D 270 Final

1.If the United States government prohibits all trade on a whole category of products to Peru, that would be called a ______

a. Quota

b. Import certification hold

c. VER

d. Sanction

e. Embargo

E

2.The coronavirus caused a dramatic economic slow-down around the world. History suggests that when an economic crisis gets worse, it is very likely that more citizens question the ____.

a. Fall of communism

b. Correlation between economic freedom and prosperity

c. Practicality of mixed-market economies

d. Legitimacy of capitalism

D

3.Your friend asks you to explain what problem might happen if Mexico decides to use trade protectionism to help make Mexico's industries more competitive in international markets. What problem would Mexico have?

a. Assistance should be given only if entry barriers to new firms are very low

b. A short product life-cycle makes the industry quickly noncompetitive

c. It is difficult to identify industries that have a high probability of reaching competitiveness

d. The protecting countries companies always become domestic competitors

C

4.All of the following statements are true about the G20 countries EXCEPT:???

a. More than half of the world's population live in G20 countries

b. Less than half of the world's poor people live in G20 countries

c. They have over 75% of the worlds global trade

d. They have pro business policies

e. All the statements are true

B

5.Which of the following is not a characteristic of capitalism?

a. Right to profit from individual effort

b. Private ownership of assets

c. Private control of investment

d. State control of factors of production

D

6. Kyle, a Vice President for Ford Motor Company, a U.S. corporation, read a news story today that said the U.S. government is considering ending the chicken tax. Why would Kyle be concerned about this news?

a. Removing the chicken tax will allow pick up trucks from foreign countries to be sold at a lower price in the USA

A

7...(top of question not listed)........marketplace. Julie is asked by her boss to make a list of the

economic characteristics of an 'emerging country' . Which of the following characteristics should Julie have on her list?

I. Accelerating growth

II. Increasing FID

III. Increasing Imports

IV. Increasing Exports

V. Decreasing Exports

VI. Expanding consumption

VII. Decreasing Consumption

VIII. Growing Middle class

IX. Decreasing middle class

I, II, III, IV, VI, VIII

8.It is important to analyze the purchasing power of parity of a country because:

a. People in different countries decide to buy different items

b. To understand what people buy in different countries

c. To understand the effect that imports will have on the GDP

d. There are currency effects when buying the same items in different countries

e. Big macs are more expensive in some countries

D

9. A luxury bag company from France decided to lower its export price to Australia to help compensate for import tariffs being placed on their bag, this is an example of:

a. Economic quota action theory

b. Dumping

c. Essential-industry argument

d. Optimum-Tariff theory

e. Anti-dumping practice

D

10.Command economics can:

a. Never outperform free markets

b. Outperform free markets for long periods of time

c. Outperform free markets for short periods of time

d. Never underperform free markets

e. None of the above

C

In ____, the government controls and manages the economic environment, not in line with a grand ideological philosophy, but with the goal of improving individual prosperity in order to legitimize and maintain the government's authority.

a. State Capitalism

b. Capitalism

c. Mixed economies

d. Command Economies

e. Socialism

A

12. You are a manager at BMW in Germany and your boss explains that BMW is thinking about putting a manufacturing plant in India. Your boss tells you that she has heard that India could have 15% of the world's global wealth by 2050 and is one of the emerging economies. She asks you what the reasons are that India's economy is growing. Which of the following answers would not be correct?

a. India has a large percentage of their population that is under the age of 35

b. India has stopped using 'catch-up' growth practices used by other developing economies

c. Poor economies like India can grow much faster than wealthy economies

d. Many corporations are outsourcing work to India

e. All the other answers are correct

B

13. The President of India is considering limiting exports to unfriendly countries. An argument against the President taking this action would be that ___.

a. The costs of the sanctions are placed on innocent people rather than on the leaders of the country

b. Markets cannot be regained when the countries become friendly again

c. One country's essential product is not always essential to another

d. The exporting nation's cultural identity is harmed

A

14. Assume France places a quota on a product that comes from a specific foreign country. What would the French government's most likely concern be about how the foreign country would respond?

a. The foreign country would restrict their own imports

b. The foreign producers would seek other markets

c. The foreign country would restrict their exports of that product

d. The foreign country would not choose to retaliate in any way

e. The foreign country would increase production of the specific product and dump it into France

f. The foreign producers would raise the prices of their exports

A

15. In class we discussed the Catfish case. In that case the Catfish farmers in the USA were able to convince the U.S Congress to pass a law that would _____.

