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Q:
Judges under a civil law system have less flexibility than those under a common law system.
Q:
When law courts interpret civil law, they do so with regard to tradition, precedent, and custom.
Q:
A common law system tends to be less adversarial than a civil law system.
Q:
Command economies provide a more favorable environment for innovation and entrepreneurs than market economies.
Q:
In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply.
Q:
All right-wing dictatorships display an affinity toward socialist or communist ideas.
Q:
The governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based economic reforms.
Q:
In most democratic states, those who question the right of the rulers to rule find themselves imprisoned, or worse.
Q:
In a totalitarian country, all the constitutional guarantees on which representative democracies are builtan individual's right to freedom of expression and organization, a free media, and regular electionsare denied to the citizens.
Q:
In practical terms, collectivism creates a more favorable environment for international businesses to operate in than individualism.
Q:
The Cold War was in many respects a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.
Q:
In practical terms, individualism translates into an advocacy for democratic ideals and free market economics.
Q:
One of the tenets of collectivism is that the welfare of society is best served by letting people pursue their own economic self-interest.
Q:
By the mid-1990s, communism was rising worldwide.
Q:
The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.
Q:
Karl Marx advocated state ownership of the basic means of production, distribution, and exchange (i.e., businesses).
Q:
Plato did not equate collectivism with equality.
Q:
Political systems that emphasize collectivism tend to be democratic, while political systems that place a high value on individualism tend to be totalitarian.
Q:
The term political economy is used to stress the fact that the political, economic, and legal systems of a country are independent of each other.
Q:
Briefly discuss the ways in which technological change has affected globalization.
Q:
How is managing an international business different from managing a purely domestic business?
Q:
What are some of the challenges faced by managers of an international business?
Q:
Why are supranational organizations, such as the World Trade Organization and the United Nations, criticized?
Q:
What are the various reasons for economic stagnation in many of the world's poorest countries?
Q:
Discuss the concerns voiced by critics of globalization regarding labor policies and environment.
Q:
Discuss the arguments for and against globalization regarding jobs and income.
Q:
Elaborate on why globalization is not inevitable.
Q:
In the context of international trade and investment, describe how the former communist nations of Europe and Asia have been changing.
Q:
What is a multinational enterprise? What have been the two most notable trends in multinational enterprises since the 1960s?
Q:
What were the implications of the Uruguay Round held under the umbrella of GATT for international business?
Q:
Explain the factors that led to the Great Depression of the 1930s.
Q:
Briefly trace the history of the G20 and describe its current role in international business.
Q:
Explain the concepts of "globalization of markets" and "globalization of production."Globalization has several facets, including the globalization of markets and the globalization of production.
Q:
What is globalization?
Q:
Ryan is the executive general manager of a U.S. multinational and Veronica is a manager in a similar position, but works for another U.S. company that operates only in its home country. In this context, which of the following business functions will be most typically exclusive to Ryan?
A.Marketing a product or service
B.Maintaining healthy relations with the U.S. government
C.Planning on a business strategy
D.Adhering to labor and environmental standards
E.Choosing an appropriate mode for entering a particular foreign country
Q:
The minimum that a firm has to do to engage in international business is to:
A.export or import products from other countries.
B.invest directly in operations in another country.
C.establish joint ventures or strategic alliances with companies in other countries.
D.export low-wage manufacturing jobs to companies in other countries.
E.develop franchises and subsidiaries in other countries.
Q:
Free trade alone, some argue, is a necessary but not sufficient prerequisite to help the world's poorest countries bootstrap themselves out of poverty. They also recommend:
A.a highly regulated command economy.
B.weaker property rights laws.
C.weaker labor regulations.
D.large-scale debt relief.
E.rapid expansion in population.
Q:
Which of the following is NOT a concern for managers in international businesses?
A.Fundamental differences in culture
B.Perceived distance between home country and operating nations
C.Government restrictions on international trade
D.Cross-border transactions involving currency exchange
E.Ethical adherence to environmental standards
Q:
Which of the following is a power of the WTO?
A.It can restrict the membership of nations in other supranational organizations such as the United Nations.
B.It can grant loans to cash-strapped governments in poor nations.
C.It supersedes IMF and has complete authority over IMF's actions.
D.It can issue a ruling instructing a member-state to change trade policies that violate GATT regulations.
E.It can make decisions related to international trade without considering the collective interests of member-states.
Q:
Which of the following statements supports the claim that the gap between the rich and poor nations of the world has gotten wider because of globalization?
A.There are many countries that suffer from totalitarian governments.
