Chapter 01 Globalization and International Linkages Answer Key

10 NAFTA is a free trade agreement between the United States, Canada and Mexico that has in essence removed all barriers to trade and investment between the three nations... Is the proce

Chapter 01 Globalization and International Linkages Answer Key

5. (p 10) NAFTA is a free trade agreement between the United States, Canada and Mexico that has

in essence removed all barriers to trade and investment between the three nations

10. (p 19) In recent years, Canadian firms have begun investing heavily in the United States

15. (p 21) One of the ways that Russia is attempting to get its economy going is by removing many administered prices and subsidies and letting free market forces take over

18. (p 20) MITI is a South Korean government agency that identifies and ranks national

commercial pursuits and guides the distribution of national resources to meet these goals

20. (p 21) Emerging markets are developed economies that exhibit sustained economic reform and growth

21. (p 4) The process of applying management concepts and techniques in a multinational

environment and adapting management practices to different economic, political and cultural environments is:

D Sales of at least one million dollars per year

Difficulty: Medium

23. (p 6) Globalization:

performed within the firm

C Is the process of social, political, economic, cultural and technological integration among

countries around the world

Difficulty: Medium

24. (p 6) Identify the statement that is false of globalization

integration among countries around the world

B It is the process of a business crossing national and cultural borders

26. (p 6) The process by which companies undertake some activities at offshore locations instead

of in their countries of origin is:

investment liberalization, that result in environmental and social damage

integrated global community that takes responsible measures to protect the environment

C Assert that if corporations are free to locate anywhere in the world, the world's poorest

countries will relax or eliminate environmental standards and social services in order to attract first-world investment and the jobs and wealth that come with it

more modern, environmentally friendly technology

Difficulty: Medium

28. (p 9) The global organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition and subsidies is the:

29. (p 10) A free-trade agreement between the United States, Canada and Mexico that has removed most barriers to trade and investment is:

A India and Brazil

B The "Development Round"

Difficulty: Easy

32. (p 10) The United States, Canada and Mexico make up the _, which in essence has

removed all barriers to trade between these countries and created a huge North American

market

C North American Free Trade Agreement

Difficulty: Medium

33. (p 11) Agreements like NAFTA and CAFTA:

A Not only reduce barriers to trade but also require additional domestic legal and business

reforms in developing nations to protect property rights

countries to upgrade their working conditions and environmental protections like the FTAA

domestic firm

encourages a lack of efficiency or incentive to monitor costs

Difficulty: Medium

34. (p 11) The NAFTA agreement and the DR-CAFTA agreement are examples of:

B Regional trade agreements

C Bilateral trade agreements

Difficulty: Medium

36. (p 12) The Asian economic block, made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Cambodia, Myanmar and Vietnam is referred to as:

A Association of Southeast Asian Nations (ASEAN)

Difficulty: Medium

37. (p 12) A method which adjusts GDP to account for different prices in countries is called:

D Purchasing power parity

Difficulty: Medium

38. (p 12) The following are characteristics of the BRIC economies except:

A Demand for higher priced goods is expected to continue to be low in the future

Difficulty: Medium

39. (p 12) The Goldman Sachs global economics team:

surpass the United States in output by 2035

B Reports that the economic potential of Brazil, Russia, India and China is such that they may

become among the four most dominant economies by the year 2050

to more than 70 percent in 2025

world's largest car market

41. (p 41) In 2009, global merchandise exports and global commercial services exports:

A Declined for the first time since 1983

43. (p 15) The emerging global community is becoming increasingly:

47. (p 19) Which country receives the most foreign direct investment (FDI) by U.S companies?

48. (p 18) Which of the following statements is false with regard to a mixed economy?

and the advancement of civil rights may raise the standard of living

subsidize costs and allow the firm to flourish

and the advancement of civil rights ensure that those who are elderly, sick or have limited skills are taken care of

D Businesses in this model are owned by the state to ensure that investments and practices are

done in the best interest of the nation despite the often opposing outcomes

Difficulty: Medium

49. (p 19) The following statements are true about the United States and Canada except:

A The legal and business environments of the two countries are very different

Difficulty: Hard

50. (p 19) Which of the following statements is true of the economic system of North America?

