business in global environment
In which country is the EU headquartered?
Belgium
The International Monetary Fund (IMF) was established under the _______________ to help ensure the stability of the international ________ and ______ system.
Bretton Woods Agreement; monetary; financial
A party wishing to sell a given piece of commercial real estate to another party would enter into a real estate agreement with the other party. This is an example of which type of law?
Contract
The _____ is a report published each year by Transparency International, providing metrics to the potential corruption risk for 174 countries.
Corruption Perceptions Index
What are some of the major reasons for the growth of Regional Trade Agreements?
Cultural similarity, geographic proximity, security, and supply chain leverage.
For business purposes, it is far more important to understand a country's _____; this includes items such as the approach to __________, ___________, and the ________.
Deeper culture; leadership hierarchy, problem-solving, and concept of fairness.
The openness of _____________, and the protections such countries tend to generally provide for ____________ and freedom of expression, usually make those countries more hospitable places to conduct global business than countries with _____________ political regimes.
Democratic countries; property rights; totalitarian
Which one of the following would be the least restrictive way in which India and China could impede sales of Power Trip's products within their borders despite the agreement to allow free operations of the company within their nations' boundaries?
Establish a generalized system of preferences (GSP)
According to Transparency International, ___________ have a Corruption Index below ___ (out of 100).
2/3rds of countries, 50
The top 5 economies in the world (by GDP) represent approximately what % of the world's total GDP output?
50%
At the height of communism, there were ___ of communist countries; currently, there are only __ communist countries and they include _______.
50; 5; Vietnam, North Korea, China, Cuba, and Laos
The RCEP Regional Trade Agreement took how many years to negotiate and includes which major countries?
8 years; Japan, South Korea, and China
Countries with extremely high government debt and/or large amounts of debt with the _______, typically have ___________ and ____________. Currently some of the countries with these issues include _________, ________, and _________.
IMF; high inflation, currency devaluation issues; Pakistan, Argentina, Egypt
What key provisions of the NAFTA agreement were changed in the USMCA agreement?
Improved Intellectual Property protections, increased the percentage of US/Mexico/Canadian to 75% content for autos to qualify for zero tariffs, required at least 40% of automobile content to be performed by workers making at least $16/hour be s duty-free
Protecting ______________ is a key consideration of any business especially as the amount of _____________ grows around the globe. Protection of this information is critical for _________and __________.
Intellectual property, digitization; entrepreneurs, innovation
_____ refers to a system of rules and procedures designed to ensure the accuracy and reliability of financial and accounting information.
Internal controls
Identify some of the major attributes of cryptocurrency.
Is not backed by government central banks, uses large amounts of electricity for "mining", has the potential for large price fluctuations
Which of the following is NOT true regarding the Foreign Corrupt Practices Act? It is a U.S. federal law that contains two parts. It has an anti-bribery provision. It was passed in 1952. It has a requirement to maintain an adequate internal control system over financial records. A few people complain that the FCPA puts American firms at a disadvantage against non-U.S. competitors.
It was passed in 1952.
The __________ illustrates the idea that ______ government control could cause ______ innovation by businesses.
Laffer Curve of Control; too much; less
Hayek noted that one of the problems with socialism is the notion of "fatal conceit". What is meant by this phrase?
Many socialists believe that a limited number of individuals are smarter than the entire economic "market" and that "newness" is better than what actually works.
Ethical behavior requires this attribute. _______ is the alignment of outward acts with inner principles; it is important to act ____________.
Moral courage, even in the presence of fear.
The major trends in economic globalization that will be occurring include the following: _____________. ___________ and ___________.
More regional trade partnerships, decoupling, and shift of economic activity to Asia
According to Friedman, economic globalization is being driven by three major items: ____________, ___________, and _________.
Mother Nature, Markets, and Moore's Law
Which of the following is NOT an objective of the WTO?
Naming commissioners to local trade organizations
The United States has a ____________ Current Account balance mainly due to its trade with its three largest trading partners: ______________,___________, and ______________.
Negative; China, Canada, Mexico
. ___________ communication is often more important in global business; it represents approximately _____ of all communication and the skill of _________ is crucial in global business situations.
Non-verbal; 90%; listening
______ communication refers to tone of voice, gestures, eye contact, body positions, facial grimaces, and other body language that accompanies verbal communication.
Nonverbal
All the following countries can be considered globalization "winners" EXCEPT ________ which has a _________ government:
North Korea; communist
Yeonmi Park fled _______ to freedom; she noted that _____ and _______ are the keys to freedom.
