International Research Chapter2-4

Which of the following is the most fundamental change in the world economy since WWII?

Emergence of global markets

Economic growth is measured by Gross Domestic Product (GDP) and reflects a nation’s ______.

economic activity

The growth of ______ has diminished the importance of national barriers and has forced companies to reevaluate their business models.

e-commerce

_____ is the economic system where customers are free to purchase whatever is available, yet demand usually exceeds supply.

Centrally planned socialism

As a consideration in categorizing economic systems, the commanding heights refers to which of the following?

The ownership and control status of industry sectors

In which of the following systems do consumers decide what goods they desire, and firms determine what and how much of those goods to produce?

Market capitalism

Private ownership and a free enterprise economy are key to which of the western market systems?

The Anglo-Saxon model

In a _______ economic system, the state has broad powers to serve the public interest as it sees fit.

centrally planned socialism

Centrally planned capitalism is an economic system in which _____.

command resource allocation is utilized extensively in an overall environment of private resource ownership.

______ is an approach in an economy where the government decides what goods are produced, how much is produced, and set the price of the goods produced.

Command allocation

Which of the following explains why Sweden’s economic system is considered a hybrid of capitalism and centrally planned socialism?

Sweden’s economy is based on state ownership and private ownership.

Uzbekistan is the Central Asian country where annual per capita GDP has averaged about $2,000 during the past several years. There is considerable economic hardship and potential for disruption in the nation, yet it presents an interesting risk-reward trade-off for GM and other global companies. To which stage of economic development does Uzbekistan belong?

Lower-middle-income countries

The majority of the nations the WTO considers low-income are located in _____.

Sub-Saharan Africa

______ represents the largest single market for foreign investment in the developing world.

China

In which of the following categories of high income countries does hte service sector account for more than 50% of national output?

Post industrialized

Which of the following group of high-income countries has worked together for more than 25 years to encourage growth of the global economy?

Group of Seven (G-7)

Which of the following has been considered the “economic think tank”?

Organization for Economic Cooperation and Development (OECD)

For 2016, service exports to China were $54 billion and services imported from China were negative $16 billion. From this we can conclude which of the following?

The U.S. has a service trade surplus with China.

A _______ results when the outflow of money to pay for imports exceeds the inflow of money from the sale of exports.

trade deficit

Which of the following is closely associated with purchasing power parity (PPP)?

The Big Mac Index

Which of the following explains why a 1-yen shift in the yen-dollar exchange rate can raise or lower Sony’s annual operating profit by 8 billion yen?

Fluctuating currency values

Which of the following is the fastest growing sector of world trade?

Services

In 2015, which of the following countries was the world’s leading exporter?

China

Which of the following terms refers to the impact of currency fluctuations on a global company’s financial performance?

Economic exposure

A reduction in the value of a nation’s currency against other currencies is known as _____.

devaluation

Which organization provides a forum for trade-related negotiations among its members?

World Trade Organization

Which of the following was a 1947 treaty among nations whose governments agreed, at least in principle to promote trade among members?

General Agreement on Tariffs and Trade (GATT)

Which of the following is involved in the resolution of conflict between the U.S. and the EU over aerospace subsidies?

The Dispute Settlement Body (DSB)

A(n) _____ seeks to coordinate and harmonize economic and social policies to facilitate the free flow of capital, labor, and goods and services from country to country.

economic union

A preferential trade agreement (PTA) is _____.

a mechanism that confers special treatment on select trading partners

What would be needed for NAFTA to become a Customs Union?

The establishment of common external tariffs

Which of the following is a common marketplace not only for goods but also for services and capital?

Economic union

Which of the following is NOT a major challenge to the NAFTA agreement?

Excessive external tariffs

Which of the following is the number one trading partner of the United States?

Canada

What is the major trade challenge for Andean Community members?

High tariffs on imported goods

______ has become key to facilitating commodities trading between Latin American countries and new markets like China and India.

Common Market of the South

Which of the following helps to explain why the Andean Community has not yielded more economic benefits?

Competing political ideologies

CARICOM members are from which geographical region?

The Caribbean

What is the major challenge facing the members of the Association of Southeast Asian Nations (ASEAN)?

Widely varying stages of development

Based on the combined population and GDP, which preferential trade organization has the greatest global impact?

ASEAN

The signing of the Maastricht Treaty set the stage for the creation of ______.

The European Central Bank and the euro currency

Which of the following organizations constitutes the world’s largest economy?

EU

Which of the following terms is used to express the idea that content and other product standards that varied among nations have been brought into alignment?

Harmonization

Which of the following is the name for the economic and monetary union that includes a European central bank and a single European currency?

Euro Zone

_________ has widened the gap between poor and rich nations in the Middle East.

Revenue from oil

Which of the following organizations is striving to speak “as one voice” regarding political turmoil in the Middle East?

The GCC

North Africa and the Middle East are viewed as a regional entity known as _____.

Mena

Which preferential trade group is made up of Kenya, Uganda, Tanzania, Rwanda, and Burundi?

East African Community

Which of these areas of Africa has the lowest average per capita income?

Sub-Saharan Africa

Hofstede’s “collective programming of the mind” refers to which of the following?

Culture

A culture’s sense of what is beautiful and what is not beautiful is a consideration of _______.

aesthetics

In most cultures, ______ is the basis of people’s beliefs, attitudes, and values.

religion

The _____ consists of various cultural segments interconnected through digital technology and global branding.

cosmopolitan culture

All associations and perceptions of ________ arise from culture.

color

The system of meaning in the study of linguistics is called_______.

semantics

In a high-context cultural orientation, which of the following is of LOW importance?

Legal documents

In a low-context culture, which of the following is of HIGH importance?

Written contracts

Which of the following of Hofstede’s dimensions of culture can be applied to gender differences in culture?

Achievement/nurturing

Which of the following dimensions of national culture would most likely prefer joint ventures rather than sole ownership?

Low-power-distance index

Which of the following dimensions of social value typology provide insight into the acceptance of products perceived as new or innovative?

Uncertainty avoidance

Which of the following dimensions of Hofstede’s cultural typology was added based on a Chinese Value Survey (CVS)?

Long-term/short-term orientation

Which of Hofstede’s dimension of national culture examines how people value history and tradition?

Short-term orientation

Which of the following BEST defines the self-reference criterion?

The unconscious reference to one’s own cultural values.

Which of the following steps of the 4-step framework designed to reduce the distortion from self-reference criterion (SRC) is MOST critical?

Isolate the SRC influence to see how it complicates the problem.

Which of the following adopter categories has the greatest influence in the adoption process?

Early adopters

An American in Russia observes a business transaction being completed with payment in cash from a large briefcase. To the American, this appears to be possibly corrupt or fraudulent. Why?

The American’s self-reference criterion (SRC)

______ is the first stage of Rogers’ diffusion theory.

Awareness

_______ is how a new product compares with existing products in the eyes of the customer.

Relative advantage

The process through which individuals who have adopted innovation influence others is called ______.

interaction effect

Which for the following products would probably have the greatest environmental sensitivity if introduced into a new market?

Campbell’s soup

Red Bull built market share through sampling. This reflects which of the factors that affects the rate of adoption?

Divisibility

The greater the cultural difference between the home country and the new market, the greater the _______.

need to product adaptation

When creating a global marketing plan, _____ reflects the extent to which the strategy must be adapted to culture-specific needs of the market.

environmental sensitiviy

A company with environmentally insensitive products requires ______.

less time determining the unique conditions of local markets