QUESTION Which of the following is NOT a concern for managers in international businesses? A. Fundamental differences in culture B. Perceived distance between home country and operating nations C. Government restrictions on international trade D. Cross-border transactions involving currency exchange E. Ethical adherence to environmental standards ANSWER B In sum, managing an international business […]
QUESTION All right-wing dictatorships display an affinity toward socialist or communist ideas. Indicate whether the statement is true or false. ANSWER FALSE A common feature of many right-wing dictatorships is an overt hostility for socialist or communist ideas.
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 An argument in support of the falling barriers to international trade and investment is that the falling barriers: A. prohibit countries from specializing in the production of goods and services. B. drive the global economy toward greater prosperity. C. reduce the need to export jobs overseas. D. increase the bargaining power of business firms […]
QUESTION Which of the following has increased in the United States as a result of globalization? A. Unemployment rate B. Price of goods and services C. Demand for unskilled workers D. Standard of living E. Income equality between workers in skilled and unskilled sectors ANSWER A The popular feeling is that when corporations such […]
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 […]