MKT 310 Exam 1

Which of these companies is facing an impediment to the globalization of production?

US law dictates that Tru-Brite Dental cannot send X-rays electronically to be read by an overseas company

What is an accurate description of the World Bank?

It focuses on helping developing countries to fight poverty through investments in the underlying structure of the country.

Based on rankings by Forbes in 2003, the second-largest source country of multinational enterprises was

Japan

Which organization ensures that nation-states comply to the rules associated with trade treaties signed by member states?

WTO

In the early 20th century, communists differed from social democrats in that communists believed in

a strategy of revolutionary action

Legal risk is evident in a country that has

a violation of property rights

Social democrats advocate for

achieving socialism through non-violent means.

What is the objective of a pure command economy?

allotment of resources for the overall good of society

Early outsourcing efforts were mostly limited to _____ activities while today numerous business activities can be outsourced

Manufacturing

One concern voiced by critics of globalization is that

an interdependent global economy shifts economic power away from national governments and toward organizations such as the United Nations.

When assessing country attractiveness, the costs might include

corruption

To determine which country is attractive for potential investments, you need to balance which three considerations?

costs, risks, and benefits

While managing an international business, one of the tasks of managers is to

decide if it is ethical to accept the lower labor and environmental standards found in many less developed nations.

Critics of globalization protest in order to

diminish the impact of the culture of multinational enterprises on the world.

The globalization of markets and production implies that

domestic firms are facing intense competition from foreign firms.

In return for offering loans, the International Monetary Fund (IMF)

enforces its economic policies on nations.

Jeffrey Sachs argued that the ______ of a nation can have an impact on economic development.

geography

In 1994, the TRIPS agreement was extended to include

intellectual property

When assessing the legal factors that determine the cost of doing business in a country, it's important to know that

it can be more costly to do business in a country where local laws and regulations set strict standards with regard to product safety.

Along the continuum between democracy and totalitarianism, it can be said that

it is possible to have a democratic state in which some degree of collectivism exists

Those who support globalization argue that increasing globalization will

lead to reduced prices for goods and services.

What three factors are assessed to determine the Human Development Index of a country?

life expectancy at birth, average incomes, and educational attainment

The _____ often back(s) right-wing totalitarianism governments.

military

FlexFabric is a medium-sized company based in Virginia. Over the past five years, the company has increased its international trade efforts and now 35% of its business takes place overseas. FlexFabric is an example of a(n

mini-multinational

As international trade expands, the economies of the world's nation-states are becoming

more intertwined

As the barriers to the free flow of goods, services, and capital fell during the 1970s, one motivation for foreign direct investment by non-US firms was the desire to

move production activities to more desirable locations

The process of privatization fails to perform as expected when

newly privatized firms are protected from foreign competition.

Which Greek philosopher is credited with advocating the origins of collectivism?

plato

Land, labor, capital, and energy are all examples of factors of

production

Technological innovation and low-cost transportation have _____ the cultural distance between countries

reduced

Global institutions are needed to

stabilize and monitor the global marketplace.

The decline of the United States standing in industrial power since the 1960s, is considered a relative decline because it is a reflection of

the faster economic growth of other economies

In some countries, barter agreements take the place of cash transactions and this skews the "official" economic activity figures. This is referred to as _

the shadow economy

How did nation-states react to the economic environment of the 1920s and 1930s?

trade barriers were increased

For privatization to work, it must be accompanied by a more general deregulation and opening of the economy

true

A country's stock of foreign direct investment is the total cumulative value of foreign investments that are taken as a percentage of that country's

GDP

Brite-Way Lighting is based in California and sells products within the United States as well as to ten foreign countries. Brite-Way Lighting is an example of a(n) _____ business

International

If you were to describe the global economy of the twenty-first century, it would be accurate to say that

More nations are becoming part of the developed world

By the end of the 1970s in Great Britain, state-owned companies monopolized the telecommunications, gas, railway, electric, and shipbuilding industries. This was a reflection of which political system in place at the time?

Social democracy

What is an example of a transaction that would take place in the shadow economy of a country?

To avoid paying the federal gift tax, the broker advised his client to transfer the funds without declaring them as a gift.

According to critics of globalization, increased free trade and investment over the past few decades have

broadened the gap between the rich and poor nations.

Karl Marx would agree that

capitalists take the value created by workers for their own use.

The ____ is an example of an industry that has weak enforcement of intellectual property rights

computer software industry