.

Which of the following is not a concern of critics of globalization and supranational

organizations?
Student
Response
Value Correct
Answer
Feedback
A. Unelected
bureaucrats
of
supranational
organizations
would impose
policies on the
democratically
elected
governments
of nation-
states

B. Supranational
organizations
would
undermine
the
sovereignty of
democratically
elected states

C.
A nation's
ability to
control its
own destiny
would be
limited by
supranational
organizations
0%
D. Real power
would reside
with individual
nation-states,
not
supranational
organizations




Score: 0/1
Comments:


2.


Which of the following does not help create an economic system that is favorable to
international business?
Student
Response
Value Correct
Answer
Feedback
A. Decreased
privatization



B. Widespread
deregulation

C. Open
markets

D.
Falling trade
and
investment
barriers
0%

Score: 0/1
Comments:


3.


Technological innovations have facilitated all of the following except
Student
Response
Value Correct
Answer
Feedback
A. Globalization
of production

B. Globalization
of markets

C. Creation of
electronic
global
marketplaces

D.
Creation of
absolutely
homogeneous
consumer
markets
100%



Score: 1/1
Comments:


4.


The growing integration of the world economy is
Student
Response
Value Correct
Answer
Feedback
A.
Increasing the
intensity of
competition in
a wide range
of
manufacturing
and service
industries
100%


B. Decreasing
the intensity
of competition
in
manufacturing
industries and
increasing the
intensity of
competition in
services

C. Increasing the
intensity of
competition in
manufacturing
industries and
decreasing
the intensity
of competition
in services

D. Narrowing the
scope of
competition in
a wide range
of service,
commodity
and
manufacturing
industries


Score: 1/1
Comments:


5.


Which of the following is not an impediment that makes it difficult for firms to achieve the
optimal dispersion of their productive activities to locations around the globe?
Student
Response
Value Correct
Answer
Feedback
A.
Reduced
transportation
costs
100%


B. Government
regulations

C. Issues
associated
with
economic and
political risk

D. Barriers to
foreign direct
investment


Score: 1/1
Comments:


6.


This can be defined as the likelihood that a trading partner will opportunistically break a
contract or expropriate property rights.
Student
Response
Value Correct
Answer
Feedback
A.
Legal risk 100%


B. Economic
risk

C. Product risk
D. Environment
risk


Score: 1/1
Comments:


7.


This law Passed by the United States in 1970 makes it illegal to bribe a foreign
government official in order to maintain business over which that foreign official has
authority and requires all publicly traded companies to keep detailed records that would
allow determining whether a violation of the act has occurred is known as the
Student
Response
Value Correct
Answer
Feedback
A. CIGS
B.
Foreign
Corrupt
Practices Act
100%


C. Economic
Cooperation
Anti
Corruption
Act
D. Convention
on
Combating
Bribery of
Foreign
Officials in
International
Transactions


Score: 1/1
Comments:


8.


Which of the following countries can be best described as a communist totalitarian
regime?
Student
Response
Value Correct
Answer
Feedback
A. Japan
B. Singapore
C.
North
Korea
100%


D. Philippines
Score: 1/1
Comments:


9.


A state where political power is monopolized by a party, group or individual that governs
according to religious principles is best described as following
Student
Response
Value Correct
Answer
Feedback
A.
Theocratic
totalitarianism
100%


B. Tribal
totalitarianism

C. Right-wing
totalitarianism

D. Communist
totalitarianism
Score: 1/1
Comments:


10.


Individualism is built on two central tenets:
Student
Response
Value Correct
Answer
Feedback
A. Socialism is
the
preferred
political
philosophy
and an
emphasis on
the
importance
of collective
interests
over
individual
interests

B. An emphasis
on the
importance
of collective
interests
over
individual
interests and
the belief
that the
welfare of
society is
best served
by giving
precedence
to its needs
over
individual
needs

C. The needs of
society as a
whole are
more
important
than
individual

freedoms
and social
welfare is to
be achieved
even if at
the cost of
individual
freedom
D.
An emphasis
on the
importance
of
guaranteeing
individual
freedom and
self
expression
and the
belief that
the welfare
of society is
best served
by letting
people
pursue their
own
economic
self-interest
100%



Score: 1/1
Comments:


11.


