International Business Exam 1
Evaluate Costs
-Bribe payment -Infrastructure issues -Resolving contract dispute
Public Action
-Bribery -Legal mechanisms -Corruption
Evaluate Benefits
-Middle-class population growth potenatial -Free market economy -First-mover advantages
Which of the following is a more attractive place to do business?
A nation with a market-based economic system
What is the best description of the globalization of Markets? (chp 1)
Bringing traditionally separate national markets into one cohesive marketplace.
Based on the information in the case, which statement is true?
Capitalism and a market economy are associated with greater economic progress.
China: Xi Jinping, the new party chief, has said officials need to guard against corruption as its spread would doom the party and the state.
Communist Totalitarianism
________ refers to a philosophy that a person should have freedom in his or her economic and political pursuits.
Individualism
The ________ is often seen as the lender of last resort. (chp 1)
International Monetary Fund
Beginning in the 1970s, European and Japanese firm began to shift labor-intensive manufacturing operations to developing nation with ____________. (chp 1)
Lower labor costs
The doubling of the power of microprocessor technology while the costs of its production decreases by half is called _____________ Law. (chp 1)
Moore's
As the barriers to the free flow of flow of goods, services, and capital fell during the 1970s, one motivation for foreign direct investment by non-U.S. firms was the desire to (chp 1)
Move production activités to more desirable locations.
United States: Two major political parties field candidates for federal, state, and local elections.
Representative Democracy
Italy in the 1930s: Benito Mussolini's dictatorship.
Right-Wing Totalitarianism
Which of the following statements is true about trademarks?
Trademarks are designs and names by which businesses differentiate their products.
Zimbabwe: Defeated in 2008 parliamentary elections, President Mugabe, remains in power today.
Tribal Totalitarianism
In the early twentieth century, the socialist ideology split into two broad camps: communists and social democrats.
True
Supporters of globalization believe that tougher environmental regulations and stricter labor standards are a natural aspect of economic progress. (chp 1)
True
The organization of approximately 185 countries that have all signed treaties to protect intellectual property rights is known as the
World Intellectual Property Organization.
Ethnocentric (ethnic snob)
You think your culture is superior to other.
State ownership of the means of production is consistent with
a planned economy.
The smartphone app at the heart of Uber's business illustrates how _______ has/have made the globalization of markets a reality. (chp 1)
advances in communications
When high tariffs are placed on imported manufactures goods, (chp 1)
an increase in trade barriers results.
The common law system is
based on tradition, precedent, and custom.
In Samuel Huntington's thesis, global terrorism is a product of the
clash of value systems and ideology.
Which of the following factors contributed to the Great Depression of the 1930s? (chp 1)
countries progressively raising trade barriers against each other
Apple's production presence in China (chp 1)
creates both low-skilled and engineering-level jobs.
Power distance
deals with degree of inequality in society
As figure for 2017 reflects, the globalization of the world economy has resulted in a revelative _____________ in the dominance of U.S. firms in the global marketplace. (chp 1)
decline
rapid FDI growth and new production opportunities and new markets (chp 1)
declining investment barriers
The role of the government in a market economy involves
encouraging vigorous free and fair competition among private producers.
Apple sources parts for its iPhone from around the world before assembling the phones in China. This reflects the (chp 1)
globalization of production.
Countries with free market economies in which property rights are protected tend to have ________ than command economies or economies where property rights are poorly protected.
greater economic growth rates
The practices of bribery
is a normal part of business in some countries.
As International trade expands, the economies of the world's nation-states are becoming ___________. (chp 1)
more interwined
Your U.S.-based company wants permission to build a factory in a foreign country. You have been asked to pay a bribe in order to get the paperwork approved. You should
not pay because doing so is prohibited by the Foreign Corrupt Practices Act.
The benefits, costs, and risks associated with doing business in a country are a function of that country's
political, economic, and legal systems.
Intellectual property rights are intended to
protect original ideas/works.
Over the past 20 years, more countries have been _________ barriers to foreign direct investment.
removing
The philosophy behind intellectual property rights is to
reward the creator of an idea.
The number of mini-multinational involved in international trade investment is ___________. (chp 1)
rising
Uber currently operates in about 600 cities across more than 80 countries. Which driver of globalization best explains the ability of Uber to pursue this strategy? (chp 1)
technological change
explosive growth of high-power, low-cost computing and growth in services (chp 1)
technology: computing and communication
Historically, national markets were distinct and separate entities. Today, these separate national markets have merged. This process is know as ________.(chp 1)
the globalization of markets
Uber's ability to view the world as its market illustrates (chp 1)
the globalization of markets.
Long term vs short term
time/urgency, saving of face
Which of the following is a reason for the spread of democracy?
totalitarian regimes failing to deliver economic progress to the majority of their populations
Apple's investment in production facilities in China to produce its iPhone can best be described as (chp 1)
foreign direct investment.
It is established that by 2020, the value of the world trade will have a ___________ growth rate than the world economy. (chp 1)
greater
Which indicator would give you the best understanding of whether East Germany is closing the gap with West Germany in terms of economic development levels?
gross domestic product for each territory bloc
Some economists support the practice of paying small bribes based on the argument that they
help promote economic growth.
