International Business

False

1. Critics of globalization maintain that the apparent decline in real wage rates of unskilled workers owes far more to a technology-induced shift within advanced economies toward jobs that require significant education and skills.

Heckscher-Ohlin

A capital intensive country exports products that are capital intensive. Which theory is this an example of?

Collectivism

A political system that stresses the primacy of collective goals over individual goals is called

Low uncertainty avoidance

According to Geert Hofstede's study, which of the following cultural dimensions would be characterized by a greater readiness to take risks and less emotional resistance to change?

The US and Canada

Hofstede's results, as might be expected, showed that nations such as _____ scored low on long-term orientation.

True

In industries where economies of scale are important, both the variety of goods that a country can produce and the scale of production are limited by the size of the market.

True

In mixed economies, governments also tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests.

privatization

In several Western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to _____.

politically stable developed and developing nations that have free market systems.

Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in:

their domestic consumers are demanding.

Porter argues that a nation's firms gain competitive advantage if

First-mover advantages

Porter's diamond of competitive advantage includes all of the following except

False

Question (5 points each) 1. The most rigid system of social stratification is a class system.

privatizing state-owned enterprises

Since the collapse of communism over a quarter of a century ago, formerly communist nations have transformed their economies by globalizing their markets. This involves

Patent

The Research and Development division of a company has recently designed a new coffee vending machine that is likely to sell very well in the market. It is compact, user-friendly, and provides unprecedented efficiency in terms of cost per cup. Consequently, the company fears that its competitors would soon mimic the design of their product and to protect its product, it is now seeking a _____ for the same.

Power distance

The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities.

purchasing power parity (PPP)

The ________ adjustment allows for a more direct comparison of living standards in different countries.

Market economy

The economic freedom associated with a ________ creates greater incentives for innovation and entrepreneurship than either a planned or a mixed economy.

Executives are exposed to different ways of doing business

The emphasis on individualism in the United States results in which of the following advantages?

Japan

The group is the primary unit of social organization in

encouraging vigorous free and fair competition among private producers

The role of the government in a market economy involves

True

The theories of Smith and Ricardo show that a country should engage in international trade, even for products that it is able to produce for itself.

Free trade

The theory of comparative advantage provides strong rationale for supporting the idea of _____.

Trade

Which is not a factor of production?

Its Currency

Which is not a primary determinant of a nation's rate of economic development?

Principle of mercantilism

Which of the following argues that it is in a country's best interests to maintain a trade surplus?

Trade and surplus

Which of the following arises when a country is exporting more goods and services than it is importing?

Increasing outsourcing of services

Which of the following is a consequence of globalization?

In a planned economy, the state owns all means of production.

Which of the following is true about planned economies?

Factors such as domestic demand and domestic rivalry determine nations' dominance on production.

Which of the following observations is consistent with Michael Porter's theory of national competitive advantage?

The World Trade Organization

Which organization is responsible for policing the world trading system?