International

In which of the following economies would the government be most likely to take into state ownership troubled firms whose continued operation is thought to be vital to national interests?

Mixed economies

What is the main reason that managing an international business differs from managing a domestic business?

Because countries differ in their cultures and systems.

Many states in Asia, Latin America, and Western Europe have shifted away from a mixed economy to a market-based economy. Which of the following measures is most likely to be promoted by such states?

Correct Deregulation of the economy

Which of the following is NOT an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?

Correct Reduced tariffs on imports of manufactured goods

A nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries.

False

Judges under a civil law system have more flexibility than those under a common law system.

False

Most people prefer to converse in English rather than their own language.

False

In a command economy, the prices are determined by the free interplay of demand and supply.

False, Before the collapse of communism, the governments in most command economies exercised tight control over prices and output, setting both through detailed state planning.

People who take food or safety for granted tend to be xenophobic, are wary of political activity, have authoritarian tendencies, and believe that men make better political leaders than women.

False;

A multinational enterprise (MNE) is any business that exports or imports products from other countries.

False; A multinational enterprise (MNE) is any business that has productive activities in two or more countries.

The term social strata refers to the extent to which individuals can move out of the strata into which they were born.

False; All societies are stratified on a hierarchical basis into social categories—that is, into social strata. These strata are typically defined on the basis of characteristics such as family background, occupation, and income.

In 2008 and 2009, the GATT became the forum though which major nations attempted to launch a coordinated policy response to the global financial crisis, which started in America.

False; Originally, the G20tx was established to formulate a coordinated policy response to financial crises in developing nations. In 2008 and 2009 it became the forum though which major nations attempted to launch a coordinated policy response to the global financial crisis that started in America and then rapidly spread around the world.

Porter's theory of national competitive advantage recommends unrestricted free trade between countries.

False; Porter's theory of national competitive advantage can be interpreted as justifying some limited government intervention to support the development of certain export-oriented industries.

The government of a country takes over the airport security industries following a major terrorist attack, to improve airport security. This is an example of privatization.

False; Privatization transfers the ownership of state property into the hands of private individuals, frequently by the sale of state assets through an auction.

A current trend in international business is the decline of medium-sized and small multinationals, known as mini-multinationals.

False; Since the 1960s, two notable trends in the demographics of the multinational enterprise have been (1) the rise of non-U.S. multinationals and (2) the growth of mini-multinationals.

The term society is another name for a country; each country has a single society.

False; The term society refers to a group of people who share a common set of values and norms. While a society may be equivalent to a country, some countries harbor several societies (i.e., they support multiple cultures), and some societies embrace more than one country.

A market with a large number of consumers, with low living standards will have a relatively large market when measured in economic terms.

False; While some markets are very large when measured by number of consumers (e.g., China and India), low living standards may imply limited purchasing power and therefore a relatively small market when measured in economic terms.

Which of the following statements about the Trade Related Aspects of Intellectual Property Rights (or TRIPS) agreement is NOT true?

It directed rich countries to comply with its rules of intellectual property protection within five years.

Which of the following is a major benefit of engaging in free trade?

It gives countries access to products that they cannot produce.

What is the total cumulative value of foreign investments best referred to as?

Stock of foreign direct investments

Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon?

The theory's arguments seem ethnocentric and increasingly dated.