B.A quarter of the countries with a GDP per capita of less than $1,000 in 1960 had growth rates of less than zero from 1960 to 1995.
C.There is a rapidly growing population in many developing nations.
D.Unelected bureaucrats limit a nation's ability to control its own destiny.
E.Endemic corruption has long been a problem in the national governments of developing nations.
Q:
A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward:
A.supranational organizations such as the World Trade Organization.
B.the communist states of eastern Europe and central Asia.
C.the medium-size and small U.S. multinationals.
D.the national governments of the countries participating in globalization.
E.nations that have authoritarian forms of government.
Q:
Which of the following is the most appropriate solution to the problem of rising carbon dioxide emissions in developed economies?
A.Roll back the trade liberalization efforts that have fostered economic growth and globalization.
B.Tie free trade agreements to the implementation of fewer environmental and labor laws in less developed countries.
C.Get the nations of the world to agree to policies designed to limit pollutant emissions.
D.Increase the export of low-wage manufacturing jobs to developing nations.
E.Restrict international trade and investment only to services.
Q:
The NAFTA was formed in 1994 between:
A.Canada, Mexico, and the United States.
B.the United States, Brazil, and Argentina.
C.Canada, Argentina, and Mexico.
D.Colombia, Venezuela, and Brazil.
E.Uruguay, Colombia, and Costa Rica.
Q:
In the context of the environment, globalization critics argue that:
A.free trade discourages firms from advanced nations to move manufacturing facilities to less developed countries.
B.adhering to labor and environmental regulations significantly increases the costs of manufacturing enterprises.
C.manufacturing enterprises are put at a competitive disadvantage by moving their production facilities to nations that do not have burdensome regulations.
D.as countries get richer, they relax their environmental and labor regulations.
E.while pollution levels are rising in the world's richer countries, they have been falling in developing nations.
Q:
Growing income inequality between the skilled and unskilled workers in advanced nations, such as the United States, is a result of the:
A.wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted.
B.decrease in the outsourcing of low-wage manufacturing jobs offshore and a corresponding increase in demand for unskilled workers.
C.shift within advanced economies toward jobs where the only qualification is the willingness to turn up for work every day.
D.increasing wage gap between developing and developed nations.
E.shortage of unskilled workers and an excess supply of highly skilled workers.
Q:
Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the:
A.migration of low-wage manufacturing jobs offshore.
B.technology-induced shift toward jobs that require significant education and skills.
C.increased supply of highly skilled workers.
D.decreasing demand for unskilled workers in developing nations.
E.reducing national differences in the cost of labor between developed and developing nations.
Q:
Critics of globalization say that exporting jobs to low-wage nations results in higher unemployment and lower living standards in their home nations. Which of the following statements does NOT support this argument?
A.Globalization destroys manufacturing jobs in wealthy advanced economies.
B.Globalization demonstrates a structural adjustment to a more integrated global economy.
C.Globalization results in depressed wages in developed nations.
D.Globalization leads to economic dislocation in most cases.
E.Globalization induces a decline in the share of labor in national income.
Q:
Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off. Which of the following is being justified in this case?
A.Protectionism and retaliatory trade policy
B.Free trade of goods and services
C.Rise of communism
D.High tariff on imports of manufactured goods
E.The need to be a self-contained nation
Q:
Which of the following has increased in the United States as a result of globalization?
A.Unemployment rate
B.Price of goods and services
C.Demand for unskilled workers
D.Standard of living
E.Income equality between workers in skilled and unskilled sectors
Q:
"Exporting jobs" to low-wage nations has contributed to:
A.higher living standards in those countries that "export" the jobs.
B.higher unemployment in wealthy advanced economies such as the United States.
C.an increase in the income levels in those nations that "export" the jobs.
D.lower standards of living in those countries to which the jobs are exported.
E.reduced specialization in the production of goods and services.
Q:
An argument in support of the falling barriers to international trade and investment is that the falling barriers:
A.prohibit countries from specializing in the production of goods and services.
B.drive the global economy toward greater prosperity.
C.reduce the need to export jobs overseas.
D.increase the bargaining power of business firms by decreasing the incomes of consumers.
E.reduce attacks from foreign competitors.
Q:
Which of the following statements is a general implication of globalization?
A.Globalization is inevitable.
B.From a purely economic perspective, globalization is all good.
C.Globalization has no negative impacts on the economies of the developed world.
D.Globalization has reduced the risks associated with global financial contagion.
E.As a result of globalization, a severe crisis in one region of the world can affect the entire globe.
Q:
Which of the following statements reflects the nature of the global economy of the twenty-first century?
