global environment of business test 1

According to Freedom House, just under ________ of the world's nations are considered "free."

50 percent

What country in Latin America has seen a significant expansion in their economy in the past two decades?

Chile

According to _____, people should be treated as ends and never purely as means to the ends of others.

Kantian ethics

What country has seen a relative decline in its share of world output between 1960 and 2018?

United States

What is one characteristic of a representative democracy?

citizens periodically elect individuals to act on their behalf

When an employee says no to a supervisor because what he or she was asked to do was unethical, it exhibits the employee's

moral courage.

The _____ approach to ethics holds that an action is judged desirable if it leads to the best possible balance of good consequences over bad consequences.

utilitarian

Communists believed that socialism could only be achieved through

violent revolution.

The belief that geography can influence economic policy, and hence economic growth rates, goes back to

Adam Smith.

_____ is the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumption in favor of decisions that have both good economic and social consequences.

Corporate social responsibility

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

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

________ is broadly defined as the development of new products, processes, organizations, management practices, and strategies.

Innovation

How does privatization help stimulate gains in economic efficiency?

It provides incentives to new private owners to search for increases in productivity and to enter new markets

In stating that all human beings are born free and equal in dignity and rights, and that they are endowed with reason and conscience and should act toward one another in a spirit of brotherhood, Article 1 of the Universal Declaration of Human Rights echoes

Kantian ethics.

"Not all democracies are free, as some still restrict certain political and civil liberties." Which country best fits this argument?

Russia

Globalization of Production

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 (labor, energy, land, and capital)

What is one implication of the global changes in political and economic systems for international business?

The ideological conflict between collectivism and individualism is less in evidence today.

Globalization of Markets

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

What occurs according to Moore's law?

The power of microprocessor technology doubles and its cost of production falls in half every 18 months.

In the United States, the Foreign Corrupt Practices Act was passed during the 1970s following revelations that

U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts.

Which global institution has focused on making low-interest loans to governments in poor nations that want to make significant infrastructure investments such as building a road or a bridge?

World Bank

A country that has ________ is an unattractive choice for international business.

a closed totalitarian dictatorship

Some believe that the global financial crisis of 2008-2009 was the result of

a lack of regulation.

Countries that receive loans from the IMF are required to

adopt specific economic policies to attain stabilization.

One suggestion for helping poor countries enjoy the benefits of free trade is for richer nations to reduce barriers to importing products from those nations particularly for textiles and _____ products.

agricultural

John, an American executive, learns that a foreign subsidiary hired a 12-year-old orphan girl to work on the factory floor. He knows that using child labor is in direct violation of the company's own ethical code. At the same time, he does not think that denying the child her only source of income is right. John is facing

an ethical dilemma.

When firms do not wish to accept the rules of the CISG, what do they often opt for to settle contract disputes?

arbitration

Jalen is the ethics officer at TurboLife. His responsibilities would include

auditing decisions to make sure they are consistent with the company's moral principles.

The _____ step in ethical decision making helps businesspeople know if their decision process is working and if changes should be made to ensure greater compliance with a code of ethics.

auditing past decisions

A multinational corporation that adopts the naive immoralist approach to ethics will most likely

believe that, in a host country, any action is ethically justified if everyone is doing it

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

carbon dioxide

A _____ law system is based on a detailed set of laws organized into codes.

civil

In Samuel Huntington's thesis, global terrorism is a product of the

clash of value systems and ideology between civilizations.

The influential economist Jeffrey Sachs argues that which of the following, with their long engagements in international trade, have been the most supportive of market institutions throughout history?

coastal states

A political system that promotes activity "for the good of society" is based on

collectivism.

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

Which type of economy was found in communist countries where the government determined what would be produced and the price it would be sold for?

command

Right-wing totalitarianism restricts political freedom so as to inhibit the rise of

communism

Many believe that globalization has created a convergence in

consumer taste preferences.

In order to purchase the parts from the supplier, Torc Tools Corp. had to agree with all of the terms set forth in the document the supplier provided which detailed the rights and obligations of the supplier and Torc Tools Corp. This document is a type of

contract

The United Nations created CISG in response to _____ that occur in international trade.

contract disputes

A composer can protect an original musical score from being copied and sold by someone else by acquiring a(n)

copyright

All of the books in a library have a _____, which shows the exclusive legal rights of the author of the book.

copyright

A(n) _____ is considered an external stakeholder of an organization.

customer

A macro factor underlying the trend toward greater globalization is the

dramatic developments in information processing and other technologies.

Generally, the costs and risks associated with doing business in a foreign country are typically lower in

economically advanced countries.

Kantian philosophy would view _____ as an ethical violation.

employing people to work at sweatshops

Speed money or grease payments, are payments made to

ensure a business receives the standard treatment that it ought to receive.

