International Business

Arguments for trade restrictions include?

National defense

Which of the following is an example of globalization of production?

a U.S. company that builds a computer hardware manufacturing facility in India

The capacity of a nation to produce more of a good with the same amount of input than another country is known as?

absolute advantage

Which of the following is a cultural component that implies gauging the beauty and appeal of artwork?

aesthetics

Frequently, a firm will go abroad to?

all of the above (protect its home market; earn greater profits; test market a product)

Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts?

attitudes

A folk custom can be defined as?

behavior, often dating back several generations, that is practiced by a homogeneous group of people

The rise of a new international entity called the _____ suggests that any company, regardless of age, experience, and resources, can engage in international business.

born global firm

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses?

capitalism

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation?

confiscation

The practice of exchanging rings at weddings, which was initially a pagan ritual, is now followed by most people across the world. Which of the following does this illustrate?

cultural diffusion

Which of the following refers to the process by which cultural traits spread from one culture to another?

cultural diffusion

A(n) ________ is anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts.

cultural trait

Advances in computers and communications technology are permitting an increased flow of ideas and information across borders. This enables?

customers to learn about foreign goods.

Which of the following terms is used to refer to habits or ways of behaving in specific circumstances that are passed down through generations?

customs

Which of the following refers to the use of computer networks to purchase, sell, or exchange products; service customers; and collaborate with partners?

e-commerce

The most common definition of globalization is that of?

economic globalization - the international integration of goods, technology, labor, and capital.

NAFTA's purpose is to?

eliminate trade barriers among the member countries.

Opponents argue that globalization?

eliminates manufacturing jobs in developed nations

A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to?

enforce world trade rules

Globalization is criticized because it?

exploits workers in low-wage nations

Are all goods and services sold abroad and sent out of a country?

exports

______ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

globalization

________ is increasing the pace of both cultural diffusion and cultural change.

globalization

Which of the following refers to convergence in buyer preferences in markets around the world?

globalization of market

________ is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service.

globalization of production

The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________.

gross national product (GNP)

Which of the following is a characteristic of a developing nation?

high rate of illiteracy and insufficient educational facilities

Goods and Services purchased abroad and bought into the country are called?

imports

Any commercial transaction that crosses the borders of two or more nations is known as?

international business

One of management's goals is utilizing economies of scale to reduce unit costs. Which of the following would not necessarily result in economics of scale being realized?

locating production in countries where the labor force is the most highly educated.

A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a?

multinational global firm

Globalization is characterized by?

national boundaries becoming less relevant

_____ place limits on the quantity of a product being imported.

nontariff barriers

Uncontrollable forces that management has no direct control over include?

political

International trade occurs primarily because of?

price differences among nations

The purpose of the General Agreement on Tariffs and Trade (GATT) was to?

promote free trade

________ is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage.

situational management

Which of the following terms is used to refer to the process of ranking people into social layers or classes?

social stratification

Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture?

subculture

Purchasing power parity is?

the number of units of a currency required to buy the same amount of goods and services in the domestic market as one dollar would buy in the US

Which of the following terms is used to refer to the ideas, beliefs, and customs to which people are emotionally attached?

values

The ________ replaced the institution of GATT while retaining all of the former GATT agreements.

world trade organization