Hofstede's dimension of Confucian dynamism
Student
Response
Value Correct
Answer
Feedback
A.
Captures
attitudes
toward time,
persistence,
ordering by
status,
protection of
face, respect
for tradition
and
reciprocation
of gifts and
favors
100%


B. Focuses on
how a
society deals
with the fact
that people
are unequal
in physical
and
intellectual
capabilities

C. Explores the
relationship
between the
individual
and his or
her fellows

D. Looks at the
relationship
between
gender and
the ability to
accept
ambiguous
situations


Score: 1/1
Comments:


12.


The _____ dimension of Hofstede's study explores how a society deals with the fact that
people are unequal in physical and intellectual capabilities.
Student
Response
Value Correct
Answer
Feedback
A.
Power
distance
100%


B. Individualism
vs.
collectivism

C. Uncertainty
avoidance

D. Masculinity
vs.
femininity


Score: 1/1
Comments:


13.


While _____ is the mother tongue of the largest number of people in the world, the most
widely spoken language is ----------.
Student
Response
Value Correct
Answer
Feedback
A. Spanish;
Chinese

B.
English;
Hindi
0%
C. Hindi;
Spanish

D. Chinese;
English




Score: 0/1
Comments:


14.


According to _____ the way to achieve nirvana is to lead a severe ascetic lifestyle of
material and physical self-denial, devoting life to a spiritual rather than material quest.
Student
Response
Value Correct
Answer
Feedback
A.
Buddhism 0%
B. Hinduism


C. Confucianism
D. Islam
Score: 0/1
Comments:


15.


The system of values and norms that are shared among a group of people and that when
taken together constitute a design for living best defines
Student
Response
Value Correct
Answer
Feedback
A.
Society 0%
B. Value
systems

C. Principles
D. Culture



Score: 0/1
Comments:


16.


Under the veil of ignorance, everyone is imagined to be ignorant of
Student
Response
Value Correct
Answer
Feedback
A.
All of his or
her particular
characteristics
100%


B. Fundamental
rights and
privileges

C. The moral
worth of
actions or
practices

D. The minimum
levels of
morally
acceptable
behavior


Score: 1/1
Comments:


17.


Article 1 of the United Nations' Universal Declaration of Human Rights states: "All human
beings are born free and equal in dignity and rights." This best echoes
Student
Response
Value Correct
Answer
Feedback
A. Cultural
relativism

B. Friedman
doctrine

C. The
righteous
moralist
approach

D.
Kantian
ethics
100%



Score: 1/1
Comments:


18.


The _____ approach asserts that if a manager of a multinational sees that firms from
other nations are not following ethical norms in a host nation, that manager should not
either.
Student
Response
Value Correct
Answer
Feedback
A. Cultural
relativism

B. Friedman
doctrine

C. Righteous
moralist

D.
Naive
immoralist
100%



Score: 1/1
Comments:


19.


The righteous moralist approach to business ethics is typically associated with managers
from
Student
Response
Value Correct
Answer
Feedback
A. Third world
nations

B. Underdeveloped
nations

C. Developing
nations

D.
Developed
nations
100%



Score: 1/1
Comments:


20.


Expatriate managers may experience more than the usual degree of pressure to violate
their personal ethics because of all of the following reasons except
Student
Response
Value Correct
Answer
Feedback
A. They are away
from their
ordinary social
context and
supporting
culture

B.
They are
psychologically
and
geographically
closer to the
parent
company
100%


C. They may be
based in a
culture that
does not place
the same
value on
ethical norms
important in
the manager's
home country

D. They may be
surrounded by
local
employees
who have less
rigorous
ethical
standards


Score: 1/1
Comments:


21.


