BA 310 Final

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(CH.2 #24) The corporate practice of acquiring or producing quality goods or services at a lower cost abroad thereby eliminating domestic production is called _____. a. outsourcing b. exporting c. importing d. foreign investment e. trading

19. Increasingly, emerging economies are a. innovative and technologically advanced. b. sources of inexpensive labor. c. largely agricultural. d. simply copying the technologies used in more advanced economies. e. being left behind in the global economy.

20. A sustainable decoupling process would eventually lead to _____. a. a multi-polar world b. globalization c. outsourcing d. transparency e. income inequity

22. According to the authors, which of the following is NOT true regarding globalization lessons for developing countries? a. Import oriented nations must switch to concentrate on domestication. b. Export oriented nations must diversify their market to include major emerging economies. c. Countries emphasizing exports should base their strategy on their true competitive advantage. d. For countries with large populations, the size of the domestic market remains most important. e. Overindulgence can lead to disaster.

24. All of the following statements about regional integration are true EXCEPT: a. regional integration should initially address a broad, ill-defined area of cooperation. b. regional integration should not create unconnected or isolated countries. c. regional integration should compensate the least fortunate. d. regional integration has advantages and disadvantages. e. regional integration may reduce the powers of the national government.

24. What was the initial primary role of the World Bank? a. To aide in the reconstruction of Europe after World War II b. To provide low-interest mortgage loans to minorities c. To try to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression. d. To deal primarily with tariff negotiations e. To provide loans and take equity position in private companies

35. Illicit dealings undermine economic performance by doing all of the following EXCEPT: a. decreasing costs. b. raising competition. c. thwarting competition. d. reducing transparency. e. raising insecurity.

36. ABC Technology touts in their advertisements that their technology can transfer huge amount of data and other information in a second via the Internet. This describes ABC's _____ in technology. a. bandwith b. digital server c. digital divide d. gigabytes e. Y2K

38. Of the following, which is NOT true regarding the Internet and cell phone era? a. Fortunately, the next billion users will be the same as the first billion b. The majority of users will be from developing countries c. Text messaging will likely predominate emerging economies; mobile phone usage d. Countries are skipping the use of land-line technology and jumping to wireless systems e. Developing countries may "leapfrog" an entire generation of technology

39. All of the following are arguments against globalization EXCEPT: a. it may lead to an increase in the appearance of old industries. b. it may lead to a loss of control over economic policies and developments. c. it may lead to an erosion of communities. d. it can be a force of exploitation and injustice. e. it can cause job losses and stagnant wages.

44. Which of the following is NOT true regarding globalization? a. It guarantees that quality of life for all people will increase. b. It creates winners and losers. c. It has the potential to increase the quality of life for people. d. Some multinational companies will utilize globalization may try to pay substandard wages to the workers they employ in developing countries. e. Export barriers may need to be imposed by the WTO to help regulate the actions of multinational companies.

61. T & M Computers are conducting international business operations in world areas, which have recently undergone financial turmoil. Of the following, which organization is most likely to provide assistance in providing global financial stability? a. International Monetary Fund b. The United Nations c. The World Bank d. The Global Center for Financial Restructuring e. The World Trade Organization

67. The mangers of the Everline Corporation attribute their company's continued profitability to the idea that globalization and information technology are closely related to one another. They acknowledge that the information technology revolution has occurred almost instantaneously. Which one of the following would not be considered a benefit derived from this so-called revolution? a. Societal hierarchies have grown in number to better accommodate information technology changes. b. A more free flow of capital across national boundaries has occurred. c. Operating costs have decreased for many businesses. d. The production of goods and services has become globalized. e. The costs of communication are reduced.

70. The Renna Company has a clear understanding of the benefits of economic development. Economic development which meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially or economically is best identified as which one of the following? a. Sustainable development b. Reform process c. Trade liberalization d. Corporate social responsibility e. Environmental degradation

A management style that stresses competition among workers and among companies would likely not work well in a. China. b. Germany. c. Canada. d. the United States. e. Russia.

A sustainable decoupling process would eventually lead to _____. A. multi polar world b. globalization c. outsourcing d. importing e. exporting

ABC Technology touts in their advertisements that their technology can transfer huge amount of data and other information in a second via the Internet. This describes ABC's _____ in technology. a. brandwith b. digital server c. digital divide d. gigabytes e. Y2K

According to the GLOBE Project research, _____ has emerged as the group that was the most in favor of uncertainty avoidance. a. Germanic Europe b. Southern Asia c. Eastern Europe d. the Arabic group e. Latin Europe

According to the authors, which of the following is NOT true regarding globalization lessons for developing countries? a. Import oriented nations must switch to concentrate on domestication. b. Export oriented nations must diversify their market to include major emerging markets. c. Countries emphasizing exports should base their strategy on their true competitive advantage. d. For countries with large populations, the size of the domestic market remains most important. e. Overindulgence can lead to disaster.

According to the text, which of the following is the second stage of regional integration? a. A customs union b. An economic union c. A free trade area d. A common market e. A political union

All of the following are arguments against globalization EXCEPT: a. it may lead to an increase in the apperance of old industries. b. it may lead to a loss of control over economic policies and developments. c. it may lead to an erosion of communities. d. it can be a force of exploitation and injustice. e. it can cause job losses and stagnant wages.

Assume that because of soil and climatic conditions, Brazil is more efficient in the production of coffee than the United States. At the same time, the United States is more efficient in the production of apples than Brazil. Each of these countries can be said to have a(n) _____. a. absolute advantage b. comparative advantage c. factor endowment destruction in land d. bartering disadvantage e. mercantile disadvantage

Both the theory of comparative advantage in production and the H-O theory provide ______ as a basis for international trade. a. factor endowments b. trade surplus theory c. foreign direct investment d. managed trade theory e. trade deficit theory

GATT refers to which of the following? a. General Agreement of Tariffs and Trade b. Great American Trade Tax c.Gift of American Treaty Tips d. General Articles on Tariffs and Trade e. Great Articles on Tariffs and Trade

How does ASEAN differ from the EU? a. It does not call for the free movement of labor across member states. b. It maintains both tariff and non-tariff barriers among member states. c. It calls for the establishment of a single market. d. It calls for the establishment of a production base. e. It refuses to do business with non-member states.

How does Porter's model of national competitive advantage differ from the Heckscher-Ohlin theory? a. It looks more closely at the quality of factor endowments. b. It examines only a country's imports. c. It examines only a country's exports. d. It does not encourage trade. e. It does not explain why there are "winners" and "losers" in international trade.

Illicit dealings undermine economic performance by doing all of the following EXCEPT: a. decreasing costs. b. raising competition. c. thwarting competition. d. reducing transparency. e. raising insecurity.

In some countries, a high premium is placed upon foreigners and foreign items, as they are associated with sophistication -Belgian chocolate, for example, or Swedish automobiles. In other countries, there is subtle resistance to foreign items. This is an example of a cultural _____. a. value b. social institution c. custom d. stance e. outlook

In the 3,000 B.C., Sumerian farmers realized that the grain surplus they produced could be used as barter for things they did not have. Therefore, the Sumerians obtained copper from Sinai Desert traders who were located several hundred miles to the west in order to make weapons and repel nomadic raiders. The Sumerians engaged in _____ a. international business b. in-border business c. environmental business d. national business e. domestic business

In which country is ASEAN headquartered? a. Indonesia b. Vietnam c. Canada d. Japan e. India

In which country is the EU headquartered? a. Belgium b. France c. Germany d. Italy e. Turkey

India and Brazil have been moving towards more open trade and free market policies. These countries can be described as a. emerging market economies. b. open-door economies. c. industrialized countries. d. common market economies. e. the World Bank countries.

Investments in basic and higher education are made through the ASEAN ______ community. a. sociocultural b. security c. educational d. literacy e. economic

NAFTA is in which stage of the economic integration process? a. First stage (free trade area) b. Second stage (customs union) c. Third stage (common market) d. Fourth stage (economic union) e. Fifth stage (political union)

Of the following statements regarding the euro, which is NOT true? a. The U.K., Denmark, and Sweden use the euro as their currency. b. The euro was introduced on January 1, 1999. c. Eighteen of the 28 EU countries are permitted to use the euro as their currency. d. The euro was considered the crowning success of the EU's plans to integrate European economies. e. The European Central Bank is the apex central bank for the Eurozone countries.

Of the following, which is NOT in the geo-political category of managed trade? a. Ethics and safety b. National security c. Strategic industries d. Embargoes e. Protection of critical industries

Of the following, which is NOT true about managing and marketing in overseas markets? a. Only one management style need be used. b. There can be different cultural groups within countries of which organizations need to be aware. c. Advertising campaigns must be tailored to local cultures. d. Culture has an impact on communication styles. e. Clear communication can improves the outcomes of management decisions.

