IB Midterm

Your 7-year-old sister and 5 of her friends open a lemonade stand every summer. This past summer, they made $40 per day for 45 days. The divided the money evenly between themselves. None of them paid taxes on their money. What was her contribution to annual national GDP? $150 $300 $1,800 $0

$0

An open account allows in importer to ________. pay after receiving the goods rush payment across borders prepay for goods avoid transaction delays

pay after receiving the goods

The World Bank was set up to __________ by providing _______ to poor governments. prevent wars, charitable donations prevent wars, subsidized loans promote education, charitable donations promote education, subsidized loans

prevent wars, subsidized loans

Individualism puts special emphasis on _______ division of labor property rights means of production citizen participation

property rights

Global companies use transfer pricing to ________. reduce taxes in low tax countries reduce profits in high tax countries avoid being double taxed avoid home country taxes

reduce profits in high tax countries

Raising the reserve requirement ________. reduces the availability of credit for businesses increases the total value of loans banks can make releases money into the economy fuels spending and investment

reduces the availability of credit for businesses

What is a "slush" fund? Cash given as illegal bonuses to upper-level management Cash spent just before the end of the year to boost expenses and minimize taxes Cash reserved to spill over into the upcoming year Cash reserved for bribes so the payments remain off the books

Cash reserved for bribes so the payments remain off the books

The International Fisher effect links Average international currencies now to average international currencies last year. Domestic currencies to the average international currency. Changes in international currencies to changes in the USD. Changes in a country's nominal interest rates to that country's currency exchange rates

Changes in a country's nominal interest rates to that country's currency exchange rates

Which of the following is not an example of globalization of production? Chinese vehicle part imported to a car manufacturing plant in the United States. Chocolate made in Austria is imported, sold, and consumed in the United States. Backpacks are made in India with fabric woven in South Africa. Oil from the Middle East is refined in Russia, in a plant made in China.

Chocolate made in Austria is imported, sold, and consumed in the United States.

Social stratification is Clustering people based on characteristics Clustering people based on cultural intelligence Dividing people based on compatibility Dividing people based on cultural norms

Clustering people based on characteristics

John wants to enter a foreign nation with his business. He knows the predominant religious beliefs of the area, role expectations for men and women, and communication styles. Which factor of his cultural quotient is apparently strong for John? Motivational CQ Cognitive CQ Universal CQ Behavioral CQ

Cognitive CQ

"Stare Decisis," or "stand on decided cases," means that earlier judgments _______. cannot be overturned are written into law set a precedence and should be upheld are irrelevant from case to case

set a precedence and should be upheld

Borivia is a country in Eastern Europe that was ruled by Auleria, a country in Western Europe, for over a century. It gained independence from Auleria in 1923. Now, Borivia has its own government. Given this information, it can be said that Borivia is a(n) _____. monarchy sovereign nation emerging market monopoly

sovereign nation

Which of the following is true? The developed world uses gold standard currencies, while the emerging world tends to use fiat currencies. Gold standard currencies fluctuate more readily than fiat currencies. Fiat currencies have intrinsic value. Currencies under the gold standard have intrinsic value.

Currencies under the gold standard have intrinsic value.

Using the Big Mac Index, if a Big Mac is relatively more expensive in Country A's currency than Country B's currency The country is relatively closed to trade. The country is reaching economies of scale. Currency A is overvalued. There is a high wealth distribution.

Currency A is overvalued.

Which of the following is not an example of macro political risk? Expropriation Currency controls Changes in tax law Political protest

Currency controls

Which of the following is a negative factor for international businesses when dealing in politically free markets? Customers are more discriminating in their choices. Customers have more discretionary income. Customers have less discretionary income. Customers are less discriminating in their choices.

Customers are more discriminating in their choices.

The United States government realizes that consumption is falling, which may lead to a recession. They make a change in their fiscal policy. This may include which of the following? Decrease taxes Pay off debt Decrease spending Increase taxes

Decrease taxes

Mary owns a U.S. based company and wants to open a store in Japan. She will have to exchange her USD for Yen in order to finance the rent and payroll. Which of the following situations would put her at the greatest advantage as far as the exchange rates go? Decreased demand for USD Political unrest in the United States Rapid inflation in the United States Depreciating yen relative to USD Increased demand for yen

Depreciating yen relative to USD

A government's only interaction with their currency is printing more of their money and buying other country's currencies. This is an example of which of the following government policy types? Managed Float Peg Dollarization Float

