Global Competition and International Business Final

c. Matt, a prominent member of the top management of Elephas

Elephas Inc. is a steel rod manufacturing company that has customers, inventors, vendors, and competitors from all across the globe. Of the following business associates, who would fall into the category of internal stakeholders? a. Ace Globe Inc., a firm that supplies machinery to Elephasa b. Gamma Creators, a competing firm that produces similar quality steel rods c. Matt, a prominent member of the top management of Elephas d. the government of the home county of Elephas

c. the international market is much larger than the domestic market

Exporting is nearly always a way to increase the revenue and profit base of a company because: a. there is little competition in the international market b. foreign governments encourage imports from other countries c. the international market is much larger than the domestic market d. the international markets are less complex than their domestic counterparts

a. dumping

If Argonia exports vast quantities of cheap toys to Cadmia, selling them at below their cost of productions, it would constitute: a. dumping b. offshoring c. monopolism d. nearshoring e. subsidizing

b. abstract ideas about what a group believes to be good, right, and desirable

In social context, the term values is used to describe the: a. social rules and guidelines about the appropriate behavior in public b. abstract ideas about what a group believes to be good, right, and desirable c. political ascendancy of a country d. collective wealth of a society e. economic benefits that are inherent to a culture

a. pure command

In what type of economy are all business state owned, the rationale being that the government can then direct them to make investments that are in the best interest of the nation as a whole rather than in the interest of private individuals? a. pure command b. free market c. laissez-faire d. mixed e. deregulated

c. invest more in innovations

Due to a strong legal protection of property rights, business and individuals will: a. face a huge burden from excessive taxation b. run the risk of their profits being expropriated c. invest more in innovations d. move away from entrepreneurial activity e. face more corruption

d. countries where individual goals are given primacy over collective goals

In which countries are we likely to find free market economies? a. countries that have adopted communism as their political system b. countries where state-owned enterprises have a monopoly in certain industries c. countries where the government plans the goods and services produced d. countries where individual goals are given primacy over collective goals e. countries where the good of the

b. innovations and capabilities, and skills of the employees

Intech Incorporated, a multinational giant, runs a number of diversified business. Which of the following can be considered as an intellectual property of the firm? a. profits arising from the sale of agricultural crops b. innovations and capabilities, and skills of the employees c. income arising from renting land and buildings d. interest earned by lending capital to other firms e. investments made in raw materials and machinery

d. the attainment of fair and equitable distribution of economic goods and services

Justice theories primarily focus on: a. minimizing the amount of economic freedom permitted to each person b. minimizing the amount of political liberty permitted to each person c. protecting multinationals in case they violate fundamental human rights d. the attainment of fair and equitable distribution of economic goods and services

a. legal

MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. MedPlus is trying to avoid what type of risk? a. Legal b. political c. ethical d. ethnographic e. economic

d. power distance

Societies such as Malaysia, Mexico, and the Philippines that accept strong hierarchical boss-subordinate relationships tend to score high on Hofstede's ______ dimension. a. collectivism b. masculinity c. individualism d. power distance

b. produce the greatest good for the greatest number of people

The best decisions, from a utilitarian perspective, are those that: a. have grater social cost than benefits b. produce the greatest good for the greatest number of people c. maximize a firms profit d. maximize stockholders' wealth

d. tariff rate quota

The country of Argonia imposes an ad valorem tariff of 10 percent on 1 million tons of rice imports, after which an out-of-quota tariff of 80 percent is applied. Which of the following trade policy instruments is Argonia using? a. tariff ceiling b. local content requirement c. voluntary export restraint d. tariff rate quota

d. allows firms to base production at optimal locations outside of their home country

The lowering of trade and investment barriers: a. was not an agenda of the Uruguay Round b.protects domestic industries from foreign competition c. creates an unfavorable environment for foreign direct investment d. allows firms to base production at optimal locations outside their home country e. caused the Great Depression of the 1930s

c. natural resources from which everyone benefits but for which no one is specifically responsible

