MANA 3312.460 Midterm Exam
Which of the following is a macro factor lead to greater globalization?
Rapid developments in information and transportation technologies
From the video "Foreign Direct Investment", which of the following statement is NOT the major benefits of FDI to the host country?
Reduce pollution
According to the _________, if a given country is innovative and a generator of new products, and it starts marketing such product in poorer foreign countries, and from there it starts to FDI in such country to seize location economies, it will ultimately end up no longer manufacturing its invention, but rather importing such product it once invented from such poorer country.
product life-cycle theory
Toyota promote different models in different countries depending on a range of factors such as local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that:
significant differences still exist among national markets.
In the country Z, it is very hard for a person born in a particular strata of society to move to a different strata. country Z has a low degree of
social mobility
Company Y has won the bid to build airplanes for a host country government. However, the execution of the contract has been delayed due to certain unproductive, bureaucratic procedures in the less developed nation. In order to legally overcome this problem, Company Y could resort to the payment of
speed money.
In 2014, the GNI per capita of Malaysia was US$10,430, and Pakistan's was US$1,360. In the same year, the GNI at PPP per capita of Malaysia was US$22,525, and Pakistan's was US$4,851.Based solely on this data, this means that:
the cost of living in both such countries was lower than in the US
In 2010, the GNI per capita for Country X was $44,270, but its GNI per capita at PPP was $49,640. In the same year, the nominal GNI of the United States was $47,360. This means that:
the cost of living was lower in Country X than in the US
You are interviewing for a very good job in a multinational company. During the selection process, the company had you working on a case. The case asked you to figure out which, among a group of countries, had the highest probability of having adopted deregulation, which the company requires to enter a new market. You did well in the competition because you chose:
the country that recently opened its retail sector for foreign direct investment
You are interviewing for a very good job in a multinational company. During the selection process, the company had you and some of the competing candidates working on a case. The case asked you to figure out which, among a group of countries, was the best prospect for a market entry. The case regarded a luxury yacht manufacturer from country X, trying to decide in which country to enter: A, B, C, or D. Data was provided for each country on GNI at PPP, GNI per capita at PPP, HDI, and Heritage Foundation's Economic Freedom. You did well in the competition because you chose the country with:
the largest GNI per capita at PPP
Kay believes that the cultural group she belongs to is superior and as a result, she is highly intolerant toward employees from the cultures of other countries. This behavior of kay is known as
ethnocentrism
According to the Heckscher-Ohlin theory, the pattern of international trade is determined by differences in
factor endowments.
Which of the following applies to the theory of rights?
fundamental human rights and privileges transcend national boundaries and cultures
About international ethics, the U.S. law, in particular the Foreign Corrupt Practices Act, clearly ___________ officials of U.S. companies to bribe foreign officials _________:
includes language that allows; under certain circumstances
Country X has a domestic market that is VERY attractive to foreign companies. A change in government in country X provokes a significant decrease in imports tariffs. Assuming that the international attractiveness of country X's local market has remained unchanged, one could say that such changes will _________ the attractiveness of __________ :
increase / exports from USA and others into country X
The Country X' government believes that its citizens should have complete freedom in their economic and political pursuits, and their ideology is "private profit over public good." In this context, it can be said that Country X most likely follows the philosophy of
individualism.
The country A ensures strong legal protection of property rights. It is likely that the businesses and individuals in country A will
want to invest more in innovations.
According to the _______ perspective, countries should __________:
mercantilist; export more than what they import
Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the:
migration of low-wage manufacturing jobs offshore.
From the video "Economic systems in the world", which is the most popular economic systems in the world?
mixed economy
Imagine your country can produce both products A and B more efficiently than any other country. But also assume that you are more efficient in producing A than in producing B. According to the concept of ABSOLUTE ADVANTAGE, your country should:
produce A and B, because you are more efficient than all other countries
From the video "what is globalization?", which market is NOT an example of the most globalized market:
Markets for food
Which of the following is most likely to be considered unethical?
