Global Dimensions of Business Midterm
caste
A closed system in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime
quota
A direct restriction on the quantity of a good that may be imported
voluntary export restraint
A quota on trade that is imposed by the exporting country
free trade
A situation in which government does not attempt to influence what its citizens can buy from another country or what they can produce and sell to another country.
values
Abstract ideas about what a society believes to be good, right and desirable
HDI
Amartya Sen influenced the UN to develop the measurement
True
Arguments for government intervention are political and economic (T/F)
higher
As a result of US sugar subsides, between 2010 and 2013 the US sugar prices averaged between 64% and 92% ________ than the world price of sugar.
copyright
Authors, composers, playwrights, artists, and publishers are protected by
UNESCO
Based on the idea of establishing peace through moral and intellectual collaboration
consumers only willing to pay higher prices for brands like Apple; piracy in China reduces demand for electronics at competitive prices; Chinese do not want to shop at huge mega-stores
Best Buy had several challenges in China. (3)
False
Boeing plans to continue with current outsourcing partners for the foreseeable future. (T/F)
administrative policy
Bureaucratic rules designed to make it difficult for imports to enter a country.
DIAGRAM
Ch. 4 Diagram - culture norms
DIAGRAM
Ch. 6 Diagram - Porter's Diamond of Competitive Advantage
DIAGRAM
Ch. 6 Ethics Diagram
individualistic
Cultures where personal accomplishment and freedom are highly valued are generally considered to be
4%
Current annual tariff rate on global manufactured products as a percent value
individualism
David Hume, Adam Smith, and John Stuart Mill were champions of
violent revolutions
Early 20th century Communists believed that socialism could only be achieved through
Buddhism
Founded in the 6th century B.C. in what is now Nepal, it emphasizes a Noble Eightfold Path for transformation
land, labor, capital, energy
Four factors of production
French, Spanish, Mandarin (Chinese), Arabic
Four major languages important for business after English
True
Free trade is a positive sum game (T/F)
doesn't consider the cost of living
GNI per person is misleading because
Right-wing totalitarianism
Generally permits some individual economic freedom but restricts individual political freedom
fostered hard work and capitalism
German sociologist Max Weber argued the existence of a protestant "work ethic" which he suggested
subsidy
Government payment to a domestic producer
False
Governments always act in the national interest when they intervene in the economy (T/F)
developing nations
Greatest increases in FDI in recent years has been to
TaoBao's messaging system
Has been cited as a main reason for its edge over eBay in China
strata
Hierarchial social categories often based on family background, occupation, and income are referred to as
by acquiring a majority interest in an existing company
How did Best Buy enter China in 2006?
Japan
In 2010, China overtook _____ to become the 2nd largest economy in the world based on GDP
True
In Islamic law, the payment or receipt of interest is outlawed by the Koran (T/F)
Tribal totalitarianism
In Kenya, members of the Kikuyu have dominated the political system under this type of totalitarianism
supply and demand
In a market economy, the interaction of ______________ determines the quantity in which goods and services are produced
increase
In the first two decades of the WTO, did trade disputes between nations increase or decrease from disputes during GATT?
command
In this type of economy, the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold.
high
Job security, career patterns, retirement benefits, and a strong need for rules and regulations are characteristics of a ____ uncertainty avoidance culture.
ad valorem tariff
Levied as a proportion of the value of an imported good
False
Liability laws are generally least extensive in developed nations (T/F)
declining barriers to trade, technology change
Macro factors that underly the trend towards greater globalization
service = 79.4%, manufacturing = 19.5%, agriculture = 1.1%
Match most recent US labor % with correct sector. (service/ manufacturing/ agriculture) (1.1%, 79.4%, 19.5%)
United Nations
Membership in this global institution now numbers 193 countries committed to preserving peace through international cooperation and collective security
Marx
Modern socialists trace their roots to
Christianity
Monotheistic religion that grew out Judaism
Islam
Monotheistic religion that grew out of Judaism and Christianity, with the objective of life to fulfill the dictates of His will in the hope of admission to paradise
ethics
Moral principles that are used to guide and shape behavior
logistics
Most difficult for Beoing
Christianity
Most widely practiced religion in the world
False
Nonverbal cues, such as hand gestures, are universally accepted in all cultures (T/F)
mores
Norms that are more widely observed, have greater moral significance than other norms, and are central to the functioning of a society and to its social life
Confucianism
Not a religion, but a system of ethics, and was the official ethical system of China until the 1949 Communist revolution
Foreign Direct Investment
Occurs when a company invests resources in business activities outside its own country
International Court of Justice
Of the 6 principle organizations of the United Nations, which one is not located in New York?
inequalities in a culture
Power distance refers to
Moore's Law
Predicts that the power of microprocessor technology doubles and its cost of production fall in half every 18 months
OECD
Promotes policies that improve economic and social well-being of people around the world
political economy
Refers to the interdependence of political, economic, and legal systems in a country
folkways
Routine conventions of everyday life
local content requirement
Says that some specific fraction of a good must be produced domestically.
dumping
Selling goods in a foreign market for less than their cost of production or below their "fair" market value is
religion
Shared beliefs and rituals concerned with the realm of the sacred
norms
Social rules and guidelines that prescribe appropriate behavior in particular situations
high gas and oil prices
Supported Russia's healthy economic growth during much of the 2000s
trademark
Symbols and names that designate products are protected by
bribery of foreign officials
The Foreign Corrupt Practices Act prevents
Murabaha
The Islamic banking method whose contract is most widely used and easiest to implement
Mudarabah
The Islamic banking method whose contract is similar to a profit-sharing scheme
kyat
The Myanma currency
ethnocentricity
The belief in the superiority of ones own ethnic or cultural group.
economic risk
The global financial crisis that arose in 2008-2009 is an example of the dramatic nature of
civil law system
The legal system based on a detailed set of laws organized into codes
common law system
The legal system based on tradition, precedent, and custom is referred to as the
legal risk
The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is a type of
absolute advantage
The main tenet of this trade theory is that a country can produce a product more efficiently than any other country.
mercantilism
The main tenet of this trade theory is that it is in a country's best interests to maintain a trade surplus, to export more than is imported.
