ch 1 Int Mngmnt
Identify the reasons why Mexican firms are now able to produce products at highly competitive prices. (Check all that apply.) Multiple select question. Because of the availability of low-cost labor Because the Mexican market is close to the American market Because of the decline of the maquiladora system Because Mexico is a member of the Group of Seven (G7) economies
Because of the availability of low-cost labor Because the Mexican market is close to the American market
Asian-facing countries have negotiated an ambitious, next-generation, Asia-Pacific trade agreement under the _________ ________ ________ ________ for Trans-Pacific Partnership (CPTPP).
Blank 1: Comprehensive Blank 2: and Blank 3: Progressive Blank 4: Agreement
________ ________ ________ (FDI) is the term used to indicate the amount invested in property, plant, and equipment in another country.
Blank 1: Foreign Blank 2: direct Blank 3: investment
Very large, family-held Korean conglomerates that have considerable political and economic power are called ______.
Blank 1: chaebols
In Japan, the term __________refers to an organizational arrangement in which a large, often vertically integrated group of companies cooperate and work closely with each other to provide goods and services to end users.
Blank 1: keiretsu or keiretsus
The ___________ system refers to a factory, the majority of which are located in Mexican border towns, that imports materials and equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export.
Blank 1: maquiladora
A combination of a market and a command economy is called a(n) ______ ______
Blank 1: mixed Blank 2: economy
The economy of _____ outweighs that of any other South American country and has become a worldwide presence with an economic output comparable to that of France. Multiple choice question. Argentina Brazil Venezuela Chile
Brazil
Which of the following helped Russia to increase the gross domestic product (GDP) and decrease inflation, offsetting the hyperinflation created from the initial attempt at transitioning to a market-based economy in the early 1990s? (Check all that apply.) Multiple select question. Direct investment in Russia Institution of the maquiladora system Russia's membership in the International Monetary Fund (IMF) Russia's membership in the MIST group of economies
Direct investment in Russia Russia's membership in the International Monetary Fund (IMF)
Identify the pro-business initiatives taken by Enrique Peña Nieto as the president of Mexico. (Check all that apply.) Multiple select question. The Mexican oil industry was nationalized. Greater competition was forced in telecommunications. The Mexican auto industry was expanded. Mexico became part of the Group of Seven (G7) economies.
Greater competition was forced in telecommunications. The Mexican auto industry was expanded.
Which of the following refers to the economy of Mexico? Multiple choice question. More than 90 percent of Mexico's trade takes place under free-trade agreements. Mexico is one of the Group of Seven (G7) economies. Mexico has free-trade agreements only with the United States and Canada. Mexico is the United States' largest trading partner.
More than 90 percent of Mexico's trade takes place under free-trade agreements.
Identify a true statement about foreign direct investment (FDI). Multiple choice question. FDI has increased drastically in recent years. Most of the decrease in FDI investment is happening among developed economies. Reducing FDI suggests that African countries could constitute the next wave of dynamic emerging markets. Most of the decrease in FDI investment is happening among countries like India.
Most of the decrease in FDI investment is happening among developed economies.
Which of the following is the United States' second largest free trade zone in Latin America after Mexico that was implemented on a rolling basis between 2006 and 2009? Multiple choice question. The Dominican Republic-Central American Free Trade Agreement export zone The Oshikango (Namibia-Angola) Border Export Processing Zone The New Jubilee Agro-Industrial Economic Zone The Zonamerica Business and Technology Park, Uruguay
The Dominican Republic-Central American Free Trade Agreement export zone
Which of the following groups of economies suspended Russia in 2014 after a series of political differences between the economies and Russia? Multiple choice question. The Group of Seven (G7) economies The MIST The N-11 (N stands for "next") The CEVITS
The Group of Seven (G7) economies
What is the ultimate objective of the European Union (EU)? Multiple choice question. To become a member of the BRICS group of economies To facilitate the functioning of the maquiladora system To become the United States' largest trading partner To remove all trade barriers among member countries
To remove all trade barriers among member countries
True or false: A Japanese multinational corporation (MNC) often can get things done more quickly and profitably than its international competitors if it is able to draw from the resources of the other parts of the keiretsu. True false question. True False
True
True or false: In India, the recent trend of locating software and other higher-value-added services has helped to strengthen a large middle- and upper-class market for goods and services. True false question. True False
True
True or false: Poland instituted radical economic reforms earlier than its neighbors. True false question. True False
True
True or false: The European community believes that forcing Greece to accept severe austerity measures is necessary to assure financial stability and repayment of bailout funds. True false question. True False
True
True or false: The Ministry of International Trade and Industry (MITI) of Japan has given primary attention to the ABCD (automation, biotechnology, computers, and data processing) industries in recent years. True false question. True False
True
According to PricewaterhouseCoopers (PwC), the gross domestic product (GDP) of the E7 would _____. Multiple choice question. shrink at an annual rate of 3.8 percent through 2050 be equal to that of the Group of Seven (G7) economies by 2060 expand at an annual rate of 1.2 percent through 2050 exceed that of the Group of Seven (G7) economies by around 2030
exceed that of the Group of Seven (G7) economies by around 2030
True or false: According to McKinsey, the global consultancy, the rate of return on foreign investment in Africa is lower than that for any other region. True false question. True False
false
True or false: There is a lack of cross-border investment among Latin American countries.