The term global commons refers to: a. common laws to be obeyed by companies involved in international business b. a group of nations that share similar ideologies on globalization c. natural resources from which everyone benefits but for which no one is specifically responsible d. social norms and values that are common across the globe

d. multinational corporations funding schools, universities, and hospitals in developing countries

Which of the following best exemplifies noblesse oblige? a. multinational corporations altering the laws of a host country to suit their businesses b. multinational corporations bribing poorly paid government officials in a foreign market c. multinational corporations gaining monopoly rights in developing countries in order to weaken the local competition d. multinational corporations funding schools, universities, and hospitals in developing countries

a. a firm dumping its chemical waste directly into an ocean

Which of the following best exemplifies the global tragedy of the commons? a. a firm dumping its chemical waste directly into an ocean b. a firm exploiting the weak employment standards in a host nation c. a firm exploiting the weak intellectual property rights in a developing nation d. a country denying its citizens basic human rights

c. committing financial fraud

Which of the following best exemplifies violation of mores? a. keeping a good friend waiting at a coffee shop b. eating with the inappropriate cutlery in a social gathering c. committing financial fraud d. failing to greet a person you know e. attending a business meeting in causal clothes

a. demand conditions

Which of the following components of Porter's diamond is particularly important in shaping the attributes of domestically made products and in creating pressures for innovation and quality? a. demand conditions b. supporting industries c. advance factor endowments d. basic factor endowments

c. the 19 member nations who use the euro as their currency

Which of the following compromises the euro zone? a. the 27 member nations of the European Union b. the member nations of the European Union and countries who have pegged their their currencies to the euro c. the 19 member nations who use the euro as their currency d. the 21 member nations that have their members in the European Parliament

c. United States

Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012? a. Thailand b. South Korea c. United States d. China e. Japan

c. failing to greet a person you know

Which of the following exemplifies violation of folkways best? a. committing financial fraud b. practicing cannibalism under the belief that it leads to superpowers c. failing to greet a person you know d. stealing an author's or an inventor's intellectual property e. murdering a business partner

c. the Friedman doctrine

Which of the following explicitly rejects the idea that business should undertake social expenditures beyond those mandated by the law and required for the efficient running of a business? a. Kantian ethics b. Marxism C. the Friedman doctrine d. the Sullivan principles

d. determining why a country achieves international success in a particular industry

Which of the following formed the crux of Porter's study of national competitive advantage? a. determining how pre-industrialization theories predict international trade patterns b. identifying the various stages of the life cycle of a product c. determining how trade barriers affect the prices of products in the international marker d. determining why a country achieves international success in a particular industry

a. domestic producers

Which of the following groups would benefit the most from receiving subsidies? a. domestic produces b. importers c. foreign competitors d. governments

c. European Parliament

Which of the following has 754 members of 2014, and is directly elected by the population of the member-states? a. European Council b. Court of Justice c. European Parliament d. European Commission

e. barriers to the free flow of goods, services and capital

Which of the following has been declining in the developing nations of the world such as China, India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil? a. industrialization b. the stock of foreign direct investment c. economic opportunities for international trade d. contribution towards the share of world output e. barriers to the free flow of goods, services, and capital

a. common market

Which of the following has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members? a. common market b. free trade area c. customs union d. command economy

c. the devastation of western Europe during two world wars and the desire for a lasting piece

Which of the following is a factor that resulted in the establishment of the European Union? a. the trade impasse following the oil crisis in the 1970s that occurred due to collusion among oil producing nations b. the rise of communism in Europe c. the devastation of western Europe during two world wars and the desire for a lasting piece d. the spectacular success of NAFTA

c. the rather vague definition of what constitutes as "dumping"