Of the following, which is NOT true regarding the Internet and cell phone era? a. Fortunately, the next billion users will be the same as the first billion b. The majority of users will be from developing countries c. Text messaging will likely predominate emerging economies; mobile phone usage d.Countries are skipping the use of land-line technology and jumping to wireless systems e. Developing countries may "leapfrog" an entire generation of technology

Someone who believes in the infant industry argument would be MOST likely to support ______ for a new industry. a. high tariffs b. illegal trade c. an export cartel d. an embargo e. domestic content provisions

Taxes on imports that are collected by a designated government agency responsible for regulating imports are called _____. a. custom duties b. ad valorem tariffs c. specific tariffs d. preferential tariffs e. generalized tariffs

The _____ states that when factors are allowed to move freely among trading nations, efficiency increases, which leads to price of factors becoming equal among countries. a. factor-price equalization theory b. diamond theory c. trade policy theory d. managed trade theory e. trade deficit theory

The key assumptions for the H-O theory to work are: (1) perfect immobility of factors of production among countries; and (2) _____. a. perfect competition in the workplace b. superior allocation of production of goods and services c. very small labor force d. the existence of a trade surplus e. the acceleration of a trade deficit

The oldest form of trade theory is called _____. a. mercantilism b. factor equalization c. Machiavellianism d. absolute advantage e. comparative advantage

The world's two largest economies in terms of national income in the early-19th century were _____. a. China and India b. the United States and Canada c. Japan and China d. India and Japan e. the United States and Mexico

What is the goal of the ASEAN Security Community (ASC)? a. To ensure that countries in the region live in peace with one another b. To come to the aid of member nations in time of war c. To ensure that the ASEAN workforce is prepared to benefit from economic integration d. To oversee the construction of roads and railways between member nations e. To use the military to ensure the free flow of goods across borders

What was the initial primary role of the World Bank? a. To aide in the reconstruction of Europe after World War II b. To help eradictate communicable diseases c. To try to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression. d. To deal primarily with tariff negotiations e. To provide loans and take equity position in private companies

When doing business in China, it is important to remember that a. exchanges are often uneven, working to the advantage of weaker members in the relationship. b. persons of low rank never have any influence or power in a relationship. c. an emotional appeal to superiors will almost always be successful. d. one must never give in to any demands of the Chinese hosts. e. obtaining the favor of subordinates will be seen as a sign of weakness.

Which of the following is NOT true regarding globalization? a. It guarantees that quality of life for all people will increase. b. It creates winners and losers. c. It has the potential to increase the quality of life for people. d. Some multinational companies will utilize globalization may try to pay substandard wages to the workers they employ in developing countries. e.Export barriers may need to be imposed by the WTO to help regulate the actions of multinational companies.

48. The World Bank was conceived at the ________ Conference in 1944.

ANSWER: Bretton Woods

46. _______ refers to a fundamental global shift in which industrialized country-dependent developing economies begin to grow based on their own underlying economic strengths rather than the ups and downs of the world's richest countries.

ANSWER: Decoupling

51. A system of responsibility in which an authority, such as the government, is answerable for its actions refers to ________.

ANSWER: accountability

52. National laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms are called _______.

ANSWER: antitrust laws

49. A stock exchange where long-term financial instruments such as stocks and bonds can be bought and sold refers to _______.

ANSWER: capital markets

53. The period of transformation that adjusts lifestyles to make the Internet and wireless technologies a part of everyday life refers to the ______.

ANSWER: digital era

50. The rules, enforcement mechanisms, and organizations that support market transactions are called ______.

ANSWER: institutions

47. A world economy in which the engines of growth could comprise several major industrialized and emerging market economies such as the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone is called ______.

ANSWER: multi-polar world

55. Economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially or economically is called ______.

ANSWER: sustainable development

54. The _______ is a system of interlinked documents contained and accessed via the Internet.

ANSWER: web

41. Of the following, which is NOT a key principle of the Jamaica Agreement? a. Members could adopt their own exchange systems. b. A system of global fixed exchange rates would only be implemented if approved by a vote of 85 percent of membership. c. Gold would no longer be a common denominator of the monetary system. d. The SDR created by the IMF was recommended as the primary reserve asset of the international monetary system. e. All countries would adopt the European Exchange Rate Mechanism.

All countries would adopt the European Exchange Rate Mechanism.

31. According to the text, _____ countries' exports are growing the fastest. a. North American b. South American c. Asian d. African e. European

Asian

27. The International Finance Corporation (IFC) performs which of the following functions? a. Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members b. Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies c. Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets d. Provides political risk coverage for private investments made in developing countries e. Works on issues related to foreign investment disputes

29. Trade without discrimination, freer trade, predictability, promotion of fair competition, and _____ are the five principles of the multilateral trading system. a. integrated capital markets b. encouragement of economic reform in developing countries c. liberalization of the trading system d. nontariff trade e. establishment of "most favored nation" status

45. All of the following countries can be considered globalization "winners" EXCEPT: a. China b. North Korea c. India d. Brazil e. South Africa

63. T & M Computers plans to begin operations in areas that recently needed financial assistance and undergone certain levels of reconstruction and reorganizing to their economies. Which organization listed below is most likely to have played an integral part in this? a. The World Trade Organization b. The World Bank Group c. The International Development Association d. The International Finance Corporation e. The sovereign government of Greece

68. Which one of the following statements is least likely to be a rationale explaining why the Renna Company staunchly desires to avoid global expansion? a. Globalization can create a wearing away of old industries. b. Globalization brings into play the concept of sustainable development. c. Globalization can contribute to an increase in environmental degradation. d. Global expansion often leads to greater integration and interdependence among economies and societies, which can bring about injustices. e. Economic change comes with a high price tag including job losses and wages that become stagnant.

A group of states with convergent social, economic, and monetary policies is called a(n) _____. a. customs union b. economic union c. free trade area d. common market e. political union

ASEAN has two main objectives: 1) to accelerate economic growth, social progress, and cultural development in the region; and 2) _____. a. to trade with NAFTA b. to promote regional peace and stability c. to cover Asian countries to use of the euro d. to create more countries in Asia e. to become a world power

ASEAN's current membership stands at how many countries? a. 5 b. 10 c. 2 d. 25 e. 30

According to the GLOBE Project research, _____ was ranked first on power distance. a. Germanic Europe b. Southern Asia c. Eastern Europe d. the Arabic group e. Latin Europe

All of the following countries can be considered globalization "winners" EXCEPT: a. China b. Central Asia c. India d. Brazil e. South Africa

As of 2013, was the world's largest economy, followed by _____ and _____. a. India; the United States and China b. the United States; China and India c. Japan; China and Mexico d. India; Japan and Canada e. the United States; Mexico and Canada

Feelings or opinions are called a. values. b. attitudes. c. manners. d. customs. e. aesthetics.

In Arab countries, it is crucial for a visitor to a. use the left hand to exchange greetings. b. avoid sitting so that the sole of one's shoe is shown. c. praise his or her hosts effusively. d. insist on staying on-topic at all times. e. ask about the hosts' wives and children.

In ______, teachers are so revered that walking in their shadows is viewed as impolite. a. Mexico b. Korea c. Russia d. Saudi Arabia e. India

It is estimated that for every billion dollars worth of exports from the United States _____ domestic jobs are created. a. 5,000 b. 20,000 c. 100,000 d. 500,000 e. 1,000,000

Of the following, which dimension identified by Hofstede refers to the level of egalitarianism in a society? a. Individualism vs. collectivism b. Power distance c. Masculine vs. feminine d. Uncertainty avoidance e. Internal control vs. external control

Of the following, which is NOT a cultural aspect of doing business in Korea? a. The number 1 is good, whereas the number 4 signifies death. b. Business card etiquette is the most important aspect of closing the deal. c. Younger brothers and sisters are not allowed to use the names of their older siblings. d. "Yangban" refers to the noble class. e. Children are not supposed to say their parents' names, even when used with a title.

Of the following, which is NOT true regarding Hofstede's cultural dimensions? a. Japan and Mexico are highly collectivistic. b. Australia and the United States are high power distance countries. c. Denmark has been described as a highly feminine culture. d. Finland and Sweden are less tolerant of risk than Portugal and Brazil. e. China and Japan have much longer time horizons than do most Western nations.

The World Bank's (2009) World Development Report concludes that successful regional integration depends on positive changes within a. comparative and absolute advantage. b. market size, location, and openness to trade. c. government control over the economy. d. the relationship between employers and employees. e. regional integration blocs.

The ability of one country that has an absolute advantage in the production of two or more goods (or services) to produce one of them relatively more efficiently than the other is called a(n) _____. a. opportunity cost b. comparative advantage c. factor price d. factor endowment e. advantage of specialization

The color black in the United States indicates mourning, but in Japan white is the color of mourning. Green is an acceptable color in Muslim countries; all flags of those countries contain green. These are examples of which of the following? a. Material culture b. Aesthetics c. Social institutions d. Stratification e. Intangible culture

The members of the Maghreb Union a. all have similar political and economic systems. b. hope to form an economic and political union in North Africa. c. all suffer under enormous amounts of debt. d. are losing their competitiveness against EU countries. e. have been unable to attract much foreign investment.

Trade without discrimination, freer trade, predictability, promotion of fair competition, and _____ are the five principles of the multilateral trading system. a. integrated capital markets b. encouragement of economic reform in developing countries c. liberalization of the trading system d. nontariff trade e. international

Which would a mercantilist value the MOST? a. labor b. a trade surplus c. absolute advantage d. a trade deficit e. factor endowments

_____ refers to the process of allowing efficient geographic distribution of business activities within and among countries. a. Regional integration b. Spatial transformations c. Free trade d. Economic integration e. Economic geography

______ communication refers to tone of voice, gestures, eye contact, body positions, facial grimaces, and other body language that accompanies verbal communication. a. Verbal b. Nonverbal c. Informal d. Formal e. Backward

_____refers to a Korean philosophy stressing harmony among unequals, loyalty to parents and authority figures, and superiors being responsible for the well-being of subordinates. a. Guanxi b. Inwa c. Yangban d. Stratification e. Aesthetics

The difference between bid and ask prices of a currency, or the fee earned by the bank is called the _____. a. exchange rate b. bid-ask spread c. forward rate d. premium e. hedge

Bid-ask Spread ;)

17. Which of the following is NOT a key aspect of globalization? a. The elimination of barriers to trade b. Investment c. Financial independence d. Culture e. Information technology

25. The International Bank for Reconstruction and Development performs which of the following functions? a. Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members b. Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies c. Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets d. Provides political risk coverage for private investments made in developing countries e. Works on issues related to foreign investment disputes

28. Which of the following is NOT an objective of the WTO? a. Reviewing national trade policies b. Acting as a forum for trade negotiations c. Naming commissioners to local trade organizations d. Settling trade disputes e. Administering trade agreements

30. In Brazil, if there are government organizations that create strong incentives for private investment and operate under a system of checks and balances that function best in a democratic system of government, they could be classified as which of these? a. Transparent organizations b. Antitrust corporations c. Adaptive institutions d. Emerging markets e. Capital markets

31. To sustain globalization, nations must build institutions that support all of the following EXCEPT a. democratic systems of government. b. free markets. c. command economies. d. independent judiciaries. e. a free press.

