IB Final Exam Latest Updated Graded A+

According to the text, the single most important innovation in technology has been the development of the - ANSWER microprocessor _________ refers to the shift toward a more integrated and interdependent world economy. - ANSWER globalization Considering the changing demographics of the global economy, most of tomorrow's economic opportunities may be found in - ANSWER the developing or emerging nations of the world like India, Brazil, and China Although Boeing Aircraft Manufacturer is incorporated in the US, a supplier in Singapore makes the doors for the nose landing gear and suppliers in Italy make the wing flaps. Boeing is taking part in _________ - ANSWER outsourcing Managing an international business is different from managing a purely domestic business for all of the following reasons except: - ANSWER the range of problems confronted by a manager in an international business is less complicated than that confronted by a manager in a domestic business Which of the following best defines international business? - ANSWER It includes all business transactions involving two or more countries Governments have signed treaties to protect foreign-owned property rights, such as investments and patents. A primary reason for doing so is to ______ - ANSWER gain reciprocal advantages Which of the following BEST explains how a firm reduces risk by operating internationally? - ANSWER taking advantage of business-cycle differences among countries Reebok pays a royalty to the German Soccer League to use the team's logo on t-shirts that it sells. Reebok and the German Soccer League most likely have a ________. - ANSWER licensing agreement Managers who are knowledgeable about _____ are better able to identify the location, quantity, quality, and availability of the world's natural resources. - ANSWER geographic factors All of the following are reasons why expatriate managers may experience increased pressure to violate their personal ethical standards EXCEPT that - ANSWER they place a high value on adherence to human rights A(n) ______ is a formal statement of the right or wrong priorities to which a business adheres. - ANSWER code of ethics Henry is the manager of a large manufacturing facility in an Asian country. Local government officials are pressuring him to pay them a substantial bribe and are threatening to force the facility to close if he doesn't comply. Henry's company has a zero-tolerance policy toward corruption. However, Henry is aware that closing the factory will plunge the local community into unemployment and abject poverty. Henry is at a loss to know what to do. Henry is facing a(n) - ANSWER ethical dilemma Assume a firm has operations in Tokyo, where there is a collectivist culture. Which of the following would most likely motivate the firm's Japanese employees? - ANSWER good health benefits In a(n) ______ culture, people tend to regard seemingly peripheral information as pertinent to decision making and infer meanings from things that people say either indirectly or casually. - ANSWER high-context Evaluating the importance of potential clients or partners by the way they dress is an example of using ________. - ANSWER silent language The approach a company takes when it bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints is called ________. - ANSWER geocentrism Since the late 1980s, the growing emergence of freer markets has been powered by the realization that _________ - ANSWER economic growth is directly related to economic freedom When a company wishes to introduce change in a foreign country, its likelihood of success can most likely be improved by ________. - ANSWER gaining the support of local opinion leaders U.S. companies monopolize much of the international entertainment media, which largely portrays U.S. products and lifestyles as glamorous and appealing. This situation would most likely be used as an example of ________. - ANSWER cultural imperialism In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning. - ANSWER mixed Five of the fastest growing economies of the past 30 years—China, South Korea, Taiwan, Singapore, and Hong Kong—had one thing in common at the start of their economic growth - ANSWER undemocratic governments Which of the following would most likely be used in a totalitarian system to promote unconditional support for the official ideology? - ANSWER state control of the education system Which of the following is most likely a characteristic of a "partly free" country, such as Guatemala, Pakistan, or Tanzania? - ANSWER weak rule of law _________ political risks arise from political actions, such as public corruption or a partisan judicial system, that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done. - ANSWER Procedural A _______ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens. - ANSWER civil Which of the following is most likely a true statement regarding the rule of law? The rule of law is a hallmark of _______ - ANSWER a democratic government Most counterfeit goods are made in markets in which ________ is the basis of the legal system. - ANSWER the rule of man Countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to ______. - ANSWER favor domestic companies Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs? - ANSWER intellectual property violations Culture is - ANSWER a system of values and norms that constitute a design for living In a country called Dystopia, the citizens are barred from moving out of the strata they are born into. Individuals are also allowed to engage only in the occupation associated with their particular strata in life. The system of social stratification being practiced in Dystopia can be identified as a - ANSWER caste system In societies where ___________ is emphasized, the ties between individuals are tight and everyone is supposed to look after the interests of his or her group. - ANSWER collectivism In a command economy, - ANSWER the government sets goals and determines the price and quantity of what is produced Gross national income (GNI), the broadest measure of economic activity for a country, is defined as the _____. - ANSWER income generated by both total domestic production and the international production activities of national companies