IB Exam 1

An employee may view globalization...

either as an opportunity for new work or as a threat to his or her current job

Globalizations impact on jobs and wages (against)

Eliminates jobs, lowers wages, exploits workers

Merchandise trade between low- and middle-income nations accounts for about ________ percent of total world trade.

6

Theocracy

A political system in which a country's religious leaders are also its political leaders

Secular Totalitarianism

A political system in which political leaders rely on military and bureaucratic power. Takes 3 forms: communist, tribal, and right-wing

Theocratic Totalitarianism

A political system under the control of totalitarian religious leaders

Centrally Planned Economy

A system in which a nation's land, factories, and other economic resources are owned by the government.

Caste System

A system of social stratification in which people are born into a social ranking, or caste, with no opportunity for social mobility.

Class System

A system of social stratification in which personal ability and actions determine social status and mobility.

Lingus Franca

A third or "link" language understood by two parties who speak different native languages.

Who proposed the theory of absolute advantage?

Adam Smith

World Trade Organization

Administers the rules governing trade between its 144 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.

Chuck Praeger has made a name for himself by being able to sell golf equipment to anyone, anywhere, anytime. Chuck would like to expand his business into Pacific Rim countries and has begun making inquiries into potential distributors.Chuck is convinced that his golf equipment will sell itself. But Chuck is preparing his special "hard-sell" presentation for Asia because he wants to make a good first impression. As a Pacific Rim expert, what do you tell Chuck?

Aggressive salesmanship is unlikely to work in Pacific Rim countries

Topography

All the physical features that characterize the surface of a geographic region

Material Culture

All the technology used in a culture to manufacture goods and provide services

Socialism

An economic system in which the government owns and controls all types of economic activity.

Which of the following was NOT true of centrally planned economies? At the time of their collapse, standards of living in most centrally planned economies were at or above those of market economies. Basic necessities were often not provided to citizens in centrally planned economies. Underground economies for goods and services thrived in most centrally planned economies. Prices on the black market were much higher than the official prices set by governments.

At the time of their collapse, standards of living in most centrally planned economies were at or above those of market economies.

Members of 50 different countries attend a workshop on economic freedom hosted by an international organization based in Geneva, Switzerland. Attendees of the workshop learn about techniques designed to assist countries in expanding their degree of economic freedom.Six attendees at the workshop represent three countries with the highest degree of economic freedom. These attendees are from which of the following countries? Japan, Brazil, and France Canada, the United States, and Denmark Australia, Britain, and the United States The Netherlands, Sweden, and Britain

Australia, Britain, and the United States

Culture

Beliefs, customs, and traditions of a specific group of people.

Globalizations impact on environment

Causes a "race to the bottom" in environmental conditions and regulations.

Representative Democracy

Citizens elect individuals from their groups to represent their political views.

Globalizations impact on future markets

Claim international firms exploit local labor markets and the environment to produce goods that are then exported back to the home country.

Political RIsk

Companies doing business domestically or internationally confront political risk-the likelihood that a society will undergo political changes that negatively affect local business activity

Hofstede Framework

Compares cultures along five dimensions: 1. Individualism versus collectivism 2.Power distance 3. Uncertainty avoidance 4.Achievement versus nurturing 5. Long-term orientation

Economic system

Consists of the structure and processes that it uses to allocate its resources and conduct its commercial activities

Which of the following most likely represents the greatest accomplishment of the 1994 revision of the GATT? Creation of the World Trade Organization Creation of regional trade agreements Creation of the World Bank Creation of the International Monetary Fund

Creation of the World Trade Organization

Country X is a small country with a large population. Most of its land is devoted to housing and commercial developments; agricultural land is in short supply. According to the factor proportions theory, which of the following would Country X most likely import? Software Crops such as wheat and corn Fiber optic cables Consulting services

Crops such as wheat and corn

Which of the following statements regarding cultural change is NOT true? Cultural change occurs as new traits are accepted and absorbed into a culture. Cultural diffusion occurs quickly in almost every culture. Globalization is increasing the pace of cultural diffusion. Technological advances are increasing the pace of cultural diffusion.

Cultural diffusion occurs quickly in almost every culture.

Which of the following terms is defined as the set of values, beliefs, rules, and institutions held by a specific group of people?

