MKT 3600 Exam 2

trade secret

A ___________ is any information not generally known to the public and that a business wishes to hold confidential.

C) free movement of services, people, and capital among the members.

A common markets is a customs union with the addition of: A) shared pricing legislation. B) shared economic goals. C) free movement of services, people, and capital among the members. D) shared movement of capital.

trademark

A shape, color, design, phrase, abbreviation, or sound used by merchants or manufacturers to designate and differentiate their products is known as a ____________.

D) recycling and processing of Virginia garbage to yield fuel and fertilizer.

An example of environmental dumping is not found in the: A) nuclear waste shipments to developing nations. B) maquiladora plants of Mexico, located near the U.S. border and operating at lower environmental standards than would be required in the U.S. C) garbage shipments from New Jersey to developing nations. D) recycling and processing of Virginia garbage to yield fuel and fertilizer.

C) quicker, cheaper, and more private than the U.S. court system.

Arbitration is often preferred when the contract stipulates U.S. law and one of the litigants is foreign because it is: A) easier to influence an arbiter than a judge. B) less bureaucratic than the court system of any country. C) quicker, cheaper, and more private than the U.S. court system. D) more discreet, although more costly than the court system.

B) sovereignty rights.

Arguments for trade restrictions include all but: A) fair competition and retaliation. B) sovereignty rights. C) national defense, infant industry, and job protection. D) punishment of offending nations.

D) the labor rate is not all of the labor cost.

Counterarguments to the "protect domestic jobs from cheap foreign labor" argument include that: A) wage rates are incidental. B) comparative advantage recognizes cheap labor as a competitive right. C) cheap foreign labor is a natural occurrence. D) the labor rate is not all of the labor cost.

C) selling a product abroad for less than its production cost or cost in the home market.

Dumping is: A) selling a product at its domestic market value. B) exporting a product to a third country without correct documentation. C) selling a product abroad for less than its production cost or cost in the home market. D) selling a product abroad tax-free and with an extended warrantee.

D) involves a common market and a high degree of political integration.

Economic integration: A) is essentially a marketing program whose goal is to increase market penetration. B) has not been attempted since the dissolution of the Soviet Union. C) depends on the cultural similarities of its members. D) involves a common market and a high degree of political integration.

B) voluntary export restraints.

Examples of orderly marketing arrangements are: A) textile agreements. B) voluntary export restraints. C) Jamaica Agreement treaties. D) Japanese truck export quotas.

D) ability to adjust to sudden changes by making radical policy changes.

Government stability refers to all but one of the following of a government: A) ability to keep itself in power. B) policies, that they endure over time. C) ability to hold to predictable fiscal, monetary, and political policies. D) ability to adjust to sudden changes by making radical policy changes.

A) polychronic approach along with nonlinear processes.

High context cultures tend to share this attribute: A) polychronic approach along with nonlinear processes. B) need to delegate tasks. C) willingness to let others talk. D) respect for nonachievement.

A) a society's level of comfort with uncertainty.

Hofstede's uncertainty avoidance measure captures: A) a society's level of comfort with uncertainty B) social anxiety and the use of alcohol in its reduction. C) avoidance of aggressive behavior in a society. D) individual anxiety about uncertainty in a cultural context

B) they decrease the operating costs of local manufacturers compared to foreign manufacturers, thereby harming the competitive profile of the foreign firms.

Home country subsidies can be retaliatory because: A) they may discriminate against companies that have not contributed to the president's campaign. B) they decrease the operating costs of local manufacturers compared to foreign manufacturers, thereby harming the competitive profile of the foreign firms. C) they reduce the cost basis of the foreign manufacturers. D) they are funded by taxpayers, which is all of the home country's nationals.

C) are the nation's "dues" to the IMF.

IMF quotas are determined by the relative size of a nation in the global economy and: A) limit trade among IMF members. B) may run in arrears for five years. C) are the nation's "dues" to the IMF. D) are payable in SDRs.

