Chapter 1 - MGT 131
The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural contexts is termed _______.
international management
Chile
its market-based economic growth has varied between 2 and 6 percent since the early 2000s and is one of the best and most stable performances in Latin America attracts a lot of foreign direct investment, mainly associated with gas, water, electricity, and mining, and continues to participate in globalization by engaging in trade agreements
In Japan, the term _____ refers to an organizational arrangement in which large, often vertically integrated group of companies cooperate and work closely together to provide goods and services to end users
keiretsus
Saudi Arabia
largest oil producer in the Arab world that was forced to reduce fuel, water, and power subsides it provides to citizens after experiencing a $98 billion deficit in 2015
A firm that has operations in more than one country, international sales, and a mix of nationalities among managers and owners is called a(n) ________
multinational corporation (MNC)
The economies of Arab and Central Asian countries depend almost exclusively on ______
oil production
In a close but decisive vote as part of a referendum in June 2016, the citizens of _____ became the first to vote to dissolve their membership in the European Union
the United Kingdom
Firms in a market must be as versatile as the individual consumer since _______
the interaction of the community and organizations leads the system
Helps promote trade between the United States and Canada
the similarity between the legal and business environments in Canada and United States
What is the ultimate objective of the European Union
to remove all trade barriers among member countries
A Japanese MNC often can get things done more quickly and profitably than its international competitors if it is able to draw from the resources of the other parts of the keiretsu
true
In India, the recent trend of locating software and other higher-value-added services has helped to strengthen a large middle- and upper-class market for goods and services
true
Poland instituted radical economic reforms earlier than its neighbors
true
The European community believes that forcing Greece to accept severe austerity measures is necessary to assure financial stability and repayment of bailout funds
true
The process of offshoring and outsourcing have combined to dramatically intensify the effects of increasing global linkages
true
In the context of international business: 1. Internationalization: 2. Globalization:
1. The process that primarily includes a business crossing national and cultural boarders 2. The process that primarily deals with the vision of building a one world unit, a single market entity
The economy of _____ outweighs that of any other South American country and has become a worldwide presence with an economic output comparable to that of France
Brazil
In March 2006, PricewaterhouseCoopers (PwC) used the term E7 to refer to seven major emerging economies
Brazil, China, India, Indonesia, Mexico, Russia, and Turkey
Countries that are part of EAGLES
Brazil, Russia, India, China, Mexico, Indonesia, South Korea, Turkey, Egypt, Taiwan
Identify the BRIC Nations
Brazil. Russia, India, China
According to the United Nations' World Population Prospects: the 2015 Revision, _______ will be the most populous countries in the world by 2050
China and India
CEVITS
Columbia, Egypt, Vietnam, Indonesia, Turkey, and South Africa
There is a lack of cross-border investment among Latin American countries
False
Which of the following are true about businesses in a command economy
Firms are provided with government subsides so they cannot go out of business Firms are owned by the government to ensure that business practices are done in the best interest of the nation
MNCs proving foreign investment in Hungary
General Electric's purchase of Tungsram Britian's Telfos Holdings paying $19 million for 51 percent of Ganz
Which of the following are the MIST countries, which are grouped as a subset of the N-11 group of economies?
Mexico, Indonesia, South Korea, and Turkey
What are the arguments put forward by the proponents of globalization?
Offshoring boosts the competitiveness of American firms and increases the size of the overall economic pie Job losses are a natural outcome of economic and technological change as part of globalization
Which if the following groups of economies suspended Russia in 2014 after a series of political differences between the economies and Russia?
The Group of Seven economies (G7)
Identify the pro-business initiatives taken by Enrique Pena Nieto as the president of Mexico
The Mexican auto industry was expanded Greater competition was forced in telecommunications
Which countries are part of the North American Free Trade Agreement (NAFTA) that has removed all barriers to trade among these countries and created a huge North American market?
