BUSN 3001 Test 1 - Summer Class

According to globalization supporters, what is an advantage of globalization?

Globalization helps create jobs in all countries that participate in the global trading system.

According to globalization opponents, what is a disadvantage of globalization?

Globalization results in companies "exporting jobs" to low-wage nations.

An individual's right to do something may be restricted on the grounds that it runs counter to "the good of society" when the political system emphasizes

collectivism

A __________ economy follows the principles of collectivism as resources are allocated based on "the common good."

command

In a pure command economy, the prices at which goods and services are sold are planned by the

government

Josef told the management team that the company would have to find a new way to produce the Walk-A-Lot Doll because the government had recently banned "exposed component parts in toys" and the doll's walking mechanism was visible on her back. The standard set by the government is a type of

product safety law

What was the motivation for non-U.S. firms to begin investing across national borders in the 1970s?

shift toward a more integrated and interdependent global economy

A form of government in which political power is monopolized by a party, group, or individual that governs according to religious principles is called what type of totalitarianism?

theocratic

Why was the World Trade Organization established?

to police the international trading system

Communists believed that socialism could only be achieved through

totalitarian dictatorship

Fenton Incorporated plans to do business with a company located in the Leone Republic, a common law country. The companies have agreed to draft the business contract in the Leone Republic. Since the contract will be drafted under a common law framework, it will be

very detailed with all contingencies spelled out.

which country has seen their share of world output increase the most from 1960 to today?

China (China is second-largest economy in terms of its share in world outpul, USA is 1st)

Solar Solutions, a U.S.-based company, is planning to expand operations to a foreign country. Considering the factors that make a country attractive as a place in which to do business, which country should Solar Solutions consider for entry?

Country D, which has democratic institutions and a market-based economic system

What occurs according to Moore's law?

The power of microprocessor technology doubles and its cost of production falls in half every 18 months (The cost of microprocessors continues to fall, while their power increases (a phenomenon known as Moore's law, which predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months).)

Which institution was established as a result of the Uruguay Round of GATT?

World Trade Organization

Which of these companies exemplifies the globalization of markets? a.) The running shoes of FootFast Inc., a U.S.-based company, are handmade by workers in India. b.) The accounts of a U.K.-based finance company are maintained and managed by an accounting firm in the Czech Republic. c.) Back Love Mattresses, a U.S.-based mattress company, sells the same mattresses worldwide. d.) Wolfson Industries Inc., a U.S. refrigerator equipment company, has generated capital from investors all over the world. e.) Wine producer Tangy Tanins procures high-quality grapes from neighboring countries.

c.) Back Love Mattresses, a U.S.-based mattress company, sells the same mattresses worldwide.

Grossman and Krueger's study revealed the relationship between pollution levels and income. Which pollutant was the exception to their study?

carbon dioxide

As a judge in Germany, William is not allowed to interpret the law but relies on a strict set of codes to determine the outcome of a case. Which type of law is in place in Germany?

civil law system

Deirdre works as the executive manager of an international business, while Tomas is the executive manager of a purely domestic business. Which of these responsibilities apply to both Deirdre and Tomas?

dealing with business attacks from competitors

A country that has lax intellectual property laws will find that

firms will be reluctant to enter into such a country.

Economist Robert Reich advocates that the outsourcing of productive activities to different suppliers results in the creation of

global products

The merging of national markets that have historically been distinct and separate is the process of

globalization

One cost-cutting measure used by E-Z Out Garage Door Co. is sourcing the parts it uses from companies in Germany, Brazil, and Mexico that are more economical than home-country sources. The choice to use these sources is an example of the

globalization of production.

A payment made to expedite or to secure the performance of a routine governmental action is called a

grease payment

Canadian company Nature's Yogurt exports a number of products to consumers in Brazil, Chile, and Argentina. According to this information, Nature's Yogurt is most likely involved in

international trade

Daveed is the warehouse supply manager for a privately owned auto parts distributor. It is his job to take inventory of the products the company has available and place orders for parts when supplies run low. This supply and demand form of production is an example of a __________ economy.

market

Wise Eyes Corporation has developed a new oral supplement to prevent macular degeneration. Which type of legal protection grants Wise Eyes Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new supplement?

patent

The state senator was found guilty of __________ when she tried to overcharge for licenses and permits from an international business that wanted to open a manufacturing plant in her state.

public action

The United Nations Convention on Contracts for the International Sale of Goods (CISG) was introduced to

resolve disputes that arise in international trade regarding which country's laws to apply.

When considering globalization, what is thought to be the single most important innovation since World War II?

the micropressor (Perhaps the single most important innovation since World War II has been the development of the microprocessor, which enabled the explosive growth of high-power, low-cost computing, vastly increasing the amount of information that can be processed by individuals and firms. The microprocessor also underlies many recent advances in telecommunications technology.)

What political system has a government in which one political party exercises absolute control over all spheres of human life and doesn't allow opposing political parties to exist?

totalitarianism