B) responses to be freely displayed.

In an affective culture (Trompenaars), emotions are seen as: A) private, and therefore, not displayed. B) responses to be freely displayed. C) a weakness, and therefore hidden. D) appropriate to share with family members only.

C) the developing economies have more ambiguity and lack formal institutions by definition, so informal institutions step into the breach.

In developing economies, informal institutions tend to play a greater role than in developed economies, possibly because: A) these economies have not learned about formal institutions. B) informal institutions are less expensive to develop. C) the developing economies have more ambiguity and lack formal institutions by definition, so informal institutions step into the breach. D) developing economies show cultural preference for informality.

D) outlaw tariffs for U.S. imports.

In the U.S., the Smoot-Hawley Tariff Act did not: A) lead to the Wall Street crash of 1929. B) establish the highest tariffs the U.S. has known. C) intend to protect U.S. agriculture. D) outlaw tariffs for U.S. imports.

A) Not really. Trade relationships among nations can be exceedingly complex, and the WTO supports fair competition, which may mean freer trade rather than free trade.

Is the WTO's idea of "fair competition" really a code phrase for free trade? A) Not really. Trade relationships among nations can be exceedingly complex, and the WTO supports fair competition, which may mean freer trade rather than free trade. B) Yes. The WTO supports free trade and the term fair competition is used to obtain buy-in from nations opposed to trade liberalization. C) Yes, the WTO stands for trade liberalization, which requires transparency, economic reform, and no protectionism, regardless of the member nation's economic situation. D) Yes, the WTO is in favor of free trade and only free trade under all circumstances.

C) the two basic types of social institutions, one chosen, the other not.

Kinship and free association are examples of: A) types of social institutions that, along with the family and the military, represent the basic institutions. B) social clubs that operate as microcosmic cultures. C) the two basic types of social institutions, one chosen, the other not. D) choices people make about their friendships.

religious law

Legal systems are based on __________, common law, or civil law.

C) a vital trading bloc in Latin America known as the Common Market of the South.

Mercosur or Mercosul is: A) a customs union between Brazil and Argentina. B) a customs union between Paraguay, Bolivia, and San Salvadore. C) a vital trading bloc in Latin America known as the Common Market of the South. D) a former trading bloc that was headed by Venezuela.

B) university scheduling patterns.

Monochronic time is best illustrated by: A) high context cultures such as Arab and Asian cultures. B) university scheduling patterns. C) a rock concert. D) all of these choices.

A) the U.S. follows the per se concept, wherein actions are illegal whether they have done harm.

One difference between the U.S. and EU approach to antitrust law is that: A) the U.S. follows the per se concept, wherein actions are illegal whether they have done harm. B) the EU avoids competition, whereas the U.S. seeks it. C) the U.S. focus is on impact on competition, whereas the EU focus is on the consumer. D) the EU forbids market dominance by cartels, no matter the conditions, whereas the U.S. does not.

VER

Orderly marketing arrangements are a type of ________.

B) modern highway robbers who exploit loopholes in IP protection.

Patent trolls are: A) the numerical controls issued on patents, standardized by the Paris Convention. B) modern highway robbers who exploit loopholes in IP protection. C) a record of all patents, recorded by the UN. D) the organizing system for patent review that is kept internationally by OECD.

D) exclusive rights to use, sell, manufacture, or exploit the invention or process.

Patents are government grants that give the owner: A) rights to the invention but does not prevent others from copying the invention. B) the rights to sell the invention, but only beyond the patent-granter's borders. C) the exclusive right to use the fundamental ideas on which the invention is based. D) exclusive rights to use, sell, manufacture, or exploit the invention or process.

affective

People in neutral cultures (Trompenaars) tend to withhold emotional expression, while people in _____________ cultures are much more expressive.

particularist

People in universalist cultures apply rules across the board, whereas people in ___________________ cultures consider the context before they apply the rule.

B) limits, established by the importer.

