MGT 301 Ch1
In the context of the emerging markets of Asia, India is attractive to multinationals, especially U.S. and British firms.
True
Monopolies are a danger to the market economy system because they tend to stifle economic growth.
True
Singapore has emerged as an urban planner's ideal model and the leader and financial center of Southeast Asia.
True
The Brazilian economy outweighs that of any other South American country with an economic output comparable to that of France.
True
The Asian economic block, made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Cambodia, Myanmar, and Vietnam, is referred to as the: Southeast Asia Common Market. Southeast Asia Free Trade Agreement (SEAFTA). Asian Economic Union. Association of Southeast Asian Nations (ASEAN).
Association of Southeast Asian Nations (ASEAN)
In the context of established economies, the United States has considerable foreign direct investment in ________. Canada the Netherlands the United Kingdom Mexico
Canada
________ is the United States' largest trading partner, a position it has held for many years. Japan England Mexico Canada
Canada
Which of the following economies is projected to become the largest by 2050 using market exchange rates? China Australia India Brazil
China
Foreign direct investment has been falling alarmingly since the global recession of 2009 in most regions of the world.
False
Hungary's economy was the only economy in the EU to continue to grow during the global recession of 2008-2009.
False
In a command economy, a general balance between supply and demand sustains prices, while an imbalance creates a price fluctuation.
False
In the context of the changing global demographics, elderly populations spend money on housing and other capitally financed purchases.
False
Internationalization is the vision of creating one world unit, a single market entity.
False
North American Free Trade Agreement (NAFTA) members are better integrated as a single market than the European Union (EU) or the allied Asian countries.
False
One of the factors that contributed to the early success of the Japanese economy is the presence of chaebols.
False
The United States has considerable foreign direct investment in Germany, more than in any other country.
False
The economy of Argentina outweighs that of any other South American country with an economic output comparable to that of France and has become a worldwide presence.
False
________ is the term used to indicate the amount invested in property, plant, and equipment in another country. Exporting Importing Trade imperfection Foreign direct investment
Foreign direct investment
In the context of the changing global demographics, identify a change that will be seen in developed nations. In South Korea, the immigration policy will ease by 2050. In Japan, the number of nonworkers will be nearly equal to that of workers by 2050. In Germany, there will be a removal of restrictions on agricultural products, auto parts, and energy goods. Developed Asian nations will be able to easily replace the retiring, aging population.
In Japan, the number of nonworkers will be nearly equal to that of workers by 2050
In the context of emerging and developing economies, identify a true statement about India. Indians are known for their advanced information technology expertise. Its political instability is pervasive, which generates substantial risks for foreign investors. Indian government is unable to provide funds for economic development. The overwhelmingly diverse people of India mostly speak tribal languages and dialects.
Indians are known for their advanced information technology expertise
________ is the process by which companies undertake some activities at offshore locations instead of in their countries of origin. Offshoring Homesourcing Globalization Insourcing
Offshoring
________ is the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments. International management Strategic management Globalization Internationalization
International management
In the context of established economies, despite setbacks, ________ remains a formidable international competitor and is well poised in all three major economic regions: the Pacific Rim, North America, and Europe.
Japan
In the context of emerging and developing economies in Central and Eastern Europe, which of the following is a pervasive challenge in Russia? Expansion of the middle class Lack of public security Dismantling of Russian price controls Privatization
Lack of public security
By the early 1990s ________ had recovered from its economic problems of the previous decade and had become the strongest economy in Latin America. Chile Brazil Mexico Argentina
Mexico
Which of the following countries was not among the world's 10 most competitive nations in 2015? Mexico Germany Singapore Norway
Mexico
The ________ is a free-trade agreement among the United States, Canada, and Mexico that has removed most barriers to trade and investment. NAFTA . . CAFTA . . AFTA EFTA
NAFTA
The United States, Canada, and Mexico make up the ________, which in essence has removed all barriers to trade among these countries and created a huge North American market. General Agreement on Tariffs and Trade North American Trade Union North American Common Market North American Free Trade Agreement
North American Free Trade Agreement
The Trans-Pacific Partnership (TPP) is a trade agreement among 12 Pacific Rim countries, including: India, Canada, and Australia. Peru, the United States, and Vietnam. Singapore, Russia, and Chile. Great Britain, New Zealand, and China.
