MC Study Elimination

docx

School

Trinity Western University *

*We aren’t endorsed by this school

Course

6031

Subject

Economics

Date

Jan 9, 2024

Type

docx

Pages

Uploaded by GeneralCamel1751

1 Suppose Petro Canada, an international oil company, had a complaint about a trade issue. The __________, a governing body established at the Uruguay Round in 1993 to police the international trading system, is an organization that Petro Canada could take its complaint to. World Trade Organization The Web is viewed as a global what? equalizer The agency established at the 1993 Uruguay Round to police the international trading system is the __________. World Trade Organization General Electric Corporation has productive activities in a number of countries. As a result, it would be appropriate to refer to General Electric as a __________ corporation. multinational Under the umbrella of GATT there have been eight rounds of negotiations among member states. The _______ was the most recent round of negotiations. Uruguay Round Since the 1960s, there have been two notable trends in the demographics of the multinational enterprise. These two trends have been: the rise of non-U.S. multinationals and the growth of mini-multinationals What is the primary purpose of the World Trade Organization? arbitrate of trade disputes The relative decline of the developed countries' share of world output _________________. reflects the growing economic and industrial strength of developing countries. _______ are the two macro factors that seem to underlie the trend toward greater globalization. The decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and technological change After World War II, the West committed to removing trade barriers between nations because of what experience? retaliatory trade policies leading to the Depression Which of the following is a major cause for lowering the trade barriers of markets and production? Technological change The International Monetary Fund (IMF) is often seen as the leader of last resort to nation states whose economies are in economic turmoil. True The International Monetary Fund and the World Bank were both created in 1944 by 44 nations that met at Bretton Woods, New Hampshire. True Critics use the following argument to suggest that globalization is a contributing factor to an increase in pollution. firms that operate in countries that have adequate pollution regulations have a tendency to move their manufacturing operations to countries that have less stringent or no pollution controls to avoid the cost of regulation Throughout the 1990s, the amount of investment directed at both developed and developing nations did what? increased What country's share of world output went from almost nothing in 1960 to 10.8% in 2012? China The __________ is a treaty designed to remove barriers to the free flow of goods, services, and capital between nations. General Agreement on Tariffs and Trade Outsourcing has even extended to the Canadian _______ industry. services Free trade agreements can be tied to tougher environmental and labour laws. True

2 The _______ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire. International Monetary Fund If we look into the future, most forecasts now predict a __________ in world output accounted for by developing nations such as China, India, Indonesia, and South Korea, and a __________ in the share enjoyed by rich industrialized countries such as Britain, Japan, and the United States. rapid rise; rapid decline Which of the following is an example of a developing nation? Thailand Among developing nations, the largest recipient of foreign direct investment has been which country? China Supranational organizations such as the WTO are criticized for focusing on economics and not on democracy and environmental responsibility. In the past decades, many countries, in addition to reducing trade barriers, have done what? removed restrictions to FDI According to our textbook, the growing integration of the world economy is: increasing the intensity of competition within the home market of a company in a wide range of manufacturing and service industries What was created at the same time as the International Monetary Fund? World Bank Many of tomorrow's economic opportunities may be found in the developing nations of the world. True Over the past fifty years, who dominated the world trade picture? The United States The volume of goods, services and investment crossing national borders expanded faster than did world output every year during the last two decades of the 20th century. True The _______ is seen as the lender of last resort to nation-states whose economies are in turmoil and currencies are losing value against those of other nations. International Monetary Fund Most forecasts now predict a rapid rise in world output accounted for by developing nations such as China, India, and South Korea, and a rapid decline in the share enjoyed by rich industrialized countries such as Canada, Britain and the United States. True According the lecture, the number of Internet users in Canada has surpassed? 90% One frequently voiced concern about globalization is that it destroys manufacturing jobs in wealthy advanced economies such as Canada. The basic thrust of the critics' argument is: falling trade barriers allows firms to move their manufacturing activities offshore to countries where wage rates are much lower _______________ allows for a more direct comparison of living standards in different countries. PPP Many social democratic governments nationalize private companies. True The violation of _______________ can be violated in two ways—through private action and through public action. property rights Amartya Sen believed that development should be assessed less by measures such as _______________. GNP