a. Require all grocery stores and restaurants to use the exact name for the fish being sent into the U.S. from Vietnam on their signs and menus

b. Have Congress file a dispute with the WTO on behalf of the U.S. catfish farmers, charging Vietnam with dumping

c. Subsidize catfish prices from U.S. farmers to keep them competitive with foreign imported catfish

d. Place high tariffs on imported catfish coming from Vietnam to keep U.S. catfish farmers competitive on price

e. Require inspection of all catfish sold in the U.S.

f. Provide catfish farmers with a loan to allow them to sell catfish at a more competitive price so they could compete fairly with Vietnam's catfish

E

16. Due to the dramatic effects the coronavirus crisis has had on their countries' economies, Norway and Saudi Arabia make a trade. In the agreement, Norway will limit the amount of salmon fish that it exports to the United States to 5,000 tons per year and Saudi Arabia will lower the price of the oil that it is selling to Norway by 25%. This is an example of:

A. A retaliation action

B. A tariff

C. A joint tariff action

D. A sanction

E. VER

F. A quota

E

17. The Economic Freedom index measures the amount of economic freedom a person has to use his or her ___ to pursue their ambitions.

A. Intelligence, values and beliefs

B. Initiative, effort and competence

C. Intelligence, effort and passion

D. Initiative, money and values

B

18. You are a manager at Nike Corporation. Your boss asks you to make a list of things that are true about income inequality in a country. Which statements would be on your list?

I. The richest 1% of the world's population claims as much income as the bottom 57%

II. GNI is the most effective tool for estimating the relative wealth of a nation's citizens

III. Among industrialized nations, the United States has the largest inequality gap between rich and poor

IV. Income inequality between metropolitan and rural areas threatens a country's social stability

A. I, III and IV, but not II

B. I and II, but not III or IV

C. III and IV, but not I and II

D. I, II, III, and IV

E. II, III and IV, but not I

A

19. A problem that happens when inflation occurs in a country is that it usually leads to:

A. Reducing the citizens' confidence in a country's currency

B. Reducing the consumers' demand for foreign goods, which leads to lower prices and then lower employment

C. An increase the real income of the citizens, thereby increasing their spending amounts

D. Providing the central banking officials extensive flexibility to manage the monetary policy

A

20. In a country with a mixed economic system, the government believes that although the economic system should try to have the efficiencies of free markets, the economy must also support policies to:

A. inequitably distribute wealth

B. Destabilize poverty rates

C. None of the other answers are correct

D. Achieve low unemployment

E. Restrict economic growth

D

21. In a country with a market economy the way that resources are allocated are specifically influenced by:

a. Consumers to vote by their personal decision or to buy it or not by products

b. consumer group alliances that negotiate with firms to improve product quality

c. stock markets that direct resources to the most successful business

d. industry groups that are working to improve the efficiency of production and service

e. government administrators who monitor the equilibrium of supply and demand

A

22. foreign direct investment may cause which of these to occur

I. loss of jobs in home countries

II. creation of new jobs in host countries

III. save jobs in the host countries in the case of acquisition

IV. bid for labor and resources in host countries

V. creation of new jobs in home countries related to International Management

a. I,II

b. I,II,V

c. I,II,III,V

d. I,II,III,IV,V

e. I,II,V

f. I,II,IV

D

23. You are a member of the Consulting team at McKinsey & Company that is working on a project for Facebook you have then asked to determine whether the standard of living is increasing or decreasing in Poland. Which of the following would be the best economic measurement for you to use to answer Facebook's question

a. Poland per capita GNI

b. Poland balance of payments

c. Degree of human development in Poland

d. Poland's GNI growth rate

e. purchasing power parity of Poland

D

24. in class you watched a video that explains why some countries in the world are poor one of the reasons was religious beliefs another of the key reasons was

a. Clan based thinking

b. dictators who have little concern for the citizens of their country

c. weak military

d. governments of these poor countries do not focus on industrialization

A

25. You are working at Nike and are asked to explain why ethical behavior is important from the list below what would you say is the most important reason for conducting ethical Behavior

a. discouraging tariffs or quotas

b. developing competitive advantages

c. developing creative advertisements

d. creating positive balance of payments affect

e. avoiding host country sanctions

B

26. What is the primary reason that Anglo American PLC developed its ART program?

a. To maintain a healthy workforce

A

27. An international business manager practicing relativism would most likely

a. none of the answers are correct

b. apply universal laws to each country despite local customs and traditions

c. refuse to change company policies and procedures to comply with local norms

d. adapt to local conditions instead of implementing Home Country practices

e. enforce Home Country laws on host country employees and suppliers

D

28. from the list below, select the statement that is usually true about the postconventional level of moral development

a. none of the other answers are correct

b. individuals behave morally because they believe such actions are right c. individuals behave morally because they fear negative repercussions d. individuals learn what is a moral but not why such behavior is moral

e. individuals learn how to conform to society's values through observation

B

29. in one of the cases in the textbook General Electric launched its ecomagination initiative the program had many commitments and goals General Electric said this initiative was important to do because it was good for the planet and was a response to___

a. the need to reduce the cost of producing their products

b. disputes from the WTO

c. customer demands

d. the trade war with Brazil

e. none of the other answers are correct

C

30. Volkswagen Corporation, a German company, had a system on their diesel cars that was sold in the United States to avoid emission standards, which made their cars perform better than the competition. assuming that the Senior Management agreed to do this, it would be a ___ action.

