IB 300 Quiz 2

An example of expropriation without compensation is when Cuba confiscated property during the Cuban revolution of the 1950s. China took over Hong Kong from British rule in 1997. the United Kingdom colonized Australia in 1770. the U.S. took over management of the postal service in 1970.

Cuba confiscated property during the Cuban revolution of the 1950s.

What country engaged in many privatizations in the aftermath of the 2008-2009 financial crisis? Greece Germany China Portugal

Greece

________blank refers to the total value of all income generated by the residents of a nation, including both the domestic production of goods and services and income from abroad. Gross domestic product Gross domestic income Gross national income Net national product

Gross national income

Which of these countries follows common law? the United States Hong Kong Spain Morocco

Hong Kong

________ is a measure of how the population is distributed over a nation's area, such as urban versus rural. Urbanization Population size Population distribution Population density

Population distribution

WIPO and TRIPS represent patent harmonization agreements in SE Asia and the EU, respectively. anti-counterfeiting agreements in Korea and North America, respectively. WTO and UN agreements on corruption. UN and WTO agencies or programs that focus on IP.

UN and WTO agencies or programs that focus on IP.

Trademark protection in most of the world is covered by the Madrid Agreement of 1891, which is administered by the World Intellectual Property Organization (WIPO). Office of Harmonization in the Internal Market (OHIM). General Inter-American Convention for Trademark and Commercial Protection. Organization of American States.

World Intellectual Property Organization (WIPO).

A purchase of foreign goods in the United States (goods that were imported from another country) will be recorded in the BOP as an asset in the current account. a debit in the current account. no record, because the purchase is made in the United States. a liability in the foreign transfer account.

a debit in the current account.

Marketers are interested in knowing the trend of women entering the workforce because this may result in a need to alter promotional methods. a smaller market for consumer durables. an increased birth rate. a reduction in rural-to-urban shift.

a need to alter promotional methods.

Sharone and her husband have developed a pizza pan that is guaranteed to keep the crust from sticking to the pan and washes clean with just water. They have applied to have exclusive rights to this product. What did they apply for? a patent a copyright a trademark a trade name

a patent

In 2018, the United States imposed trade sanctions against its partners in the North American Free Trade Agreement (NAFTA), Mexico and Canada, and threatened to pull out of NAFTA altogether unless the agreement could be renegotiated to address U.S. concerns. This demonstrates the impact of ________ when monitoring the foreign environment. the World Trade Organization on government policy international political disputes economic trends actions taken by trading blocs

actions taken by trading blocs

A currency that is nonconvertible has a value that is arbitrary. floating. lower than its value in the free market. not controlled by government.

arbitrary.

When a government requires a permit to purchase foreign currency, the exchange rates are market-driven. can be negotiated by the firm. are unpredictable. are often above the free market rate.

are often above the free market rate.

During a trial, the judge openly questioned the defendant and her lawyers and often challenged the presented evidence. There wasn't a jury and the judge made the final decision. Which type of legal system would include this scenario? common civil religious criminal

civil

The three main approaches to law are civil, common, and religious. civil, Sharia, and court-based. Sharia, Talmudic, and Napoleonic. criminal, civil, and common.

civil, common, and religious.

Some countries impose both an ad valorem duty and a specific duty on a single import. What type of duty are these countries using? compound duplex secondary elite

compound

Trade barriers create costs that are paid ultimately by the government erecting the barrier. consumer. country exporting the goods. exporter.

consumer.

Soejin has written a cookbook. What form of legal protection can he obtain for his book? copyright patent trademark trade name

copyright

In a certain European country, the domestic airlines receive preferential treatment over foreign airlines in terms of gate assignments and airport counter locations. Which NTB does this illustrate? direct government participation in trade customs and other administrative procedures standards transshipping

customs and other administrative procedures

Most significantly for the international manager, the balance of payments reveals demand for a firm's products. a firm's financial position. a country's import and export patterns. demand for a country's currency.

demand for a country's currency.

An electrical supply company has $25,000 worth of holiday lights inventory that will soon become obsolete due to the seasonal nature of the product. The company decides to sell the inventory at a lower cost in its international market without changing pricing in its domestic market. What type of action is the company taking? dumping VER quota sanctions

dumping

In Sharia law, interest is forbidden, which results in severe limitations on working capital. equity partnerships, where business risk is shared. interest that is usually paid but termed something else. limits in the development of international businesses.

equity partnerships, where business risk is shared.

Sir Isaac Newton put England on the gold standard when he declared, as master of the English mint, that he would sell gold for 1 pound, 1 shilling, 1 pence, under the law of one price. set a market price for gold, the British pound and the U.S. dollar. established a fixed equivalency between gold and the British currency. brought the matter to Queen Anne, who declared Britain would follow the gold standard.

established a fixed equivalency between gold and the British currency.

The Japanese yen is an example of a convertible currency because it can be converted to gold at a higher rate. assigned an arbitrary value higher than its value in the free market. exchanged for other currencies without restriction. exchanged at the spot forward rate.

exchanged for other currencies without restriction.

A patent gives the inventor property rights for 10 years. the right to use the invention until development costs are recouped. exclusive right to manufacture, exploit, use, and sell the invention. the right to keep the patented process but not the product for five years.

exclusive right to manufacture, exploit, use, and sell the invention.