Which of the following is a loophole in antidumping laws that is being exploited by many countries to peruse protectionism? a. bilateral VERs which subvert antidumping laws b. the slackness of enforcement agencies c. the rather vague definition of what constitutes as "dumping" d. lack of consensus among member nations

b. tariffs

Which of the following is a trade policy instrument that the GATT and WTO have been most successful in limiting? a. subsidies b. tariffs c. import quotas d. voluntary export restraints

b. employing people to work at sweatshops

Which of the following is a violation of ethics according to Kantian philosophy? a. empowering people with fundamental rights and privileges b. employing people to work at sweatshops c. practicing superior standards of employment in the host country d. treating people as ends, rather than as means

e. Confucianism

Which of the following is an ethical system that has influenced behavior and shaped culture in parts of Asia and is not considered as a religion? a. Christianity b. Hinduism c. Islam d. Buddhism e. Confucianism

a. human development index

Which of the following is based on three measures: life expectancy at birth, educational attainment, and average incomes based on PPP estimates? a. human development index b. gross national income c. cash reserve ratio d. gross domestic product e. cost of living index

d. free trade area

Which of the following is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other, by pursuing independent external trade policy? a. location economy b. foreign exchange market c. command economy d. free trade area

b. maintaining a trade surplus

Which of the following is in a country's best interests, according to the main tenet of mercantilism? a. importing products from developing, rather than developed nations b. maintaining a trade surplus c. minimizing exports and maximizing exports d. importing products even if they are efficiently produced at home

b. auditing decisions to make sure they are consistent with the company's moral principles

Which of the following is most likely to be a function of ethics officers in firms? a. identifying the ethical principle followed by competing companies b. auditing decisions to make sure they are consistent with the company's moral principles c. informing external stakeholders about the moral intent of a decision d. ensuring that the economic interest of stakeholders is given prime importance

b. Orion Inc. sends its waste products for disposal to a developing nation because the pollution control laws in its home country are much more strict than those in the developing nation

Which of the following is most likely to be considered unethical? a. Galaxy Inc. ceased its operations in some developing nations on account of low employment standards in those countries b. Orion Inc. sends its waste products for disposal to a developing nation because the pollution control laws in its home country are much more strict than those in the developing nation c. Centaur Inc. had to close down a production plant as the local management there had employed child labor d. Unicorn Inc. sells its medicines at a lower price in less developed nations

c. removal of price controls

Which of the following is most likely to be implemented by a country as part of deregulation? a. prohibition of private enterprises from operating in certain sectors b. increased restrictions on foreign direct investment c. removal of price controls d. centrally planned economic system e. commitment toward communism

c. the increasing integration of the world economy

Which of the following is not a constraint on a firm's ability to disperse its productive activities to foreign countries? a. tariff barriers raising the costs of exporting products to a country b. antidumping policies limiting the ability of a firm to use aggressive pricing c. the increasing integration of the world economy d. quotas restricting the quantity of a good that can be imported into a country

a. protecting domestic jobs and industries from unfair foreign competition

Which of the following is the most common political argument for government intervention in international trade? a. protecting domestic jobs and industries from unfair foreign competition b. decreasing the pries of products in the domestic market c. protecting human rights d. protecting strategic trade policy

a. it is the supreme appeals court for the European Union

Which of the following is true of the Court of Justice? a. it is the supreme appeals court for the European Union law b. member countries cannot bring the commission or the council to this court c. the judges are required to act as representatives d. it compromises several judges from a few selected countries

a. it was formed by those western European countries that initially decided not to be part of the European Community

Which of the following is true of the European Free Trade Association? a. it was founded by those western European countries that initially decided not to be part of the European Community b. industrial goods were left out of the trade arrangement, each member being allowed to determine its own level of support c. the emphasis of EFTA has been on free trade in agricultural goods d. it imposes a common tariff, of 5 to 20 percent, on productions imported from outside

b. countries can enhance their political weight in the world by grouping their economies

Which of the following is true of the political case for regional economic integration? a. linking neighboring economies increases the potential for violent conflict b. countries can enhance their political weight in the world by grouping their economies c. free trade stimulates economic growth, which creates dynamic gains from trade d. those who have sought a united Europe has always had a desire to make another war in Europe imminent

b. countries open to international trade display higher growth rates than those that close their economies to trade