ABC Inc. sends its waste products for disposal to a developing nation because the pollution control laws in its home country are more strict than those in the developing nation.
From the video "Foreign Direct Investment", which of the following country adopt the pragmatic nationalism toward FDI to some extent?
All of the major economies in the world
Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of global markets?
As rival global firms follow each other across countries, they bring with them their brand names, products, and marketing strategies from other national markets, thus creating some homogeneity across markets.
Use the following data to answer the next question (all data UNCTAD, 2013; all in US$ Millions):=====================================================================================## Outward FDI Stock 2013: Central African Republic: 43.2; Chad: 70.3; Mozambique: 24.3; Namibia: 31.8; Niger: 14; Rwanda: 12.9; Swaziland: 76.2## Inward FDI Stock 2013: Central African Republic: 619.5; Chad: 4757.7; Mozambique: 20966.9; Namibia: 4277.3; Niger: 4939.7; Rwanda: 853.9; Swaziland: 838.1## FDI 2013 Inflow: Central African Republic: 0.8; Chad: 538.4; Mozambique: 5935.1; Namibia: 699.1; Niger: 631.4; Rwanda: 110.8; Swaziland: 67## FDI 2013 Outflow: Central African Republic: 0; Chad: 0; Mozambique: -0.3; Namibia: -8.2; Niger: -6.7; Rwanda: 13.5; Swaziland: 0.6=====================================================================================Among the African countries listed, some have more capital investments abroad from its multinationals than others.According to the data provided, and assuming the listed variables is all the information you have, companies from _____ have, overall and over time, invested abroad more than companies from ______:
Chad; Niger
From the video "what is culture?", which country consider bringing friends chrysanths as a gift is rude?
China
Imagine the following situation: Company B is a large microcomputer US manufacturer. In terms of international activities, Company B exports its products to 20 countries around the world. Which of the following is TRUE about Company B's foreign operation:
Company B is involved in international business, but it is not a multinational company
Mr. Wang believes that he should be loyal to his superior, but, in turn his superiors should reciprocate his loyalty by bestowing their blessings on him. According to this information, Mr. Wang is a follower of
Confucianism
From the video, "what is globalization?", which factor is NOT the major factors driving the move toward greater globalization?
Cultural drivers
From the video "Ethical Issues in International Business", which of the following statement is the limitation of the Cultural Relativism?
Cultural relativism implicitly rejects the idea that universal notions of morality transcend different cultures.
From the video "Hofstede's Cultural Framework", which of the following countries practice low power distance?
Denmark
Use the following data to answer the next question:===============================================================================# Hofstede's Individualism: Denmark: 74; France: 71; Greece: 35; Hong Kong: 25; India: 48; Ireland: 70; Japan: 46; Malaysia: 26; Portugal: 27; Russia: 39; Singapore: 20; South Korea: 18; UK: 89# Hofstede's Power Distance: Denmark: 18; France: 68; Greece: 60; Hong Kong: 68; India: 77; Ireland: 28; Japan: 54; Malaysia: 100; Portugal: 63; Russia: 93; Singapore: 74; South Korea: 60; UK: 35# Hofstede's Uncertainty Avoidance: Denmark: 23; France: 86; Greece: 100; Hong Kong: 29; India: 40; Ireland: 35; Japan: 92; Malaysia: 26; Portugal: 99; Russia: 95; Singapore: 8; South Korea: 85; UK: 35# Hofstede's Masculinity: Denmark: 16; France: 43; Greece: 57; Hong Kong: 57; India: 56; Ireland: 68; Japan: 95; Malaysia: 50; Portugal: 31; Russia: 36; Singapore: 48; South Korea: 39; UK: 66# Hofstede's Indulgence: Denmark: 70; France: 48; Greece: 50; Hong Kong: 17; India: 26; Ireland: 65; Japan: 42; Malaysia: 57; Portugal: 33; Russia: 20; Singapore: 46; South Korea: 29; UK: 69===============================================================================Imagine you are from country X and that you were sent by your multinational company to improve the sales teams' performance in a foreign country Y. You quickly notice that in the country you were sent to bonuses based on competitive and rank-based goal attainments were much more successful than in your country.According to the data provided, and assuming the listed variables is all the information you have, there is a much greater probability that you are from a country such as ________, than from _______ :
Denmark; Ireland
Chris is the CEO of a U.S.-based multinational corporation. Jay is a manager in a similar position, but works for an American company that operates only in the U.S. and does not engage in international business. In this context, which of the following business functions will be most typically exclusive to Chris?
