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Question 1 1 out of 1 points 1 out of 1 points 1 out of 1 points 1 out of 1 points Which of the following is not characteristic of globalization? Selected Answer: perceived distance is increasing between nations is increasing due to advances in transportation and telecommunications Correct Answer: perceived distance is increasing between nations is increasing due to advances in transportation and telecommunications Questio n 2 1 out of 1 points 1 out of 1 points 1 out of 1 points 1 out of 1 points Globalization has __________ the opportunities for a firm to expand its revenues by selling around the world and __________ its costs by producing in nations where key inputs are cheap. Selected Answer: increased, reduced Correct Answer: increased, reduced Questio n 3 1 out of 1 points 1 out of 1 points 1 out of 1 points 1 out of 1 points Falling barriers to cross-border trade: Selected Answer: have made it easier to sell internationally Correct Answer: have made it easier to sell internationally Questio n 4 1 out of 1 points 1 out of 1 points 1 out of 1 points 1 out of 1 points The trend toward a more integrated global economic system that has been in place for many years is commonly referred to as: Selected Answer: globalization Correct Answer: globalization Questio 1 out of 1 points 1 out of 1 points 1 out of 1 points 1 out of 1 points

INTMGT Midterm Quiz W09 BS

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Page 1: INTMGT Midterm Quiz W09 BS

Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following is not characteristic of globalization?      

Selected Answer:

   perceived distance is increasing between nations is increasing due to advances in transportation and telecommunications

Correct Answer:

   perceived distance is increasing between nations is increasing due to advances in transportation and telecommunications

     

    Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Globalization has __________ the opportunities for a firm to expand its revenues by selling around the world and __________ its costs by producing in nations where key inputs are cheap.

     

Selected Answer:    increased, reduced Correct Answer:    increased, reduced

     

    Question

3 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Falling barriers to cross-border trade:      

Selected Answer:    have made it easier to sell internationally Correct Answer:    have made it easier to sell internationally

     

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The trend toward a more integrated global economic system that has been in place for many years is commonly referred to as:

     

Selected Answer:    globalization Correct Answer:    globalization

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The merging of historically distinct and separate national markets into one huge global marketplace is referred to as the __________.

     

Selected Answer:    globalization of markets Correct Answer:    globalization of markets

     

    Question

6 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

In the U.S., ________ percent of firms that export are small companies employing fewer than 100 people.

     

Selected Answer:    90 Correct Answer:    90

     

    Question

7 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The most global of markets are not markets for __________, where national differences in tastes and preferences are still often important enough to act as a brake on globalization.

     

   

Page 2: INTMGT Midterm Quiz W09 BS

Selected Answer:    consumer goods Correct Answer:    consumer goods

    Question

8 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

As a result of __________, a company such as IBM can build the case, keyboard and hard drive for its product in one country, build the wireless card in a second country, the microprocessor in a third country, and assemble it in still another country.

     

Selected Answer:    the globalization of production Correct Answer:    the globalization of production

     

    Question

9 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

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

     

Selected Answer:    homogeneity Correct Answer:    homogeneity

     

    Question

10 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The globalization of __________ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital).

     

Selected Answer:    production Correct Answer:    production

     

  TWO   Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The two major activities of exporting to and production in overseas markets are(is)      

Selected Answer:    related to international trade and foreign direct investment. Correct Answer:    related to international trade and foreign direct investment.

     

    Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following is not true of the proportion of world merchandise exports between 1980 and 2004?

     

Selected Answer:

   The proportion of exports coming from the regions of Latin America, Africa, and the Middle East increased.

Correct Answer:

   The proportion of exports coming from the regions of Latin America, Africa, and the Middle East increased.

     

    Question

3 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The share of manufacturing value-added for developing regions, between 1980-2001, shows all of the following trends, except

     

Selected Answer:

   Africa and Latin America have added appreciably to their proportion of worldwide manufacturing value added.