According to the product life cycle theory, the locus of global production initially switches
from the U.S. to other advanced nations and then from those nations to developing
countries. The consequence of this trend for the pattern of world trade is that over time
the U.S.
Student
Response
Value Correct
Answer
Feedback
A. Becomes
the sole
producer
of a
product
B.
Switches
from
being an
exporter
of the
product to
being an
importer
of the
product
100%


C. Switches
from
being an
importer
of the
product to
being an
exporter
of the
product

D. Becomes
the sole
consumer
of the
product


Score: 1/1
Comments:


22.


Raymond Vernon argued that new products were developed by U.S. firms and first sold in
the U.S. market because
Student
Response
Value Correct
Answer
Feedback
A. European
competitors
were not
active in
product
R&D

B. American
firms were
able to
take

advantage
of tax
credits for
product
R&D
C.
The wealth
and size of
the US
market
gave the
firms an
incentive to
develop
new
products
100%


D. The low
cost of U.S.
labor gave
U.S. firms
an
incentive to
develop
costly
process
innovations


Score: 1/1
Comments:


23.


China, deliberately keeping its currency value low against the U.S. dollar in order to sell
more goods to the United States and thus amass a trade surplus and foreign exchange
reserves is viewed by critics as following a
Student
Response
Value Correct
Answer
Feedback
A. Zero-sum
game

B.
Neo-
mercantilist
policy
100%


C. Positive-
sum game

D. Free trade
policy


Score: 1/1
Comments:


24.


According to the _____, US is a major player in the commercial jet aircraft industry
because US firms were first movers in the world market.
Student
Response
Value Correct
Answer
Feedback
A.
Product life
cycle theory
0%
B. Theory of
mercantilism

C. New trade
theory



D. Theory of
absolute
advantage


Score: 0/1
Comments:


25.


This theory explains the observed patterns of international trade by emphasizing the
interplay between the proportions in which the factors of production are available in
different countries and the proportions in which they are needed for producing particular
goods.
Student
Response
Value Correct
Answer
Feedback
A. Mercantilism
B. Absolute
advantage

C. Heckscher-
Ohlin



D.
Comparative
advantage
0%

Score: 0/1
Comments:


26.


The WTO argues that by removing all tariff barriers and subsidies to agriculture all of the
following would occur, except
Student
Response
Value Correct
Answer
Feedback
A.
The overall
level of trade
would increase
0%
B. There would
be
overproduction
of products
that are
heavily
subsidized



C. Prices would
fall for
consumers

D. Global
economic
growth would
rise


Score: 0/1
Comments:


27.


_____ argues that a strategic trade policy aimed at establishing domestic firms in a
dominant position in a global industry is a beggar-thy-neighbor policy that boosts national
income at the expense of other countries.
Student
Response
Value Correct
Answer
Feedback
A.
David
Ricardo
0%
B. Adam
Smith

C. Michael
Porter

D. Paul
Krugman




Score: 0/1
Comments:


28.


The _____ specifies that government agencies must give preference to American products
when putting contracts for equipment out to bid unless the foreign products have a
significant price advantage.
Student
Response
Value Correct
Answer
Feedback
A.
Buy
America
Act
100%


B. Anti-
Dumping
Act

C. Helms-
Burton Act

D. D'Amato
Act


Score: 1/1
Comments:


29.


In the United States only firms allowed to import cheese are certain trading companies,
each of which is allocated the right to import a maximum number of pounds of cheese
each year. Identify the trade restriction being imposed by the U.S. here.
Student
Response
Value Correct
Answer
Feedback
A.
Import
quota
100%


B. Subsidy
C. Ad
valorem
tariff

D. Specific
tariff


Score: 1/1
Comments:


30.


