INT BUS
Priyansh grew up in India, where caste systems have become less prevalent. Which of the following statements is true about a caste system? A caste system is characterized by high social mobility. A caste system is an open system of stratification. In a caste system, social position is determined by individual performance. A caste system is a rigid form of social stratification.
A caste system is a rigid form of social stratification.
Who was the author of "The Wealth of Nations?" David Ricardo John Stuart Mill Adam Smith Karl Marx Mortimer Smith, Jr.
Adam Smith
The ________ benefits inefficient farmers and the politicians in the EU who rely on the farm vote, but not consumers in the European Union, who end up paying more for their foodstuffs. Commerce Department Common Agricultural Policy (CAP) Smoot-Hawley Act General Agreement on Tariffs and Trade (GATT)
Common Agricultural Policy (CAP)
Which of the following is a disadvantage of a high degree of managerial mobility between companies? stagnation of the economy decrease in entrepreneurship lack of loyalty and commitment to an individual company executives are not exposed to different ways of doing business It has been argued that the success of Japanese enterprises in the global economy has been based partly on which of the following? high degree of managerial mobility between companies compartmentalization of different functions within Japanese companies consolidation of self-managing work teams cooperation between a company and its suppliers on issues such as design, quality control, and inventory reduction
Cooperation between a company and its suppliers on issues such as design, quality control, and inventory reduction
Which regional trade bloc includes Kenya, Uganda, and Tanzania? DR-CAFTA EAC EFTA FTAA
EAC
________ draws on economic theory to construct sophisticated econometric models for predicting exchange rate movements. Technical analysis Fundamental analysis Efficient market theory Elliott wave analysis
Fundamental analysis
To achieve full economic union, the European Union introduced a common currency, the euro, controlled by a central EU bank. Although most member states have signed on, ________ remains an important holdout. NOTE - your textbook will say Great Britain/United Kingdom, depending on which edition. The UK left the EU in 2019, so cannot be a correct answer. You might have to consult Google to get the right answer. Italy Sweden Germany France
Sweden
Which of the following statements about globalization is NOT true? It benefits everyone equally and unconditionally. It hurts unskilled labor in developed nations the most It is a very controversial topic with many people protesting it. It improves global economic efficiency It is directly responsible for improvements in standards of living in places like China and India
It benefits everyone equally and unconditionally.
________ theory is also known as the market imperfections theory. Internalization Product life-cycle Perfect markets Random walk
Internalization
The ________ is often seen as the lender of last resort. International Development Organization World Bank International Monetary Fund (IMF) World Trade Organization TitleMax
International Monetary Fund (IMF)
Modern socialists trace their intellectual roots to _____, although socialist thought clearly predates this individual. John Stuart Mill Karl Marx Adam Smith Mortimer Smith Jr. David Ricardo
Karl Marx
Regional economic integration offers significant opportunities for businesses. Which of the following is one of these opportunities? Over time, price differentials across nations will decline in a single market. Markets that were formerly protected from foreign competition are increasingly open. The business environment within each grouping has become more competitive. There is a likely long-term improvement in the competitive position of many firms within the areas.
Markets that were formerly protected from foreign competition are increasingly open.
The ________ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to promote economic development. Justice League International Monetary Fund World Bank Illuminati Federal Reserve Banking System
World Bank
________ argues that a strategic trade policy aimed at establishing domestic firms in a dominant position in a global industry boosts national income at the expense of other countries. Adam Smith Milton Friedman David Ricardo Paul Krugman
Paul Krugman
When a rich country enters into a free trade agreement with a poor country, the poor country benefits more than the rich country. This is the concept behind Ricardo's theory. Paul Samuelson's critique. Porter's critique. Adam Smith's theory.
Paul Samuelson's critique.
