Test #1

Question 1

What’s globalization?

Answer 1

Trend away from distinct national economic units and toward one huge global market.

Question 2

Define globalization of markets?

Answer 2

Shifting from isolated national markets to a unified global market.

Question 3

What is globalization of production?

Answer 3

Firms spreading production globally to optimize cost and quality.

Question 4

Define factors of production? (5)

Answer 4

Factors of production: labor, management, land, capital, technology.

Question 5

General Agreement on Tariffs and Trade (GATT)

Answer 5

Treaty reducing trade barriers, leading to the WTO.

Question 6

World Trade Organization (WTO)

Answer 6

WTO, successor to GATT after the Uruguay Round.

Question 7

International Monetary Fund (IMF)

Answer 7

International institution set up to maintain order in the international monetary system.

Question 8

What is the World Bank?

Answer 8

International institution set up to promote general economic development in the world’s poorer nations.

Question 9

Define United Nations (UN)?

Answer 9

UN, a 193-nation organization founded in 1945 for peace and cooperation.

Question 10

Group of Twenty (G20)

Answer 10

G20, formed in 1999, includes finance leaders from 19 major economies, the EU, and the ECB.

Question 11

What’s an international trade?

Answer 11

A firm exports goods or services to consumers in another country.

Question 12

Define foreign direct investment (FDI)

Answer 12

Direct investment in business operations in a foreign country.

Question 13

What is the Moore’s law?

Answer 13

The power of microprocessor technology doubles and its costs of production fall in half every 18 months.

Question 14

Define outward stock of FDI.

Answer 14

Foreign assets held by firms outside their home country.

Question 15

What are multinational enterprise (MNE)?

Answer 15

A firm that owns business operations in more than one country.

Question 16

What’s international business?

Answer 16

Any firm that engages in international trade or investment.

Question 17

Define the term political economy?

Answer 17

The political, economic, and legal systems of a country.

Question 18

What are political system?

Answer 18

System of government in a nation.

Question 19

Define the term collectivism.

Answer 19

A political system that emphasizes collective goals as opposed to individual goals.

Question 20

Who are the socialists?

Answer 20

Those who believe in public ownership of the means of production for the common good of society. (Karl Marx)

Question 21

Who are the communists?

Answer 21

Those who believe socialism can be achieved only through revolution and totalitarian dictatorship.

Question 22

What are the social democrats?

Answer 22

Those committed to achieving socialism by democratic means.

Question 23

What is privatization?

Answer 23

The sale of state-owned enterprises to private investors.

Question 24

What is the belief of individualism?

Answer 24

An emphasis on the importance of guaranteeing individual freedom and self-expression.

Question 25

What is a democracy?

Answer 25

Democracy, where government is by the people or elected representatives.

Question 26

Tell me about totalitarianism.

Answer 26

Totalitarianism, where one party or leader has absolute control, and opposition is banned.

Question 27

What is a representative democracy?

Answer 27

Political system in which citizens periodically elect individuals to represent them in government.

Question 28

Define the communist totalitarianism.

Answer 28

A version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship.

Question 29

What is theocratic totalitarianism?

Answer 29

Theocracy, where power is held by religious leaders or governed by religious principles.

Question 30

Define tribal totalitarianism.

Answer 30

Ethnocracy, where political power is controlled by a group representing a specific ethnic group.

Question 31

What is right-wing totalitarianism?

Answer 31

Authoritarianism, where economic freedom exists but political freedoms, like free speech, are restricted to prevent communism.

Question 32

What is a market economy?

Answer 32

Market economy, where supply and demand dictate production levels.

Question 33

Define command economy.

Answer 33

Planned economy, where the government determines resource allocation and production.

Question 34

What is a legal system?

Answer 34

Legal system, which regulates behavior and enforces laws for grievance resolution.

Question 35

Define the common law.

Answer 35

Common law, based on tradition, precedent, and custom.

Question 36

What is a civil law system?

Answer 36

A system of law based on a very detailed set of written laws and codes.

Question 37

Define theocratic law system.

Answer 37

A system of law based on religious teachings.

Question 38

Define a contract.

Answer 38

Contract, outlining the terms, rights, and obligations of an exchange.

Question 39

What is a contract law?

Answer 39

The body of law that governs contract enforcement.

Question 40

United Nations Convention on Contracts for the International Saleof Goods (CISG)

Answer 40

International commercial law, governing cross-border contracts between sellers and buyers.

Question 41

Define property rights.

Answer 41

Property rights, governing the use and income from a resource.

Question 42

What are private actions?

Answer 42

Property crime, involving theft, piracy, blackmail, and similar acts.

Question 43

What is a public action?

Answer 43

Corruption, where public officials extort resources or income from property holders.

Question 44

Foreign Corrupt Practices Act (FCPA)

Answer 44

Foreign Corrupt Practices Act (FCPA), regulating bribery and unethical conduct in international business.

Question 45

Define intellectual property.

Answer 45

Intellectual property, including ideas like books, music, and designs, protected by patents, copyrights, and trademarks.

Question 46

What is a patent?

Answer 46

Patent, granting exclusive rights to an inventor for their new product or process.

Question 47

Define copyrights.

Answer 47

Copyright, granting exclusive rights to authors, artists, and creators to control the distribution of their work.

Question 48

What are trademarks?

Answer 48

Trademarks, used to distinguish and identify products or services.

Question 49

World Intellectual Property Organization (WIPO)

Answer 49

International organization whose members sign treaties to agree to protect intellectual property.

Question 50

Paris Convention for the Protection of Industrial Property

Answer 50

International agreement to protect intellectual property.

Question 51

Define product safety laws.

Answer 51

Set certain safety standards to which a product must adhere.

Question 52

Define product liability.

Answer 52

Involves holding a firm and its officers responsible when a product causes injury, death, or damage.