Chapter 1 & 2 Quiz
In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as: A: Communists B: Capitalists C: Democrats D:Individualists E: Anarchists
A: Communists Question Feedback:In the early twentieth century, the socialist ideology split into two broad camps. The communists believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.
Which of the following best illustrates the globalization of production? A: Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process. B: Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in China to serve the Asian market. C: Uncle Crab, a U.K. fast food chain, has been serving customers worldwide through its franchises. D: Silver Unicorn Inc. uses sales personnel from the respective host country to sell its products and services. E: Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers.
A: Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process Question Feedback: The globalization of production refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital).
West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the: A: globalization of production. B: globalization of markets. C: dislocation of a developing nation's economy. D: restriction on foreign direct investment. E: regulation of the environment.
A: Globalization of production Question Feedback: Globalization of production is a trend followed by individual firms to disperse parts of their productive processes to different locations around the globe to take advantage of differences in cost and quality of factors of production.
A person who believes in public ownership of the means of production for the common good of society is a(n): A: socialist. B: capitalist. C: individualist. D: monarchist. E: feudalist.
A: Socialist Question Feedback: A socialist is someone who believes in public ownership of the means of production for the common good of society.
While the lowering of trade barriers made globalization of markets and production a theoretical possibility, which of the following has made it a tangible reality? A: The advances in communication, information processing, and transportation technologies B: The rise of communism and the need for independent economies on a global scale C: The increasing diversity in consumer tastes and preferences worldwide D: The increasing differences in the material culture the world over E: The decreasing significance of the World Trade Organization
A: The advances in communication, information processing, and transportation technologies. Question feedback: The lowering of trade barriers made globalization of markets and production a theoretical possibility. Technological change has made it a tangible reality.
Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012? A: United States B: Thailand C: Japan D: China E: South Korea
A: United States Question Feedback: In the early 1960s, the United States was still by far the world's dominant industrial power. In 1960, the United States accounted for 38.3 percent of world output, measured by gross domestic product (GDP). This change in the U.S. position was not an absolute decline because the U.S. economy grew significantly between 1960 and 2012 (the economies of Germany, France, and the United Kingdom also grew during this time).
The sale of state-owned enterprises to independent, nonpublic investors is referred to as: A: privatization. B: nationalization. C: collectivism. D: communalism. E: public action.
A: privatization. Question Feedback: Privatization involves the sale of state-owned enterprises to private investors.
Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that: A: significant differences still exist among national markets. B: cultural diversity has been replaced by global uniformity. C: the global market is less complex than national markets. D: only multinational giants can benefit from the globalization of markets. E: the social norms in a country do not affect purchase decisions of consumers
A: significant differences still exist among national markets. Question Feedback: Significant differences still exist among national markets along many relevant dimensions, including consumer tastes and preferences, distribution channels, culturally embedded value systems, business systems, and legal regulations. These differences frequently require companies to customize marketing strategies, product features, and operating practices to best match conditions in a particular country.
Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of global markets? A: Differences in business systems and legal regulations lead companies to customize their marketing strategies, product features, and operating practices to best match conditions in a particular country. B: As rival global firms follow each other across countries, they bring with them their brand names, products, and marketing strategies from other national markets, thus creating homogeneity across markets. C: Truly innovative companies succeed by developing products that serve specific needs of the local markets. D: The volume of goods, services, and investment crossing national borders has expanded at a slower rate than world output for more than half a century. E: The most global of markets are not typically markets for consumer products, as significant differences in consumer tastes and preferences still exist among national markets.
B: As rival global firms follow each other across countries, they bring with them their brand names, products, and marketing strategies from other national markets, thus creating homogeneity across markets. Question Feedback: As firms follow each other around the world, they bring with them many of the assets that served them well in other national markets—including their products, operating strategies, marketing strategies, and brand names—creating some homogeneity across markets. Thus, greater uniformity replaces diversity.
In the country of Normian Republic, an individual's right to own land is restricted to a large extent on the basis that it runs counter to "the common good." In this context, which of the following is most likely to be the political system adopted by Normian Republic? A: Individualism B: Democracy C: Collectivism D: Capitalism E: Protectionism
C: Collectivism Question Feedback: Collectivism refers to a political system that stresses the primacy of collective goals over individual goals. In such circumstances, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society" or to "the common good."
