International Business Ch 1-2

The ________ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to promote economic development.

World Bank

Opponents of globalization argue that falling trade barriers

allow firms to move manufacturing activities to countries with lower wage rates.

Foreign direct investment occurs when a firm invests resources in:

business activities outside its home country.

Historically, command economies were found in ________ countries, where collectivist goals were given priority over individual goals.

communist countries

Some countries consider bribes to be:

compensation for work that would otherwise not be completed by underpaid government workers.

Which of the following factors contributed to the Great Depression of the 1930s?

countries progressively raising trade barriers against each other

Globalization has enabled organization to reduce their costs of production by:

creating manufacturing units in developing countries

The role of the government in a market economy involves

encouraging vigorous free and fair competition among private producers.

Which of the following actions was implemented in the Uruguay Round, finalized in December 1993?

establishment of the World Trade Organization

Some economists support the practice of paying small bribes based on the argument that they

help promote economic growth

The practices of bribery

is a normal part of business in some countries

the common law system is

is based on tradition, precedent, and custom.

Globalization critics argue that the decline in unskilled wage rates is due to the

migration of low-wage manufacturing jobs offshore.

Your U.S.-based company wants permission to build a factory in a foreign country. You have been asked to pay a bribe in order to get the paperwork approved. You should:

not pay because doing so is prohibited by the Foreign Corrupt Practices Act

The benefits, costs, and risks associated with doing business in a country are a function of that country's

political, economic, and legal systems.

The purpose of the U.N.'s Millennium Development Goals that were established in 2000 was to

reduce the number of people living in extreme poverty.

The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a ________ law system.

theocratic

Which of the following is a more attractive place to do business?

A nation with a market-based economic system

Which of these is a characteristic of a pure command economy?

All businesses are owned by the state.

Which of the following expresses one of the reasons why managing an international business is different from managing a purely domestic business?

An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.

According to the _________, it is illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority.

Foreign Corrupt Practices Act

The _______ is often seen as the lender of last resort

IMF

Which of the following is a feature of right-wing totalitarianism?

Provision of partial individual economic freedom along with restricted individual political freedom.