International Business Ch, 3-4

________ are words or symbols that distinguish a product and its manufacturer from competitors.

Trademarks

Totalitarian political systems include authoritarian regimes such as ________.

communism and fascism

A ________ is a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention.

patent

Which of the following is a disadvantage of conducting business in totalitarian nations?

A refusal to pay a bribe can result in the forfeiture of investments in the country.

________ is the belief that only individuals and private groups should control a nation's political activities.

Anarchism

Which of the following disagrees with the concept of centrally planned economies?

At the time of their collapse, standards of living in most centrally planned economies were at or above those of market economies.

What do communists and socialists have in common?

Both believe that the government should control all types of economic activity.

________ is the environmental impact of greenhouse gases (measured in units of carbon dioxide) that results from human activity.

Carbon footprint

Which of the following statements about representative democracies is true?

Citizens elect individuals from political groups to act on their behalf.

________ is a legal system which is based on a detailed set of written rules and statutes that constitute a legal code.

Civil law

Assuming insects destroyed most of the coffee crops in key coffee-producing countries worldwide, which of the following would most likely occur within the coffee market?

Coffee prices would increase.

Which of the following is a disadvantage of local requirement laws to foreign companies?

Companies required to hire local personnel might be forced to take on inadequately trained workers.

________ is the layer of corporate social responsibility whereby a corporation donates money and, perhaps, employee time toward a specific social cause.

Traditional philanthropy

Several research studies were published lately that documented the health benefits of a certain grain. Which of the following is the most likely economic result of these findings?

Demand for the grain increases.

________ is the forced transfer of assets from a company to the government with compensation.

Expropriation

Which of the following statements is most accurate regarding the element of free choice when market economies are compared with centrally planned economies?

Free choice exists in market economies, but choices are restricted in planned economies.

Which of the following philosophies maintains that a company's sole responsibility is to maximize profits for its owners?

Friedman view

Which of the following is an advantage of conducting business in totalitarian nations?

International companies are less likely to face local political opposition to their activities

Which of the following functions does a copyright perform?

It give creators of original work the freedom to publish or dispose of them as they choose.

Scenario: Common and Civil Law Wayne's Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Wayne's has been evaluating Paribo and Kirawi—the two countries which are the top contenders for the new facility—carefully. Which of the following, if true, demonstrates that Kirawi has an unstable business environment?

Its government does not enforce product liability laws or protect individual property rights.

Who among the following popularized the idea of central economic planning in the nineteenth century?

Karl Marx

Which of the following is a characteristic of totalitarian governments?

Leaders rule without the explicit approval of the people.

________ policies control the currency supply and interest rates in a market economy.

Monetary

________ refers to the takeover of an entire industry by the government.

Nationalization

________ is the belief that both private and public groups play important roles in a nation's political activities.

Pluralism

________ political systems include democracies, constitutional monarchies, and some aristocracies.

Pluralistic

________ is the layer of corporate social responsibility whereby a company develops a code of conduct that it will follow in its global operations and agrees to operate with greater transparency.

Risk management

Robert believes that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. However, he does not think of himself as a communist, but as a socialist. Which of the following statements about Robert is true?

Robert does not believe that a violent revolution is needed to seize control over resources

________ measures the indirect carbon dioxide emissions from the whole life cycle of products—from their manufacture to eventual breakdown.

Secondary footprint

________ is a political system in which political leaders rely on military and bureaucratic power to support their rule.

Secular totalitarianism

________ is the layer of corporate social responsibility in which a business builds social responsibility into its core operations to create value and build competitive advantage.

Strategic CSR

The government maintains control over the banking industry in a country. Which of the following is most likely true if the country has a mixed economy?

The government considers banking sector as important to national security.

Which of the following statements is true of a centrally planned economy?

The government sets the production goals.

Scenario: Common and Civil Law Wayne's Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Wayne's has been evaluating Paribo and Kirawi—the two countries which are the top contenders for the new facility—carefully. Which of the following statements is true of Paribo, a democratic nation whose legal system is based on civil law?

The law is based on a detailed set of written rules that constitute a legal code.