What is the shift toward a more integrated and interdependent world economy called? A: International trade B: Foreign direct investment C: Globalization D: Moore's Law E: Containerization
C: Globalization Question Feedback: Globalization refers to the shift toward a more integrated and interdependent world economy. Globalization has several facets, including the globalization of markets and the globalization of production.
In practical terms, which of the following translates into an advocacy for democratic ideals and free market economics, which in general creates the most favorable environment for international businesses to operate in? A: Collectivism B: Totalitarianism C: Individualism D: Communism E: Socialism
C: Individualism Question Feedback: In practical terms, individualism translates into an advocacy for democratic ideals and free market economics, which in general creates a more favorable environment for international businesses to operate in.
Richard purchased a computer for $600 in 2014. Compared to the $900 computer that he had purchased way back in 2010, the new one seems to be more efficient in terms of the price he has paid and the power of the microprocessor technology. This is best explained by: A: product liability. B: property rights. C: Moore's law. D: purchasing power parity. E: sustainable strategies.
C: Moore's law. Question Feedback: The cost of microprocessors continues to fall, while their power increases (a phenomenon known as Moore's law, which predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months).
Which of the following refers to the total cumulative value of foreign investments? A: Purchasing power parity B: Multipoint pricing C: Stock of foreign direct investment D: Switch trading E: Bill of lading
C: Stock of foreign direct investment Question Feedback: The stock of foreign direct investment refers to the total cumulative value of foreign investments.
A common feature of many right-wing dictatorships is: A: total restriction on individual economic freedom. B: strong commitment to socialist or communist ideas. C: governments that are made up of military officers. D: politicians from a particular tribe dominating the political system. E: the direct involvement of the citizens in decision making.
C: governments that are made up of military officers. Question Feedback: A common feature of many right-wing dictatorships is an overt hostility to socialist or communist ideas. Many right-wing totalitarian governments are backed by the military, and in some cases the government may be made up of military officers.
The Cedian government believes that its citizens should have complete freedom in their economic and political pursuits, and the Cedian ideology is "private profit over public good." In this context, it can be said that Cedia most likely follows the philosophy of: A: totalitarianism. B: socialism. C: individualism. D: communism. E: Marxism.
C: individualism. Question Feedback: Individualism stresses that the interests of the individual should take precedence over the interests of the state.
Which of the following has seen a positive change from 1960 to 2012? A: Growth of the centrally planned economies of the communist world B: U.S. position in the world economy and world trade picture C: The share of world output enjoyed by rich industrialized countries such as Great Britain, Germany, and Japan D: The share of world output accounted for by developing nations E: Prevalence of independent and self-contained national economies
D: The share of world output accounted for by developing nations Question Feedback: Most forecasts now predict a rapid rise in the share of world output accounted for by developing nations such as China, India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil, and a commensurate decline in the share enjoyed by rich industrialized countries such as Great Britain, Germany, Japan, and the United States.
A totalitarian political system in which a party, group, or individual that represents the interests of a particular ethnic group monopolizes political power is referred to as: A: theocratic totalitarianism. B: communist totalitarianism. C: right-wing totalitarianism. D: tribal totalitarianism. E: democratic totalitarianism.
D: tribal totalitarianism Question Feedback: Tribal totalitarianism refers to a political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power. Tribal totalitarianism has arisen from time to time in African countries such as Zimbabwe, Tanzania, Uganda, and Kenya.
Which of the following services CANNOT be outsourced to foreign nations? A: Debugging software B: Handling consumer queries C: Transcribing medical files D: Interpreting MRI scans E: Delivering closing arguments for a lawsuit
E: Delivering closing arguments for a lawsuit Question Feedback: While corporations can outsource routine legal work to foreign nations to lower costs, they need attorneys to handle their trials and lawsuits—make opening statements and closing arguments, etc.
Which of the following applies to most totalitarian states? A: Free and fair elections are not denied to the citizens. B: There is free access to state information. C: All the basic civil liberties are granted to the citizens. D: The right to freedom of expression and organization is not curbed. E: Media are heavily censored.
E: Media are heavily censored Question Feedback: