LATEST 2025 INTERNATIONAL BUSINESS REVIEW (CHAPTERS 1 - 4) QUESTIONS AND VERIFIED ANSWERS ALREADY GRADED A ++

LATEST 2025 INTERNATIONAL BUSINESS REVIEW (CHAPTERS 1 - 4)QUESTIONS AND VERIFIED ANSWERS ALREADY GRADED A ++ This organization is often seen as the lender of last resort. a)- TitleMax b)- World Bank c)- World Trade Organization d)- International Monetary Fund (IMF) e)- International Development Organization - ANSWER-International Monetary Fund (IMF) How has globalization enabled corporations to lower their expenses? a)- By locating manufacturing where the cost of the factors of production is lowest b)- By harvesting the lacrimal excretions of endangered species c)- By advancing their plan for total global domination d)- By exploiting the proletariat for benefit of the bourgeoisie e)- By manufacturing products out of waste materials - ANSWER-by locating manufacturing where the cost of the factors of production is lowest ________ occurs when a firm exports goods or services to consumers in another country. a)- Outsourcing b)- International trade c)- Inward investment d)- Foreign direct investment - ANSWER-International trade Foreign direct investment occurs when a firm invests resources in a.- Business activities outside its home country b.- Exported products c.- Imported products d.- Stocks and bonds in overseas markets - ANSWER-business activities outside its home country The volume of world merchandise trade and production is growing faster than world GDP. This implies that a)- The economies of the world's nation-states are becoming more independent from each other. b)- The global economy is headed for a large downward correction. c)- The world is becoming poorer. d)- More firms are dispersing their production processes to global locations. - ANSWER-more firms are dispersing their production processes to global locations. In the reading, French farmers vandalized an under-construction branch of which international franchise in protest of American trade policies? a)- Starbucks b)- Dunkin' Donuts c)- Subway d)- KFC e)- McDonald's - ANSWER-McDonald's Which factor hinders globalization of consumer goods market? a)- Increasing incomes in emerging markets b)- The continued release of convoluted super hero movies in two non-compatible universes c)- National and cultural differences in tastes and preferences d)- Increased outsourcing of goods and services e)- Homogenization of material culture - ANSWER-National and cultural differences in tastes and preferences What organization was created in 1993/1994, during the Uruguay round of trade talks? a)- World Trade Group b)- World Trade Organization c)- International Trade Group d)- International Trade Organization e)- Council of Ricks - ANSWER-World Trade Organization Globalization of markets results in markets becoming a)- Less competitive. b)- More protected. c)- Less diverse. d)- Less interdependent. - ANSWER-Less diverse. Who was the author of "The Wealth of Nations?" a)- John Stuart Mill b)- David Ricardo c)- Karl Marx d)- Adam Smith e)- Mortimer Smith, Jr. - ANSWER-Adam Smith When _____ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society." a)- Totalitarianism b)- Collectivism c)- Individualism d)- Theocracy - ANSWER-Collectivism Modern socialists trace their intellectual roots to _____, although socialist thought clearly predates this individual. a)- John Stuart Mill b)- David Ricardo c)- Karl Marx d)- Adam Smith e)- Mortimer Smith Jr. - ANSWER-Karl Marx Which statement about the legal systems of countries is true? a)- They are almost the same for all countries. b)- They are not influenced by the prevailing political system of the country. c)- They can affect the attractiveness of a country as an investment site or market. d)- They are of little importance to international business. - ANSWER-They can affect the attractiveness of a country as an investment site or market. Which of these is a characteristic of a pure command economy? a)- All businesses are owned by the state. b)- Prices are determined by market forces. c)- The goods and services that a country produces are planned by consumers. d)- There is free and fair competition between private producers. - ANSWER-All businesses are owned by the state. Which statement best characterizes the concept of individualism? a)- Individualism promotes state ownership of the basic means of production, distribution, and exchange. b)- Individualism promotes globalization. c)- Individualism creates an antibusiness environment. d)- That being selfish is the greatest thing ever e)- Individualism and democracy go hand in hand. - ANSWER-Individualism and democracy go hand in hand. The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a ________ law system. a)- Common b)- Traditional c)- Civil d)- Theocratic - ANSWER-Theocratic ________ are established through patents, copyrights, and trademarks. a)- Digital signatures b)- Ownership rights over private property c)- Ownership rights over intellectual property d)- Origination fees and tributes - ANSWER-Ownership rights over intellectual property The common law system is a)- Based on tradition, precedent, and custom. b)- Not as flexible as other systems. c)- Based on a detailed set of laws organized into codes. d)- A lesser experience compared with premium law systems. e)- Open to giving judges the power only to apply the law. - ANSWER-Based on tradition, precedent, and custom. Which of the following is true about planned economies? a)- In a planned economy, the state owns all means of production. b)- In a planned economy, individuals benefit more from innovations than the state does. c)- In a planned economy, entrepreneurs have economic incentives that encourage innovation. d)- In a planned economy, market regulations reduce the risk of economic stagnation. - ANSWER-In a planned economy, the state owns all means of production. In a ________, the state owns all means of production. a)- Planned economy b)- Mixed economy c)- Privatized economy d)- Market economy - ANSWER-Planned economy Which of the following is true about the economic risks of doing business in a country? a)- Countries with weaker property laws tend to have higher economic growth, and involve less risk. b)- Economic risks are independent of political risks. c)- The inflation rate in a country is an indicator of the economic risks of doing business in a country. d)- It is less costly to do business in relatively primitive or undeveloped economies. - ANSWER-The inflation rate in a country is an indicator of the economic risks of doing business in a country. In the case