Which of the following is true of the relationship between trade and economic growth? a. free trade has historically benefited poor countries and hence trade barriers should be introduced to protect rich countries from exploitation b. countries open to international trade display higher growth rates than those that close their economies to trade c. the Leontief paradox notes that adopting an open economy and embracing free trade does not reward a nation higher economic growth d. free trade hampers economic growth and leads to lower living standards in the long run

c. GATT

Which of the following multilateral agreements was established under U.S. leadership in 1947, with the objective to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like a. NAFTA b. NATO c. GATT d. CAFTA

b. a nation that has a totalitarian political system

Which of the following nations is most likely to be unappealing as a place for doing business? a. a nation that enforces strong property rights b. a nation that has a totalitarian political system c. a nation that has a democratic political institution d. a nation that has a strong legal system e. a nation that has a market-based economic system

d. placing its economic interest before its moral principles

Which of the following practices should be avoided by a company to ensure ethical decision making? a. protecting the fundamental rights of stakeholders b. auditing past decisions made in the company c. taking care of the interest of external stakeholders d. placing its economic interest before its moral principles

c. Andean Pact

Which of the following refers to a 1969 agreement among Bolivia, Chile, Ecuador, Columbia, and Peru to establish a customs union? a. CARICM b. ASEAN c. Andean Pact d. Mercosur

d. voulentary export restraint

Which of the following refers to a quota on trade imposed by the exporting country? a. quota rent b. tariff rate quota c. export embargo d. voluntary export restraint

a. CARICOM

Which of the following refers to an association of English-speaking Carrean states that are attempting to establish a custums union? a. CARICOM b. CAFTA c. CSME d. FTAA

d. ASEAN

Which of the following refers to an attempt to establish a free trade area between Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam? a. SAARC b. Maastrich Treaty c. APEC d. ASEAN

a. local content requirement

Which of the following requires that some specific fraction of a good must be produced domestically? a. local content requirement b. domestic sales requirement c. ad valorem portion requirement d. specific quota requirement

b. Buy America Act

Which of the following specifies that U.S. governments agencies must giver preference to U.S. products when putting contracts for equipment out to bid unless the foreign products have a significant price advantage? a. Export Administration Act b. Buy America Act c. Helms- Burton Act d. Hawley-Burton Act

b. as a result of globalization, a severe crisis in one region of the world can affect the entire globe

Which of the following statements is a general implication of globalization? a. globalization is inevitable b. as a result of globalization, a sever crisis in one region of the world can affect the entire globe c. globalization has no negative impacts on the economies of the developed world globalization has reduced the risks associated with global financial contagion e. from a purely economic perspective, globalization is all good

a. they promoted the abolition of apartheid laws

Which of the following statements is true about the Sullivan principles? a. they promoted the abolition of apartheid laws b. they were widely opposed by U.S. firms, such as General Motors, operating in South Africa c. western businesses that followed them were considered unethical d. they were against the introduction of democratic elections in South Africa

d. masculine

Assertiveness, materialism, and a lack of concern for others are considered ______ values by Hofstede. a. individualistic b. power distance c. collectivist d. masculine

a. higher unemployment in wealthy and advanced economies such as the United States

"Exporting jobs" to low-wage nations has contributed to: a. higher unemployment in wealthy advanced economies such as the United States b. higher living standards in those countries that "export" jobs c. an increase in the income levels in those nations that "export" the jobs d. reduced specialization in the production of goods and services e. lower standards of living in those countries to which the jobs are exported

a. cannot pay or charge interest

A major distinction between a conventional bank and an Islamic bank is that Islamic banks: a. cannot pay or charge interest b. are not subject to any form of law c. are supposed to refrain from making a profit through any source d. are allowed to charge higher interest rates on loans e. cannot accept private deposits

e. tribal totalitarianism

A totalitarian political system in which a party, group or individual that represents the interests of a particular ethnic group monopolizes political power is referred to as: a. right wing totalitarianism b. theocratic totalitarianism c. democratic totalitarianism d. communist totalitarianism e. tribal totalitarianism

