Global Business - FVC1 (All of the Practice Quizzes in MindTap) with COMPLETE SOLUTION 225 Questions with 100% Correct Answers

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Global Business - FVC1 (All of the Practice Quizzes in MindTap) with COMPLETE SOLUTION 225 Questions with 100% Correct Answers Globalization encompasses the socio-economic reform process of elimina... ting trade, investment, cultural, information technology, and political barriers across countries, which could lead to increased economic growth and geo-political integration and interdependence among nations of the world. a. True b. False - ✔✔Ch. 1 - True Globalization has always been and always will remain another word for "Westernization." a. True b. False - ✔✔Ch. 1 - False Today, reconstruction and restructuring economies to make them efficient remain a major role of the World Bank, along with poverty reduction. a. True b. False - ✔✔Ch. 1 - True An important role of successful institutions includes defining property rights and contracts and determining who gets what and when. a. True b. False - ✔✔Ch. 1 - True In market economies, governments maximize the role of state-owned enterprises, which makes them more likely to impose wage and price controls. a. True b. False - ✔✔Ch. 1 - FalseWhich of the following is a major global concern, especially to international organizations such as the International Monetary Fund, the World Bank, and the World Trade Organization? a. The increase in the number of humans inhabiting the planet b. Lack of adequate amounts of drinking water in underdeveloped countries c. The spread of the AIDS virus d. Nationalist or protectionist policies that curtail world trade e. Lack of adequate supplies of food in underdeveloped countries - ✔✔Ch. 1 - D The dawn of globalization can be traced back to the ________ century. a. 16th b. 20th c. 21st d. 15th e. 18th - ✔✔Ch. 1 - D OECD refers to which of the following? a. OPEC Equal Country Development b. Organization for Excellent Country Diversity c. Organization for Economic Cooperation and Development d. Outside Economic Country Diversity e. Outside Economic Country Development - ✔✔Ch. 1 - C The international institution that facilitates the global system of exchange rates and international payments that enables countries and their citizens to buy goods and services from each other is ________. a. the International Development Association b. the Multilateral Investment Guarantee Agency c. the World Trade Organization d. the World Bank e. the International Monetary Fund - ✔✔Ch. 1 - EWhich of the following is NOT a developmental institution closely associated with the World Bank? a. IDA b. OEDC c. IBRD d. IFC e. MIGA - ✔✔Ch. 1 - B The International Development Association performs which of the following functions? a. Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members b. Provides political risk coverage for private investments made in developing countries c. Works on issues related to foreign investment disputes d. Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets e. Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies - ✔✔Ch. 1 - A Economic policy changes that promote private sector development, competitive markets, marketpricing, freer trade, and deregulation is (are) called economic ________. a. developments b. reforms c. reounts d. trade regulations e. altercations - ✔✔Ch. 1 - B In USA, there are national laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms. These are called ________ laws. a. accountability b. antitrustc. transparency d. SWOT e. emerging market - ✔✔Ch. 1 - B The period of transformation that adjusts lifestyles to make the Internet and wireless technologies part of everyday life is called ________. a. bandwith b. the digital era c. the digital divide d. Y2K time e. the technological adjustment period - ✔✔Ch. 1 - B Economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially, o economically is referred to as ________ development. a. moral b. green c. next-generation d. sustainable e. ethical - ✔✔Ch. 1 - D Unfortunately, research finds that the losses from open trade and investment are always greater than the gains. a. True b. False - ✔✔Ch. 2 - False Among middle-income countries, China, has been consistently attracting the largest amount of FDI because of its well-developed infrastructure and its emerging position as the low-cost manufacturing center of the world. a. True b. False - ✔✔Ch. 2 - TrueFactor price equalization is a theory of international trade that supports the premise that a nation could only gain from trade if it had