Scenario: Common and Civil Law Wayne's Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Wayne's has been evaluating Paribo and Kirawi—the two countries which are the top contenders for the new facility—carefully. Which of the following statements is true of Kirawi, a democratic nation whose legal system is based on common law?

The law is interpreted on the basis of tradition, precedent and usage.

Which of the following countries has a contemporary market economy?

United States

Both Pat and Terry believe that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. Which of the following statements proves that Pat is a communist and Terry is a socialist?

Unlike Pat, Terry does not believe in the elimination of political opponents

Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so. Susan finally settles upon Valmira because it has a stable business environment. Which of the following factors, if true, proves her decision to be a good one?

Valmira's legal system protects individual property rights satisfactorily.

Laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages are called ________.

antitrust laws

Which of the following emerged during the failure of centrally planned economic systems?

black markets

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses?

capitalism

In most centrally planned economies that failed, ________.

central planning agencies had specified the production goals

A ________ economy is a system in which the government owns a nation's land, factories, and other economic resources, and schedules nearly all economic activities.

centrally planned

In which of the following economies would manufacturing firms most likely produce defective products due to low incentives for quality outputs?

centrally planned economies

In a ________ government, the strongest political parties share power by dividing government responsibilities among themselves.

coalition

Under ________ law, the justice system decides cases by interpreting the law on the basis of tradition, precedent, and usage.

common

U.S. legal system is largely based on ________.

common law

Scenario: Risky Business Global Trading LLC is a distributor of computer software and hardware, steel and copper scrap, and telephone equipment. Involved in three very different types of industries, the company faces many types of risks in its global business. Had the government taken over the assets of Global Trading without compensation, and not taken over the assets of any other company, the government's actions would be an example of

confiscation

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation?

confiscation

Which of the following do governments impose upon people to help pay for the consequences of using a particular product?

consumption taxes

The ________ view states that a company should adopt local ethics wherever it operates because all belief systems are determined within a cultural context.

cultural relativist

A ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives.

democracy

Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so. Susan thinks that it would be easiest setting up production facilities in a country whose government leaders are elected directly by the wide participation of the people or by their representatives. Which of the following political systems should the country have?

democratic

The ________ system of a country consists of the structure and processes it uses to allocate its resources and to conduct its commercial activities.

economic

Businesspeople who accept the risks and opportunities involved in creating and operating new business ventures are called ________.

entrepreneurs

Which of the following is an important factor in forming successful business ventures in China?

establishing a trusting relationship before proceeding with business

Scenario: Risky Business Global Trading LLC is a distributor of computer software and hardware, steel and copper scrap, and telephone equipment. Involved in three very different types of industries, the company faces many types of risks in its global business. Had the government taken over (with compensation) the assets of Global Trading but not those of any other company, the government's actions would be an example of ________.

expropriation

Which of the following control inflation through policies regarding taxation and government spending in a market economy?

fiscal policies

In a market economy, access to alternative purchase options is known as ________.

free choice

Which of the following does the secondary footprint measure?

indirect carbon dioxide emissions

A market economy is rooted in the belief that ________.

individual concerns should be placed above group concerns

In ________ cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives.

individualist

North Korea practices a policy of self-reliance known as ________.

juche

The ________ approach to national economics calls for less government interference in commerce and greater individual economic freedom.

laissez-faire

Which of the following terms is also used to refer to communism?

left-wing totalitarianism

Laissez-faire economics refers to ________.

less government interference in commerce and greater individual economic freedom

Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so. Susan is worried that San Tarino's demand that she must use locally available raw material and employ local workers might interfere with the quality and efficiency of her business. San Tarino, on the other hand, views this as a way to foster local business activity and lessen regional unemployment. What are these laws called?

local content requirements

Which of the following would characterize a nation with high degree of economic freedom?

low tariffs

Which of the following is an example of a trademark infringement?

manufacturers who sell counterfeit products under the names and logos of more famous brands

Democracies try to preserve peaceful coexistence among groups of people with diverse cultural, ethnic, and racial backgrounds. These rights are known as ________ rights.

