Module 5 Midterm Exam
1. Question
:
Olive oil made in Italy and sold in the United States is an
example of which of the following?
Global brand
U.S. export
U.S. import
Standardized product
Question 2. Question
:
Levi’s Jeans made in the United States and sold in Russia
are an example of which of the following?
U.S. export
Outsourced product
Globally licensed product
U.S. import
Question 3. Question
:
Denationalization refers to ________.
a loss of sovereignty among nations
national boundaries becoming less relevant
cooperation between nations to reduce trade
barriers
attempts by international organizations to
resolve trade conflicts
Question 4. Question
:
Which of the following is an example of the globalization of
production?
Canadian consumers buy foods imported from
Australia
A Chinese company sells textiles to European
car makers
A U.S. company builds a manufacturing facility
in India
A Swiss watch manufacturer builds a
manufacturing facility in Switzerland
Question 5. Question
:
Two major forces that underlie the expansion of
globalization are ________ and ________.
deregulation of tourism; the rise of
nationalism
economic interdependence; the decline of
international organizations
trade barriers; political unrest
falling barriers to trade and investment;
technological innovation
Question 6. Question
:
A limit placed on the quantity of an imported product is
known as which of the following?
Import sanction
Tariff
Embargo
Nontariff barrier
Question 7. Question
:
All of the following represent examples of regional trade
agreements except ________.
WTO
EU
APEC
NAFTA
Question 8. Question
:
Last year, Sabrina Shin started a business selling all types
of spices and hot sauces. The business is small but this entrepreneur’s dreams
are big. Given limited demand and sales fluctuations in the domestic market,
Sabrina has been considering going international; however, she has little
information, many doubts, and no guidance. Which of the following can help
Sabrina reach consumers in different corners of the world quickly and
inexpensively?
Intranet
Extranet
GPS
Internet
Question 9. Question
:
For 75 years, from the start of the First World War to the
end of the Cold War, there was a geographic divide between ________, and an
ideological divide between ________.
North and South; protectionism and socialism
North and South; regionalism and globalization
East and West; regionalism and globalization
East and West; communism and capitalism
Question 10. Question
:
Which of the following terms is used to refer to widespread
job turnover throughout an economy?
Redeployment
Churning
Wage differentials
Attrition spectrum
Question 11. Question
:
Which of the following makes the world market more
accessible for companies that sell traditional products by lessening the cost
and difficulties associated with global communication?
Technology
Franchising opportunities
Licensing
Financial capital
Question 12. Question
:
Which of the following terms is used to refer to the
positive or negative evaluations, feelings, and tendencies that individuals
harbor toward objects or concepts?
Customs
Attitudes
Manners
Values
Question 13. Question
:
________ refers to the replacement of one culture’s
traditions, folk heroes, and artifacts with substitutes from another.
Cultural imperialism
Acculturation
Cultural attrition
Cultural immersion
Question 14. Question
:
Which of the following terms is used to refer to behavior
that is shared by a heterogeneous group or by several groups?
Manners
Lingua franca
Popular custom
Folk custom
Question 15. Question
:
Which of the following terms is used to refer to the process
of ranking people into social layers or classes?
Social status
Social stratification
Social group
Social mobility
Question 16. Question
:
A Chinese business establishes an office in Hong Kong. It
conducts business locally with vendors and customers who live in Hong Kong.
Which of the following would be most effective as the company’s main business
dialect?
Taiwanese
Guanxi
Mandarin
Cantonese
Question 17. Question
:
All of the following are dimensions developed by Hofstede
for examining cultures except ________.
individualism versus collectivism
power distance
uncertainty avoidance
caste system versus class system
Question 18. Question
:
Sid Maxwell is head of legal affairs for Hudson Inc., a
producer of animal figurines that include an embedded software program that
makes animal sounds. Hudson is expanding its market to include parts of Asia
and Maxwell is concerned about reports of software piracy in the region. Which
of the following could Hudson obtain to protect its rights to the proprietary
software embedded in the figurines?
Trademark
Patent
Copyright
Users license
Question 19. Question
:
Global Trading, LLC, is a distributor of computer software
and hardware, steel and copper scrap, and telephone and electric utility
equipment. Involved in three very different types of industries, the company
faces many types of risks in its global business. Global Trading just learned
that the government in one country in which it does business has taken over the
entire electric utility industry. The government’s actions are an example of
________.
confiscation
globalization
expropriation
nationalization
Question 20. Question
:
Susan Smith works in marketing at Reconditioned
Refrigerators (R&R), a global manufacturing company. Susan knows that to
advance into upper management she must gain broader experience and was recently
told that she can choose from several locations in which R&R is active for
her first international assignment. Susan knows little about other nations,
their cultures, and their political systems, so she has embarked on an
ambitious research project to make an informed decision. Susan’s personal
political beliefs are congruent with those of a democracy. Susan’s beliefs are
most likely reflected in which of the following political ideologies?
