IBA 350 Test 2
______ is a process in which an unbiased third party listens to both sides of a case and makes a decision in favor of one party or the other, based on an impartial analysis of facts
arbitration
Due to the larger market size of an economic bloc, member country firms are able to reduce their product prices because they can ________.
attain economies of scale
government intervention and trade barriers imposed by developed countries raise ______ for developing economies that supply them because tariffs are often disproportionately high
ethical concerns
which one of the following is the first step of developing strategies in a company?
examine the firm's specific strengths and weaknesses
which one of the following terms defines a government strategy aimed at handling or preventing the shipment of specific goods or trade with particular nations?
export control
Which of the following BEST defines maquiladoras?
export-assembly plants
Latrell produces items in British Colombia and sells them in the US
exporting
______ is the seizure of company assets with compensation
expropriation
applying home-country laws to people and situations abroad is a practice known as
extraterritoriality
Japan and large retail stores country risk
foreign investment laws
a specific region that is located within a nation is treated as if it were outside the nation's borders
foreign trade zone
strategy for managing country risk navrin is following
forming alliances with qualified local partners
Which of the following is a stage of regional integration in which member countries decide to remove tariffs and other barriers to trade within the bloc, but maintain trade barriers with nonmember countries?
free trade area
which of the following is a stage of regional integration in which member countries decide to remove tariffs and other barriers to trade within the bloc, but maintain trade barriers with non member countries
free trade area
Which of the following primarily focuses on ensuring the reduction of tariffs among certain countries and settling tradedisagreements?
general agreement on tariffs and trade
a firm's decision on how to position itself is part of its ______ strategy
global marketing
organizational structure blends the geographic area, product, and functional structure
global matriz structure
Raul buys goods from china and sells them in Argentina. what is he doing
global sourcing
when it comes to transforming political and legal systems, which active participant is considered the most important; operates at national, state, and local levels, and is responsible for creating and applying laws?
governments
expanding Canadian company to the US
home replication strategy
______ imposes limitations on the expenditure or outflow of tangible currency from a certain nation or on the influx of foreign currencies
currency control
which of the following includes organizations like NAFTA, the EU, and ASEAN?
regional trade organization
are monetary or other resources granted to a company by a government to assist in the manufacturing and promotion of products at decreased prices to improve the company's success.
subsidies
______ are taxes placed on imported goods that increase the final purchase price for consumers
tariffs
Which one of the following was the first major effort to systematically reduce trade barriers worldwide?
GATT
_____ is a governmental system that attempts to control most aspects of its citizens conduct both publicly and privately, including their values and beliefs
authoritarianism
which one of the following has occurred if consumers voluntarily refuse to patronize a certain business because consumers believe the business has acted inappropriately?
boycott
Which one of the following is a tariff imposed on goods brought into a country to offset subsidies awarded to manufacturers or exporters in the exporting country?
a countervailing duty
Which one of the following is TRUE of a foreign trade zone (FTZ)?
an FTZ receives goods meant for export
Since the 1970s, Singapore, Hong Kong, Taiwan, and South Korea have accomplished rapid economic growth by following ________.
an export-led development model
______ is made up of two critical features: limited government and the ability for citizens to own property and assets and attain individual wealth
democracy
______ depends on the interactions of supply and demand in order to. determine prices for products and services
market economy
Gaining political power in world affairs has enabled the EU to compete more effectively with the U.S. by ________.
developing a stronger defensive posture
which one of the following differences would NOT motivate a firm to adapt an international marketing program?
differences in national population
exported goods being priced lower than their typical value whether in home-country markets or foreign markets
dumping
in global business, firms create market segments by grouping countries on the basis of macro-level variables such as :
economic development
______ represent locations at the ports of entry in each country where government authorities inspect imported products and levy tariffs
customs
Lagoonia nation
rule of law
US law restricting US behavior in foreign countries
extraterritoriality
________ involves 21 nations, from both sides of the Pacific, and aims for increased, unrestricted trade and economic alliances among member and potential member countries.
APEC
Which of the following is the world's most advanced and largest regional economic bloc?
European Union
Which of the following was formed by three countries to increase market entrance, remove barriers to trade, establish investment standards, and encourage bidding on government contracts within the three countries participating in it?
North American free trade agreement (NAFTA)
The ________ is a multinational organization of more than 160 member countries dedicated to reducing barriers to international business worldwide.
WTO
which legal system is based on a comprehensive structure where laws are clearly written, accessible, and divided into 3 categories: commercial, civil, and criminal?
civil law
which one of the following legal systems is based on traditions, former cases, and legal models set by courts through the clarification and statutes, legislation, and previous rulings?
common law
Which one of the following involves reducing or removing barriers to trade, establishing shared external barriers, and permitting the unrestricted movement of goods, services, and factors of production within participating countries?
common market
in a ______ barriers to trade within a participating country are reduced or eliminated, shared external barriers are established, and unrestricted movement of goods, services, and factors of production is permitted
common market
which of the following represents a method of negotiation in which the objective is to settle any disagreements in a pleasant manner?
conciliation
which type of government seizure involves acquiring company possessions without any form of payment?
confiscation
Charlie Krishnamurthy
contract laws
______ assign rights, duties, and obligations to all parties involved in an agreement and include stipulations on the sale of goods, distribution of products, licensing, franchising, and joint ventures
contract laws
In the European Union, which one of the following makes decisions regarding economic policy, budgets, foreign policy, and the admission of new member countries?
council of the European union
In a(n) ________, which is the second level of regional integration, participating countries harmonize their external trade policies and adopt the same tariff and nontariff barriers on imports from nonparticipating countries.
customs union
which one of the following officially bans imports from and exports to a specific country in an attempt to impose a political punishment?
embargo
Regional integration enables member countries to gain bargaining power in world affairs by ________.
establishing a stronger political position as a united bloc
Which one of the following represents government approval given to a company that allows it to bring in certain products from foreign countries?
import license
the world bank, the world trade organization, and the United Nations conference on trade and development are examples of
international organizations
which term refers to understanding and administering laws, regulations, and rules that. are used to establish standards for conduct?
legal system
______ is a confrontational method of resolving international disputes that involves parties filing lawsuits against each other in order to product anticipated outcomes for themselves
litigation
Which form of government intervention in trade dictates that a company's exports must contain a certain amount ofhome-country inputs?
local content requirements
which of the following characteristics is related to economic freedoms?
market forces and the ability to easily implement commercial activities
many middle eastern countries practice both civil law and Islamic law. in this case, under which legal system are these countries ultimately categorized?
mixed system
to develop global products, many firms use ______, a collection of standardized components that are assembled into items tailored to specific market needs
modular architecture
FDI
most control
CCI candy and cookies
multi domestic industry
______ involves government seizure of a whole industry, which may or may not include any form of payment
nationalization
reporting relationships in an organization
organizational structure
which one of the following is true of political and legal environments in international business?
political and legal systems are interdependent
which of the following is a collection of official organizations that create a government, including legislative groups, political parties, lobbying groups, and trade unions?
political system
US executive following this strategy for managing country risk
proactive environmental scanning
which one of the following is a global economic principle created to limit unrestricted trade while guarding home-country businesses from overseas competition?
protectionism
______ is a function of a legal system
providing security for intellectual property
which one of the following encourages the need for global integration?
providing uniform service to global customers
______ are measurable limits set on the import of certain goods for a designated period of time
quotas
Which one of the following is a major factor in the growth of global commerce and in rising incomes worldwide?
reducing trade barriers
______ involves countries establishing agreements with one another for the purpose of minimizing obstacles concerning trade and business ventures
regional economic integration
in Iran, systems are based on spiritual beliefs, ethical codes, and moral standards that are directed by a supreme being. Iran operates under ______
religious law
______ refers to a legal system where rules are clarified, publicly revealed, justly applied, and valued by all
rule of law
as a way to anticipate risk, management participates in ______, which is used to evaluate possible risks and threats to the company
scanning
rigid cost-plus pricing involves:
setting a fixed price for all export markets
which of the following is based on a collectivist mentality and requires that all capital be put back into the state and used as a source of production and not profit?
socialism
OPEC is an example of a
special interest group
big green is best described as a
special interest group
______ include establishments such as OPEC and OECD that work to improve the development of specific communities
special interest groups
which type of country risk produced by a governmental system involves threats or use of force or violence in order to attain some kind of political goal?
terrorism
______ is the degree to which organizations disclose substantial information about their financial position and accounting measures
transparency
If ABC International establishes export assembly locations in order to create mechanisms and completed goods that are destined for other countries, it is countering government-imposed regulations on trade by ________.
utilizing a foreign trade zone