The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its - ANSWER gross domestic product (GDP) Eileen, a manager at an international restaurant chain, wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S. dollars. Which of the following is Eileen most likely trying to determine? - ANSWER purchasing power parity _________ typically results when demand decreases and supply increases. - ANSWER Deflation In the US, the unemployment rate indicates the ______. - ANSWER percentage of unemployed workers seeking paid work relative to the total labor force Which of the following ideas calls for assessing a country's performance based on factors such as life expectancy, leisure time, and income equality? - ANSWER happynomics The argument for ______ is that governmental import controls (quotas, duties, etc.) and export incentives (subsidies, etc.) are self-defeating and result in wasted resources. - ANSWER unrestricted free trade Which of the following is NOT consistent with the central beliefs of mercantilism? - ANSWER Policies should be put in place to minimize exports and maximize imports A country is said to have a(n) _______in the production of a product when it is more cost efficient than any other country in producing that product. - ANSWER absolute advantage Assume that country "A" specializes in producing beef more efficiently than a country with which it wants to trade. It buys wheat, which it produces less efficiently than beef, from country "B", even though it produces wheat very efficiently itself. This situation is referred to as - ANSWER comparative advantage If a company were to draw from the ideas proposed in the various theories of international trade, from a profit perspective, how would it go about selecting locations for its manufacturing businesses? - ANSWER It would disperse its production activities to those countries where they can be performed most efficiently. The saying "When in Rome, do as the Romans do" applies to the ________ approach. - ANSWER relativism Ethical dilemmas tend to be _________ for MNE managers than for domestic managers. - ANSWER more complicated A 1977 US law that outlaws bribery payments by US firms to foreign government officials is known as the _______. - ANSWER Foreign Corrupt Practices Act Meeting the needs of the present without compromising the ability of future generations to meet their own needs is known as _______. - ANSWER sustainability Monique has recently been hired as an accounts supervisor at Ballston Enterprises. She wants to understand Ballston's values and its expectations for employee behavior. Which of the following would most likely provide Monique with this information? - ANSWER code of conduct According to experts, which of the following groups most benefits from the application of tariffs? - ANSWER Government and producers (ex. manufacturers and suppliers) Which of the following is a government payment to a domestic producer? - ANSWER subsidy "An alleged example of __________ occurred in 1997, when two Korean manufacturers of semiconductors, LG Semicon and Hyundai Electronics, were accused of selling dynamic random access memory chips in the U.S. market at below their costs fo - ANSWER dumping At times, countries that it is necessary to protect industries such as those related to defense- aerospace, advanced electronics, and semiconductors- because these industries are important for - ANSWER national security Which of the following has taken over responsibility to arbitrate trade disputes and monitor the trade policies of member countries and was set up during the Uruguay Round agreement? - ANSWER World Trade Organization Nontradable goods are best defined as ________. - ANSWER products and services for which exporting costs are excessive Why is the US both an exporter and importer of such products as vehicles and passenger aircraft? - ANSWER Companies differentiate products to appeal to different consumers According to the PLC theory, at an early stage of a product's life cycle the product is likely to be made in a more ________ method than in its later stages. - ANSWER labor-intensive Between now and 2050, countries undergoing a simultaneous population reduction and an increased percentage of retirees in the population most likely will need more ________. - ANSWER immigrants Brain drain is a term that describes ________. - ANSWER a country's loss of educated, productive people Most recent inflows of FDI into developing nations have been targeted at: - ANSWER the emerging economies of North, East, and Southeast Asia The rationale for the infant-industry argument for trade protection is that - ANSWER it takes time for an industry to become competitive in world markets, so protection is needed to help this industry pass through the critical period Terms of trade refers to - ANSWER the quantity of imports that a given quantity of a country's exports can buy Which term refers to restricting imports in order to boost domestic production and consumption of goods that would otherwise be imported? - ANSWER import substitution Export-led development refers to - ANSWER a program to promote industries with export potential An argument against limiting exports to unfriendly countries is that - ANSWER the costs of the sanctions are borne by innocent people rather than by leadersq What is the main motive for countries' protection of their film/cinema industries? - ANSWER to preserve their national culture The most common type of tariff is the _________ tariff. - ANSWER import In international trade, what is a quota? - ANSWER a quantitative limit on the amount of a product that can be imported or exported A voluntary export restriction (VER) refers to - ANSWER limits placed on exports by a government of an exporting country at the request of the government of an importing country __________ integration is the political and economic agreements among countries that give preference to member countries to the agreement. - ANSWER Economic Under the WTO agreement, _________ - ANSWER a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures The goal of a _______ is to abolish all tariffs among member countries. - ANSWER free trade agreement ________ effects of trade agreements are the shifting of resources from inefficient to efficient companies as trade barriers fall. - ANSWER Static