Designing an appropriate product for foreign customers
Corporation X is a multi-business US conglomerate contemplating international expansion. Company X has several different businesses, and it is trying to decide which of them should be internationalized first, and which ones could wait or may not have internationalization potential. Which of the following of Corporation X's businesses would you say has the SMALLEST globalization potential, aimed at conquering new customers in foreign markets:
Division B, focused on a chain of restaurants and fast food take-outs
Corporation X is a multi-business US conglomerate contemplating international expansion. Company X has several different businesses, and it is trying to decide which of them should be internationalized first, and which ones could wait or may not have internationalization potential. Which of the following best illustrates the globalization of production for Corporation X?
Division D, a digital imaging provider starting to expand internationally, hiring doctors in India to analyze X-Rays and MRIs taken everyday at Trinity Mother Francis in Tyler, Texas.
From the video, "what is globalization?" , which countries derive more than 55% of their GDP from world trade?
France, Great Britain, Germany
Company X from Country A does FDI in country B. In country B, "good companies" are those that share their wealth with the community through "corporate social responsibility" (CSR) actions. In Country B, Company X decides not to endeavor in any such CSR actions, as it says its sole responsibility is to make a profit respecting the law. This is a typical example of:
Friedman effect
From the video "Everything You Need to Know about GDP, GNI, and HDI", which statement is NOT GDP's limitation?
GDP cannot measure the overall growth or decline of a nation's economy.
From the video "Everything You Need to Know about GDP, GNI, and HDI", which indicator specifically focuses on people and their capabilities to assess the development and welfare of a country?
HDI
From the video "Porter's Diamond Model", which of the following factor does NOT belong to basic factor?
Human resource
The following statement is TRUE:
If a country restricts free trade in any way, such as import tariffs, import quotas, or subsidies, it cannot truly defend free trade, and it is engaging in some degree of protectionism
From the video "CSR and sustainability", which of the following statement belongs Starbuck's effort toward a more sustainable future?
Implement a socially responsible hiring process to diversify workforce.
From the video "Hofstede's Cultural Framework", which of the following statements is INCORRECT?
In a country with a low restraint rating, citizens are more likely to feel powerless.
From the video "CSR and sustainability", which of the following statement is NOT the benefits for firms to practice corporate social responsibility?
Increased social diversity
Mr. Bari finds it hard to dine with his American colleagues as his religion prohibits the consumption of pork and alcohol. He also quit his previous job in a bank because his religion considers the payment or receipt of interest as exploitative and unjust. According to this information, Mr. Bari is a follower of
Islam
From the video "Political systems in the world", which of the following statement is NOT the limitation of representative democracy?
It discourages participation.
Imagine the following situation: Company B is a large microcomputer US manufacturer. In terms of international activities, Company B exports its products to 20 countries around the world. Which of the following is TRUE about Company B's foreign operation:
It is feasible that Company B has not engaged in FDI (foreign direct investment), even if it does business in 20 countries around the world
From the video "Porter's Diamond Model", in which country, successful companies are often small or medium-sized companies that are privately owned and operated like extended families?