false
A market economy has the least restriction because _____. Multiple choice question. the particular goods and services offered are in response to the theoretical advancement of society the government has explicit control over the price and supply of a good or service resource allocation is roughly decided by the law of demand business practices are done in the best interest of the nation
resource allocation is roughly decided by the law of demand
Critics of globalization claim that _____. -job losses because of globalization are typically a natural consequence of economic and technological change -rising inequities in incomes as a result of economic globalization is a cause of concern -offshoring improves the competitiveness of American companies -citizens in underdeveloped countries will reap the benefits of large amounts of capital flowing into those countries
rising inequities in incomes as a result of economic globalization is a cause of concern
The Transatlantic Trade and Investment Partnership (T-TIP) is a suggested trade agreement between _____. Multiple choice question. the Russian Federation and the European Union the European Union and the United States Switzerland and the United States Norway and the Russian Federation
the European Union and the United States
In a close but decisive vote as part of a referendum in June 2016, the citizens of _____ became the first to vote to dissolve their membership in the European Union. Multiple choice question. the United Kingdom Norway the Czech Republic Bulgaria
the United Kingdom
A feature of a command economy is that _____. Multiple choice question. private enterprises reserve the right to monitor the production and supply of goods and services this model contains the least restriction as the allocation of resources is roughly determined by the law of demand the government has direct control over the price and supply of a good or service the state simply supports competition and efficient practices of private firms
the government has direct control over the price and supply of a good or service
Firms in a market economy must be as versatile as the individual consumer since _____. Multiple choice question. the interaction of the community and organizations leads the system the government has explicit control over the price and supply of a good or service business practices are done in the best interest of the nation goods offered are determined by the theoretical advancement of society
the interaction of the community and organizations leads the system
Identify the trends that pertain to global demographics. (Check all that apply.) Multiple select question. According to the Wall Street Journal, the working-age population will contract by nearly 5 percent worldwide by 2050. The amount of spending on health care-related services will keep on increasing rapidly. According to the Wall Street Journal, China will see a 20 percent increase in its working-class population by 2050. Elderly populations will spend income on housing and other capitally financed purchases.
According to the Wall Street Journal, the working-age population will contract by nearly 5 percent worldwide by 2050. The amount of spending on health care-related services will keep on increasing rapidly.
dentify the countries that are part of the European Union (EU). (Check all that apply.) Multiple select question. Norway Austria Croatia Liechtenstein The Czech Republic Latvia
Austria Croatia The Czech Republic Latvia
Identify the BRIC nations. (Check all that apply.) Multiple select question. Canada China Ireland Brazil India Russia
China Brazil India Russia Not Listed: South Africa
According to the United Nations' World Population Prospects: the 2015 Revision, _____ will be the most populous countries in the world in 2050. Multiple choice question. China and India Turkey and Algeria Iran and Brazil Russia and Canada
China and India
Based on the data on purchasing power parity (PPP), _____ would exceed the United States as the largest world economic power by 2050. Multiple choice question. Spain and Qatar Russia and Indonesia Turkey and Germany China and India
China and India
Identify a true statement about the voting of the United Kingdom to dissolve its membership in the European Union (EU) as part of a referendum in June 2016. Multiple choice question. It is legally binding according to the Treaty on European Union (TEU). Citizens voted to dissolve their membership in the bloc. It established the five-year withdrawal procedure for countries wishing to exit the EU. It was led by then Prime Minister Gordon Brown.
Citizens voted to dissolve their membership in the bloc.