a trade surplus. a. True b. False - ✔✔Ch. 2 - False Trade policy refers to all government actions that seek to alter the free flow of merchandise or services from or to a country. a. True b. False - ✔✔Ch. 2 - True In countertrade, an exporter of goods or services to another country commits to import goods or services of corresponding value from that country. a. True b. False - ✔✔Ch. 2 - True All commercial transactions, both private and public between nations of the world, are referred to as ________. a. environmental business b. national business c. international business d. in-border business e. domestic business - ✔✔Ch. 2 - C The earliest and simplest form of international business is ________. a. a partnership b. a joint venture c. a sole proprietorship d. angel investing e. trade - ✔✔Ch. 2 - EWhich of the following was NOT one of the top ten exporting nations in 2010? a. India b. Germany c. The United Kingdom d. France e. The United States - ✔✔Ch. 2 - A ________ is a theory of international trade that supports the premise that a nation could only gain from trade if it had a trade surplus. a. Theory X b. Theory Y c. Theory Z d. Factors of production e. Mercantilism - ✔✔Ch. 2 - E Porter identified two crucial variables outside the diamond that play an important role in the competitiveness of nations: chance and ________. a. duty b. ethics c. roles d. government e. change - ✔✔Ch. 2 - D Taxes on imports are known as ________. a. tariffs b. subsidies c. loans d. grantse. funds - ✔✔Ch. 2 - A At the end of WWII, three major international organizations were established to accelerate trade and economic growth among countries of the world. They are: the IMF, the World Bank, and ________. a. NAFTA b. MFN c. VER d. GATT e. QR - ✔✔Ch. 2 - D Import quotas are also known as ________. a. qualitative restrictions b. domestic content imports c. shared wealth barriers d. voluntary export restrictions e. quantitative restrictions - ✔✔Ch. 2 - E An agreement in which an exporter of goods or services to another country commits to importing goods or services of corresponding value from that country is referred to as ________. a. an export cartel b. countertrade c. managed trade d. bartering e. an embarg - ✔✔Ch. 2 - B ________ refers to trade sanctions which are imposed upon a nation to restrict trade with that country. a. Tariffs b. Countertrade c. Embargod. Duties e. Managed trade - ✔✔Ch. 2 - C For regional integration to be successful, member countries need to undertake spatial transformations and allow efficient geographic distribution of economic activities within and among countries. a. True b. False - ✔✔Ch. 3 - True Regional integration is nothing more than simply cross-border trade liberalization. a. True b. False - ✔✔Ch. 3 - False The origins of the EU can be traced to the creation of the European Coal and Steel Community (ECSC), which established a common market in coal, steel, and iron ore among the six founding member countries: France, West Germany, Italy, Turkey, the Netherlands, and Luxembourg, in 1952. a. True b. False - ✔✔Ch. 3 - False One of NAFTA's major objectives is the protection of intellectual property rights. a. True b. False - ✔✔Ch. 3 - False ASEAN's two main objectives are: (1) to accelerate economic growth, social progress, and cultural development in the region; and (2) to promote trade with EU. a. True b. False - ✔✔Ch. 3 - False ________ includes a multitude of economic and/or political steps that may be taken by member states of a union to increase their global competitiveness, including preferential trade access. a. Spatial transformationsb. Economic geography c. Embargo d. Economic isolation e. Regional integration - ✔✔Ch. 3 - E According to the text, how many stages are there to regional integration? a. Two b. Five c. Six d. Four e. Three - ✔✔Ch. 3 - D A market formed when member countries of a customs union remove all barriers to allow the movement of capital and labor within the customs unions is known as a(n) ________. a. common market b. political union c. free trade area d. economic union e. customs union - ✔✔Ch. 3 - A The study of principles that govern the efficient spatial allocation of economic resources and the resulting consequences is referred to as _________. a. economic integration b. regional integration c. economic geography d. spatial transformation e. economic recovery - ✔✔Ch. 3 - C According to the text, which is NOT a country with large home markets and also located far from world markets?a. Tanzania b. Thailand c. Zimbabwe d. Argentina e. Paraguay - ✔✔Ch. 3 - C According to the