IBA350

21 June 2024
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76 test answers

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Since the collapse of communism at the end of the 1980s, the ehrstwhile communist nations have transformed their economies by globalizing their markets. This involves
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Privatizing state-owned enterprises
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Which of the following is a consequence of globalization?
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Increasing Outsourcing of services
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Which of the following has enabled globalization of markets?
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Falling barriers to cross border trade
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Which of the following factors hinders globalization of consumer goods markets?
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National differences in tastes and preferences
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Globalization of markets results in markets becoming
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Less diverse
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A U.S. investment firm set up a customer call center in India to take adv of lower labor costs. This is called
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Outsourcing
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Primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states
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World Trade Organization
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Which is true about the International Monetary Fund
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Seen as the lender of last resort to nation-states whose economies are in turmoil
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Early outsourcing efforts were primarily confined to
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manufacturing activities
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The World Trade Organization promotes
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lowering of barriers to cross-border trade and investment
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(blank) occurs when a firm exports goods or services to consumers in another country
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International Trade
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The financial crisis in the US in 2009 was triggered by
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the problems in the US subprime mortgage lending market
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Containerization allows
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simplification of transshipment from one mode of transport to another
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The relative decline of the United States in the share of world output and world exports reflects
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the growth in the economic development of the world economy
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What is the total cumulative value of foreign investments best referred to as?
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Stock of foreign direct investments
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A multinational enterprise (MNE) is a firm that
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has production units in more than two countries
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Which of the following is a risk associated with globalization?
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Global financial contagion
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Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers
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is due to technological changes that create greater demand for skilled workers
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Globalization is criticized because it increases the power of
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supranational organizations over nation-states
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An international business, unlike a MNE
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need not invest directly in operations in other countries
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Interdependent political, economic and legal systems of a country make up its
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political economy
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A political system that prioritizes the needs of the society over individual freedoms is called
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collectivism
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the (blank) believed that socialism could be achieved only through violent revolution and totalitarian dictatorship
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communists
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In several Western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support led to
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privatization
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The tenet of (blank) is that the welfare of society is best served by letting people pursue their own economic self-interest
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Individualism
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Which of the following is a feature of a democracy?
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Governance by people or elected representatives
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Totalitarianism
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is a form of government in which one person or political party exercises absolute control over all spheres of human life
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Peoples' right to protest on issues of accountability in public expenditure would be possible in a (blank) political set up
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Democratic
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(blank) refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles
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Theocratic totalitarianism
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In a pure market economy
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production is determined by the interaction of supply and demand
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In a (blank) economy the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold
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command
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In a (blank) economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning
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mixed
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Under the (blank) law system, cases are judged with reference to three characteristics: tradition, precedent, and custom
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Common
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A civil system tends to be less adversarial than a common law system, since (blank)
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the judges decisions are based on detailed legal codes
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A common law system is different from a civil law system because:
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in a common law system a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law
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Violation of property rights done through legal mechanisms such as levying excessive taxation and requiring licenses or permits from property holders
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public action
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Which of the following areas of international trade is regulated by the Foreign Corrupt Practices Act?
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Preventing bribery and unethical acts in the conduct of international business
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A (blank) grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention
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Patent
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Design and names by which merchants or manufacturers designate and differentiate their products are known as (blank)
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Trademarks
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Which of the following provides exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit?
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Copyrights
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Safety standards to which a product must adhere are set by:
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Product Safety Laws
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GNI per person figures can be misleading because
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they don't consider differences in the cost of living
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Which of the following helps in adjusting GNI such that it accounts for the differences in the cost of living?
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Purchasing power parity (PPP) adjustment
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According to Amartya Sen, development should be
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seen as a process of expanding the real freedoms that people experience
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A market economy encourages innovation because
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economic freedom leads to greater incentives for innovation
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(blank) is required for a business environment to be conducive to innovation and entrepreneurial activity
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strong legal protection of property rights
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The state can expropriate the profits from innovation through legal means, such as (blank)
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excessive taxation
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A free market economy in which property rights are protected leads to subsequent economic growth, which often leads to the establishment of:
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A democratic regime
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Since the late 1980s, there has been a spread of democracy. This is because...
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The socialist model failed to deliver economic progress to the vast bulk of their populations
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Political scientist Samuel Huntington argues that modernization in non-Western societies can result in a retreat toward the traditional. This is exemplified by
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the Islamic resurgence
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(blank) involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate
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Deregulation
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Which of the following is a characteristic of a command economy?
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Limited international trade
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to generate resources for public expenditure and promote economic growth, the government decides to auction an entire iron manufacturing plant to sell it to a strategic investor. This process exemplifies
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Privatization
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Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms
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are sheltered from foreign competition
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Which of the following factors is NOT likely to make a country a more attractive location for international business?
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Planned economies
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Sony was a pioneer, the Walkman was an innovative product which created a new category altogether and made Sony a tech leader. This gave them an edge over other consumer electronics brands that introduced portable music players for a very long time. Sony had the
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first-mover advantage
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Which of the following is NOT true regarding culture?
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Culture is static
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Cross-cultural literacy refers to
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an understanding of how cultural differences can affect business
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(blank) is/are best defined as shared assumptions about how things ought to be
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Values
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The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines:
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Culture
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Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as
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norms
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A group of people who share a common set of values and norms form a:
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society
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(blank) are the routine conventions of everyday life
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Folkways
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An act, as simple as shaking hands when meeting new people is an example of:
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symbolic behavior
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Mores are
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the norms that are seen as central to the functioning of a society and its social life
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The social organization of Western society tends to emphasize on
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individual achievement
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Which of the following is a consequence of the emphasis on individual performance in many Western societies?
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High degree of managerial mobility
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Closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime?
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Caste System
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Ethical systems are
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a set of moral principles, or values, that are used to guide and shape behavior
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Max Weber theorized that there was a relationship between Protestantism and the emergence of modern capitalism because
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Protestant ethics emphasize the importance of hard work and wealth creation and frugality
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The (blank) dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities
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power distance
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The individualism versus collectivism dimension of Hofstede's study explored:
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the relationship between the individual and his/her fellows
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Hofstede's uncertainty avoidance dimension considered
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the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty
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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?
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Low uncertainty avoidance
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Hofstede's dimension of Confucian dynamism
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captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors
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Which of the following is an example of ethnocentrism
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An American manager criticizes the cultural practices of Saudi Arabia because it differs from his own cultural norms