Taxation is a financial force in that firms achieving a lower tax burden can generate higher revenues. governments enacting taxes are formal institutions that enforce tax law via force. businesses are compelled by foreign governments to pay taxes. it is not controlled by the firm.

firms achieving a lower tax burden can generate higher revenues.

The ________blank includes all the uncontrollable forces originating outside the home country that surround and influence the firm. foreign environment international environment host country environment global environment

foreign environment

Bretton Woods led to an exchange rate agreement known as the Bretton Woods System, also called the floating rate system. India Accord system. gold exchange standard. French rate system.

gold exchange standard.

Actions that involve antitrust laws usually involve government against citizens. government against business. country against country. citizen against citizen.

government against business.

The main goal of tariffs is to increase the selling price of imported goods, thereby reducing competition for domestic producers. raise revenues for the importing government. reduce earnings for the exporting government, thereby creating a trade war. penalize importers for not buying domestic goods.

increase the selling price of imported goods, thereby reducing competition for domestic producers.

When a country experiences a sustained increase in prices, it is feeling the effects of a depression. inflation. recession. capital gains.

inflation.

The ________blank environment includes the interactions between domestic and foreign environmental forces, or between sets of foreign environmental forces when an affiliate in one country does business with customers in another. foreign international host country global

international

Olivia is a human resource manager, and she is interested in the increase in the number of working women at her company. This is most likely because more working women means fewer working men. it causes a larger labor supply that may change production processes. it causes changes to employee rules and regulations. it increases the overall wage and benefit calculation.

it causes a larger labor supply that may change production processes.

A developing economy is characterized as less technically developed. more politically active. having a fair distribution of income. a heavily agrarian economy.

less technically developed.

A value-added tax is actually a sales tax that is paid by the firm rather than the consumer. paid in stages along the process from raw materials to consumer. paid by the government. voluntarily paid on exports.

paid in stages along the process from raw materials to consumer.

Historically, gold has been used as a way for people to store value because of its purity and scarcity. high transportation and security costs. lack of interest-earning ability. accessibility and convenience.

purity and scarcity.

A company can use the inflation rate to determine the capital structure of the firm. growth rate of sales. real cost of borrowing in capital markets. equilibrium point.

real cost of borrowing in capital markets.

When governments nationalize a firm, they may seek to extract more money from the firm, to increase profitability, to follow a particular ideology, or to save jobs. punish a company for illegal behavior. avoid politicization of the business. sell the firm to foreign investors.

save jobs.

A company is determining the divorce rate in parts of Europe. The company produces single-serving meal kits that might be of interest to people who were married but are now single. Which type of factor is this company analyzing? economic psychosocial political socioeconomic

socioeconomic

The national defense argument for trade restrictions suggests that some industries, even if they are not competitive with foreign suppliers, may need protection from imports. the military is an area that can be exempted from import restrictions. national defense requires no trade restrictions. exporters of material would do well to monitor trade restrictions and permissions.

some industries, even if they are not competitive with foreign suppliers, may need protection from imports.

Democratic nations that follow free-trade capitalism sometimes nationalize businesses, such as the U.S. bailout during the 2008 financial crisis, when the U.S. government took control of several large U.S. corporations. the government's practice of contracting out military support functions, such as cooking and laundry. when Chile's government sold its stakes in multiple businesses following an overthrow of the socialist government. the move from New York to Russia of a major sports team owned by a Russian.

the U.S. bailout during the 2008 financial crisis, when the U.S. government took control of several large U.S. corporations.

An example of retaliatory trade restrictions is the U.S. response to the EU ban of hormone-treated beef. Korea's dumping of electronics into the U.S. market. the Japanese refusal to allow U.S. military equipment in Japan. China's tightening control of the export of rare earths.

the U.S. response to the EU ban of hormone-treated beef.

The rural-to-urban shift is a reflection of varying government standards on birthrates and population. a change from industrialization to agricultural efforts. property tax differences between geographic areas. the movement of the population in search of jobs and conveniences.

the movement of the population in search of jobs and conveniences.

According to the text, what is the purpose of economic analyses? to anticipate political developments within and across countries to forecast exchange rates to assess the overall outlook for the economy and the impact of economic changes on the firm to compare the rate of economic and political change in order to determine financial variances

to assess the overall outlook for the economy and the impact of economic changes on the firm

The concept of strict liability, as found in the U.S. legal system, applies to harm done by the designer/manufacturer without the need to prove negligence. to harm done within narrow limits, considering the design of the product. to children harmed by products in both the United States and the EU. strictly to harm caused by the designer/manufacturer, so no penalties outside of damages can be awarded.

to harm done by the designer/manufacturer without the need to prove negligence.

Sudsy Soap Company sells face soap in the United States as "Fresh Face" but in Europe the same soap is sold as "Shiny Clean." These two different representations are trademarks. trade names. patents. copyrights.

trade names.

One of the problems associated with the "cheap foreign labor" argument for restricting trade is that wages don't account for all production costs. foreign competition will achieve an unfair advantage. foreign labor is seldom cheap. the national defense must be kept at maximum levels.

wages don't account for all production costs.