Quotas are a quantitative barrier that sets: A) expectations on domestic and foreign sales. B) limits, established by the importer. C) precise quantities of imports or exports, based on price. D) goals, established by the exporter.

A) negatively, because they undercut the nondiscrimination principle of the WTO.

Regional trade agreements such as NAFTA impact the WTO: A) negatively, because they undercut the nondiscrimination principle of the WTO. B) negatively, because the U.S. and the EU do not have a regional trade agreement between them. C) negatively, because they compete with the WTO for membership, given that nations can belong to only one trade group. D) positively, because they extend most-favored-nation status to more nations.

A) it influences behavior through attitudes and beliefs.

Religion is a part of a group's culture because: A) it influences behavior through attitudes and beliefs. B) groups choose their religion, and culture is chosen. C) it is how a group worships. D) religion is culture.

A) creates unfair competition based on lower costs because the exporting country

Social dumping occurs when an exporting country: A) creates unfair competition based on lower costs because the exporting country provides little social support system to the worker. B) imposes an export tax on domestic businesses that export, to compensate for the opportunity cost to the domestic market. C) targets markets that consist of specific vulnerable groups in the importing country. D) exports good that are not sellable in the domestic environment due to hazards and safety issues.

A) no proof of the manufacturer's negligence.

Strict liability requires: A) no proof of the manufacturer's negligence. B) the buyer to take risks on the purchase of a newly designed product. C) the manufacturer knows that the design or manufacture is inferior. D) responsibility for the product throughout its life cycle.

C) aid a nation's export businesses or protect its domestic businesses from imports.

Subsidies are problematic because they: A) violate UN agreements. B) are administered as a form of political patronage. C) aid a nation's export businesses or protect its domestic businesses from imports. D) encourage nationalization.

) the U.S. measures small on the power distance dimension.

That almost everyone in the U.S. self-identifies as middle class suggests that: A) the U.S. is a successful meritocracy. B) the U.S. measures small on the power distance dimension. C) the U.S. measures low on the uncertainty avoidance dimension. D) the U.S. economy has failed to support an aristocracy.

D) an informal, cognitive institution.

The Chinese concept of guanxi is an example of: A) a favorite cooking method of Chairman Mao. B) a regulative, formal institution. C) taken-for-granted approaches to friendship relations. D) an informal, cognitive institution.

C) some of the EU member countries.

The EMU (the European Monetary Union or the Economic and Monetary Union) has established the euro, a currency that is used in: A) the Bank for International Settlements and the IMF. B) all of the EU and much of the rest of Europe. C) some of the EU member countries. D) all of the EU.

C) substantial, since EU standards, especially in the areas of ecology and sustainability, impact any firm that wants to do business in the EU.

The EU's impact on international business is: A) substantial, because the EU is a major exporter into developing nations. B) negligible, given that the EU members tend to trade with each other. C) substantial, since EU standards, especially in the areas of ecology and sustainability, impact any firm that wants to do business in the EU. D) not significant, because the EU members need to trade with other developed economies.

D) prohibits bribery by American companies abroad.

The Foreign Corrupt Practices Act (FCPA) is U.S. legislation that: A) allows bribery in foreign dealings when culturally sanctioned. B) outlines bribery practices that are allowed abroad but not in the U.S. C) outlines and prohibits foreign bribery practices by foreign nationals in foreign nations. D) prohibits bribery by American companies abroad.

pragmatic-normative

The Hofstede ____________________ dimension is a measure of how people deal with the unexplainable in their lives.

B) middle-income and creditworthy poor nations.

The IBRD is a major institution of the World Bank whose function is to loan to: A) private individuals in developing nations whose entrepreneurial efforts support development. B) middle-income and creditworthy poor nations. C) private-sector development-focused firms. D) countries whose income levels make them not creditworthy.

D) and the criminal penalties apply to foreign companies even if the conspiracy took place outside the U.S.