Italy
From the video "Absolute advantage and comparative advantage", assume that there are only two countries—Japan and Vietnam—that are engaging in trade and that both countries can only produce two types of goods: cameras and shoes. Japan can produce either 100,000 cameras or 1 million pairs of shoes. Vietnam can produce either 20,000 cameras or 800,000 pairs of shoes. Which country hold the absolute advantage of shoe production?
Japan
From the video "Foreign Direct Investment", in the 1990s, which state in the U.S. offered Toyota an incentive package worth $147 million to persuade it to build its automobile assembly plants there.
Kentucky
As per the U.S. law and OECD convention, which of the following is most likely to be considered as a grease payment?
Kisco Inc. made a small payment of $20 to speed up some paperwork related to tax returns in a less developed country.
From the video "Foreign Direct Investment", Caterpillar entered Japan in the 1970s to hinder the ability of its major rival _______ to expand its activities in the U.S.
Komatsu
U.S. exports are less capital-intensive than U.S. imports, despite the relative abundance of capital in the country. What is this phenomenon that runs contrary to the prediction of the Heckscher-Ohlin theory called?
Leontief paradox
From the video "Economic systems in the world", which of the following statement is NOT the advantages of a market economy?
Less Inequality
Which of the following reflects internalization theory?
Licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
From the video "Political systems in the world", which of the following statement is NOT common characteristics of representative democracy?
Majority rights
Use the following data to answer the next question:====================================================================## GNI (2014 US$ Billions): Indonesia: 895; Thailand: 358; Philippines: 322; Malaysia: 310; Pakistan: 247## GNI at PPP (2014 US$ Billions): Indonesia: 2,315; Thailand: 899; Pakistan: 881; Philippines: 771; Malaysia: 669## GNI at PPP per capita (2014 US$): Malaysia: 22,525; Thailand: 13,397; Indonesia: 9,260; Philippines: 7,827; Pakistan: 4,851## GDP Growth % (World bank 2010-14): Philippines: 7.2; Indonesia: 5.8; Malaysia: 4.7; Pakistan 4.4; Thailand: 1.8## HDI (2013) Index: Malaysia: 0.773; Thailand: 0.722; Indonesia: 0.684; Philippines: 0.660; Pakistan 0.537====================================================================Your company needs to choose a country to enter based on mortality rates: the higher the infancy mortality rate, the worse is the country as a target. According to the data provided, and assuming the listed variables is all the information you have, the chances of your company selecting ______ are MUCH HIGHER than it selecting _____:
Malaysia; Pakistan
From the video "Everything You Need to Know about GDP, GNI, and HDI", which component should NOT be considered as part of GDP?
Net foreign factor income (NFFI)
According to the _________, a given country can be globally dominant, even when it does not have any comparative advantage in such industry, or even when it does not have a significant domestic market. For such theorists, global dominance may rather arise from first-move advantages and economies of scale.
New Trade Theory
From the video "International Product Life Cycle Theory", under which stage, the market for a new product is relatively small and sales will be relatively low as a result?
New product stage
Silver Tape Corporation has developed a new type of adhesive tape. Which of the following types of legal protections can grant the company exclusive rights for a defined period to the manufacture, use, or sale of the new adhesive tape?
Patent
Use the following data to answer the next question:====================================================================## GNI (2014 US$ Billions): Indonesia: 895; Thailand: 358; Philippines: 322; Malaysia: 310; Pakistan: 247## GNI at PPP (2014 US$ Billions): Indonesia: 2,315; Thailand: 899; Pakistan: 881; Philippines: 771; Malaysia: 669## GNI at PPP per capita (2014 US$): Malaysia: 22,525; Thailand: 13,397; Indonesia: 9,260; Philippines: 7,827; Pakistan: 4,851## GDP Growth % (World bank 2010-14): Philippines: 7.2; Indonesia: 5.8; Malaysia: 4.7; Pakistan 4.4; Thailand: 1.8## HDI (2013) Index: Malaysia: 0.773; Thailand: 0.722; Indonesia: 0.684; Philippines: 0.660; Pakistan 0.537====================================================================Your company needs to choose a country to enter based on access to education by minorities: the higher the access to quality education by women and ethnic minorities, the better is the country as a target. According to the data provided, and assuming the listed variables is all the information you have, the chances of your company selecting ______ are MUCH LOWER than it selecting _____:
Philippines; Malaysia
From the video "Ethical Issues in International Business", which of the following statement is CORRECT about the Utilitarian?
