international business test 1

Critics of globalization maintain that the apparent decline in real wage rates of unskilled workers

: Is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers

The emphasis on individualism in the United States results in which of the following advantages

Executives are exposed to different ways of doing business.

which of the following observations is consistent with michael porter's theory of national competitive advantage

Factors such as domestic demand and domestic rivalry determine nations' dominance on production.

A capital-intensive country exports products that are capital intensive. Which theory is this an example of?

Heckscher-Ohlin

Which of the following is true about planned economies?

In a planned economy, the state owns all means of production.

the group is the primary unit of social organization in

Japan

Emergence of Global Institutions

Manage, regulate, and police the global market place Promote the establishment of multinational treaties to govern the global business system

Which of the following argues that it is in a country's best interests to maintain a trade surplus?

Principle of mercantilism

Which of the following is a consequence of globalization? Select one: a. Differentiation of material culture b. Decreasing interdependence between national economies c. Increasing outsourcing of services d. Increase in barriers to cross-border trade

b

In industries where economies of scale are important

both the variety of goods that a country can produce and the scale of production are limited by the size of the market.

which is not a primary determinant of a nation's rate of economic development

currency

The least rigid system of social stratification is a caste system. (T/F)

false

Porter's diamond of competitive advantage includes all of the following except

first mover advantages

Factors such as domestic demand and domestic rivalry determine nations' dominance on production.

free trade

According to Geert Hofstede's study, which of the following cultural dimensions would be characterized by a greater readiness to take risks and less emotional resistance to change?

low-uncertainty avoidance

The economic freedom associated with a ________ creates greater incentives for innovation and entrepreneurship than either a planned or a mixed economy.

market economy

The Research and Development division of a company has recently designed a new coffee vending machine that is likely to sell very well in the market. It is compact, user-friendly, and provides unprecedented efficiency in terms of cost per cup. Consequently, the company fears that its competitors would soon mimic the design of their product and to protect its product, it is now seeking a _____ for the same.

patent

Other things being equal, the benefit-cost-risk-trade-off is likely to be most favorable in

politically stable developed and developing nations that have free market systems Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on

The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities.

power distance

In several Western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to _____

privatization

Globalization of Markets

the merging of historically distinct and separate national markets into one huge global marketplace

Globalization

the process by which businesses or other organizations develop international influence or start operating on an international scale.

Globalization of Production

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

Porter argues that a nation's firms gain competitive advantage if ____.

their domestic consumers are demanding

which is not of production?

trade

Which of the following arises when a country is exporting more goods and services than it is importing?

trade surplus

In mixed economies, governments also tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests.

true

theories of smith

true

who is responsible for policing the world trading system

wto