Float

All but which of the following should be assessed under the economic factor in PEST? Customer preferences Industry specific conditions Foreign property rights Foreign government's economic policies

Foreign property rights

What is privatization? When a government transfers ownership of a certain property or industry from its control to the private sector A slow and permanent change in political ideology from more collective to more individual thinking Limiting government access to managerial records in order to preserve company specific innovation A revolutionary and rapid change in political ideology from more individual to more collective thinking

When a government transfers ownership of a certain property or industry from its control to the private sector

Sam bought a new car in 2011 for $20,000. In 2015, Sam sold his car to Joe for $12,000. What contributions did the sale of the car make in 2011 and 2015 respectively? $20,000; $12,000 $20,000; $0 $0; $32,000 $20,000; $8,000

$20,000; $0

What is a "living language"? A language that is spoken by more than 5% of the world A language that has a growing population A language that is spoken by a native population A language that continues to make new words

A language that is spoken by a native population

A Korean bank (bank 1) buys $500.00 USD for 550,000 KW. One of the bank's customers comes in and exchanges 300,000 KW for $260.86 USD. The spot exchange rate is 1,150 KW / 1 USD. Impossible to determine. 1,100 KW / 1 USD. 1,000 KW / .9 USD.

1,100 KW / 1 USD.

A Korean bank (bank 1) buys $500.00 USD for 550,000 KW. One of the bank's customers comes in and exchanges 300,000 KW for $260.86 USD. The total spread realized in this scenario is 5.00 USD. 0.00 USD. 7.89 USD. 11.86 USD.

11.86 USD.

What is the "Protestant work ethic"? A culture of rugged individualism and self-sufficiency The willingness to protest A willingness to travel abroad for work The strong effort of revolutionists to overcome oppression

A culture of rugged individualism and self-sufficiency

Which of the following is not recommended by the text to minimize the effects of political risk? Purchase risk insurance Perform risk analysis Avoid any country with high political risk Enter into a contract with the foreign company

Avoid any country with high political risk

What is Freedom House? An anti-human trafficking international organization The group at the U.N. responsible for measuring political freedom A set of political freedom ideologies that are necessary to join the U.N. A non-governmental U.S. based watchdog and advocacy organization for democracy

A non-governmental U.S. based watchdog and advocacy organization for democracy

What is a political ideology? A set of principles, ideas, practices, procedures, and doctrines used to organize and administer social order The most perfect form of government The structure of a particular government The harmony of Church and State

A set of principles, ideas, practices, procedures, and doctrines used to organize and administer social order

In determining which global investment decisions to make, global companies are likely to use which financial tool to help them make the decision? A weighted average cost of capital analysis A cost of capital analysis A net present value analysis A sensitivity analysis

A weighted average cost of capital analysis

Which of the following continents has the most spoken languages of any continental area? Africa Europe South America Asia

Asia

A country's currency is depreciating rapidly. If this country's government uses a managed float policy type, which of the following corrective actions might they take? Fix currency to RMB Buy own currency using foreign reserves Print more currency Abandon currency and use US dollars

Buy own currency using foreign reserves

The United States uses which legal system?

Common Law

Suppose that the U.S. drug company Pfizer sends a shipment of antibiotics to a distribution company but does not want to transfer ownership of the medicine. In this case Pfizer can use which transaction tool? A commercial letter of credit Consignment Cash in advance An open account

Consignment

Laws that set the bounds of government and governmental procedures fall under which level of law? Civilian law Criminal law Commercial law Constitutional law

Constitutional law

Which of the following phenomenon is reducing the value of investor diversification? Contagion Global currency flows Increased borrowing Increased stock IPOs

Contagion

Your workplace is very assertive. Which of the following do you expect? Emphasis on relationships Avoid placing blame Direct communication Emphasis on teamwork

Direct communication

Country A has undervalued currency and is exporting products to Country B. This leads to which of the following? Increased profitability for manufacturers in country B Unprofitable manufacturers in Country A Losses in taxes for Country A Discounted goods for Country B

Discounted goods for Country B

A country's currency has experienced rampant inflation for so long that the currency is no longer worth the paper it is printed on. The government has decided to abandon their currency and use USD instead, called Currency abandonment. Currency departure. Dollarization. Inflation-driven neglect.

