Chapter 4

The Kimberley Process was developed by a global action network to solve which social problem? Multiple choice question. Overpriced gem stones Conflict diamonds Civil war in Africa Marketing of poor quality diamonds

Conflict diamonds

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

The Kimberley Process.

A strategy of acquiring or merging with a foreign firm in order to reduce corporate tax obligations at home is called _____. Multiple choice question. churning sandbagging inversion injunction

inversion

True or false: A firm can only implement a single globalization strategy at any given time. True false question. True False

False

Microfinance refers to banks: Multiple Choice Lending money to a very small number of businesses. Lending money to low-income businesses. Lending very small amounts of money to wealthy businesses. Charging low fees for all business loans.

Lending money to low-income businesses.

Vulture funds are most likely to harm which type of country? Multiple choice question. Heavily indebted Industrialized Developed Small but wealthy

Heavily indebted

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

A central state control system.

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

All of these answers are correct.

An example of an international financial and trade institution is: Multiple Choice World Bank. International Monetary Fund. World Trade Organization. All of these answers are correct.

All of these answers are correct.

How did Intel eliminate conflict minerals from their supply chain? Multiple Choice Entirely through their own internal processes. The U.S. government stepped in to eliminate the conflict minerals. By collaborating with most suppliers in the chain including smelters, processors, and traders. Intel has not eliminated conflict minerals from their supply chain.

By collaborating with most suppliers in the chain including smelters, processors, and traders.

Match the globalization strategy on the left with its correct description on the right. Drag and drop application. Global market channels Global operations Global supply chains

Global market channels, matches, A firm first builds a successful business in its home country and then exports its products or services to buyers in other country. Global operations, matches, A firm establishes manufacturing plants or service functions abroad. Global supply chains, matches, A firm subcontracts manufacturing to suppliers located abroad.

Correctly identify the features of a central state control economic system. (Check all that apply.) Multiple select question. Government ownership Private ownership Most markets are illegal Voluntary exchange of assets

Government ownership Most markets are illegal

What benefits have microfinance lenders realized? (Check all that apply.) Multiple select question. Helped millions of people. Developed a global trend in micro loans. Helped a handful of people. Increased profits.

Helped millions of people. Developed a global trend in micro loans. Increased profits.

In a democracy, ruling power is typically split between which branches of government? (Check all that apply.) Multiple select question. Judicial Consumer affairs Legislative Executive

Judicial Legislative Executive

Correctly identify how political and economic freedoms are related. (Check all that apply.) Multiple select question. The more markets are closed, the greater the opportunity people have for political freedom. Open economic markets often give people more resources to successfully participate in politics. The more control people gain over government decisions, the more likely they will increase their economic freedom. The less influence people have over government, the greater the chance for improved economic freedom.

Open economic markets often give people more resources to successfully participate in politics. The more control people gain over government decisions, the more likely they will increase their economic freedom.

A firm that would like to develop a global supply chain would: Multiple Choice Manufacture components or supplies in other countries. Sell raw materials, components, or supplies produced at home abroad. Purchase raw materials, components, or supplies from sellers 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.

How do recipients benefit from microfinance? (Check all that apply.) Multiple select question. Jumbo loans can be secured without collateral. Small loans help farmers manage their land. Micro loans can be secured without collateral. Small loans help entrepreneurs grow their businesses.

Small loans help farmers manage their land. Micro loans can be secured without collateral. Small loans help entrepreneurs grow their businesses.

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

Their home country and exporting them to other countries.

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

Vietnam.

How do vulture funds take advantage of weak and indebted companies? (Check all that apply.) Multiple select question. Vulture funds buy the defaulted debt at a discount. Vulture funds sue the company and demand repayment of loans with interest. Vulture funds sue the company and demand repayment of loans without interest. Vulture funds pay off corporate debt and demand favors in return.

Vulture funds buy the defaulted debt at a discount. Vulture funds sue the company and demand repayment of loans with interest.

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

Weak health and safety regulations.