________ are controls over the behavior of the MNE's local subsidiary. The most common of these are related to local content, exports, technology transfer, and local participation in top management. Subsidies Tax concessions Ownership restraints Performance requirements
Performance requirements
What organization was created in 1993/1994, during the Uruguay round of trade talks? International Trade Organization World Trade Organization International Trade Group World Trade Group Council of Ricks
World Trade Organization
________ can be seen as an attempt to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under global agreements. Regional economic integration Government intervention Foreign direct investment Unrestricted trade
Regional economic integration
Which of the following theories explains global trade in terms of the international differences in labor productivity? Smith's theory of absolute advantage Ricardo's theory of comparative advantage Heckscher-Ohlin theory product life-cycle theory
Ricardo's theory of comparative advantage
The basic objective of ASEAN is to foster freer trade among member countries and to achieve cooperation in their industrial policies. ASEAN can be found in which location? Central Asia Southeast Asia South America Sub-Saharan Africa
Southeast Asia
A pen costs £50 in Britain. An identical pen costs $70 in the United States when the exchange rate is £1 = $1.50. Which of the following is correct? Britain offers a better deal. The U.S. offers a better deal. The deal is the same in both countries. A trader can make money by buying the pen in Britain and selling it in the United States at $70.
The U.S. offers a better deal.
Which of the following is true about the economic risks of doing business in a country? Economic risks are independent of political risks. It is less costly to do business in relatively primitive or undeveloped economies. The inflation rate in a country is an indicator of the economic risks of doing business in a country. Countries with weaker property laws tend to have higher economic growth, and involve less risk.
The inflation rate in a country is an indicator of the economic risks of doing business in a country.
Free trade refers to a situation where goods and services are offered for free to the citizens by a government. firms that function in a country are not taxed on the profits that they generate. taxes are not imposed on goods that are produced and sold within a country. a government does not try to influence what its citizens can buy from global markets.
a government does not try to influence what its citizens can buy from global markets.
Which of the following is the most important vehicle currency by trade volume? euro British pound U.S. dollar yen
U.S. dollar
A lobbyist from California argues that the U.S. government needs to protect the U.S. semiconductor industry from foreign competition. She argues that semiconductors are now such important components of defense products that it would be dangerous to rely primarily on foreign producers for them. This is an example of ________ argument for government intervention. a political an economical an infant-industry argument an environmental
a political
Geert Hofstede added the dimension of indulgence to the World Values Survey to refer to a society that suppresses gratification of needs and regulates it by means of strict social norms. a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. the extent to which different cultures socialized women into tolerating uncertainty. attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors.
a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.
The Foreign Corrupt Practices Act was amended in order to include environmental guidelines. make the bribery of foreign public officials a criminal offense. outlaw grease payments. allow for "facilitating payments."
allow for "facilitating payments."
Porter argues that a nation's firms should adopt policies that promote strong competition within domestic markets. urge government to reduce investment in research. urge government to reduce investment in international competitors. adopt policies that weaken competition within domestic markets.
adopt policies that promote strong competition within domestic markets.
The government is considering placing additional taxes on foreign steel imports that are a proportion of the value of the imported steel. This is an example of an import quota. an ad valorem tariff. a subsidy tax. a specific tariff.
an ad valorem tariff.
The common law system is not as flexible as other systems. based on tradition, precedent, and custom. based on a detailed set of laws organized into codes. a lesser experience compared with premium law systems. open to giving judges the power only to apply the law.
based on tradition, precedent, and custom.
Foreign direct investment occurs when a firm invests resources in stocks and bonds in overseas markets imported products business activities outside its home country exported products
business activities outside its home country
When _____ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society." theocracy individualism totalitarianism collectivism
collectivism
According to the infant industry argument, many developing countries have a potential _____ in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries. tactical advantage absolute advantage comparative advantage competitive advantage
comparative advantage
One of the impediments to integration arises from the fact that economic integration aids a minority. concerns that too many multinational firms will lose investors. concerns over national sovereignty. the fact that a nation as a whole typically does not benefit.
concerns over national sovereignty.