Dollarization

The Financial Accounting Standards Board helps all global public companies that issue stock in the U.S. by? Setting trade regulation Controlling foreign ownership requirements Establishing guidelines to prepare financial statements Requiring independent board members

Establishing guidelines to prepare financial statements

When a foreign company wants to issue bonds in a foreign market but do so using its domestic currency (For instance, if Haier, a Chinese firm wanted to issue bonds denominated in Chinese RMB in the U.S.) these bonds are called ________. Home bonds Dragon bonds Eurobonds Domestic bonds

Eurobonds

Globalization leads too: Slower development of technology because of collaboration More expensive products and services Increased socioeconomic equality Exploitation of lax regulatory and environmental policies in less developed countries Increased focus on national markets Increased divergence of preferences and tastes globally

Exploitation of lax regulatory and environmental policies in less developed countries

Which of the following is NOT one of the three common factors that identifies emerging markets? Encourage free trade, private ownership, and foreign investment. Average economic growth rate equal to or above 4% Exports are greater than imports Intermediate income level among citizens

Exports are greater than imports

An executive with strong understanding in IT, finance, and marketing and how these relate to each other demonstrates which of the four specific competencies for global leaders' success? Market savvy Strong corporate vision Functional Excellence Industry expertise

Functional excellence

An international business that specializes in military jets will be most interested in which category of output? Gross exports Private consumption Government spending Net exports Gross investment

Government spending

What is total factor productivity? How much annual GDP increases with an additional laborer How efficiently labor and capital work together How much capital is available in an economy How much labor is available in an economy

How efficiently labor and capital work together

Which of the following is not an external factor affecting international business? Socio-cultural Human resources Political Technological

Human resources

All but which of the following are indicators that a currency will appreciate? Increase in government debt High political stability GDP growth Foreign companies constructing many facilities for production in the country

Increase in government debt

Shinzo Abe is the president of Japan and has asked you for advice on his fiscal and monetary policy. He wants to do each of the following to help break Japan out of its deflationary cycle. Which of the following do you recommend that he NOT do? Increase government spending Reduce trade tariffs Increase the money supply Increase taxes

Increase taxes

If your company wants to go abroad in order to reduce its per-unit costs, which objective is it being motivated by? Innovation Increased sales Acquire new resources and knowledge Reduce the risk of being exposed to a given market

Increased sales

Political systems in the past hundred years have been characterized by tensions along two dimensions: _______ and _______. Individualism versus democratic; autocratic versus collectivism Individualism versus collectivism; democratic versus autocratic Collectivism versus autocratic; individualism versus democratic Collectivism versus democratic; individualism versus autocratic

Individualism versus collectivism; democratic versus autocratic

Which of the following is a negative aspect of low power distance? Equality Low collaboration Inefficiency Paternalistic leadership

Inefficiency

What is a possible flaw in a system of private ownership and control of capital? Inability to reach economies of scale Lack of desire to meet demand Tendency to avoid trade Inequality between owners and workers

Inequality between owners and workers

Which of the following is not a type of international trade and investment institution? International bond markets International stock markets International brokerage houses International banking

International brokerage houses

Which of the following has increased since the 2008 financial crisis? (select all) a) International merchandise trade b) International service trade c) International investing (financial markets) d) International communication

International merchandise trade and international communication

Which of the following are examples of Globalization? Select all that apply NATO Internet Mercantilism USPS Amazon McDonalds

Internet Mercantilism Amazon McDonalds

A company planned to build a new plant in Industrial Town, but civil unrest in the area has delayed their plans indefinitely. This directly affects which variable of GDP? Investment Government spending Private consumption Net exports

Investment

Sally has a valuable painting, but she wants a car. Billy wants Sally's valuable painting and is a skilled piano teacher, but Sally doesn't want to learn piano. Which function of money is most relevant to Sally and Billy's dilemma? Currency calculation Medium of exchange Unit of account Store of value

Medium of exchange

Which of the following lists the different modes of entry in the order of their commitment for the two parties, from greatest to least? Joint ventures, franchising, licensing, exporting and importing Exporting and importing, licensing, franchising, wholly owned subsidiary Franchising, licensing, exporting and importing, wholly owned subsidiary Wholly owned subsidiary, exporting and importing, licensing, franchising

Joint ventures, franchising, licensing, exporting and importing

An authoritarian government is characterized by all but which of the following? Centralized power Not constitutionally responsible to citizens Limited terms Concentrated power in the hands of a leader or a small group of leaders

