D080 EXAM 3 QUESTIONS AND CORRECT
ANSWERS!!
A CEO seeks to better use the economies of scale and scope of production to increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use?
Cost
A CEO seeks to better use the economies of scale and scope of production to increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use?
Cost
A CEO is discussing an expansion of production of a company's highly perishable dairy
line in a country that can offer low labor costs and good internet connections. The country
has no highways, and roads are poorly maintained.
Which challenge to international business expansion do the road conditions present?
Infrastructure
Six Sigma
A method that provides tools for organizations to increase performance and decrease process
variation
Which factor of CAGE addresses differences in country size that affect barriers to
globalization?
Economics
Gini coefficient
Measures the inequality among values of a frequency distribution such as levels of income
Happy Planet Index
Measures how well nations are doing at achieving long, happy, sustainable lives
,Which argument is used by critics who wish to discourage movement towards
globalization?
It increases the wealth of the rich rather than the poor.
gross domestic product (GDP)
The total value of goods and services provided in a country in a one-year period
gross national product (GNP)
The total value of goods and services provided by a country, both inside and outside of its
borders, in a one-year period
Which type of economy is decentralized and allows firms and households to participate in
global trade with minimum governmental interference?
Market
Which type of legal system is based on a code and focuses on how the law is applied to the
facts?
Civil
Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases?
Common
Which legal system can vary from community to community and is found in countries
without strong formal justice systems?
Customary
In which legal system does a judge decide the applicable law for the case as a jury
determines the facts?
Common
Common law
,Based on precedence. Any activity that is not clearly illegal may be acceptable. The role of the
judge is to hear arguments from both parties and make a judgment. This judgment stands as
precedent for future cases.
Religious law
based on religious beliefs. One example is a requirement in Sharia that people following Sharia
may not borrow money. To compensate for the inability to take on debt, an asset-based system
has been established.
balance of payments
The difference in total value between payments into and out of the country over a period of time
fixed-rate currency exchange system
When a country's currency value is fixed or pegged by a monetary authority against the value of
another currency, a basket of currencies, or another measure of value
World Bank
~ Encourages developing countries to borrow for development projects
~ Developmental institution
~ Financed reconstruction after wars in the 1940s. It is now focused on supporting developing
countries
~ Large: 40 offices, over 10,000 staff
~ Investment bank owned by the governments of the 180 member nations
~ Borrows and loans
~ Borrowers must meet requirements to qualify for loans
International Monetary Fund
, ~ Oversees the international monetary system
~ Cooperative institution
~ In phase one, prior to 1973, regulated international exchange rates
In phase two, post-1973, provides a means for effective international currency exchange,
supervises economic policies, and provides financial assistance to members
~ Small: 2,300 staff members
~ Resources come from quota subscriptions or membership fees
~ Acts more like a credit union
~ Loans to all member nations
Which activity of the International Monetary Fund (IMF) impacts policymaking?
Being owned and directed by the governments of the member nations
What is a characteristic of the International Monetary Fund (IMF)?
The IMF is a cooperative institution and provides more effective currency exchange.
What was the initial purpose of the International Monetary Fund (IMF) in phase one, prior
to 1973?
Regulated currency exchange between nations
privatization
Selling government holdings to private companies
deregulation
The removal of regulations or restrictions in a particular industry
ANSWERS!!
A CEO seeks to better use the economies of scale and scope of production to increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use?
Cost
A CEO seeks to better use the economies of scale and scope of production to increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use?
Cost
A CEO is discussing an expansion of production of a company's highly perishable dairy
line in a country that can offer low labor costs and good internet connections. The country
has no highways, and roads are poorly maintained.
Which challenge to international business expansion do the road conditions present?
Infrastructure
Six Sigma
A method that provides tools for organizations to increase performance and decrease process
variation
Which factor of CAGE addresses differences in country size that affect barriers to
globalization?
Economics
Gini coefficient
Measures the inequality among values of a frequency distribution such as levels of income
Happy Planet Index
Measures how well nations are doing at achieving long, happy, sustainable lives
,Which argument is used by critics who wish to discourage movement towards
globalization?
It increases the wealth of the rich rather than the poor.
gross domestic product (GDP)
The total value of goods and services provided in a country in a one-year period
gross national product (GNP)
The total value of goods and services provided by a country, both inside and outside of its
borders, in a one-year period
Which type of economy is decentralized and allows firms and households to participate in
global trade with minimum governmental interference?
Market
Which type of legal system is based on a code and focuses on how the law is applied to the
facts?
Civil
Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases?
Common
Which legal system can vary from community to community and is found in countries
without strong formal justice systems?
Customary
In which legal system does a judge decide the applicable law for the case as a jury
determines the facts?
Common
Common law
,Based on precedence. Any activity that is not clearly illegal may be acceptable. The role of the
judge is to hear arguments from both parties and make a judgment. This judgment stands as
precedent for future cases.
Religious law
based on religious beliefs. One example is a requirement in Sharia that people following Sharia
may not borrow money. To compensate for the inability to take on debt, an asset-based system
has been established.
balance of payments
The difference in total value between payments into and out of the country over a period of time
fixed-rate currency exchange system
When a country's currency value is fixed or pegged by a monetary authority against the value of
another currency, a basket of currencies, or another measure of value
World Bank
~ Encourages developing countries to borrow for development projects
~ Developmental institution
~ Financed reconstruction after wars in the 1940s. It is now focused on supporting developing
countries
~ Large: 40 offices, over 10,000 staff
~ Investment bank owned by the governments of the 180 member nations
~ Borrows and loans
~ Borrowers must meet requirements to qualify for loans
International Monetary Fund
, ~ Oversees the international monetary system
~ Cooperative institution
~ In phase one, prior to 1973, regulated international exchange rates
In phase two, post-1973, provides a means for effective international currency exchange,
supervises economic policies, and provides financial assistance to members
~ Small: 2,300 staff members
~ Resources come from quota subscriptions or membership fees
~ Acts more like a credit union
~ Loans to all member nations
Which activity of the International Monetary Fund (IMF) impacts policymaking?
Being owned and directed by the governments of the member nations
What is a characteristic of the International Monetary Fund (IMF)?
The IMF is a cooperative institution and provides more effective currency exchange.
What was the initial purpose of the International Monetary Fund (IMF) in phase one, prior
to 1973?
Regulated currency exchange between nations
privatization
Selling government holdings to private companies
deregulation
The removal of regulations or restrictions in a particular industry