37. The rapid fall in prices of digital IT equipment and services may a. reduce the importance of IT in the global economy. b. spell the end of the digital era. c. make digital divide a myth. d. reduce the availability of bandwidth in developed economies. e. localize the production of goods and services.

42. Which of the following is NOT true regarding results from a survey by the World Bank on corporate social responsibility (CSR)? a. CSR practices are now a significant factor in determining where multinational companies conduct business. b. 90% of the companies surveyed have board-approved policies on environmental management. c. 90% of multinationals will make their decisions based on CSR issues with regard to foreign direct investment. d. CSR issues consistently implemented for the long term lead to sustainable business and development. e. CSR includes issues such as labor rights, corruption, human rights, community health, and land rights.

62. Which one of the following would T & M Computers least expect to be a negative influence from the sovereign governments within the nations where their business operations are located? a. Military hostilities b. Protectionist policies c. Promotion of economic growth and job creation d. Stiff environmental standards e. Stringent immigration policies

65. There is a perceived economic gap among the various foreign customers of the Everline Corporation. This is thought to be mainly the result of the level of access or lack thereof to modern digital information technologies experienced within these individual countries. Considering this perceived economic gap, Everline's operations may be experiencing influence identified as which of the following? a. Digital stagnation b. Digital era c. Digital divide d. Bandwidth technology era e. Web revolution

According to the text, which of the following is NOT a regional bloc close to world markets? a. Guatemala b. Chile c. Russia d. Singapore e. Vietnam

All of the following statements about the EU are true EXCEPT: a. it is headquartered in Brussels. b. it is the most highly evolved example of regional integration in the world. c. its founding members consisted of ten countries. d. its origins can be traced to the creation of the European Coal and Steel Community. e. its eastward enlargement reflects a common past.

During the mid-18th century, British economist ________, who came to be known as the father of free market and open trade systems, recognized the absurdity of Mercantilism. a. Bertil Ohlin b. Eli Heckscher c. Adam Smith d. Henry Ford e. John Locke

In ABC country, a system of responsibility in which an authority, such as the government, is not answerable for its actions, it would be described as having the lack of _____. a. banking system b. integrity c. accountability d. transaction-based exporting e. trustworthiness

In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed. This is an example of cultural _____. a. aesthetics b. attitudes c. manners and customs d. social institutions e. outlooks

In Brazil, if there are government organizations that create strong incentives for private investment and operate under a system of checks and balances that function best in a democratic system of government, they could be classified as which of these? a. Transparent organizations b. Antitrust corporations c. Adaptive institutions d. Emerging markets e. Capital markets

In China, consumers drink soup, which usually contains rice, and do not use a spoon. In Muslim countries, it would be inappropriate to bring a gift for another man's wife. These are examples of cultural_____. a. value b. attitude c. manners and customs d. stance e. outlook

In which country might an American businesswoman find her hosts especially reluctant to work with her? a. Germany b. Mexico c. Saudi Arabia d. Canada e. South Africa

Mexican business executives who buy business-to-business products from U.S. suppliers indicate that "knowledge of the Mexican culture" and "enthusiasm" were the most important cultural variables determining from which supplier they purchased. This example of which of the four characteristics of culture which is important for global companies to recognize? a. Culture is learned, not inherited. b. It is nearly impossible to change an entire county's culture. c. It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves. d. Companies' operations, chiefly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves. e. Culture is inherited, not learned.

Of the following statements about mercantilism, which is NOT true? a. It was practiced as Europe emerged from the feudal systems of the Middle Ages and moved toward nationalism b. Mercantilists believed that for a nation to become wealthy, that nation must export as much as possible and, in turn, import as little as possible. c. During the time it was practiced, wealth was largely determined by the amount of land one had access to. d. Mercantilists did not want, or care, to see the big picture. e. Mercantilists encouraged their people to produce large families.

Of the following, which is NOT true about the future of ASEAN? a. ASEAN's Vision 2020 calls for aggressive outward-looking economic policies. b. Several bilateral Free Trade Agreements are currently being implemented. c. A growing ASEAN concern is the economic ascendancy of North Korea. d. The ASEAN-Japan Comprehension Economic Partnership agreement covers trade in goods, services, and investment and economic cooperation. e. The ASEAN Australian-New Zealand FTA was signed in February 2009.

Suppose the United States exports automobiles to Saudi Arabia and agrees to import a corresponding value of oil from Saudi Arabia. This is an example of a. a trade deficit. b. the infant industry argument. c. countertrade. d. a domestic content provision. e. an export cartel.

The International Bank for Reconstruction and Development performs which of the following functions? a. Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members b. Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in theose economies c. Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets d. Provides political risk coverage for private investments made in developing countries e. Works on issues related to foreign investment disputes

The Treaty of Montevideo created _____. a. the EU b. ASEAN c. LAFTA d. NAFTA e. MERCOSUR

The _____ describes the perceived economic gap between countries or people with easy access to digital and information technology and those with very limited or no access. a. bandwith b. digital era c. digital divide d. gigabyte number E. Y2K gap

Until January 1, 2012, the price for ethanol consumers in the United States was higher than world free-market price by $0.54 per gallon because of the $0.54 per gallon tariff imposed by the U.S. government on ethanol imports. This is an example of a(n) _____ tariff. a. custom b. ad valorem c. specific d. preferential e. generalized

Venezuela became a member of MERCOSUR in July 2012 and is considered a key member because of its a. low tax rates and absence of tariffs. b. large population of educated, highly skilled workers. c. vast energy resources and significant domestic market. d. high-tech economy, the most advanced in South America. e. long history of political and economic stability.

Which of the following is NOT a key aspect of globalization? a. The elimination of barriers to trade b. Investment c. Financial independence d. Culture e. Information technology

Which of the following is NOT an objective of the WTO? a. Reviewing national trade policies b. Acting as a form for trade negotiations c. Helping eradictate communicable diseases d. Settling trade disputes e. Administering trade agreements

Which of the following is NOT true regarding results from a survey by the World Bank on corporate social responsibility (CSR)? a. CSR practices are now a significant factor in determining where multinational companies conduct business. b. 90% of the companies surveyed have board- approved policies on environmental management. c. 90% of multinationals will make their decisions based on CSR issues with regard to foreign direct investment. d. CSR issues consistently implemented for the long term lead to sustainable business and development. e. CSR includes issues such as labor rights, corruption, human rights, community health, and land rights.

Which of the following is NOT true regarding the global use of information technology? a. Our globe relies on the Internet for business and social activity. b. Broadband prices have been falling. c. The IT revolution has been relatively slow. d.Internet-related technologies help reduce corporate and societal hierarchies. e. Internet and wireless technologies could make many authoritarian governments uneasy.

Which of these expressions should an American businessperson avoid in a meeting with foreign business representatives? a. "Today we will be discussing the new contract." b. "It is my pleasure to meet with you today." c. "Let's run this idea up the flagpole." d. "I look forward to working with you." e. "Let's discuss this idea further."

With the anticipated success of NAFTA, formal discussions to establish a Free Trade Area of the Americas began under the _____ administration. a. Obama b. Bush c. Clinton d. Reagan e. Carter

____ refers to the way people in a society relate to one another within group settings. a. Material culture b. Aesthetics c. Social institution d. Stratification e. Intangible culture

_____ infrastructure refers to housing, medical services, and educational institutions. a. Material b. Technological c. Social d. Financial e. Economic

_____ refers to agreements, sometimes temporary, between countries (or a group of countries) that aim at achieving certain trade outcomes. a. Quantitative agreements b. Qualitative agreements c. Managed trade agreements d. Voluntary export agreements e. Domestic content provision agreements

_____ refers to the way a society does things. a. Values b. Attitudes c. Manners and customs d. Stances e. Outlooks

Which of the following represents the top trading partner of the United States? a. Mexico b. Canada c. Germany d. Japan e. France

Canada

47. _______ is an economic ideology where by the government owns and controls all major factors of production, and is philosophically an economically classless society.

Communism

16. Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United States. Brazilian juice is engaging in a. economic development in United States. b. exercising nontariff barriers in Brazil. c. unfair trade practices. d. globalization. e. the World Trade Bank Group.

21. A world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone can be described as a(n) __________. a. interdependent world b. industrialized world c. globalized economy d. multi-polar world e. diverse world

26. The Multilateral Investment Guarantee Agency performs which of the following functions? a. Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members b. Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies C. Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets d. Provides political risk coverage for private investments made in developing countries e. Works on issues related to foreign investment disputes

32. The most recent devices that enable the greatest ease in portability and accessibility of information are ______. a. magazines b. newspapers c. advertisements d. smart phones e. computers

33. In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on _____. a. politics b. integrity c. accountability d. transparency e. democracy

34. Which of the following is NOT true regarding competitive markets? a. Successfully globalized economies strive to attain competitive markets at home. b. Governments try to minimize the role of state-owned enterprises in market economies. c. Regulations that promote free domestic markets also tend to promote globalization. d. Antitrust laws must be eliminated if competitive markets re to be sustained. e. Antitrust laws interfere with the natural growth of successful businesses.

