Scenario: Not-So-Free Freeland
Freeland is a semi-closed economy whose government believes in protecting national
identity and building a self-sustained economy. The government’s priority is to protect
local jobs and provide opportunities to Freeland’s emerging industries to flourish
without the threat of external competition. Freeland’s efforts to provide opportunities to
its emerging industries is an example of its ________.
A) political motive
B) economic motive
C) cultural motive
D) social motive
Donna Bader, Globalization opponent
Donna Bader spent her final year at college studying the effect of various economic
factors on the economy of developing nations. Based on the results of her study, she
concluded that globalization does these countries more harm than good.
Which of the following statements, if true, strengthens Donna’s argument?
A) People in low-wage nations have a high mortality rate and no access to healthcare
facilities.
B) Because of the increase in employment opportunities, workers from developing
countries flock to developed countries.
C) Low-wage nations tend to have poorly developed transport and communication
systems.
D) Many companies take advantage of lenient labor laws by setting up facilities in
low-income countries.
A(n) ________ opportunity helps in buying a product in one country and selling it in
another country where it has a higher value.
A) barter
B) buyback
C) countertrade
D) arbitrage
Which of the following refers to a written statement of why a company exists and what
it plans to accomplish?
A) memorandum of association
B) mission statement
C) vision statement
D) articles of association
Which of the following is the main cultural motive behind government intervention in
trade?
A) promotion of strategic trade policies
B) protection of jobs
C) protection of national identity
D) protection of young industries from competition
Scenario: Stephanie Wong
Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on
strategies for business expansions into China. Wong is to lead a symposium for small
and mid-sized exporters who are planning on expanding their businesses in China.
Therefore, she is preparing answers in advance for questions that symposium
participants would most likely ask. Developing nations have the toughest product
liability laws, while developed countries have more relaxed laws.
Which of the following methods of cultural training involves the use of guerilla
linguistics?
A) cultural orientation
B) language training
C) cultural assimilation
D) cultural narcissism
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
Exports and imports of tourism and business consulting are included in the ________
account of a country’s balance of payments.
A) services
B) merchandise
C) capital
D) savings
Which of the following determines the process that a company will use to create its
product?
A) a firm’s multinational strategy
B) a firm’s global strategy
C) a firm’s corporate-level strategy
D) a firm’s business-level strategy
________ decision making disperses decisions to lower organizational levels, such as to
international subsidiaries.
A) Decentralized
B) Top-down
C) Authoritative
D) Top management
Nations having the poorest infrastructures and lowest personal incomes are called
________.
A) developed countries
B) newly industrialized countries
C) emerging markets
D) developing countries
Cultural change occurs when people integrate into their culture the gestures, material
objects, traditions, or concepts of another culture through ________.
A) ethnocentricism
B) cultural diffusion
C) social stratification
D) xenocentrism