Anarchism
Pluralism
Totalitarianism
Socialism
Points Received: 0 of 1
Question 21. Question
:
An international human rights organization recommends that
its member countries review their human rights policies on a periodic basis to
ensure that their governments are upholding ethical standards for the treatment
of prisoners. Which of the following represents the most effective reasoning in
support of the organization’s recommendation?
Ethical policies and practices tend to remain
consistent within the same country over time.
Nations should only enforce ethical standards
that have been approved by other nations.
Nations should enforce those ethical standards
that have been adopted in other nations.
Ethical standards change over time, so
national policies should be updated as necessary.
Question 22. Question
:
A bootleg Prada backpack that costs $500 in New York but
sells for $100 in Rome is an example of which of the following?
Patent infringement
Pirated product
Copyright violation
Standardized product
Question 23. Question
:
Which of the following legal systems is based on a detailed
set of written rules and statutes that constitute a legal code?
International law
Civil law
Tribal law
Common law
Question 24. Question
:
Which of the following is the broadest measure of economic
development?
Gross domestic product (GDP)
Purchasing power parity (PPP)
Gross national product (GNP)
Human development index (HDI)
Question 25. Question
:
The pattern of imports and exports that occurs in the
absence of trade barriers is called ________.
an embargo
protectionism
infant industry
free trade
Question 26. Question
:
Which of the following is an example of an economic motive
for nations’ attempts to influence international trade?
Pursue strategic trade policy
Protect jobs
Respond to “unfair” trade
Preserve national security
Question 27. Question
:
Which of the following created renewed determination to
further reduce barriers to trade?
Consumer demand
Advancements in telecommunications
Portfolio investment trends
Uruguay Round of trade negotiations
Question 28. Question
:
Economic integration whereby countries remove all barriers
to trade and the movement of labor and capital between themselves and erect a
common trade policy against nonmembers is called a(n) ________.
economic union
customs union
common market
political union
Question 29. Question
:
The international bond market consists of all bonds sold by
issuing companies, governments, or other organizations ________.
within their own countries
to London banks
outside their own countries
to developing nations only
Question 30. Question
:
Sandy Smith, vice president of marketing for a large
consumer products company, will soon travel to Colombia to spearhead an effort
to increase her company’s presence there. Sandy is concerned about her safety
and has contacted a risk-assessment service for advice. Which of the following
is most likely to assist Sandy in keeping a low profile?
Dressing like the locals whenever possible and
avoiding expensive jewelry
Participating in public demonstrations
attended by large local crowds
Streamlining financial transactions by paying
for expenses with large denominations
Maintaining the ability to cover unexpected
expenses by carrying a large amount of cash
Question 31. Question
:
Explain the concept of culture. Why is it important to avoid
ethnocentricity and gain cultural literacy?
Culture
is basically a certain kind of a lifestyle that is lived by individuals. In
simpler words, it prescribes a certain way in which lives can be lived and it
takes into account several aspects including knowledge, belief, art, morals,
law, custom, etc. These aspects are integral parts of our lives and we cannot
live life without these aspects. In society, the kind of life that is lived in
general is given a name and that is called culture. It is important avoid
ethnocentricity because ethnocentricity means that a certain kind of culture is
superior to others, when there is no basis or rationale for this conclusion. It
is an egoistic belief that must be avoided in order to be more down to earth
and simple minded as a person and a culture cannot grow when it considers that
all other cultures are inferior to it. The individuals practice the culture
will also start to practice these same beliefs that is not expected out of them
to live and therefore it is important for individuals to avoid ethnocentricity
and gain cultural literacy instead through which they would be able learn more
about their own culture and become more knowledgeable as a person.
Response
is generally accurate and reflects a general understanding of the concepts
addressed in the question. No reference is provided.
Question 32. Question
:
Explain the concept of balance of payments and describe its
two major components.
Balance
of payments is basically a statement that is a summary of the transactions
occurring in an economy with the rest of the world within a specific time
frame. It basically includes all transactions between the citizens of a certain
country and goods and services that they purchase from abroad. Balance of
payments are critical when a country’s government is engaged in the formulation
of national and international policies that would drive growth for the country
in the coming years and can be considered to be one of the more important
metrics while looking at the growth and development of a certain country. There
are two main aspects to this concept and this would include the capital account
and the current account. There is a vast difference between capital account and
current account – capital account basically takes into account the transactions
pertaining to financial instruments. Individuals trading in the foreign
currency market and their related transactions would be considered to be a part
of the capital account of the country. Whereas when the individuals are
engaging in transactions of goods and services, investment income and current
money transfers, these would be considered under current account. Thus, we
understand the core differences between the current account and the capital
account.
Response
is generally accurate and identifies the key components related to the concept
of balance of payments. Remember that balance of payments also involves
tracking receipts. See chapter 7 of the textbook. No source is cited.