Limited terms

Say you work for Tesla and your boss wants you to determine how many people who visit the company website are from outside the US. Unfortunately, however, you don't have access to the IP addresses of those visiting your site and so you cannot tell where people are located when they visit the site. What can the 10 Percent Presumption help you to do? Determine if your company should sell abroad or not Make a good guess about how much of the web traffic is from outside the US Presume that a certain percentage of all web traffic is from companies with a comparative advantage Develop a presumptive strategy around how to develop algorithms to determine the visitors' location

Make a good guess about how much of the web traffic is from outside the US

Customs are all but which of the following? Morally significant Standards of behavior A subset of norms Socially approved

Morally significant

Margaret has lived in India for years and knows much about the culture. However, she has adopted none of the cultural practices of her Indian colleagues and friends. Which factor of her cultural quotient is Margaret likely missing? Cognitive Universal Behavioral Motivational

Motivational

All countries agree that mineral rights on private property _______. belong solely to the government belong solely to the individual depend on the depth from the top soil Not all countries agree.

Not all countries agree.

Rule of the individual means: A pure democracy exists in which all individuals play a part in ruling by election. A purely communist society exists in which all individuals are equal rulers. All individuals, regardless of rank, status, or office, are subject to the law. One individual is the giver and enforcer of law.

One individual is the giver and enforcer of law.

Which of the following is NOT one of the imperfections of GDP and GNP? Does not tell us who is benefitting from a country's production Does not account for people's wellbeing Does not factor in long-term effects of boosting output Only applicable to capitalist economies

Only applicable to capitalist economies

The third and final step of improving cultural intelligence is Immerse yourself in the culture Identify CQ strengths and weaknesses Select and apply training to focus on weaknesses Organize daily tasks to align with training

Organize daily tasks to align with training

Shanghai Disney is a joint venture between Walt Disney and the Shanghai government. Part of the profits are given to the state, and the state has part ownership of the company. Which level of government involvement do we see here? Partial state owned State owned State supported

Partial state owned

Miriam is president of a country that is deep in foreign debt. Which of the following actions might you recommend to her? Increase the currency supply Peg the currency at an overvalued rate Seek for increased exports Place tariffs on imports

Peg the currency at an overvalued rate

The Hague Convention on the Law Applicable to Trusts and Their Recognition allows trusts to be recognized as separate from individual assets. This law falls under which type of international law? Supranational Private Public Geographical

Private

A difference between deregulation and privatization is: Deregulation involves less government involvement and privatization involves more government involvement. Privatization involves less government ownership, while deregulation involves less government oversight. Privatization involves less government involvement and deregulation involves more government involvement. Privatization involves less government oversight, while deregulation involves less government ownership.

Privatization involves less government ownership, while deregulation involves less government oversight.

What is one economic principle of Islam that differs from Christianity? Prohibition of paying or receiving interest Material goods do not originate from God Banning of free trade No private property

Prohibition of paying or receiving interest

Which of the following is untrue in regards to bribery? Britain had tax laws that allowed bribery to be written off as a business expense. The Bribery Act of 2010 is more stringent than FCPA because it outlaws facilitation payments. Providing payments to win contacts or business is legal. Providing payments to quickly obtain necessary permits or licenses is legal.

Providing payments to win contacts or business is legal.

Which of the following is NOT an objective for doing business internationally rather than just domestically? Develop new resources and knowledge Diversify risk Reduce taxes Increase sales

Reduce taxes

A tsunami in Japan damaged many of the production factories for Toyota resulting in a shortage of supplies and price swings. Which objective should Toyota have been more focused on? Reduced risk Innovation Increased sales New resource

Reduced risk

The rule of law promotes international business in which of the following ways? Increases government power Undermines patent offices Weakens codes determining business property rights Reduces risks such as fraud, negligence, and bad debts

Reduces risks such as fraud, negligence, and bad debts

A commercial letter of credit does what? Provides an importer with a debit account funded by the exporter Tells the exporter that the importer is worthy of credit Reserves payment by a bank until the selling conditions are met Avoid income taxes for the exporter

Reserves payment by a bank until the selling conditions are met

Social mores differ from customs in what way? Customs are more widely applicable Ignoring social mores has less severe results Social mores refer to moral and ethical behavior Customs are enforced by law

Social mores refer to moral and ethical behavior

A company desires to enter a country where their brand name is a clever play on words that may not translate correctly. Which external factor relates to this circumstance? Select the best answer. Technological Political Socio-cultural Economic

Socio-cultural

For which of the following reasons is India an attractive place for U.S. companies to locate their call centers, as discussed in the text? Political factors: property laws are extremely well enforced Sociocultural factors: language similarities and low labor costs Economic factors: the demand for call centers is very high in India Technological factors: Indian scientists developed the world's best phone