Produce the greatest amount of good for the greatest number of people.
From the video "The Pros and Cons of Globalization", which American company rely on sales from the China market the most?
Qualcomm
Robert is the manager of his company's facilities in the India. He believes in ensuring the exact same standards of working conditions, wages, and labor management in the Indian as practiced by the company's corporate office in its home country, the United States. His policy does not always lead to profits because of the vast cultural differences between the two nations. Which of the following straw men approaches to ethics is most likely being adopted by Robert?
Righteous moralism
From the video "Everything You Need to Know about GDP, GNI, and HDI", which country is NOT listed in the top 5 countries with the highest GDP in the world for 2020?
Russia
Use the following data to answer the next question: ============================================================================= # Hofstede's Individualism: Denmark: 74; England: 89; Greece: 35; Ireland: 70; Malaysia: 26; Portugal: 27; Russia: 39; Singapore: 20; South Korea: 18 # Hofstede's Power Distance: Denmark: 18; Greece: 60; England: 35; Ireland: 28; Malaysia: 100; Portugal: 63; Russia: 93; Singapore: 74; South Korea: 60 # Hofstede's Uncertainty Avoidance: Denmark: 23; England: 35; Greece: 100; Ireland: 35; Malaysia: 26; Portugal: 99; Russia: 95; Singapore: 8; South Korea: 85 # Hofstede's Masculinity: Denmark: 16; England: 66; Greece: 57; Ireland: 68; Malaysia: 50; Portugal: 31; Russia: 36; Singapore: 48; South Korea: 39 # Hofstede's Indulgence: Denmark: 70; England: 69; Greece: 50; Ireland: 65; Malaysia: 57; Portugal: 33; Russia: 20; Singapore: 46; South Korea: 29 ============================================================================= In the 2014 movie The Imitation Game, based on real facts, the genius but socially impaired Alan Turing is recruited by WWII Brit intelligence to crack the Nazi Enigma machine. Commander Denniston, his boss, recruits a team of cryptographic all-stars to do it. However, Turing is so confident is his abilities that he suggests firing the rest of the team so they don't slow him down. To this, Commander Denniston replies, "Popular at school, were we?" According to the data provided, and assuming the listed variables is all the information you have, there is a much greater probability that such behavior would not be uncommon and would be more acceptable in a country such as ________, rather than _______ :
Russia; Denmark
Use the following data to answer the next question (all data UNCTAD, 2013; all in US$ Millions):========================================================## Outward FDI Stock 2013: Swaziland: 76.2; Chad: 70.3; Central African Republic: 43.2; Namibia: 31.8; Mozambique: 24.3; Niger: 14; Rwanda: 12.9## Inward FDI Stock 2013: Mozambique: 20966.9; Niger: 4939.7; Chad: 4757.7; Namibia: 4277.3; Rwanda: 853.9; Swaziland: 838.1; Central African Republic: 619.5## FDI 2013 Inflow: Mozambique: 5935.1; Namibia: 699.1; Niger: 631.4; Chad: 538.4; Rwanda: 110.8; Swaziland: 67; Central African Republic: 0.8## FDI 2013 Outflow: Rwanda: 13.5; Swaziland: 0.6; Central African Republic: 0; Chad: 0; Mozambique: -0.3; Niger: -6.7; Namibia: -8.2========================================================According to the data provided, and assuming the listed variables is all the information you had, which of the following countries has created the greatest amount of investments abroad by their companies in 2013 reported alone?