A.National economies are becoming less integrated into a single and interdependent economic system.
B.The number of nations joining the ranks of the developed world has reduced.
C.Countries have extensively adopted liberal economic policies.
D.There are fewer instances of state-owned businesses privatized and markets being opened to more competition.
E.The world is currently moving toward an economic system that is more unfavorable for international business.
Q:
In the past two decades, the majority of Latin American countries have:
A.experienced a decline in the health of their economies.
B.sold state-owned enterprises to private investors.
C.been characterized by low growth, high debt, and hyperinflation.
D.restricted investment by foreign firms.
E.discouraged both democracy and free market reforms.
Q:
Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former communist nations of East Europe and central Asia?
A. The high levels of economic development in these countries
B. The signs of growing unrest and totalitarian tendencies seen in these countries
C. A strong commitment to market-based economic systems seen in these countries
D. The collapse of communism in these countries
E. Low returns involved in doing business in these countries
Q:
Universal Lingo, a U.K.-based language translation company employing just 65 people worldwide, has an annual turnover of $1.5 million. In this context, Universal Lingo is most likely to be classified as a(n):
A.large domestic firm.
B.mini-multinational firm.
C.greenfield firm.
D.foreign firm.
E.multinational giant.
Q:
Which of the following statements reflects the trend in the changing nature of multinational enterprises?
A.Global business activity is increasingly being dominated by large U.S. multinational corporations.
B.The number of medium-size and small multinationals is decreasing continuously.
C.The ranks of the world's largest 100 multinationals are dominated by firms from developing economies.
D.The Internet is increasing the barriers that small firms face in building international sales.
E.International business is conducted not just by large firms but also by medium-size and small enterprises.
Q:
What are mini-multinationals?
A.Multinational firms from relatively small countries in terms of area
B.Multinationals from the developing nations of the world
C.Multinational firms that operate in only one foreign country
D.Medium-sized and small multinationals
E.Subsidiaries of large multinationals in foreign countries
Q:
Silver Fire Electric Inc., a U.S.-based company, has productive activities in more than two countries. As a result, it would be most appropriate to refer to Silver Fire Electric as what type of enterprise?
A.Greenfield
B.Universal
C.Private
D.Multinational
E.Public
Q:
Which of the following refers to the total cumulative value of foreign investments?
A.Purchasing power parity
B.Multipoint pricing
C.Stock of foreign direct investment
D.Switch trading
E.Bill of lading
Q:
Which of the following identifies the motivation for much of the foreign direct investment by non-U.S. firms?
A.The desire to disperse production activities to optimal locations
B.The need to suppress emerging economies such as China, India, and Brazil
C.The demand for skilled workers in foreign nations
D.The lack of adequate environmental regulations
E.The establishment of multinational treaties
Q:
Due to the changing economic geography, many of tomorrow's economic opportunities are most likely to be found in the:
A. rich industrialized nations of the world like Great Britain and Germany.
B. centrally planned economies of the communist world.
C. United States.
D. developing nations of the world such as China, India, and Brazil.
E. countries that are currently not members of the World Trade Organization.
Q:
Which of the following has seen a positive change from 1960 to 2012?
A.Growth of the centrally planned economies of the communist world
B.U.S. position in the world economy and world trade picture
C.The share of world output enjoyed by rich industrialized countries such as Great Britain, Germany, and Japan
D.The share of world output accounted for by developing nations
E.Prevalence of independent and self-contained national economies
Q:
Which of the following statements reflects the changing demographics of the global economy?
A.U.S. dominance in export markets has waned as Japan, Germany, and a number of newly industrialized countries have taken a larger share of world exports.
B.The change in the position of the United States in terms of the share of world output is the result of the absolute decline in the health of the U.S. economy.
C.From 1960 to 2010, countries that experienced a large decrease in their share of world output include Japan, Thailand, Malaysia, Taiwan, and South Korea.
D.The United States is the only developed nation to see its relative standing in the share of world output slip.
E.Today, roughly half the globethe centrally planned economies of the communist worldis off-limits to Western international businesses.
Q:
Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012?
A. United States
B. Thailand
C. Japan
D. China
E. South Korea
Q:
Which of the following is most likely to be observed in today's global economy?
A.Increasing U.S. share of world output
B.Large U.S. entrepreneurial firms dominating the international business scene
C.Increasing U.S. dominance in the world economy and world trade picture
D.Most of the nations being governed by centrally planned economies of the communist world
E.Rapid rise in the share of world output accounted for by developing nations such as China and India
Q:
The advent of containerization has:
A.made the economies of the world's nation-states less intertwined.