The United States, Canada, and Mexico
Which countries are part of the Dominican Republic - Central America Free Trade Agreement (CAFTA-DR)
The United States, Nicaragua, Honduras, and El Salvador
Managers from today's multinational corporations (MNCs) are required to work effectively with those from many different countries
True
Hong Kong
can depend heavily on southeast China for manufacturing, but the future role that the Chinese government wants to play in local governance is still uncertain
Very large, family-held Korean conglomerates that have considerable political and economic power are called ________
chaebols
History proves the inefficiency and economic stagnation of the command economic system with dramatic ________
decline of communism in the 1980s
According the PricewaterhouseCoopers (PwC), the GDP of the E7 would _________.
exceed that of the G7 economies by around 2030.
FDI
foreign direct investment
Unlike antiglobalization activists, proponents of globalization believe that _______
globalization will urge higher-polluting countries such as China and Russia into an integrated global community that adopts responsible measures to protect the environment
Singapore
has developed as an urban planner's ideal example and the leader and financial center of Southeast Asia
Identify an effect of the free-market-based economy of North America
it allows for greater flexibility when compared with other forms of economic systems
The process of completing activities effectively and efficiently with and through other people is known as
management
The _______ system refers to a factory, the majority of which are located in Mexican border towns, that imports materials and equipment on a duty-and tariff-free basis for assembly or manufacturing and re-export
maquiladora
Combination of a market and a command economy is called
mixed economy
Which of the following refers to the economy of Mexico
more than 90 percent of Mexico's trade takes place under free-trade agreements
Identify a true statement about foreign direct investment (FDI)
most of the decrease in FDI is occurring among developed economies
Identify a true statement about a market economy
private enterprises have the right to own property and oversee production and distribution of goods and services
Critics of globalization claim that
rising inequities in incomes as a result of economic globalization is a cause of concern
Which of the following helped Russia to increase the GDP and decrease inflation, offsetting the hyperinflation created from the initial attempt at transitioning to a market-based economy in the early 1990s?
Direct investment in Russia Russia's membership in the International Monetary Fund
Identify the countries that are part of the European Union (EU)
Early 2000's:Austria, Belgium, Denmark, Finland, France, Germany, the United Kingdom, Greece, the Netherlands, Ireland, Italy, Luxembourg, Portugal, Spain, and Sweden. May 2004: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia January 2007: Romania, and Bulgaria July 2013: Croatia
The Transatlantic Trade and Investment Partnership (T-TIP) is a suggested trade agreement between
European Union and the United States
Which of the following statements are true about India as a country at the center of the globalization debate?
Firms in India find it difficult to expand because of limited clean water, power, paved roadways, and modern bridges Over the last 10 years, India's macroeconomic stability has increased
The process of social, political, economic, cultural, and technological integration among countries around the world is known as ______
Globalization
Bordering southeast China and now part of the People's Republic of China (PRC) ________ has been the headquarters for some of the most successful multinational functions in Asia
Hong Kong
Antiglobalization activists
If corporations are free to locate anywhere in the world, the world's poorest countries will relax or remove environmental standards and social services to attract first-world investment and the accompanying jobs and wealth
Identify a global change in demographics by 2050
In Germany and Italy, the working age population will shrink by over 20 percent by 2050
Which of the following are reasons why India is attractive to multinationals, especially the US and British firms?
Many Indians speak English, are very well educated, and are known as experts in advanced information technology The Indian government gives funds for economic development
Major regional trading blocs that promote free trade within South America
Mercosur, and The Andean Community
Identify a true statement about the voting of the United Kingdom ti dissolve its membership in the European Union as part of a referendum in June 2016
citizens voted to dissolve their membership in bloc
Proponents of globalization
Protectionist policies, not trade and investment liberalization, lead to environmental and social damage within the developing world
Greece has been forced to accept certain measures as it has accepted multiple bailout packages from the International Monetary Fund (IMF), the European Commission, and the European Central Bank between 2010 and 2015. What are those measures?