The practice of "gift-giving" between the parties in a business negotiation is considered right and proper behavior in many Asian cultures, while some Westerners view the practice as a form of bribery. What is this an example of? a tragedy of the commons an ethical dilemma cultural relativism a veil of ignorance
cultural relativism
When a firm insures itself against foreign exchange risk, it is engaging in currency speculation. employing a lead strategy. employing a lag strategy engaging in hedging.
engaging in hedging.
The belief in the superiority of one's own culture is known as the convergence hypothesis. ethnocentrism. cross-cultural literacy. cultural relativism.
ethnocentrism.
Factor endowments refer to the extent to which a country has developed advanced facilities as technological infrastructure. positive industry structures and models that exist in a country or geographical region. extent of domestic rivalry that exists in a market or industry. extent to which a country is gifted with such resources as land, labor, and capital.
extent to which a country is gifted with such resources as land, labor, and capital.
A typical American value is an expectation that people have a right to live the way they want. Values are defined as norms that are central to the functioning of a society and to its social life. the social rules and guidelines that prescribe appropriate behavior in particular situations. ideas about what a group believes to be good, right, and desirable. the routine conventions of everyday life.
ideas about what a group believes to be good, right, and desirable.
In a(n) _____ society, the welfare of society is best served by letting people pursue their own economic self-interest. capitalist individualist totalitarian democratic theocratic
individualist
During the late 1980s and early 1990s, totalitarian governments collapsed and were replaced by democratically elected governments that were typically ________ than their predecessors had been. less committed to free market capitalism more committed to a planned economy more committed to free market capitalism less committed to privatization
more committed to free market capitalism
Diminishing returns to specialization occur when more units of resources are required to produce each additional unit. each additional unit is produced with lesser number of laborers. production possibility frontier appears as a rectangle. a nation's gross domestic product declines for a few years.
more units of resources are required to produce each additional unit.
The social rules and guidelines that prescribe appropriate behavior in a particular situation are called norms folkways morés values
norms
Five airlines control 90 percent of the aviation sector of a country. The aviation industry in the country would be an example of a(n) oligarchy. perfectly competitive market. monopoly. oligopoly.
oligopoly.
The term _____ refers to the values and norms that are shared among employees of an organization. multinational behavior environmental factors performance goals organizational culture
organizational culture
Host governments use a wide range of controls to restrict FDI in one way or another. The two most common are ________ and performance requirements. ownership restraints tax concessions low-interest loans subsidies
ownership restraints
The ________ view is that FDI has both benefits and costs. FDI can benefit a host country by bringing capital, skills, technology, and jobs, but those benefits come at a cost. conservative radical free market pragmatic nationalist
pragmatic nationalist
The ________ theory argues that such advanced nations as the United States have an incentive to develop consumer products and hence such nations tend to produce newer products. product life-cycle Ricardo new trade Heckscher-Ohlin
product life-cycle
The ________ suggests that given relatively efficient markets, the price of a "basket of goods" should be roughly equivalent in each country. theory of competitive advantage purchasing power parity theory theory of price inflation law of one price
purchasing power parity theory
In the case of command economies, deregulation involves detailed state planning. removing price controls. exercising tight control over foreign trade. encouraging state ownership of enterprises.
removing price controls.
What is the ultimate controlling authority within the EU because it has the power to turn legislation into law? the European Parliament the European Court of Justice the European Commission the European Council
the European Council
The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a ________ law system. traditional theocratic civil common
theocratic
Newly privatized entities often have little incentive to restructure their operations to become more efficient when foreign investment is permitted by the state. prices are set by the forces of demand and supply. they continue to receive subsidies from the state. they are faced with intense foreign competition.
they continue to receive subsidies from the state.