of command economies, deregulation involves a)- Removing price controls. b)- Exercising tight control over foreign trade. c)- Encouraging state ownership of enterprises. d)- Detailed state planning. - ANSWER-Removing price controls. Investing in ________ is an important determinant of economic development as it leads to higher growth rates and a more productive population. a)- Centralized urban centers b)- Education c)- Services d)- Manufacturing - ANSWER-Education Newly privatized entities often have little incentive to restructure their operations to become more efficient when a)- They continue to receive subsidies from the state. b)- They are faced with intense foreign competition. c)- Prices are set by the forces of demand and supply. d)- Foreign investment is permitted by the state. - ANSWER-They continue to receive subsidies from the state. United Nations has developed the Human Development Index (HDI) to measure the a)- Quality of human life in different nations. b)- Total income in different nations. c)- Level of political and economic freedom available to citizens. d)- Relative access to education of males and females. - ANSWER-Quality of human life in different nations. Many of the national markets of Eastern Europe, Latin America, Africa, and Asia may still be underdeveloped, but they are potentially enormous. Which of the following is a risk to businesses moving into these regions? a)- These regions are likely to have consistent domestic economic growth and not be open to foreign investment. b)- Businesses in emerging markets are frequently taken over by the states. c)- There is no guarantee that democracy will thrive in many of the world's newer democratic states. d)- It is likely that communist dictatorships will return to these regions. - ANSWER-There is no guarantee that democracy will thrive in many of the world's newer democratic states. Which of the following exemplifies privatization? a)- A country reduces trade barriers, allowing individuals to engage in export and import. b)- A country enlists the services of Somers Consultancy, a global management consulting firm, to improve the profitability of the state-owned airlines company. c)- A country sells its postal services to a consortium of companies that runs it as a profit making venture without any state funding. d)- A country allows state-owned coal companies to sell coal to private parties. - ANSWER-A country sells its postal services to a consortium of companies that runs it as a profit making venture without any state funding. Innovation and entrepreneurial activity help increase economic activity by a)- Creating new products and markets. b)- Strengthening business infrastructure. c)- Eliminating state-run enterprises. d)- Providing more authority to government officials. - ANSWER-Creating new products and markets. Which of the following is a disadvantage of a high degree of managerial mobility between companies? a)- Stagnation of the economy b)- Decrease in entrepreneurship c)- Executives are not exposed to different ways of doing business d)- Lack of loyalty and commitment to an individual company - ANSWER-Lack of loyalty and commitment to an individual company A typical American value is an expectation that people have a right to live the way they want. Values are defined as a)- Norms that are central to the functioning of a society and to its social life. b)- Ideas about what a group believes to be good, right, and desirable. c)- The routine conventions of everyday life. d)- The social rules and guidelines that prescribe appropriate behavior in particular situations. - ANSWER-Ideas about what a group believes to be good, right, and desirable. It has been argued that the success of Japanese enterprises in the global economy has been based partly on which of the following? a)- High degree of managerial mobility between companies b)- Cooperation between a company and its suppliers on issues such as design, quality control, and inventory reduction c)- Compartmentalization of different functions within Japanese companies d)- Consolidation of self-managing work teams - ANSWER-Cooperation between a company and its suppliers on issues such as design, quality control, and inventory reduction The social rules and guidelines that prescribe appropriate behavior in a particular situation are called a)- Folkways b)- Norms c)- Morés d)- Values - ANSWER-Norms People who share a common set of values and norms form a a)- Society b)- Culture c)- Country d)- Caste - ANSWER-Society Which of the following refers to a set of moral principles, or values, that are used to guide and shape behavior? a)- Ethical system b)- Caste system c)- Class system d)- Class consciousness - ANSWER-Ethical system Culture is a)- Unchanging b)- Static c)- Abstract d)- Not static - ANSWER-Not static Max Weber was a German sociologist who, in 1904, made the connection between ________ and "the spirit of capitalism." a)- Protestant ethics b)- Collectivism c)- Ethnocentrism d)- Cross-cultural literacy - ANSWER-Protestant ethics Geert Hofstede added the dimension of indulgence to the World Values Survey to refer to a)- A society that suppresses gratification of needs and regulates it by means of strict social norms. b)- The extent to which different cultures socialized women into tolerating uncertainty. c)- A society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. d)- Attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors. - ANSWER-A society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. According to the findings of the World Values Survey; a)- As countries get richer, there seems to be a shift from survival values to well-being values. b)- Globalization has resulted in increasing divergence across cultures. c)- Economic progress is accompanied by a shift in values away from individualism to collectivism. d)- As countries get richer, a shift occurs away from secular values to traditional values. - ANSWER-As countries get richer, there seems to be a shift from survival values to well-being values. Max Weber theorized that there was a relationship between Protestantism and the emergence of modern capitalism because a)- Protestantism states that spiritual growth is more important than material wealth. b)- Protestant ethics emphasize the importance of hard work and wealth creation and frugality. c)- Protestantism promotes blind loyalty to employers. d)- Protestantism promotes the hierarchical domination of religious and social life. - ANSWER-Protestant ethics emphasize the importance of hard work and wealth creation and frugality.