40. The only way workers in industrialized countries can compete with their counterparts in the developing world will be through: a. increased use of the cost leadership strategy. b. increased diversity within the organization. c. increased empowerment of employees. d. increased productivity by using technologically-intensive manufacturing technologies. e. increased flat organization structure.

66. The Everline Corporation's future business plans include expanding into foreign markets where the use of mobile Web browsing is growing rapidly. Which one of the following countries would this organization be least likely to look toward to include in their future expansion plans? a. Vietnam b. Kenya c. India d. Germany e. Nigeria

A world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone can be described as a(an) __________. a. interdependent world b. industrialized world c. globalized economy d. multi-polar world e. diverse world

According to Hofstede, which of the following countries is best described as a highly feminine culture? a. Mexico b. Belgium c. Greece d. Norway e. Japan

According to Porter's "diamond" model, the success or competitive advantage of a nation at the global stage depends upon the interaction of all of the following EXCEPT a. firm strategy, structure, and rivalry. b. related and supporting industries. c. demand conditions. d. a conservative political structure. e. factor conditions.

An agreement where a large number of developed counties permit duty-free imports of a selected list of products that originate from specific countries is known as _____. a. a custom duty b. an ad valorem agreement c. an export agreement d. the generalized system of preferences e. an import agreement

As a means to push NAFTA south of Mexico, the Bush administration began free-trade talks with all of the following countries EXCEPT a. Costa Rica. b. Honduras. c. the Dominican Republic. d. Haiti. e. Nicaragua.

Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United States. Brazilian juice is engaging in a. economic development in United States. b. exercising nontariff barriers in Brazil. c. unfair trade practices. d. globalization. e. the World Trade Bank Group.

In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on _____. a. politics b. integrity c. accountability d. transparency e. democracy

In ____ translation, a message is translated from English to another language, then someone skilled in that foreign language translates it back into English; this second translation can then be compared to the original English version. a. vertical b. horizontal c. forward d. backward e. diagonal

Of the following statements about foreign direct investment, which is NOT true? a. FDI in a country brings funds and business culture from abroad. b. Governments all over the world try to create a business-friendly environment to attract such investments. c. FDI creates new well-paying jobs. d. Foreign investors have little faith in high-income economies such as Canada. e. Foreign investment flows are generally based on long-term global or country outlook.

Of the following statements about regional blocs close to major world markets, which is NOT true? a. The ASEAN is intensifying its free trade relations with the huge markets in China. b. India, Japan, and South Korea play an important role in the SAARC. c. Access to markets is essential for economic growth. d. The oil-rich regional economy of the Middle East and North Africa has been growing fast and creating jobs for its population. e. Countries close to major markets have the advantage of connecting to suppliers and ideas.

Of the following statements about trade, which is NOT true? a. Trade generates jobs in both export and import sectors of an economy. b. The gains from open trade are always greater than the losses. c. Open trade and investment does create winners and losers. d. Trade does not influence culture. e. Trade is the two-way flow of exports and imports of goods and services.

The Multilateral Investment Guarantee Agency performs which of the following functions? a. Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members b.Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies c.Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets d. Provides political risk coverage for private investments made in developing countries e. Works on issues related to foreign investment disputes

The most recent device(s) that enables greatest ease in portability and accessibility of information is (are) the _____. a. magazines b. newspapers c. Internet d. smart phones e. computer

The only way workers in industrialized countries can compete with their counterparts in the developing world will be through: a. increased use of the cost leadership strategy. b. increased diversity within the organization. c. increased empowerment of employees. d. increased productivity by using technologically- intensive manufacturing technologies. e. increased flat organization structure.

Trade expansion has been a leading factor in global integration, especially since the early _____. a. 1650s b. 1760s c. 1890s d. 1970s e. 2000s

When doing business in _____, it is important to understand that potential customers want to develop a personal relationship before doing business with foreign executives. Dinner exchanges and lunch meetings provide a good time for executives to get to know one another better. Dinners most often occur in the late evening, at 9 or 10pm. a. China b. Japan c. Korea d. Latin America e. Arab countries

When the various regional integration blocs are analyzed from an economic geography perspective, they fall under three general categories - regional blocs close to major world markets, remote regions with large local markets, or _____. a. urban regions with small local markets b. urban regions with large local markets c. urban regions with no local markets d. remote regions with small local markets e. remote regions with no local markets

Which of the following is NOT an objective of NAFTA? a. The expansion of the trade in goods and services b. The phased elimination of all trade barriers c. Protection of intellectual property rights d. The creation of a uniform currency in North America e. The creation of institutions to address potential problems

Which of the following is NOT true regarding globalization's "winners" and "losers?" a. Brazil has been flourishing due to gloablization. b.According to the World Bank, more than 400 million Chinese citizens have climbed out of poverty since the implementation of economic reform that started in their country. c. Those that suffer most from the effects of globalization are those countries that have not been able to seize the opportunities to participate in this process. d. Unfortunately, globalization only creates winners in industralized countries such as the United States. e. Efforts to hold back globalizaiton or technological progress are bound to fail.

Which of the following is NOT true regarding property rights? a. Protection of property rights has always been fundamental to market economies. b. Studies have shown that countries that have successfully adapted to globalization guarantee property rights. c. Less globalized countries offer less property rigiht protection. d. In economies in Central Asia and parts of Africa and the Middle East, property rights are well defined. e. Countries without property rights will most likely fall behind nations that guarantee property rights.

Which of the following was NOT one of the top exporting nations in 2012? a. China b. Germany c. Japan d. the United Kingdom e. Hong Kong

Which of the following would NOT be considered a factor of production? a. labor b. capital c. technology d. trade e. land

_______ refers to a fundamental global shift in which industrialized country-dependent developing economies begin to grow based on their own underlying economic strengths rather than the ups and downs of the world's richest countries.

DECOUPLING

46. ________ ; Greek for "rule by the people"; is a form of government in which all citizens have the right to vote.

Democracy

18. Countries that have been moving toward more open trade and free market policies are known as _____. a. African countries b. open-door economies c. industralized countries d. globalized economies e. emerging economies

23. Which of the following is NOT a main purpose of the IMF? a. Provide a forum for cooperation on international monetary problems b. Facilitate the sustainable growth of international trade c. Promote exchange rate stability d. Lend countries foreign exchange when needed e. Provide long-term low-interest social sector and infrastructure loans

41. An office uses printer paper made primarily of recycled paper. This is an example of a ______ policy. a. future sourcing b. global warming c. next-generation consumer hook d. digital divide e. sustainable development

43. Successive waves of globalization include characteristics such as the expansion of trade, the diffusion of technology, extensive migration, and _____. a. improvements in country infrastructure b. increased employee morale c. improved healthcare d. financial independence e. cross-fertilization of diverse cultures

64. The Everline Corporation is currently conducting its international communication business during a period of time that is experiencing rapid changes and challenges. Individuals and organizations are adjusting their lifestyles and methods of operations to fully utilize the modern communication technologies available in the marketplace. The time period Everline is currently operating under is best classed as which one of the following terms? a. Digital proliferation b. Modern communication era c. Digital divide d. Communication decade e. Digital era

69. All of the following are examples of counterarguments the Renna Company should consider before continuing with their stand of keeping their operations strictly within the borders of the United States except which one? a. Global expansion affords a strong potential for costs of both product production and product purchase to decrease. b. Life expectancy may increase for members of the population within the nations involved in globalization due to the increased quality of life. c. Globalization contributes to faster economic growth for the nations involved. d. The quality of life is most likely to improve for the citizens of the nations that are involved with globalization and trade. e. The wage levels of each nation may become stagnant and some workers may become displaced, having been replaced by less expensive foreign labor.

According to Hofstede, the United States is considered a(n) a. authoritarian country. b. collectivist country. c. high power distance country. d. feminine country. e. highly individualistic country.

Countries that have been moving toward more open trade and free market policies are known as _____. a. African countries b. open-door economies c. industralized countries d. globalized economies e. emerging market economies

McDonalds' consumer products are made primarily of renewable materials; some of the material comes from recycled fiber. The restaurants also utilize LED light fixtures. McDonald's is engaging in _____. a. future sourcing b. global warming c. next-generation consumer hook d. digital divide e. sustainable development

Of the following, which is NOT a characteristic of culture that is important for global companies to recognize? a. Culture is learned, not inherited. b. It is nearly impossible to change an entire country's culture. c. It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves. d. Companies' operations, chiefly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves. e. Culture can be imposed from home country to host country.

Of the following, which is NOT a cost of regional integration? a. Moving away from most-favored-nation status rule b. Disregarding cultural and social differences c. Losing some national sovereignty d. Reducing the powers of the national government e. Enhancing the flow of capital, labor, and technology

Of the following, which is NOT a primary or secondary source that can be used to learn about foreign countries' cultures? a. The U.S. Department of Commerce Commercial Guide b. The Economist's Intelligence Unit c. Culture Grams d. Craigshead's International Business, Travel and Relocation Guide to 84 Countries e. Forbes's Countries of the World

Of the following, which is NOT a primary reason why countries are now seeking to pursue regional integration at the expense of multilateral trade liberalization? a. Uncertainty surrounding the Doha Round b. Concern that the prospect of creating a truly open global economic system that benefits all countries may recede c. Some governments may initiate regional pacts d. Some countries are clamoring for bilateral or regional trade agreements to meet their specific agendas e. NAFTA is pushing the EU to pursue regional integration

Of the following, which is NOT true regarding the credit crisis? a. It affected farmers in Burkina Faso. b. It affected miners and steel workers in Ukraine. c. It affected assemble-line workers in Singapore. d. It affected white-collar workers at information technology firms in Ireland. e. It had an impact only on its country of origin- the United States.

