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