Culture

According to Hofstede's framework, which of the following is LEAST likely to be valued in a group-oriented culture? Entrepreneurial risk taking Shared responsibility Collective goals Maintaining harmony

Entrepreneurial risk taking

In China, businesspeople do which of the following? Follow a strategy for forming business relationships that is similar to their American counterparts Focus on establishing tight formal contracts Place greater importance on written contracts than on personal relationships Establish a trusting relationship before proceeding with business

Establish a trusting relationship before proceeding with business

In his international business class, Professor Jang organizes a debate on the societal effects of globalization. Juan Prince takes a position against globalization. He emphasizes how supranational institutions can threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.Which of the following does Juan most likely cite to support his argument regarding the influence of supranational institutions on national sovereignty? Examples of the United Nations imposing its will on nations The fact that the World Trade Organization is led by elected representatives The political influence of large firms such as Walmart The effect of globalization on the spread of democracy worldwide

Examples of the United Nations imposing its will on nations

Identify the two forces causing globalization to increase

Falling barriers to trade and investment and technological innovation

Foreign Corrupt Practices Act

Forbids US companies from bribing foreign officials, political candidates, or government representatives.

Jeans, Unlimited produces clothing for young adults. It designs its clothes at its New York headquarters and produces them at facilities in two Southeast Asian countries. The company recently received negative press after one of its facilities was found using questionable, albeit legal, labor practices-including employing child labor and operating in a manner that damages the environment.Which of the following arguments against globalization could most likely be made using Jeans, Unlimited as an example? Globalization is responsible for laying off public sector workers in developed countries. Globalization empowers supranational institutions at the expense of national governments. Globalization causes companies to produce goods in nations with the most lenient labor regulations. Globalization is widening the gap in average incomes between rich and poor nations.

Globalization causes companies to produce goods in nations with the most lenient labor regulations.

Describe the process of globalization and how it affects markets and production

Globalization leads to increased competition. This competition can be related to product and service cost and price, target market, technological adaptation, quick response, quick production by companies etc. When a company produces with less cost and sells cheaper, it is able to increase its market share.

To complete his business bookkeeping each month, a small business owner spends about 20 hours and gives up $2,000 in income. If he hired a bookkeeper to do the work, the job would be completed in 15 hours and would cost $600. Should the owner hire the bookkeeper or continue to do the work himself?

He should hire the bookkeeper because the bookkeeper has an absolute advantage in completing the books.

Which of the following can be inferred regarding the relationship between a country's HDI value and its GDP per capita rank? High HDI values tend to be associated with high GDP per capita ranks, but there are exceptions to this pattern. If one country has a higher HDI value than another, the first country will also have a higher GDP per capita than the other. Countries with the highest GDP per capita rank also maintain the highest HDI values. Countries with the lowest GDP per capita rank also maintain the lowest HDI values.

High HDI values tend to be associated with high GDP per capita ranks, but there are exceptions to this pattern.

Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding the two countries which are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long term.Which of the following questions would be most important for Zane legal experts to consider when making the decision to choose the civil law system of Country A or the common law system of Country B? Have other corporations based in these two countries been profitable? What is the prevalence of industrial crime in these two countries? How would a contractual dispute with a local vendor be resolved? Would local environmental organizations target Zane for its manufacturing practices?

How would a contractual dispute with a local vendor be resolved?

Totalitarian governments tend to share three features:

Imposed authority, lack of constitutional guarantees, restricted participation

Which of the following is the main goal of privatization? Reduce responsibility and accountability Increase economic efficiency Increase subsidies to companies Slow economic growth

Increase economic efficiency

Globalizations impact on jobs and wages (for)

Increases wealth and efficiency, generates labor market flexibility, advances economies

Which of the following countries has an average annual GDP growth rate of over 5%?

India

Which of the following was created to regulate fixed exchange rates and enforce the rules of the international monetary system? International Monetary Fund World Trade Organization European Union World Bank

International Monetary Fund

An investor wishes to invest in a business in a country with a relatively high gross national income (GNI). Which of the following countries would most likely qualify as a prospect? Nepal India Japan Vietnam

Japan

Which one of the following best supports the argument that ethnocentricity should be avoided in business relationships with other countries? Managers often need time to learn the traits and work habits of other cultures. Cultural literacy can only be gained through fluency in another country's language. Managers from other cultures understand best how to motivate their own employees. Western management principles have been proven to enhance business productivity.

Managers from other cultures understand best how to motivate their own employees.

