AGB 302 Final Exam | 100 Questions with 100% Correct and Verified Answers. Latest!

AGB 302 Final Exam | 100 Questions with 100% Correct and Verified Answers. Latest! Interdependent political, economic, and legal systems of a country make up its: - Correct Answer political economy." "Modern socialism has been popularized largely through the work of ________. - Correct Answer Karl Marx" "1) In several Western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to ________. - Correct Answer privatization" "Assume that an American company today invests some of its spare cash in a Hungarian money market account that will earn 8 percent for a period of two months. Which of the following, if it happens during the next two months, would imply that the company will earn less than 8 percent on its investment? - Correct Answer The dollar appreciates against the Hungarian forint." "1) The tenet of ________ is that the welfare of society is best served by letting people pursue their own economic self-interest. - Correct Answer ) individualism" "In a pure market economy - Correct Answer production is determined by the interaction of supply and demand" "1) In a ________ 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. - Correct Answer mixed" "Which of the following statements about the legal systems of countries is true? - Correct Answer They can affect the attractiveness of a country as an investment site or market" "1) Under the ________, cases are judged with reference to three characteristics: tradition, precedent, and custom. - Correct Answer ) common law system" "1) Which of the following areas of international trade is regulated by the Foreign Corrupt Practices Act? - Correct Answer Preventing bribery and unethical acts in the conduct of international business." "1) Design and names by which merchants or manufacturers designate and differentiate their products are known as ________. - Correct Answer ) trademarks" "Which of the following refers to the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates? - Correct Answer Currency swap" "________ are exchange rates governing some specific future date foreign exchange transactions. - Correct Answer Forward exchange rates" "Assume that the current exchange rate is 1 = $1.50. If you exchange 1,000 euros for dollars, you will receive ________. - Correct Answer $1,500" "The ________ is the rate at which a foreign exchange dealer converts one currency into another currency on a particular day. - Correct Answer spot exchange rate" "The short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates is known as: - Correct Answer currency speculation." "Which of the following is the most important foreign exchange trading center? - Correct Answer London" "If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen? - Correct Answer The dollar will appreciate against the yen" "Assume that the law of one price holds. A shirt that retails for $120 in New York sells for £60 in London. The exchange rate between the British pound and the dollar is £1 = $1.50. Assuming away transportation costs and trade barriers, this creates a profit-making opportunity called ________. - Correct Answer arbitrage" "1) One of the reasons for the spread of democracy is the emergence of ________ who have pushed for democratic reforms. - Correct Answer A) increasingly prosperous middle and working classes" "1) Anecdotal comparisons suggest that the assertion that nations that invest more in ________ will have higher growth rates is true. - Correct Answer B) education" "1) Several of the fastest-growing Asian economies adopted more ________ governments during the past three decades, including South Korea and Taiwan. - Correct Answer D) democratic" "1) Which of the following helps in adjusting GNI such that it accounts for the differences in the cost of living? - Correct Answer A) Purchasing power parity (PPP) adjustment" "1) Which of the following is a measure that is developed by the United Nations to measure the quality of life in different nations? - Correct Answer Human Development Index" "1) ________, a Nobel Prize-winning economist, has argued that development is not just an economic process, but it is a political one as well. - Correct Answer Amartya Sen" "A market economy encourages innovation because - Correct Answer economic freedom leads to greater incentives for innovation" "1) The state can expropriate the profits from innovation through legal means, such as ________. - Correct Answer excessive taxation" "1) A free market economy in which property rights are protected leads to subsequent economic growth, which often leads to the establishment of: - Correct Answer a democratic regime." "1) Which of the following is a step in the shift toward a market-based economic system? - Correct Answer Creation of a legal system to safeguard property rights" "1) A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of . - Correct Answer folkways" "1) Which of the following statements about values and norms of a culture is true? - Correct Answer A) The values and norms of a society influence social structure." "1) Which of the following is a consequence of the emphasis on individual performance in many Western societies? - Correct Answer A) High degree of managerial mobility" "1) Which of the following is a 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? - Correct Answer Caste system" "1) Which of the following statements is true about a class system? - Correct Answer A) Social mobility within a class system varies from society to society." "1) Ethical systems are: - Correct Answer A) a set of moral principles, or values, that are used to guide and shape behavior." "1) Which of the following sociologists made a connection between Protestant ethics and "the spirit of capitalism"? - Correct Answer ) Max Weber" "1) According to Islam, those who hold property are regarded as . - Correct Answer trustees" "1) There are three values central to the Confucian system of ethics that have very important economic implications. Which of the following is one of these? - Correct Answer rule based law" "1) For international businesses, the connection between culture and competitive advantage is important because: - Correct Answer A) a strong connection is likely to produce the most viable competitors." "1) Companies can strengthen the of employees by committing themselves to not retaliate against employees who complain about unethical actions. - Correct Answer moral courage" "1) A firm's include customers, suppliers, and lenders. - Correct Answer external stakeholders" "1) The approaches to ethics hold that the moral worth of actions or practices is determined by their consequences. - Correct Answer utilitarian" "1) The occurs when a resource is shared by all, but owned by no one, is overused by individuals, resulting in its degradation. - Correct Answer D) tragedy of the commons" "1) The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes: - Correct Answer A) facilitating payments made to expedite routine government action." "1) A situation in which none of the available alternatives seems morally acceptable is called: - Correct Answer ) an ethical dilemma." "1) Which of the following refers to the values and norms that the employees of an organization share? - Correct Answer organization culture" "1) According to the Friedman doctrine: - Correct Answer A) businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business." "1) Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors in its subsidiary, even though it is against the multinational's home-country ethics. Which of the following approaches to business