CH 4 - Business in a Globalized World

The percentage of global wealth concentrated at the base of the Pyramid is:

70 percent.

A society where economic power is concentrated in the hands of government officials and political authorities is called:

A central state control system.

Under the World Trade Organization's most-favored nation rule:

All import restrictions are illegal unless proven scientifically.

Which statement(s) below are true about global income?

Both of these answers are correct: Income is how much one earns in a day or a year; and income at the bottom of the pyramid varies from place to place.

A free enterprise system refers to:

Economic assets that are privately owned and exchanged in an open market.

Critics of globalization support the spread of American ideals and culture throughout the rest of the world.

False

Most nations in the world share similar political, social, and economic beliefs.

False

Only manufacturing jobs are being lost through globalization.

False

The World Bank makes currency exchange easier for member countries so that they can participate in global trade.

False

The importing of foreign goods by U.S. firms is called foreign direct investment.

False

The primary goal of a "vulture fund" is to:

Make a profit.

The Heritage Foundation scored which nation of the world among the most repressed in 2018?

North Korea.

The theory of comparative advantage states that:

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

A firm that would like to develop a global supply chain would:

Purchase raw materials, components, or supplies from sellers in other countries.

The three strategies of globalization can be summarized using what three words?

Sell, make, and buy.

An example of a Global Action Network, or GAN, is:

The Kimberley Process.

The most important agreement which codifies human rights is:

The Universal Declaration of Human Rights.

Representation on the World Bank's board of directors is based on:

The size of the member nation's economy.

Global market channels involve a firm producing goods in:

Their home country and exporting them to other countries.

At the beginning of the 20th century, no country in the world had universal suffrage.

True

Even small local businesses often compete with global companies from around the world.

True

Globalization directly and indirectly influences the politics, environment, geopolitics, and economics of virtually every country in the world.

True

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

True

The main purpose of inversion is to reduce corporate income tax obligations.

True

The term sector refers to broad divisions of a whole.

True

Under the World Trade Organization's most favored nation rule, member countries may not discriminate against foreign products for any reason.

True

Assets that a person accumulates and owns at a certain point in time are called:

Wealth.

Which of the following statements accurately describe the practice of tax inversion:

Both of these answers are correct: A company shifts their headquarters to a foreign country; and a company increases debt in their home country.

The purpose of the World Trade Organization is to:

Eliminate barriers to free trade among nations.

Microfinance refers to banks:

Lending money to low-income businesses.

Single-party rule by communist parties still remains in:

Vietnam.

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

Weak health and safety regulations.

The World Trade Organization conducts negotiations, called "cycles," on various topics, rotating its meetings among different cities.

False

According to the United Nations, a feature of democracy is:

All of these answers are correct. Fair elections. An independent media. A government with power balanced among executive, legislative, and judicial branches.

How did Intel eliminate conflict minerals from their supply chain?

By collaborating with most suppliers in the chain including smelters, processors, and traders.

The primary purpose of the International Monetary Fund is to:

Lend foreign currency to member countries.

The deep anti-Americanism that exists in some parts of the world is thought to be caused by:

Resentment of cultural penetration from U.S.-based multinational enterprises.

Although many firms conduct business across national boundaries, most global commerce is carried out by a small number of powerful firms.

True

Experts attribute the growth of nongovernmental organizations to:

Greater openness in many societies.

Globalization is accepted worldwide and creates little controversy.

False

The term "race to the bottom" refers to:

Moving production jobs to the country with the lowest labor cost.

A firm that has global operations has:

Some or all of their manufacturing or service operations abroad.

An individual who is a supporter of globalization would argue that it helps the developing world by:

All of these answers are correct. Giving entrepreneurs access to foreign investment funds to support economic development. Allowing new ideas and technological innovations to spread quickly. Providing people in developing countries with more jobs.

Government has distinctive resources and competencies including:

All of these answers are correct. Knowledge of public policy. Ability to enforce the rules. Revenue from taxation.

An example of an international financial and trade institution is:

All of these answers are correct. World Bank. International Monetary Fund. World Trade Organization.