International BUS 280 Chapters 1 - 3

The hourglass, a US 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 of the following countries should the Hourglass enter?

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

Which of the following is most likely to be the result of a country having lax intellectual property laws

Firms will be reluctant to enter into such a country

Which of the following best exemplifies the globalization of markets?

Fluffy Pillows, a US based pillow company, sells the same pillows world wide

In which of the following ways is managing an international business different from managing a purely domestic business?

An international business must develop policies for dealing with exchange rate movements

Which of the following statements is true of the gross national income

GNI per person figures can be misleading bc they don't consider differences in the cost of living

According to globalization supporters, which of the following is an advantage of globalization?

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

Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates

Globalization of production

According to globalization opponents, which of the following is a disadvantage of globalization?

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

Which index was developed by the UN to measure the quality of human life in different nations?

Human development index

Who is often seen as the lender of the last resort to nation-states whose economies are in turmoil and currencies are losing value against those of other nations?

International Monetary Fund

Canadian company Yummy Snacks exports a number of products to consumers in Peru, Chile and Argentina. According to this information, Yummy Snacks is most likely involved in

International trade

US based Royal Corp is hesitant about entering into a licensing agreement with hexagon, inc., a company from the Monaslu Republic, due to the likelihood the Hexagon will opportunistically break a contract or expropriate property rights. What type of risks is the Royal Corporation trying to avoid?

Legal

Which of the following is true of countries with a market economy?

Production is determined by the interaction of supply and demand

Which of the following does Moore's law predict?

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

Which of the following statements reflects how the political economy of many of the world's nation-states has changed radically since the late 1980s?

There has been a move away from centrally planned and mixed economies and toward a more free market economic model

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

World Trade Organization

People in the West tend to associate a representative democracy with

a market economy system

Rajiv purchased an invention from a group of researchers and was the first to commercialize the innovative new product. According to this information, Rajiv is

an entrepreneur

Which of the following has been losing importance globally since the 1980s?

centrally planned command economies

a legal system which is based on a detailed set of laws organized into codes is referred to as a

civil law system

Which of the following factors is most likely to make a country unattractive for international business

closed totalitarian dictatorship

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

In Nerumbia, all businesses are owned by the state. The Nerumbian government plans production, fixes commodity prices and also gives directions on investments to ensure they benefit the nation as a whole and not only a few individuals. What type of economy has nerumbia adopted?

command

Those who believe that socialism can be achieved only through violent revolution and totalitarian dictatorship are called

communists

The product liability laws are established to protect the

consumers in case a product causes injury, death or damage

Which of the following is NOT a factor of production

culture

Shannon works as the executive manager of an international business, while bob is the executive manager of a purely domestic business. Which of the following tasks apply to both Shannon and Bob?

dealing with business attacks from competitors

Which of the following refers to a political system in which government is by the people, exercised either directly through elected representatives

democracy

The Surbeel Republic exercises tight control over prices and output, prohibits private enterprises from operating in most sectors of the economy, and severely restricts foreign direct investments and international trade. Based on this information, the Subeerl is likely against

deregulation

Which of the following typically involves removing price controls; abolishing laws regulating the establishment and operation of private enterprises; and relaxing or removing restrictions on direct investment by foreign enterprises and international trade

deregulation

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

desire to disperse production activities to optimal locations

Which of the following is most likely to be the reason behind the decline in the US share of world output in 2014?

faster economic growth of developing economies, particularly in Asia

office Plus, a US based company, has invested resources in business activities in New Zealand. This is an example of

foreign direct investment

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

government

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

grease payment

Which of the following is true about individualism?

in individualism, private ownership is desirable

Which of the following is an appropriate solution to the problem of slow real income growth among the unskilled workers in the US?

increasing society's investment in education

The development of new products, processes, organizations, management practices, and strategies is called

innovation

Which of the following is true about the common law system

judges in a common law system have the power to interpret the common law so that it applies to the unique circumstances of an individual case

Which of the following is one of three measures used to determine the Human Development Index of a country

life expectancy at birth

Which of the following factors is most likely to make a country more attractive

likely economic growth

countries that emphasize individual goals over collective goals tend to have what economic system?/

market

As a result of globalization, we have been moving toward a world in which

material culture is starting to look similar the world over.

Green Cleaners Inc., a US based company that specializes in environmentally-friendly cleaning supplies, has production facilities in Poland and Spain. Based on this information, Green Cleaners can be classified as what type of enterprise?

multinational

ABC Medical Corporation has developed a new medication to treat a rare disease. Which type of legal protection grants ABC medical corporation exclusive rights for a defined period to the manufacture, use or sale of the new medication

patent

ABC Company is hesitant about entering Ukraine, because the country has been experiencing social unrest in recent years. Based on this information , what type of risk is ABC Company trying to avoid?

political

Which of the following factors is most likely to contribute toward lowering the risk of doing business in a country

presence of a strong legal system in the country

The government of Kimmurak is selling state-owned telecommunications enterprise, to private investors. This is an example of

privatization

In the context of violation property rights, which of the follwoing refers to the extortion of income or resources of property holders by public officials, such as politicians and government bureaucrats

public actions

Which of the following is a measure of economic development that allows for a direct comparison of living standards in different countries?

purchasing power parity

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

resolved disputes that arise in international traded regarding which country's laws to apply

the government of Batwi, which is made up of military officers, permits some individual freedom. However, it restricts individual political freedom on the basis that it could lead to the rise of communism. According to this information, which of the political system is found in the country of Batwi?

right-wing totalitarianism

What is required for the business environment of a country to be conducive to innovation and entrepreneurial activity

strong property rights protection

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

the United States

A macro factor underlying the trend toward greater globalization is

the decline in trade barriers since the end of WWII

Which of the following is NOT a technological change that affects globalization

the introduction of tougher environmental and labor laws

The spread of democracy among countries is most likely to lead to

the promotion of greater competition

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

Vintage Incorporated is going to do business with a company that is located in the Pabul Republic, a common law country. The companies have agreed to draft the business contract in the Pabul Republic. Since the contract will be drafted under a common law framework, which of the following best characterizes the contract?

very detailed with all contingencies spelled out