Reference no: EM131002554

INTERNATIONAL BUSINESS

Quiz1

1) Ethnocentricity can be defined as the ________.

A) scientific description of individual human societies

B) systematic study of an ethnic group's religious core

C) merging of all ethnic practices into one homogeneous culture

D) belief that one's own ethnic group or culture is superior to that of others

 

2) Detailed knowledge about a culture that enables people to work happily and effectively within it is called ________.

A) cultural literacy

B) cultural imperialism

C) cultural diffusion

D) cultural divergence

 

3) Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture?

A) macroculture

B) subculture

C) cultural universal

D) monoculture

 

4) In ________ cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives.

A) individualist

B) high uncertainty avoidance

C) feminine

D) large power distance

.

 

5) Which of the following political ideologies states that every aspect of people's lives must be controlled for a nation's political system to be effective?

A) totalitarianism

B) capitalism

C) anarchism

D) pluralism

 

6) Under a(n) ________ political system, the state reigns supreme over institutions such as family, religion, business, and labor.

A) pluralistic

B) totalitarian

C) democratic

D) anarchist

 

 

 

7) ________ is the belief that both private and public groups play important roles in a nation's political activities.

A) Totalitarianism

B) Capitalism

C) Anarchism

D) Pluralism

 

 

8) ________ political systems include democracies, constitutional monarchies, and some aristocracies.

A) Totalitarian

B) Anarchist

C) Fascist

D) Pluralistic

 

 

9) Which of the following is a characteristic of totalitarian governments?

A) Political dissidents can oppose the government with no repercussions.

B) Citizens are guaranteed civil, property, and minority rights.

C) The means of production are owned by the people who use them.

D) Leaders rule without the explicit approval of the people.

 

10) A ________ is a political system in which a country's religious leaders serve as its political leaders.

A) democracy

B) theocracy

C) plutocracy

D) septocracy

 

11) Renzi belongs to a country in which religion governs all aspects of his life, whether personal or public. He has to abide by a strict, rigid, code that dictates everything from the clothes he wears to the food he eats. Breaking away from these traditions is not an option since religion plays an important role in the functioning of the nation. What political system prevails in his country?

A) communist totalitarianism

B) left-wing totalitarianism

C) right-wing totalitarianism

D) theocratic totalitarianism

 

12) ________ is a political system in which political leaders rely on military and bureaucratic power to support their rule.

A) Secular totalitarianism

B) Secular anarchism

C) Theocratic totalitarianism

D) Theocratic pluralism

 

13) Under ________ the government endorses private ownership of property and a market-based economy but grants little or no political freedom.

A) left-wing totalitarianism

B) theocratic totalitarianism

C) secular totalitarianism

D) right-wing totalitarianism

 

14) The ________ of a country is its gross national product divided by its population.

A) GNP per capita

B) GDP per capita

C) purchasing power parity

D) purchasing power

 

15) The relative ability of two countries' currencies to buy the same basket of goods in those two countries is called ________.

A) gross national product

B) gross domestic product

C) purchasing power

D) purchasing power parity

 

16) ________ is the value of goods and services that can be purchased with one unit of a country's currency.

A) Potential output

B) Gross national product

C) Purchasing power

D) Gross domestic product

 

17) An investor wants to invest in a country that has a high gross national income (GNI). Which of the following countries would most likely qualify as a prospect?

A) Nepal

B) India

C) Japan

D) Vietnam

 

18) Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

A) fiat money

B) letter of credit

C) barter

D) guanxi

 

19) ________ refers to the purchase, sale, or exchange of goods and services across national borders.

A) Domestic trade

B) Foreign direct investment

C) International trade

D) Mercantilism

 

20) The importance of trade for a nation can be measured by ________.

A) examining the amount of wealth acquired by the national government through restrictive trade policies

B) the living standards of people involved in only trade activities

C) the number of acquired territories the nation has that serves as sources of inexpensive raw materials

D) examining the volume of its trade relative to its total output

 

 

21) The smallest portion of the total world trade comprises trade between ________.

A) high-income and middle-income nations

B) low-income and middle-income nations

C) developed countries

D) First World member countries

 

 

22) The danger of trade dependency is that ________.

A) it often leads to the exploitation of developed countries

B) political turmoils in a country might affect all dependent countries

C) the countries involved in trade often get into rivalry over trade tariff issues

D) it is difficult to end trade activities with current trade partners and find new trade partners

 

23) The condition that results when the value of a nation's exports is greater than the value of its imports is called ________.

A) a trade deficit

B) a trade surplus

C) mercantilism

D) dumping

 

24) The condition that results when the value of a country's imports is greater than the value of its exports is called ________.

A) a trade deficit

B) economies of scale

C) a break-even point

D) absolute advantage

 

25) Which of the following is a political motive behind a government's intervention in trade?

A) promoting a strategic trade policy

B) gaining influence over other nations

C) protecting a country from unwanted cultural influence

D) protecting young industries from competition

 

26) Which of the following is true of government interventions in a country's trade practices?