Successive waves of globalization include characteristics such as the expansion of trade, the diffusion of technology, extensive migration, and _____. a. improvements in country infrastructure b. increased employee morale c. improved healthcare d. financial independence e.cross-fertilization of diverse cultures

The International Center for the Settlement of Investment Disputes performs which of the following functions? a.Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members b.Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies c.Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets d.Provides political risk coverage for private investments made in developing countries e.Works on issues related to foreign investment disputes

The U.S. government may require that apparel imported into the United States should use U.S. cotton, or use a certain amount of American labor. This is an example of a(n) _____. a. quantitative restrictions b. qualitative restrictions c. domestic content import d. voluntary export restriction e. domestic content provision

The United States, the European Union, and Australia imposed various trade sanctions on _____ because of that country's annexation of Crimea and military actin in east Ukraine. a. Poland b. Bulgaria c. Turkey d. Uzbekistan e. Russia

The concept of curtailing agricultural subsidies in developed economies was incorporated into the ninth round to trade negotiations called the _____. a."Dallas Round" b."Toronoto Round" c."Sparta Round" d."Kabul Round" e."Doha Round"

The newest member of the EU is _____. a. Bulgaria b. Malta c. Russia d. Turkey e. Croatia

The rules, enforcement mechanisms, and organizations that support market transactions are referred to as _____. a. industries b. companies c. businesses d. corporations e. institutions

The sale and purchase of goods and services across national borders is known as _____. a. exporting b. entrepreneurship c. angel investing d. importing e. trade

The union created when member countries of an economic and monetary union work closely with one another to arrive at common defense and foreign policies and behave as a single country is known as a(n) _____. a. customs union b. economic union c. free trade area d. common market e. political union

Three countries, X, Y, and Z are part of a member area where they have eliminated all barriers to trade such as tariffs, quotas, and non-tariff barriers like border restrictions, while at the same time keeping their own external tariffs against nonmembers. Such an area could be described as a(n) _____ area. a. regional b. spatial c. open trade d. embargo e. free trade

Which of the following is NOT a main purpose of the IMF? a. Provide a forum for cooperation on international monetary problems b. Facilitate the sustainable growth of international trade c. Promote exchange rate stability d. Lend countries foreign exchange when needed e.Provide long-term low-interest social sector and infrastructure loans

Which of the following is NOT one of the nine cultural variables researched by the GLOBE Project? a. Power distance b. Uncertainty avoidance c. Humane orientation d. Performance orientation e. Emotionality

________ are economic policy changes that promote private sector development, competitive markets, market-pricing, freer trade, and deregulation

ECONOMIC REFORMS

Countries that are implementing more open trade and free market policies are called ______

Emerging Market Economics

(CH. 3 #1) One could argue that regional and global integration are not complements, but substitutes to economic development of a particular region.

13. Text messaging will likely be an unimportant component of emerging economies; mobile phone usage because most people in these countries cannot read or write.

14. Critics argue that open trade and foreign direct investment always take jobs from workers in developing economies and transfer them to workers in advanced industrial countries which leave the workers in the developing country, out of work.

4. The "soft" qualities essential to globalization include openness, protectionism, accountability, connectivity, democracy, and centralization.

5. Security investments have little impact on the BOP's financial account.

6. The openness and proliferation of globalization and free trade rules can best be attributed to the interwar period between World War I and II.

8. For the World Trade Organization, increasing trade barriers has been one of the most simple ways to encourage trade and globalization.

A growing ASEAN concern is the economic ascendancy of Turkey, which as a major low-cost manufacturing center, has been one of the world's most attractive destinations for foreign direct investment.

A specific tariff describes a tax on imports levied as a constant percentage of the monetary value of one unit of the imported good.

A survey by the World Bank indicates that of the companies surveyed; unfortunately, only 30 percent have board-approved policies on environmental management indicating that corporate social responsibility practices have become an insignificant factor in determining where multinational corporations conduct business.

ASEAN, headquartered in New Delhi, India, was established in August 1967 by five founding members: India, Malaysia, the Philippines, Singapore, and Thailand.

According to the Big Mac Index, the dollar interest rate on U.S. and European bonds should be the same. Otherwise, there would be no arbitrage opportunities for investors.

According to the GLOBE Project, the lowest level of institutional collectivism existed for the Anglo group.

All 28 EU countries are permitted to use the euro as their currency.

An example of inflation is, if the amount of money in a country doubled, but the production of goods and services stayed the same, the price of all goods and services would decline by about half, assuming that other factors, such as external trade, were constant.

Because Turkey is a Muslim country, the consumption of alcoholic beverages is prohibited there.

Competitive industrial structures are unlikely to create innovative or dynamic firms willing to compete abroad. However, a monopolistic industry will foster innovative, cost efficient, aggressive firms that can adjust to changing economic conditions at home and will be well prepared to compete abroad.

Critics argue that open trade and foreign direct investment always take jobs from workers in developing economies and transfer them to workers in advanced industrial countries which leave the workers in the developing country, out of work.

Even though business is global, the credit crisis of 2008, started by an American investment bank, was limited to the American economy with fortunately no impact on the global economy.

For World Trade Organization, increasing trade barriers has been one of the most simplistic ways to encourage trade and globalization.

In flow of funds analysis, money moving into a country is a debit (negative sign), while money leaving the same country is a credit (plus sign).

Ironically, studies have shown that people who have lived and worked abroad are not particularly good sources of information about the cultures of various countries.

It is estimated that for every billion dollars worth of exports from the United States, 100,000 domestic jobs are created

Latin American negotiators will frequently engage in long periods of silence, or may have peripheral discussions among one another while ignoring foreign business people in the room.

One way international trade benefits consumers is by providing lower living standards.

Porter exemplifies China as a powerhouse for consumer electronics because of the quality and quantity of its engineers, and the ability and willingness of Chinese consumers to try out new electronic products that are perfected and later exported.

Power distance examines the extent to which societies tolerate risk or are risk averse.

Research studies find that culture is not learned; rather it is inherited.

So far globalization has made it possible for goods, services, and capital, to cross national borders but not technology and culture.

The "soft" qualities essential to globalization include openness, protectionism, accountability, connectivity, democracy, and centralization.

The EMU introduced the euro as a new currency to replace the currencies of the member countries in the Eurozone, which has since grown to 29 members.

The forex market consists of spot, forward, and discount markets.

The openness and proliferation of globalization and free trade rules can best be attributed to the interwar period between World War I and II.

The origins of the European Union (EU) can be traced to the creation of the North Atlantic Treaty Organization (NATO) in 1949.

The primary reason why language mistakes occur in global business is that organizations tend to use backward translation.

The use of jargon is especially useful when conducting business meetings with foreign personnel.

The world economy is quickly shifting away from countries with emerging economies.

When doing business in Japan, it is appropriate to look directly into the eyes of your hosts.

Whether the trade balance is positive (surplus) or negative (deficit) is important because it provides a measure of the financing needs of a particular country. Hence, the trade balance is more important than current account balance.

With business becoming increasingly global, its success, fortunately, depends only on the domestic environment.

1. Totalitarian government refers to a form of government in which total (all) citizenry have the right to vote.

False

13. Tax law is the body of law governing legally enforceable agreements between parties to engage in economic exchange.

False

14. In the United States, companies generally operate under a regime of caveat emptor, or "buyer beware."

False

3. Singapore historically has had a highly anti-business political system in a parliamentary model context, with one ruling party, in power since 1959.

False

4. Under Communist economic ideology, collectivistic rights give way in the extreme to individual rights.

False

6. China, with its strong individualistic, entrepreneurial, free-market spirit, historically has been viewed as the leading economically capitalistic economy in the world.

False

8. Fortunately for global businesses, economic risks are independent of political risks.

False

Balance of payments is generally split into two major components with major business implications: 1) the current account, and 2) the _____ account. a. balance b. financial c. services d. income e. trade

Financial

The _____ account consists of domestic-country-owned assets abroad, foreign-owned assets in the domestic country, and net financial derivatives. a. balance b. financial c. risk d. services e. trade

Financial

Which of the following is NOT a subaccount of the current account? a. Trade balance b. Services balance c. Income balance d. Financial account e. Net transfers

Financial Account

The system in which the country pegs its currency at a fixed rate to a major currency or basket of currencies, while the exchange rate fluctuates within a narrow margin around a central rate is called a(n) _____.

Fixed exchange rate system

29. Acquisitions of a foreign company, creation of new manufacturing or research facilities abroad, and expansion of an existing plant in a foreign country are all examples of _____. a. foreign direct investment b. a current balance account c. a risk premium d. a balance of transfers e. net financial derivatives

Foreign Direct Investment

____ encompasses purchases of fixed assets abroad used in the manufacture and sales of goods and services. a. Foreign direct investment b. A current balance account c. A risk premium d. A balance of transfers e. Net financial derivatives

Foreign direct investment

In the equation "F=S(1+P)," "F" is defined as what?