If a company wanted to file a complaint about a global trade issue, which organization would they contact? Multiple choice question. foreign country's government directly International Monetary Fund World Bank World Trade Organization

World Trade Organization

According to the textbook, JP Morgan Chase (a bank) is a transnational organization because it _____. Multiple choice question. controls 80 percent of banking assets in China operates only outside its home country of the United States operates only in its home country of the United States controls banking assets in over 60 countries

controls banking assets in over 60 countries

When developed nations extend monetary aid to indebted countries, this is called _____. Multiple choice question. microfinance foreign direct investment debt relief civil society

debt relief

According to the case, U.S. legislation passed in 2010 required companies to Multiple Choice source coltan only from conflict-free zones. disclose if coltan in their products had come from the Congo or adjoining countries. Correct substitute tungsten for coltan in all products. certify all products as "conflict free."

disclose if coltan in their products had come from the Congo or adjoining countries.

When a firm relocates its operations specifically to avoid raising wages, this is called _____. Multiple choice question. the bottom of the pyramid the race to the top productivity the race to the bottom

the race to the bottom

Assets accumulated up to a point in time are called ______. Multiple choice question. wealth income tax income inequality the global wealth pyramid

wealth

As globalization has expanded, the number of organizations related to which sector of society has grown dramatically to deal with related social issues? Multiple choice question. Civil society Regulators Businesses Government

Civil society

Drag and drop the goals of the sectors within the Kimberley Process against the corresponding sectors. Drag and drop application. Civil society Civil society drop zone empty. Business Business drop zone empty. Government

Civil society, matches, Protecting consumers from inadvertently supporting civil war Business, matches, Preserving the reputation of diamonds as a romantic symbol Government, matches, Protecting legitimate diamond businesses

Why would a firm be interested in selling their products to people at the bottom of the pyramid? (Check all that apply.) Multiple select question. Collectively the market is vast. Individuals at this level have high wealth. People at this level are often willing to pay a "poverty premium." It is cheaper to produce goods for poor people.

Collectively the market is vast. People at this level are often willing to pay a "poverty premium."

According to the United Nations, this multinational enterprise had the largest amount of foreign assets in 2016. Multiple choice question. Volkswagen Group General Electric Royal Dutch/Shell ExxonMobil

Royal Dutch/Shell

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

Sell, make, and buy.

What benefits do global customers at the bottom of the pyramid enjoy? (Check all that apply.) Multiple select question. Employment opportunities are expanded. Taxes are significantly reduced. Social development is increased. Immediate needs are satisfied.

Social development is increased. Employment opportunities are expanded. Immediate needs are satisfied.

What was the primary reason China adopted a free enterprise market system? Multiple choice question. To prevent the Chinese economy from growing too rapidly To expand government control over assets To increase economic development To create new opportunities for foreign investors

To increase economic development

True or false: The United States took action to require disclosure of the source of tantalum used in products through the Dodd-Frank Act. True false question. True False

True

How is the theory of comparative advantage used to improve productivity? (Check all that apply.) Multiple select question. Generalization Doing what one does best Free trade Specialization

Doing what one does best Free trade Specialization

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

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

Democracy is accurately described by which of these features? (Check all that apply.) Multiple select question. Centralized government power Fair elections Freedom to express political views Freedom of religion

Fair elections Freedom to express political views Freedom of religion

True or false: Intel worked to eliminate all minerals sourced from the DRC, according to the case Intel and Conflict Minerals. True false question. True False

False

Match the international organization (in the left column) with its primary function (in the right column). Drag and drop application. World Bank International Monetary Fund World Trade Organization

World Bank, matches, Provides economic development loans to members International Monetary Fund, matches, Lends foreign currency to members World Trade Organization, matches, Establishes international trade rules

Government has distinctive resources and competencies including: Multiple Choice Knowledge of public policy. Ability to enforce the rules. Revenue from taxation. All of these answers are correct.

All of these answers are correct.

The term globalization can be accurately defined by which statement(s)? (Check all that apply.) Multiple select question. As a process, it is an ongoing series of interrelated events. It refers to buying, selling, or producing goods in a single country. It is a current international business trend with no lasting impact. It involves the increasing movement of products and capital across national borders.

As a process, it is an ongoing series of interrelated events. It involves the increasing movement of products and capital across national borders.