3 _______ is a form of totalitarianism that advocates achieving socialism through totalitarian dictatorship. Communist totalitarianism Without a ____ the incentive to engage in economic activity can be reduced substantially by private and public entities. Legal system Political systems can be assessed according to two related dimensions: the degree to which they emphasize collectivism opposed to individualism and the degree to which they are democratic or totalitarian __________ liability involves holding a firm and its officers responsible when a product causes injury, death, or damage. Product Amartya Sen believed that development should be assessed more by measures such as _______________. HDI The political, economic, and legal systems of a country are called the political economy. True The economy and legal systems of a country are shaped by its what? political system Individualism is built on two central themes: an emphasis on the importance of guaranteeing individual freedom and self- expression and the belief that the welfare of society is best served by letting people pursue their own economic self-interest What kind of economies were once very common throughout much of the world, although they are becoming less so? mixed The bundle of legal rights over the use to which a resource is put; and over the use made of any income that may be derived form that resource are called __________ rights. property Followers of socialist ideology who commit themselves to achieving socialism through democratic reforms are called: Social democrats Which of the following can be traced to an ancient Greek philosopher, Aristotle? individualism Collectively, we refer to political, economic, and legal systems as constituting the _______ economy of a country. political What is the process through which people create new products, new processes, new organization, new management practices, and new strategies called? innovation The U.S. law enacted in 1977 that prohibits U.S. companies from making "corrupt" payments to foreign officials for the purpose of obtaining or retaining business is the Foreign Corrupt Practices Act. True Property rights refer to the bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource. True An example of an institutional weakness that undermines contract enforcement is what? Court capacity Ad valorem tariffs are levied as a proportion of the value of the imported good. True The ______________ was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like. General Agreement on Trade and Tariffs Lowering production costs helps domestic producers

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 gain export markets. __________ are levied as a fixed charge for each for each unit of a good imported. Specific tariffs GATT was, by most measures, ___________ in its early years. very successful One of the most famous examples of a(n) __________ is the limitation on auto exports to the United States enforced by Japanese automobile producers in 1981. voluntary export restraint The intellectual case for free trade goes back to the late 18th century and the work of Adam Smith and David Ricardo. True In general, what are two types of arguments for government intervention into the free flow of trade? Political and economic A government should use subsidies to support promising firms that are active in newly emerging industries, according to the ______ argument. strategic trade policy The ____________ was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like. General Agreement of Tariffs and Trade _______________ tends to be one of the largest beneficiaries of subsidies in most countries. Agriculture What is the ultimate objective of antidumping policies? Protect domestic producers from "unfair" foreign competition. The strategic trade policy argument of the new trade theorists advances an _______ justification for government intervention in international trade. economic A direct restriction on the quantity of some good that may be imported into a country is an import quota. True ________ arguments challenges the rationale for unrestricted free trade found in the work of classic trade theorists such as Adam Smith and David Ricardo. Strategic trade policy Which of the following is a government payment to a domestic producer? subsidy __________ arguments for government intervention into international trade are typically concerned with furthering the security of its citizens. political Local content regulations have been widely used by __________ to shift their manufacturing base from the simple assembly of products whose parts are manufactured elsewhere into the local manufacture of component parts. developing nations __________ is not one of the main reasons that protectionist pressures arose around the world during the 1980s. The opening of Japanese markets to imports According to the author of the textbook, tariffs benefit the following two groups: government and producers Which of the following is not an example of one of the main instruments in trade policy used by governments around the world? political mandate