Forward Rate

The forex market consists of spot, forward, and _____ markets. a. exchange b. futures c. independent d. balance e. foreign

Futures

40. Of the following, which is NOT true about the Bretton Woods System? a. It was established in 1965. b. It established a global currency system based on a gold standard with the U.S. dollar pegged at a fixed rate of exchange to gold in an effort to control inflation. c. The IMF was established under the Bretton Woods Agreement. d. Eventually, major nations met to consider abandoning the Bretton Woods Agreement. e. Under the Smithsonian Agreement, the U.S. devalued the dollar against other countries' currencies.

It was established in 1965

_______ refers to lowering and/or removing trade barriers such as tariffs, quotas, and subsidies.

Liberalization of the trading system

33. In this system, a currency's value depends partly upon active government intervention in the foreign exchange market. a. independent floating exchange rate system b. WTO exchange rate system c. fixed exchange rate system d. managed floating exchange rate system e. government exchange rate system

London

A world economy in which the engines of growth could comprise several major industrialized and emerging market economies such as the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone is called ______.

MULTIPOLAR WORLD

(CH. 3 #55) NAFTA is a free-trade agreement among Canada, the United States, and _____.

Mexico

The financial account of the BOP consists of three subaccounts: 1) U.S.-owned assets abroad, 2) foreign-owned assets in the U.S., and 3) _____. a. a foreign direct investment b. a financial account c. a risk premium d. a balance of transfers e. net financial derivatives

Net Financial Derivatives

According to the balance of transfers, the "+" sign refers to _____ and the "-" sign refers to _____.

Payment of foreign aid loans; a payment going abroad as foreign aid

The Treaty of ______ in 1957 established the European Economic Community (EEC).

Rome

37. A British firm may need dollars to pay for U.S. imports. It can work with banks in London to exchange pounds for dollars to make this payment via electronic transfer. This is an example of a(n) _____ market. a. exchange b. futures c. independent d. balance e. spot

Spot

The _____ reconciles any imbalance between the current account and financial account to ensure that all debit and credit entries in the balance of payments statement sum to zero.

Statistical discrepancy

(CH.2 #1) The growth trends in China and India today illustrate the impact that international business has on blue-collar and white-collar workers in wealthy countries as relatively low-skill factory jobs as well as high-skill service profession jobs migrate overseas.

10. Countries that have successfully adapted to globalization realize that they cannot succeed without high-quality government management at home.

11. In communist and state-controlled economies like those in Central Asia property rights either do not exist or are not well defined which discourages domestic and foreign investors from making long-term commitments in these countries.

12. Globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by Transparency International.

15. There appears to be a clear connection between economic freedom and political freedom.

5. A sustainable decoupling process would eventually lead to a multi-polar world—a world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone.

7. As part of the World Bank's Strategic Framework, there are five focus areas that accommodate and facilitate the globalization process including its analytical and advisory role supporting national policies to strengthen free market institutions and infrastructure that has provided the potential for creating large gains from trade.

9. The foundations of the globalized business world are political—and so are the biggest threats to the system.

A sustainable decoupling process would eventually lead to a multi-polar world—a world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone.

According to the law of one price, identical goods should sell for the same price in different countries according to the local currencies.

As part of the World Bank's Strategic Framework, there are five focus areas that accommodate and facilitate the globalization process including its analytical and advisory role supporting national policies to strengthen free market institutions and infrastructure that has provided the potential for creating large gains from trade.

Because broadband prices have been falling, governments in emerging economies such as India and South Africa are facilitating the spread of broadband to rural towns and villages to provide instant access to market information and government programs to remote villagers which will enable policymakers to maximize the economic potential of remote communities and make globalization sustainable.

Both common markets and economic unions abolish restrictions on factor movements.

Countries that have successfully adapted to globalization realize that they cannot succeed without high-quality government management at home.

Developed countries often resort to managed trade for reasons of unethical labor practices and violation of basic human rights.

Factor price equalization theory, states that when factors are allowed to move freely among trading nations, efficiency increases, which leads to superior allocation of production of goods and services among countries.

Foreign direct investment (FDI) in a country brings funds and business culture from abroad, creates new well-paying jobs, introduces innovative technologies, and enhances the skills of domestic workers.

Generally, countries within trading blocs that have significantly lowered trade barriers have done better economically than others.

Guanxi refers to the relationship between subordinates and superiors. It denotes friendship among unequals involving unlimited exchanges of favors; thus, it is not based upon sentiment.

Hofstede's masculine vs. feminine dimension is the extent to which a society values traditionally masculine attributes (assertiveness, competition) or traditionally feminine ones (modesty, caring for others).

If the dollar was expected to appreciate in the 60-day forward market against the Japanese yen, it would be selling at a premium.

In 1969, frustrated by the lack of progress in LAFTA, Bolivia, Chile, Colombia, Ecuador, and Peru joined in creating the Andean Group, which aimed to create economic integration through reduced taxes, a common external tariff, and investment in the poorer industrial areas of their respective countries.

In 2003, ASEAN leaders agreed to establish an ASEAN Community based on three pillars: ASEAN Security Community; ASEAN Economic Community; and ASEAN Socio-Cultural Community.

In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed.

In communist and state-controlled economies like those in Central Asia property rights either do not exist or are not well defined which discourages domestic and foreign investors from making long-term commitments in these countries.

Key aspects of globalization include the elimination of barriers to trade and information technology.

Latin Americans are not as conscious about time as are North Americans.

Mercantilists believed that for a nation to become wealthy, that nation must export as much as possible and, in turn, import as little as possible.

More globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by Transparency International.

NAFTA is a comprehensive free-trade agreement among Canada, United States, and Mexico that addresses issues ranging from protection of workers' rights and the environment to phased reduction of tariff and non-tariff trade barriers, which were finally eliminated in 2009.

One factor affecting change in currency values is different price levels in different countries for the same goods and services.

One forecasting approach is to use a multiple regression model to estimate the relationship between changes in spot rates and fundamental factors.

Porter stresses the importance of domestic demand for goods and services when determining a nation's competitive advantage. When domestic demand remains high, the number of suppliers will also be high.

Remote regions with small local markets which Paul Collier calls the "bottom billion," are located in Central Asia; East, Central and West Africa; and the Pacific Islands.

Singapore, a regional center for global companies, continues to attract sizable amounts of foreign investment given its strategic location, world-class infrastructure, and productive workforce.

The International Monetary Fund (IMF) was established under the Bretton Woods Agreement to help ensure the stability of the international monetary and financial system.

The World Bank's World Development Report (WDR), titled "Reshaping Economic Geography," analyzes trade and regional economic integration through the lens of economic geography (i.e., market size, location, and openness to trade). The WDR concludes that positive changes within these three categories are essential for successful regional integration.

The ability of a firm to adjust to a culture different from its own is called acculturation.

The appropriate approach for countries interested in regional integration could include the following three fundamentals: start small, think global, and compensate the least fortunate.

The decoupling of world economic order and the move to a multipolar world helps explain why China is now the world's largest recipient of FDI.

The difference between forward and spot exchange rates reflects expectations by investors about future exchange rate movements.

The foundations of the globalized business world are political—and so are the biggest threats to the system.

The infant industry argument is part of the socio-economic category of managed trade.

The level of education held by people in foreign countries must be such that high-tech products can be accepted because the market knows how to use them.

The statistical discrepancy line reconciles any remaining imbalance to ensure that all debit and credit entries in the BOP statement sum to zero. This line captures statistical inconsistencies in the recording of the credit and debit entries as well as illegal trade.

Through various treaties (e.g, the Treaty of Rome, Maastricht Treaty, Copenhagen Treaty, Treaty of Nice, the Lisbon Treaty), the EU is deepening and strengthening its institutional linkages; it is hoped that this will enable the EU to act as one country that will effectively compete with the U.S.

Together, the dollar, euro, and yen account for around 60 percent of the world economy.

Under a preferential duties system, goods imported from a country outside the preferred group are subject to a higher tariff.

With uncertainty surrounding the outcome of the Doha Round of trade negotiations, countries (large and small) are clamoring for bilateral or regional trade agreements to meet their specific agendas causing economists to be concerned about the prospects of creating a truly open global economic system that benefits all countries.

Which of the following regarding potential problems with an IRP is NOT true? a. Evidence on IRP theories is mixed. b. Herd behavior can cause large purchases or sales of a particular currency that drive values beyond their normal bounds, resulting in problems such as currency crises. c. When interest rates change in the U.S., foreign interest rates should also change under the IRP. However, this may not happen. d. International investors may globally diversify their investments and behave passively toward arbitrage activities. e. There are no problems with IRP.

There are no problems with IRP

32. The three largest foreign exchange markets are in London, New York, and _____. a. Singapore b. Sydney c. Paris d. Tokyo e. San Francisco

Tokyo

The net of merchandise exports and merchandise imports is known as the _____.

Trade Balance

10. Rankings of countries throughout the world by potential political risks typically place Scandinavian and European countries such as Norway, Sweden, Switzerland, Luxembourg and Denmark near the top of the list, meaning that companies engaging in business in these countries face the least number of potential political risks.

True

11. The rise of ISIS has increased the political risk of Middle Eastern countries doing business with the United States.

True

12. In the world today, Islamic law, as followed in countries such as Iran and Saudi Arabia, is the primary example of theocratic law in operation.

True

15. Patent rights generally remain enforcable for 5-20 years, depending on the invention and the country.

True

2. The openness of democratic countries, and the protections such countries tend to generally provide for property rights and freedom of expression, usually make those countries more hospitable places to conduct global business than countries with totalitarian or semi-totalitarian political regimes.