Identify the political and economic systems used today in China. Multiple choice question. Democracy and central state control Authoritarianism and free enterprise Democracy and free enterprise Authoritarianism and central state control

Authoritarianism and free enterprise

Match each level of the global wealth pyramid (in the left column) with the individual asset typically associated with that level (in the right column). Drag and drop application. Base of the pyramid Middle Class High wealth Top of the Pyramid

Base of the pyramid, matches, work tools Middle Class, matches, some home equity High wealth, matches, home ownership Top of the Pyramid, matches, more than $1,000,000 in overall assets

Which of the following sectors wanted to preserve their reputation and attempted to distance themselves from human rights abuses associated with conflict minerals? Multiple Choice Business Correct Government Churches Civil society

Business

Which sector of society tends to disregard the long-term impacts of their actions? Multiple choice question. Nongovernmental organizations Business Civil society Government

Business

Match the sector (in the left column) with the appropriate interest (in the right column), according to the case Intel and Conflict Minerals. Drag and drop application. Business Business drop zone empty. Government Government drop zone empty. Civil society

Business, matches, Prevent damage to their reputation Government, matches, Protect their tax revenue and foreign exchange Civil society, matches, Prevent human rights abuses

Match the sector on the left with the strengths on the right that each sector brings to the task of eliminating conflict minerals from the electronics supply chain, according to the case Intel and Conflict Minerals. Drag and drop application. Business Business drop zone empty. Government Government drop zone empty. Civil society

Business, matches, Purchasing power Government, matches, Legal authority Civil society, matches, Local knowledge

Match the sector (in the left column) with the associated weakness (in the right column).. Drag and drop application. Business Business drop zone empty. Government Government drop zone empty. Civil society

Business, matches, Short-term focus Government, matches, Bureaucratic Civil society, matches, Few financial resources

Match each sector (in the left column) with its correct resource4 (in the right column). Drag and drop application. Business Business drop zone empty. Government Government drop zone empty. Civil Society

Business, matches, technical knowledge Government, matches, Policy knowledge Civil Society, matches, community knowledge

How do U.S. companies that use tax inversion save money? (Check all that apply.) Multiple select question. By decreasing debt in the home country. By loading up their U.S. subsidiary with debt. By storing more cash at home. By buying stock internally.

By loading up their U.S. subsidiary with debt. By buying stock internally.

Identify the true statements regarding the impacts of globalization _____. (Check all that apply.) Multiple select question. It leads to the spread of technology, culture, and politics. It has an indirect or direct influence over international politics. It exerts an influence on the economics of virtually every country in the world. It triggers a much less integrated world economy.

It leads to the spread of technology, culture, and politics. It has an indirect or direct influence over international politics. It exerts an influence on the economics of virtually every country in the world.

How does globalization benefit consumers? (Check all that apply.) Multiple select question. It often constrains technology. It tends to lower the price of goods. It generally stagnates the price of goods. It tends to increase economic productivity.

It tends to lower the price of goods. It tends to increase economic productivity.

When a business starts operations in another country, what is the cost to workers in the home country? (Check all that apply.) Multiple select question. Stronger labor standards Job insecurity Stagnant wages Lower wages

Job insecurity Stagnant wages Lower wages

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

Lend foreign currency to member countries.

At what level of the global wealth pyramid would $10,000 to $100,000 in individual assets fall? Multiple choice question. High wealth Top of the pyramid Middle class Base of the pyramid

Middle class

What does the term "conflict minerals" refer to? Multiple Choice Tungsten and tin sourced from mines that refuse to hire union labor. All gold and silver mined in Communist countries. Minerals used in electronics extracted from mines that finance warring militias. Correct Black metallic ore removed from the earth by environmentally destructive means.

Minerals used in electronics extracted from mines that finance warring militias.

The term "race to the bottom" refers to: Multiple Choice Seeking to mine valuable minerals from the bottom of the ocean. Moving production jobs to the country with the lowest labor cost. 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.

Income is defined by which of the following? Multiple choice question. Accumulated assets Accumulated debt Periodic earnings One-time gifts

Periodic earnings

What is one unintended consequence of the World Bank and the IMF loaning large amounts of money to developing nations? Multiple choice question. People's lives improved dramatically. Persistent poverty remained. The poor countries developed too quickly. Loans were paid off early and banks lost the interest payments.

Persistent poverty remained.