A The free-market-based economy of this region allows for more freedom in decision-making

processes of private firms

barriers for other countries to establish business

move into other countries

extend assistance to individuals or companies

53. (p 19) A factory, located in a Mexican border town, that imports materials and equipment on a duty and tariff-free basis for assembly or manufacturing and re-exports is called a:

55. (p 19) Identify the statement which is not true of Mexico

Latin America

C Mexico's trade with Asia is declining

Difficulty: Medium

56. (p 19) Which of the following observations about NAFTA is incorrect?

replacing goods that were previously purchased from Asia

lower-cost labor and proximity to the American market

C Mexican firms can now export goods into the European community only by paying a heavy

tariff

its overreliance on the U.S market

Difficulty: Medium

57. (p 24) A major development in South America is:

B The growth of inter-country trade, spurred on by the progress toward free-market policies

Difficulty: Medium

58. (p 24) A recent survey (reported in our textbook) of businesspeople from Argentina, Brazil, Chile, Columbia and Venezuela found that the _ market, on average, was more important to their economic well being than any other

59. (p 20) The ultimate objective of the EU is to:

B Eliminate all trade barriers among member countries

Difficulty: Medium

60. (p 20) The European Union:

A Has achieved the reality of a single currency and a regional central bank

61. (p 21) The Central and Eastern European republics:

free-market policies

C Are attempting to make a shift from centrally planned economies to market based economies

Difficulty: Medium

62. (p 22) The former communist countries that have become most visible in the international arena include:

D Poland, Hungary and the Czech Republic

Difficulty: Medium

63. (p 22) Which of the following statements is true with regard to the economy of Poland?

new speed-based economy

coverage

D Political instability and risk, large external debts, a deteriorating infrastructure and only

modest education levels have led to continuing economic problems in Poland

Difficulty: Medium

64. (p 22) Which of the following statements is not true of Hungary's economic reform measures?

attracted by the low cost of highly skilled, professional labor

C Hungary had a head start on the other former communist-bloc countries in terms of adopting

economic reform measures

purchase of Tungsram

Difficulty: Medium

65. (p 20) Which of the following statements is not true of Japan?

and they recognized as the world leaders in manufacturing and consumer goods

some of the former strengths have become weaknesses in the new economy

D Japan's consensus decision making system turns out to be very efficient and effective in the

new speed-based economy

Difficulty: Medium

66. (p 20) An organizational arrangement in Japan in which a large group of vertically integrated companies bound together by cross-ownership, interlocking directorates and social ties provide goods and services to end users is:

A South Korea, Hong Kong, Singapore and Taiwan

Difficulty: Medium

70. (p 22) Identify the statement false of China's economic condition

concerns that the Chinese government has been unable to tap the breaks on this rapid growth

C Trade relations between China and developed countries and regions, such as the United States

and the EU, are lax

major challenges faced by China

72. (p 24) Which of the following is true of India today?

74. (p 28) Identify the emerging market which is projected to have the largest market size in 2010

3. (p 36) The domestic and international political environment has a major impact on multinational corporations

5. (p 38) Great Britain's Labour Party practices "democratic socialism"

TRUE

Difficulty: Medium

6. (p 38) According to the text, Russia presents the extreme example of how the political

environment impacts on international management

8. (p 42) Socialist law comes from the Marxist socialist system and continues to influence

regulations in former communist countries

TRUE

Difficulty: Medium

9. (p 42) Common law is derived from Roman law and is found in the Islamic and

non-socialist countries such as France, some countries in Latin America and even Louisiana in the United States

FALSE

Difficulty: Medium

10. (p 42) The territoriality principle holds that governments have the right to rule themselves as they see fit

13. (p 43) Under the act of state doctrine, all acts of other governments are considered to be valid

by U.S courts, even if such acts are inappropriate in the United States

TRUE

Difficulty: Medium

14. (p 43) The FCPA makes it illegal to influence foreign officials through the granting of

favorable tariff rates

FALSE

Difficulty: Easy

15. (p 43) The objectives of the FCPA were to stop U.S MNCs from initiating or perpetuating corruption in foreign governments and to upgrade the image of both the United States and its businesses abroad

17. (p 48) Trade agreements do not require that trade benefits accorded to one nation be extended

to other nations' parties to that agreement

20. (p 55) Technology does not have the potential to displace employees holding positions traditionally reserved for human thinking

24. (p 37) Which two countries led the effort to mobilize public and private support for Greece in 2010?