The international product life cycle theory was put forth for which type of goods?

Manufactured goods

In his international business class, Professor Jang organizes a debate on the societal effects of globalization. Juan Prince takes a position against globalization. He emphasizes how supranational institutions can threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.Which of the following most likely supports Rina's argument over Juan's concerning the homogenization of national cultures? Many countries specialize in producing the goods and services they can produce most efficiently. Globalization tends to shift not just superficial aspects of culture, but deeply held beliefs as well. Material goods such as cell phones and computers are found in most homes throughout the world. In most industries, domestic operation alone cannot sustain competitive business growth.

Many countries specialize in producing the goods and services they can produce most efficiently.

During which stage of the international product life cycle theory does demand rise and remain sustained over a fairly lengthy period of time?

Maturing product stage

Land, factories, and other economic resources are more equally split between private and government ownership in which of the following systems? Market economy Black market economy Mixed economy Centrally planned economy

Mixed economy

A Better Mousetrap, Inc., is a manufacturing company that sells pest control systems. Recently the company launched an innovative mousetrap with a unique design that has been selling well in the U.S. market. Senior vice president Marc Wallace recommends expanding sales overseas as a way to increase company revenues.Wallace's executive team reviews the stages of the international product life cycle to better understand what to expect when the product is sold overseas. Since there is virtually no export market for the product at present, it is most likely in which of the following stages of the life cycle? Maturing product stage New product stage Adapted product stage Standardized product stage

New product stage

Sandy Smith, vice president of marketing for a large consumer products company, will soon travel to Colombia to spearhead an effort to increase her company's presence there. Sandy is concerned about her safety and has contacted a risk-assessment service for advice.Would Sandy most likely increase her safety by establishing a daily routine traveling between the hotel and office?

No, because kidnappers are likely to watch for daily routines.

Susan Smith works in marketing at Reconditioned Refrigerators (R&R), a global manufacturing company. Susan knows that to advance into upper management she must gain broader experience and was recently told that she can choose from several locations in which R&R is active for her first international assignment. Susan knows little about other nations, their cultures, and their political systems, so she has embarked on an ambitious research project to make an informed decision.Researching Britain, Susan learns that Britain is an example of which of the following forms of government? Theocracy Politicized bureaucracy Socialism Parliamentary democracy

Parliamentary democracy

Susan Smith works in marketing at Reconditioned Refrigerators (R&R), a global manufacturing company. Susan knows that to advance into upper management she must gain broader experience and was recently told that she can choose from several locations in which R&R is active for her first international assignment. Susan knows little about other nations, their cultures, and their political systems, so she has embarked on an ambitious research project to make an informed decision.Susan's personal political beliefs are congruent with those of a democracy. Susan's beliefs are most likely reflected in which of the following political ideologies? Anarchism Pluralism Totalitarianism Socialism

Pluralism

In his international business class, Professor Jang organizes a debate on the societal effects of globalization. Juan Prince takes a position against globalization. He emphasizes how supranational institutions can threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.Rina most likely counters Juan's claim regarding the environmental effects of globalization by pointing out which of the following? Land preservation is more important than pollution reduction for preserving the environment. China's landscape was permanently altered by the construction of the Three Gorges Dam. Pollution-intensive U.S. firms tend to invest in countries with stricter environmental standards.. Attempts at foreign cultural imperialism are often blocked by national governments.

Pollution-intensive U.S. firms tend to invest in countries with stricter environmental standards..

Which of the following terms is used to refer to behavior that is shared by a heterogeneous group or by several groups? Manners Lingua franca Popular custom Folk custom

Popular custom

________ is the value of goods and services that can be purchased with one unit of a country's currency.

Purchasing power

Globalizations impact on labor

Reduces labors bargaining power and lowers global labor standards when international firms are permitted to continually move to nations with lower labor standards.

Purchasing power parity (PPP)

Relative ability of two countries' currencies to buy the same "basket" of goods in those two countries

In which of the following political systems does the government endorse private ownership of property and a market-based economy but grant few (if any) political freedoms? Left-wing totalitarianism Theocratic totalitarianism Tribal totalitarianism Right-wing totalitarianism

Right-wing totalitarianism

A publisher based in Kazakhstan specializes in books for Islamic readers. The publisher is considering opening sales offices in Saudi Arabia and Ethiopia. Which country would be the better choice?