Peru, the United States, and Vietnam
Which of the following statements is true about the economy of Poland? The consensus decision-making system of Poland turns out to be too time-consuming in the new speed-based economy. During the 1970s and 1980s, Poland's economic success had been without precedent. Poland's economy was the only economy in the European Union to grow during the global recession of 2008-2009. Poland is among the largest of the former communist countries that receive the least media coverage.
Poland's economy was the only economy in the European Union to grow during the global recession of 2008-2009
Russia, ________ receive the most media coverage and are among the largest of the former communist countries. Poland, Hungary, and the Czech Republic Hungary, Romania, and Albania Romania, Poland, and Bulgaria Czech Republic, Bulgaria, and Poland
Poland, Hungary, and the Czech Republic
Identify a characteristic of a market economy. The state reserves the right to monitor the production and distribution of goods and services. Private enterprises reserve the right to own property. Monopolies boost economic growth. Competition is discouraged because it hinders penetration into niche markets.
Private enterprises reserve the right to own property
In addition to Japan and China, the important economies in Asia are: Singapore, South Korea, Indonesia, and Thailand. Thailand, South Korea, Indonesia, and Hong Kong. Indonesia, South Korea, Japan, and Taiwan. South Korea, Hong Kong, Singapore, and Taiwan.
South Korea, Hong Kong, Singapore, and Taiwan
Which of the following statements is true according to the reports that were released in 2004 and 2011 by the Goldman Sachs global economics team? The economies of Indonesia, Mexico, and Turkey could expand significantly in the coming decades. The BRIC (Brazil, Russia, India, and China) economies' share of world growth could rise significantly from 2003 to 2025. The E7 (Brazil, China, India, Indonesia, Mexico, Russia, and Turkey) economies would mature and slow down in terms of market exchange rates. The economies of Russia and Brazil would remain unaffected by the low prices for oil and other commodities in the years 2015 and 2016.
The BRIC (Brazil, Russia, India, and China) economies' share of world growth could rise simnifically from 2003 to 2025
Identify a true statement about the Development Round in which the members of the World Trade Organization (WTO) met and launched a round of negotiations at Doha, Qatar in November 2011. There was a lack of consensus among WTO members regarding unbalanced population pyramids. The WTO members agreed upon the issues of competition. The WTO members agreed upon the opening of government procurement markets to companies in the developed nations. There was a lack of consensus among WTO members regarding agricultural subsidies.
There was a lack of consensus among WTO members regarding agricultural subsidies
About 46 percent of employees in both the United States and Russia would prefer a work schedule that fluctuates between work and leisure, mirroring a pattern of recurring sabbaticals.
True
An increase in the ease of travel between countries is an important development that has occurred because of the North American Free Trade Agreement (NAFTA).
True
China remains a major risk for investors because they are required to maintain a delicate balance between the country's communist and capitalist systems.
True
Despite being unable to take full advantage of globalization, there is still hope in the future for Africa because the potential of African countries remains virtually untapped.
True
General Electric (GE) has strategically leveraged social media to improve its long-term brand image.
True
A survey of businesspeople from Argentina, Brazil, Chile, Columbia, and Venezuela found that the ________ market, on average, was more important for their economic well-being than any other market. European Union U.S. Mexican Japanese
U.S.
