.
Which of the following is not a concern of critics of globalization and supranational organizations?
Student
Response
A. Unelected bureaucrats of supranational organizations would impose policies on the democratically elected governments of nationstates
Value Correct
Answer
B. Supranational organizations would undermine the sovereignty of democratically elected states
C. A nation's ability to control its own destiny would be limited by supranational organizations
0%
Feedback
D. Real power would reside with individual nation-states, not supranational organizations
Score:
Comments:
0/1
2.
Which of the following does not help create an economic system that is favorable to international business?

Student
Response
A. Decreased privatization
Value Correct
Answer
Feedback
B. Widespread deregulation
C. Open markets
D. Falling trade and investment barriers
0%
Score:
Comments:
0/1
3.
Technological innovations have facilitated all of the following except
Student
Response
A. Globalization of production
Value Correct
Answer
B. Globalization of markets
C. Creation of electronic global marketplaces
Feedback
D. Creation of absolutely homogeneous consumer markets
100%
Score:
Comments:
1/1
4.
The growing integration of the world economy is
Student
Response
Value Correct
Answer
Feedback

A. Increasing the intensity of competition in a wide range of manufacturing and service industries
100%
B. Decreasing the intensity of competition in manufacturing industries and increasing the intensity of competition in services
C. Increasing the intensity of competition in manufacturing industries and decreasing the intensity of competition in services
D. Narrowing the scope of competition in a wide range of service, commodity and manufacturing industries
Score:
Comments:
1/1
5.
Which of the following is not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?
Student
Response
Value Correct
Answer
A. Reduced transportation costs
100%
Feedback

B. Government regulations
C. Issues associated with economic and political risk
D. Barriers to foreign direct investment
Score:
Comments:
1/1
6.
This can be defined as the likelihood that a trading partner will opportunistically break a contract or expropriate property rights.
Student
Response
Value Correct
Answer
Feedback
A. Legal risk
B. Economic risk
C. Product risk
100%
D. Environment risk
Score:
Comments:
1/1
7.
This law Passed by the United States in 1970 makes it illegal to bribe a foreign government official in order to maintain business over which that foreign official has authority and requires all publicly traded companies to keep detailed records that would allow determining whether a violation of the act has occurred is known as the
Student
Response
Value Correct
Answer
A. CIGS
B. Foreign
Corrupt
Practices Act
100%
C. Economic
Feedback

Cooperation
Anti
Corruption
Act
D. Convention on
Combating
Bribery of
Foreign
Officials in
International
Transactions
Score:
Comments:
1/1
8.
Which of the following countries can be best described as a communist totalitarian regime?
Student
Response
Value Correct
Answer
Feedback
A. Japan
B. Singapore
C. North
Korea
100%
D. Philippines
Score:
Comments:
1/1
9.
A state where political power is monopolized by a party, group or individual that governs according to religious principles is best described as following
Student
Response
Value Correct
Answer
A. Theocratic totalitarianism
100%
B. Tribal totalitarianism
C. Right-wing totalitarianism
D. Communist
Feedback

totalitarianism
Score:
Comments:
1/1
10.
Individualism is built on two central tenets:
Feedback Student
Response
A. Socialism is the preferred political philosophy and an emphasis on the importance of collective interests over individual interests
Value Correct
Answer
B. An emphasis on the importance of collective interests over individual interests and the belief that the welfare of society is best served by giving precedence to its needs over individual needs
C. The needs of society as a whole are more important than individual

freedoms and social welfare is to be achieved even if at the cost of individual freedom
D. An emphasis on the importance of guaranteeing individual freedom and self expression and the belief that the welfare of society is best served by letting people pursue their own economic self-interest
100%
Score:
Comments:
1/1
11.
Hofstede's dimension of Confucian dynamism
Student
Response
Value Correct
Answer
A. Captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition and reciprocation of gifts and favors
100%
Feedback

B. Focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities
C. Explores the relationship between the individual and his or her fellows
D. Looks at the relationship between gender and the ability to accept ambiguous situations
Score:
Comments:
1/1
12.
The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities.
Feedback Student
Response
A. Power distance
B. Individualism vs. collectivism
C. Uncertainty avoidance
Value Correct
Answer
100%
D. Masculinity vs. femininity
Score:
Comments:
1/1