Saudi Arabia, because its population is predominantly Islamic

International product life cycle theory

Says that a company will begin by exporting its product and later undertake foreign direct investment as the product moves through its life cycle

Last year, Sabrina Shin started a business selling all types of spices and hot sauces. The business is small but this entrepreneur's dreams are big. Given limited demand and sales fluctuations in the domestic market, Sabrina has been considering going international. Yet she has little information, many doubts, and no guidance.If Sabrina needs $500,000 to expand her business internationally, which of the following organizations might be her best bet? Export-Import Bank World Trade Organization Small Business Administration International Monetary Fund

Small Business Administration

Which of the following terms is used to refer to the process of ranking people into social layers or classes? Social status Social stratification Social group Social mobility

Social stratification

Which of the following terms refers to an economic system in which the government owns and controls all types of economic activity? Socialism Sovereign nationalism Political bureaucracy Pluralism

Socialism

The Italian car company, Ciao, has made plans to expand its operations by building a manufacturing facility in a foreign market. Ciao has been very successful selling its small, economical, and stylish cars in Italy and Spain, and firm managers believe that the Ciao cars will be equally profitable in other markets.In marketing a single car to customers in Italy, Spain, and the new foreign market, which of the following is most likely to help Ciao reduce its marketing costs? Seeking sales growth in a fourth market Creating TV ads in a single language Standardizing certain marketing activities Decentralizing control over its marketing

Standardizing certain marketing activities

New Trade Theory

States that 1. there are gains to be made from specialization and increasing economies of scale, 2. the companies first to market can create carriers to entry, and 3. government may play a role in assisting its home companies.

National competitive advantage theory

States that a nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade

Kluckohn Strodtbeck Framework

Studies a given culture by asking questions: 1. Do people believe that their environment controls them, that they control the environment, or that they are part of nature? 2. Do people focus on past events, on the present, or on the future implications of their actions? 3. Are people easily controlled and not to be trusted, or can they be trusted to act feely and responsibly? 4. Do people desire accomplishments in life, carefree lives, or spiritual and contemplative lives? 5. Do people believe that individuals or groups are responsible for each person's welfare? 6. Do people prefer to conduct most activities in private or in public?

The Porter diamond consists of all the following EXCEPT ________. factor conditions demand conditions supply conditions firm strategy, structure, and rivalry

Supply conditions

In which of the following countries do citizens vote directly on many national issues? Switzerland Canada Austria Norway

Switzerland

Which of the following makes the world market more accessible for companies that sell traditional products by lessening the cost and difficulties associated with global communication? Technology Franchising opportunities Licensing Financial capital

Technology

Communism

The belief that social and economic equality can be obtained only by establishing an all-powerful Communist Party and by instituting socialism

Brain Drain

The departure of highly educated people from one profession, geographic region, or nation to another.

Nationalism

The devotion of a people to their nations interests and advancement

Social Mobility

The ease with which individuals can move up or down a culture's "social ladder"

Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding the two countries which are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long term.Which of the following most likely supports a decision by Zane to choose Country B over Country A? Most countries in the world follow civil law principles. The flexibility of a common law system allows for judicial interpretation in unique cases. Civil law nations administer justice based on a structured set of rules. Common law contracts tend to be lengthy and time consuming to develop.

The flexibility of a common law system allows for judicial interpretation in unique cases.

Globalization and National Sovereignty

The idea that a nation-state: 1. is autonomous 2. can freely select its government 3. cannot intervene in the affairs of other nations 4. can control movements across its borders and 5. can enter into binding international agreements

Market economy

The majority of a naiton's land, factories, and other economic resources are privately owned

Human Development Index (HDI)

The measure of the extent to which a government equitably provides its people with a long and healthy life, an education, and a decent standard of living

Social Stratification

The process of ranking people into social layers or classes

Privatization

The selling of government-owned economics resources to private operators

Which of the following is NOT a limitation of the absolute and comparative advantage theories? The theories assume that there are only two countries engaged in the production and consumption of just two goods. The theories assume that there are no costs for transporting traded goods from one country to another. The theories consider labor the only resource used in the production process. The theories assume that specialization in the production of one particular good results in gains in efficiency.

The theories assume that specialization in the production of one particular good results in gains in efficiency.

Globalization

The trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

A common law legal system reflects three elements...

