Q&A Hero

Q: Corporate social performance (CSP) cannot be rewarded.

Q: Corporate social responsibility (CSR) activities can strengthen local community relations and improve employee morale.

Q: Firms can undertake corporate social performance (CSP) because of social norms or audience effects.

Q: A firm that undertakes social activities motivated by moral principles will act only when there is an opportunity for profits or when forced to act by its nonmarket environment.

Q: In contrast to corporate social performance, corporate social responsibility need not be motivated by moral considerations but instead could be strategic or a response to the social pressure a firm faces.

Q: Ownership of the firm is never mentioned in the Roundtable statement, which suggests that the corporation exists as a legal entity.

Q: Managerial capitalism can result in inefficiency when the incentives of management are not structured properly.

Q: The separation of ownership from management and the resulting managerial discretion means that Adam Smiths market capitalism cannot coexist with managerial capitalism.

Q: The market perspective of Friedman leaves unresolved a number of issues about the role of business in society.

Q: Compliance with the law is an essential guide for responsible management, but reliance solely on the law is rarely sufficient.

Q: Friedmans objection is to corporate social responsibility that is anticipated.

Q: From Friedmans perspective, the responsibility of managers, serving as agents of the owners of the firm, the principals, is to maximize profits (shareholder value) by engaging in free and open competition.

Q: Milton Friedman argues that the social responsibility of business is to maximize public welfare.

Q: Formulating integrated strategies requires consideration of the market and nonmarket environments as well as attention to moral concerns and social responsibilities.

Q: Corporate Social Responsibility

Q: The General Agreement on Trade in Services (GATS) covers all services and provides for MFN and national treatment.

Q: The central principle of the WTO agreements is manifested in the most favored nation (MFN) requirement that each signatory accord all other signatories the most favorable terms for trade provided to any country.

Q: The focus of the Tokyo Round of GATT was on agricultural subsidies.

Q: The focus of international trade policy through the 1960s was on tariffs.

Q: At the conclusion of World War II, a group of countries led by the United States established the International Trade Organization (ITO)..

Q: The domestic politics of international trade are asymmetric due to sunk resources and the rents on those resources.

Q: The theory of comparative advantage implies that intervention by governments in perfectly competitive domestic or international markets will increase aggregate well-being.

Q: The theory of comparative advantage is based on the assumption of perfectly competitive markets.

Q: In the absence of trade, the consumption possibilities of each country are its own production possibilities.

Q: Gains from trade are evident when one country can produce a good more efficiently than another country, and the latter country can produce a different good more efficiently than can the former country.

Q: The law of comparative advantage provides the basic rationale for free tradeall countries, even those with an absolute disadvantage, can gain from trade.

Q: The competitive theory of international trade is based on the losses from trade.

Q: Trade policy does not depend on the market and nonmarket strategies of private interests.

Q: A number of regional trade agreements such as the North American Free Trade Agreement (NAFTA) and the treaties that established the single market in the European Union, have reduced barriers and increased trade.

Q: In the aftermath of World War II, the sudden increase in trade barriers was largely the result of U.S. hegemony.

Q: Trade policy consists of agreements among countries, domestic laws pertaining to international trade, and procedures for administering those laws and resolving disputes.

Q: The Smoot-Hawley Act of 1930 helped reduce the depth and duration of the Great Depression by decreasing tariffs dramatically.

Q: Who bears the cost of protectionism and how?

Q: Outline the structure of the U.S. trade policy.

Q: Discuss the various aspects of the Trade-Related Aspects of Intellectual Property Rights (TRIPS). Page reference: 527 Learning Outcomes: Identify the fundamental concepts and issues of international business and management

Q: What were the factors responsible for the formation of the General Agreement on Trade in Services (GATS)?

Q: Write a short note on the competitive theory of international trade.

Q: Which of the following is true of the Super 301? a) Super 301 convinced most countries to pursue market opening through unilateral negotiations under the WTO. b) Super 301 contributed substantially to the strengthening of trade relations between the United States and the European Union. c) Super 301 deems negotiation as the most effective means of addressing foreign barriers to trade. d) Super 301 provided for mandatory sanctions against countries that engaged in unfair trade practices that injured U.S. industries.

Q: Which of the following is true with regard to the NAFTA? a) NAFTA was an expansion of the United StatesJapan Free Trade Agreement that had been in effect since 1981. b) NAFTA excluded transition provisions and favored a rapid phaseout of trade barriers. c) NAFTA was an expansion of the United States-Canada Free Trade Agreement that had been in effect since 1988. d) NAFTA did not provide for the elimination of tariff and nontariff barriers.

Q: The North American Free Trade Agreement (NAFTA) established, subject to certain exceptions, free trade among ________. a) Great Britain, the United States, and Japan b) Canada, Mexico, and the United States c) Great Britain, France, and Canada d) the United States, India, and Japan

Q: Which of the following is true about the cost of protectionism? a) Organized consumer groups have been largely active in cases involving protection of domestic industries. b) Ultimately, the cost of protectionism is borne by producers. c) The cost of protectionism is ultimately borne by consumers. d) Individual consumers are fairly likely to act politically on trade protection issues.