     

Page 3: INTMGT Midterm Quiz W09 BS

Correct Answer:

   Africa and Latin America have added appreciably to their proportion of worldwide manufacturing value added.

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

A notable difference between trade in services and trade in merchandise, in terms of the countries represented among the leaders, is that the only emerging economies ranking among the leaders for both exports and imports of services are

     

Selected Answer:    China and India. Correct Answer:    China and India.

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

One reason why the United States exports more to developing nations than most developed nations do is that

     

Selected Answer:

   American firms have significantly more subsidiaries in developing nations.

Correct Answer:    American firms have significantly more subsidiaries in developing nations.

     

    Question

6 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Most of Canada's exports going to the United States, after 1989, as a result of the U.S.-Canada Free Trade Agreement and the subsequent North American Free Trade Agreement, is an example of

     

Selected Answer:    the increased regionalization of trade. Correct Answer:    the increased regionalization of trade.

     

    Question

7 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

All of the following are some of the reasons for focusing attention on a nation that is already a trading partner, except

     

Selected Answer:    The marketing strategies are already in place for these nations.

Correct Answer:    The marketing strategies are already in place for these nations.

     

    Question

8 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following is not a reason why many of the Asian countries, which are trading partners of the United States, also appear as importers of American goods?

     

Selected Answer:

   The growing focus of the United States on these nations has led to their having better trade agreements.

Correct Answer:

   The growing focus of the United States on these nations has led to their having better trade agreements.

     

    Question

9 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

_____ is the purchase of stocks and bonds solely for the purpose of obtaining a return on the funds invested.

     

   

Page 4: INTMGT Midterm Quiz W09 BS

Selected Answer:    Portfolio investment Correct Answer:    Portfolio investment

    Question

10 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The continued economic development of developing nations is reflected in the fact that from1985 to 2004 their FDI proportion has more than

     

Selected Answer:    doubled. Correct Answer:    doubled.

     

  THREE   Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The content of the Chicago Boys' program, a new program designed by Chilean economists appointed by the post-Allende government, was largely based on the theory of

     

Selected Answer:    comparative advantage. Correct Answer:    comparative advantage.

     

    Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following is not an argument propounded by Adam Smith against Mercantilism in his theory of absolute advantage?

     

Selected Answer:

   To increase wealth, government policies should promote exports and discourage imports.

Correct Answer:

   To increase wealth, government policies should promote exports and discourage imports.

     

    Question

3 0 out of 1 points   0 out of 1 points   0 out of 1 points   0 out of 1 points  

David Ricardo's theory of comparative advantage states that      

Selected Answer:

   when a nation can produce a larger amount of a good or service for the same amount of inputs as can another country or when it can produce the same amount of a good or service using fewer inputs than could another country, it would gain from the trade.

Correct Answer:

   even though one nation holds an absolute advantage over another in the production of each of two different goods, international trade could still create benefit for each country.

     

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

India due its abundance of labor concentrates on producing labor-intensive goods and Germany, with relatively more capital than labor, specializes in capital-intensive products. They then trade, and each obtains at a lower price those goods that require large amounts of the production factor that is relatively scarce in their own country, and both benefit from the transaction. This example reflects which of the following theories?

     

Selected Answer:    Heckscher-Ohlin's factor endowment theory Correct Answer:    Heckscher-Ohlin's factor endowment theory

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Page 5: INTMGT Midterm Quiz W09 BS

Hewlett-Packard provides its American consumers with higher quality and lower priced products because it spreads its very high fixed costs over sales within foreign as well as home markets. Hewlett-Packard in this example is making use of

     

Selected Answer:    economies of scale in international trade. Correct Answer:    economies of scale in international trade.

     

    Question

6 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Michael Porter in his Diamond Model of national advantage has cited variables that have an impact on the ability of the local firms in a country to utilize the country's resources, to gain a competitive advantage. Which of the following is not an example of the variables?