13.
While _____ is the mother tongue of the largest number of people in the world, the most widely spoken language is ----------.
Student
Response
Value Correct
Answer
A. Spanish;
Chinese
B. English;
Hindi
0%
Feedback
C. Hindi;
Spanish
D. Chinese;
English
Score:
Comments:
0/1
14.
According to _____ the way to achieve nirvana is to lead a severe ascetic lifestyle of material and physical self-denial, devoting life to a spiritual rather than material quest.
Student
Response
Value Correct
Answer
0%
Feedback
A. Buddhism
B. Hinduism
C. Confucianism
D. Islam
Score:
Comments:
0/1
15.
The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines
Student
Response
Value Correct
Answer
A. Society
0%
B. Value systems
Feedback

C. Principles
D. Culture
Score:
Comments:
0/1
16.
Under the veil of ignorance, everyone is imagined to be ignorant of
Student
Response
Value Correct
Answer
A. All of his or her particular characteristics
100%
Feedback
B. Fundamental rights and privileges
C. The moral worth of actions or practices
D. The minimum levels of morally acceptable behavior
Score:
Comments:
1/1
17.
Article 1 of the United Nations' Universal Declaration of Human Rights states: "All human beings are born free and equal in dignity and rights." This best echoes
Student
Response
Value Correct
Answer
A. Cultural relativism
B. Friedman doctrine
C. The righteous moralist approach
Feedback

D. Kantian ethics
100%
Score:
Comments:
1/1
18.
The _____ approach 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.
Student
Response
Value Correct
Answer
A. Cultural relativism
B. Friedman doctrine
Feedback
C. Righteous moralist
D. Naive immoralist
100%
Score:
Comments:
1/1
19.
The righteous moralist approach to business ethics is typically associated with managers from
Student
Response
A. Third world nations
B. Underdeveloped nations
C. Developing nations
D. Developed nations
20.
Score:
Comments:
Value Correct
100%
Answer
1/1
Feedback

Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because of all of the following reasons except
Student
Response
Value Correct
Answer
A. They are away from their ordinary social context and supporting culture
B. They are psychologically and geographically closer to the parent company
100%
C. They may be based in a culture that does not place the same value on ethical norms important in the manager's home country
Feedback
D. They may be surrounded by local employees who have less rigorous ethical standards
Score:
Comments:
1/1
21.
According to the product life cycle theory, the locus of global production initially switches from the U.S. to other advanced nations and then from those nations to developing countries. The consequence of this trend for the pattern of world trade is that over time the U.S.
Student
Response
Value Correct
Answer
Feedback
A. Becomes

the sole producer of a product
B. Switches from being an exporter of the product to being an importer of the product
100%
C. Switches from being an importer of the product to being an exporter of the product
D. Becomes the sole consumer of the product
Score:
Comments:
1/1
22.
Raymond Vernon argued that new products were developed by U.S. firms and first sold in the U.S. market because
Feedback Student
Response
Value Correct
Answer
A. European competitors were not active in product
R&D
B. American firms were able to take

advantage of tax credits for product
R&D
C. The wealth and size of the US market gave the firms an incentive to develop new products
100%
D. The low cost of U.S. labor gave
U.S. firms an incentive to develop costly process innovations
Score:
Comments:
1/1
23.
China, deliberately keeping its currency value low against the U.S. dollar in order to sell more goods to the United States and thus amass a trade surplus and foreign exchange reserves is viewed by critics as following a
Feedback Student
Response
Value Correct
Answer
A. Zero-sum game
B. Neomercantilist policy
100%
C. Positivesum game
D. Free trade policy
Score:
Comments:
1/1

24.
According to the _____, US is a major player in the commercial jet aircraft industry because US firms were first movers in the world market.
Student
Response
Value Correct
Answer
A. Product life cycle theory
0%
B. Theory of mercantilism
C. New trade theory
Feedback
D. Theory of absolute advantage
Score:
Comments:
0/1
25.
This theory explains the observed patterns of international trade by emphasizing 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.
Student
Response
A. Mercantilism
B. Absolute advantage
Value Correct
Answer
Feedback
C. Heckscher-
Ohlin
D. Comparative advantage
0%
Score:
Comments:
0/1
26.
The WTO argues that by removing all tariff barriers and subsidies to agriculture all of the following would occur, except