a. Exploitive

b. Responsive

c. Retaliatory

d. Transactional

e. transformative

A

31. You are a manager at Trek Bicycle Company in (a USA company). The company has started doing business in a foreign country. Your boss asked what the trek company can do that would not violate (not be against the law) the United States Foreign Corrupt Practices Act? Your answer is:

a. A payment to a foreign government official to influence a customs official

b. A payment to a customs official to clear legitimate merchandise

c. A bribe paid by a us firm operating in a foreign country that permits bribes to be paid

d. A bribe paid by Foreign firms operating in US territories

e. A payment by us firm operating in foreign country to an executive of another foreign company to influence that company into buying the products of the US company

B

32. Which of the following is NOT a key stakeholder group that a company must work to satisfy in order to survive in a global environment

a. Employees

b. Shareholders

c. special interest groups

d. Customers

e. Competitors

E

33. Jackie is the owner of a laptop computer manufacturing company in New Zealand. She is trying to figure out how the company can begin selling computers in Russia. Jackie believes that the company could sell millions of laptops in Russia Jackie has discovered that Russia has very high tariffs on foreign laptops that would make her companies to Russian customers. Russia wants to protect their laptop manufacturers. Is there another legal way for Jackie's company to sell laptops and Russia without paying the high tariffs?

a. Yes, if a Russian company or citizen bought the controlling interest in Jackie's New Zealand laptop company

b. Yes. because the New Zealand is not a G20 country, so it will not have to pay the Russian tariffs, because only G20 countries pay tariffs to BRICS countries

c. No, there is no legal way for Jackie's New Zealand company to do business in Russia without paying the high tariff

d. Yes, the company could build a factory in Russia, then the laptops would not have to pay the Tariff

e. no, because they would have to bribe Russian governmental officials, which would be illegal in New Zealand

D

34. Which of these terms below refers to limiting Imports in order to increase domestic production and consumption of goods that are normally imported?

a. Most favored nation

b. terms of trade

c. market economy

d. Offshoring

e. import substitution

E

35. When a country uses protectionism, who wins?

I. The government

II. Domestic producers

III. The domestic consumers

IV. Foreign Businesses

V. Import-competing companies

a. I,II, and III

b. I,III, and IV

c. I, II, III, IV and V

d. I, II, III, and IV

e. I, II, IV, and V

f. I, II, and V

F

36. You are a supply chain manager for a Haier Corporation, A Chinese company that makes refrigerators. The company is moving some refrigerators from Mexico to Canada by truck. The trucks will drive through America, but none of the refrigerator doors will be taken off the truck. You are told that Haier must pay $100 to drive the truck through America. This is an example of what?

a. Transportation tariff

b. export tariff

c. import tariff

d. ad valorem tariff

e. bribe payment

A

37. Argentina has decided to withhold their goods from International markets. Argentina is taking this action to try and raise prices it receives from other countries. This action would be most effective if Argentina:

a. holds a monopoly on the goods or resources to make them

b. has been offered low-interest loans by Foreign Banks

c. supports the expansion of substitute Goods

d. provides their domestic manufacturers with tax breaks

A

38. Most countries in the world would have put non-tariff barriers on some service businesses and do not permit a foreign company from entering the country to provide those services to their citizens. The list below includes service businesses that are usually stopped by most countries. Which business should not be on this list?

a. Hospitals

b. all of the other answers are correct * ( caroline thinks this and teacher means

that correct means that they are all on the list )

c. mail service

d. Insurance

e. public transportation

B

39. The US catfish industry successfully petitioned the US government to require that catfish varieties imported from Vietnam be labeled as tra, basa, pangasius. This is an example of which of the following?

a. VER

b. A quota

c. A tariff

d. a non-tariff barrier

e. a sanction

f. an embargo

D

40. When a Country Places import restrictions on foreign products that raises the price of those products; why do the citizens rarely (almost never) protest this action by their government?

