Pax Americana, Latin for “American peace,” is the period of relative peace in the Western world since the end of World War II in 1945, which coincided with the dominant military and economic position of the U.S.
Through ( ), the domestic firm is able to focus its resources on areas in which it maintains a distinct competitive advantage, such as service offerings or research and development.
( ) and ( ) consistently rank as two of the leading suppliers to the United States, making up over 25 percent of total trade to the U.S.
Market factors are the ( ), ( ), and ( ) that vary from one region to another.
( ) occurs when a firm expands its business into different products that are not similar to current lines.
United States imports primarily come from the following countries: China, Canada, Mexico, and Germany.
( ), increasing market audience, receiving foreign direct investment are reasons international trade is important to the United States.
The Industrial Revolution technically could be traced to the invention of the telephone and the telegraph in the late 1800s, it rose to the forefront in the early 1970s with the advent of the microprocessor.
Foreign direct investment allows domestic firms to receive capital financing from foreign entities.
( ) is the information that a candidate possesses in the area of given disciplines.
Modern trade history began with the exploration of the Western Hemisphere by ( ) in 1492.
Africa was one of the oldest examples of an international trading community.
Foreign direct investment is an attractive option for firms looking to diversify their investment portfolios and creating opportunities for firms looking to enter emerging markets.
ISO standards are designed to be implemented worldwide.
The global business manager must possess a strong international awareness and must understand the unique factors that contribute to the success of a global business, including formal education.
There is no notable difference in the way a nation conducts business versus the way a large corporation conducts business.
Taiwan has emerged as a cost-leading manufacturer of products ranging from consumer goods to industrial equipment.
( ) has emerged as a cost-leading manufacturer of products ranging from consumer goods to industrial equipment.
Transparency International provides guidelines for organizations wishing to develop anticorruption programs.
Low context culture refers to societies or groups where people have close connections over a long period of time.
A low individualism ranking typifies societies of a more collective nature with close ties between individuals.
A high uncertainty avoidance ranking indicates that the country has a high tolerance for uncertainty and ambiguity.
In a neutral culture, people do not object to a display of emotions.
Business ethics should be considered a separate disciple from ethics.
Three branches of Judaism circulate that form the framework for the type of lifestyle and beliefs of Jewish individuals include all of the following except:
People in particularistic cultures share the belief that general rules, codes, values and standards take precedence over particular needs and claims of friends and relations.
An ( ) status is one that society assigns to an individual on the basis of factors over which the individual has no control: gender, race, ethnic background, and socioeconomic status, into which one is born.
( ), discrimination, proselytizing, and ( ) are other means whereby ethnocentrism expresses itself.
One of the most important issues global business professionals may face is that of being ( ) in the cultures in which they choose to do business.
A high power distance ranking indicates that inequalities of power and wealth are present within a society.
Unlike most other religions Buddhism has no real founder, no written scriptures, no body of religious law, and a very loosely-organized priesthood.
Low-context culture refers to societies where people tend to have many connections of shorter duration.
( ) focuses on the degree to which the society reinforces individual or collective achievement and interpersonal relationships.
Primary groups often involve small or large numbers of individuals, are task oriented, and are characterized by impersonal and formal interaction.
Polycentric managers believe that home-country nationals are more intelligent, reliable, and trustworthy than foreign nationals.
Primary social groups tend to involve small numbers of individuals and are characterized by intimate and informal interaction.
( ) people especially value the satisfactory completion of interactions with others.
Administrative delays do not provide any extra revenue to the nation that imposes the delay—they do not bring in any extra revenue aside from the standard tariff.
The Foreign-Trade Zones (FTZ) program alleviates some of the costs associated with free trade in the rapidly increasing global economic environment.
Due to the numerous religions in the world, (e.g.such as Christianity, Islam, Buddhism, and Hinduism), nations find difficulty coming to agreements over theocratic laws.
Nationalism converts ownership from ( ) to ( ) control.
( ) protect individuals who are in the process of creating a new invention.
The classification of nations are grouped into the following categories:
The following are the three categories of laws that govern the conducting of business within a nation’s borders except for:
Which of the following is one of the political issues that significantly impact global business:
Tariffs are economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals.
Expropriation is the seizure of private property for the public treasury.
In a centrally planned economy, an overriding hierarchy (usually the government) attempts to control supply, demand, production, distribution, and pricing.
The United States designated certain areas ( ) where commercial merchandise would receive the same customs treatment it would if it were outside the commerce of the United States.
Corruption has been identified by several international organizations as the greatest single barrier to economic development worldwide.
The Human Resource Report includes a number of human development indicators that provide a global assessment of country achievements in different areas of human development.
Governments use quotas, also known as quantitative restrictions, to limit the quantity of imports allowed into a nation.
Governments design ( ), which they normally impose as a ( ) percentage of the value of imports, to discriminate against selected imports by raising the price of imports relative to domestic prices for the same products.
If the quota is extremely low or if a tariff is unreasonably high, ( ) may attempt to push goods through a country’s borders without paying the proper taxes.
GNP does not take into account several key factors. Which of the following is not one of the factors:
( ) is based on the idea that changes in exchange rates should balance the price of a basket of traded goods in a foreign country.
Ownership in foreign entities can be a complete or a controlling stake in the form of either a wholly owned subsidiary or through mergers and acquisitions of existing corporations.
While no standard percentage of ownership exists, most nations consider the threshold for foreign direct investment to be within the range of ( ) percent.
At stage two in the international product life cycle, corporations are able to leverage economies of scale through investment in specialized equipment that will facilitate production processes able to make use of cheaper, low-skill labor resources abundantly available in less developed nations.
The presupposition of Absolute Advantage and Comparative Advantage is that differences in ( ) determine patterns of international trade.
The WTO encourages trading under the guiding principle of trading fairly by treating other nations equally under the concept of ( ) status.
A nation is said to have an absolute advantage when it is able to produce more output than any other nation.
If domestic ownership of foreign assets increases faster than foreign ownership of domestic assets, then the country has a capital account deficit.
( ) income from abroad corresponds to a debit in the current account.
Tariffs are the foundation for a common understanding of the rules governing trade.
Foreign Direct Investment can also take place by injecting ( ) dollars into the economy of a given country.
Recent ( ) industry growth reports highlight that the ( ) industry is growing at roughly three times the rate of the rest of the private sector.
A guiding principle of the ideal global trading system is transparency between trading partners, when partners do not prefer domestic products, services, people, or the products of their trading partners over others.
In order to achieve an economic advantage, a nation should specialize, produce, and export only those products where the nation holds an ( ).
If the goal is complete ownership in a foreign entity, the next business decision is to ( ).
An assumption of the Comparative Advantage Theory is that perfect knowledge does not exists in that merchants and customer do not know where the least-cost goods are located.
Porter’s Diamond has four determinants that indicate the level of competitiveness of a national industry. Which of the following are NOT one of the four?
( ) agreements guide the trading conduct of nations that may not have similar legal foundations or business customs.
( ) seeks to determine how one should proceed in trade if the goal was to maximize world production (the goods and services available to citizens of each country).
If foreign ownership decreases faster than domestic ownership, then the country is said to have a capital account surplus.