Systems that emphasize collectivism have a greater tendency to end up in totalitarian capitalism privatization democracy
totalitarian
Which of the following is a reason for the spread of democracy? new information and communication technologies increasing the state's ability to control access to uncensored information totalitarian regimes failing to deliver economic progress to the majority of their populations the economic advances of the past quarter century leading to increasingly poorer middle and working classes the unchallenged pressure of entrepreneurs and other business leaders for less accountable and closed governments
totalitarian regimes failing to deliver economic progress to the majority of their populations
Country A and Country B entered into a free trade agreement recently. After this, Country A started importing heavy machinery from Country B, which Country A had previously produced domestically at a higher cost. Which of the following has occurred in this scenario? trade deficit efficiency gain trade diversion trade creation
trade creation
When higher-cost external producers are replaced by lower-cost external producers within the free trade area, ________ occurs. trade creation trade deficit trade diversion trade distortion
trade creation
In the 1986 Uruguay Round, GATT negotiations extended global trading rules to cover intellectual property. foreign property. trade in services. franchise and license agreements.
trade in services.
Constant returns to specialization occurs when each additional unit is produced with larger number of laborers. units of resources required to produce a good remain stable regardless of the country's position on the production possibility frontier. the production possibility frontier is a convex curve. a nation's international output grows for a few years which adjusts the overall GDP.
units of resources required to produce a good remain stable regardless of the country's position on the production possibility frontier.
Which of the following exemplifies privatization? A country sells its postal services to a consortium of companies that runs it as a profit making venture without any state funding. A country enlists the services of Somers Consultancy, a global management consulting firm, to improve the profitability of the state-owned airlines company. A country reduces trade barriers, allowing individuals to engage in export and import. A country allows state-owned coal companies to sell coal to private parties.
A country sells its postal services to a consortium of companies that runs it as a profit making venture without any state funding.
Which of these is a characteristic of a pure command economy? The goods and services that a country produces are planned by consumers. All businesses are owned by the state. Prices are determined by market forces. There is free and fair competition between private producers.
All businesses are owned by the state.
Which of the following is true with respect to multinational firms? Because of their pivotal role in international trade, firms can and do exert a strong influence on government policy toward trade. Multinational firms generally try to encourage their government to resist the WTO and to keep constraints on trade among nations. Despite their pivotal role in international trade, firms do not exert a strong influence on government policy toward trade. Government policies ultimately have little direct impact on a multinational business.
Because of their pivotal role in international trade, firms can and do exert a strong influence on government policy toward trade.
Which of the following refers to a set of moral principles, or values, that are used to guide and shape behavior? Ethical system Caste system Class consciousness Class system
Ethical system
The emerging role of the ________ in competition policy suggests the EU is increasingly willing and able to intervene and impose conditions on companies proposing mergers and acquisitions. European Commission European Parliament Council of Europe European Court of Justice
European Commission
Which of the following is true about planned economies? In a planned economy, entrepreneurs have economic incentives that encourage innovation. In a planned economy, individuals benefit more from innovations than the state does. In a planned economy, the state owns all means of production. In a planned economy, market regulations reduce the risk of economic stagnation.
In a planned economy, the state owns all means of production.
Johan's company has made a greenfield investment. What does this mean? It collaborated with a firm in a foreign country. It established a new operation in a foreign country. It acquired an existing firm in a foreign country. It merged with an existing firm in a foreign country.
It established a new operation in a foreign country.
