BUSI 303 Exam 1

Question 1
2.5 out of 2.5 points

A centrally planned economy most often refers to an economic system that is under comprehensive control and regulation by a government in accordance with the plan of economic development. Answer

Selected Answer: True

Question 2
0 out of 2.5 points

The current account, sometimes called the financial account, is the sum of every nation's gross income from trade in goods and services. Answer

Selected Answer: True

Question 3
2.5 out of 2.5 points

The individualism dimension speaks to the extent that people place their own needs and their family above everyone else. Answer

Selected Answer: True

Question 4
0 out of 2.5 points

The Industrial Revolution was characterized by a marked surge in manufacturing techniques that included: mass assembly, electricity, and new forms of propulsion. Answer

Selected Answer: [None Given]

Question 5
2.5 out of 2.5 points

A trade deficit occurs when a country is exporting more than it is importing. Answer

Selected Answer: False

Question 6
2.5 out of 2.5 points

Gross Domestic Product is the total market value of all the goods and services produced by a nation during a specified period. Answer

Selected Answer: False

Question 7
2.5 out of 2.5 points

John Locke first proposed the theory of absolute advantage in 1776. Answer

Selected Answer: False

Question 8
2.5 out of 2.5 points

Successful FDI decreases employment and the standard of living for nationals in the host country. Answer

Selected Answer: False

Question 9
2.5 out of 2.5 points

The Foreign Corrupt Practices Act of 1977 makes it illegal to influence foreign officials through personal payment. Answer

Selected Answer: True

Question 10
0 out of 2.5 points

The American model has kept unemployment high, increased prices, and creased an environment that fosters change in how the economy functions. Answer

Selected Answer: True

Question 11
2.5 out of 2.5 points

Countries with high GNP, score high on measures of welfare and life expectancy. Answer

Selected Answer: True

Question 12
0 out of 2.5 points

If foreign ownership decreases faster than domestic ownership then the country is said to have capital account surplus. Answer

Selected Answer: True

Question 13
0 out of 2.5 points

Certain industries should not be modeled using the perfect competition assumption according to the new trade theory. Answer

Selected Answer: False

Question 14
2.5 out of 2.5 points

Words have the same meaning across all languages. Answer

Selected Answer: False

Question 15
0 out of 2.5 points

"Targeted Globalization" explains the phenomenon that the globalization of a product or service is more likely to succeed when that product or service is adapted specifically to each locality or culture to which it is marketed. Answer

Selected Answer: True

Question 16
2.5 out of 2.5 points

A mixed economy is an economic system that allows for the simultaneous operation of publicly and privately owned enterprises. Answer

Selected Answer: True

Question 17
2.5 out of 2.5 points

The World Trade Organization (WTO), deals with the rules of trade between nations at a global or near-global level. The foundation for the rules in the WTO originated in the GATT. Answer

Selected Answer: True

Question 18
2.5 out of 2.5 points

The introduction of the Euro has significantly reduced the burdens previously associated with foreign currency exchange in this region. Answer

Selected Answer: True

Question 19
0 out of 2.5 points

An ethnocentric multinational corporation (MNC) is one in which the company considers very carefully the cultures of the countries that it operates in when making business decisions. Answer

Selected Answer: True

Question 20
2.5 out of 2.5 points

Fons Trompenaar believed that culture generally proved to be indistinguishable from one to the other. Answer

Selected Answer: False

Question 21
0 out of 2.5 points

Verbal communication includes body language. Answer

Selected Answer: True

Question 22
0 out of 2.5 points

Outsourcing production to foreign firms makes it possible for the domestic firm to maximize production and efficiency; however, it results in higher product prices for the consumer. Answer

Selected Answer: True

Question 23
2.5 out of 2.5 points

An economic policy whereby governments accumulate wealth in the form of gold bouillon is mercantilism. Answer

Selected Answer: True

Question 24
2.5 out of 2.5 points

Subsidies are special privileges that governments provide to the businesses in order to attract them to a region or simply to have funds required to operate successfully. Answer

Selected Answer: True

Question 25
2.5 out of 2.5 points

A multinational corporation is one that delivers services in at least 1 country. Answer

Selected Answer: False

Question 26
2.5 out of 2.5 points

One of the major strengths of the U.S. economic model is the “competition is good” ideology. Answer

Selected Answer: True

Question 27
2.5 out of 2.5 points

Proper business etiquette is of little concern to the business manager starting a new job in foreign place. Answer

Selected Answer: False

Question 28
0 out of 2.5 points

Competitive advantage occurs when a nation is able to produce more of an output than any other nation. Answer

Selected Answer: True

Question 29
2.5 out of 2.5 points

Globalization involves the blending and merging of various cultures. Therefore, this involvement is known as assimilation. Answer

Selected Answer: False

Question 30
2.5 out of 2.5 points

Ethics is doing what feels good regardless of moral duty and obligation. Answer

Selected Answer: False

Question 31
0 out of 2.5 points

Globalization is a relatively new paradigm. Answer

Selected Answer: True

Question 32
2.5 out of 2.5 points

Low context communication is effective in most of the USA. Answer

Selected Answer: True

Question 33
2.5 out of 2.5 points

Labor and production cost are typically lower in less developed nations creating a continual pull for international corporations. Answer

Selected Answer: True

Question 34
2.5 out of 2.5 points

The Export-Import Bank is the official export credit agency of the European Union. Answer

Selected Answer: False

Question 35
2.5 out of 2.5 points

Ownership risk is defined by the Bank for International Settlement (BIS) as, “the risk of loss resulting from inadequate or failed internal process, people and systems or from external events”. Answer

Selected Answer: False

Question 36
2.5 out of 2.5 points

International trade serves as the foundation for the new global economy. Answer

Selected Answer: True

Question 37
2.5 out of 2.5 points

Education and experience are both necessary components in handling the complex tasks of managing a global business. Answer

Selected Answer: True

Question 38
2.5 out of 2.5 points

The three primary types of global economic systems are centrally planned economy, market economy and market growth economy. Answer

Selected Answer: False

Question 39
2.5 out of 2.5 points

A tariff is a tax applied to selected categories of imports. Answer

Selected Answer: True

Question 40
2.5 out of 2.5 points

Embargoes are economic and trade sanctions against target foreign countries, groups, organizations, and individuals. Answer

Selected Answer: True

Wednesday, June 20, 2012 1:45:12 AM EDT