Which of the following countries are part of the CEVITS, which is a group of economies? (Check all that apply.) Multiple select question. Colombia Egypt Vietnam South Africa Thailand India
Colombia Egypt Vietnam Indonesia Turkey South Africa
Which of the following refers to the practices in a market economy? Multiple choice question. Businesses ensure that investments are in the best interest of the nation. Management of an organization ignores demographic information. Competition is intensely promoted to foster innovation, economic growth, high quality, and efficiency. The particular goods and services offered are determined by the theoretical advancement of society.
Competition is intensely promoted to foster innovation, economic growth, high quality, and efficiency.
Greece has been forced to accept certain measures as it has accepted multiple bailout packages from the International Monetary Fund (IMF), the European Commission, and the European Central Bank between 2010 and 2015. What are those measures? (Check all that apply.) Multiple select question. Cuts to public spending Lower taxes Forced membership in the Group of Seven (G7) economies Freezing of government pensions and wages
Cuts to public spending Freezing of government pensions and wages
What are the findings of Goldman Sachs' 2001 report on the economic growth projected to occur in the BRIC nations? (Check all that apply.) Multiple select question. The BRIC economies will constitute only one of the top five most dominant economies by the year 2050. Economies of the BRIC nations will exceed the collective economies of the Group of Seven (G7) nations by 2032. BRIC's total weight in the world economy would diminish from approximately 20 percent in 2004 to less than 10 percent in 2025. The BRIC economies' share of world growth could increase from 20 percent in 2003 to more than 40 percent in 2025.
Economies of the BRIC nations will exceed the collective economies of the Group of Seven (G7) nations by 2032. The BRIC economies' share of world growth could increase from 20 percent in 2003 to more than 40 percent in 2025.
Identify the countries that are part of the N-11 group of economies. (Check all that apply.) Multiple select question. India Egypt Philippines South Korea Pakistan Saudi Arabia
Egypt Philippines South Korea Pakistan Not Listed: Bangladesh, Indonesia, Iran, Mexico, Nigeria, South Korea, Turkey, and Vietnam
True or false: In recent years, Canadian companies have restricted their business to Canada. True False
False
Which of the following are true about businesses in a command economy? (Check all that apply.) Multiple select question. Firms have the least restriction as the allocation of resources is roughly determined by the law of demand. Firms are owned by the government to ensure that business practices are done in the best interest of the nation. Firms are provided with government subsidies so they cannot go out of business. Firms give high importance to demographic information to create business opportunities.
Firms are owned by the government to ensure that business practices are done in the best interest of the nation. Firms are provided with government subsidies so they cannot go out of business.
Which of the following are examples that show that multinational corporations (MNCs) have been making direct investments in the Hungarian market? (Check all that apply.) Multiple select question. General Electric's purchase of Tungsram Microsoft's acquisition of aQuantive, Inc. Britain's Telfos Holdings that paid $19 million for 51 percent of Ganz Chaebols that invest in internationally known firms as Samsung and Daewoo
General Electric's purchase of Tungsram Britain's Telfos Holdings that paid $19 million for 51 percent of Ganz
which of the following countries are part of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)? (Check all that apply.) Multiple select question. Saint Barthélemy Honduras The United States Greenland El Salvador Nicaragua
Honduras El Salvador Nicaragua The United States
Bordering southeast China and now part of the People's Republic of China (PRC), _____ has been the headquarters for some of the most successful multinational functions in Asia. Multiple choice question. South Korea Hong Kong Singapore Taiwan
Hong Kong
Which of the following are included in the chaebols of South Korea? (Check all that apply.) Multiple select question. Hyundai The LG Group Kia Suzuki Telfos Holdings Samsung
Hyundai The LG Group Samsung
Argentina
In 2018, it experienced a financial crisis when its currency crashed, and its foreign debt became more expensive to repay.
In contrast to its fellow BRIC partners, _____ continues to post strong figures and has surpassed China in annual gross domestic product (GDP) growth rate in recent years. Ireland India Romania Russia
India
Which of the following continues to outpace China as the fastest growing large economy, with GDP expanding by over 7 percent in 2018? India Turkmenistan Turkey South Africa
India
In March 2006, PricewaterhouseCoopers (PwC) used the term E7 to refer to seven major emerging economies. Which of the following are part of the E7? (Check all that apply.) Multiple select question. Indonesia India Turkey Mexico Jordan Norway
Indonesia India Turkey Mexico Not listed: Brazil, China, & Russia
Which of the following are the MIST countries, which are grouped as a subset of the N-11 group of economies? (Check all that apply.) Multiple select question. India Indonesia South Korea Morocco Mexico Turkey
Indonesia South Korea Mexico Turkey
Identify an effect of the free-market-based economy of North America. Multiple choice question. It allows for greater flexibility when compared with other forms of economic systems. It institutes trade barriers for other countries to establish business. It restricts Asian countries from investing in the U.S. market. It lets the government explicitly control decision-making processes of private firms.