Hofstede's cultural dimensions theory uses which of the following metrics to measure *the preference for achievement and assertiveness* versus *cooperation and caring for the weak*? Uncertainty avoidance index (UAI) Individualism vs. collectivism (IDV) Long-term orientation vs. short-term orientation (LTO) Power distance index (PDI) Masculinity vs. femininity (MAS)
Masculinity vs. femininity (MAS)
In the reading, French farmers vandalized an under-construction branch of which international franchise in protest of American trade policies? Subway KFC Starbucks Dunkin' Donuts McDonald's
McDonald's
What principle or theory argues that it is in a country's best interests to maintain a trade surplus? Principle of mercantilism Theory of national competitive advantage Principle of absolute advantage New trade theory
Principle of mercantilism
Which of the following statements is true about the righteous moralist approach to ethics? The righteous moralist approach implicitly rejects the idea that universal notions of morality transcend different cultures. The righteous moralist approach is typically associated with managers from developed nations. The righteous moralist approach states that the only social responsibility of businesses is to increase profits. The righteous moralist approach states that an action is judged desirable if it leads to the best possible balance of good consequences over bad consequences.
The righteous moralist approach is typically associated with managers from developed nations.
The steady rise of regional economic integration has recently seen some retrenchment. What factor is considered to be primarily responsible for this drawback? The collapse of governments in the Middle East and North Africa Increasing globalization The rise of populist politics Increasing immigration
The rise of populist politics
Many of the national markets of Eastern Europe, Latin America, Africa, and Asia may still be underdeveloped, but they are potentially enormous. Which of the following is a risk to businesses moving into these regions? It is likely that communist dictatorships will return to these regions. These regions are likely to have consistent domestic economic growth and not be open to foreign investment. There is no guarantee that democracy will thrive in many of the world's newer democratic states. Businesses in emerging markets are frequently taken over by the states.
There is no guarantee that democracy will thrive in many of the world's newer democratic states.
Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because of which of the following? They are surrounded by their ordinary social context and supporting culture. They are psychologically and geographically closer to the parent company. They may be based in a culture that does not place the same value on ethical norms important in the manager's home country. They may be surrounded by local employees who have more rigorous ethical standards.
They may be based in a culture that does not place the same value on ethical norms important in the manager's home country.
Tariff barriers raise the costs of exporting products to a country (or of exporting partly finished products between countries). Which of the following is a likely consequence of these barriers? A firm may have to centralize all production activities in their home country. This may put a firm at a competitive disadvantage to indigenous competitors in that country. This may put a firm at a competitive advantage to domestic competitors. A firm may have to move all production facilities to another country, but thereby reducing their production costs.
This may put a firm at a competitive disadvantage to indigenous competitors in that country.
In which of the following situations would FDI deteriorate the current account of the host country's balance of payments? When the FDI is a substitute for goods or services imported previously When a foreign subsidiary imports a substantial number of its inputs from abroad When an MNE uses a foreign subsidiary to export goods & services to other countries When the indirect labor creation from the FDI is more than the direct labor creation
When a foreign subsidiary imports a substantial number of its inputs from abroad
When is a currency said to be externally convertible? When both residents and nonresidents can purchase unlimited amounts of a foreign currency. When neither residents nor nonresidents are allowed to convert it into a foreign currency. When only residents can convert it into a foreign currency. When only nonresidents can convert it into a foreign currency without any limitations.
When only nonresidents can convert it into a foreign currency without any limitations.
Most economists would probably argue that the best interests of international business are served by the government aggressively blocking trade. the government efforts to support certain domestic industries in a manner consistent with the recommendations of strategic trade policy. a laissez-faire stance. a free trade stance
a free trade stance
Opponents of globalization argue that falling trade barriers prevent the sale of agricultural products across international borders allow firms to move production to countries with low wages create jobs in wealthy countries reduce the global labor pool
allow firms to move production to countries with low wages
Ford was the first company to mass-produce cars in the United States. This gave Ford a first-mover advantage, which is a strategic advantage given to businesses that send manufacturing off shore. an economic and strategic advantage that accrues to early entrants into an industry. a comparative advantage to the company making the first million dollars in the industry. governmental incentives provided to companies that are losing money.
an economic and strategic advantage that accrues to early entrants into an industry.