Student
Response
Value Correct
Answer
A. The overall level of trade would increase
0%
B. There would be overproduction of products that are heavily subsidized
Feedback
C. Prices would fall for consumers
D. Global economic growth would rise
Score:
Comments:
0/1
27.
_____ argues that a strategic trade policy aimed at establishing domestic firms in a dominant position in a global industry is a beggar-thy-neighbor policy that boosts national income at the expense of other countries.
Student
Response
Value Correct
Answer
0% A. David
Ricardo
B. Adam
Smith
Feedback
C. Michael
Porter
D. Paul
Krugman
Score:
Comments:
0/1
28.
The _____ specifies that government agencies must give preference to American products when putting contracts for equipment out to bid unless the foreign products have a

significant price advantage.
Student
Response
Value Correct
Answer
100%
A. Buy
America
Act
B. Anti-
Dumping
Act
Feedback
C. Helms-
Burton Act
D. D'Amato
Act
Score:
Comments:
1/1
29.
In the United States only firms allowed to import cheese are certain trading companies, each of which is allocated the right to import a maximum number of pounds of cheese each year. Identify the trade restriction being imposed by the U.S. here.
Student
Response
Value Correct
Answer
A. Import quota
B. Subsidy
100%
Feedback
C. Ad valorem tariff
D. Specific tariff
Score:
Comments:
1/1
30.
According to the _____ policy, subsidies can help a firm achieve a first-mover advantage in an emerging industry.
Feedback Student
Response
A. Strategic
Value Correct
Answer
100%

trade
B. Antidumping
C. Tariff quota
D. Free trade
Score:
Comments:
1/1
31.
You are the CEO of a company that has to choose between making a $100 million investment in Russia or the Czech Republic. Both investments promise the same long-run return, so your choice is driven by risk considerations. Assess the various risks of doing business in each of these nations. Which investment would you favor and why?
Student
Response:
Sample
Correct
Answer
I would favor the investment with the Czech Republic. Russia has very strict political authority that would make any kind of trade difficult. Also, there is a lot of crime to contend with in Russia. The Czech Republic has none of these.
Maximum Points: 5
Correct/ Suggested Answer:
Comments- When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in both Russia and the
Czech Republic. The political risk in Russia is still high but it is undergoing continual governmental changes, and courting foreign investment. Relatively, the Czech Republic is more stable, but it may have less potential. On the economic front, both countries have inflation and high economic turmoil as unproductive factories are still struggling. From the legal perspective, the
Czech Republic is making clear progress, while the situation in Russia is unclear. Thus at this time, the risk in Russia would clearly be higher.
General
Feedback:
Score:
Comments:
Maximum Points: 5
Correct/ Suggested Answer:
Comments- When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in both Russia and the
Czech Republic. The political risk in Russia is still high but it is undergoing continual governmental changes, and courting foreign investment. Relatively, the Czech Republic is more stable, but it may have less potential. On the economic front, both countries have inflation and high economic turmoil as unproductive factories are still struggling. From the legal perspective, the
Czech Republic is making clear progress, while the situation in Russia is unclear. Thus at this time, the risk in Russia would clearly be higher.
4.5/5
32.
You are an employee of an U.S. firm that produces personal computers in Thailand and then exports them to the U.S. and other countries for sale. The personal computers were

originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were Malaysia and Hong
Kong. The US government decides to impose punitive 100% ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand. How do you think your firm should respond? What does this tell you about the use of targeted trade barriers?
Student
Response:
Sample
Correct
Answer not answered
Maximum Points: 5
Correct/ Suggested Answer:
Comments- As long as the manufacturing requirements haven't changed significantly, looking at Malaysia or Hong Kong again for production would appear obvious. When the U.S. government introduces a specific ad valorem tariff on Thai computer imports, it forces manufacturers to get around these restraints by developing other strategies, including looking at other locations.
Another approach would be to produce the computers in sections and then assemble them in the U.S., depending on the legislation. Or continue manufacture in Thailand and assemble them in Malaysia or HK. Such targeted trade barriers can often be easily circumvented. Targeted trade barriers, like most forms of government intervention, are usually ineffective.
General
Feedback:
Maximum Points: 5
Correct/ Suggested Answer:
Comments- As long as the manufacturing requirements haven't changed significantly, looking at Malaysia or Hong Kong again for production would appear obvious. When the U.S. government introduces a specific ad valorem tariff on Thai computer imports, it forces manufacturers to get around these restraints by developing other strategies, including looking at other locations.
Another approach would be to produce the computers in sections and then assemble them in the U.S., depending on the legislation. Or continue manufacture in Thailand and assemble them in Malaysia or HK. Such targeted trade barriers can often be easily circumvented. Targeted trade barriers, like most forms of government intervention, are usually ineffective.
Score: 0/5
Comments: not answered