BUSMHR 2000 Exam 1 | Questions with 100% Correct Answers

BUSMHR 2000 Exam 1 | Questions with 100% Correct Answers Grossman and Krueger's study revealed the relationship between pollution levels and income. Which pollutant was the exception to their study? nitrous oxide sulfur dioxide lead carbon dioxide hydrogen When considering globalization, what is considered the single most important innovation since World War II? higher education transcontinental air transport the telephone the microprocessor cross-country railway systems Which of these companies exemplifies the globalization of markets? The clothes of Sea Shell Fashions, a U.S.-based company, are hand-sewn by workers in India. The accounts of a U.K.-based finance company are maintained and managed by an accounting firm in the Czech Republic. Fluffy Pillows, a U.S.-based pillow company, sells the same pillows worldwide. Iconic Industries Inc., a U.S. energy company, has generated capital from investors all over the world. Wine producer Violet Wines procures high-quality grapes from neighboring countries. Technology is indicated as having a major impact on the declining share of national income enjoyed by labor. If this is the case, what is a logical solution to this problem? increasing society's investment in education restricting exports of jobs restricting access to technology decreasing the wage rates of skilled workers increasing the supply of unskilled workers Which institution was established as a result of the Uruguay Round of GATT? United Nations World Bank International Monetary Fund World Trade Organization Group of Twenty What occurs according to Moore's law? The power of microprocessor technology doubles and its cost of production falls in half every 18 months. The demand for microprocessor technology falls in half every 18 months. The demand for microprocessors continues to rise, while their supply falls. The price of microprocessors continues to fall, while their cost of production increases. The cost of microprocessors increases as their power increases. 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 international trade. outsourcing. foreign direct investment. globalization of production. trade protectionism. What was the motivation for non-U.S. firms to begin investing across national borders in the 1970s? desire to disperse production activities to optimal locations host of investment opportunities in foreign nations shift toward a more integrated and interdependent global economy rise in barriers to trade and foreign direct investments limits imposed by government intervention in international trade Gigantic Games., a U.S.-based company that specializes in strategy-based board games, has production facilities in Poland and Spain. Based on this information, Gigantic Games can be classified as what type of enterprise? local multinational private public semipublic One cost-cutting measure used by Garr Tool Corp. is sourcing the parts it uses from companies in Germany, Ireland, and Canada that are more economical than home-country sources. The choice to use these sources is an example of the emergence of global institutions. regulation of the environment. globalization of production. globalization of markets. company's social responsibility. Economist Robert Reich advocates that the outsourcing of productive activities to different suppliers results in the creation of unlimited costs. global products. national tensions. a single currency. a global legal system. California-based Urban Health Source has invested resources in business activities in Italy. What type of business activity does this represent? multinational exchange foreign direct investment exporting globalization of markets international trade Shannon works as the executive manager of an international business, while Bob is the executive manager of a purely domestic business. Which of these responsibilities apply to both Shannon and Bob? dealing with government restrictions on international trade and investment adopting the appropriate policies for coping with country differences dealing with business attacks from competitors choosing the appropriate mode for entering a particular country for business coordinating and controlling globally dispersed production activities According to globalization supporters, what is an advantage of globalization? Globalization provides more economic power to national governments. As a result of globalization, pollution levels fall significantly in the world's poorer nations. As a result of globalization, countries relax their labor standards. Globalization leads to tougher environmental regulations which significantly decrease the costs of manufacturing enterprises. Globalization helps create jobs in all countries that participate in the global trading system. The merging of national markets that have historically been distinct and separate is the process of globalization. containerization. industrialization. foreign direct investment. international business People in the West tend to associate a representative democracy with weak property rights protection. a command economic system. a theocratic regime. low level of life expectancy at birth. a market economic system. A country that has ________ is an unattractive choice for international business. strong protection of property rights market-based economic policies a closed totalitarian dictatorship the presence of business contract law a large market size in terms of population When Mark Zuckerberg co-founded Facebook, he was acting as a(n) ________ since he was the first to commercialize this innovative new product. late-mover political action committee multinational regulator entrepreneur If a country exercises tight control over prices and output, prohibits private enterprises from operating in most sectors of the economy, and severely restricts foreign direct investment and international trade, it is against the practice of protectionism. deregulation. a command economy. collectivism. industrialization. 