Global Dimensions of Business Midterm

caste

A closed system in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime

quota

A direct restriction on the quantity of a good that may be imported

voluntary export restraint

A quota on trade that is imposed by the exporting country

free trade

A situation in which government does not attempt to influence what its citizens can buy from another country or what they can produce and sell to another country.

values

Abstract ideas about what a society believes to be good, right and desirable

HDI

Amartya Sen influenced the UN to develop the measurement

True

Arguments for government intervention are political and economic (T/F)

higher

As a result of US sugar subsides, between 2010 and 2013 the US sugar prices averaged between 64% and 92% ________ than the world price of sugar.

copyright

Authors, composers, playwrights, artists, and publishers are protected by

UNESCO

Based on the idea of establishing peace through moral and intellectual collaboration

consumers only willing to pay higher prices for brands like Apple; piracy in China reduces demand for electronics at competitive prices; Chinese do not want to shop at huge mega-stores

Best Buy had several challenges in China. (3)

False

Boeing plans to continue with current outsourcing partners for the foreseeable future. (T/F)

administrative policy

Bureaucratic rules designed to make it difficult for imports to enter a country.

DIAGRAM

Ch. 4 Diagram - culture norms

DIAGRAM

Ch. 6 Diagram - Porter's Diamond of Competitive Advantage

DIAGRAM

Ch. 6 Ethics Diagram

individualistic

Cultures where personal accomplishment and freedom are highly valued are generally considered to be

4%

Current annual tariff rate on global manufactured products as a percent value

individualism

David Hume, Adam Smith, and John Stuart Mill were champions of

violent revolutions

Early 20th century Communists believed that socialism could only be achieved through

Buddhism

Founded in the 6th century B.C. in what is now Nepal, it emphasizes a Noble Eightfold Path for transformation

land, labor, capital, energy

Four factors of production

French, Spanish, Mandarin (Chinese), Arabic

Four major languages important for business after English

True

Free trade is a positive sum game (T/F)

doesn't consider the cost of living

GNI per person is misleading because

Right-wing totalitarianism

Generally permits some individual economic freedom but restricts individual political freedom

fostered hard work and capitalism

German sociologist Max Weber argued the existence of a protestant "work ethic" which he suggested

subsidy

Government payment to a domestic producer

False

Governments always act in the national interest when they intervene in the economy (T/F)

developing nations

Greatest increases in FDI in recent years has been to

TaoBao's messaging system

Has been cited as a main reason for its edge over eBay in China

strata

Hierarchial social categories often based on family background, occupation, and income are referred to as

by acquiring a majority interest in an existing company

How did Best Buy enter China in 2006?

Japan

In 2010, China overtook _____ to become the 2nd largest economy in the world based on GDP

True

In Islamic law, the payment or receipt of interest is outlawed by the Koran (T/F)

Tribal totalitarianism

In Kenya, members of the Kikuyu have dominated the political system under this type of totalitarianism

supply and demand

In a market economy, the interaction of ______________ determines the quantity in which goods and services are produced

increase

In the first two decades of the WTO, did trade disputes between nations increase or decrease from disputes during GATT?

command

In this type of economy, the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold.

high

Job security, career patterns, retirement benefits, and a strong need for rules and regulations are characteristics of a ____ uncertainty avoidance culture.

ad valorem tariff

Levied as a proportion of the value of an imported good

False

Liability laws are generally least extensive in developed nations (T/F)

declining barriers to trade, technology change

Macro factors that underly the trend towards greater globalization

service = 79.4%, manufacturing = 19.5%, agriculture = 1.1%

Match most recent US labor % with correct sector. (service/ manufacturing/ agriculture) (1.1%, 79.4%, 19.5%)

United Nations

Membership in this global institution now numbers 193 countries committed to preserving peace through international cooperation and collective security

Marx

Modern socialists trace their roots to

Christianity

Monotheistic religion that grew out Judaism

Islam

Monotheistic religion that grew out of Judaism and Christianity, with the objective of life to fulfill the dictates of His will in the hope of admission to paradise

ethics

Moral principles that are used to guide and shape behavior

logistics

Most difficult for Beoing

Christianity

Most widely practiced religion in the world

False

Nonverbal cues, such as hand gestures, are universally accepted in all cultures (T/F)

mores

Norms that are more widely observed, have greater moral significance than other norms, and are central to the functioning of a society and to its social life

Confucianism

Not a religion, but a system of ethics, and was the official ethical system of China until the 1949 Communist revolution

Foreign Direct Investment

Occurs when a company invests resources in business activities outside its own country

International Court of Justice

Of the 6 principle organizations of the United Nations, which one is not located in New York?

inequalities in a culture

Power distance refers to

Moore's Law

Predicts that the power of microprocessor technology doubles and its cost of production fall in half every 18 months

OECD

Promotes policies that improve economic and social well-being of people around the world

political economy

Refers to the interdependence of political, economic, and legal systems in a country

folkways

Routine conventions of everyday life

local content requirement

Says that some specific fraction of a good must be produced domestically.

dumping

Selling goods in a foreign market for less than their cost of production or below their "fair" market value is

religion

Shared beliefs and rituals concerned with the realm of the sacred

norms

Social rules and guidelines that prescribe appropriate behavior in particular situations

high gas and oil prices

Supported Russia's healthy economic growth during much of the 2000s

trademark

Symbols and names that designate products are protected by

bribery of foreign officials

The Foreign Corrupt Practices Act prevents

Murabaha

The Islamic banking method whose contract is most widely used and easiest to implement

Mudarabah

The Islamic banking method whose contract is similar to a profit-sharing scheme

kyat

The Myanma currency

ethnocentricity

The belief in the superiority of ones own ethnic or cultural group.

economic risk

The global financial crisis that arose in 2008-2009 is an example of the dramatic nature of

civil law system

The legal system based on a detailed set of laws organized into codes

common law system

The legal system based on tradition, precedent, and custom is referred to as the

legal risk

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is a type of

absolute advantage

The main tenet of this trade theory is that a country can produce a product more efficiently than any other country.

mercantilism

The main tenet of this trade theory is that it is in a country's best interests to maintain a trade surplus, to export more than is imported.