North Korea; education and critical thinking
According to Porter's "diamond" model, the success or competitive advantage of a nation at the global stage depends upon the interaction of all of the following EXCEPT
a conservative political structure.
If the Rochester Corporation experienced unresolved legal problems with one of its customers located in a foreign country, all of the following except which one would be a potential way to remedy the problem? Bring about litigation in the reigning court of law Engage in arbitration Obtain an executive order from the U.S. Attorney General's office Have the court system use dispute settlement law to reach a resolution to the problem Use the services of a mediator or an arbitrator
Obtain an executive order from the U.S. Attorney General's office
U.S. oil embargo; bad government leadership and socialistic policies
Paying a bribe to a company executive in order to be awarded a contract.
Some of the key factors that influence a country's exchange rate include: __________, ____________, ___________, and _________________.
Political stability, the amount of public debt, the level of inflation, and interest rates.
The foundations of the globalized business world are ________ and so are the biggest ______ to the system.
Political; threats
Identify the four major reasons for the increase in economic globalization since World War II.
Population growth, technology, desire for business growth, and formation of international finance/trade organizations
History has shown that free trade between countries leads to _______ while _______ leads to _________; an example of this can be shown in the prosperity of ________________ and the poverty of _______________.
Prosperity, protectionism, poverty; South Korea, North Korea
___________ in lieu of _____________ causes _________ efficient economies, ___________ economic cooperation among nations.
Protectionism; globalization; less; less
Which of the following is NOT a main purpose of the IMF?
Provide long-term low-interest social sector and infrastructure loans
________________ is ______________ and it positions countries to be ___________ on the larger international trading stage.
Regional trade; growing; more competitive
The most common way of categorizing various cultural aspects include __________, _________, and __________.
Relations between people, risk tolerance, and attitudes toward time.
The __________ impact on the global economy because of Russia's invasion of Ukraine include ________, ________, and _________ in numerous countries.
Ripple; energy shortages, food shortages, and inflation
_____ refers to the way people in a society relate to one another within group settings.
Social institution
Key problems with capitalism are _______; key problems with socialism are _______.
Sometimes leads to monopolistic business behavior and income inequality; higher taxes, less incentives for growth and innovation.
The foundation of democratic forms of government is the concept of the _________________; according to the Index of ____________, there is an undeniable link between ___________ and ________.
Sovereignty of the individual; Economic Freedom; economic freedom and prosperity
A ______________ is a business venture with full or partial __________ownership. _________ has the world's largest of these arrangements due to their desire to ___________ key industries.
State owned enterprise, government; China, control
_____________ is a term wherein a country invests in _______ to provide ________ "homegrown" industries instead of relying on other countries to provide the good or service.
Strategic autonomy; itself; key
Name three of the five concepts/questions that aid critical thinking.
Supported by credible data, history, and proven human behavior
S & I Creations is most likely to use which of the following for converting the currency they are paid in from the foreign countries to the currency of Sweden?
The Foreign Exchange Market
Of the following, which is NOT true of the Enron financial scandal?
The scandal surprised no one because Enron was always regarded as an unethical company.
When S & I Creations exports its products to foreign marketplaces, which one of the following is most likely to be affected for the country of Sweden?
The trade balance of Sweden
What was the initial primary role of the World Bank?
To aide in the reconstruction of Europe after World War II
The predominant political system of mankind's 5000 years of recorded history has been ______.
Totalitarianism
The two largest economies in the world are engaged in a competitive battle and this battle has long-term and far-reaching implications for the world. Name the two countries engaged in this battle and identify some of the key areas of disagreement.
U.S. and China; forms of government, South China Sea/Taiwan, "checkbook diplomacy", trade imbalance
The ____________ is currently the main currency for transacting global business. Approximately ____ of countries generally hold __________ in ___________ to stabilize their currency and to transact international business. Recently, some countries are starting to ___________ their dependency on this currency.
U.S. dollar; 60%, U.S. dollar, reserve; decrease
Venezuela's economy collapsed because of the following:
U.S. oil embargo; bad government leadership and socialistic policies
The two main questions that economic systems should answer are ___________ and ____________.
Who decides how to distribute resources and where do the resources go
The key historical event that precipitated the growth of globalization was _____; this conflict killed approximately ____ to ____ million people and involved approximately ____ countries.
World War II, 70 to 80, 50
To sustain globalization, nations must build institutions that support all of the following EXCEPT
command economies.
The FIRST basic step in ethical decision-making is to
define all the facts and circumstances.
