Final Exam (Part 1)

Question 1

________ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

Answer 1

D. Globalization

Question 2

Globalization is characterized by ________.

Answer 2

A. national boundaries becoming less relevant

Question 3

The population of a(n) ________ market is mostly rural and is characterized by poor infrastructure with little credit or collateral.

Answer 3

D. traditional

Question 4

________ are all goods and services sold abroad and sent out of a country.

Answer 4

C. Exports

Question 5

The three main goals of the World Trade Organization (WTO) are to help the free flow of trade, help negotiate the further opening of markets, and ________.

Answer 5

D. settle trade disputes between its members

Question 6

Which of the following refers to the use of computer networks to purchase, sell, or exchange products; service customers; and collaborate with partners?

Answer 6

D. e-commerce

Question 7

The rise of a new international entity called the ________ suggests that any company, regardless of age, experience, and resources, can engage in international business.

Answer 7

B. born global firm

Question 8

A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a ________.

Answer 8

B. multinational corporation

Question 9

Konesia is a country in which rising incomes are increasing the global demand for basic products and services. Which of the following is the type of market featured in this country?

Answer 9

D. emerging market

Question 10

________ place limits on the quantity of a product being imported.

Answer 10

D. Nontariff barriers

Question 11

The ________ replaced the institution of GATT while retaining all of the former GATT agreements.

Answer 11

C. World Trade Organization

Question 12

The purpose of the General Agreement on Tariffs and Trade (GATT) was to ________.

Answer 12

D. promote free trade

Question 13

An established consumer market that primarily comprises the middle class and possesses efficient infrastructure is characteristic of ________ markets.

Answer 13

C. developed

Question 14

Goods and services purchased abroad and brought into a country are called ________.

Answer 14

B. imports

Question 15

Any commercial transaction that crosses the borders of two or more nations is known as ________.

Answer 15

A. international business

Question 16

Which of the following terms is defined as the set of values, beliefs, rules, and institutions held by a specific group of people?

Answer 16

D. culture

Question 17

Ethnocentricity can be defined as the ________.

Answer 17

A. belief that one’s own ethnic group or culture is superior to that of others

Question 18

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

Answer 18

C. cultural literacy

Question 19

The Toro-Hessians are a minority group in the Margoza Archipelago, with a set of preferences, attitudes, and taboos, distinct from that of the national culture. Therefore, they are often overlooked when foreign businesses choose to customize their products for the inhabitants of the islands. The Toro-Hessian community is an example of ________.

Answer 19

B. subculture

Question 20

Which of the following is a cultural component that implies gauging the beauty and appeal of artwork?

Answer 20

B. aesthetics

Question 21

Which of the following terms is used to refer to the ideas, beliefs, and customs to which people are emotionally attached?

Answer 21

B. values

Question 22

Cultural change occurs when people integrate into their culture the gestures, material objects, traditions, or concepts of another culture through ________.

Answer 22

B. cultural diffusion

Question 23

A folk custom can be defined as ________.

Answer 23

D. behavior, often dating back several generations, that is practiced by a homogeneous group of people

Question 24

Mika finds that he has very little control over several aspects of his life. Whether his education or occupation, the few options available to him are determined by his birth. Which of the following is a characteristic of Mika’s society?

Answer 24

A. Mika belongs to a society in which there is little scope for mobility.

Question 25

Which of the following terms is used to refer to the departure of highly educated people from one profession, geographic region, or nation to another?

Answer 25

B. brain drain

Question 26

In which of the following systems is land, factories, and other economic resources equally split between private and government ownership?

Answer 26

D. mixed economy

Question 27

France, Germany, and Sweden are examples of ________.

Answer 27

A. mixed economies

Question 28

The selling of government-owned economic resources to private operators is called ________.

Answer 28

C. privatization

Question 29

In a market economy, economy-related decisions are determined by the interactions between ________.

Answer 29

D. supply and demand

Question 30

Assuming insects destroyed most of the coffee crops in key coffee-producing countries worldwide, which of the following would most likely occur within the coffee market?

Answer 30

D. Coffee prices would increase.

Question 31

Laissez-faire economics refers to ________.

Answer 31

D. less government interference in commerce and greater individual economic freedom

Question 32

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

Answer 32

D. theocracy

Question 33

A ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives.

Answer 33

D. democracy

Question 34

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?

Answer 34

C. totalitarianism

Question 35

Central planning is rooted in the ideology that ________.

Answer 35

C. the welfare of a group is more important than individual well-being

Question 36

The segment of the economic environment comprising independently owned firms that seek to earn profits is called the ________.

Answer 36

C. private sector

Question 37

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses?

Answer 37

D. capitalism

Question 38

In a market economy, access to alternative purchase options is known as ________.

Answer 38

A. free choice

Question 39

________ is the belief that only individuals and private groups should control a nation’s political activities.

Answer 39

B. Anarchism

Question 40

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

Answer 40

D. Pluralism