minority

France, Germany, and Sweden are examples of ________.

mixed economies

In which of the following systems is land, factories, and other economic resources equally split between private and government ownership?

mixed economy

When one company alone controls a product's supply and therefore, its price, it is considered a(n) ________.

monopoly

Scenario: Risky Business Global Trading LLC is a distributor of computer software and hardware, steel and copper scrap, and telephone equipment. Involved in three very different types of industries, the company faces many types of risks in its global business Global Trading just learned that the government of one country in which it does business has taken over the entire electric utility industry. The government's actions are an example of

nationalization

Guanxi, in the Chinese business context, means ________.

personal relationships

On a recent trip to Hong Kong, a group of tourists found several Prada bags being sold on the pavement. They cost only a few dollars and were clearly fake; though they bore the Prada trademark. This is an example of ________.

piracy

To function smoothly and properly, a market economy requires ________.

price flexibility

Which of the following dictates supply and demand in a market economy?

price mechanism

The segment of the economic environment comprising independently owned firms that seek to earn profits is called the ________.

private sector

The selling of government-owned economic resources to private operators is called ________.

privatization

Product liability laws are those which ________.

protect people from defective products

Under ________ the government endorses private ownership of property and a market-based economy but grants little or no political freedom.

right-wing totalitarianism

The ________ view says that a company should maintain its home-country ethics wherever it operates because the home-country's view of ethics and responsibility is superior to others'

righteous moralist

Which of the following terms refers to an economic system in which the government owns and controls all types of economic activity?

socialism

Horizon Ltd. is a software company that, over the last year, incorporated social responsibility into its core operations to create value and build competitive advantage. Which layer of corporate social responsibility does Horizon Ltd. function at?

strategic CSR

In a market economy, economy-related decisions are determined by the interactions between ________.

supply and demand

Supply and demand are dictated by ________.

the price mechanism

Scenario: Common and Civil Law Wayne's Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Wayne's has been evaluating Paribo and Kirawi—the two countries which are the top contenders for the new facility—carefully. Which of the following factors should the legal experts of Wayne's consider while evaluating the legal systems of Paribo and Kirawi?

the resolution of contractual dispute with local vendors

Central planning is rooted in the ideology that ________.

the welfare of a group is more important than individual well-being

A ________ is a political system in which a country's religious leaders serve as its political leaders.

theocracy

Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so. Susan also decides not to set up production facilities in Margazo, a country which functions by a strict set of religious tenets, because some of them contradict her company's work policy. Expecting potential employees to break away from these traditions is not an option since religion plays an important role in the functioning of the nation. What kind of political system prevails in Margazo ?

theocracy

A legal tradition based on religious teachings is called ________ law.

theocratic

Renzi belongs to a country in which religion governs all aspects of his life, whether personal or public. He has to abide by a strict, rigid, code that dictates everything from the clothes he wears to the food he eats. Breaking away from these traditions is not an option since religion plays an important role in the functioning of the nation. What political system prevails in his country?

theocratic totalitarianism

Which of the following is the main goal of privatization?

to increase economic efficiency

Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so. Susan decides not to set up production facilities in Konesia because its business laws are vague and are often interpreted according to the convenience of the government. Bribery is a common feature in conducting business deals there and a refusal to pay up is not an option. What kind of government does Konesia have?

totalitarian

Under a(n) ________ political system, the state reigns supreme over institutions such as family, religion, business, and labor.

totalitarian

Konesia is a country whose political leaders do not tolerate opposing viewpoints and often suppress or punish dissidents. The lives of Konesians are tightly controlled by its rulers. Which of the following political systems prevails in the country?

totalitarianism

Which of the following political ideologies states that every aspect of people's lives must be controlled for a nation's political system to be effective?

totalitarianism

Shimmer and Sparkle is an American jewellery store which discovers that several shops in developing countries are selling counterfeited necklaces under their name and label. Which of the following problems are they facing?

trademark infringement

Which of the following philosophies maintains that a company should maximize "good" outcomes and minimize "bad" outcomes wherever it operates?

utilitarian view