Reference no: EM132222783
1. Due to benefits associated with free trade and investment, the gap between the rich and poor nations of the world has reduced.
True
False
2. Joel is the manager of his company's facilities in Bangladesh. He believes in applying the exact same standards of working conditions, wages, and labor management in Bangladesh as practiced in the company's corporate office in the U.S.—a policy that does not always translate successfully given the vast cultural differences between the two nations. Joel can be identified as subscribing to the straw man approach of:
naive immoralism.
cultural relativism.
righteous moralism.
the Friedman doctrine.
3. All of the following are reasons why expatriate managers may experience increased pressure to violate their personal ethical standards EXCEPT that:
they may be surrounded by local employees who have less rigorous ethical standards.
they place a high value on adherence to human rights.
they are geographically away from the parent company.
they are pressured by their company to meet unrealistic goals.
4. Which of the following best describes the essential task of Porter's 1990 study of national competitive advantage?
How do nations leverage their resources efficiently to gain absolute advantage
Why does a nation achieve international success in a particular industry
How do countries gain first-mover advantages
What are the international trade patterns in evidence in the modern world
5. An alleged example of _____ occurred in 2009, when a number of Chinese toys manufacturers were accused of selling toys in the U.S. market at below their costs of production.
dumping
monopolizing
slicing
subsidizing
6. In the Foxconn and Apple video, suppose you were a manager of a company which was one of the major buyers of Foxconn, you decided to ask the boss of Foxconn to increase the salary of his workers to the level of the minimum wage in the U.S., because you believe the U.S. standards of ethics should be applied to the companies in China. This belief is called "Kantian ethics".
True
False
7. Which of the following is an advantage that first-movers enjoy?
Increasing returns to specialization
A positive-sum game due to lack of competition
Capture scale economies ahead of later entrants
Absolute advantage and higher efficiency
8. Tariffs:
reduce the price of foreign goods.
reduce the overall efficiency of the world economy.
help in efficient utilization of resources.
are unambiguously pro-consumer and anti-producer.
9. If the cultures of the United States and France result in different work-related values, an international business with operations in both countries should:
vary its management process and practices to account for these differences.
adopt similar management processes and practices in both countries.
opt to exit one of the markets to avoid a conflict.
ignore cultural differences and focus only on the economic aspects.
10. All of the following were provisions of the Uruguay Round Agreement EXCEPT:
clearer and stronger GATT rules.
extension of GATT fair trade and market access rules to cover a wider range of services.
substantial reduction in agricultural subsidies.
increase in tariffs on industrial goods in lieu of the reduction in agricultural subsidies.
11. If a company were to draw from the ideas proposed in the various theories of international trade, from a profit perspective, how would it go about selecting locations for its businesses?
It would concentrate its productive activities mostly in developing countries.
It would concentrate its productive activities in its home country.
It would disperse its productive activities to those countries where they can be performed most efficiently.
It would disperse its productive activities across all countries that serve as its market.
12. Which of the following is NOT true regarding the volume of world trade today?
More firms are engaging in outsourcing than before.
Economies of the world's nation-states are becoming more intertwined.
The world has become significantly wealthier since 1950.
The value of international trade in services is dropping.
13. Countries such as the U.S should not participate in free trade because it leads to a migration of jobs overseas and ultimately leads to lower living standards.
True
False