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Flashcards in Quiz 1 Deck (45)
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1

As a result of globalization we have been moving toward a world in which nations economies are relatively self contained entities

False

2

By offering the same basic product worldwide firms help to create a global market

True

3

Mercantilism propagated in the sixteenth and seventeenth centuries advocated that countries should simultaneously encourages both imports and exports.

False

4

According to the theory of comparative advantage potential world production is greater with unrestricted free trade than it is with restricted trade.

True

5

Subsidies are are a trade policy instrument

True

6

Import Tariffs protect domestic producers against foreign competitors

True

7

Specific Tariffs are levied as a proportion of the value of the imported good

False

8

Ricardo's theory of comparative advantage is a major intellectual weapon for advocates of free trade because it provides a strong rationale for encouraging free trade

True

9

By lowering production costs subsidies help foreign competitors gain export markets

False

10

The term political economy is used to stress the fact that the political economic and legal systems of a country are independent of each other

False

11

Although mercantilism is an old and largely discredited doctrine its echoes remain in modern political debate and in the trade policies of many countries

True

12

Substantial impediments such as barriers to foreign direct investment make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe

True

13

Free Trade refers to a situation in which a government through quotas or duties attempts to influence what its citizens can buy from another country or what they can produce and sell to another country

True

14

The emphasis on individualism has led to the widespread diffusion of self managing work teams within Japanese organizations

False

15

In American society the high degree of social mobility and the extreme emphasis on individualism have resulted in the emergence of class consciousness

False

16

Political systems that emphasize collectivism tend to be democratic while political systems that place high value on individualism tend to be totalitarian

False

17

The WTO is seen as the lender of last resort to nation states whose economies are in turmoil and whose currencies are losing value against those of other nations

False

18

Plato did not equate collectivism with equality

True

19

The primary of the value of group identification encourages manager and workers to move from company to company.

False

20

Karl Marx advocated state ownership of the basic means of production, distribution and exchange (i.e Businesses)

True

21

There is a strict one to one correspondence between a society and a nation state

False

22

Rituals and symbols are the most visible manifestations of a culture and constitute outward expression of deeper values

True

23

the IMF is less controversial than its sister institution The World Bank

False

24

Values provide the context within which a society's norms are established and justified

True

25

Which of the following best illustrates the globalization of production?
A. Evan Swan a US based fashion designers is planning to open a flagship store in China to serve the Asian Market
B. Pizza Gallery an Italian pizza chain customizes its pizzas and pastas to suit the tastes of its American and Australian customers
C. Daily Diamonds Inc buys diamonds from South Africa and exports them to India for the cutting process
D.Uncle Crab a UK fast food chain has been serving customers worldwide through its franchises
E. Silver Unicorn Inc uses sales personnel from the respective host country to sell its products and services.

C. Daily Diamonds Inc buys diamonds from South Africa and exports them to India for the cutting process

26

Hindus see mobility between castes as something that can be achieved through:
A. individual economic achievements over the course of ones' lifetime
B. hard work that results in gradual upward mobility over generation
C. appropriate schooling and occupation
D. spiritual progression and reincarnation
E. offering prayer 5 times a day and by refraining from the payment of receipt of interest

D. spiritual progression and reincarnation

27

Why is retaliation by government intervention a risky strategy?
A. it encourages dumping foreign companies
B. it allows for domestic firms to make any investments by borrowing money from the domestic capital market
C. It allows firms to sell goods in the foreign markets at below their fair market value
D. It could result in increased tariff barriers by the country that is being pressured
E. It May expose certain industries that are important for national security to foreign competition

C. It allows firms to sell goods in the foreign markets at below their fair market value

28

Which of the following exemplifies violation of folkways best?
A. Stealing an authors or n inventors intellectual property
B. Murdering a business partner
C. Failing to greet a person you know
D. Practicing cannibalism under the belief that it leads to super powers
E. committing a financial fraud

C. Failing to greet a person you know

29

Which of the following is an argument against embracing strategic trade policy?
A. It hampers the abilities of the domestic firms to achieve a dominant position in the global industry
B. It hampers the chances of a country firms to effectively exploit the first mover advantages
C. Its certain to be captured by special interest groups within the economy which will distort it to their own ends
D. It leads to a compromise in national sovereignty
E. It increases the prices of the products for the domestic consumers

C. Its certain to be captured by special interest groups within the economy which will distort it to their own ends

30

The country of Cadmia which is a leading producer of bauxite had to impose trade sanction on Cerian soda cans in order to get the government of Ceria to enforce export restraints. This imposition by Cadmian government was undertaken to protect domestic producers of soda cans. Which of the following government intervention is being used by Cadmia?
A. Monompolization
B. Retaliation
C. Deregulation
D. Liberalization
E. Diversification

B Retaliation