Tradition (a country's legal history), Precedent (past cases that have come before the courts), Usage (how laws are applies in specific situations)

popular custom

behavior shared by a heterogeneous group or by several groups

Folk Custom

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

Ethnocentricity

belief that one's own ethnic group or culture is superior to that of others

Globalization impact on income inequality (debate 3)

Whether globalization is increasing global inequality-widening income inequality between all people of the world, no matter where they live.Study finds that the percent of world population living on less than a dollar a day fell from 17% to just 7% over a 30-year period which reduced the number of people in poverty.

Ian Richards is vice president of new business development for a British-based Internet company. He will soon attend an international symposium on global Internet marketing in Brazil where he will meet people from around the world.Ian ends most of his meetings with the thumbs up signal indicating that all is good. When meeting symposium representatives from Italy, he should ________.

avoid making the gesture

When people who are capable of influencing the political system make an effort to do so, which of the following occurs? Wide political participation Secular totalitarianism Tribal totalitarianism Narrow political participation

Wide political participation

Which of the following countries has a negative average annual GDP growth rate? Japan Germany Ivory Coast Zimbabwe

Zimbabwe

Subculture

a group of people who share a unique way of life within a larger, dominant culture

value added tax

a tax levied on each party that adds value to a product throughout its production and distribution

Sandy Smith, vice president of marketing for a large consumer products company, will soon travel to Colombia to spearhead an effort to increase her company's presence there. Sandy is concerned about her safety and has contacted a risk-assessment service for advice.If Sandy is asked for personal information, she should ________.

be vague but friendly with her response

An environmentalist may be concerned with how globalization...

affects our ecology

World Bank

an agency created to provide financing for national economic development efforts.

International Monetary FUnd

an agency created to regulate fixed exchange rates and enforce the rules of the international monetary system.

An economist may see globalization as...

an opportunity to examine the impact of globalization on jobs and standards of living.

Business person may see globalization as...

an opportunity to source goods and services from lower-cost locations and to pry open new markets.

Cultural Trait

anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts

Civil Law

based on detailed set of rules and statutes that constitute a legal code

Theocratic law

based on religious teachings

Ian Richards is vice president of new business development for a British-based Internet company. He will soon attend an international symposium on global Internet marketing in Brazil where he will meet people from around the world.After the symposium, Ian meets several company vice-presidents from the Japan office. When meeting with the Japanese associates, Ian should ________.

bow around 15 degrees

Multinational Corporation

business that has direct investments abroad in multiple countries

A ________ is a system of social stratification in which people are born into a social ranking, with no opportunity for social mobility.

caste system

In most failed centrally planned economies, ________.

central planning agencies specified production goals and decided prices

Social Groups

collections of two or more people who identify and interact with each other

Born Global Firm

company that adopts a global perspective and engages in international business from or near its inception

Trade Surplus

condition that results when the value of a nation's exports is greater than the value of its imports

Global Trading, LLC, is a distributor of computer software and hardware, steel and copper scrap, and telephone and electric utility equipment. Involved in three very different types of industries, the company faces many types of risks in its global business.Had the government taken over the assets of Global Trading without compensation, and not taken over the assets of any other company, the government's actions would be an example of ________.

confiscation

Types of political risk

conflict and violence, terrorism and kidnapping, property seizure, policy changes, local content requirements

A country's ________ system consists of the structure and processes it uses to allocate its resources and conduct its commercial activities.

economic

cultural literacy

detailed knowledge about a culture that enables a person to work happily and effectively within it

Social Structure

embodies a culture's fundamental organization, including its groups and institutions, its system of social positions and their relationships, and the process by which its resources are distributed.

Donna Bader is a successful global business executive with 15 years of marketing experience throughout Europe. Donna is participating in a forum designed to prepare young executives for their initial forays into international business.Donna believes that to be successful globally a company must design and build products and services for export from the beginning, not as an afterthought following the conquest of domestic markets. Donna is referring to the principle that businesses should ________.

emphasize global awareness

The belief that one's own ethnic group or culture is superior to that of others is referred to as ________.

ethnocentricity

To function smoothly and properly, a market economy requires all of the following EXCEPT ________. free enterprise free monopoly price flexibility free choice

free monopoly

Globalization impact on income inequality (debate 1)

globalization is increasing income inequality among people within nations. Opponents of globalization argue that freer trade and investment allows international companies to close factories in high-wage developed nations and to move them to low-wage developing nations.

