Chapter 10

What are the impacts of poor countries' consumption patterns on wealthy countries?

As business facilitates exchanges, consumption beyond basic needs will increase globally. The important issues related to consumerism include all but which of the following?

Saudi Arabia

Power distance dimension refers to the "power inequality" between superiors and subordinates. Which of the following countries probably ranks high on the power distance scale?

World Trade Organization

The _____ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations

International Monetary Fund

The _____ was a result of a meeting in which international leaders decided that primary responsibility for the regulation of monetary relationships among nations should rest in an external body.

privacy.

The growth of the Internet and differing security laws between countries has led to an increase in concern for the human right of

dumping.

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as

Socialism

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production?

It makes short-term loans to member countries that have deficits and provides foreign currencies for its members.

What is a major role of the International Monetary Fund (IMF)?

To promote human rights, sustainability, and eradicate corruption

What is the purpose of the UN Global Compact?

Imposing export taxes to force MNCs to share more of their profits

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?

The right to electricity and running water

Which of the following is not an article in the UN Human Rights Declaration?

International Monetary Fund

Which of the following organizations emerged from the Bretton Woods agreement of 1944, where a group of international leaders decided that the primary responsibility for the regulation of monetary relationships among national economies should rest in an extra-national body?

MNCs are inherently unethical and always do harm in the countries in which they operate.

Which of the following statements about multinational corporations (MNCs) is false?

China and India

Which two developing countries are expected to generate some of the largest increases in consumption in the future?

Laissez-faire economics

_____ assume(s) that a the market, through its own inherent mechanisms, will keep commerce in equilibrium.

Behavioral economics

_____ assumes that economic decisions are influenced by human behavior.

Human rights

_____ has been codified in a United Nations document and is defined as an inherent dignity with equal and inalienable rights as the foundation of freedom, justice, and peace in the world.

Geert Hofstede

_____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity.

Rational economics

_____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants.

Made-to-break

_____ products encourage consumers to return and buy more. This approach is also known as planned obsolescence.