True

5. Very little role for government exists in a purely capitalistic or "free market" economic system.

True

7. Restrictions on the transfer or exchange of a given foreign country's currency is an example of an economic risk.

True

9. Prolonged civil war in a politically unstable country is an example of a macropolitical risk.

True

Which of the following rose substantially in value against most other currencies as well as served as a reserve asset in many countries during the global economic and financial crises of 2008-2009?

U.S Dollar

Of the following, which is NOT listed in the text as a reason why currency values can change? a. Different price levels in different countries for the same goods and services b. Price imbalances due to mispricing c. Varying interest rates across countries d. Price imbalances due to differential inflation e. WTO mandates

WTO mandates

16. In this form of government, all citizens vote directly on matters affecting the community a. Athenian democracy b. Totalitarianism c. Representative democracy d. Egalitarian e. Communism

19. Of the following statements, which is NOT true about totalitarian governments? a. Totalitarian governments always have weak economies. b. A country run by a military dictatorship would be an example of a totalitarian government. c. Totalitarian governments rule without the support or consent of the citizens. d. An absolute monarchy is an example of a totalitarian government. e. The dictatorships that prevailed in Eastern Europe during the Cold War were examples of totalitarian governments.

20. Which is the largest nation in the world with a communist economic ideology? a. China b. Russia c. Vietnam d. India e. South Africa

25. _____ risks are the risks that political forces or problems in a given country will have a meaningful negative impact upon the conduct of business in that country. a. Political b. Environmental c. Individual d. Economic e. Financial

30. Which of the following is an example of corruption? a. Paying a bribe to a company executive in order to be awarded a contract. b. Damaging equipment in a factory to protest treatment of workers. c. Lobbying a congresswoman to vote for a tax cut for business. d. Urging union workers to go on strike in order to gain concessions. e. Raising the price on a product in order to make a profit

35. According to the text regarding a study of corporate bribery in developed countries conducted by Transparency International, which of the following nations had the most corporate bribery? a. Russia b. the United States c. Hong Kong d. Japan e. Singapore

36. The _____ market is an informal OTC market run by banks. a. forward b. spot c. futures d. independent e. balance

36. The practice of making illegal payments to government officials or engaging in blackmail, extortion, or other related activities to obtain government contracts or governmental approval for business activities is called _____ corruption. a. public b. private c. open d. closed e. external

37. The _____ is a U.S. law that prohibits U.S. companies from bribing or otherwise corrupting foreign government officials to win foreign government contracts or obtain other foreign government assistance for their businesses. a. Foreign Corrupt Practices Act b. Overseas Private Investment Act c. Terrorism Risk Insurance Act d. Antitrust Act e. United We Stand Act

39. A legal system based on a comprehensive listing of legal rules in sets of written codes of law is known as a _____ law legal system. a. civil b. common c. theocratic d. representative e. family

41. Of the following statements about common law legal systems, which is NOT true? a. They originated in China under the Ming Dynasty. b. A key advantage of common law systems is that judges have a fair amount of flexibility to change their interpretations of the law based on changing societal developments. c. One downside of the common law approach is that judges can often interpret the law as they see fit. d. It is a legal system where legislative bodies generally enact specific legal rules giving judges or courts considerable authority in interpreting these rules based on precedent and other factors. e. Some say that in common law countries it is often appointed judges who "make the law" rather than elected legislators.

42. What is dollarization? a. Using the dollar or some other foreign currency together with or instead of a domestic currency. b. Pegging the value of a foreign currency against the U.S. dollar. c. Pegging the value of a domestic currency against the market value of gold. d. Increasing the price of goods based on the supply of money. e. Maintaining an acceptable exchange rate based on government intervention.

Brittany and Brandi Britton recently took over the family business, Britton Manufacturing, after their father and company founder retired. The company manufactures the finest of bed linens and has grown to be recognized as sixth in the industry for sales. Britton Manufacturing's products have been produced and sold strictly within the continental United States until this point in time. Now, the new owners desire to change things and plan to begin exporting the company's products to England, France, Norway, Greece, Egypt, China, and Germany. Both Brittany and Brandi have graduated college with degrees in business and are looking forward to putting their educations to good use in growing the company. They realize there is much to learn and are looking forward to the challenges facing their international endeavor. They have projected an increase in sales by 15 million dollars in the first year as well as employment opportunities for an additional 500 workers in the U.S. 61. One of the international markets in which Britton Manufacturing plans to sell its products is China. All but which one of the following identifies a significant challenge facing the company in this international marketplace? a. The product laws of China are very similar to those found within the United States. b. China is considered a communist country in which the government owns or controls most of the factors of production. c. There is the possibility of the Chinese government confiscating the assets (the products) of Britton Manufacturing. d. For the most part, the government of China continues to maintain control of the unions within China. e. The market of China provides enormous opportunity for foreign companies because it has been emerging as one of the most economically powerful nations in the world in recent years.

Which of the following rose substantially in value against most other currencies as well as served as a reserve asset in many countries during the global economic and financial crises of 2008-2009? a. U.S. dollar b. British pound c. Chinese yuan d. Japanese yen e. Euro

A system of responsibility in which an authority, such as the government, is answerable for its actions refers to ________.

accountability

The ability of a firm to adjust to a culture different from its own is referred to as _________.

acculturation

The _________ variable refers to how rewards in a society are handed out.

achievement vs. ascription

______ are government organizations that create strong incentives for private investment and operate under a system of checks and balances.

adaptive institutions

National laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms are called _______.

antitrust laws

18. Of the following statements, which is NOT true about democracies? a. Democracy is Greek for "rule by the people." b. Most, if not all, democracies today are what are known as athenian democracies. c. Some democracies, such as Japan, Spain, and Great Britain, also have ceremonial monarchs d. Opposite democracies are totalitarian countries. e. Athenian democracy was developed around 500 BCE.

22. Which of the following is NOT true about socialism? a. Socialism involves an economic ideology in which the government or state plays a strong role in the economy and may own stakes in certain businesses. b. Countries with socialist economies aspire to be "classless." c. Socialistic economies tend to be somewhat more collectively than individualistically oriented. d. Many European countries have strong socialistic orientations. e. Socialistic countries put a high degree of importance upon worker and labor rights.

24. The net of investment income from abroad and investment payments to foreigners is called the _____. a. services balance b. income balance c. trade balance d. balance of transfers e. financial account

29. Which of the following is a U.S. government agency that sells political risk insurance to U.S. businesses operating in countries with which the U.S. has a bilateral investment treaty? a. Foreign Corrupt Corporation b. Overseas Private Investment Corporation c. Terrorism Risk Corporation d. Antitrust Corporation e. United Corporation

30. The _____ reconciles any imbalance between the current account and financial account to ensure that all debit and credit entries in the balance of payments statement sum to zero. a. foreign direct investment b. statistical discrepancy c. security investment d. risk premium e. balance of transfers

31. _____ corruption is business corruption involving other private businesses, individuals, or groups. a. Public b. Private c. Open d. Closed e. External

33. Paying "protection money" or giving sales kickbacks to an organized crime group would represent at example of _____ corruption. a. public b. private c. open d. closed e. external

34. A 2013 survey asked individuals whether they or someone in their household had paid a bribe in the past 12 months. The survey found the bribery rate in the United States was between ______. a. 1 and 4.9 percent b. 5 and 9.9 percent c. 10 and 14.9 percent d. 15 and 19.9 percent e. 20 and 24.9 percent

34. The system in which the country pegs its currency at a fixed rate to a major currency or basket of currencies, while the exchange rate fluctuates within a narrow margin around a central rate is called a(n) _____. a. spot market b. fixed exchange rate system c. independent floating exchange rate system d. managed floating exchange rate system e. foreign exchange market

38. In a civil law country, the real power lies with a. labor unions and public works employees. b. the legislative branch of government. c. the judiciary. d. corporations and banks. e. the executive branch of government.

40. A legal system where legislative bodies generally enact specific legal rules giving judges or courts considerable authority in interpreting these rules based on precedent and other factors is called a _____ law legal system. a. civil b. common c. theocratic d. representative e. family

63. Britton Manufacturing faces many laws and regulations that will impact the company while it conducts business on foreign soil. Which one of the following is least likely to be of concern to Britton in the international marketplace? a. Contract Law b. U. S. Labor Laws c. Tax Law d. Product Safety Laws e. Dispute Settlement Law

_______ refers to the amount of data and other information that can be transferred in a second via the internet

bandwidth

17. Most, if not all, democracies today are what are known as _____ democracies. a. athenian b. totalitarianism c. representative d. egalitarian e. communism

28. Which of the following laws provides for (after a certain deductible) U.S. government insurance coverage for the risk of a U.S. business or property being attacked by a "foreign person or foreign interest?" a. Foreign Corrupt Practices Act b. Overseas Private Investment Act c. Terrorism Risk Insurance Act d. Antitrust Act e. United We Stand Act

42. A party wishing to sell a given piece of commercial real estate to another party would enter into a real estate agreement with the other party. This is an example of which type of law? a. Tax b. Common c. Contract d. Theocratic e. Criminal

44. "Coca-Cola," the Nike "swoosh" logo, and McDonald's "golden arches" are examples of _____. a. intellectual property b. patents c. trademarks d. generalized trademarks e. contracts

62. Entering foreign marketplaces poses many challenges to companies like Britton Manufacturing. Which one of the following would Britton Manufacturing least expect to be a challenge in its international business expansion? a. The potential for the company's executives to be kidnapped and held for ransom while on foreign soil b. The constant fluctuation of foreign currencies in relation to the U.S. dollar c. The economic downturn in the United States resulting in many experienced workers being unemployed or underemployed d. The instability and volatility of some foreign governments around the world e. The potential for terrorist activity within certain foreign nations

65. In dealing with such a varied number of customers from virtually all major points in the world, the Rochester Corporation is subjected to many risks. Which one of the following would not be considered an economic risk Rochester potentially faces in its global dealings? a. Lack of consumer interest in the company's products b. The devaluation of foreign currency c. Confiscation of a company shipping vessel by pirates d. Currency conversion restrictions e. Potential for hyper-inflation to occur

Which of the following is NOT true about the current account balance? a. It is the sum of the trade, services, income, and net transfers balance. b. China, France, Japan, and Singapore have consistently had current account surpluses over recent years. c. If foreign capital will not be available to finance the U.S. current account deficit, it can be predicted that the dollar will become stronger. d. The United States has had large account deficits in recent years. e. Countries with current account surpluses generally finance countries with current account deficits.