Geert Hoftstede
The most famous study of how culture relates to values in the workplace was undertaken by
private action
The paying of protection money by domestic and foreign business in Russia was considered to be a
True
The percentage increase in US exports to the rest of the world during 2000-2011 (T/F)
Uruguay
The round that established the WTO
privatization
The sale of state-owned to private-investors, such as what happened in Britain in the 1970s and 1980s is a process known as
globalization
The shift towards a more integrated and interdependent world economy
political system
The system of government in a country is referred to as its
culture
The system of values and norms that are shared among a group of people and that when taken together constitute a design for living
cross-cultural literacy
The understanding of how cultural differences across and within nations can affect the way business is practiced
Confucian
The values of long-term versus short-term orientation are derived from _________ teachings.
Hinduism
The world's oldest major religion, its founding is not linked to a particular person, nor does it have an officially sanctioned sacred book
False
There has never been a time when the majority of the world's population lived under Communist rule. (T/F)
Smoot-Hawley
This act erected enormous barriers to trade and forced a global tariff war, which threw the world further into the great depression.
Porter's national diamond of competitive advantage
This explanation of international success suggests there are 4 broad attributes that help shape the environment.
G2O
This global institution compromises the financial ministers and central bank governors of the largest economies in the world, plus the EU and the European Central Bank
World Trade Organization (WTO)
This global institution is responsible for administering the terms of the general agreement on tariffs and trade
World Bank
This global institution was established in 1944 to promote economic development
IMF
This global institution was established to maintain order in the world monetary matters
patent
This grants an inventor exclusive rights to his/her invention or process
deregulation
This involves removing legal restrictions to the free play of markets
GINI
This is a measure of income distribution
specific tariff
This is levied as a fixed charge for each unit of a good imported.
product-life cycle theory
This theory helps to explain that production becomes more international as the product matures.
new trade theory
This theory suggests that trade increases the supply of goods available while decreasing costs due to economies of scale, and that in industries where total output required to achieve economies of scale represents a large proportion of global output, there may only be a few competitors.
Theocratic totalitarianism
This type of totalitarianism is found in states where political power is monopolized by a party, group, or individual that rules by religious principles
Communist totalitarianism
This version of collectivism advocates that socialism can be achieved only through a totalitarian dictatorship
Mexico
To what country are some US candy producers moving?
gross national income (GNI)
Total annual income by residents of a country is measured as
stock of FDI
Total cumulative value of foreign direct investment referred to as
Introduction of containerization
Transportation costs have declined thanks to the
black economy
Unrecorded cash transactions and barters are considered part of the
risks, benefits, costs
What are the three components in the "Overall Attractiveness" of a country for investment?
life expectancy at birth, educational attainment, the sufficiency of average incomes to meet basic needs for life
What are the three measure considered in HDI?
totalitarian state run by the military
What is a junta?
Burma
What is the other name for Myanmar?
signals to other adopters that the nation will treat the convention's rules as part of its law
What is the significance of a nation adopting the United Nations Convention on Contracts for the International Sale of Goods (CIGS)?
economy reform begets democracy
What underlies the fairly permissive attitude that many Western countries have adopted regarding human rights violations in China?
1947
When did India gain independence from Britain?
late 1970s
When did the People's Republic of China open to foreign investments?
mixed economy
When the US government purchased 80% of AIG, the action was characteristics of a
China
Which of the following has the largest share of world exports?
protecting foreign governments
Which of the following is NOT an argument for government intervention in trade?
universal suffrage for all citizens
Which of the following is not a safeguard of representative democracy?
Smith
Which of the following philosophers coined the phrase "the invisible hand" that promotes the good of the nation while serving its own interest?
indulgence versus restraint
Which of the following was most recently added of the cultural dimensions?
market economy
Which one is considered to be a requirement for innovation and entrepreneurship
Samuelson
Which theorist is credited with the statement: Being able to purchase groceries 20% cheaper at Wal-Mart (due to international trade) does not necessarily make up for the wage losses (in America)?
mercantilism
Which trade theory is associated with being a "zero-sum game"?
market for industrial goods
Which type of market is typically more global?
manufacturing
Which were the first activities that companies outsourced?
Nobel Peace Prize winner
Who is Aung San Suu Kyi?
President of Myanmar
Who is Thein Sein?
Hecksher-Ohlin
Who is best known for factor endowment?
sell more in countries where it outsources, use best expertise available
Why does Boeing outsource its aircraft manufacturing?
it is weakly enforced
Why doesn't the Paris Convention for the Protection of Industrial Property eliminate the theft of intellectual property?
populations are too large
Why is pure democracy impractical?