The U.S. government may require that apparel imported into the United States should use U.S. cotton, or use a certain amount of American labor. This is an example of a(n) _____.
domestic content provision
Sometimes leads to monopolistic business behavior and income inequality; higher taxes, less incentives for growth and innovation.
environmental social governance
Acquisitions of a foreign company, creation of new manufacturing or research facilities abroad, and expansion of an existing plant in a foreign country are all examples of _____.
foreign direct investment
Three countries, X, Y, and Z are part of a member area where they have eliminated all barriers to trade such as tariffs, quotas, and non-tariff barriers like border restrictions, while at the same time keeping their own external tariffs against nonmembers. Such an area could be described as a(n) _____ area.
free trade
According to the trade balance, the "+" sign refers to _____ and the "-" sign refers to _____.
incoming dollars coming in when merchandise is exported; dollars that leave the country to pay for imports
According to scholars, communism as an economic system has the appearance of _______, but it often replaces market freedom with __________ and does not ________ society.
justice; totalitarianism; unify
All of the following statements about regional integration are true EXCEPT:
regional integration should initially address a broad, ill-defined area of cooperation.
Most, if not all, democracies today are what are known as _____ democracies.
representative
A British firm may need dollars to pay for U.S. imports. It can work with banks in London to exchange pounds for dollars to make this payment via electronic transfer. This is an example of a(n) _____ market.
spot
A person of integrity has two essential characteristics: (1) knowledge about what morally constitutes the right thing to do and (2) _____.
the courage to do what is right
"Coca-Cola," the Nike "swoosh" logo, and McDonald's "golden arches" are examples of _____.
trademarks
In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on _____.
transparency
According to numerous studies, economic freedom promotes ________ and ________.
A higher standard of living; less poverty
GCD Industries employs a set of internal controls within its operations to help ensure ethical behavior and to help prevent financial impropriety. Which one of the following is least likely to be used as an internal control by this company? Adequate and accurate documentation and records are maintained Corrective actions are taken immediately whenever a department goes over its budget The company has written policies and procedures for all members to follow Financial and accounting records are periodically audited All funds due the company and all checks for expenditures are handled by the same person
All funds due the company and all checks for expenditures are handled by the same person
_______ is currently losing its place as the "world's supplier" due to both ______ and _______ uncertainty within the country. Supply chains are shifting to countries like ______ and _________.
China; economic, political; India, Vietnam
In dealing with such a varied number of customers from virtually all major points in the world, the Rochester Corporation is subjected to many risks. Which one of the following would not be considered an economic risk Rochester potentially faces in its global dealings? Currency conversion restrictions The devaluation of foreign currency Lack of consumer interest in the company's products Potential for hyper-inflation to occur Confiscation of a company shipping vessel by pirates
Confiscation of a company shipping vessel by pirates
The agreement between Power Trip Unlimited, China, and India to engage in foreign trade will ultimately provide greater opportunities for consumers of Power Trip's products. Which one of the following is least likely to be considered a benefit of this trade agreement?
Consumer choices may be limited by government restrictions on the operational capacity of the various products.
GCD Industries acknowledges it is under the guidelines of the Foreign Corrupt Practices Act whenever it has dealings in the foreign marketplace. Which one of the following is not addressed by this Act? Offering a gift to the head of the foreign political party of the nation where work is being performed Establishing pay scales for employees of the company while working on foreign soil Making the offer to pay money to a foreign official for special privilege afforded to the company Making a promise of payment to government officials for directing business to the company Provision indicating access to assets is allowed only by management's specific authorization
Establishing pay scales for employees of the company while working on foreign soil
___________ are starting points, but __________ alone does not yield ethical _________.
Ethical codes, compliance with regulations, excellence.
Of the following statements, which is NOT true about ethics and integrity?
Ethical situations are always black and white.
Together, the _______, _______, and the _________ currencies account for around 60 percent of the currency traded in the world economy
Euro, US dollar, Japanese yen
Of the following statements about foreign direct investment, which is NOT true?
Foreign investors have little faith in high-income economies such as Canada.
The _______ is a statistical measure of income inequality within a group; according to the World Bank, the United States has a score of approximately ___ and this is only slightly higher than most of the G20 countries.
Gini coefficient; .40
For true success in the workplace (according to Duckworth), _____ trumps most everything else including talent, and is _____ as powerful as talent.
Grit; twice
When a country has consistent high amounts of FDI, this usually means that the economy and political stability of a country is _______ and ________.
Growing and healthy
