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QUESTION

CAPELLA UNIVERSITY BUS4016 UNIT 5 QUIZ 1

Question

Question 1

4 out of 4 points

The trend from distinct national economic units toward one huge global market is commonly referred to as what?

a. Market standardization.

b. Cross-border integration.

c. Globalization.

d. Domestication.

Question 2

4 out of 4 points

Globalization results in a greater degree of __________ across markets than would be present otherwise.

a. Diversification.

b. Diversity.

c. Homogeneity.

d. Heterogeneity.

Question 3

0 out of 4 points

In producing its electronics products, Sony Corporation sources goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production. This practice is made possible by the globalization of what?

a. Finance.

b. Production.

c. Markets.

d. Process design.

Question 4

4 out of 4 points

4.Collectivism is a system that stresses the primacy of collective goals over individual goals.

True

False

Question 5

4 out of 4 points

Totalitarianism is a form of government in which one person or political party exercises absolute control over all spheres of human life and opposing political parties are prohibited.

True

False

Question 6

4 out of 4 points

Social democracy has had its greatest influence in the following countries:

a. Canada, the United States, Mexico, and Spain.

b. India, Pakistan, Burma, Nepal, Sri Lanka, and Bhutan.

c. Brazil, Chile, Uruguay, Ecuador, Columbia, and French Guiana.

d. Australia, Britain, France, Germany, Norway, Spain, and Sweden.

Question 7

4 out of 4 points

Which of the following best describes the most literal meaning of guanxi?

a. Cross-border trading.

b. Tacit knowledge.

c. Relationship.

d. Legal accountability.

Question 8

4 out of 4 points

A __________ is a system of values and norms that are shared among a group of people and that constitute a design for living when taken together.

a. Society.

b. Clique.

c. Fraternity.

d. Culture.

Question 9

4 out of 4 points

In international business settings, one of the most common ethical problems encountered involves employment practices.

True

False

Question 10

4 out of 4 points

Ethical issues arise when environmental regulations in host countries are inferior to those in the home nation.

True

False

Question 11

4 out of 4 points

_______ is a U.S. law regulating behavior regarding the conduct of international business in taking bribes and other unethical actions.

a. The Foreign Corrupt Practices Act.

b. The OECD.

c. The Code of Business Ethics.

d. The Friedman Doctrine.

Question 12

4 out of 4 points

Zero-sum game refers to a situation in which an economic gain by one country results in an economic loss by another.

True

False

Question 13

4 out of 4 points

_________ is the absence of barriers to the free flow of goods and services between countries.

a. Free trade.

b. Mercantilism.

c. Capitalism.

d. Market system.

Question 14

4 out of 4 points

Considered to be the first theory of international trade, ______________ principal assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce.

a. Collectivism's.

b. Mercantilism's.

c. Capitalism's.

d. Economic conservatism's.

Question 15

4 out of 4 points

The Buy America Act specifies that government agencies must give preference to American products when putting contracts for equipment out for bid unless the foreign products have a significant advantage.

True

False

Question 16

4 out of 4 points

Which of the following is a government payment to a domestic producer?

a. Duty.

b. Subsidy.

c. Quota.

d. Tariff.

Question 17

4 out of 4 points

In the context of international trade, __________ is defined as selling goods in a foreign market at a price below their costs of production or as selling goods in a foreign market at below their fair market price.

a. Slicing.

b. Dumping.

c. Slashing.

d. Subsidizing.

Question 18

4 out of 4 points

__________ status allows countries to export goods to the U.S. under favorable terms.

a. Most favored nation.

b. Preferential partner.

c. Fully qualified.

d. Cleared nation.

Question 19

4 out of 4 points

One problem of licensing is that it does not give the firm tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize profitability.

True

False

Question 20

4 out of 4 points

_________ occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity.

a. Cross-boarder international investment.

b. Foreign direct investment.

c. Reciprocal foreign investment.

d. International capital investment.

Question 21

4 out of 4 points

The establishment of a wholly new operation in a foreign country is referred to as what?

a. Outplacement.

b. Green-field investment.

c. New venture.

d. Exporting.

Question 22

4 out of 4 points

__________ involves producing goods at home and then shipping them to the receiving country for sale.

a. Foreign direct investment.

b. Licensing.

c. Franchising.

d. Exporting.

Question 23

4 out of 4 points

The controlling authority within the European Union is the European Council.

True

False

Question 24

4 out of 4 points

Which three countries implemented the North American Free Trade Agreement (NAFTA)?

a. Panama, Mexico, and the United States.

b. Canada, Brazil, and the United States.

c. The United States, Argentina, and Mexico.

Canada, Mexico, and the United States.

Question 25

4 out of 4 points

What four countries are in the free trade area known as MERCOSUR?

a. Chile, Mexico, Columbia, and Paraguay

b. Argentina, Brazil, Paraguay, and Uruguay

c. Chile, Brazil, Uruguay, and Columbia

d. Mexico, Columbia, Paraguay, and Uruguay

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