Geert Hoftstede

The most famous study of how culture relates to values in the workplace was undertaken by

private action

The paying of protection money by domestic and foreign business in Russia was considered to be a

True

The percentage increase in US exports to the rest of the world during 2000-2011 (T/F)

Uruguay

The round that established the WTO

privatization

The sale of state-owned to private-investors, such as what happened in Britain in the 1970s and 1980s is a process known as

globalization

The shift towards a more integrated and interdependent world economy

political system

The system of government in a country is referred to as its

culture

The system of values and norms that are shared among a group of people and that when taken together constitute a design for living

cross-cultural literacy

The understanding of how cultural differences across and within nations can affect the way business is practiced

Confucian

The values of long-term versus short-term orientation are derived from _________ teachings.

Hinduism

The world's oldest major religion, its founding is not linked to a particular person, nor does it have an officially sanctioned sacred book

False

There has never been a time when the majority of the world's population lived under Communist rule. (T/F)

Smoot-Hawley

This act erected enormous barriers to trade and forced a global tariff war, which threw the world further into the great depression.

Porter's national diamond of competitive advantage

This explanation of international success suggests there are 4 broad attributes that help shape the environment.

G2O

This global institution compromises the financial ministers and central bank governors of the largest economies in the world, plus the EU and the European Central Bank

World Trade Organization (WTO)

This global institution is responsible for administering the terms of the general agreement on tariffs and trade

World Bank

This global institution was established in 1944 to promote economic development

IMF

This global institution was established to maintain order in the world monetary matters

patent

This grants an inventor exclusive rights to his/her invention or process

deregulation

This involves removing legal restrictions to the free play of markets

GINI

This is a measure of income distribution

specific tariff

This is levied as a fixed charge for each unit of a good imported.

product-life cycle theory

This theory helps to explain that production becomes more international as the product matures.

new trade theory

This theory suggests that trade increases the supply of goods available while decreasing costs due to economies of scale, and that in industries where total output required to achieve economies of scale represents a large proportion of global output, there may only be a few competitors.

Theocratic totalitarianism

This type of totalitarianism is found in states where political power is monopolized by a party, group, or individual that rules by religious principles

Communist totalitarianism

This version of collectivism advocates that socialism can be achieved only through a totalitarian dictatorship

Mexico

To what country are some US candy producers moving?

gross national income (GNI)

Total annual income by residents of a country is measured as

stock of FDI

Total cumulative value of foreign direct investment referred to as

Introduction of containerization

Transportation costs have declined thanks to the

black economy

Unrecorded cash transactions and barters are considered part of the

risks, benefits, costs

What are the three components in the "Overall Attractiveness" of a country for investment?

life expectancy at birth, educational attainment, the sufficiency of average incomes to meet basic needs for life

What are the three measure considered in HDI?

totalitarian state run by the military

What is a junta?

Burma

What is the other name for Myanmar?

signals to other adopters that the nation will treat the convention's rules as part of its law

What is the significance of a nation adopting the United Nations Convention on Contracts for the International Sale of Goods (CIGS)?

economy reform begets democracy

What underlies the fairly permissive attitude that many Western countries have adopted regarding human rights violations in China?

1947

When did India gain independence from Britain?

late 1970s

When did the People's Republic of China open to foreign investments?

mixed economy

When the US government purchased 80% of AIG, the action was characteristics of a

China

Which of the following has the largest share of world exports?

protecting foreign governments

Which of the following is NOT an argument for government intervention in trade?

universal suffrage for all citizens

Which of the following is not a safeguard of representative democracy?

Smith

Which of the following philosophers coined the phrase "the invisible hand" that promotes the good of the nation while serving its own interest?

indulgence versus restraint

Which of the following was most recently added of the cultural dimensions?

market economy

Which one is considered to be a requirement for innovation and entrepreneurship

Samuelson

Which theorist is credited with the statement: Being able to purchase groceries 20% cheaper at Wal-Mart (due to international trade) does not necessarily make up for the wage losses (in America)?

mercantilism

Which trade theory is associated with being a "zero-sum game"?

market for industrial goods

Which type of market is typically more global?

manufacturing

Which were the first activities that companies outsourced?

Nobel Peace Prize winner

Who is Aung San Suu Kyi?

President of Myanmar

Who is Thein Sein?

Hecksher-Ohlin

Who is best known for factor endowment?

sell more in countries where it outsources, use best expertise available

Why does Boeing outsource its aircraft manufacturing?

it is weakly enforced

Why doesn't the Paris Convention for the Protection of Industrial Property eliminate the theft of intellectual property?

populations are too large

Why is pure democracy impractical?