International Business Quizzes

In 2020, which event led to a decline in world trade and significantly impacted global supply chain?

the COVID-19 global pandemic

Globalization resulted in a decrease in non-U.S. firms’ investment across national borders

False

Which type of trade policies depressed global demand and helped lead to the Great Depression in the 1930s?

countries progressively raising trade barriers against each other

Supporters of globalization believe that tougher environmental regulations and stricter labor standards are a natural aspect of economic progress

True

Since the 1960s, a notable trend in the demographics of the multinational enterprise has been the rise of U.S. multinationals

False

A civil law system tends to be more adversarial than a common law system

False

Which of these is a characteristic of a pure command economy?

A. The gov’t plans the goods and services that a country produces

B. There is a free and fair competition between private producers

C. The goods and services that a country produces are planned by consumers

D. Prices are determined by market forces

A. The gov’t plans the goods and services that a country produces

Julius thinks that his individual freedoms should be guaranteed, and that people should be able to pursue their own economic self-interest. Julius is a proponent of

Individualism

In the early 20th century, the socialist ideology split two broad camps: communists and social democrats

True

Contracts under a common law framework tend to be

very detailed with contingencies spelled out

It can be more costly to do business in a country where there are laws and regulations regarding product safety

True

Amazon was the earliest major online bookstore, which allowed it to generate brand awareness and have a significant presence in the market. Amazon had a head start on later entrants to the online bookstore market. In this example, Amazon has ____________ advantages

first-mover

Innovation and entrepreneurship help increase economic activity by

creating new products and markets

Deregulation involves the establishment and operation of private enterprises

False

Over the last 30 years, while democracy has spread, authoritarianism has all but disappeared

False

A typical American value is an expectation that people have a right to live the way they want. Values are defined as

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 the

cooperation between a company and its suppliers on issues such s design, quality control, and inventory reduction

the value systems and norms of a country significantly influence the costs of doing business in that country

True

What is the most widely practiced religion in the world?

Christianity

Which aspect of Protestantism paved the way for the subsequent emphasis on individual economic and political freedoms?

the emphasis on individual religious freedom

Modesco Corporation intends to build a new factory in a foreign country. However, the company is having difficulty getting the foreign government to approve the necessary paperwork so construction can begin. To move the process along, Modesco makes legal payments to the government officials. These payments are typically referred to as:

facilitating payments

The prestige automotive corporation moved its automobile production plant to a country in southeast asia because it could freely dump waste products into the nearby ocean. This corporate action exemplifies the

tragedy of the commons

General Motors’ stand against apartheid in South Africa based upon what came to be known as

The Sullivan Principles

Martha Nussbaum is associated with which of the following philosophical approached to business ethics?

A. moral relativism

B. rights theory

C. justice theory

D. utilitarianism

C. Justice Theory

The Foreign Corrupt Practices Act was amended in order to

allow for “facilitating payments”

New trade theory stresses the importance of factor endowments rather than economies of scale or first-mover advantages in international trade

False

The main principle of which theory argues that it is in a country’s best interests to maintain a trade surplus?

mercantilism

Paul Samuelson’s critique looks at what happens when a rich country enters into a free trade agreement with a poor country

True

Raymond Vernon observed in the mid-1960s that the wealth and size of the U.S. market gave U.S. firms a strong incentive to develop new consumer products. What theory did Vernon propose based on his observation?

product life cycle

Free trade refers to a situation in which

A gov’t does not try to influence what its citizens can buy from global markets