d. individualism

According to Hofstede's value dimension, ______ refers to the tendency of people to look after themselves and their immediate family only and to neglect the needs of society? a. uncertainty avoidance b. masculinity c. power distance d. individualism

d. cost considerations

According to Vernon, which of the following influence the movement of the locus of global production from advanced countries to developing countries a. supporting industries b. firm structure c. domestic competition d. cost considerations

b. factor endowments

According to the Hecksher-Ohlin theory, the pattern of international trade is determined by differences in: a. labor productivity b. factor endowments c. management practices d. trade barriers

a. a country may dominate in the export of a good because it has firms that were among the first to produce that good

According to the new trade theory: a. a country may dominate in the export of a good because it has firms that were among the first to produce that good b. to ensure economic progress, countries should implement several trade barriers c. the ability to capture first-mover advantage is restricted in a world that disallows trade d. different goods use resources in different proportions and this leads to constant returns to specialization

d. over time, the United States switched from being an exporter of a product to an importer of a product

According to the product life-cycle theory, the locus of global production initially switched from the Untied States to other advanced nations and then from those nations to developing countries. Which of the following is most likely to be a consequence of these trends? a. developing nations fair to upgrade their skill levels to compete with advanced countries b. the wage rates in the United States decrease c. U.S. imports become less capital-intensive than U.S. exports d. over time, the United States switches from being an exporter of a product to an importer of a product

d. assertiveness

All of the following are value dimensions proposed by Hofstede except: a. power distance b. uncertainty avoidance c. individualism d. assertiveness

b. the native immoralist

An American manager of a multinational company who is working in one of the company's production plants located in the country of Cadmia employs child labor at the manufacturing unit her is in charge of. On being criticized as unethical, the manger argues that such actions are ethically defensible because everyone in Cadmia is doing it. Which of the following star men approaches to ethics is most likely demonstrated by the manager? a. the righteous moralist b. the native immoralist c. utilitarianism d. ethnocentrism

a. speed money

Brian Wing Inc., has won the bid to build airplanes for a host country government. However, the execution of the contract has been delayed due to certain unproductive, bureaucratic procedures in the less developed nation. In order to legally overcome this problem, Brian Wig Inc. could resort to the payment of: a. speed money b. custom duties c. excise taxes d. expatriation taxes

a. Islamic banking methods

Mudarabah and the murabaha are: a. Islamic banking methods b. banking practices that are prohibited by Islam c. laws governimg international trade and commerce in Islamic countries d. laws limiting the right to private property e. Aribic words for interest and profit, respectively

d. the United States developed a very large proportion of the world's new products for most of the twentieth century and sold them first in the U.S. market.

On which of the following observations was Raymond Vernon's product life-cycle theory based? a. the high cost of U.S. labor gave U.S. firms an incentive to develop cost-saving process innovations b. the United States has long been substantial exporter of agricultural goods, reflecting in part its unusual abundance of arable land c. the wealth and size of the U.S. market gave U.S. firms a strong incentive to develop new customer products d. the United States developed a very large proportion of the world's new products for most of the twentieth century and sold them first in the U.S. market

b. vigorous domestic rivalry

Porter, in his diamond model, suggested that there is a strong association between which of the following and the creation and persistence of competitive advantage in an industry? a. trade barriers b. vigorous domestic rivalry c. first mover advantage d. purchasing power parity

c. the concept of absolute advantage

Tamdia and Godize specialize in the production of machinery and agricultural products respectively. They are the best in their respective specializations. Tamdia trade machinery with Godize in exchange for agricultural products. Which of the following is illustrated by this form of trade between the two countries? a. theory of national competitive advantage b. mercantilism c. the concept of absolute advantage d. Heckshler-Ohlin theory

