QUESTION Free trade alone, some argue, is a necessary but not sufficient prerequisite to help the world’s poorest countries bootstrap themselves out of poverty. They also recommend: A. a highly regulated command economy. B. weaker property rights laws. C. weaker labor regulations. D. large-scale debt relief. E. rapid expansion in population. ANSWER D Free […]
QUESTION The governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based economic reforms. Indicate whether the statement is true or false. ANSWER TRUE In many respects, the governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based […]
QUESTION The minimum that a firm has to do to engage in international business is to: A. export or import products from other countries. B. invest directly in operations in another country. C. establish joint ventures or strategic alliances with companies in other countries. D. export low-wage manufacturing jobs to companies in other countries. E. […]
QUESTION In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply. Indicate whether the statement is true or false. ANSWER FALSE In a pure command economy, […]
QUESTION Ryan is the executive general manager of a U.S. multinational and Veronica is a manager in a similar position, but works for another U.S. company that operates only in its home country. In this context, which of the following business functions will be most typically exclusive to Ryan? A. Marketing a product or service […]
QUESTION The term political economy is used to stress the fact that the political, economic, and legal systems of a country are independent of each other. Indicate whether the statement is true or false. ANSWER FALSE We use the term political economy to stress that the political, economic, and legal systems of a country […]
QUESTION Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off. Which of the following is being justified in this case? A. Protectionism and retaliatory trade policy B. Free trade of goods and services C. Rise of communism D. High […]
QUESTION “Exporting jobs” to low-wage nations has contributed to: A. higher living standards in those countries that “export” the jobs. B. higher unemployment in wealthy advanced economies such as the United States. C. an increase in the income levels in those nations that “export” the jobs. D. lower standards of living in those countries to […]
QUESTION Critics of globalization say that exporting jobs to low-wage nations results in higher unemployment and lower living standards in their home nations. Which of the following statements does NOT support this argument? A. Globalization destroys manufacturing jobs in wealthy advanced economies. B. Globalization demonstrates a structural adjustment to a more integrated global economy. C. […]
QUESTION Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the: A. migration of low-wage manufacturing jobs offshore. B. technology-induced shift toward jobs that require significant education and skills. C. increased supply of highly skilled workers. D. decreasing demand for unskilled workers in developing nations. E. reducing national […]