Whereas relocating production to low-cost locales traditionally meant production of ________ almost exclusively, it increasingly applies to the production of ________

goods; services

Values

ideas, beliefs, and customs to which people are emotionally attached

Tacky Toys, a U.S.-based toy retailer, buys all its merchandise from Mushi Toys, a Japan-based toy manufacturer with production facilities in 12 nations. Mushi Toys markets its toys globally without modification.Tacky Toys buying its merchandise from Mushi Toys is an example of ________.

importing

The United Kingdom and the United States value ________, whereas Japan and South Korea value ________.

individual freedom; group consensus

Any commercial transaction that crosses the borders of two or more nations is known as ________

international business

North Korea practices a policy of self-reliance known as ________.

juche

Antitrust laws

laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages

Betsy Franklin, a young entrepreneur from Philadelphia, started her hand-crocheted purse business seven years ago. Betsy's business has since thrived and employs 150 people. Most of Betsy's business is within the United States with an occasional international order. But Betsy now wants to make a concerted effort to grow international sales and is designing her Web site to attract more customers located abroad. Betsy is meeting with Bob Rufus, a Web site designer, for help with the project.Betsy believes her success rests on her careful listening and responding to customers' needs. To ensure that her customers abroad can provide feedback easily, Betsy should ________.

learn what prospective customers seek to accomplish on her Web site

Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

mercantilism

For Hindus, the highest goal of life is ________.

moksha

Ian Richards is vice president of new business development for a British-based Internet company. He will soon attend an international symposium on global Internet marketing in Brazil where he will meet people from around the world.When Ian attends a luncheon with several Arab delegates he does not know, he should ________.

not use his left hand to pour drinks for his Arab associates

Sid Maxwell is head of legal affairs for Hudson Inc., a producer of animal figurines that include an embedded software program that makes animal sounds. Hudson is expanding its market to include parts of Asia and Maxwell is concerned about reports of software piracy in the region.Sid Maxwell is aware that all of the following statements are true EXCEPT ________. trademark protection typically last indefinitely consumers benefit from trademarks because they know what to expect from a particular brand pirated versions of trademarked products are always cheap and flawed imitations trademarks are words or symbols that distinguish a product and its manufacturer

pirated versions of trademarked products are always cheap and flawed imitations

Lobbying

policy of hiring people to represent a company's views on political matters

The likelihood that a society will undergo political change that negatively affects local business activity is called ________.

political risk

Attitudes

positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts

When there are gains to be had by both countries that are party to an exchange, international trade is considered a(n) ________.

positive-sum game

In a market economy, ________ allows most prices to rise and fall to reflect the forces of supply and demand.

price flexibility

Cultural Diffusion

process whereby cultural traits spread from one culture to another

The focus of factor proportions theory is on the ________.

productivity of the production process

cultural imperialism

replacement of one culture's traditions, folk heroes, and artifacts with substitutes from another

Trade Deficit

results when the value of a country's imports is greater than the value of its exports.

Globalization impact on income inequality (debate 2)

whether globalization is widening the gap in average incomes between rich and poor nations. Average incomes in high-income countries with average incomes in middle-andlow-income nations, we do find a widening gap.

Factor Proportions theory

states that countries produce and export goods that require resources (factors) that are abundant and imports goods that require resources in short supply.

Sergei Chernovl is a Russian exchange student. To learn more about how a market economy functions, Sergei is writing a research paper comparing business in Russia with business in the United States.Sergei knows that prices in a market economy are determined by the interplay of ________.

supply and demand

The Leontief paradox describes evidence ________.

that U.S. exports require more labor-intensive production than its imports

Factor proportions theory argues that a country should produce and export goods ________.

that require factors of production that are most abundant

An anthropologist may want to examine the influence of globalization on...

the culture of a group of people

A political scientist may be concerned with the impact of globalization on...

the power of governments relative to that of multinational companies

Secular totalitarianism can take on all the following forms EXCEPT ________. communist totalitarianism tribal totalitarianism right-wing totalitarianism theocratic totalitarianism

theocratic totalitarianism

Mercantilism

trade theory that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports

The Nike "Swoosh" is an example of a ________.

trademark

Purchasing power

value of goods and services that can be purchased with one unit of a country's currency

Aesthetics

what a culture considers "good taste" in the arts, the imagery evoked by certain expressions, and the symbolism of certain colors