_________ are government organizations that create strong incentives for private investment and operate under a system of checks and balances.

capital markets

______ refers to an external shock or development that could drastically change or hasten the course of economic development.

chance

51. The practice of companies acting in a manner which secretly thwarts competition amongst themselves is known as _______.

collusion

A ______ (or single) market is formed when member countries of a customs union remove all barriers to allow the movement of capital and labor within the customs union.

common

The ability of one country that has an absolute advantage in the production of two or more goods (or services) to produce one of them relatively more efficiently than the other refers to ______.

comparative advantage

50. Antitrust laws are designed to promote "fair ______" among businesses.

competition

55. A(n) _______ is the exclusive legal right that authors, playwrights, publishers, artists, composers, performers, photographers, and other creators have to publish and disseminate their work as they see fit.

Agreement in which an exporter of goods or services to another country commits to import goods or services of corresponding value from that country is called ______.

countertrade

________ refers to learned behavior; a way of life for one group of people living in a single, related and independent community.

culture

A group of free trade member countries that have adopted a common external tariff with nonmember countries refers to ______.

customs union

27. Unlawful acts of violence threatening the physical safety of others is called _____. a. blackmail b. extortion c. economic risk d. terrorism e. corruption

39. In the forward market, the selling of a currency at a spot rate that is more than the forward rate is called _____. a. gaming the exchange rate b. cheating the bid-ask spread c. forward rate speculation d. selling at a premium e. selling at a discount

45. The words "aspirin," "escalator," and "zipper" are examples of _____. a. intellectual property b. patents c. trademarks d. generalized trademarks e. contracts

66. The Rochester Corporation has three products that were created by its employees. These products have received patents from both the United States and twenty foreign nations. All three products are currently exported to all of the company's customers. Which one of the following does not reflect guidelines or rules governing these patents? a. The inventor has exclusive rights to the product for a certain period of time b. Patent rights remain enforceable for 5-20 years depending upon the invention and the country involved c. Patents have an expiration date set some time in the future depending on the invention d. Modifications to the product by others are allowed after one year and with government consent e. Patents offer inventors limited legal monopoly rights

The perceived economic gap between countries or people with easy access to digital and information technology (and its benefits) and those with very limited access, or none at all refers to the ________.

digital divide

The period of transformation that adjusts lifestyles to make the Internet and wireless technologies a part of everyday life refers to the ______.

digital era

Regulations requiring that a certain percentage of the value of import be sourced domestically refers to _______.

domestic content provision

21. _____ involves an economic ideology in which the government or state plays a strong role in the economy and may own stakes in certain businesses. a. Totalitarianism b. Democracy c. Communism d. Capitalism e. Socialism

23. Which of the following is NOT true about capitalism? a. Capitalism refers to an economic system where businesses are privately owned with a strong individualistic profit orientation. b. Very little role for government exists in a purely capitalistic or "free market" economic system. c. Individual gains and losses of wealth can be very large. d. Individual incentives are at the core of capitalistic economic ideology. e. Passage of the Patient Protection and Affordable Care Act marked the United States' movement away from capitalism.

26. A country's potential nationalization of companies in the automobile industry would represent a(n) _____ risk. a. marketing b. environmental c. individual d. macropolitical e. micropolitical

32. A recent survey found this nation to be the most dangerous in the world. a. Croatia b. Saudi Arabia c. China d. North Korea e. Somalia

43. Laws to promote "fair competition" among businesses are known as _____ laws. a. tax b. common c. contract d. theocratic e. antitrust

The Rochester Corporation is a multinational import-export firm with headquarters in the New York, USA. It currently has thirteen offices located on foreign soil and plans to open seven more by the end of the year. Rochester is quite proud of the fact that it reached over four billion dollars in revenue last year. The officers of the corporation are expecting to net over six billion per year with the projected expansion. The Rochester Corporation considers it is a veteran when it comes to dealing with foreign governments and nations. The company maintains strict guidelines for employees and will only hire those who have expatriate experience of at least three years. The owners of Rochester attribute the company's continued success to the experience and knowledge of its employees. 64. If the Rochester Corporation experienced unresolved legal problems with one of its customers located in a foreign country, all of the following except which one would be a potential way to remedy the problem? a. Engage in arbitration b. Have the court system use dispute settlement law to reach a resolution to the problem c. Use the services of a mediator or an arbitrator d. Bring about litigation in the reigning court of law e. Obtain an executive order from the U.S. Attorney General's office

According to the income balance, the "+" sign refers to _____ and the "-" sign refers to _____. a. when foreigners use services in a country; when foreign services are used b. when foreign services are used; when foreign services are used c. incoming dollars; merchandise imports d. merchandise imports; incoming dollars e. earnings from overseas investment; payments are sent overseas

earnings from overseas investment; payments are sent overseas

A(n) ________ is formed when members of a common market agree to implement common social programs and coordinated macroeconomic policies that would lead to the creation of a single regional currency and a regional apex central bank.

economic and monetary union

The study of principles that govern the efficient spatial allocation of economic resources and the resulting consequences refers to _____.

economic geography

Power distance is the cultural dimension that refers to ______ (equality) versus authority.

egalitarianism

______ refers to a negative tariff or tax aimed at boosting exports.

export subsidy

When the value of ______ exceeds the value of ______, this refers to trade surplus.

exports; imports

A(n) ________ is an area in which two or more countries agree to eliminate all barriers to trade such as tariffs, quotas, and non-tariff barriers like border restrictions, while at the same time keeping their own external tariffs (within WTO guidelines) against nonmembers.

free-trade area

(CH. 2 #55) The _______ objective is to sacrifice some economic efficiency for the greater good of the country in terms of national security, protection of critical industries, and international commerce.

geopolitical

The socio-economic reform process of eliminating trade, investment, cultural, information technology, and political barriers across countries, which in turn could lead to increased economic growth and geo-political integration and interdependence among nations of the world refers to _______.

globalization

The Chinese philosophy that denotes friendship among unequals involving unlimited exchanges of favors; thus, it is not based upon sentiment is referred to as "_____".

guanxi

_______ refers to regulations that limit the amount or number of units of products that can be imported to a country.

import quotas

According to the trade balance, the "+" sign refers to _____ and the "-" sign refers to _____. a. when foreigners use services in a country; when foreign services are used b. when foreign services are used; when foreign services are used c. incoming dollars coming in when merchandise is exported; dollars that leave the country to pay for imports d. merchandise imports; incoming dollars e. earnings from overseas investment; payments are sent overseas

incoming dollars coming in when merchandise is exported; dollars that leave the country to pay for imports

The rules, enforcement mechanisms, and organizations that support market transactions are called ______.

institutions

The international financial environment in which exchange rates and international payments for goods and services are conducted refers to _________.

international monetary system

48. A political risk that only affects a certain industry or set of firms in a given country is called a ______ risk.

micropolitical

52. A situation where there is only a single seller of a product in an industry and there are very high barriers to enter this industry is called a(n) _______.

monopoly

The extent to which a society expresses itself emotionally is defined by Trompenaars as ________variable

neutral vs. emotional

Time _______is the extent to which a society emphasizes short-run or long-run time horizons.

orientation

A(n) ________ union is created when member countries of an economic and monetary union work closely with one another to arrive at common defense and foreign policies and behave as a single country.

political

Implementation of a multitude of economic and/or political steps by member states to increase their global competitiveness, including preferential trade access refers to _______.

regional integration

Uncertainty avoidance examines the extent to which societies tolerate ________.

risk

53. Caveat venditor, or "______ beware," involves placing the burden of product safety on manufacturers rather than on consumers.

seller

The process of allowing efficient geographic distribution of business activities within and among countries refers to _______.

spatial transformations

The ______ variable refers to the degree to which a society compartmentalizes roles.

specific vs. diffuse

Mercantilism refers to a theory of international trade that supports the premise that a nation could only gain from trade if it had a trade ______.

surplus

Economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially or economically is called ______.

sustainable development

The two-way flow of exports and imports of goods is called ______.

trade

54. A(n) ________ is a distinctive phrase, name, word, picture, symbol or design, or combination of these, that identifies a given business' service or product, and is owned by said business.

trademark

49. Countries with little or no tax ______ are known as tax haven countries.

transparency

______ is a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism.

transparency

________ is Trompenaars's cultural variable that refers to the importance of rules versus relationships.

universalism vs particularism

According to the services balance, the "+" sign refers to _____ and the "-" sign refers to _____. a. when foreigners use services in a country; when foreign services are used b. when foreign services are used; when foreign services are used c. incoming dollars; merchandise imports d. merchandise imports; incoming dollars e. earnings from overseas investment; payments are sent overseas

when foreigners use services in a country; when foreign services are used

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