Global Business Midterm

If Indonesia exports vast quantities of cheap textiles to Italy selling them at below their cost of production, this would be an example of what?

Dumping

China, South Korea, Taiwan, Singapore, and Hong Kong have had the fastest growing economies in the past forty years, what did these five countries have in common after the start of their economic spur?

Undemocratic governments

The North America free trade agreement known as NAFTA is an agreement between what countries

United states, Canada, Mexico

Firms engage in dumping in order to _____

Unload excess production in foreign markets

Bethany works for Fast Fashion Incorporated, which has set the same sales target for all employees in their 550 stores across the world. The company fails to take into account any environmental constraints which might hamper sales and to avoid being penalized employees often falsify their sales reports. What is triggering the employees unethical behavior?

Unrealistic performance goals

As a result of _____ large amounts of economic activity in India are not made official and the GEP figures the country failed to tell the entire story. As a result of ______ large amounts of economic activity in India are not being recorded.

Unrecorded cash transaction

Greta felt uncomfortable while talking to the store manager because she moved so close to Greta until her face was just inches away. What aspect of the situation was bothering Greta?

Unspoken language

Johan is the manager of Cycle Up and has agreed to build a new manufacturing plant in Argentina. He realizes this decision will cause him to shut down a small plant in Ohio but he decides that since it is a new facility, it will cut the operating costs in half, that it is worth more than closing a plant employing 10 people. Which philosophical approach to ethics does this demonstrate?

Utilitarian

Location specific advantages for a firm are those that arise

Utilizing resource assets that are tied to particular foreign location

Within organization culture ___ are abstract ideas about what a group thinks is good, right, and desirable.

Values

Growing income and income equality between the skilled and unskilled workers in advanced nations like the United States is a result of

Wages for skilled workers are being bit up by the labor market, wages for unskilled workers are being discounted

The practice of gift giving between the parties to a business negotiation is considered right and proper in many Asian cultures. However, somewhere else it is viewed as a form of bribery and therefore unethical, particularly if the gifts are substantial. This demonstrates that ____

What is ethical depends on one's cultural prospective

A firm will favor FDI (foreign direct investment) over exporting as an entry strategy when

When transportation costs and trade barriers are too high

While Kyle realized that his company was allowed to conduct a 12-hour work day in the overseas facility he managed, he instead implemented two 8-hour shifts because he felt it was fundamentally the right thing to do. A rights theorist would say that Kyle is using _____

his moral compass

The ____ view of FDI traces its roots to Marxist political and economic theory

radical

What are the central benefits of mercantilism?

A country should intervene to achieve a surplus in the balance of trade

According to freedom house just under ____ of the world's nation are considered free

50%

Of these companies, which company is contributing to the global tragedy of the commons

A firm dumping its chemical waste directly into the ocean

Knickerbockers concept of multi-point competition enhances the strategic behavior theory by making sure that ________

A rival does not dominate one market and use the profits from there to drive competitive attacks elsewhere

Countries that receive loans from the IMF are required to do what

Adopt specific economic policies to attain globalization

While lowering the trade barriers the globalization of markets and production theoretical possibility, what has made it a tangible reality

Advances in communication, information processing, and transportation technology

One suggestion for helping poor countries enjoy the benefits of free trade is for richer nations to reduce barriers to imported products from those nations particularly for textiles and what other kinds of products

Agriculture

What's a zero-sum game?

An economic gain by one country results in the economic loss of another

Under a civil law system, it is the responsibility of the judge to uphold and _____

Apply the law

Jalen is the ethics officer at Turbo Life, his responsibilities include____

Audit decisions to make sure they are consistent with the company's moral principles

What is a common aspect of the teachings of Hinduism and Buddhism?

Both stress the afterlife and spiritual achievement rather than material progress

Which legal system is based on tradition, precedent, and custom?

Common Law

For more than 2000 years until the 1949 communist revolution, what was the official ethical system of China?

Confucianism

Many believe that globalization has created a convergence in ______

Consumer taste references

Bret Robertson is a playwright and in order to protect is intellectual property he should secure ____ on all of his plays

Copyright

What is true of the relationship between trade and economic growth?

Countries open to international trade display higher growth rates that knows that close their economies to trade

The new trade theory diverts from its advocacy of free trade by suggesting that the role of luck in entrepreneurship and innovation is important to giving a firm an

Economic rationale for a proactive trade policy

Software development is an expensive process, but manufacturers are able to spread out the costs of the technology over hundreds of thousands of software packages sold to consumers. What is driving down costs in this situation?

Economies of Scale

Bethany works for a company that makes Sport Socks. Unlike many smaller companies Bethany's company ships out large quantities of sport socks that their unit cost is less than half of her competition. What does this company benefit from?

Economy of Scale

One result of the Uruguay round was

Enhance protection for patents, trademarks, and copyrights

According to economist Hernando de Soto the key issue with the relationship between capitalism and property rights is the inability of owners to ___

Establish legal title to the property

Janet believes that the cultural group she belongs to is superior and as a result she is highly intolerant towards employees from cultures of other countries. This behavior in addition to being ignorant, is also known as _______

Ethnocentrism

Grease payments or speed money are allowable under US law as a way to ___

Expedite the performance of a routine government action

Wood Core Inc. produces an entire line of office furniture at its manufacturing facility in the United States and ships its products for sale to various companies in Europe. Wood Core is involved in what?