     

Selected Answer:

   The government of Argentina deciding to set a fixed exchange rate of 1 peso to 1 U.S. dollar to fight rampant inflation.

Correct Answer:

   The government of Argentina deciding to set a fixed exchange rate of 1 peso to 1 U.S. dollar to fight rampant inflation.

     

    Question

7 0 out of 1 points   0 out of 1 points   0 out of 1 points   0 out of 1 points  

Identify the statement that is incorrect in relation to the United States policy of imposing sanctions to punish offending nations.

     

Selected Answer:

   Limitations on exporting Iraqi oil resulted in substantial economic gains by Libya and Iran, nations whose behavior had subjected them to U.S. trade sanctions.

Correct Answer:

   During the time that the United States was imposing sanctions on Iraq that prohibited American firms from doing business, companies from France, Russia, and other nations were also repudiating their business contracts there.

     

    Question

8 0 out of 1 points   0 out of 1 points   0 out of 1 points   0 out of 1 points  

An argument made by protectionists justifies protection from cheap imports by claiming that other countries, with lower hourly labor rates than those in their nation, can flood their nation with low-priced goods and take away domestic jobs. This is usually based on relative hourly wages and is misleading because

     

Selected Answer:

   the labor cost component of the goods being produced in developed countries is higher because the wages there are higher.

Correct Answer:

   where wage rates are low, the capital costs are usually low too, and thus production costs are low.

     

    Question

9 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The European Union closed its markets to hormone-treated beef from the United States in1988. American beef producers complained that no scientific evidence supported the claim, and the United States promptly imposed import duties on about $100 million worth of EU products. This example is an instance of

     

Selected Answer:    retaliation. Correct Answer:    retaliation.

     

    Question

10 0 out of 1 points   0 out of 1 points   0 out of 1 points   0 out of 1 points  

The relocation, by an American multinational company, of a manufacturing plant in France to a developing country following negotiations that lead employees in the developing country to accept inferior terms and conditions of employment would be an example of

     

Page 6: INTMGT Midterm Quiz W09 BS

Selected Answer:    cultural dumping. Correct Answer:    social dumping.

     

  FOUR   Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following is not a member of the United Nations, although it may maintain missions or offices at UN headquarters and participate in some UN activities?

     

Selected Answer:    Taiwan Correct Answer:    Taiwan

     

    Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Identify the statement which is not true of the UN General Assembly.      

Selected Answer:

   Its decisions have a legally binding force for governments and citizens in the member-nations, and they carry the heavy weight of world opinion.

Correct Answer:

   Its decisions have a legally binding force for governments and citizens in the member-nations, and they carry the heavy weight of world opinion.

     

    Question

3 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following examples essentially reflects the task of The United Nations Security Council?

     

Selected Answer:

   United Nations Mission in Liberia (UNMIL) helping the new Government in establishing its authority throughout the country, particularly in the diamond and timber-producing regions, and border areas.

Correct Answer:

   United Nations Mission in Liberia (UNMIL) helping the new Government in establishing its authority throughout the country, particularly in the diamond and timber-producing regions, and border areas.

     

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The North Atlantic Treaty Organization, governed by the North Atlantic Treaty of 1949, was formed

     

Selected Answer:    as a security alliance of 26 North American and European nations.

Correct Answer:    as a security alliance of 26 North American and European nations.

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following statements, regarding the General Agreement on Tariffs and Trade, is incorrect?

     

Selected Answer:

   The Annecy round broke new GATT ground by writing international rules for trade in services and agriculture and for the protection of intellectual properties.

Correct    The Annecy round broke new GATT ground by writing international

     

Page 7: INTMGT Midterm Quiz W09 BS

Answer: rules for trade in services and agriculture and for the protection of intellectual properties.

