Chapter 4
free enterprise system
An economic system in which people are free to operate their businesses as they see fit, with little government interference.
How did intel eliminate conflict minerals from their supply chain?
By collaborating with most suppliers in the chain including smelters, processors, and traders
According to the United Nations, a feature of democracy is:
Fair elections, an independent government, and a government with balance of powers
Government has distinctive resources and competencies including
Knowledge of public policy, ability to enforce the rules, and revenue from taxation
The primary purpose of the International Monetary Fund is to
Lend foreign currency to member countries.
The term "race to the bottom" refers to:
Moving production jobs to the country with the lowest labor cost
Three Stages of Globalization
Sell, make, and buy
An example of Global Action Network, or GAN, is
The Kimberly process
Global market channels involve a firm producing goods in
Their home country and exporting them to other countries
What country does communist parties still remain?
Vietnam
A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:
weak health and safety regulations
Microfinance refers to banks
Lending money to low income businesses
What are examples of international financial and trade institutions?
World bank, International Monetary Fund, and world trade organization
central state control system
economic power is concentrated in the hands of government officials and political authorities
A firm that would like to develop a global supply chain would:
purchase raw materials, components, or supplies from sellers in other countries