An American executive of a multinational home-furnishings chain finds that one of the company's production units in Philippines employs children to work in its factories. However, most of the children employed at the factory are orphans who will be sold as forced labor or pushed into prostitution if they lose their jobs. The executive finds that all the available alternatives seem ethically unacceptable. In this example, the American executive faces the free-rider problem. the tragedy of the commons. a veil of ignorance. an ethical dilemma.
an ethical dilemma.
According to the findings of the World Values Survey as countries get richer, there seems to be a shift from survival values to well-being values. economic progress is accompanied by a shift in values away from individualism to collectivism. globalization has resulted in increasing divergence across cultures. as countries get richer, a shift occurs away from secular values to traditional values.
as countries get richer, there seems to be a shift from survival values to well-being values.
Which of the following factors contributed to the Great Depression of the 1930s? Anyone? Anyone? outsourcing of manufacturing units to developed nations problems in the U.S. subprime mortgage lending market artificial fixing of currency rate by China countries progressively raising trade barriers against each other
countries progressively raising trade barriers against each other
Innovation and entrepreneurial activity help increase economic activity by strengthening business infrastructure. providing more authority to government officials. creating new products and markets. eliminating state-run enterprises.
creating new products and markets.
The short-term movement of funds from one currency to another as an attempt to profit from shifts in exchange rates is called basic risk. spot exchange. currency speculation. carry trade.
currency speculation.
The EU began as a ________, which eliminates trade barriers between member countries and adopts a common external trade policy, but does not allow free movement of factors of production between member nations. free trade area common market political union customs union
customs union
A lag strategy involves attempting to collect foreign currency receivables early when a foreign currency is expected to depreciate. delaying collection of foreign currency receivables if that currency is expected to appreciate. delaying collection of foreign currency receivables if that currency is expected to depreciate. paying foreign currency payables before they are due when a currency is expected to appreciate.
delaying collection of foreign currency receivables if that currency is expected to appreciate.
From an international business perspective, some argue that what is ethical depends on one's cultural perspective. should be dictated by the marketplace pressures from customers and other stakeholders. should be dictated by the business' home country. depends on the universal worldwide agreement about what constitutes accepted ethical principles.
depends on one's cultural perspective.
If many people want euros and euros are in short supply, and a few people want Japanese yen and yen are in plentiful supply, the yen is likely to ________ against the euro. strengthen depreciate remain stable appreciate
depreciate
Assuming the 60-day forward dollar-yen exchange rate was $1 = ¥110 and the spot exchange rate was $1 = ¥120, the dollar is selling at a(n) ________ on the 60-day forward market premium discount margin increment
discount
The extent to which a firm's future international earning power is affected by changes in exchange rates in the long-run is known as ________ exposure. transaction translation economic financial
economic
A factory in Mexico produces millions of plumbuses a year, and has been able to reduce its costs per unit as it increased its production. This demonstrates the concept of product life cycle production possibility frontiers. economies of scale. first-mover advantage.
economies of scale.
The role of the government in a market economy involves encouraging vigorous free and fair competition among private producers. planning the types and quantities of goods and services to be produced. mobilizing economic resources of the country for public good. determining the prices at which goods and services will be sold.
encouraging vigorous free and fair competition among private producers.
If Porter's theory is correct, we would expect his model to predict the pattern of international trade that we observe in the real world. For example, countries should be *NOTE There have been so many issues with this question, I'm just giving the correct answer: exporting products from those industries where all four components of the diamond are favorable. exporting in those industries where the four components of the diamond are not favorable. both importing and exporting products from those industries where all four components of the diamond are favorable. importing products from those industries where all four components of the diamond are favorable. exporting products from those industries where all four components of the diamond are favorable.
exporting products from those industries where all four components of the diamond are favorable.
What is the name of the market in which the currency of one country is converted into currency of another country? NYSE carry trade market currency market foreign exchange market
foreign exchange market
The lack of progress in the Doha Round negotiations has resulted in countries that are deciding to boycott future meetings in Doha. starting negotiations with new trade partners. forging ahead with their own bilateral and multilateral agreements. refusing to listen to the WTO's recommendations.
forging ahead with their own bilateral and multilateral agreements.
