MGMT 3080

The term globalization can be accurately defined by which statement(s)? (Check all that apply.)

As a process, it is an ongoing series of interrelated events. It involves the increasing movement of products and capital across national borders.

Identify the political and economic systems used today in China.

Authoritarianism and free enterprise

Match each level of the global wealth pyramid (in the left column) with the individual asset typically associated with that level (in the right column).

Base of the pyramid: work tools Middle Class: some home equity High wealth: home ownership Top of the Pyramid: more than $1,000,000 in overall assets

Drag and drop the goals of the sectors within the Kimberley Process against the corresponding sectors.

Business-Preserving the reputation of diamonds as a romantic symbolGovernment-Protecting legitimate diamond businessesCivil Society-Protecting consumers from inadvertently supporting civil war

Match the sector (in the left column) with the associated weakness (in the right column)..

Business-Short-term focusGovernment-BureaucraticCivil Society-Few financial resources

As globalization has expanded, the number of organizations related to which sector of society has grown dramatically to deal with related social issues?

Civil society

Why would a firm be interested in selling their products to people at the bottom of the pyramid? (Check all that apply.)

Collectively the market is vast.People at this level are often willing to pay a "poverty premium."

What benefits have microfinance lenders realized? (Check all that apply.)

Developed a global trend in micro loans. Increased profits. Helped millions of people.

How is the theory of comparative advantage used to improve productivity? (Check all that apply.)

Free trade Specialization Doing what one does best

Democracy is accurately described by which of these features? (Check all that apply.)

Freedom of religionFreedom to express political viewsFair elections

Match the globalization strategy on the left with its correct description on the right.

Global market channels- A firm first builds a successful business in its home country and then exports its products or services to buyers in other country.Global operations- A firm establishes manufacturing plants or service functions abroad.Global supply chains- A firm subcontracts manufacturing to suppliers located abroad.

Correctly identify the features of a central state control economic system. (Check all that apply.)

Government ownership Most markets are illegal

Vulture funds are most likely to harm which type of country?

Heavily indebted

Identify the true statements regarding the impacts of globalization _____. (Check all that apply.)

It exerts an influence on the economics of virtually every country in the world.It leads to the spread of technology, culture, and politics.It has an indirect or direct influence over international politics.

How does globalization benefit consumers? (Check all that apply.)

It tends to lower the price of goods.It tends to increase economic productivity.

When a business starts operations in another country, what is the cost to workers in the home country? (Check all that apply.)

Job insecurityStagnant wagesLower wages

In a democracy, ruling power is typically split between which branches of government? (Check all that apply.)

Judicial Legislative Executive

How do recipients benefit from microfinance? (Check all that apply.)

Micro loans can be secured without collateral.Small loans help farmers manage their land.Small loans help entrepreneurs grow their businesses.

At what level of the global wealth pyramid would $10,000 to $100,000 in individual assets fall?

Middle class

Correctly identify how political and economic freedoms are related. (Check all that apply.)

Open economic markets often give people more resources to successfully participate in politics.The more control people gain over government decisions, the more likely they will increase their economic freedom.

Income is defined by which of the following?

Periodic earnings

What is one unintended consequence of the World Bank and the IMF loaning large amounts of money to developing nations?

Persistent poverty remained.

According to the United Nations, this multinational enterprise had the largest amount of foreign assets in 2016.

Royal Dutch/Shell

What benefits do global customers at the bottom of the pyramid enjoy? (Check all that apply.)

Social development is increased.Immediate needs are satisfied.Employment opportunities are expanded.

What was the primary reason China adopted a free enterprise market system?

To increase economic development

Why did many commentators expect the trend of inversion to slow after the 2018 U.S. tax legislation was passed?

U.S. corporate tax rates were decreased from 35 percent to 21 percent.

How do vulture funds take advantage of weak and indebted companies? (Check all that apply.)

Vulture funds buy the defaulted debt at a discount.Vulture funds sue the company and demand repayment of loans with interest.

Match the international organization (in the left column) with its primary function (in the right column).

World Bank-Provides economic development loans to membersInternational Monetary Fund-Lends foreign currency to membersWorld Trade Organization-Establishes international trade rules

If a company wanted to file a complaint about a global trade issue, which organization would they contact?

World Trade Organization

According to the textbook, JP Morgan Chase (a bank) is a transnational organization because it _____.

controls banking assets in over 60 countries

When developed nations extend monetary aid to indebted countries, this is called _____.

debt relief

True or false: A firm can only implement a single globalization strategy at any given time.

false

True or false: Intel worked to eliminate all minerals sourced from the DRC, according to the case Intel and Conflict Minerals.

false

A strategy of acquiring or merging with a foreign firm in order to reduce corporate tax obligations at home is called _____.

inversion

When a firm relocates its operations specifically to avoid raising wages, this is called _____.

the race to the bottom

Assets accumulated up to a point in time are called ______.

wealth