Q: How can the relative inefficiency of domestic industries be addressed? a) those injured may be compensated under the Reciprocal Trade Agreement Act b) those injured may be compensated under the Trade Adjustment Assistance Act c) relief can be granted in the form of permanent tariffs and the renewal of previously granted trade concessions d) protection is provided by stimulating imports

Q: Protection applies to________, a) tax exemptions for promoting green technology b) high domestic wages c) stringent labor laws d) predatory trade practices

Q: Article 1, Section 8 of the U.S. Constitution gives ________ the power to regulate commerce with foreign nations and to lay and collect duties. a) the secretary of state b) the Congress c) domestic peak organizations d) multinational corporations

Q: The negotiations in the ________ Round were to pay special attention to the situations of developing countries. a) Doha b) Uruguay c) Kennedy d)Tokyo

Q: In relation to the WTO Dispute Settlement Body (DSB), ________ has been involved in more disputes than any other country. a) the United States b) Venezuela c) Brazil d) North Korea

Q: A major achievement of the ________ Round was to establish the WTO Dispute Settlement Body (DSB) to hear disputes and issue binding orders to resolve them. a) Doha b) Uruguay c) Kennedy d)Tokyo

Q: The Uruguay Round negotiators reached a new Government Procurement Agreement (GPA), which is a ________ agreement among 39 WTO members. a) bilateral b) unilateral c) plurilateral d) multilateral

Q: The sector in which there has been the greatest distortion in trade is ________. a) transportation b) iron and steel c) heavy machinery d) agriculture

Q: Article(s) XX and XXI of the GATT ________. a) set a framework for the elimination of quantitative restrictions on trade b) provide exceptions to the free trade provisions of the other articles c) are the subsidies code d) cover antidumping and countervailing duties

Q: Article XVI of the GATT ________. a) allows for temporary safeguard relief from imports b) is the subsidies code c) covers antidumping and countervailing duties d) sets a framework for the elimination of quantitative restrictions on trade

Q: Article VI of the GATT ________. a) allows for temporary safeguard relief from imports b) allows exceptions for balance of payments problems of developing countries c) covers antidumping and countervailing duties d) sets a framework for the elimination of quantitative restrictions on trade

Q: The central principle of the WTO agreements is embodied in which of the following requirements? a) most favored nation b) reform-friendly state c) developed nation d) democratic free state

Q: The International Trade Organization (ITO) was established by a group of nations, under the leadership of ________. a) Japan b) the USSR. c) the United States d) China

Q: The International Trade Organization (ITO) was formed at the conclusion of ________. a) World War I b) the Vietnam war c) the Gulf war d) World War II

Q: Why do countries generally gain from multilateral reductions in tariff and nontariff barriers? a) because liberalized trade policy is beneficial in the aggregate b) because the politics of international trade policy is majoritarian c) because liberalized trade policy supports market monopolies d) because the distributive consequences of a liberalized trade policy are not uniform

Q: The politics of international trade policy is driven by ________, which arises from the interactions between international trade policy and the domestic economy. a) domestic politics b) international peak organizations c) the aggregate well-being of the country d) the aggregate cost of social externalities

Q: The theory of comparative advantage is based on the assumption of________. a) perfectly regulated markets b) perfectly monopolistic markets c) perfectly competitive markets d) perfectly competitive innovation

Q: Which of the following is true with regard to the competitive theory of international trade? a) The gains from trade can be demonstrated when two countries either determine the terms of their trade through bargaining or trade goods in a competitive market. b) The competitive theory of international trade is based on the trade deficits accumulated over a period of time. c) In the absence of trade, the consumption possibilities of each country are far below its own production possibilities. d) Gains from trade do not occur if there are differences in the relative prices of untraded factor inputs such as labor.

Q: The competitive theory of international trade is based on the ________. a) budget deficits accumulated over a period of time b) trade deficits accumulated over a period of time c) gains from trade d) rate of investments

Q: After World War II, the reductions in trade barriers were primarily the result of which countrys dominance? a) Great Britain b) China c) USSR d) the United States of America

Q: Since the ________, which raised tariffs dramatically and contributed to the depth and duration of the Great Depression, the United States and other developed countries have supported reductions in tariffs and other barriers to international trade. a) Reciprocal Trade Agreement Act b) Neutrality Act of 1935 c) Trade Adjustment Assistance Act d) Smoot-Hawley Act of 1930

Q: The Schengen Agreement established, subject to certain exceptions, free trade among Canada, Mexico, and the United States.

Q: The major components of U.S. trade law are embodied in the Trade Act of 1974 and the Tariff Act of 1930.

Q: According to the U.S .Constitution, the Congress is not vested with the power to regulate commerce with foreign nations and to lay and collect duties.

Q: The Uruguay Round and follow-up agreements were generally unsuccessful, and the WTO dispute settlement process had been largely ineffective. Answer: False Page reference: 531 Learning Outcomes: Identify the fundamental concepts and issues of international business and management

Q: With regard to trade disputes, the European Union maintains a set of preferences for the overseas territories and former colonies of its member states.

Q: The Kennedy Round of GATT negotiations incorporated provisions in Article VI allowing domestic laws to include antidumping measures.

Q: Agriculture has been the sector with the smallest distortions in trade.

Q: TRIPS, or Trade Related Aspects of Intellectual Property Rights, provides a narrow protection to intellectual property and is, thus, excluded from the WTO dispute settlement system.

Q: Explain the problem of Missing Girls in India.

Q: Write a short note on poverty, microlending, and its alternatives in India.

Q: Discuss the extent and effect of corruption in India.

Q: Discuss the development of Indias pharmaceutical industry.

Q: Write a short note on business groups in India.

Q: Analyze the market opportunities of India. Use examples to illustrate your analysis.

Q: What economic restrictions does India have in place?

Q: Which of the following increased costs and limited market competition? a) government restrictions on businesses b) stringent antitrust reviews c) family-controlled companies d) the ban on exportation

Q: Export industries have focused on supplying ________. a) developed countries b) emerging markets countries c) commonwealth countries d) the global market

Q: Much of the growth in the Indian economy has been driven by ________. a) domestic entrepreneurs b) multinational corporations c) small shopkeepers d) stall retailers