Cuts to public spending Freezing government pensions and wages
Identify the trends that pertain to global demographics
According to the Wall Street Journal, the working-age population will contract by nearly 5 percent worldwide by 2050 The amount of spending on health care-related services will keep on increasing steadily
Which countries are represented by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)?
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam
Countries that are part of the N-11 group of economies
Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam
Identify the reasons that why Mexican firms are now able to produce products at highly competitive prices
Because of the availability of low-cost labor Because the Mexican market is close to the American market
Which of the following are true about Africa's economy
Developing countries lack the institutions, infrastructure, and economic capacity to take full advantage of globalization Sub-Saharan Africa's development stalled to a 20-year low in the wake of low oil prices and China's economic slowdown in 2015
Based on the data on purchasing power parity (PPP), ______ would exceed the United States as the largest world economic power by 2050.
China and India
Asian-facing countries have negotiated an ambitious, next-generation, Asia-Pacific trade agreement under the _____ _____ _____ _____ for Trans-Pacific Partnership (CPTPP)
Comprehensive and Progressive Agreement
In contrast to its fellow BRIC partners, _____ continues to post strong figures and has surpassed China in annual gross domestic product (GDP) growth rate in recent years
India
Which of the following continues to outpace China as the fastest growing large economy, with GDP expanding over 7 percent in 2018?
India
Mercosur
It is a customs union that connects the economies of Argentina, Brazil, Paraguay, Uruguay, and Venezuela
The Andean Community
It is a subregional free trade compact that was made to promote economic and social integration and cooperation among Columbia, Ecuador, Bolivia, and Peru
What are the functions of the Ministry of International Trade and Industry, a Japanese governmental agency, that contributed to the early success of the Japanese economy?
It recognizes and ranks the state's commercial pursuits It leads the distribution of national resources to meet trade-related goals
The economy of _____ was the only economy in the EU that continued developing during the global recession of 2008-09.
Poland
Brazil has attracted considerable foreign investment over the past 30 years. Foreign organizations are drawn to opportunities created by Brazil's _____
Privatization of telecommunications, power, and other infrastructure sectors
Included in the chaebols of South Korea
Samsung, Hyundai, Daewoo, and the LG group
Which of the following is true about a mixed economy
Some sectors are privately owned and have the freedom and flexibility of the law of demand, while other sectors are subject to government planning
In 2010, the BRIC leaders of the founding members decided to join _____ to the group, making it the BRICS
South Africa
Identify the true statements about the Hungarian economy
State owned hotels in Hungary have been privatized Western firms have been entering into joint ventures with local firms in Hungary
Goldman Sachs' 2001 report on the economic growth projected what to occur in the BRIC nations?
The BRIC economies' share of world growth could increase from 20 percent in 2003 to 40 percent in 2025. Economies of the BRIC nations will exceed the collective economies fo the G7 nations by 2032
Which of the following is the United States' second largest free trade zone in Latin America after Mexico that was implemented on a rolling basis between 2006 and 2009
The Dominican Republic - Central American Free Trade Agreement
Which of the following is the United States' second largest free trade zone in Latin America after Mexico that was implemented on a rolling basis between 2006 and 2009?
The Dominican Republic - Central American Free Trade Agreement export zone
_______ is the global association of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsides
The World Trade Organization
Identify the economic developments that have occurred in the countries that are part of the North American Free Trade Agreement NAFTA
The ease of travel between countries has been increased Tariffs and import and export quotas have been eliminated
Which if the following goals of the European Union has finally largely become a reality?
The establishment of a single currency and a regional central bank
Offshoring
The process by which companies undertake some activities at foreign locations instead of their countries of origin
Outsourcing
The subcontracting or contracting out of activities to endogenous organizations that had previously been performed by a firm
Taiwan
has developed from a labor-intensive economy to one that is dominated by more technologically sophisticated industries, including banking, electricity generation, petroleum refining, and computers
Argentina
in 2018, it experienced a financial crisis when its currency crashed, and its foreign debt became more expensive to repay has one of the strongest economies overall. but it has suffered the recurring economic problems of inflation, external debt, capital flight, and budget deficits