It allows for greater flexibility when compared with other forms of economic systems.
Chile
It attracts a lot of foreign direct investment, mainly associated with gas, water, electricity, and mining, and it continues to participate in globalization by engaging in trade agreements.
Hong Kong
It can depend heavily on southeast China for manufacturing, but the future and the role that the Chinese government wants to play in local governance is still uncertain
Antiglobalization activists
It corporations are free to locate anywhere in the world, the world's poorest countries will relax or remove environmental standards and social services to attract first-world investment and the accompanying jobs and wealth.
Singapore
It has developed as an urban planner's ideal example and the leader and financial center of Southeast Asia.
Argentina
It has one of the strongest economies overall, but it has suffered the recurring economic problems of inflation, external debt, capital flight, and budget deficits.
Mercosur
It is a customs union that connects the economies of Argentina, Brazil, Paraguay, Uruguay, and Venezuela.
The Andean Community
It is a subregional free trade compact that was made to promote economic and social integration and cooperation among Colombia, Ecuador, Bolivia, and Peru.
What are the functions of the Ministry of International Trade and Industry (MITI), a Japanese governmental agency, that contributed to the early success of the Japanese economy? (Check all that apply.) Multiple select question. It leads the distribution of national resources to meet trade-related goals. It recognizes and ranks the state's commercial pursuits. It explicitly controls the decision-making processes of foreign firms. It imports materials on a duty- and tariff-free basis for assembly.
It leads the distribution of national resources to meet trade-related goals. It recognizes and ranks the state's commercial pursuits.
Chile
Its market-based economic growth has varied between 2 and 6 percent since the early 2000s and is one of the best and most stable performances in Latin America.
What are the arguments put forward by the proponents of globalization? (Check all that apply.) Multiple select question. Offshoring boosts the competitiveness of American firms and increases the size of the overall economic pie. The main winners of globalization are company executives. Job losses are a natural outcome of economic and technological change as part of globalization. Growing trade deficits and slow wage growth continue to improve economies worldwide because of globalization.
Offshoring boosts the competitiveness of American firms and increases the size of the overall economic pie. Job losses are a natural outcome of economic and technological change as part of globalization.
Which of the following countries are represented by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)? (Check all that apply.) Multiple select question. India Peru- New Zealand- Romania Japan-
Peru New Zealand Japan
The economy of _____ was the only economy in the European Union (EU) that continued developing during the global recession of 2008-2009. Multiple choice question. Hungary Poland Bulgaria Norway
Poland
Identify a true statement about a market economy. Multiple choice question. Private enterprises have the right to own property and oversee the production and distribution of goods and services. The particular goods and services offered are not necessarily in response to consumers' stated needs but are determined by the theoretical advancement of society. The government has explicit control over the price and supply of a good or service. Businesses ensure that investments are done in the best interest of the nation.
Private enterprises have the right to own property and oversee the production and distribution of goods and services.
proponents of globalization
Protectionist policies, not trade and investment liberalization, lead to environmental and social damage within the developing world.
Which of the following is the largest oil producer in the Arab world that was forced to reduce fuel, water, and power subsidies it provides to its citizens after experiencing a U.S.$98 billion budget deficit in 2015? Multiple choice question. Syria Iraq Mauritania Saudi Arabia
Saudi Arabia
Which of the following is true about a mixed economy? Multiple choice question. It creates an environment where little motivation exists to improve customer service. Some sectors are privately owned and have the freedom and flexibility of the law of demand, while other sectors are subject to government planning. Private enterprise reserves the right to own property and monitor the production and distribution of goods, while the state simply supports competition. It contains the least restriction as resource allocation is roughly determined by the law of demand.
Some sectors are privately owned and have the freedom and flexibility of the law of demand, while other sectors are subject to government planning.
