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Terms in this set (24)
A positive economic change from 1960 to 2018 was seen in the
share of world output accounted for by developing nations
One criticism of globalization is that falling trade barriers encourage companies to locate manufacturing activities in another country to take advantage of lower wage rates.
Totalitarian states usually have
Media that is heavily censored.
The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on
An unfavorable environment for innovations and entrepreneurship is the result of
State(gov) monopoly in production
As democracy has spread since the 1980s, so has the development of more ________ economies.
In a social context, the term values is used to describe the
ideas about what a group believes to be good, right, and desirable.
As Japan has become economically richer, there has been a decline in
_____ is the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumption in favor of decisions that have both good economic and social consequences.
Corporate Social Responsibility
Many of the ethical issues in international business are rooted in the fact that political systems, law, economic development, and culture vary significantly from nation to nation.
Which strategy is in a country's best interests, according to the main tenet of mercantilism?
Maintaining a trade surplus
Nikoli lives in New Salom which specializes in component parts, while its geographical neighbor, Durma specializes in heavy machinery. New Salom exports component parts to Durma, which in turn exports heavy machinery to New Salom. According to the theory of comparative advantage, this mutually beneficial trade relationship best illustrates
A positive-sum game
There are seven main instruments used in trade policy with _____ being the oldest and the simplest.
The group that benefits the most from receiving subsidies is
A computer manufacturing firm from the United States invests in a microprocessor manufacturing plant in Taiwan. This is an example of
Foreign direct investment
DiamondPlus Jewelers currently has $583,000 in foreign-owned assets. This represents the _____ of the company.
Stock of FDI
The European Parliament plays an important role in the European Union and creates a(n) _____ to coordinate the economic, social, and foreign policy of the member states.
The price of a bouquet of tulips in France is 4 euros. Jenna Algren, a frequent international traveler, found that a similar bouquet of tulips cost only 3 euros in Belgium. This demonstrates that the benefit of adopting the euro as a common currency is that it
Makes it easier to compare prices across europe
Traders at a stock exchange notice that five traders on the floor seem to be selling more yen and purchasing more euros because of an expected decline in the yen. As a result, all other traders started to do the same. This is an example of the ________ that creates a self-fulfilling prophecy when the yen does decline in value.
Last week, Saturn Tide a U.S.-based energy firm, entered into an agreement with another party to exchange currency and execute the deal in eighteen months. What is Saturn Tide using to insure itself against foreign exchange risk?
Hedging - forward exchange
How does the International Monetary Fund (IMF) provide loans to deficit-laden countries?
A pool of gold and other currencies contributed by its members, provides the resources for lending operations in times of need
Which situation poses the greatest problem for international businesses in the long run?
volatility of the global exchange rate regime
A localization strategy focuses on using mass production of product to meet general tastes and preferences.
Suggests that, firms should customize goods and services to fit local conditions.
The ________ refers to systematic reductions in production costs that have been observed to occur over the life of a product.
THIS SET IS OFTEN IN FOLDERS WITH...
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