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? ethical legal economic technological political In 2017, the Brazilian government transferred the state ownership of the electric company, the airports, highways, and ports to private investors to stimulate the economy. This is an example of communism. protectionism. nationalization. privatization. socialism. The spread of democracy among countries is most likely to lead to the widespread use of centrally planned command economies. a strong shift toward a mixed economy. the promotion of greater competition. a decline in privatization. a decrease in innovation and entrepreneurship. The main reason that gross national income figures can be misleading is because they don't consider differences in the cost of living. are determined by individual governments instead of a national institution. are an adjustment of the purchasing power parity (PPP). measure the total dollar amount of imports coming into a nation. allow for a direct comparison of living standards in different countries. A country that has ________ lowers the risk of doing business in that country. a high rate of inflation a low standard of living the presence of more than one ethnic nationality the presence of a strong legal system a large number of nonperforming loans Julie asked her assistant to determine the gross national income of three different countries by evaluating the GNI against the cost of living in the United States. What measure is Julie asking her assistant to use? factor endowments gross domestic product return on investment cash reserve ratio purchasing power parity The base for the adjustment of purchasing power parity is the cost of living in the United Kingdom. the United States. China. Brazil. Russia. Corinne has analyzed the overall attractiveness of doing business with three possible countries and has determined that Country A is the best choice based on the potential for huge economic growth that should occur there because of recent advances in technology. Which factor of overall attractiveness is Corinne basing her decision on? costs risks norms behaviors benefits In many of the world's nation-states, there has been a move away from ________ since the late 1980s. economic gains democratization free markets centrally planned command economies legal systems to safeguard property rights What is one of the three measures used to determine the Human Development Index (HDI) of a country? life expectancy at birth gender ratio carbon footprint of the country wholesale price index factors endowments A country that abolishes laws that regulate private enterprises and removes price controls is in the process of deregulation. industrialization. divestiture. diversification. isolationism. Which of the following BEST increases a country's competitive advantage and its attractiveness as a location for international business? prevalence of communist ideals education system that is well developed belief in monotheism presence of more than one language or culture presence of class or caste differences MaryAnne is always late to meetings and she knows she needs to be better about being on time because it is expected by almost everyone living in the United States. This attitude toward time is an example of a moral. belief. value. folkway. mores. The social strata evident in a society is primarily derived from socioeconomic characteristics. evidence of competition. government policy. the collectivistic nature of the group. individual characteristics such as physical appearance. While it might differ in other countries, in the United States the customary distance apart that should be used in a business discussion is 3-5 feet. 5-8 feet. 18-24 inches. at least 10 feet. 36 inches or under. The social rules and guidelines that prescribe appropriate behavior in particular situations are called values. traditions. taboos. norms. customs. Which scenario best represents a mores violation? Showing up late to a meeting in a country where time is equivalent to money. Failing to bow in a country where bowing is a sign of respect. Wearing casual clothes to a meeting in a country where the dress code is very formal. Addressing a business partner by their first name in a country where appropriate titles and last names are used. Bribing a government official in a country where bribery is illegal. According to Geert Hofstede, what dimension captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors? social mobility class consciousness uncertainty avoidance power distance long-term versus short-term orientation Shayla is from South Africa and believes that the customs and beliefs of her culture are superior to those she has encountered during her trip to America. Shayla's attitude is an example of ethnocentrism. Confucian dynamism. cultural convergence. collectivism. class consciousness. The mother tongue of the largest number of people is Mandarin. French. English. Spanish. Hindi. Jason runs a manufacturing company. He hires five people based on their physical abilities because they are able to lift heavy boxes in the stockroom and two people based who are able to strategically plan the company's next steps. Jason realizes that people are not equal in physical and intellectual capabilities, an aspect of which cultural