The ________ is the global organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies. WIPO WTO NAFTA ITO
WTO
The challenge for the future of the European Union is to: absorb its eastern neighbors. have common custom duties. have unified industrial and commercial policies. be able to manufacture high-quality, low-cost goods.
absorb its eastern neighbors
Unlike a market economy, a command economy is characterized by: an ignorance of demographic information by management. private ownership of businesses. an appropriate response to consumers' stated needs and desires. insufficient security provided by government subsidies.
an ignorance of demographic information by management
In the context of the shifting balance of economic power in the global economy, which of the following factors has helped boost incomes and wealth in the African continent between 2000 and 2015? An easy immigration process for workers An increase in the price of agricultural products A one-child policy An increase in the size of the elderly population
an increase in the price of agricultural products
A ________ is comparable to a monopoly in the sense that an organization, in this case the government, has explicit control over the price and supply of a good or service. market economy mixed economy command economy socialist economy
command economy
According to some critics, agreements like North American Free Trade Agreement (NAFTA) and Central American Free Trade Agreement (CAFTA): have been successful in ensuring environmental standards. do not go far enough in protecting property rights. have been successful in preventing the decline of the global working-age population. do not go far enough in ensuring worker rights.
do not go far enough in ensuring worker rights
The ultimate objective of the European Union is to: eliminate all trade barriers among member countries. develop separate custom duties for member countries. increase imports into European Union countries. have a single government that represents all European Union countries.
eliminate all trade barriers among member countries
Critics of globalization believe that: when production moves to countries to take advantage of less-regulated environments, an upward pressure is created on wages and working conditions. the offshoring of business services jobs to lower-wage countries inherently creates greater opportunities at home. growing trade deficits and slow wage growth are damaging economies. the main winners of globalization are the low-wage workers.
growing trade deficits and slow wage growth are damaging economies
In the context of established economies, the European Union:
has largely achieved the reality of a single currency and a regional central bank
A factory, the majority of which are located in Mexican border towns, that imports materials and equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export is referred to as ________. a keiretsu a maquiladora a governmental agency a vertically integrated corporation
maquiladora
A ________ exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices. mixed economy socialist economy market economy
market economy
Agreements like NAFTA and CAFTA: do not include supplemental commitments like the FTAA does on labor and the environment to encourage countries to upgrade their working conditions and environmental protections. provide firms with enough security so they cannot go out of business, which simply encourages a lack of efficiency or incentive to monitor costs. not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights. rely exclusively on MNCs exporting or setting up operations locally rather than buying out a domestic firm.
not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights
The subcontracting or contracting out of activities to external organizations that had previously been performed by a firm is called ________. insourcing outsourcing offshoring homesourcing
outsourcing
A method that adjusts GDP to account for different prices in countries is called: purchasing power parity. nominal GDP. current currency exchange rate. cumulative distribution function.
purchasing power parity
To qualify as a multinational corporation (MNC), a firm must meet all of the following criteria except: a mix of nationalities among managers and owners. sales of at least one million dollars per year. operations in more than one country. international sales.
sales of at least one million dollars per year
By 2017, foreign direct investment (FDI) is estimated to: experience a significant drop similar to the global recession of 2009. reach an all-time low due to political instability and uncertain markets. surpass the all-time high set a decade earlier in 2007. experience an insignificant rise due to a slow rate of increase of merchandise exports.
surpass the all-time high set a decade earlier in 2007
U.S. firms maintain particularly dominant global positions in all of the following industries except: textiles. biotechnology. telecommunications. media.
textiles
Which of the following statements is true of the economic system of North America? The free-market-based economy of this region results in low trade barriers when attempting to move into other countries. The free-market-based economy of this region allows considerable freedom in decision-making processes of private firms. The command economy of this region allows competition to strive while the government can extend assistance to individuals or companies. The command economy of this region allows for high flexibility with decisions and low barriers for other countries to establish business.
the free-market-based economy of this region allows considerable freedom in decision-making processes of private firms
A major development in South America is: the growth of intercountry trade, spurred on by the progress toward free-market policies. the elimination of all trade barriers among member countries. the implementation of a single currency and a regional central bank. the privatization of traditionally nationalized industries.
the growth of intercountry trade, spurred on by the progress toward free-market policies
After becoming part of the North American Free Trade Agreement (NAFTA) in 1994, Mexico: was able to take advantage of the U.S. market. experienced a significant increase in labor costs. experienced a tremendous increase in transportation costs. exhibited significant economic stability.
was able to take advantage of the U.S. market
