FVC1--Global Business--Chapter 1

Which of the following is NOT true regarding results from a survey by the World Bank on corporate social responsibility (CSR)? --CSR practices are now a significant factor in determining where multinational companies conduct business. --90% of the companies surveyed have board-approved policies on environmental management. --CSR includes issues such as labor rights, corruption, human rights, community health, and land rights. --CSR issues consistently implemented for the long term lead to sustainable business development. --90% of multinationals will make their decisions based on CSR issues with regard to foreign direct investment.

--90% of multinationals will make their decision based on CSR issues with regard to foreign direct investment.

A sustainable decoupling process would eventually lead to _________. --Income inequity. --A multi-polar world. --Outsourcing. --Globalization. --Transparency.

--A multi-polar world.

In Brazil, if there are government organizations that create strong incentives for private investment and operate under a system of checks and balances that function best in a democratic system of government, they could be classified as which of these? --Antitrust corporation. --Adaptive institutions. --Transparent organizations. --Emerging markets. --Capital markets.

--Adaptive institutions.

Which of the following is NOT true regarding competitive market? --Regulations that promote free domestic markets also tend to promote globalization. --Antitrust laws interfere with the natural growth of successful businesses. --Antitrust laws must be eliminated if competitive markets re to be sustained. --Governments try to minimize the role of state-owned enterprises in market economies. --Successfully globalized economies strive to attain competitive markets at home.

--Antitrust laws must be eliminated if competitive markets re to be sustained.

ABC Technology touts in their advertisements that their technology can transfer huge amount of data and other information in a second via the Internet. This describes ABC's _____ in technology. --Digital server. --Digital divide. --Gigabytes. --Y2K. --Bandwith.

--Bandwith.

To sustain globalization, nations must build institutions that support all of the following EXCEPT: --Free markets. --A free press. --Command economies. --Democratic systems of government. --Independent judiciaries.

--Command economies.

Successive waves of globalization include characteristics such as the expansion of trade, the diffusion of technology, extensive migration, and ______________. --Improved healthcare. --Improvements in country infrastructure. --Increased employee morale. --Cross-fertilization of diverse cultures. --Financial independence.

--Cross-fertilization of diverse cultures.

Illicit dealings undermine economic performance by doing all of the following EXCEPT: --Reducing transparency. --Decreasing costs. --Raising competition. --Raising insecurity. --Thwarting competition.

--Decreasing costs.

Countries that have been moving toward more open trade and free market policies are known as ___________. --Emerging economies. --Open-door economies. --Industrialized countries. --Globalized economies. --African countries.

--Emerging economies.

Trade without discrimination, freer trade, predictability, promotion of fair competition, and _____ are the five principles of the multilateral trading system. --Establishment of "most favored nation" status. --Integrated capital markets. --Encouragement of economic reform in developing countries. --Liberalization of the trading system. --Nontariff trade.

--Encouragement of economic reform in developing countries.

Which of the following is NOT a key aspect of globalization? --The elimination of barriers to trade. --Financial independence. --Information technology. --Investment. --Culture.

--Financial independence.

Of the following, which is NOT true regarding the Internet and cell phone era? --Developing countries may "leapfrog" an entire generation of technology. --Text messaging will likely predominate emerging economies; mobile phone usage. --Countries are skipping the use of land-line technology and jumping to wireless systems. --The majority of users will be from developing countries. --Fortunately, the next billion users will be the same as the first billion.

--Fortunately, the next billion users will be the same as the first billion.

Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United States. Brazilian juice is engaging in: --Economic development in the United States. --Unfair trade practices. --The World Trade Bank Group. --Globalization. --Exercising nontariff barriers in Brazil.

--Globalization.

According to the authors, which of the following is NOT true regarding globalization lessons for developing countries? --Countries emphasizing exports should base their strategy on their true competitive advantage. --For countries with large populations, the size of the domestic market remains most important. --Overindulgence can lead to disaster. --Export oriented nations must diversify their market to include major emerging economies. --Import oriented nations must switch to concentrate on domestication.

--Import oriented nations must switch to concentrate on domestication.

The only way workers in industrialized countries can compete with their counterparts in the developing world will be through: --Increased empowerment of employees. --Increased use of the cost leadership strategy. --Increased diversity within the organization. --Increased flat organization structure. --Increased productivity by using technologically-intensive manufacturing technologies.

--Increased productivity by using technologically-intensive manufacturing technologies.

Increasingly, emerging economies are: --Innovative and technologically advanced. --Simply copying the technologies used in more advanced economies. --Sources of inexpensive labor. --Being left behind in the global economy. --Largely agricultural.

--Innovative and technologically advanced.

Which of the following is NOT true regarding globalization? --It guarantees that quality of life for all people will increase. --Export barriers may need to be imposed by the WTO to help regulate the actions of multinational companies. --Some multinational companies will utilize globalization may try to pay substandard wages to the workers they employ in developing countries. --It creates winners and losers. --It has potential to increase the quality of life for people.

--It guarantees that quality of life for all people will increase.

All of the following are arguments against globalization EXCEPT: --It may lead to an erosion of communities. --It can cause job losses and stagnant wages. --It may lead to a loss of control over economic policies and developments. --It may lead to an increase in the appearance of old industries. --It can be a force of exploitation and injustice.

--It may lead to an increase in the appearance of old industries.

