International BUS 280 Chapters 1 – 3

6 January 2023
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As a result of globalization, we have been moving toward a world in which
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material culture is starting to look similar the world over.
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Which of the following best exemplifies the globalization of markets?
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Fluffy Pillows, a US based pillow company, sells the same pillows world wide
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Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates
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Globalization of production
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Which of the following is NOT a factor of production
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culture
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Why was the World Trade Organization established?
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to police the international trading system
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Who is often seen as the lender of the last resort to nation-states whose economies are in turmoil and currencies are losing value against those of other nations?
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International Monetary Fund
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A macro factor underlying the trend toward greater globalization is
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the decline in trade barriers since the end of WWII
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Canadian company Yummy Snacks exports a number of products to consumers in Peru, Chile and Argentina. According to this information, Yummy Snacks is most likely involved in
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International trade
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office Plus, a US based company, has invested resources in business activities in New Zealand. This is an example of
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foreign direct investment
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Which institution was established as a result of the Uruguay Round?
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World Trade Organization
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Which of the following is NOT a technological change that affects globalization
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the introduction of tougher environmental and labor laws
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Which of the following does Moore's law predict?
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The power of microprocessor technology doubles and its cost of production falls in half every 18 months
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Which of the following is most likely to be the reason behind the decline in the US share of world output in 2014?
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faster economic growth of developing economies, particularly in Asia
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What was the motivation for non-US firms to begin investing across national borders in the 1970s?
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desire to disperse production activities to optimal locations
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Green Cleaners Inc., a US based company that specializes in environmentally-friendly cleaning supplies, has production facilities in Poland and Spain. Based on this information, Green Cleaners can be classified as what type of enterprise?
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multinational
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According to globalization supporters, which of the following is an advantage of globalization?
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Globalization helps create jobs in all countries that participate in the global trading system
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Which of the following is an appropriate solution to the problem of slow real income growth among the unskilled workers in the US?
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increasing society's investment in education
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According to globalization opponents, which of the following is a disadvantage of globalization?
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Globalization results in companies "exporting jobs" to low-wage nations
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In which of the following ways is managing an international business different from managing a purely domestic business?
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An international business must develop policies for dealing with exchange rate movements
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Shannon works as the executive manager of an international business, while bob is the executive manager of a purely domestic business. Which of the following tasks apply to both Shannon and Bob?
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dealing with business attacks from competitors
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An individual's right to do something may be restricted on the grounds that it runs counter to "the good of society" when the political system emphasizes
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collectivism
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Those who believe that socialism can be achieved only through violent revolution and totalitarian dictatorship are called
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communists
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Which of the following is true about individualism?
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in individualism, private ownership is desirable
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Which of the following refers to a political system in which government is by the people, exercised either directly through elected representatives
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democracy
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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?
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theocratic
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the government of Batwi, which is made up of military officers, permits some individual freedom. However, it restricts individual political freedom on the basis that it could lead to the rise of communism. According to this information, which of the political system is found in the country of Batwi?
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right-wing totalitarianism
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countries that emphasize individual goals over collective goals tend to have what economic system?/
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market
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Which of the following is true of countries with a market economy?
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Production is determined by the interaction of supply and demand
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In Nerumbia, all businesses are owned by the state. The Nerumbian government plans production, fixes commodity prices and also gives directions on investments to ensure they benefit the nation as a whole and not only a few individuals. What type of economy has nerumbia adopted?
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command
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in a pure command economy, the prices at which goods and services are sold are planned by the
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government
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Which of the following is true about the common law system
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judges in a common law system have the power to interpret the common law so that it applies to the unique circumstances of an individual case
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a legal system which is based on a detailed set of laws organized into codes is referred to as a
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civil law system
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Vintage Incorporated is going to do business with a company that is located in the Pabul Republic, a common law country. The companies have agreed to draft the business contract in the Pabul Republic. Since the contract will be drafted under a common law framework, which of the following best characterizes the contract?
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very detailed with all contingencies spelled out
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The United Nations Convention on Contracts for the International Sales of Goods (CIGS) was introduced to
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resolved disputes that arise in international traded regarding which country's laws to apply
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In the context of violation property rights, which of the follwoing refers to the extortion of income or resources of property holders by public officials, such as politicians and government bureaucrats
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public actions
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A payment made to expedite or to secure the performance of a routine governmental action is called a
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grease payment
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ABC Medical Corporation has developed a new medication to treat a rare disease. Which type of legal protection grants ABC medical corporation exclusive rights for a defined period to the manufacture, use or sale of the new medication
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patent
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Which of the following is most likely to be the result of a country having lax intellectual property laws
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Firms will be reluctant to enter into such a country
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The product liability laws are established to protect the
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consumers in case a product causes injury, death or damage
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The hourglass, a US based company, is planning to expand operations to a foreign country, Considering the factors that make a country attractive as a place in which to do business, which of the following countries should the Hourglass enter?
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Country D, which has democratic institutions and a market based economic system
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Which of the following statements is true of the gross national income
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GNI per person figures can be misleading bc they don't consider differences in the cost of living
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Which of the following is a measure of economic development that allows for a direct comparison of living standards in different countries?
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purchasing power parity
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the present base for the adjustment of purchasing power parity is the cost of living in
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the United States
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Which index was developed by the UN to measure the quality of human life in different nations?
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Human development index
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Which of the following is one of three measures used to determine the Human Development Index of a country
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life expectancy at birth
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The development of new products, processes, organizations, management practices, and strategies is called
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innovation
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Rajiv purchased an invention from a group of researchers and was the first to commercialize the innovative new product. According to this information, Rajiv is
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an entrepreneur
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What is required for the business environment of a country to be conducive to innovation and entrepreneurial activity
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strong property rights protection
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People in the West tend to associate a representative democracy with
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a market economy system
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Which of the following statements reflects how the political economy of many of the world's nation-states has changed radically since the late 1980s?
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There has been a move away from centrally planned and mixed economies and toward a more free market economic model
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Which of the following has been losing importance globally since the 1980s?
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centrally planned command economies
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The spread of democracy among countries is most likely to lead to
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the promotion of greater competition
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Which of the following typically involves removing price controls; abolishing laws regulating the establishment and operation of private enterprises; and relaxing or removing restrictions on direct investment by foreign enterprises and international trade
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deregulation
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The Surbeel Republic exercises tight control over prices and output, prohibits private enterprises from operating in most sectors of the economy, and severely restricts foreign direct investments and international trade. Based on this information, the Subeerl is likely against
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deregulation
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The government of Kimmurak is selling state-owned telecommunications enterprise, to private investors. This is an example of
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privatization
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Which of the following factors is most likely to contribute toward lowering the risk of doing business in a country
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presence of a strong legal system in the country
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ABC Company 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 ABC Company trying to avoid?
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political
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US based Royal Corp is hesitant about entering into a licensing agreement with hexagon, inc., a company from the Monaslu Republic, due to the likelihood the Hexagon will opportunistically break a contract or expropriate property rights. What type of risks is the Royal Corporation trying to avoid?
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Legal
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Which of the following factors is most likely to make a country unattractive for international business
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closed totalitarian dictatorship
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Which of the following factors is most likely to make a country more attractive
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likely economic growth