Exporting

According to the Olen theory the pattern of international trade is determined by differences in ______

Factor Endowments

Labor, energy, land, and capital a country relies on to source goods and services are known as

Factors of production

Ten years after Leon Sullivan proposed the Sullivan principle, he concluded that ____

Following his principles was not sufficient to ethically justify the existence of western business in South Africa

Which multilateral trade agreement was established on the US leadership in 1947 with the objective to liberalize trade by eliminating tariffs, subsidies, import quotas, and alike?

GATT (General Agreement Trade and Tariffs)

So rather than acquire an existing textile manufacturing in Jakarta Faux Fabric Inc. chose to establish new operations in Indonesia. This form of FDI is called what?

Green Field Investment

Which religion does not owe its founding to any one particular individual?

Hinduism

According to the human development index, average income adjusted for PPP should be sufficient to _____

Human development

When thinking through an ethical issue the first step you should always take is to _____

Identify which stakeholder the decision would affect and in what ways

Due to strict environmental standards in its own nation, Neptune Corporation has shifted its operations to developing nations. The firm has now been able to gain competitive advantage by avoiding costly pollution controls. This strategic move of Neptune would be considered ___

Immoral Decision

The principal function of the trade sanctions the United States had in place against Cuba were what?

Impoverish Cuba to lead to a downfall of the communist government

When schools emphasize respect for others, obedience to authority, honesty, neatness, being on-time, and use a grading system, they are______

Indirectly teaching cultural values and norms

What is the central message of individualism?

Individual economic and political freedoms are the rules on which society should be based

___ is broadly defined as the development of new products, processes, organization, management practices or strategies

Innovation

Products of the mind such as computer software, a screen play, music score, or a chemical formula for a new drug constitute ______

Intellectual property

According to Smith, Ricardo, and Hextor Olen theories a country's economy may gain if its citizens buy some products from other nations that could be produced in their home nation. What is the reasoning behind this?

International trade allows a country to specialize in items that can be produced most efficiently

How does privatization help stimulate gains in economic efficiency?

It provides incentives to new private owners to search for increases in productivity to enter the markets

The economic prosperity enjoyed by _____ during the 80s and 90s strained the world trading system and created the demand for increased protectionist measures.

Japan

Why is retaliation by government intervention a risky strategy?

Result in increased tariff barriers by the country that is being pressured

A positive economic change from 1960 to 2018 was seen in the____

Share of world output, by developing countries

Today communism, which includes state control over all economic activities the political norm found where ____

Small fringe nations

Those who attempt to achieve the same ideologies as that of communists without violent revolution and totalitarian dictatorship are called ______

Social democrats

Karl Marx promoted the idea of a ______ society in which the state owned the means of production, distribution and exchange

Socialist

The _____ system of a country encompasses the rules and regulations of behavior

Legal System

There are over 1.3 billion people living in India, which makes it a large market when measuring the number of potential customers. However, India is still considered a smaller market in economic terms because of _____

Limited purchasing power

Purchasing power parody is used to adjust gross national income in order to make a more direct comparison of _____

Living standards

Mod Shoes Inc. decides to move its manufacturing facility from Toledo to Jakarta because it will have access to lower costs of highly skilled labor. This choice reflects the concept of

Location specific advantages

During early globalization efforts outsourcing was typically confined to what type of activity

Manufacturing

At one time economic stagnation resulted in Great Britain because the coal mining and telecommunication industries were ____

Monopolies owned by the state

Solar Corp. won the bid to build and energy facility for a host country government. However, the execution of the contract has been delayed due to bureaucratic procedures in the less developed nation. In order to legally overcome their problems, Solar Corp. could resort to the payment of _______

Speed Money

The sale of state-owned enterprises to independent non-public investors is referred to as what?

Privatization

The average income if you're looking at human development for PPP should be sufficient to

Provide basic needs; such as food and shelter

Paul Krugman believed that a country that attempts to use strategic trade policy to establish a domestic firm in a dominant position in a global industry is most likely to ______

Provoke retaliation

According to ___ a government should use subsidies to support promising firms that are active in newly emerging industries.

Strategic trade policy

Factor endowments demand conditions related and supporting industries and ____ are the four broad attributes that make up Hoarders Diamond Model.

Strategy, structure

Domestic producers experience limited import competition when a VER (voluntary export restraint) is in place. Because of the fact that Japan is exporting less cars to the US, it is an advantage to domestic producers. As a result, these producers make extra profit because supplies are artificially limited by the import quota. This extra profits is called what?

Quota Rent

What was the main goal of GAAT?

Reduce trade patterns

People in the west tend to associate a ____ with a free market system, strong property rights protection and economic progress

Representative democracy

In some years the US government has paid wheat farmers an additional $0.50 on every bushel of wheat they sell. This money is an example of what?

Subsidy

Which statement reflects a pervasive finding in Hoarders study?

Successful industries within a country tend to be grouped into clusters of related industries

Which global institution has focused on making low interest loans to governments? Such as building a road or bridge.

The World Bank

In a business setting noblesse oblige refers to _____

The benevolent behavior that is considered the responsibility of successful enterprises

One advancement that has lowered the barriers many small firms face when building international sales

The internet

A ____ is considered an external stakeholder of an organization.

customer

The ____ developed by Rawls indicates that inequalities are justified if they benefit the position of the least advantaged members of society.

difference principal