International Business: quiz questions

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states

World Trade Organization

The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding their home markets protected from foreign competitors

false

A multinational enterprise (MNE) is a firm that ___

has production units in more than two countries

Which of the following is a consequence of globalization?

increasing outsourcing of services

Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers...

is due to technological changes that create greater demand for skilled workers

An economy in which the interation of supply and demand determines the quantity in which goods and services are produced is called:

market economy

An international business, unlike a multinational enterprise ____

need not invest directly in operations in other contries

Interdependent political, economic, and legal systems of a country make up its:

political economy

the HDI is based on all of the following measure EXCEPT:

political freedom

Which of the following areas of international trrade is regulated by the foreign Corrupt Practices Act?

preventing bribery and unethical acts in the conduct of international business

In Russia in the chaotic period following the collapse, an outdated legal system, coupled with a weak police force and judicial system, allowed the Russian Mafia to deman "protection money" from business owners. Any business owner who rebelled had to face violent retribution. THis violation of property rights exemplifies:

private action

the finance minister of a country considers several large, statte-owned iron manufacturing units to be inefficient and a source of corruption. To generate resources for public expenditure and promote economic growth, the government decides to auction an entire irion manufacturing plant to sell it to a stategic investor. this process exemplifies:

privatization

Which of the following is NOT an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?

reduce tariffs on imports of manufactured goods

Political scientist Samuel Huntington argues that modernization in non-western societies can result in a retreat toward the traditional. this is exemplified by:

the Islamic resurgence

GNI per capita can be adjusted by purchasing power to account for differences in the cost of living

true

In practical terms, individualism translates into an advocacy for democratic political systems and market economics

true

The shift toward a more integrated and interdependent world economy is referred to as globalization

true

Which of the following statements is true about an international business?

an international business must find ways to work within the limits imposed by government intervention

under the ___ cases are judged with reference to three characteristics: tradition, precedence, and custom.

common law system