In 2010, the BRIC leaders of the founding members decided to join _____ to the group, making it the BRICS. Multiple choice question. Saudi Arabia South Africa Sri Lanka Singapore
South Africa
Identify the countries that are part of the EAGLES, which is a group of economies. (Check all that apply.) Multiple select question. Saudi Arabia South Korea Russia Guatemala Taiwan Egypt
South Korea Russia Taiwan Egypt Not Listed: Mexico, Indonesia, Turkey, China, Brazil, India, Russia, South Africa, Egypt and Taiwan
Identify the true statements about the Hungarian economy. (Check all that apply.) Multiple select question. Hungary is part of the Group of Seven (G7) economies. State-owned hotels in Hungary have been privatized. The Hungarian economy was the only economy in the European Union (EU) to continue to grow during the global recession of 2008-2009. Western firms have been entering into joint ventures with local firms in Hungary.
State-owned hotels in Hungary have been privatized. Western firms have been entering into joint ventures with local firms in Hungary.
Which of the following are true about Africa's economy? (Check all that apply.) Multiple select question. Sub-Saharan Africa's development stalled to a 20-year low in the wake of low oil prices and China's economic slowdown in 2015. Developing countries lack the institutions, infrastructure, and economic capacity to take full advantage of globalization. Telecommunications, banking, and retailing continue to decline, while Angola saw its economy slow down due in part to lower global fuel prices. Real gross domestic product (GDP) reduced by an average of 5.3 percent a year from 2000 through 2015.
Sub-Saharan Africa's development stalled to a 20-year low in the wake of low oil prices and China's economic slowdown in 2015. Developing countries lack the institutions, infrastructure, and economic capacity to take full advantage of globalization.
Which of the following are reasons why India is attractive to multinationals, especially U.S. and British firms? (Check all that apply.) Multiple select question. The Indian government gives funds for economic development. The infrastructure in India is better than that in most developed nations. Many Indians speak English, are very well educated, and are known as experts in advanced information technology. India has developed economically with a relatively small population base compared with Japan.
The Indian government gives funds for economic development. Many Indians speak English, are very well educated, and are known as experts in advanced information technology.
_____ is the global association of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies. Multiple choice question. The Fair Trade Federation The World Trade Organization (WTO) The Commonwealth of Independent States The International Workers' Association (IWA)
The World Trade Organization (WTO)
Which of the following goals of the European Union (EU) has finally largely become a reality? Multiple choice question. The institution of the maquiladora system The membership in the BRICS group of economies The establishment of a single currency and a regional central bank The elimination of all trade barriers among member countries
The establishment of a single currency and a regional central bank
Which of the following aspects of North America allows considerable liberty in decision-making processes of private firms? Multiple choice question. The free-market-based economy The focus on the theoretical advancement of society rather than consumer needs The explicit control of the government over the price and supply of a good or service The command economy
The free-market-based economy
Which of the following helps promote trade between the United States and Canada? Multiple choice question. The explicit government control of decision-making processes of private firms in Canada and the United States The trade barriers established by the United States in the market of BRIC nations The similarity between the legal and business environments in Canada and the United States The command economy of both the United States and Canada
The similarity between the legal and business environments in Canada and the United States
Identify a change in global demographics by 2050. Multiple choice question. The working-age population in Germany and Italy will shrink by over 20 percent. The working-class population in Japan will double compared to nonworkers. The working-age population will increase by nearly 5 percent worldwide. The working-class population in China will increase by 20 percent.
The working-age population in Germany and Italy will shrink by over 20 percent.
Unlike antiglobalization activists, proponents of globalization believe that _____. Multiple choice question. the main winners of globalization are company executives globalization will urge higher-polluting countries such as China and Russia into an integrated global community that adopts responsible measures to protect the environment the world's poorest countries will relax or eliminate environmental standards and social services in order to attract first-world investment and the wealth that comes with it growing trade deficits and slow wage growth improve economies
globalization will urge higher-polluting countries such as China and Russia into an integrated global community that adopts responsible measures to protect the environment
Taiwan
it has developed from a labor-intensive economy to one that is dominated by more technologically sophisticated industries, including banking, electricity generation, petroleum refining, and computers.
The economies of Arab and Central Asian countries depend almost exclusively on _____. Multiple choice question. diamond mining oil production coal production silk farming
oil production
Sub-Saharan Africa's development stalled to a 20-year low in the wake of low oil prices and China's economic slowdown in 2015. Developing countries lack the institutions, infrastructure, and economic capacity to take full advantage of globalization.
privatization of telecommunications, power, and other infrastructure sectors