Sociocultural factors: language similarities and low labor costs

Anarchists are characterized by all but which of the following? Seek to liberate individuals from any system of control Strive for communal ownership of property Believe that government should only exist on a voluntary basis Believe that individuals should be self-governed

Strive for communal ownership of property

Sue lives in New York City and makes six times as much as Margaret, who lives in upstate New York and works a similar job. To determine who has a higher standard of living, what information is needed? Who has been working longer How much money Sue earns Who has the greater education Sue's PPP and Margaret's PPP

Sue's PPP and Margaret's PPP

Which of the following is not a threat caused by globalization? Increased socioeconomic inequality Exporting jobs Loss of cultural distinctiveness Technology development bogged down

Technology development bogged down

Which list has each of the "organs" of the UN? The Economic and Social Council, The Security Council, The Financial Council The General Assembly, The Secretariat, The Agricultural and Environmental Council The General Assembly, The Security Council, The Economic and Social Council, The Economic and Social Council, The Secretariat, The International Court of Justice The Agricultural and Environmental Council, The Security Council, The Financial Council, The Economic and Social Council

The General Assembly, The Security Council, The Economic and Social Council, The Economic and Social Council, The Secretariat, The International Court of Justice

If Boeing a U.S. airplane manufacturer wants to sell aircraft to Ethiopian Airlines, which organization will help Ethiopian Airlines with financing? The World Bank The world trade organization The U.S. Export-Import Bank The China Development Bank

The U.S. Export-Import Bank

Which country has the highest corporate tax rate? Spain The UK The US France

The US

Where is the best place to go to help you understand some of the trade-related factors as they pertain to Brazil? The World Trade Organization The International Monetary Fund The Global Business School Network The World Economic Forum

The World Trade Organization

When an importing company pays and exporter via a cash in advance method: The importer assumes all the risk. The intermediary bank assumes all the risk. Both the exporter and importer share the risk. The exporter assumes all the risk.

The importer assumes all the risk.

What was the main factor that helped flatten the world for a more level global playing field? The printing press The World Trade Organization The internet The collapse of communism in Russi

The internet

Transfer pricing describes which international business activity? The price an export company charges banks to move goods abroad The price one company charges another to transport goods internationally The price a subsidiary charges another subsidiary for goods in the same company The price a company pays to transfer title of international property

The price a subsidiary charges another subsidiary for goods in the same company

What is arbitration? Legal business sabotage Bribing an auditor The process of reaching a court decision on a conflict The process of reaching a third-party decision on a conflict

The process of reaching a third-party decision on a conflict

What are a society's values? The shared assumptions that identify what it believes is good, right and desirable Social rules that govern people's interactions A society's unique set of norms that govern how people live and interact with each other The way people of a culture greet each other

The shared assumptions that identify what it believes is good, right and desirable

The "flat world" theory supposes:

The world has free access to markets, few barriers to competition, and consistent enforcement of regulations

Anna owns a U.S. based company that has a plant in England. The GBP depreciates relative to the USD and lowering the value of her company's PP&E as expressed in dollars. What exposure is most relevant in Anna's situation? Translation exposure Economic exposure Tariff exposure Transaction exposure

Translation exposure

Which of the following is not a complaint about the WEF members? They are men with little actual power and influence They have little need for national loyalty They view national boundaries as obstacles They see national governments as residues of the past They are not representative of the world's population

They are men with little actual power and influence

Which of the following is the goal of PEST? To manipulate external factors To avoid entering markets with PEST factors To create a manufacturing system that will work in any country without adjustments To get a picture of the competitive landscape in a country

To get a picture of the competitive landscape in a country

Of the following, which is NOT a use of PEST analysis? To spot possible business opportunities and identify potential threats To standardize business and manufacturing processes across cultures To implement appropriate practices from local cultures while avoiding problematic ones To break free of old assumptions about how managers should run organizations

To standardize business and manufacturing processes across cultures

What does "decenter" mean? To take what you have learned about another's culture to adapt your own behavior and thinking To expand headquarters to multiple areas of the world To drift to one side or another of a cultural dimension To consider more than one dimension of culture at a time

To take what you have learned about another's culture to adapt your own behavior and thinking

John owns 5 cars, and Eliza owns a semi-truck. John wants the semi-truck and Eliza wants some cars. They agree that the fair value of the semi-truck is 3.75 cars. Which function of money is most relevant to John and Eliza's dilemma? Unit of account Currency calculation Medium of exchange Store of value