Business _____ refers to accepted principles of right or wrong that govern the conduct of a businessperson, the members of a profession, or the actions of an organization.

ethics

What situation is most likely to lead to unethical behavior in a business setting?

expatriate managers working away from their ordinary social context and supporting culture

The minimum that a firm has to do to engage in international business is to

export or import products from other countries.

The labor, energy, land, and capital that a company has access to are known as

factors of production

The labor, energy, land, and capital a country relies on to source goods and services are known as

factors of production.

California-based Urban Health Source has invested resources in business activities in Italy. What type of business activity does this represent?

foreign direct investment

A nation based on individualism would agree that

free market ideologies should be followed for achieving better standards of living.

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

government.

A country's ________ measures the total annual income received by residents of a country and is regarded as a yardstick for the economic activity of a country.

gross national income

One common measure of economic development is a country's

gross national income.

Opponents to globalization believe that when U.S. companies outsource service activities, such as call centers, to a lower-cost foreign supplier, it results in

higher unemployment in wealthy advanced economies such as the United States.

The apartheid system was based on a violation of

human rights.

According to Milton Friedman, the only social responsibility of business is to

increase profits.

What is one of the three measures used to determine the Human Development Index (HDI) of a country?

life expectancy at birth

There are currently over 1.3 billion people living in India, which makes it a large market when measuring the number of potential consumers. However, India is still considered a smaller market in economic terms because of

limited purchasing power.

Purchasing power parity is used to adjust gross national income in order to make a more direct comparison of ________ in various countries.

living standards

A boom in product liability suits and awards in the United States resulted in a dramatic increase in the cost of liability insurance. Many business executives argue that this

makes American businesses less competitive in the global marketplace.

As democracy has spread since the 1980s, so has the development of more ________ economies.

market-based

Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the

migration of low-wage manufacturing jobs offshore.

In a _____ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

mixed

The term _____ can be described as standing in the shoes of a stakeholder and asking how a proposed decision might impact that stakeholder

moral imagination

If a country wants to improve its attractiveness as a place for doing business and as an investment site, it should

move toward a market-based system.

Gigantic Games., a U.S.-based company that specializes in strategy-based board games, has production facilities in Poland and Spain. Based on this information, Gigantic Games can be classified as what type of enterprise?

multinational

Under John Rawls's concept of the veil of ignorance, people are imagined to be ignorant of their

particular characteristics such as race, sex, and nationality.

HealthWise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants HealthWise Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new diet supplement?

patent

Julie asked her assistant to determine the gross national income of three different countries by evaluating the GNI against the cost of living in the United States. What measure is Julie asking her assistant to use?

purchasing power parity

The main goal of GATT was to

reduce trade barriers.

The change in the United States' position as a dominant industrial power is characterized as a relative decline because it

reflects the faster economic growth of several other economies.

A nation would ________ as part of deregulation efforts.

remove price controls

In the United States, citizens have the right to elect officials who make decisions on behalf of the public. This practice is the reason the United States is a

representative democracy.

While making a business decision, a manager who believes in rights theories is most likely to focus on

respecting fundamental human privileges.

Karl Marx would disagree with which of these ideas?

selling state-owned enterprises to private investors

Globalization

shift toward a more integrated and interdependent world economy

A ________ is an individual or group that has an interest or claim in what a company does and how well it performs

stakeholder

One advancement that has lowered the barriers many small firms face when building international sales is

the Internet.

The base for the adjustment of purchasing power parity is the cost of living in

the United States.

While the lowering of trade barriers made globalization of markets and production a theoretical possibility, what has made it a tangible reality?

the advances in communication, information processing, and transportation technologies

Gross national income figures should be carefully evaluated because they don't take into account differences in

the cost of living.

During the second stage of the ethical decision-making process, managers must determine whether a proposed decision would violate

the fundamental rights of any stakeholders.

A country that has ________ lowers the risk of doing business in that country.

the presence of a strong legal system

Which form of government involves one person or political party that exercises absolute control over all spheres of human life and prohibits opposing political parties?

totalitarianism

A supporter of globalization would agree that

tougher environmental regulations ultimately result in economic progress.

Saturn Systems Inc., which is headquartered in the United States, has its production plant located in a less-developed country where working conditions are poor. For example, employees work 15-hour shifts, are exposed to toxic chemicals, and are forced to work overtime. What type of behavior is Saturn Systems Inc. exhibiting?

unethical

Within organizational culture, _____ are abstract ideas about what a group thinks is good, right, and desirable.

values

Jason loves to invent new products but knows that in his country it is difficult for him to reap the rewards of innovations because they are quickly and legally copied by others after he releases them into the marketplace. As a result, Jason has decided to stop inventing. What is preventing Jason from doing what he loves?

weak property rights protection

The utilitarian philosophy for business ethics primarily focuses on

weighing the benefits, costs, and risks associated with a course of action.