BUS 378 - Bus Gov & Society - Chap 4 Quiz

What U.S. company is the best example of using globalization to reduce the price of its products? Walmart. Macy's. K-Mart. Toys R Us.

Walmart

At the beginning of the 20th century, no country in the world had universal suffrage true false

true

Even small local businesses often compete with global companies from around the world. true flase

true

Microfinance refers to: Banks charging low fees for all business loans. Banks lending money to a very small number of businesses. Banks lending very small amounts of money to wealthy businesses. Banks lending money to low-income businesses.

Banks lending money to low-income businesses.

A free enterprise system refers to: rev: 02_11_2017_QC_CS_78567 Economic assets that are privately owned and exchanged in an open market. An index of economic freedom. Property ownership by a centralized government. A mix of privately owned and government controlled economic assets.

Economic assets that are privately owned and exchanged in an open market.

The purpose of the World Trade Organization is to: Decrease globalization and free trade. Eliminate barriers to free trade among nations Develop trading partnerships between rich and poor nations. Impose barriers to free trade among nations

Eliminate barriers to free trade among nations

A firm that has global operations has: Service but not manufacturing operations abroad. All of their manufacturing and service operations abroad. Manufacturing but not service operations abroad. Some or all of their manufacturing or service operations abroad.

Some or all of their manufacturing or service operations abroad.

An example of a Global Action Network, or GAN, is: The Kimberley Process Nongovernmental organizations. The Heritage Foundation. The World Trade Organization.

The Kimberley Process

The most important agreement which codifies human rights is the: The Universal Declaration of Human Rights. The U.S. Declaration of Independence. The American Civil Liberties Act. The Versailles Treaty.

The Universal Declaration of Human Rights.

Representation on the World Bank's board of directors is based on: The size of the member nation's economy. The size of the member nation's land mass. The size of the member nation's population. Equal representation of all member nations.

The size of the member nation's economy

Global market channels involve a firm producing goods in: A foreign country to sell at home. Their home country to sell at home. Their home country and exporting them to other countries A foreign country to sell abroad.

Their home country and exporting them to other countries

According to the United Nations, a feature of democracy is: Fair elections. An independent media. A government with power balanced among executive, legislative, and judicial branches. All of the above

all of the above

An example of an international financial and trade institution is: World Bank. International Monetary Fund. World Trade Organization. All of the above.

all of the above

The percentage of global wealth concentrated at the Bottom of the Pyramid is: 60 percent. 70 percent. 22 percent. 8 percent.

70 percent

A society where economic power is concentrated in the hands of government officials and political authorities is called: A social democracy. A political control system. A military dictatorship. A central state control system.

A central state control system.

Which statement(s) below are true about global income? Income is how much one earns in a day or a year. Income at the bottom of the pyramid varies from place to place. Around 400 billion people globally sit at the bottom of the pyramid. Both A and B, but not C.

Both A and B, but not C.

Experts attribute the growth of nongovernmental organizations to: The creation of global stock exchanges and enhanced currency transactions. The globalization of marketing and converging consumer preferences. Greater openness in many societies. All of the above.

Greater openness in many societies.

The term "race to the bottom" refers to: Efforts to deconstruct the assembly process in manufacturing industries. An old concept of globalization that is no longer relevant. Moving production jobs to the country with the lowest labor cost. Seeking to mine valuable minerals from the bottom of the ocean.

Moving production jobs to the country with the lowest labor cost.

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's: Weak health and safety regulations. High environmental standards. Strict law enforcement. Strong worker unions.

Weak health and safety regulations.

Assets that a person accumulates and owns at a certain point in time are called: Microfinance. Income. Wealth. Equity.

Wealth.

An individual who is a supporter of globalization would argue that it helps the developing world by: Giving entrepreneurs access to foreign investment funds to support economic development. Allowing new ideas and technological innovations to spread quickly. Providing people in developing countries with more jobs. All of the above.

all of the above

Critics of globalization support the spread of American ideals and culture throughout the rest of the world. true false

false

Although many firms conduct business across national boundaries, most global commerce is carried out by a small number of powerful firms. true false

true

Only manufacturing jobs are being lost through globalization. true false

false

Globalization is accepted worldwide and creates little controversy. true false

false

The primary goal of a "vulture fund" is to: Make a profit Provide countries with debt-relief. Increase global financial stability. Pay back loans in default.

Make a profit

The theory of comparative advantage states that: Countries that operate under a policy of isolationism have a comparative advantage. Productivity decreases when countries produce goods and services based on their natural resources. All countries start out on an equal playing field. Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Under the World Trade Organization's most-favored nation rule: Most-favored nations can oppose the dumping of goods by any nation in their home market. All import restrictions imposed by other nations on their goods are illegal unless a cultural waiver is issued.Incorrect Most-favored nations can impose heavy tariffs on other nations. All import restrictions are illegal unless proven scientifically.

All import restrictions are illegal unless proven scientifically.

Most nations in the world share similar political, social and economic beliefs. true false

false

The World Bank makes currency exchange easier for member countries so that they can participate in global trade. true false

false

According to the United Nations, how many transnational corporations operate in the global economy? 290,000. 104,000. 49,000. 900,000.

104,000

Which of the following statements accurately describe the practice of tax inversion? A company shifts their headquarters to a foreign country. A company decreases cash holdings in a foreign country. A company increases debt in their home country. Both A and C, but not B.

Both A and C, but not B.

A firm that would like to develop a global supply chain would: Purchase raw materials, components, or supplies from sellers in other countries. Manufacture components or supplies in other countries. Check products that were manufactured abroad for defects in their home country.

Purchase raw materials, components, or supplies from sellers in other countries.

The three strategies of globalization can be summarized using what three words? Export, locate, and purchase. Sell, make, and buy. Channels, operations, and chains. Ethics, import, and sell.

Sell, make, and buy.

Government has distinctive resources and competencies including: Knowledge of public policy. Ability to enforce the rules. Revenue from taxation. All of the above.

all of the above

The World Trade Organization conducts negotiations, called "cycles," on various topics, rotating its meetings among different cities. . true false

false

The importing of foreign goods by U.S. firms is called foreign direct investment. true false

false

The primary purpose of the International Monetary Fund is to: Exchange one currency for another. Consolidate the debt facing third world nations. Lend foreign currency to member countries. Collect the interest on loans made by the World Bank to third-world nations.

lend foreign currency to member countries

The Heritage Foundation scored which nation of the world among the most repressed in 2012? North Korea. Australia. Singapore. Hong Kong.

north korea

Globalization directly and indirectly influences the politics, environment, geopolitics, and economics of virtually every country in the world. true false

true

Productivity rises more quickly when countries produce goods and services for which they have a natural talent. true false

true

The main purpose of inversion is to reduce corporate income tax obligations. true false

true

The term sector refers to broad divisions of a whole true false

true

Under the World Trade Organization's most favored nation rule, member countries may not discriminate against foreign products for any reason. true false

true

Single-party rule by communist parties still remains in: Vietnam Thailand. Lithuania. Russia.

vietnam