The rapid fall in prices of digital IT equipment and services may _________. --Spell the end of the digital era. --Localize the production of goods and services. --Make digital divide a myth. --Reduce the importance of IT in the global economy. --Reduce the availability of bandwidth in developed economies.

--Make digital divide a myth.

A world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone can be described as a(n) ________________. --Diverse world. --Globalized economy. --Multi-polar world. --Industrialized world. --Interdependent world.

--Multi-polar world.

Which of the following is NOT an objective of the WTO? --Review national trade policies. --Naming commissioners to local trade organizations. --Acting as a forum for trade negotiations. --Settling trade disputes. --Administering trade agreements.

--Naming commissioners to local trade organizations.

All of the following countries an be considered globalization "winners" EXCEPT: --China --Brazil --South Africa --North Korea --India.

--North Korea.

The International Finance Corporation (IFC) performs which of the following functions? --Works on issues related to foreign investment disputes. --Provide political risk coverage for private investments made in developing countries. --Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets. --Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members. --Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies.

--Provide loans and take equity position in private companies of developing countries and works towards developing capital markets in those economies.

Which of the following is NOT a main purpose of the IMF? --Promote exchange rate stability. --Provide long-term low-interest social sector and infrastructure loans. --Facilitate the sustainable growth of international trade. --Lend countries foreign exchange when needed. --Provide a forum for cooperation on international monetary problems.

--Provide long-term low-interest social sector and infrastructure loans.

The Multilateral Investment Guarantee Agency performs which of the following functions? --Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies. --Supports reconstruction and restructuring of ember countries utilizing funds raised in international capital markets. --Works on issues related to foreign investment disputes. --Provides political risk coverage for private investments made in developing countries. --Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members.

--Provides political risk coverage for private investments made in developing countries.

The most recent devices that enable the greatest ease in portability and accessibility of information are ____________. --Advertisements. --Newspapers. --Smart phones. --Computers. --Magazines.

--Smart phones.

The International Bank For Reconstruction and Development performs which of the following functions? --Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members. --Supports reconstruction and restructuring of member countries utilizing funds raise in international capital markets. --Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies. --Works on issues related to foreign investment disputes. Provides political risk coverage for private investments made in developing countries.

--Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets.

An office uses printer paper made primarily of recycled paper. This is an example of a _________ policy. --Next-generation consumer hook. --Sustainable development. --Digital divide. --Global warming.

--Sustainable development.

What was the initial primary role of the World Bank? --To provide low-interest mortgage loans to minorities. --To try to avoid repetition of the disastrous economic policies that had contributed to the Great Depression. --To deal primarily with tariff negotiations. --To provide loans and take equity position in private companies. --To aide in the reconstruction of Europe after World War II.

--To aide in the reconstruction of Europe after World War II.

In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on __________. --Integrity. --Accountability. --Transparency. --Democracy. --Politics.

--Transparency.

Decoupling

A fundamental global shift in which industrialized country-dependent developing economies begin to grow based on their own underlying economic strengths rather than the ups and downs of the world's richest countries.

Capital Markets

A stock exchange where long-term financial instruments such as stocks and bonds can be bought and sold.

Transparency

A system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism.

Accountability

A system of responsibility in which an authority, such as the government, is answerable for its actions.

Multipolar World

A world economy in which the engines of growth could comprise several major industrialized and emerging economies, such as the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone.

Emerging Economies

Countries that are implementing more open trade and free-market policies.

Sustainable Development

Economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs whether environmentally, socially, or economically.

Sustainable Development

Economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially, or economically.

Economic Reforms

Economic policy changes that promote private sector development, competitive markets, market pricing, freer trade, and dergulation.

The small wineries of Canada believe that the image of Canadian wines is enhanced because of blending with Australian and Chilean "terroir."

False.

True or False: Because Canada has a small population, domestic wine supplies are almost enough to meet local demand and very little imported wine is needed.

False.

True or False: Canada's domestic vineyards are located in the Mediterranean climatic region of British Columbia and southern Ontario in Western Canada.

False.

Adaptive Institutions

Government organizations that create strong incentives for private investment and operate under a system of checks and balances.

Liberalization of the Trading System

Lowering and/or removing trade barriers such as tariffs, quotas, and subsidies.

Antitrust Laws

National laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms.

Bandwidth

The amount of data and other information that can be transferred in a second via the Internet.

Bandwidth.

The amount of data and other information that can be transferred in a second via the internet.

Digital Divide

The perceived economic gap between countries or people with easy access to digital and information technology (and its benefits) and those with very limited access, or none at all.

Digital Era

The period of transformation that adjusts lifestyles to make the Internet and wireless technologies a part of everyday life.

Digital Era.

The period of transformation that adjusts lifestyles to make the Internet and wireless technologies a part of everyday life.

Institutions

The rules, enforcement mechanisms, and organizations that support market transactions.

Globalization

The socioeconomic reform process of eliminating trade, investment, information technology, and cultural and political barriers across countries, which in turn can lead to increased economic growth and geopolitical integration and interdependence among nations of the world.

International Monetary System

The system of exchange rates and international payments that enables countries and their citizens to purchase goods and services from one another.

The Web

The world wide web, abbreviated "www" and commonly known as the web; a system of interlinked documents contained and accessed via the Internet.

The Web.

The world wide web, abbreviated "www" and commonly known as the web; a system of interlinked documents contained and accessed via the Internet.

True or False. Canadians consume a lot of blended wines that are labeled as cellared in Canada.

True.