d. hire employees with strong personal ethics

The CEO of United Synergy Inc., a company in its embryonic stage, believes that unethical behavior will result in premature decline of the company. In order to ensure that the company starts operating in the most ethical manner, the CEO should: a. shun the concept of noblesse oblige b. base decisions solely on business variables such as cost, delivery, and product quality c. set high performance goals for all employees, regardless of market constraints d. hire employees with strong personal ethics

d. Maastrich Treaty

The European Community became the European Union in 1992 following the ratification of the: a. Treaty of Rome b. Lisbon Treaty c. Single European Act d. Maastrich Treaty

d. ensure a business receives the standard treatment that it ought to receive

The Foreign Corrupt Practices Act was subsequently amended to allow for speed money or grease payments, which are payments made to: a. influence foreign bureaucrats in the company's favor b. obtain exclusive preferential treatments in a foreign market c. secure contracts that would not otherwise be secured d. ensure a business receives that standard treatment it out to receive

b. Canada, Mexico, and the United States

The NAFTA was formed in 1994 between: a. Canada, Argentina, and Mexico b. Canada, Mexico, and the United States c. the United States, Brazil, and Argentina d. Uruguay, Columbia, and Costa Rica e. Columbia, Venezuela, and Brazil

d. significantly lowered the costs of shipping goods over long distances

The advent of containerization has: a. made the economies of the world's nation-states less intertwined b. made moving goods from one mode of transportation to another extremely labor-intensive c. increased cost of coordinating and controlling a global organization d. significantly lowered the cost of shipping goods over long distances e. slowed down the globalization of markets and production

c. CAFTA

The agreement of the member-states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States is known as the: a. CACM b. FTAA c. CAFTA d. CARICOM

a. Department of Commerce

The most comprehensive source of information on export opportunities for U.S. firms is the a. Department of Commerce b. Federal Trade Commission c. Bureau of Competition d. bank of New York

B) protect domestic industries from foreign competition

The motive behind the high tariffs imposed by nations on import of manufactured goods, prior to World War II, was to: A) promote the trade of services over the trade B) protect domestic industries from foreign competition C) safeguard patents, copyrights, and trademarks D) prevent the occurrence of the Great Depression

e. collectivism

The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on: a. capitalism b. democracy c. privatization d. individualism e. collectivism

a. what is ethical depends on one's cultural perspective

The practice of "gift giving" between the parties to a business negotiations is considered right and proper behavior in many Asian cultures. However, some Westerners view the practice as a form of bribery, and therefore unethical, particularly if the gifts are substantial. This reflects that: a. what is ethical depends on one's cultural perspective b. Asian cultures are more economically advanced c. Asian countries are still under the influence of totalitarianism d. there is unanimous agreement about accepted employment practices

b. identifying which stakeholders a decision would affect and in what ways

The process of ethical decision-making or ethical algorithm typical begins with: a. judging the ethics of the proposed strategic decision b. identifying which stakeholders a decision would affect and in what ways c. auditing a decision to check for its consistency with ethical principles d. managers establishing moral intent

c. privatization

The sale of state-owned enterprises to independent, nonpublic, investors is referred to as: a. nationalization b. public action c. privatization d. collectivism e. communalism

b. social democrats

Those who attempt to achieve the same ideologies as that of the communist without violent revolution and totalitarian dictator ship are: a. individuals b. social democrats c. aristocrats d. pure capitalist e. anarchists

c. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries

Three Torque Inc., a U.S.-based multinational company, allows its managers to make facilitating payments in host countries to expedite government formalities. However, in countries where payments are considered as unethical, the company restricts its managers from indulging in such activities. This behavior of the company illustrates the straw man approach of: a. cultural relativism b. ethnocentrism c. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries d. human beings have fundamental rights and privileges than transcend national boundaries and cultures