According to the _____ policy, subsidies can help a firm achieve a first-mover advantage
in an emerging industry.
Student
Response
Value Correct
Answer
Feedback
A.
Strategic 100%


trade
B. Antidumping
C. Tariff quota
D. Free trade
Score: 1/1
Comments:


31.


You are the CEO of a company that has to choose between making a $100 million
investment in Russia or the Czech Republic. Both investments promise the same long-run
return, so your choice is driven by risk considerations. Assess the various risks of doing
business in each of these nations. Which investment would you favor and why?
Student
Response:
I would favor the investment with the Czech Republic. Russia has very strict
political authority that would make any kind of trade difficult. Also, there is a
lot of crime to contend with in Russia. The Czech Republic has none of these.

Sample
Correct
Answer
Maximum Points: 5
Correct/ Suggested Answer:
Comments- When assessing the risks of investment, one should consider the
political, economic, and legal risks of doing business in both Russia and the
Czech Republic. The political risk in Russia is still high but it is undergoing
continual governmental changes, and courting foreign investment. Relatively,
the Czech Republic is more stable, but it may have less potential. On the
economic front, both countries have inflation and high economic turmoil as
unproductive factories are still struggling. From the legal perspective, the
Czech Republic is making clear progress, while the situation in Russia is
unclear. Thus at this time, the risk in Russia would clearly be higher.

General
Feedback:
Maximum Points: 5
Correct/ Suggested Answer:
Comments- When assessing the risks of investment, one should consider the
political, economic, and legal risks of doing business in both Russia and the
Czech Republic. The political risk in Russia is still high but it is undergoing
continual governmental changes, and courting foreign investment. Relatively,
the Czech Republic is more stable, but it may have less potential. On the
economic front, both countries have inflation and high economic turmoil as
unproductive factories are still struggling. From the legal perspective, the
Czech Republic is making clear progress, while the situation in Russia is
unclear. Thus at this time, the risk in Russia would clearly be higher.

Score: 4.5/5
Comments:


32.


You are an employee of an U.S. firm that produces personal computers in Thailand and
then exports them to the U.S. and other countries for sale. The personal computers were
originally produced in Thailand to take advantage of relatively low labor costs and a skilled
workforce. Other possible locations considered at that time were Malaysia and Hong
Kong. The US government decides to impose punitive 100% ad valorem tariffs on imports
of computers from Thailand to punish the country for administrative trade barriers that
restrict U.S. exports to Thailand. How do you think your firm should respond? What does
this tell you about the use of targeted trade barriers?
Student
Response:
not answered

Sample
Correct
Answer
Maximum Points: 5
Correct/ Suggested Answer:
Comments- As long as the manufacturing requirements haven't changed
significantly, looking at Malaysia or Hong Kong again for production would
appear obvious. When the U.S. government introduces a specific ad valorem
tariff on Thai computer imports, it forces manufacturers to get around these
restraints by developing other strategies, including looking at other locations.
Another approach would be to produce the computers in sections and then
assemble them in the U.S., depending on the legislation. Or continue
manufacture in Thailand and assemble them in Malaysia or HK. Such
targeted trade barriers can often be easily circumvented. Targeted trade
barriers, like most forms of government intervention, are usually ineffective.
General
Feedback:
Maximum Points: 5
Correct/ Suggested Answer:
Comments- As long as the manufacturing requirements haven't changed
significantly, looking at Malaysia or Hong Kong again for production would
appear obvious. When the U.S. government introduces a specific ad valorem
tariff on Thai computer imports, it forces manufacturers to get around these
restraints by developing other strategies, including looking at other locations.
Another approach would be to produce the computers in sections and then
assemble them in the U.S., depending on the legislation. Or continue
manufacture in Thailand and assemble them in Malaysia or HK. Such
targeted trade barriers can often be easily circumvented. Targeted trade
barriers, like most forms of government intervention, are usually ineffective.
Score: 0/5
Comments: not answered