Final Multiple Choice Flashcards
The likelihood that a trading partner will opportunistically break a contract or expropriate
property rights is called a(n)
legal risk
Countries with ________ economies in which property rights are protected tend to
achieve greater economic growth rates than other economies where property rights are poorly
protected.
market
Without a strong legal system in a market economy
private and public entities can expropriate the profits generated by the efforts of
private-sector entrepreneurs.
Many states in Asia, Latin America, and Western Europe have shifted away from a mixed
economy to a market-based economy. Which measure is most likely to be promoted by such
states?
deregulation of the economy
The economic freedom associated with a _____ creates greater incentives for innovation
and entrepreneurship than either a planned or a mixed economy.
market economy
The term ________ stresses that the political, economic, and legal systems of a country
are interdependent.
political economy
When ________ is emphasized, an individual’s right to do something may be restricted
on the grounds that it runs counter to “the good of society.”
collectivism
An economy in which the interaction of supply and demand determines the quantity in
which goods and services are produced is called a
market economy
Which of the following is a characteristic of a command economy?
limited international trade
Which of the following are more conducive to economic growth?
democratic regimes
In a(n) ________ society, the welfare of society is best served by letting people pursue
their own economic self-interest.
individualist
Manchu believed that socialism could be achieved only through violent revolution and
totalitarian dictatorship. Manchu was likely a
communist
Modern socialists trace their intellectual roots to ________, although socialist thought
clearly predates this individual.
Karl Marx
Which factor hinders globalization of consumer goods market?
national and cultural differences in tastes and preferences
Which statement is true about the International Monetary Fund (IMF)?
It is seen as the lender of last resort to nation-states whose economies are in turmoil.
The World Trade Organization promotes
the lowering of barriers to cross-border trade and investment.
The ______ is primarily responsible for policing the world trading system and making
sure nation-states adhere to the rules laid down in trade treaties signed by member states.
World Trade Organization
Which institution focuses on making low-interest loans to cash-strapped governments in
poor nations that wish to undertake significant infrastructure investments?
the World Bank
The G20 was originally established to
formulate a coordinated policy response to financial crises in developing nations.
In 2008 and 2009, the ________ became the forum through which major nations
attempted to launch a coordinated policy response to the global financial crisis, which started in
America.
Group of Twenty (G20)
Culture is
constantly evolving.
Cross-cultural literacy refers to
an understanding of how cultural differences can affect business.
Social rules and guidelines that prescribe appropriate behavior in particular situations are
best described as
norms
Hofstede’s masculinity versus femininity dimension looked at the relationship between
gender and work roles and found that in
masculine cultures, gender roles were differentiated, and traditional “masculine
values” determined cultural ideals.
The ________ refers to the extent to which a culture programs its citizens to accept
delayed gratification of their material, social, and emotional needs.
long-term versus short-term orientation dimension
The core idea behind ________ is that an organization’s actions will not exert a negative
impact on the ability of future generations to meet their own economic needs and that its actions
impart long-run economic and social benefits on stakeholders.
sustainability
What is the term for a company’s formal statement of the ethical priorities it expects all
of its employees to follow?
code of ethics
Miranda is a cultural relativist, which means she likely believes
a firm should adopt the ethics of the culture in which it is operating.
According to the _____ point of view, a firm should adopt the ethics of the culture in
which it is operating.
cultural relativism
A ________ asserts that if a manager of a multinational sees that firms from other nations
are not following ethical norms in a host nation, that manager should not either.
naive immoralist
Justice theories of business ethics focus on
the attainment of a fair and equitable distribution of goods and services.
Regarding the four components of the diamond, Porter contends that government
can influence each of the four components of the diamond either positively or
negatively.
_____ supports the idea that countries should export more than they import.
mercantilism
Which of the following theories emphasizes the interplay between the proportions in
which the factors of production are available in different countries and the proportions in which
they are needed for producing particular goods?
Heckscher-Ohlin theory
New trade theory suggests that nations
may benefit from trade even when they do not differ in resource endowments or
technology.
One of the advantages of being the first mover in a market is
the ability to capture scale economies ahead of later entrants.
According to the product life-cycle theory, the high cost of U.S. labor gave U.S. firms an
incentive to
develop cost-saving process innovations.
As a trade theory, mercantilism was based on the idea that a trade surplus would lead to
accumulations of gold and silver.
Walmart makes bulk purchases from its vendors and as a result it is able to get better
deals than its competitors. This allows Walmart to offer greater discounts to its customers. In this
case, Walmart benefits from
economies of scale
The ________ argues that for most of the twentieth century, a very large proportion of
the world’s new products had been developed by U.S. firms and sold first in the U.S. market.
product life-cycle theory