According to the ________ view, international production should be distributed among countries according to the theory of comparative advantage. conservative free market pragmatic nationalist radical
free market
identify the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements. free trade areas common markets customs unions economic unions
free trade areas
The WTO argues that by removing all tariff barriers and subsidies to agriculture, prices would rise for consumers. there would be overproduction of products that are heavily subsidized. the overall level of trade would decrease. global economic growth would rise.
global economic growth would rise.
Initially, the Andean Community struggled, but in the late 1980s, this trend started to reverse when governments of Latin America began to adopt free market economic policies. the United States agreed to provide protection for intellectual property rights. the majority of African countries agreed to a single currency. Brazil and Argentina agreed to reduce tariffs.
governments of Latin America began to adopt free market economic policies.
A French wind power company gives an Indonesian company the right to produce and sell wind turbines in return for a royalty fee on every unit sold. Which business practice is this an example of? greenfield investment exporting acquisition licensing
licensing
Computer Contractors has given a foreign entity the right to produce and sell its computer parts in return for a royalty fee on every unit sold. This is called an acquisition. vertical FDI. a greenfield investment. licensing.
licensing.
Which of the following is a home-country policy aimed at limiting outward FDI flow? implementing government-backed insurance programs to cover major types of foreign investment risk double taxation of foreign income persuading host countries to relax their restrictions on inbound FDI limiting capital outflows
limiting capital outflows
The threat of antidumping action affects a firm by enabling it to leverage economies of scale and increase its profits. limiting its ability to use aggressive pricing to gain market share in a country. lowering its costs of exporting products to a country. increasing its ability to serve a country from locations outside of that country.
limiting its ability to use aggressive pricing to gain market share in a country.
Globalization has allowed corporations to reduce their costs by by exploiting the proletariat for benefit of the bourgeoisie by advancing their plan for total global domination locating manufacturing where the cost of the factors of production is lowest by harvesting the lacrimal excretions of endangered species by manufacturing products out of waste materials
locating manufacturing where the cost of the factors of production is lowest
The ethical obligations of a multinational corporation toward employment conditions, human rights, corruption, and environmental pollution are always clear and unequivocal in U.S. law. not always clear-cut. clearly laid out in international law. dictated by the laws of the corporation's home country.
not always clear-cut.
Culture is static unchanging not static abstract
not static
United Nations has developed the Human Development Index (HDI) to measure the level of political and economic freedom available to citizens. relative access to education of males and females. quality of human life in different nations. total income in different nations.
quality of human life in different nations.
Which of the following is an example of an advanced factor, as proposed by Porter, that a nation will possess? natural resources demographics skilled labor location
skilled labor
A Japanese tourist in New York goes to a bank to convert his yen into dollars. The exchange rate that will be used for conversion will be the forward exchange rate. futures exchange rate. spot exchange rate. historical exchange rate.
spot exchange rate.
The total accumulated value of foreign-owned assets at a given time is called the ________ of FDI. merger flow product stock
stock
The All-Emissions Corporation moved its automobile production plant to a country in South America because it could freely dump waste products into the nearby ocean. By doing this, the corporation was contributing to the concept of the tragedy of the commons. the Sullivan principles. ethnocentrism. uncertainty avoidance.
the tragedy of the commons.
According to the law of one price, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency. they are sold by competing companies. their price is based on the lowest price available. they are sold by the same company.
their price is expressed in terms of the same currency.
As a philosophy for business ethics, utilitarianism focuses attention on the need to follow the ethical norms that are culturally accepted in a host nation. make social investments designed to enhance the welfare of the communities in which they operate. adhere to the United Nations Universal Declaration of Human Rights. weigh carefully all social benefits and costs of a business action.
weigh carefully all social benefits and costs of a business action.