Week 1
Sanjay purchased a computer for $500 in 2018. Compared to the $900 computer that he purchased in 2011, the new one seems better in terms of the price he has paid and the power of the microprocessor technology. This is best explained by
Moore's law
When Steve Jobs and Steve Wozniak cofounded Apple, they were acting as __________ since they were the first to commercialize this innovative new product.
entrepreneurs
A form of government in which political power is monopolized by a party, group, or individual that governs according to religious principles is called what type of totalitarianism?
theocratic
Fenton Incorporated plans to do business with a company located in the Leone Republic, a common law country. The companies have agreed to draft the business contract in the Leone Republic. Since the contract will be drafted under a common law framework, it will be
totalitarian dictatorship.
As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.
False
In recent years, the economies of the world's nation-states have become less intertwined as a result of international trade. True or False
False
What country has seen a relative decline in its share of world output between 1960 and 2018?
United States
A country that has __________ is an unattractive choice for international business.
a closed totalitarian dictorship
Dominick has analyzed the overall attractiveness of doing business with three possible countries and has determined that Country A is the best choice based on the potential for huge economic growth that should occur there because of recent advances in technology. Which factor of overall attractiveness is Dominick basing his decision on
benefits
The Simpson Group decided against doing business with a country in Central America because the country exercises tight control over prices and output, prohibits private enterprises from operating in most sectors of the economy, and severely restricts foreign direct investment and international trade. In other words, this country is against the practice of
deregulation
A country that abolishes laws that regulate private enterprises and removes price controls is in the process of
deregulation.
According to the UN Charter, one of the four purposes of the UN is to
develop friendly relations among nations.
A macro factor underlying the trend toward greater globalization is the
dramatic developments in information processing and other technologies.
Opponents to globalization believe that when U.S. companies outsource service activities, such as call centers, to a lower-cost foreign supplier, it results in
higher unemployment in wealthy advanced economies such as the United States.
In the United States, citizens have the freedom to pursue the economic and political activities that interest them. This is an example of the philosophy of
individualism.
Free trade alone, some argue, is a necessary but not sufficient prerequisite to help "highly indebted poorer countries" (HIPCs) bootstrap themselves out of poverty. They also recommend implementing
large-scale debt relief.
What is one of the three measures used to determine the Human Development Index (HDI) of a country?
life expectancy at birth
In 2017, the Brazilian government transferred the state ownership of the electric company, the airports, highways, and ports to private investors to stimulate the economy. This is an example of
privatization
Anastasia asked her assistant to determine the gross national income of six different countries by evaluating the GNI against the cost of living in the United States. What measure is Anastasia asking her assistant to use?
purchasing power parity
The United Nations Convention on Contracts for the International Sale of Goods (CISG) was introduced to
resolve disputes that arise in international trade regarding which country's laws to apply.
One suggestion for helping poor countries enjoy the benefits of free trade is for richer nations to reduce barriers to importing products from those nations particularly for __________ and agricultural products.
textiles
The base for the adjustment of purchasing power parity is the cost of living in
the United States.
Miller Plastic Group is considering two different countries for their upcoming expansion. When the board was reviewing the financial figures of the countries, the chief financial officer reminded board members that the figures might not tell the entire story as some economic activity could be taking place in the form of barter agreements and cash transactions that are never recorded. What is the CFO referring to?
the shadow economy
What political system has a government in which one political party exercises absolute control over all spheres of human life and doesn't allow opposing political parties to exist?
totalitarianism
Fenton Incorporated plans to do business with a company located in the Leone Republic, a common law country. The companies have agreed to draft the business contract in the Leone Republic. Since the contract will be drafted under a common law framework, it will be
very detailed with all contingencies spelled out.
Which statement best supports the claim that greater uniformity replaces diversity in the context of global markets?
As rival global firms follow each other across countries, they bring with them their brand names, products, and marketing strategies from other national markets, thus creating some homogeneity across markets.
A firm has to become a multinational enterprise to engage in international business.
False
Which statement reflects a general implication of globalization?
The COVID-19 pandemic called into question the wisdom of relying on globally dispersed production systems.
The development of new products, processes, organizations, management practices, and strategies is called
The development of new products, processes, organizations, management practices, and strategies is called
When compared to the past, the gap between rich and poor nations today has
gotten bigger
For foreign direct investment (FDI) to occur, a firm should primarily
invest resources in business activities outside its home country.
Wise Eyes Corporation has developed a new oral supplement to prevent macular degeneration. Which type of legal protection grants Wise Eyes Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new supplement?
patent
Ocean Athletics is hesitant about entering Ukraine, because the country has been experiencing social unrest in recent years. Based on this information, what type of risk is Ocean Athletics trying to avoid?
political
In the United States, citizens have the right to elect officials who make decisions on behalf of the public. This practice is the reason the United States is a
representative democracy.
One advancement that has lowered the barriers many small firms face when building international sales is
the internet
What is an accurate characterization of the role of international business investments in Latin America today?
Debt and inflation are down and foreign investment is welcomed.
What is an accurate description of how the political economy of many of the world's nation-states has changed radically since the late 1980s?
There has been a move away from centrally planned and mixed economies and toward a more free market economic model.
The Uruguay Round extended GATT to cover services as well as manufactured goods.
True
The amount of foreign direct investment in China has been increasing since the 1980s. True or False
True
People in the West tend to associate a representative democracy with
a market economic system.
More nations have gravitated toward the market-based model because
command and mixed economies failed to deliver sustained economic performance.
U.S.-based Nelson Corporation is hesitant about entering into a licensing agreement with Lapson, Inc., a company from another nation, due to the likelihood that Lapson will break a contract or expropriate property rights. What specific type of risk is Nelson Corporation trying to avoid?
legal
Economist Hernando de Soto believes that the benefits of capitalism will not be achieved until
property rights are better protected.
In the United States, citizens have the right to elect officials who make decisions on behalf of the public. This practice is the reason the United States is a
representative democracy
Those who support globalization recognize that while some concessions occur during the process of globalization, ultimately, it still works because
the benefits outweigh the costs.
A country that has __________ lowers the risk of doing business in that country.
the presence of a strong legal system
The spread of democracy among countries is most likely to lead to
the promotion of greater competition
According to globalization opponents, what has increased in wealthy advanced economies as a result of globalization?
unemployment