ethics would justify the actions of the multinational company? - Correct Answer Cultural relativism" "1) The righteous moralist suggests that: - Correct Answer A) a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries." "1) ________ refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country. - Correct Answer B) Free trade" "2) ________ argued that countries should specialize in the production of goods for which they have an absolute advantage. - Correct Answer B) Adam Smith" "3) The theory of comparative advantage suggests that trade is a ________ game in which all countries that participate realize economic gains. - Correct Answer C) positive-sum" "4) The ________ argues that a large proportion of the world's new products had been developed by U.S. firms. - Correct Answer A) product life-cycle theory" "5) ________ are unit cost reductions associated with a large scale of output. - Correct Answer A) Economies of scale" "6) Which of the following refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country? - Correct Answer D) Free trade" "7) David Ricardo's theory of comparative advantage explains global trade in terms of the: - Correct Answer D) international differences in labor productivity." "8) Which of the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries? - Correct Answer C) New trade theory" "9) A country has an absolute advantage in the production of a product when it: - Correct Answer D) is more efficient than any other country in producing it." "10) According to Ricardo's theory of comparative advantage, a country should produce goods: - Correct Answer D) that it produces most efficiently." "11) ________ are levied as a proportion of the value of the imported good. - Correct Answer A) Specific tariffs" "12) A(n) ________ helps domestic producers to compete against foreign imports. - Correct Answer B) import quota" "13) A company that sells its product in a foreign market below the cost of production may be accused of - Correct Answer B) dumping" "14) According to the infant industry argument, many developing countries have a potential ________ in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries. - Correct Answer C) comparative advantage" "15) Strategic trade policy suggests that a government should use ________ to support promising firms that are active in newly emerging industries. - Correct Answer D) subsidies" "16) Krugman has suggested that trade policy designed to retaliate against another country's trade policy would: - Correct Answer B) hurt the citizens of both countries." "17) A key issue in the "millennium round" of the WTO was to: - Correct Answer B) further reduce barriers to cross-border trade and investment." "18) WTO rules allow countries to ________ foreign goods that are being sold cheaper than at home, or below their cost of production, even when domestic producers can show that they are being harmed. - Correct Answer B) place countervailing duties on" "19) Inadequate protections for intellectual property: - Correct Answer C) reduce the incentive for innovation." "20) Many firms, of all national origins, increasingly depend on ________ for their competitive advantage. - Correct Answer D) globally dispersed production systems" "1) A Japanese car manufacturer acquires an Italian producer of car tires. This is an example of a(n) ________. - Correct Answer B) acquisition" "2) Developing nations currently account for ________ of FDI in the form of cross-border mergers and acquisitions. - Correct Answer C) about one-third or less" "3) The largest source country for FDI has been ________. - Correct Answer A) the United States" "4) ________ gives a firm tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability. - Correct Answer A) Foreign direct investment" "5) ________ argues that FDI is a benefit to both the source country and to the host country. - Correct Answer A) The free market view" "6) An aspect of ________ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants. - Correct Answer A) pragmatic nationalism" "7) Recent years have seen a ________ in the number of countries that adhere to a radical ideology regarding FDI. - Correct Answer D) marked decline" "8) The two most common methods of restricting inward FDI are ownership restraints and __ - Correct Answer D) performance requirements" "9) Which of the following is an example of a greenfield investment? - Correct Answer C) A Chinese sugar maker setting up a sugar crushing facility in Cuba." "10) Which of the following factors has made the United States an attractive target for foreign direct investment? - Correct Answer B) Its wealthy domestic markets" "11) ________ perform a direct connection function in capital markets. - Correct Answer D) Investment banks" "12) A(n) ________ requires a corporation to repay a predetermined portion of the loan amount at regular intervals regardless of how much profit it is making. - Correct Answer D) debt loan" "13) The cost of capital is: - Correct Answer D) higher in a purely domestic capital market than in a global market." "14) ________ refers to the movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy. - Correct Answer A) Systematic risk" "15) An integrated international capital market is ________ compared to a nonintegrated market. - Correct Answer B) highly volatile" "16) ________ deposits are regulated in most industrialized countries. - Correct Answer C) Domestic currency" "17) Investors who purchase a fixed-rate bond receive: - Correct Answer C) a fixed set of cash payoffs." "18) Borrowers can hedge against foreign exchange risks by entering into a ________ contract. - Correct Answer C) forward" "19) A ________ brings together those who want to invest money and those who want to borrow money. - Correct Answer B) capital market" "20) Market makers are: - Correct Answer B) financial service companies that connect investors and borrowers." "The movement toward regional economic integration been most successful in ________. - Correct Answer Africa" "A(n) ________ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members. - Correct Answer common market" "A(n) ________ entails even closer economic integration and cooperation than a common market. - Correct Answer economic union" "Linking neighboring countries economically and making them interdependent: - Correct Answer creates incentives to increase political cooperation as well." "The ________ is primarily a consultative rather than legislative body. - Correct Answer European Parliament" "Three long-term EU members, Great Britain, ________, and Sweden, have not adopted the euro. - Correct Answer Denmark" "The ________ was established to increase multinational cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region. - Correct Answer Asia-Pacific Economic Cooperation" "The emerging role of the ________ in competition policy suggests the EU is increasingly willing and able to intervene and impose conditions on companies proposing mergers and acquisitions. - Correct Answer European Commission" "Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to the trade of goods and services. They, however, are free to determine their own trade policies with regard to nonmembers. Which level of economic integration is this an example of? - Correct Answer A Free trade area" "Which feature of a common market differentiates it from a customs union? - Correct Answer Ability of factors of production to move freely between members" "Assuming the 30-day forward exchange rate was $1 = ×130 and the spot exchange rate was $1 = ×120, the dollar is selling at a ________ on the 30-day forward market. - Correct Answer discount"