Question Module 5 Midterm Exam 1. Question : Olive oil made in Italy and sold in the United States is an example of which of the following? Global brand U.S. export U.S. import Standardized product Question 2. Question : Levi’s Jeans made in the United States and sold in Russia are an example of which of the following? U.S. export Outsourced product Globally licensed product U.S. import Question 3. Question : Denationalization refers to ________. a loss of sovereignty among nations national boundaries becoming less relevant cooperation between nations to reduce trade barriers attempts by international organizations to resolve trade conflicts Question 4. Question : Which of the following is an example of the globalization of production? Canadian consumers buy foods imported from Australia A Chinese company sells textiles to European car makers A U.S. company builds a manufacturing facility in India A Swiss watch manufacturer builds a manufacturing facility in Switzerland Question 5. Question : Two major forces that underlie the expansion of globalization are ________ and ________. deregulation of tourism; the rise of nationalism economic interdependence; the decline of international organizations trade barriers; political unrest falling barriers to trade and investment; technological innovation Question 6. Question : A limit placed on the quantity of an imported product is known as which of the following? Import sanction Tariff Embargo Nontariff barrier Question 7. Question : All of the following represent examples of regional trade agreements except ________. WTO EU APEC NAFTA Question 8. Question : Last year, Sabrina Shin started a business selling all types of spices and hot sauces. The business is small but this entrepreneur’s dreams are big. Given limited demand and sales fluctuations in the domestic market, Sabrina has been considering going international; however, she has little information, many doubts, and no guidance. Which of the following can help Sabrina reach consumers in different corners of the world quickly and inexpensively? Intranet Extranet GPS Internet Question 9. Question : For 75 years, from the start of the First World War to the end of the Cold War, there was a geographic divide between ________, and an ideological divide between ________. North and South; protectionism and socialism North and South; regionalism and globalization East and West; regionalism and globalization East and West; communism and capitalism Question 10. Question : Which of the following terms is used to refer to widespread job turnover throughout an economy? Redeployment Churning Wage differentials Attrition spectrum Question 11. Question : Which of the following makes the world market more accessible for companies that sell traditional products by lessening the cost and difficulties associated with global communication? Technology Franchising opportunities Licensing Financial capital Question 12. Question : Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts? Customs Attitudes Manners Values Question 13. Question : ________ refers to the replacement of one culture’s traditions, folk heroes, and artifacts with substitutes from another. Cultural imperialism Acculturation Cultural attrition Cultural immersion Question 14. Question : Which of the following terms is used to refer to behavior that is shared by a heterogeneous group or by several groups? Manners Lingua franca Popular custom Folk custom Question 15. Question : Which of the following terms is used to refer to the process of ranking people into social layers or classes? Social status Social stratification Social group Social mobility Question 16. Question : A Chinese business establishes an office in Hong Kong. It conducts business locally with vendors and customers who live in Hong Kong. Which of the following would be most effective as the company’s main business dialect? Taiwanese Guanxi Mandarin Cantonese Question 17. Question : All of the following are dimensions developed by Hofstede for examining cultures except ________. individualism versus collectivism power distance uncertainty avoidance caste system versus class system Question 18. Question : Sid Maxwell is head of legal affairs for Hudson Inc., a producer of animal figurines that include an embedded software program that makes animal sounds. Hudson is expanding its market to include parts of Asia and Maxwell is concerned about reports of software piracy in the region.Which of the following could Hudson obtain to protect its rights to the proprietary software embedded in the figurines? Trademark Patent Copyright Users license Question 19. Question : Global Trading, LLC, is a distributor of computer software and hardware, steel and copper scrap, and telephone and electric utility equipment.Involved in three very different types of industries, the company faces many types of risks in its global business. Global Trading just learned that the government in one country in which it does business has taken over the entire electric utility industry. The government’s actions are an example of ________. confiscation globalization expropriation nationalization Question 20. Question : Susan Smith works in marketing at Reconditioned Refrigerators (R&R), a global manufacturing company. Susan knows that to advance into upper management she must gain broader experience and was recently told that she can choose from several locations in which R&R is active for her first international assignment. Susan knows little about other nations, their cultures, and their political systems, so she has embarked on an ambitious research project to make an informed decision. Susan’s personal political beliefs are congruent with those of a democracy. Susan’s beliefs are most likely reflected in which of the following political ideologies? Anarchism Pluralism Totalitarianism Socialism Points Received: 0 of 1 Question 21. Question : An international human rights organization recommends that its member countries review their human rights policies on a periodic basis to ensure that their governments are upholding ethical standards for the treatment of prisoners. Which of the following represents the most effective reasoning in support of the organization’s recommendation? Ethical policies and practices tend to remain consistent within the same country over time. Nations should only enforce ethical standards that have been approved by other nations. Nations should enforce those ethical standards that have been adopted in other nations. Ethical standards change over time, so national policies should be updated as necessary. Question 22. Question : A bootleg Prada backpack that costs $500 in New York but sells for $100 in Rome is an example of which of the following? Patent infringement Pirated product Copyright violation Standardized product Question 23. Question : Which of the following legal systems is based on a detailed set of written rules and statutes that constitute a legal code? International law Civil law Tribal law Common law Question 24. Question : Which of the following is the broadest measure of economic development? Gross domestic product (GDP) Purchasing power parity (PPP) Gross national product (GNP) Human development index (HDI) Question 25. Question : The pattern of imports and exports that occurs in the absence of trade barriers is called ________. an embargo protectionism infant industry free trade Question 26. Question : Which of the following is an example of an economic motive for nations’ attempts to influence international trade? Pursue strategic trade policy Protect jobs Respond to “unfair” trade Preserve national security Question 27. Question : Which of the following created renewed determination to further reduce barriers to trade? Consumer demand Advancements in telecommunications Portfolio investment trends Uruguay Round of trade negotiations Question 28. Question : Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves and erect a common trade policy against nonmembers is called a(n) ________. economic union customs union common market political union Question 29. Question : The international bond market consists of all bonds sold by issuing companies, governments, or other organizations ________. within their own countries to London banks outside their own countries to developing nations only Question 30. Question : Sandy Smith, vice president of marketing for a large consumer products company, will soon travel to Colombia to spearhead an effort to increase her company’s presence there. Sandy is concerned about her safety and has contacted a risk-assessment service for advice. Which of the following is most likely to assist Sandy in keeping a low profile? Dressing like the locals whenever possible and avoiding expensive jewelry Participating in public demonstrations attended by large local crowds Streamlining financial transactions by paying for expenses with large denominations Maintaining the ability to cover unexpected expenses by carrying a large amount of cash Question 31. Question : Explain the concept of culture. Why is it important to avoid ethnocentricity and gain cultural literacy? Question 32. Question : Explain the concept of balance of payments and describe its two major components.