World Economy

Which of the following is the MOST accurate statement about culture?

Although most cultural variables are universal, the forms these variables take differ from culture to culture.

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.

Civil

Which of the following has MOST influenced consumers to demand access to foreign-made products?

Consumers have become more efficient in using media and technologies to compare prices worldwide.

________ consists of specific learned norms based on attitudes, values, and beliefs of a group of people.

Culture

he two main categories in the balance of payments are the ________.

Current & Capital Account

In a country's balance of payments, the ________ tracks all trade activity in goods and services.

Current accounts

The Economic Freedom Index indicates that economic freedom is positively correlated with all of the following EXCEPT ________.

Diversity

Which of the following terms best reflects an economy that is growing quickly and is relatively prosperous?

Emerging Economy

________ people account for the largest percentage of global production.

English-Speaking

(T/F) Supporters of globalization assert that the process helps countries strengthen their sovereignty.

False

The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it.

Freedom

Which term refers to two or more companies that share ownership of an FDI?

Joint Venture

(T/F) Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies

True

(T/F) Research indicates that democracy is declining around the world and that totalitarian regimes are increasing.

True

A foreign direct investment occurs when

a company has a controlling interest in a foreign company

Ethnocentrism in international business refers to the ________.

belief that what works best at home should work best everywhere

Safe work environments motivate ________; challenges motivate ________.

collectivists; individualists

A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution.

common

When divergent cultures come in contact, ________ occurs.

cultural collision

Since the late 1980s, the growing emergence of freer markets has been powered by the realization that ________.

economic growth is directly related to economic freedom

The approach a company takes when it bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints is called ________.

geocentrism

The widening set of interdependent relationships among people from different parts of the world is known as ________.

globalization

The term "________ culture" describes a country in which the norm is a money-and-things orientation and a belief that it's better to "live to work" than to "work to live."

high masculinity

Most of the world's goods and services are sold ________.

in the countries where they are produced

The pushback against democracy has powered a rise in totalitarianism, a situation that is likely to include which of the following?

increasing adoption of the principles of the rule of man

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail. Which of the following legal conventions does ION most likely have?

intellectual property right

Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

intellectual property violations

Reebok pays a royalty to the German Soccer League to use the team's logo on t-shirts that it sells. Reebok and the German Soccer League most likely have a

licensing agreement

Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

minimal government intervention

In the United States, the unemployment rate indicates the ________.

percentage of unemployed workers seeking paid work relative to the total labor force

People generally prefer little consultation between superiors and subordinates in cultures where ________ is high.

power distance

Eileen, a manager at an international restaurant chain, wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S. dollars. Which of the following is Eileen most likely trying to determine?

purchasing power parity

Which of the following is NOT a characteristic of capitalism?

state control of factors of production

Harmon Clothing has a production facility located in Venezuela. Recently, Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government. Which type of political risk is Harmon most likely experiencing?

systemic

In a command economy, ________.

the government sets goals and determines the price and quantity of what is produced

Although globalization may bring economic growth, critics nevertheless contend that ________.

the inequality of gains puts some people in a relatively worse economic situation

In a country that emphasizes collectivism, ________.

the needs of society take precedence over individual freedoms

It is most accurate to say that within most nations' borders, people largely share such essential attributes as ________ and ________.

values; language

A multinational enterprise (MNE) is best defined as a firm

with foreign direct investments

In a practical sense, the term political system is meant to signify the ________.

working government in a country