IB 303: Midterm

Which of the following will facilitate a country's decision to expose its economy to international trade?

Adopting the contracts for the international sales of goods (CIGS)

Which of the following correctly explains one reason why Nigeria remains an impoverished nation, in spite of having an abundance of natural resources, particularly oil?

An abundance of political corruption

"Greater uniformity replaces diversity" is supported by which claim when referring to global markets?

As competitive companies move to various countries, they use their brand names, products, and marketing strategies from other markets, which create uniformity across markets.

Which of the following best exemplifies ethnocentrism?

Bryan feels that his culture is superior to that of his multicultural coworkers.

The four most dominant religions in the world are __________.

Christianity, Islam, Hinduism, and Buddhism

A country is dealing with high inflation rates and high government debt. The country's businesses are starting to fail. This country is facing __________ risk.

Economic

Which of the following policies are designed to influence outward FDI?

Foreign risk insurance, capital assistance, tax incentives, and political pressure

A company believes that its only social responsibility is to increase profits, so long as it stays within the rules of law. What approach to ethics does this company use?

Friedman doctrine

Whose theory examined all the determinants of culture, and established a single model for comparing countries?

Hofestede

Determinants of managerial ethical behavior include all of the following except __________.

Income level

An ethics ombudsperson is typically responsible for what?

Investigating and resolving ethics complaints

Which one of the following is not an advantage of foreign direct investment?

Investors who put too much money into foreign accounts can cause their home country to suffer economically.

With close to 1 billion believers, __________ is the second largest of the world's major religions.

Islam

For western pharmaceutical companies, the attraction of outsourcing drug manufacturing to India is what?

Lower costs

Which of the following is detrimental to an ethical business setting?

Operating in cultures that score high on masculinity and power-distance measures

What is the main reason for the trend of greater globalization?

Technological change, particularly in communication, information processing, and transportation

What is the key factor driving the trend of increased globalization?

The changing technology allows for faster communication, information dispensation, and transportation.

Which of the following options fails to accurately describe current trends in international trade today?

The volume of cross-border trade is decreasing more rapidly than global output.

Vernon's product life-cycle theory was centered on the idea that for most of the 20th century, a majority of the globe's products originated from U.S. companies and originally sold in the __________ market.

U.S.

Of the following, which one is considered ethical?

Undertaking social investments in host countries

A U.S.-based company allows its managers to make payments to expedite government formalities. However, the company does not allow managers to do this in countries where it is considered unethical. This is the straw man approach of __________.

cultural relativism

An alleged example of __________ occurred when two of Country X's textile manufacturers were accused of selling textile products in Country Y's market below companies' costs of production.

dumping

Dell, a computer company, is able to save money and produce a quality product by manufacturing parts in various countries around the world. This is an example of:

globalization of production

Country X's government supports its citizens having complete freedom in their economic and political pursuits; Country X's ideology is "private entrepreneurship over public entrepreneurship." In this situation, it can be said that Country X most likely practices __________.

individualism

A cell phone company would like to export cell phones to Thailand, but the Thai government stipulated that 15% of the phone's components must be produced in Thailand. This stipulation is an example of __________.

local content requirements

The three broad types of economic systems are __________.

market, command, mixed

Car manufacturing companies market vehicle models in countries based on specific factors they've considered, such as demographics, cultural values, income levels, local color preferences, fuel costs, and traffic. This consideration demonstrates that __________.

markets vary from country to country

Since the 16th and 17th centuries, countries have worked to increase exports and decrease imports. This is called __________.

mercantilism

If a country wants to improve its attractiveness as a place for doing business and as an investment site, it should __________.

move towards a market-based system

When nation A trades with nation B, economists consider them better off because __________.

nations can consume more due to increased resources

The term "Factor endowments" refers to the extent to which a country is endowed with __________.

resources, such as land, labor, and capital

The Parker ballpoint pen company thought that, in Spanish, the word "embarazar" meant "to embarrass," when, in fact, it meant "to impregnate." So, their ballpoint pen advertisement in Mexico that was supposed to have read, "It won't leak in your pocket and embarrass you," actually meant, "It won't leak in your pocket and make you pregnant." This mistake could have been avoided if __________.

the company had learned the local language

The increasing income gap between skilled and unskilled labor in developed countries, such as Canada or the United States, is a result of __________.

the labor market increasing the demand for skilled workers, which lowers demand, and as a result, the pay for unskilled workers