customs B) attitudes C) traditions D) values

B. attitudes

The common law system is A. not as flexible as other systems. B. based on tradition, precedent, and custom. C. open to giving judges the power only to apply the law. D. based on a detailed set of laws organized into codes.

B. based on tradition, precedent, and custom.

A folk custom can be defined as ________. A) behavior shared by a heterogeneous group or by several groups of people B) behavior, often dating back several generations, that is practiced by a homogeneous group of people C) positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts D) positive or negative evaluations, feelings, and tendencies that individuals harbor toward themselves

B. behavior, often dating back several generations, that is practiced by a homogeneous group of people

Historically, command economies were found in ________ countries, where collectivist goals were given priority over individual goals. A. democratic B. communist C. libertarian D. free-market

B. communist

Innovation and entrepreneurial activity help increase economic activity by A. providing more authority to government officials. B. creating new products and markets. C. eliminating state-run enterprises. D. strengthening business infrastructure.

B. creating new products and markets.

is anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts. A. cultural baggage B. cultural trait C. social structure D. social status

B. cultural trait

Advances in computers and communications technology are permitting an increased flow of ideas and information across borders. This enables: A) Manufacturing personnel to concentrate more on domestic production. B) Customers to learn about foreign goods. C) Sellers of products to travel to more locations worldwide in search of buyers. D) Advertisers to focus more on specific countries where demand is the greatest

B. customers to learn about foreign goods

Which of the following actions was implemented in the Uruguay Round, finalized in December 1993? A. reduction in the protection for patents, trademarks, and copyrights B. establishment of the World Trade Organization C. extension of the GATT to cover consumer products D. enhancement of trade barriers

B. establishment of the World Trade Organization

________ are all goods and services sold abroad and sent out of a country. A) Net national products B) Exports C) Gross domestic products D) Imports

B. exports

Amazon.com was the earliest, major online bookstore, which allowed it to generate brand awareness and have a significant presence in the market. Amazon.com had a head start on later entrants to the online bookstore market. In this example, Amazon.com has ________ advantages. A. vertical integration B. first-mover C. free rider D. horizontal integration

B. first-mover

Which of the following refers to convergence in buyer preferences in markets around the world? A) heterogenization of markets B) globalization of markets C) segmentation of markets D) nationalization of markets

B. globalization of markets

Goods and services purchased abroad and brought into a country are called ________. A) gross domestic products B) exports C) gross national products D) imports

D) imports

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation? A. Expropriation B. Nationalism C. nationalization D. confiscation

D. Confiscation

Cultural homogeneity refers to — A. adaptation to the local culture B. cross-cultural movements C. inter-cultural movements D. cultural uniformity

D. Cultural uniformity

the most common definition of globalization is that of: A) Political globalization - the international integration of political laws and customs. B) Geographical globalization - the international integration of countries in geographical proximity to one another. C) Cultural globalization - the international integration of people with similar cultural characteristics. D) Economic globalization - the international integration of goods, technology, labor, and capital.

D. Economic globalization

________ is increasing the pace of both cultural diffusion and cultural change. A) Collectivism B) Enculturation C) Fundamentalism D) Globalization

D. Globalization

Which of the following is a characteristic of a developing nation? A) Unequal distribution of income with a very large middle class. B) Very few firms employing the latest technology. C) Undisguised unemployment or underemployment. D) High rate of illiteracy and insufficient educational facilities.

D. High rate of illiteracy and insufficient educational facilities

Uncontrollable forces that management has no direct control over include: A. Raw Material B. Capital C. Production D. Political.

D. Political

Which of the following statements pertaining to changes in the global economy of the 21st century is true? A. Barriers to the free flow of goods, services, and capital have increased. B. Volume of global output has been growing more rapidly than cross-border trade and investment. C. National economies are becoming more independent. D. The world is moving toward an economic system that is more favorable for international business.

D. The world is moving toward an economic system that is more favorable for international business.

Why do companies typically produce goods and services​ abroad? A. To internationalize their operation B. To promote economic development C. To avoid local environment laws D. To reduce their overall labor costs

D. To reduce their overall labor costs

Which of the following is a cultural component that implies gauging the beauty and appeal of artwork? A) customs B) mores C) folkways D) aesthetics

D. aesthetics

Arguments for trade restrictions include: A) National defense. B) Protection of mature industries. C) Unfair competition. D) all of the above.

D. all of the above

Frequently, a firm will go abroad to: A) Protect its home market. B) Earn greater profits. C) Test market a product. D) all of the above.

D. all of the above

An international business is defined as A. one that implements homogenous practices across countries. B. the basis for a multinational enterprise. C. a business that is restricted by U.N. regulations. D. any firm that engages in international trade.

D. any firm that engages in international trade.

A company that adopts a global perspective and engages in international business from or near its inception is known as​ a(n) ____________. A. export management company B. custom broker C. international service representative D. born global firm

D. born global firm

In Samuel Huntington's thesis, global terrorism is a product of the A. advances in communication technology. B. low level of education and literacy. C. unequal distribution of income in developing nations. D. clash of value systems and ideology.

D. clash of value systems and ideology.

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation? A) expropriation B) nationalism C) nationalization D) confiscation

D. confiscation

Which of the following refers to the process by which cultural traits spread from one culture to another? A. cultural imperialism B. cultural heterogeneity C. cultural literacy D. cultural diffusion

D. cultural diffusion

A(n) ________ is anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts. A) social structure B) social status C) cultural baggage D) cultural trait

D. cultural trait

A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to ________. A) displace the WTO B) reduce nontariff barriers to international trade C) govern exchange rates D) enforce world trade rules

D. enforce world trade rules

Deregulation involves the establishment and operation of private enterprises. True or False?

True

In a market economy, a supply restriction occurs when a single firm monopolizes a market. True or False?

True

In the early twentieth century, the socialist ideology split into two broad camps: communists and social democrats. True or False?

True

One concern frequently voiced by those opposed to globalization is that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies such as the United States and Western Europe. True or False?

True

Globalization consists of the following processes except: a) political process b) environmental process c) social process d) economic process

b. environmental process