Rwanda
From the video "Ethical Issues in International Business", which of the following is NOT the roots of unethical behavior?
School Education
From the video "Hofstede's Cultural Framework", which of the following countries practice low individualism?
Singapore
From the video "Foreign Direct Investment", which of the following statement is NOT the major motives for FDI?
Social Justice Seeking
Use the following data to answer the next question:===============================================================================# Hofstede's Individualism: Denmark: 74; France: 71; Greece: 35; Hong Kong: 25; India: 48; Ireland: 70; Japan: 46; Malaysia: 26; Portugal: 27; Russia: 39; Singapore: 20; South Korea: 18; UK: 89# Hofstede's Power Distance: Denmark: 18; France: 68; Greece: 60; Hong Kong: 68; India: 77; Ireland: 28; Japan: 54; Malaysia: 100; Portugal: 63; Russia: 93; Singapore: 74; South Korea: 60; UK: 35# Hofstede's Uncertainty Avoidance: Denmark: 23; France: 86; Greece: 100; Hong Kong: 29; India: 40; Ireland: 35; Japan: 92; Malaysia: 26; Portugal: 99; Russia: 95; Singapore: 8; South Korea: 85; UK: 35# Hofstede's Masculinity: Denmark: 16; France: 43; Greece: 57; Hong Kong: 57; India: 56; Ireland: 68; Japan: 95; Malaysia: 50; Portugal: 31; Russia: 36; Singapore: 48; South Korea: 39; UK: 66# Hofstede's Indulgence: Denmark: 70; France: 48; Greece: 50; Hong Kong: 17; India: 26; Ireland: 65; Japan: 42; Malaysia: 57; Portugal: 33; Russia: 20; Singapore: 46; South Korea: 29; UK: 69===============================================================================Imagine you work in a multinational company that transferred you from the headquarters to a subsidiary. You have noticed that at the subsidiary, people need a lot more detailed procedures and regulations than you were used to, and sometimes they require that you spell the entire rule book out for them more than once.According to the data provided, and assuming the listed variables is all the information you have, there is a much greater probability that you were transferred to a country such as ________, than to the _______ subsidiary:
South Korea; Singapore
Use the following data to answer the next question:========================================================## GNI at PPP per capita (2014 US$): Indonesia: 9,260; Malaysia: 22,525; Philippines: 7,827; Pakistan: 4,851; Thailand: 13,397## GNI at PPP (2014 US$ Billions): Indonesia: 2,315; Malaysia: 669; Pakistan: 881; Phillipines: 771; Thailand: 899## GDP Growth % (World bank 2010-14): Indonesia: 5.8; Malaysia: 4.7; Pakistan 4.4; Philippines: 7.2; Thailand: 1.8## HDI (2013): Indonesia: 0.684; Malaysia: 0.773; Pakistan 0.537; Phillipines: 0.660; Thailand: 0.722========================================================Your company needs to choose a country to enter based on market viability to its high priced, luxury products: the higher the capacity of the local market to consume such type of products, the better is the country as a target. According to the data provided, and assuming the listed variables is all the information you have, the chances of your company selecting ______ are MUCH HIGHER than it selecting _____:
Thailand; Philippines
From the video "what is culture?", which of the following statements is INCORRECT?
The least rigid system of stratification is a caste system.
The textile industry in a nation is characterized by very strong domestic competition. Which of the following observations of this nation's international competency is most likely to be true?
The nation's textile firms will likely have a competitive advantage in international trade
From the video "The Pros and Cons of Globalization", what Tesla, Google, Yahoo, YouTube, Zoom, Pfizer, and Colgate all have in common?
They were all founded by immigrants.
From the video "Everything You Need to Know about GDP, GNI, and HDI", which component takes the largest portion of America's GDP?