A) A major economic motive behind government intervention in trade is the protection of jobs.

B) A major political motive behind government intervention in trade is the protection of infant industries.

C) Government interventions help companies take advantage of economies of scale and be the first movers in their industries.

D) Governments intervene to protect only imports, as the protection of exports is handled by private agencies.

 

27) Which of the following industries is typically protected for national security reasons?

A) agriculture

B) textile

C) automobile

D) housing

 

28) Which of the following do products designated as dual use require before exports can take place?

A) currency controls

B) countervailing duties

C) special government approval

D) local content requirements

 

29) Which of the following is an example of a dual use product?

A) a blowdryer

B) a GPS navigation device

C) a food processor

D) a vacuum cleaner

 

30) ________ refers to the unwanted cultural influence in a nation that can cause great distress and lead governments to block imports it believes to be harmful.

A) Cultural imperialism

B) Cultural protectionism

C) Dumping

D) Capitalism

 

31) Which of the following statements is true of local content requirements?

A) It is a strategy mainly used by developed nations.

B) This strategy enforces companies to locate their manufacturing facilities in their home countries.

C) Local content requirements hurt domestic producers through their effect on prices.

D) It forces companies from other countries to employ local resources in their production processes.

 

32) When a company exports a product at a price that is lower than the price normally charged in its domestic market or lower than the cost of production, it is said to be ________.

A) dumping

B) ringfencing

C) hoarding

D) cost-shifting

 

33) An additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy is called a(n) ________.

A) countervailing duty

B) ad valorem tariff

C) antidumping duty

D) compound tariff

 

34) Which of the following motives is least likely attributed to Freeland's restriction on free trade?

A) political motives

B) economic motives

C) social motives

D) cultural motives

 

35) Freeland's protection of its national identity is an example of a(n) ________.

A) political motive

B) economic motive

C) cultural motive

D) social motive

 

36) Which of the following motives illustrates Freeland's efforts to protect local jobs?

A) political motive

B) economic motive

C) cultural motive

D) social motive

 

 

37) Which of the following statements about representative democracies is true?

A) All citizens participate freely and actively in political processes.

B) Leaders of representative democracies can stay in power indefinitely.

C) Citizens elect individuals from political groups to act on their behalf.

D) Representative democracies across the world share identical features.

 

 

38) In a ________ government, the strongest political parties share power by dividing government responsibilities among themselves.

A) coalition

B) bilateral

C) totalitarian

D) theocratic

 

39) Democracies try to preserve peaceful coexistence among groups of people with diverse cultural, ethnic, and racial backgrounds. These rights are known as ________ rights.

A) indirect

B) central

C) subcapital

D) minority

 

40) The government maintains control over the banking industry in a country. Which of the following is most likely true if the country has a mixed economy?

A) Businesses in most economic sectors of the country are privately owned.

B) The government considers banking sector as important to national security.

C) The country has never experienced threats against its long-term stability.

D) The government views banking as more important than manufacturing.

 

41) Which of the following do governments impose upon people to help pay for the consequences of using a particular product?

A) income taxes

B) consumption taxes

C) property taxes

D) value-added taxes

 

42) Susan decides not to set up production facilities in Konesia because its business laws are vague and are often interpreted according to the convenience of the government. Bribery is a common feature in conducting business deals there and a refusal to pay up is not an option. What kind of government does Konesia have?

A) democratic

B) theocratic

C) totalitarian

D) pluralist

 

43) Susan also decides not to set up production facilities in Margazo, a country which functions by a strict set of religious tenets, because some of them contradict her company's work policy. Expecting potential employees to break away from these traditions is not an option since religion plays an important role in the functioning of the nation. What kind of political system prevails in Margazo?

A) pluralistic

B) theocracy

C) tribal totalitarian

D) democracy

 

44) ________ says that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports.

A) Absolute advantage theory

B) Factor proportions theory

C) Mercantilism

D) Communism

 

45) The measures of a nation's well-being other than the financial wealth accumulated through exports are irrelevant according to ________.

A) mercantilism

B) absolute advantage theory

C) factor proportions theory

D) new trade theory

 

46) Which of the following was a prominent mercantilist nation?

A) U.S.

B) China

C) Britain

D) Japan

 

47) One of the major pillars upon which the practice of mercantilism rested was ________.

A) economies of scale

B) pricing mechanism

C) excessive imports

D) trade surpluses

 

48) According to mercantilism, the accumulation of national wealth depended on the ________.

A) increase in a nation's trade surplus

B) increase in a nation's trade deficit

C) expansion of a nation's total value of trade

D) expansion of a nation's total volume of trade

 

49) Which of the following statements is incorrect with regard to the importance of colonies for mercantilist nations?

A) They served as sources of inexpensive raw materials.

B) They served as markets for higher-priced finished goods.

C) They served as a source of military protection.

D) They served as a source of profits for mercantilist powers.

 

50) Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

A) absolute advantage

B) comparative advantage

C) mercantilism

D) factor proportions