    Question

6 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Japan may import a product from the United States. Once the product has entered the market, the Japanese government, in spite of pressures from local lobbyists to impose higher taxes on the imported product as compared to its local counterpart, does not apply this. The WTO principle, of the trading system, that Japan is adhering to is

     

Selected Answer:    trade will be without discrimination Correct Answer:    trade will be without discrimination

     

    Question

7 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

A WTO member country agrees to open its markets for goods and services, and promises ceilings on customs tariff rates. This example best reflects the WTO principle of

     

Selected Answer:    trade should be predictable. Correct Answer:    trade should be predictable.

     

    Question

8 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Identify the incorrect statement on the Organization for Economic Cooperation and Development.

     

Selected Answer:

   It developed from an earlier collaboration, the Business and Industry Advisory Committee (BIAC).

Correct Answer:

   It developed from an earlier collaboration, the Business and Industry Advisory Committee (BIAC).

     

    Question

9 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

OPEC's control of the market has been diluted      

Selected Answer:

   by the huge oil and gas projects being developed in Kazakhstan, Azerbaijan, and Russia.

Correct Answer:

   by the huge oil and gas projects being developed in Kazakhstan, Azerbaijan, and Russia.

     

    Question

10 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Oil prices in April 2006 hit $75.35. Contributing to these high prices were all of the following reasons, except

     

Selected Answer:    recession and unemployment in oil-importing countries. Correct Answer:    recession and unemployment in oil-importing countries.

     

  FIVE   Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The automatic adjustment where money supply would rise or fall in direct relation to the gold flows is known as the

     

Selected Answer:    price-specie-flow mechanism.      

Page 8: INTMGT Midterm Quiz W09 BS

Correct Answer:    price-specie-flow mechanism.     Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Under the modern monetary arrangements      

Selected Answer:    no special role is assigned to gold. Correct Answer:    no special role is assigned to gold.

     

    Question

3 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following was not a consensus among the Bretton Woods representatives?      

Selected Answer:

   Trade imbalances would be automatically corrected by the price-specie-flow mechanism.

Correct Answer:

   Trade imbalances would be automatically corrected by the price-specie-flow mechanism.

     

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which of the following was not established in 1944, by representatives of the 44 allied nations who met at the Mount Washington Hotel in Bretton Woods?

     

Selected Answer:    Bank for International Settlements Correct Answer:    Bank for International Settlements

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

All of the following are some of the successes of the IMF, except      

Selected Answer:

   it has developed policies and actions, the framework for trade, by dealing directly with businesses and people worldwide.

Correct Answer:

   it has developed policies and actions, the framework for trade, by dealing directly with businesses and people worldwide.

     

    Question

6 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

From 1958 through 1971, the United States ran up a cumulative deficit of $56 billion. This deficit

     

Selected Answer:

   inspired a lack of confidence in the reserve currency and led to a financial crisis.

Correct Answer:

   inspired a lack of confidence in the reserve currency and led to a financial crisis.

     

    Question

7 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

A Canadian company that is a subcontractor to a U.S. company enters into a contract with the Department of Transportation of Virginia for a highway project. The Canadian company claims that the United States government is breaching certain funding obligations. The World Bank group that the Canadian company is most likely to approach for a solution is the

     

Selected Answer:    ICSID.      

Page 9: INTMGT Midterm Quiz W09 BS

Correct Answer:    ICSID.     Question

8 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Identify the statement that is not true in relation to the World Bank.      

Selected Answer:

   The Multilateral Investment Guarantee Agency, of the World Bank, helps to resolve disputes between governments and foreign investors.

Correct Answer:

   The Multilateral Investment Guarantee Agency, of the World Bank, helps to resolve disputes between governments and foreign investors.

     

    Question

9 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

One of the main functions of the BIS today is to serve      

Selected Answer:    as a forum for international monetary cooperation. Correct Answer:    as a forum for international monetary cooperation.

     

    Question

10 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The _____ is an international organization of central banks that exists to "foster cooperation among central banks and other agencies in pursuit of monetary and financial stability."

