Global Economy - Smith Exam 1 Quizzes

Which of the following is the MOST accurate statement about culture?

Although most cultural variables are universal, the forms these variables take differ from culture to culture

Which of the following has MOST influenced consumers to demand access to foreign-made products?

Consumers have become more efficient in using media and technologies to compare prices worldwide.

Supporters of globalization assert that the process helps countries strengthen their sovereignty.

False

Which of the following is a true statement about China?

The Chinese government manipulates market activities for political purposes.

Ethnocentrism in international business refers to the ________.

belief that what works best at home should work best everywhere

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.

civil

A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution.

common

When divergent cultures come in contact, ________ occurs

cultural collision

In a country's balance of payments, the ________ tracks all trade activity in goods and services.

current account

A worrisome outcome of chronic inflation is that it tends to ________.

errode a countries currency

Uneven income distribution ________.

exists in every country

The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it.

freedom

The widening set of interdependent relationships among people from different parts of the world is known as ________.

globalization

The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its ________.

gross domestic product

In a country that emphasizes collectivism, ________.

he needs of society take precedence over individual freedoms

Expatriate managers located in cultures characterized by ________ have noticed that local employees are highly motivated by retirement programs

high future orientation

Organizing work differently to improve productivity will likely fail ______

if changes interfere with strongly held value systems

The Gini coefficient estimates a country's ________.

income inequality

________ is a general, sustained rise in prices measured against a standard level of purchasing power.

inflation

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail. Which of the following legal conventions does ION most likely have?

intellectual property right

Reebok pays a royalty to the German Soccer League to use the team's logo on t-shirts that it sells. Reebok and the German Soccer League most likely have a ________.

licensing agreement

In the Economic Freedom Index, ________ exhibit high economic freedom whereas ________ exhibit little to no economic freedom.

market; command

In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

mixed

In terms of international business, it is most accurate to say that ________.

most firms depend either on foreign markets and supplies or compete against companies that do

In a totalitarian political system, ________.

one agent monopolizes political power

In the United States, the unemployment rate indicates the ________.

percentage of unemployed workers seeking paid work relative to the total labor force

People generally prefer little consultation between superiors and subordinates in cultures where ________ is high.

power distance

Eileen, a manager at an international restaurant chain, wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S. dollars. Which of the following is Eileen most likely trying to determine?

purchasing power parity

Ellen, a U.S. citizen, worked for a U.S. firm in Germany for four years and was transferred back to the firm's home office in Chicago two months ago. Ellen feels significant dissatisfaction with her job and life in Chicago, which is most likely a result of ________.

reverse culture shock

Evaluating the importance of potential clients or partners by the way they dress is an example of using ________.

silent language

Harmon Clothing has a production facility located in Venezuela. Recently, Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government. Which type of political risk is Harmon most likely experiencing?

systemic

Which of the following BEST explains how a firm reduces risk by operating internationally?

taking advantage of business-cycle differences among countries

Although globalization may bring economic growth, critics nevertheless contend that ________

the inequality of gains puts some people in a relatively worse economic situation the growth is too fast

Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies

true

Research indicates that democracy is declining around the world and that totalitarian regimes are increasing

true

The ownership of foreign bonds is an example of a portfolio investment

true

Managers should be more precise in their directions to subordinates when ________

uncertainty avoidance is high

It is most accurate to say that within most nations' borders, people largely share such essential attributes as ________ and ________.

values; language

A multinational enterprise (MNE) is best defined as a firm ________.

with foreign direct investments

In a practical sense, the term political system is meant to signify the ________.

working government in a country