B.made moving goods from one mode of transport to another extremely labor-intensive.
C.significantly lowered the costs of shipping goods over long distances.
D.slowed down the globalization of markets and production.
E.increased costs of coordinating and controlling a global organization.
Q:
Richard purchased a computer for $600 in 2014. Compared to the $900 computer that he had purchased way back in 2010, the new one seems to be more efficient in terms of the price he has paid and the power of the microprocessor technology. This is best explained by:
A.product liability.
B.property rights.
C.Moore's law.
D.purchasing power parity.
E.sustainable strategies.
Q:
Gerald bought his son, David, a computer two years ago. Recently, he decided to buy his daughter, Julian, a computer of her own. In the context of the two-year gap between the purchase of both the computers and Moore's law, it is most likely that:
A.Gerald paid a higher price for Julian's computer.
B.David's computer will have a microprocessor with better power than that of Julian's.
C.both David's and Julian's computers would cost Gerald the same price.
D.the microprocessor in Julian's computer will be more advanced in terms of power than that of David's.
E.the power of the microprocessors, in both David and Julian's computers, would be the same.
Q:
While the lowering of trade barriers made globalization of markets and production a theoretical possibility, which of the following has made it a tangible reality?
A.The advances in communication, information processing, and transportation technologies
B.The rise of communism and the need for independent economies on a global scale
C.The increasing diversity in consumer tastes and preferences worldwide
D.The increasing differences in the material culture the world over
E.The decreasing significance of the World Trade Organization
Q:
Which of the following has been declining in the developing nations of the world such as China, India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil?
A.Economic opportunities for international trade
B.Industrialization
C.Contribution toward the share of world output
D.The stock of foreign direct investment
E.Barriers to the free flow of goods, services, and capital
Q:
The lowering of trade and investment barriers:
A.protects domestic industries from foreign competition.
B.was not an agenda of the Uruguay Round.
C.allows firms to base production at optimal locations outside their home country.
D.creates an unfavorable environment for FDI.
E.caused the Great depression of the 1930s.
Q:
Which of the following was a part of the agenda of the Doha Round of talks launched by the WTO?
A.Limiting the use of antidumping laws
B.Abolishing the International Monetary Fund
C.Increasing tariffs on industrial goods, services, and agricultural products
D.Persuading member governments to cut defense spending
E.Establishing GATT as a replacement for the WTO
Q:
The 1993 Uruguay Round:
A.increased trade and investment barriers.
B.excluded the trade of services from international trade.
C.transformed the World Trade Organization into the GATT.
D.provided enhanced protection for patents, trademarks, and copyrights.
E.promoted the worldwide rise of communism.
Q:
Which of the following reasons contributed to the Great Depression of the 1930s?
A.Inability to meet the increasing world demand for products
B.Several countries accepting General Agreement on Tariffs and Trade
C.Increasing attack from foreign competitors on domestic industries
D.Privatization of state-owned organizations
E.Countries progressively raising trade barriers against each other
Q:
The motive behind the high tariffs imposed by nations on imports of manufactured goods, prior to World War II, was to:
A.deter any possible attempts to promote communism.
B.protect domestic industries from foreign competition.
C.prevent the occurrence of the Great Depression.
D.safeguard patents, copyrights, and trademarks.
E.promote the trade of services over the trade of manufactured goods.
Q:
For foreign direct investment (FDI) to occur, a firm should primarily:
A.conduct cross-border bartering with neighboring countries.
B.invest resources in business activities outside its home country.
C.export goods or services to consumers in another country.
D.import goods or services from producers in another country.
E.erect formidable barriers to international trade.
Q:
Michelle, an Italian fashion designer, sells her merchandise by exporting them to the United States, United Kingdom, and Brazil. According to this information, Michelle is most likely involved in:
A.foreign direct investment.
B.globalization of production.
C.international trade.
D.multinational enterprise.
E.outsourcing.
Q:
Which of the following best exemplifies foreign direct investment (FDI)?
A.Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia, Philippines, and Australia.
B.Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.
C.Delicate Love, a reputable florist company in Holland, exports tulips and roses throughout the globe.
D.Samantha started an Italian restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Italy.
E.Yin and Yang Inc., a Chinese firm, supplies buttons and zippers to major denim brands in the United Kingdom.
Q:
Which of the following is a macro factor underlying the trend toward greater globalization?
A.Rise of communism across the globe
B.Increase in nationalization of private organizations
C.Increase in diversity in consumer tastes and preferences
D.Increase in trade regulations across the globe
E.Dramatic developments in information processing and other technologies