Unit of account

How can high uncertainty avoidance be displayed by consumers? High tax rates Unwillingness to try new products Low brand loyalty Seeking foreign products

Unwillingness to try new products

_________ structuring determines where in a hierarchy the decisions about the company are made

Vertical

I have been watching jobs move to China for the last 20 years. As someone who is more concerned with consumption than production, how should I feel about this? You should be angry with China for manipulating their currency to push out American jobs You should be angry with the US for not helping to foster a more competitive manufacturing sector You should be happy with China for taking the jobs that you didn't want anyway You should be happy with the US for allowing the global market to keep prices down

You should be happy with the US for allowing the global market to keep prices down

The Arab Spring conflict demands ________. an increase in personal freedoms and no imports from the United States an increase in personal freedoms and more trade an end to governmental corruption and no imports from the United States an end to governmental corruption and increase in personal freedoms

an end to governmental corruption and increase in personal freedoms

Companies often ________ countries where there is possibility of expropriation because ________. seek out; they don't want to compete with black markets avoid; countries without tariffs are less expensive avoid; they don't want to lose their assets seek out; they need government support

avoid; they don't want to lose their assets

Increasing tuition at universities ________. increases the GDP decreases the supply and efficiency of labor increases the amount of capital in the economy decreases the cost of skilled labor

decreases the supply and efficiency of labor

The purpose of a company determining the net present value or NPV is to _______. determine how much a firm should invest in global markets determine the value current cash flows given different future states determine the value of future cash flows given a certain cost of capital determine the extent that future cash flows will be likely

determine the value of future cash flows given a certain cost of capital

Market-based economies ________. are driven by government intervention encourage individuals and businesses to determine their investment in the economy have emphasis on agriculture and self-sufficiency depend on machinery and technological advancement

encourage individuals and businesses to determine their investment in the economy

Cartels _______. lead to lower prices and higher supply are internationally illegal are impossible to prosecute exist for diamonds, sugar, tin, and olive oil

exist for diamonds, sugar, tin, and olive oil

Customary law is derived from ________ and is used primarily in ________ countries. religious doctrine and belief; Middle Eastern experience and practice; developing religious doctrine and belief; developing experience and practice; Middle Eastern

experience and practice; developing

Gross Domestic Product is a measure of ________. finished goods and services produced by a certain country's citizens within that country's borders a country's supply of labor multiplied by its supply of capital multiplied by TFP finished goods and services produced by citizens of a country, regardless of where in the world the companies are headquartered finished goods and services produced within a country's borders, regardless of whether they are made by domestic or foreign companies

finished goods and services produced within a country's borders, regardless of whether they are made by domestic or foreign companies

International firms must often balance the tension between ________ and ________ in vertical structuring. cities; countryside flexibility; efficiency mitigating risk; increasing innovation cash; capital leases

flexibility; efficiency

Dasom Inc., a South Korean smartphone manufacturer, sells its smartphones in 64 countries around the world and has offices in 36 counties. Dasom’s business expansion best exemplifies _____. subsidization nationalization commodification globalization

globalization

In 1995, the government of Duyat, a country in Asia, began major economic reforms that allowed free trade relations with other countries. Duyat started exporting iron ore and limestone to other countries around the world. Its domestic market strengthened, and it experienced an economic boost. This scenario best exemplifies

globalization

Spain and Italy are both members of the European Union. Nayeli, a Spaniard, is able to purchase Italian-made bags from a handbag store in Spain without paying additional taxes. The market created by the European Union is a(n)

globalized market

Clearing House Interbank Payments System (CHIPS) is a private company that ________. handles international electronic transactions allows businesses borrow from other countries sells stock in global companies lets banks pool global debt

handles international electronic transactions

Under socialism ________, while under communism ________. the central government plans the economy; workers organize the economy workers organize the economy; the central government plans the economy individuals own capital; the central government plans the economy the central government plans the economy; individuals own capital

the central government plans the economy; workers organize the economy

The Gini coefficient measures ________. the rate of inflation the wealth distribution the discount rate the standard of living

the wealth distribution

Piracy is ________, and counterfeiting is _______. unauthorized production of another's work; copying something with the intention of passing it off as original copying something with the intention of passing it off as original; unauthorized production of another's work copying an item from the private sector; copying an item from a government copying an item from the government; copying an item from the private sector

unauthorized production of another's work; copying something with the intention of passing it off as original