Total domestic consumption (C)
Company X from Country A does FDI in country B. In country A, a company operating locally can be shut down if it pays what they call "inhumane salaries" (less than 1 US$ per hour). In Country B, Company X pays $1 per day to its workers. Company X argues that doing is justified because it results in the benefit of the maximum number of people: it is higher than the local salaries, and otherwise people would be out of work. Their ethical point is typical of:
Utilitarian approach to business ethics
From the video "Absolute advantage and comparative advantage", assume that there are only two countries—Japan and Vietnam—that are engaging in trade and that both countries can only produce two types of goods: cameras and shoes. Japan can produce either 100,000 cameras or 1 million pairs of shoes. Vietnam can produce either 20,000 cameras or 800,000 pairs of shoes. Which country hold the comparative advantage of shoe production?
Vietnam
Your significant other has a surprise for you: he/she was offered a job at an international organization, but wants to keep which one a surprise for you. You did get from him/her that the organization was involved in helping countries resolve subsidies and tariff disputes with other countries. You could safely say it is much MORE LIKELY it is the _________ than the _______:
WTO; G20
The country Y is classified as having low human development (the quality of life is poor). This means its HDI is
a score of less than 0.5 on the HDI scale
In a social context, the term values is used to describe the
abstract ideas about what a group believes to be good, right, and desirable.
Jay is the manager of a pharmaceutical manufacturing facility in a developing country. The manufacturing unit does not meet the acceptable standards of the manufacturing facility in the home nation. He knows that demanding a better manufacturing unit will raise the cost of the drugs mainly exported to other less developed countries, and hence its price. But he also realizes that by not demanding a better unit, the employees are prone to serious health issues. Jay is facing
an ethical dilemma
Company Z paid a sum of $100,000 to an official in the government of Country X to ensure that the company obtained exclusive preferential treatment. The $100,000 can be classified as
bribe
In country Z, the citizens are restricted from moving out of the strata they are born into. Also, individuals are allowed to engage only in the occupation associated with their particular strata. The system of social stratification being practiced in country Z can be identified as a
caste system
The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on
collectivism
The government of country X plans the goods and services that country X produces, the quantity of goods produced, and the prices at which goods are sold. country X is a ______ economy.
command
Judges in a ________ system have the power to interpret the law, so that they apply to the unique circumstances of an individual case to ________.
common law; precedent, tradition, and societal customs
From the video "Legal systems in the world", which of the following statement is INCORRECT about the common law?
common laws
In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as
communists.
According to the concept of ________, it makes sense for a country X to specialize in the production of those goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries, even if country X has an absolute advantage over its production:
comparative advantage
Imagine that a US company, which used to do business only in the USA, has recently entered a foreign market that uses a civil law system. It is likely that, compared to the previous situation:
contracts in the new market will tend to be less specific, shorter, and less complicated
The 2016 US election has brought to light the debate between those in favor and those critics of globalization and free trade. In terms of such debate, if one is a ______ of globalization, one tends to believe that _______:
critic; free trade encourages firms from advanced nations to move manufacturing facilities to less developed countries
Under an extreme _________ ethical viewpoint, an inhumane act may be ethically supported, such as child labor
cultural relativist
When a country is importing more goods and services than it is exporting, it is incurring a(n)
current account deficit
Your company specializes in organizing privatization projects. Your boss tells you that country X, where your company works, is shifting from a market economy to a command economy. It is likely that demand for your services in country X will:
decrease in the foreseeable future
The adoption of ___________ is most likely a(n) ________ of economic progress:
democracy; consequence
Which of the following concepts helps explain how location factors affect the direction of FDI?
eclectic paradigm
WalMart makes bulk purchases from its vendors and hence it is able to get better deals than its competitors. This allows WalMart to offer greater discounts to its customers. In this case, WalMart benefits from ____.
economies of scale