A France and Germany

27. (p 40) Governmental power in a democracy is limited by:

A The accountability of the elected representatives to the general public

Difficulty: Hard

28. (p 40) Political repression and denial of rights and civil liberties are dominant ideals of:

29. (p 40) The totalitarian form of government is to be seen in:

D Vietnam, Cuba and North Korea

C Market growth opportunities

Difficulty: Medium

32. (p 41) Sentiments regarding the war in Iraq have primarily affected business relationships in:

A The Middle East

Difficulty: Hard

33. (p 42) _ law comes from the Marxist socialist system and continues to influence

regulations in former communist countries, especially those from the former Soviet Union, as well as present-day China, Vietnam, North Korea and Cuba

35. (p 42) Identify from the following the correct statement on civil law

C It is derived from Roman law and is found in nonsocialist countries

Zealand and other nations

Difficulty: Medium

36. (p 42) The _ holds that governments have the right to rule themselves as they see fit

37. (p 42) International law includes the following types of jurisdictional principles:

A Nationality, territoriality and protective

40. (p 43) The _ principle holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country

41. (p 43) The _ holds that there must be mutual respect for the laws, institutions and

government of other countries in the matter of jurisdiction over their own citizens

A Act of state doctrine

Difficulty: Medium

44. (p 43) Countries have the legal right to refuse admission of foreign citizens and to impose

special restrictions on the following except:

45. (p 43) The statute that makes it illegal to influence foreign officials through personal payment

of political contributions is referred to as the:

B Foreign Corrupt Practices Act

Difficulty: Easy

46. (p 45) Critics of the Foreign Corrupt Practices Act feared the loss of sales to foreign

competitors, especially in those countries where:

D Bribery is an accepted means

Difficulty: Easy

47. (p 45) It was reported that since the passage of the Foreign Corrupt Practices Act (FCPA):

D U.S exports to "bribe prone" countries actually increased

Difficulty: Medium

48. (p 45) One analysis, cited in the text, reported that since the passage of the Foreign Corrupt Practices act, U.S exports to "bribe prone" countries:

50. (p 45) According to the text, _ is one of the biggest problems facing MNCs

D Very restrictive foreign bureaucracies

Difficulty: Medium

51. (p 46) Japanese companies are aware that their dependency on the world market for many goods and services is negatively impacted by _, resulting in local consumers paying the price

52. (p 46) Which country does not rank high on the ease-of-doing-business index?

C Global connections do not necessarily level the playing field

56. (p 53) The area of e-business that will most affect global customers is:

B It is quick and relatively inexpensive to install

60. (p 54) MNCs are unwilling to put up high investments unless they are assured of:

A Operating control on their investment in telecommunications

Difficulty: Medium

61. (p 52) Governments are accepting the belief that the only way to attract foreign investment and know-how in telecommunications is to:

A Cede control to private industry

Difficulty: Medium

62. (p 54) According to the text, NYNEX holds a stake in:

B Thailand's Telecom Asia

C Considerable increase in investment

Difficulty: Easy

64. (p 54) Some observers have noted that technology already has eliminated much and in the future will eliminate even more of the work now being done by:

B Middle managers and white-collar staff

Difficulty: Medium

65. (p 54) _ has placed pressure on MNCs to outsource production

A Mounting cost pressure and profit expectations

Difficulty: Medium

66. (p 55) Identify the option that would constitute white-collar service industries

68. (p 55) MNCs have moved certain production activities overseas to capitalize on:

A Decline in the cost of doing business worldwide

Chapter 03 Ethics and Social Responsibility Answer Key

2. (p 63) Kantian philosophical traditions focus on core, individual behaviors and actions and how they express and form individual character

5. (p 66) Although French women are making strides in the management ranks, they still are underrepresented in corporate management

7. (p 76) The Foreign Corrupt Practices Act makes it illegal for U.S companies and their managers

to attempt to influence foreign officials through personal payments or political contributions

TRUE

Difficulty: Easy

8. (p 71) Corporate social responsibility includes organizational actions that go beyond the

requirements of the law and the direct interests of the firm

TRUE

Difficulty: Easy

9. (p 74) Sustainability may be defined as the development that meets humanity's needs at the cost

of the future generations

FALSE

Difficulty: Medium