The U.S. antitrust law contains both civil and criminal penalties: A) neither of which can be applied outside the U.S. B) but their application to foreign companies is limited to actions that have taken place within the U.S. C) and they can be administered by foreign courts. D) and the criminal penalties apply to foreign companies even if the conspiracy took place outside the U.S.

A) establish and help implement rules of trade among nations to increase trade flows.

The WTO exists to: A) establish and help implement rules of trade among nations to increase trade flows. B) ensure that the Industrial Revolution continues to support the economies of developed nations. C) encourage development of trade barriers. D) monitor and reduce the amount of trade from developing nations to developed nations.

freer

The WTO's second principle is _____________ trade through negotiation.

quota

The ___________ is an NTB that limits the number of goods a country will permit to be imported during a specific period.

World Bank

The ___________ was established at Bretton Woods to address economic development.

fair competition

The ____________ argument suggests duties that would bring imported goods up to the price level of goods in the domestic market.

OECD, Organisation for Economic Cooperation and Development

The _____________, a group of developed countries, is known for its individual country surveys and other research studies.

D) direct, unsubtle, and unambiguous: What you say is what you mean.

The explicit communicator in an LC culture (Hall) is: A) trying to close a deal and catch the next flight home, which was booked before arrival. B) subtle, nuanced and indirect: Meaning accrues through not exactly what is said or done. C) ready to act and tends to communicate in an indirect and polite way. D) direct, unsubtle, and unambiguous: What you say is what you mean.

C) tariffs on certain barbiturate imports into the U.S.

The imposition of standards is a way to establish nontariff barriers, and the following are examples of the imposition of standards, except for: A) Japan's refusal to import light mayonnaise containing potassium sorbate. B) Canada's categorization of orange juice with added calcium as a drug, subject to special requirements. C) tariffs on certain barbiturate imports into the U.S. D) the prohibition of imported drugs at the consumer level in the U.S.

most-favored-nation (MFN)

The principles of the WTO include trade without discrimination, known as the ____________ principle.

B) they often are based on legislation, and noncompliance can carry punishment.

Trade obstacles are considered to be legal forces because: A) they are protected by the courts. B) they often are based on legislation, and noncompliance can carry punishment. C) customs is controlled by a country's national police or army. D) their compliance is costly to the firm and the consumer.

B) a shape, color, design, sound, phrase, abbreviation by which the product is designated.

Trademarks can be: A) any visual property consciously associated with the product. B) a shape, color, design, sound, phrase, abbreviation by which the product is designated. C) a mark under which the firm does business. D) a design associated with the product, using color and shape.

C) their differentiation between public and private life is spread out freely (diffused).

Trompenaars's diffuse cultures are called diffuse because: A) diffusion exists to moderate cultural differences. B) specific responsibilities are spread over a wide area, that is, non hierarchical. C) their differentiation between public and private life is spread out freely (diffused). D) they extend the concept of culture to religion and other institutions.

D) whether rules or relationships regulate behavior.

Trompenaars's universalism-particularism dimension addresses: A) the degree to which the individual (particularist) is the focus of social attention. B) which matters most to people in the society, universal goodness or particularist emotions. C) a culture's inclination to have a global foreign policy. D) whether rules or relationships regulate behavior.

FALSE

True/False: Although India is a member of the WTO and has benefited greatly from increased trade as a result of WTO agreements, China is not yet a member.

TRUE

True/False: Arbitration provides foreign businesses a forum other than the U.S. court system to address disputes that involve U.S. sellers or buyers.

FALSE

True/False: Concession dumping is a type of trade discrimination.

FALSE

True/False: Fair competition is a strong rationale for trade barriers.

FALSE

True/False: Feminine cultures in Hofstede's dimensions care about relationships and are not focused on business success. For them, it is quality of life that matters.

TRUE

True/False: Hofstede describes his pragmatic versus normative dimension as dealing with Virtue regardless of Truth.

TRUE

True/False: Hofstede's individualism-collectivism dimension measures the degree to which people tend to be integrated into groups.