text, all of the following are EU member states EXCEPT: a. Malta. b. Denmark. c. Cyprus. d. Italy. e. the Ukraine. - ✔✔Ch. 3 - E NAFTA is a comprehensive free-trade agreement among Canada, the United States, and ________. a. Cuba b. Australia c. China d. Mexico e. Japan - ✔✔Ch. 3 - D n what year was ASEAN established? a. 1952 b. 1900 c. 1967 d. 1925 e. 2001 - ✔✔Ch. 3 - C Which of the following is an objective of ASEAN?a. To manage relations with western countries b. To promote regional peace and stability c. To establish the largest economic integration d. To create an exclusive community e. To enhance the member citizens' economic growth - ✔✔Ch. 3 - B A growing ASEAN concern is the economic ascendancy of ________. a. Indonesia b. Vietnam c. China d. the Philippines e. North Korea - ✔✔Ch. 3 - C The current account of the BOP consists of four subaccounts: (a) trade (or goods) balance, (b) services balance, (c) financial derivatives, and (d) net imports. a. True b. False - ✔✔Ch. 4 - False Over $15 trillion dollars worth of currencies are traded daily. a. True b. False - ✔✔Ch. 4 - False Today, the SDR is a basket of currencies consisting of dollars, euros, pounds, and yen, with relative weights set by the IMF based on trade patterns. a. True b. False - ✔✔Ch. 4 - True Hard currencies are used by emerging market countries to peg the values of the soft currencies. a. Trueb. False - ✔✔Ch. 4 - True By comparing the prices of identical goods in different countries, assuming efficient markets that arbitrage away price differences, the real or PPP exchange rate can be computed. a. True b. False - ✔✔Ch. 4 - True A statement of account that shows all transactions between the residents of one country and the rest of the world for a given period of time is called a(n) ________. a. balance of payments b. income balance c. current account d. trade balance e. services balance - ✔✔Ch. 4 - A Balance of payments is generally split into ________ major components. a. three b. two c. five d. four e. six - ✔✔Ch. 4 - B When a country imports more than it exports, it has a(n) ________. a. trade balance b. income balance c. net transfer d. financial account e. trade deficit - ✔✔Ch. 4 - EThe net exports of services and imports of services is known as the ________. a. financial account b. trade balance c. income balance d. balance of transfers e. services balance - ✔✔Ch. 4 - B John as an investor requires the added return for risk associated with a security or asset. This added return is would be called a(n) ________. a. services account b. investment trade transfer c. risk premium d. balance account e. financial greed - ✔✔Ch. 4 - C There are about ________ different currencies that are used to make international payments for goods and services. a. 150 b. 100 c. 200 d. 175 e. 50 - ✔✔Ch. 4 - A The price at which one currency can be converted to another currency is called the ________. a. foreign exchange market b. independent floating exchange rate system c. fixed exchange rate system d. spot market e. exchange rate - ✔✔Ch. 4 - EA monetary system with varying degrees of government intervention to maintain a range of acceptable values against other currencies is called ________. a. a special drawing right b. clean float currency c. a soft currency d. dollarization e. dirty float currency - ✔✔Ch. 4 - E Buying goods in a lower priced market and selling them in a higher priced market to make profits is called ________. a. the law of one price b. arbitrage c. inflation d. the big mac index e. purchasing power parity - ✔✔Ch. 4 - B A principle implying that expected future spot exchange rates and spot exchange rates set interest rates on bonds in different countries equal to one another is called ________. a. the interest rate parity theory b. the big mac index c. the uncovered interest rate parity theory d. the law of one price e. the covered interest rate parity theory - ✔✔Ch. 4 - E Fortunately, a country's culture can easily be modified. a. True b. False - ✔✔Ch. 5 - False Attitudes are feelings or opinions.a. True b. False - ✔✔Ch. 5 - True Social infrastructure involves transportation, energy, and communications. a. True b. False - ✔✔Ch. 5 - False Universalism vs. particularism refers to the importance of rules versus relationships in a society. a. True b. False - ✔✔Ch. 5 - True One must understand when doing business in Korea that the number 4 is good, whereas the number 1 signifies death or failure. a. True b. False - ✔✔Ch. 5 - False ________ communication refers to the message's actual content. a. Backward b. Formal c. Informal d. Nonverbal e. Verbal - ✔✔Ch. 5 - E ________ are basic beliefs or philosophies that are pervasive in a society. a. Values b. Feelings c. Outlooks d. Manners and customs e. Attitudes - ✔✔Ch. 5 - A________ in a society is often a direct result of technology. a. Social institutions b. Stratification c. Aesthetics d. Intangible culture e. Material culture - ✔✔Ch. 5 - E Of the following, which dimension identified by Hofstede refers to the worth of an individual versus the worth of the group? a. Masculine vs. feminine b. Uncertainty avoidance c. Individualism vs. collectivism d. Internal control vs. external control e. Power distance - ✔✔Ch. 5 - C Of the following, which describes Trompenaars's degree to which a society compartmentalizes roles? a. Individualism vs. collectivism b. Specific vs. diffuse c. Uncertainty avoidance d. Masculine vs. feminine e. Neutral vs. emotional - ✔✔Ch. 5 - B Some examples of ________ cultural metaphors are: French wine (purity, compatibility), a German symphony (education and politics), and a British house (laying the foundation.) a. Gannon's b. Hawthorne's c. Hofstede's d. Locke'se. Trompenaars's - ✔✔Ch. 5 - A Of the following, which is NOT a cultural aspect of doing business in Japan? a. New potential business partners must have been referred to Japanese business representatives through a third party. b. The number 1 is good, whereas the number 4 signifies death. c. Japanese business has a group orientation. d. Upon meeting a Japanese executive, a slight bow and handshake are appropriate. e. It is not appropriate to look directly into the eyes of your Japanese hosts. - ✔✔Ch. 5 - B (This is a Korean cultural aspect) Of the following, which is NOT a cultural aspect of doing business in Korea? a. "We" is more important than "I." b. The left hand is viewed as "unclean." c. "Inwa" involves harmony among un-equals. d. Younger brothers and sisters are not allowed to use the names of their older siblings. e. Children are not supposed to say their parents' names, even when used with a title. - ✔✔Ch. 5 - B Check My Work ________ refers to what is perceived as taste and beauty in society. a. Social institution b. Stratification c. Material culture d. Intangible culture e. Aesthetics - ✔✔Ch. 5 - E There are ________ characteristics of culture which are important for global companies to recognize. a. three b. twoc. five d. six e. four - ✔✔Ch. 5 - E Athenian democracy refers to a form of government in which citizens vote to elect given individuals to serve as their representatives for a certain period of time. a. True b. False - ✔✔Ch. 6 - False India is currently the largest nation in the world with a communist economic ideology, and it is emerging as one of the most economically powerful countries in the world. a. True b. False - ✔✔Ch. 6 - False A potential economic risk companies face doing business internationally is inflation. a. True b. False - ✔✔Ch. 6 - True There are three primary kinds of legal systems in countries throughout the world: civil law legal systems, common law legal systems, and theocratic law legal systems. a. True b. False - ✔✔Ch. 6 - True A patent is a distinctive phrase, name, word, picture, symbol or design, or combination of these, that identifies a given business' service or product, and is owned by said business. a. True b. False - ✔✔Ch. 6 - False ________ democracy is a pure form of democracy, in which all adult citizens vote directly on matters affecting the community.a. Totalitarianism b. Egalitarian c. Athenian d. Representative e. Communism - ✔✔Ch. 6 - C ________ is an economic ideology whereby the government or state owns and controls all major factors of production and is philosophically an economically classless society. a. Representativeness b. Totalitarianism c. Communism d. Egalitarianism e. Athenian - ✔✔Ch. 6 - C The risks that economic problems or mismanagement in a given country will have a meaningful negative impact upon the conduct of business in that country are called ________ risks. a. political b. financial c. economic d. individual e. environmental - ✔✔Ch. 6 - C A(n) ________ risks refers to a political risk that affects all businesses in a given country. a. environmental b. macropolitical c. political d. micropolitical e. individual - ✔✔Ch. 6 - BWhich of the following countries was listed as the world's most dangerous in 2009? a. Somalia b. Pakistan c. Sudan d. Haiti e. Zimbabwe - ✔✔Ch. 6 - A There are essentially ________ kinds of business corruption. a. four b. five c. two d. six e. three - ✔✔Ch. 6 - C [Show More]

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