D) globalization of production

West Electronic Corporation sources goods and services for its electronics products from the different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the: A) dislocation of a developing nations economy B) regulation of the environment C) globalization of markets D) globalization of production

b. uncertainty avoidance

Which of the Hofstede variables would be most closely responsible for the existence of formal rules and procedures within a given culture? a. femininity b. uncertainty avoidance c. individualism d. masculinity

c. administrative trade policies

Which of the following are bureaucratic rules designed to make it difficult for imports to enter a country? a. public sector regulations b. voluntary export restraints c. administrative trade policies d. consumer relations

d. the European Union and the European Free Trade Association

Which of the following are significant trade blocs in Europe? a. the European Federation and European Trade Block b. the European Economic Community and the European Federation c. the European Federation and the European Trade Association d. the European Union and the European Free Trade Association

a. Bryan's belief in the superiority of his culture has resulted in conflicts with his colleagues from different cultures

Which of the following best exemplifies ethnocentrism? a. Bryan's belief in the superiority of his culture has resulted in conflicts with his colleagues from different countries b. Nicole is highly tolerant towards different cultures and is also keen on learning different languages c. Galaxy Inc. has been accused of using legal but unethical ways to gain access into markets of less developed countries d. Emilio is in an ethical dilemma as he has been given the responsibility of deciding whether or not to hire his under-qualified cousin e. Sarah believes that her opinions and interest are superior to that of her siblings

B) Chivalry, a U.S. based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian Market

Which of the following best exemplifies foreign direct investment? A) Samantha started an Italian restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Italy B) Chivalry, a U.S. based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian Market C) Delicate Love, a reputable florist company in Holland, exports tulips and roses throughout the globe D) Pure Pearls, a jewelry store in the United States, imports harvest pearls from Indonesia, Philippines, and Australia

d. it is more expensive to draw up contracts in a civil law system than a common law system

Which of the following statements is true about the differences between contacts in common law and civil law systems? a. contracts drafted under a civil law system tend to be more specific than those drafted under a civil law system b. contracts drafted under a common law system tend to be longer than those drafted under a civil law system c. resolving contract disputes tends to be less adversarial in common law systems than in civil law system d. it is more expensive to draw up contracts in a civil law system than in a common law system e. civil law systems have the advantage of greater flexibility and allow for judges to interpret a contract dispute in light of the prevailing situation but this feature is absent in common law systems

e. international business is conducted not just by large firms but also by medium-sized and small enterprises

Which of the following statements reflects the trend in the changing nature of multinational enterprises? a. the number of medium-sized and small multinationals is decreasing continuously b. the ranks of the world's largest 100 multinationals are dominated by firms from developing economies c. the internet is increasing the barriers that small firms face in building international sales d. global business activity is increasingly being dominated by large U.S. multinational corporations e. international business is conducted not just by large firms but also by medium-size and small enterprises

d. cultural relativism

Which of the following straw men approaches to business ethics is best summarized by the maxim "When in Rome, do as the Romans"? a. righteous moralist b. Sullivan principles c. Kantian ethics d. cultural relativism

c. the theory of comparative advantage

Which of the following suggests that trade is a positive-sum game in which all participating countries experience economic gains? a. Leonitef's paradox b. the Heckscher-Ohlin theory c. the theory of comparative advantage d. mercantilism

c. new trade

Which of the following theories began to emerge when economist pointed out that the ability of firms to attain economies of scale might have important implications for international trade? a. product life-cycle b. comparative advantage c. new trade d. absolute advantage

a. respecting fundamental human privileges

While making a business decision, a manager who believes in rights theories is most likely to focus on: a. respecting fundamental human privileges b. maximizing stockholders' wealth and profits c. weighing the associated social benefits, costs, and risks d. propagating home-country standards of ethics

e. the advances in communication, information processing, and transportation technologies

While the lowering of trade barriers made globalization of markers and productions a theoretical possibility, which of the following has made it a tangible reality? a. the increasing differences in the material culture the world over b. the decreasing significance of the World Trade Organization c. the increasing diversity in consumer tastes and preferences worldwide d. the rise of communism and the need for independent economies on a global scale e. the advances in communication, information processing, and transportation technologies

a. common law

which of the following legal systems is most likely to be based on tradition, precedent, and custom? a. common law b. universal law c. civil law d. monarchy law e. autocracy law