TRUE

True/False: In a customs union, common external tariffs are added to an existing free trade area (FTA), as found in the Southern African Customs Union and Mercosur.

TRUE

True/False: In high context cultures, people tend to form long-lasting relationships that endure over time.

FALSE

True/False: Incoterms are established by the UN Commission on International Trade.

FALSE

True/False: Japanese cultural values suggest that in Japan, antitrust law against cartels would be strictly enforced.

TRUE

True/False: New institutional theory suggests that institutions be understood as collections of rules and codes of conduct that limit behavior.

FALSE

True/False: Only in communist countries do governments own the factors of production.

FALSE

True/False: Religion is not an important aspect of culture in countries that are secular where the church and state are split.

FALSE

True/False: The Bretton Woods Conference established the European Union currency, the euro.

FALSE

True/False: The U.S. avoids extraterritorial application of its laws.

TRUE

True/False: The U.S. enforcement of EEOC law in U.S. companies operating abroad is an example of extraterritoriality.

TRUE

True/False: The UN Convention on the International Sale of Goods (CISG) has established legal rules and outlined the rights and obligations of the buyer and seller.

TRUE

True/False: The UN International Court of Justice (ICJ) hears cases that involve disputes between national governments.

FALSE

True/False: The WTO supports trade with discrimination as a basic right of trading nations.

FALSE

True/False: The World Bank is made up of one large institution, the International Bank for Reconstruction and Development (IBRD).

TRUE

True/False: The World Intellectual Property Organization (WIPO) is a UN agency that administers 24 intellectual property treaties.

FALSE

True/False: The length of the investment in a foreign country has no impact on the risk assessment for that investment. What matters are the economic and political situations in the country.

FALSE

True/False: The national defense argument for trade restrictions is based on the development level of the country.

TRUE

True/False: To protect an infant industry, trade restrictions might be effective.

FALSE

True/False: Trompenaars's achievement versus ascription dimension describes social status based on what one does or who one is. The United States is a culture in which people build who they are through work, so its social status tends to be based on ascription.

FALSE

True/False: Trompenaars's dimension of universalism versus particularism measures whether rules or rewards regulate behaviors.

TRUE

True/False: U.S. ocean shipping companies are benefiting from U.S. government subsidies.

FALSE

True/False: Voluntary export restraints are imposed by the importing nation to avoid violating WTO rules.

FALSE

True/False: When government-owned companies compete with private companies, the private companies have the advantage.

TRUE

True/False: Your neighbor's business is cutting down an acre of first-growth, virgin forest and planting a lawn and garden beds at their headquarters. You are likely to be in an Anglo culture where domination of nature seems normal.

D) normative and cognitive.

Under new institutional theory, institutions can be categorized as formal and informal, and the informal institutions can be further categorized as: A) effective and ineffective. B) informally cognitive and formally cognitive. C) normal and abnormal. D) normative and cognitive.

A) the exporting country's government.

Unlike quotas, voluntary export restraints (VERs) are imposed by; A) the exporting country's government. B) the importing company. C) the importing country's government. D) either the importing or exporting country's government; what matters is that they

B) customs union.

When FTA members add shared external tariffs to their agreement, they have formed a: A) trade conglomerate. B) customs union. C) duties agreement. D) free trade association, such as NAFTA.

D) business loses its right to hire new employees.

With privatization, all of these may occur, except: A) government control of business management may be increased. B) assets are transferred from the public sector to the private sector. C) state activities are moved into private management through contracts. D) business loses its right to hire new employees.

International Law

__________ describes the set of rules nations have agreed to follow to help set the context for stable relationships among nations.

Copyright

___________ gives intellectual property protection to computer software in the U.S. and the EU.

Ascription

______________ cultures consider who a person is in terms of his or her family lineage, age, or other attributes.

Voluntary export restraints (VERs)

_________________ are export limits imposed by the exporting nation, at the request of the importing nation.