     

Selected Answer:    Bank for International Settlements Correct Answer:    Bank for International Settlements

     

  SIX   Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Characterizing a group of people by individual worldviews, social rules, and interpersonal dynamics is known as

     

Selected Answer:    culture. Correct Answer:    culture.

     

    Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Belief in the superiority of one's own ethnic group is better known as      

Selected Answer:    ethnocentricity. Correct Answer:    ethnocentricity.

     

    Question

3 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

In Great Britain, an American general manager complained, people were promoted because of the school they had attended and their family background but not for their accomplishments. This is an example of

     

Selected Answer:    national culture as a key determinant for the evaluation of managers.

Correct Answer:    national culture as a key determinant for the evaluation of managers.

     

Page 10: INTMGT Midterm Quiz W09 BS

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The promise of overtime can fail to keep workers on the job. In fact, raising employees' salaries can actually result in their working less. This effect is also know as

     

Selected Answer:    "backward-bending' labor supply curve. Correct Answer:    "backward-bending' labor supply curve.

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

In Asian countries where Confucianism is strong, there is a drive toward hard work and thrift; similar to the Protestant work ethic. In the recent times, a growing feeling of prosperity and a shift to a five-day workweek has resulted in all of the following except

     

Selected Answer:    reliability and an increased motivation at work. Correct Answer:    reliability and an increased motivation at work.

     

    Question

6 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Knowledge of the caste-system in India, and the feudal Tokugawa regime in Japan is required for the manager because

     

Selected Answer:

   it contributes to a better understanding of why people's attitudes vary so greatly from country to country.

Correct Answer:

   it contributes to a better understanding of why people's attitudes vary so greatly from country to country.

     

    Question

7 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Animism is      

Selected Answer:    the belief that everything in nature has its own spirit or divinity.

Correct Answer:    the belief that everything in nature has its own spirit or divinity.

     

    Question

8 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The concept of using external technology to complement, rather than substitute for internal technology is known as

     

Selected Answer:    strategic technology leveraging. Correct Answer:    strategic technology leveraging.

     

    Question

9 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The Korean firm Samsung was once known for cheap and unappealing electronics. But its skills in the design of sleek, attractive products have made it a leader in cell phones, and it tops global markets for color televisions, flash memory, and LCD panels. This an example of

     

Selected Answer:

   technology enabling a firm to be competitive or even attain leadership in world markets.

Correct Answer:

   technology enabling a firm to be competitive or even attain leadership in world markets.

     

Page 11: INTMGT Midterm Quiz W09 BS

    Question

10 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Identify the term used to denote the side-by-side presence of technologically advanced and technologically primitive production systems.

     

Selected Answer:    Technological dualism Correct Answer:    Technological dualism

     

  SEVEN    Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

According to the text, the principal reason that Japan's sales to ASEAN members are much greater than U.S. sales to ASEAN is because:

     

Selected Answer:    of Japan's geographic proximity to ASEAN members. Correct Answer:    of Japan's geographic proximity to ASEAN members.

     

    Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

If you place a population map over a topographic map of all except tropical areas, the blank areas on the population map would generally coincide with

     

Selected Answer:    the areas of higher elevation. Correct Answer:    the areas of higher elevation.

     

    Question

3 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Bodies of water:      

Selected Answer:    attract settlers. Correct Answer:    attract settlers.

     

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The century-long struggle between Chile and Bolivia is:      

Selected Answer:    over Bolivia's desire for an outlet to the sea. Correct Answer:    over Bolivia's desire for an outlet to the sea.

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Patagonia, Inc. is an example of sustainable business practice because:      

Selected Answer:    it manufactures outerwear and gear for hiking and climbing. Correct Answer:    it manufactures outerwear and gear for hiking and climbing.

     

    Question

6 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Factor conditions are a combination of natural resources that are uncontrollable and resources a country can mold, such as educational level and infrastructure.   