a. Many countries do not allow consumers to produce their governments political actions

b. the people believe that if these import restrictions are taken away, the foreign producers will raise their prices to the same level as a domestic producers

c. the citizens believe that if they do something to hurt domestic employment for one product, then those employees that could lose their jobs will then take some action that will hurt their employment

d. typically, although the total cost that all consumers will pay for a given product are high, they are fairly small for each individual consumer

e. consumers believe that prices will always go up, so they do not care if import restrictions take place

D

41. You are a manager for McDonalds Corporation. Your boss tells you that the company is thinking about putting restaurants into a new foreign country that McDonalds has not been in before. Your boss is very interested to find out if the economic system of this new country will be a good one for McDonalds sales. He tells you that the new country's economy is based on optimizing economic efficiency, promoting egalitarianism, and preventing self-interest. What type of economy does this new country have?

a. None of the other answers are correct

b. Mixed economy

c. Market economy

d. Command economy

e. Socialistic economy

B

42. John lives in Brussels, Belgium. He wants to make some money and sees that his neighbor has left some old video games in the trash can. John asks his neighbor if he can have the video games and the neighbor says, 'yes.' John takes the video games and walks over to the local college. He sets up a table and sets the video games on it. Then he starts to sell the video games to students who walk by. This is an example of what?

a. The laissez-faire economy

b. The virtual economy

c. The command economy

d. The mixed economy

e. The shadow economy

f. The market economy

E

43. You are traveling on business in Japan. You land at the airport and change some of your country's money into Japanese Yen (Japanese money). After you check into your hotel, you walk down the street in Tokyo to a grocery store and buy 6 bottles of Coca-Cola to keep in your hotel room to drink while you are there. When you return to your hotel room you use your calculation to see how much money the Coca-Cola costs in your country's money. You realize that it costs about 30% more to buy the Coca-Cola in Japan. This difference in price is an example of __________.

a. The purchasing power parity

b. The balance of payments effect

c. Inflation effect in global trade

d. The variation in the consumption index between Japan and your country Coca-Cola increasing prices due to tariff effects

e. GNI of Japan compared to the GNI of your country

A

44. You are an international manager for Disney Corporation. You asked one of your employees to give you a list of the challenges for doing business in foreign countries. What statement below should NOT be on that list?

a. All of the other answers should be on the list

b. Uneven distribution channels

c. Corruption

d. Unstable or weak financial markets

e. Government involvement & control

A

45. Which economic metric provides the truest measure of the economic activity inside a country?

a. GNP

b. GNE

c. GNI

d. GDP

e. GDT

D

46. Since 1989, there has been an increase in freer markets around the world. One of the main reasons has been realization by many countries that _____.

a. Centrally planned economies are best designed to deliver progress.

b. Introducing free market principles contributes to social injustices

c. Freer markets make the price of goods cheaper.

d. Economic growth is directly related to economic freedom.

e. Economic growth has a limited effect on the standard of living.

D

47. Your boss asks you what the most effective way is to have employees follow the company's internal code of conduct. What would your answer be?

a. Have a meeting once a year for all employees to tell them how to behave b. Rely on consultants to develop guidelines

c. Ensure that employees understand the code by requiring confirmation in writing

d. Explain the code of conduct to potential employees during their interview for a job e. Pay bonuses to suppliers and distributors that agree to the code

C

48. One example of a country using protectionism of international trade would be:

a. Border checks to prevent entry of illegal aliens

b. Increasing foreign competition for the home country's infant industries

c. Methods used to prevent intellectual property theft

d. Governmental restrictions and competitive support actions to affect trade flows e. Payments to dock workers to prevent stealing from imported shipments

D

49. If you are asked to select the most important benefit for countries that are members of the World Trade Organization from the list below, which one is the correct answer?

a. WTO enforces trade agreements

b. WTO supports the use of tariffs for non-economic use

c. WTO is not helpful for developing countries

d. WTO is a very fast way to resolve disputes between WTO members

e. WTO will enforce a member country's trade policies on non-member countries

A

50. The coronavirus (COVID-19) has caused many people to lose their jobs in England, France, and Germany. Those unemployed workers are most likely to support which of these actions by their governments?

a. Export quotas

b. Export restrictions

c. Import subsidies

d. Import restrictions

e. Price limitations

f. Foreign aid loans

D

51. In some cases, developing countries have tried to use economic policies to move citizens out of agriculture and into manufacturing industries by protecting manufactured production from foreign imports. One big problem those developing countries have had is that _______.

a. Food shortages have increased in the rural areas of the country because of fewer workers in the rural areas.

b. The developed countries have retaliated with protection of products from the developing countries.

c. The demand for more social and governmental services has increased greatly in the cities.

d. The citizens have not wanted to leave rural areas and move into the cities.

C