According to the video, the standard of living in the United States is _____ as compared to that of China.
higher
Critics of Indonesia's economic policy have called for greater privatization. Privatization of state-owned enterprises
involves the process of selling state-owned enterprises to private investors.
If gross national income per capita adjusted for differences in the cost of living is about $13,000 in China, a developing country, and is about $56,000 in the United States, a developed country, then
on average, Americans can afford more goods and services than their Chinese counterparts.
Economic growth in Indonesia is slower than the rate in other large developing nations like China and India. One factor limiting economic growth in Indonesia is
rampant corruption.
The purpose of the U.N.'s Millennium Development Goals that were established in 2000 was to (chp 1)
reduce the number of people living in extreme poverty.
The restrictions in Paris that make it difficult for Uber to conduct business in the city are an example of ________ differences between national markets that require companies to customize their strategies to the local market. (chp 1)
regulatory regime
The main factor driving Apple's decision to locate its iPhone production in China was (chp 1)
speed
faster and cheaper shipping and optimal production (chp 1)
technology: transportation
GNI figures are helpful in understanding an economy because they
tell us how poor a country is relative to another.
The primary reason Apple established production facilities in China for its iPhone was to capitalize on (chp 1)
the ability of subcontractors to rapidly respond to changes in demand.
Which of these is a characteristic of a pure command economy?
All businesses are owned by the state.
If GNI adjusted for cost of living in China is about $13,000 while GNI adjusted for cost of living is about $56,000 in the United States, then
Americans enjoy a higher standard of living.
Which of the following expresses one of the reasons why managing an international business is different from managing a purely domestic business? (chp 1)
An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.
Economic power shifts from nations to international institutions. (chp 1)
Argument Against Globalization
Lack of adequate regulations to protect the environment.(chp 1)
Argument Against Globalization
Manufacturing jobs move to low wage countries. (chp 1)
Argument Against Globalization
The gap between the rich and the poor nations of the world has gotten wider. (chp 1)
Argument Against Globalization
Increased efficiency of the whole economy. (chp 1)
Argument For Globalization
Living standards improve. (chp 1)
Argument For Globalization
Real power resides with nation-states (chp 1)
Argument For Globalization
Tougher environmental regulations follow economic progress. (chp 1)
Argument For Globalization
Which one of the following factors from a barrier to international trade?(chp 1)
High tariffs on imports of foreign goods
What is an example of obstaicle to globalization? (chp 1)
Differences in legal regulations among national markets.
Cultural differences have no effect on the way an international firm conducts its business around the globe. (chp 1)
False
According to the _________, it is illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority.
Foreign Corrupt Practices Act
Given what you know about regional differences in unemployment and the ability of people to now move freely between the former East and West German states, which scenario is most likely?
The gap in the standard of living between the former East and West German states will continue to widen.
Which of the following is true about the economic risks of doing business in a country?
The inflation rate in a country is an indicator of the economic risks of doing business in a country.
If the level of economic development in the former West Germany is higher than the level of economic development in the former East Germany, then which of the following is likely to occur?
The population in West German territories will increase.
Saudi Arabia: Ruled by an Islamic absolute monarchy.
Theocratic Totalitarianism
Many of the national markets of Eastern Europe, Latin America, Africa, and Asia may still be underdeveloped, but they are potentially enormous. Which of the following is a risk to businesses moving into these regions?
There is no guarantee that democracy will thrive in many of the world's newer democratic states.
In January 2006, a Shanghai court said Coffeebux's decision to use the logo and similar sounding name to Javabucks was
"clearly malicious".
Private Action
-Theft or blackmail - Weak legal system -Organized crime/ protection money
Evaluate Risks
-Unexpected political change -Economice uncertainty
__________ measures the total annual income received by residents of a nation.
Gross national income
Which one of the following factors form a barrier to international trade?
High tariffs on imports of foreign goods
The risk of doing business in countries that are facing revelations is (chp 1)
Higher than in countries not facing revolutions.
The risk of doing business in the countries that are facing revolution is (chp 1)
Higher than in countries not facing revolutions.
Privatization of state-owned enterprises is important to economic growth because
It encourages entrepreneurship and innovation.
Which of the following is a feature of right-wing totalitarianism?
Provision of partial individual economic freedom along with restricted individual political freedom.
In 2014, Indonesia's new president took steps to deregulate the economy. Which of the following is likely to occur when a government deregulates the economy?
Restrictions on inward foreign investment are lifted.
France: Social democracy continues to influence several European nations.
Socialism
Uncertainty avoidance
ability to deal with ambiguity and take risks
Individualism
accomplishments of the individual vs the group
Opponents of globalization argue that falling trade barriers (chp 1)
allow firms to move manufacturing activities to countries with lower wage rates.
Uber can best be described as (chp 1)
an international business.
While U.S. firm accounted for about two-thirds of the foreign directed investment in the 1960s, as of 2017, U.S. firms account for __________. (chp 1)
around 25%
Foreign direct investment occurs when a firm invests resources in (chp 1)
business activities outside its home country.
As figures for 2017 reflect, the globlelization of the world economy has resulted in a relative ______________ in the dominance of the U.S. firms in the globe marketplace. (chp 1)
decline
lower tariffs and increased international trade in goods and services (chp 1)
declining trade barriers