     

Page 12: INTMGT Midterm Quiz W09 BS

Selected Answer: True Correct Answer: True

     

    Question

7 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

All European nations, except Switzerland, which has an excellent rail system, use the Rhine waterway to transport goods.   

     

Selected Answer: False Correct Answer: False

     

    Question

8 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

As techniques become available to control pests and parasites the tropics will have advantages over temperate zones in agriculture.   

     

Selected Answer: True Correct Answer: True

     

    Question

9 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

The differences in climatic conditions among a firm's markets have limited impact on its product mix.   

     

Selected Answer: False Correct Answer: False

     

    Question

10 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

 Environmental sustainability is a political state in which the demands placed on the environment can be met without reducing the environment's ability to provide for future generations.   

     

Selected Answer: True Correct Answer: True

     

  EIGHT   Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

According to the book, economic analyses become more complex when a firm enters overseas markets because

     

Selected Answer:

   management must operate in two new environments, foreign and international.

Correct Answer:

   management must operate in two new environments, foreign and international.

     

    Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Page 13: INTMGT Midterm Quiz W09 BS

From comparisons of income distribution studies over time, it appears that in early stages of development:

     

Selected Answer:

   the middle quintile grows at the expense of the upper and lower quintiles.

Correct Answer:    the middle quintile grows at the expense of the upper and lower quintiles.

     

    Question

3 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Because _____ consumer expenditures eliminate differences in relative prices, marketers use these data to analyze the change in composition consumption with the level of development.

     

Selected Answer:    PPP-based Correct Answer:    PPP-based

     

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

According to the text, population size      

Selected Answer:

   provides a basis for estimating the consumption of low-priced, mass-consumption products, such as cigarettes and soap.

Correct Answer:

   provides a basis for estimating the consumption of low-priced, mass-consumption products, such as cigarettes and soap.

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Generally, because of higher birth rates,      

Selected Answer:

   developing nations have more youthful populations than developed nations.

Correct Answer:    developing nations have more youthful populations than developed nations.

     

  NINE    Question 1 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

When communists take over a previously noncommunist country:      

Selected Answer:    the government will take over private business. Correct Answer:    the government will take over private business.

     

    Question

2 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Which among the following is not a characteristic of governments of developing countries?      

Selected Answer:    They would ideally not seek capital investment. Correct Answer:    They would ideally not seek capital investment.

     

    Question

3 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Page 14: INTMGT Midterm Quiz W09 BS

Privatization includes all of the following except:      

Selected Answer:    government agencies completely funding private owned companies.

Correct Answer:    government agencies completely funding private owned companies.

     

    Question

4 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Antiterrorist firms have been established to deal with terrorists who have kidnapped business executives. They recommend that the:

     

Selected Answer:    negotiating be left to them. Correct Answer:    negotiating be left to them.

     

    Question

5 1 out of 1 points   1 out of 1 points   1 out of 1 points   1 out of 1 points  

Country risk assessment      

Selected Answer:

   helps companies decide where to conduct business and for which risks to insure.

Correct Answer:

   helps companies decide where to conduct business and for which risks to insure.

     

 

a)   In terms of political risk (for example, expropriation), which of the following businesses would you consider the most and least vulnerable? Explain.

Political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or “any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives.” Political risk faced by firms can be defined as “the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labor, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection).”Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk. [1]

Expropriation is one of the political risks involved with foreign direct investment (FDI). It is characterized by confiscation of the foreign asset. The most vulnerable business would be banks, mines, oil fields, and oil refineries. Most of these companies are high profile and are well established. They help to control major assets in a country and a more susceptible to government interference as well as terrorist threats and plots. The least vulnerable would be businesses are low profile.

Changing a company’s profile in a foreign country can be difficult. The company should embrace its location’s surrounding culture. Also, security measures need to be in place to deter or combat any terroristic acts. A secure company is less vulnerable because it helps to filter out crime against it. It is nearly unthinkable to rob a bank these because of complex security systems. [1] http://en.wikipedia.org/wiki/Political_risk