5 Typically, at the request of the importing country, a quota on trade imposed by the exporting country is referred to as a voluntary export restraint. True A voluntary export restraint is a quota on trade imposed by the exporting country. True The __________ was created to arbitrate trade disputes and monitor the trade policies of member countries as a result of the Uruguay Round agreement. World Trade Organization By lowering production costs, ____________ help domestic producers compete against foreign imports. subsidies Some would argue that ___________ are the masters of administrative trade policies. Japan VER stands for: Voluntary export restraint. According to the textbook, Paul Krugman, a professor at MIT, predicts that a country that attempts to use strategic trade policy to establish a domestic firm (or firms) in a dominant position in a global industry will probably: Provoke retaliation. Consider the following scenario. The Netherlands exports tulip bulbs to almost every country in the world except Japan. The reason is that Japanese customs inspectors insist on checking every tulip bulb by cutting it down the middle (which destroys the bulb). The insistence on the part of the Japanese to inspect the bulbs in this manner (which makes it impractical for the Netherlands to export to Japan) is an example of a(n) administrative trade policy. While __________ tariffs are levied as a fixed charge for each unit of a good imported, __________ tariffs are levied as a proportion of the value of the imported good. specific; ad valorem Antidumping duties are often called _____________. countervailing duties __________ arguments for government intervention into international trade are typically concerned with boosting the overall wealth of a nation. economic According to _______, subsidies can help a firm achieve a first-mover advantage in an emerging industry. strategic trade policy An important component of _____ is that it might pay governments to intervene in an industry if it helps domestic firms overcome the barriers to entry created by foreign firms that have already reaped first-mover advantages. strategic trade policy GATT rules had applied only to manufactured goods and commodities until the Uruguay Round. True A quota on trade imposed by the exporting country, typically at the request of the importing country's government is referred to as a(n) voluntary export restraint. According to the strategic trade policy argument, a government should use subsidies to do what? Support promising firms in emerging industries. An indirect effect of protecting consumers from "unsafe" products is to ____________ limit or ban the importation of the products. Due to __________, according to our textbook, government intervention in trade policy is unlikely to be well executed. the impact of special interest groups The main gains from subsidies accrue to __________, whose international competitiveness is increased as a result of them.

6 domestic producers Who is noted for making the following statement, "There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say that it engages in open and free competition without deception of fraud."? Milton Friedman The ________ oblige(s) member states to make the bribery of foreign public officials a criminal offence. Convention on Combating Bribery of Foreign Public Officials in International Business Transactions In Rawls' philosophy, the principle that each person be permitted the maximum amount of basic liberty compatible with a similar liberty for others is known as the ____ principle. first Of the following, which assist organizations to think through the ethical implications of decision in a systematic way? Rights theories and Rawls' theory of justice. The way working conditions are maintained by a business refers to the __________ of that business. employment practices Of the following, whose basic position is that the only social responsibility of business is to increase profits so long as the company stays within the rules of law? Milton Friedman _________ approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate guidelines for ethical decision-making in a multinational enterprise. Straw men In ____________, member states of the OECD adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. 1997 Moral theorists argue that fundamental human rights form the basis for the ________ that managers should use when making decisions that have an ethical component. moral compass Many of the ethical issues and dilemmas in international business are rooted in the fact of differences in all BUT which one of the following? monetary values The trade and finance ministers of the OECD followed the lead of the U.S. in 1997 and adopted a convention on bribery in international business. True At which step of a stakeholder analysis would an organization to audit its decisions to see if they were consistent with ethical principles? Step 5 In Rawls' philosophy, the _________ indicates that inequalities are justified if they benefit the position of the least-advantaged members of society. difference principle In order for the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions to be truly effective, what must happen? the convention must be translated into laws by each signatory nation At which step of a stakeholder analysis would an organization's managers establish moral intent? Step 3 A ____________ claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. righteous moralist Which ethics approach is typically associated with managers from developed countries? The righteous moralist

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 All of the following would be considered to be that which individuals are ignorant of under John Rawls' veil of ignorance EXCEPT ________. political affiliation Article 1 of the Universal Declaration of Human Rights is thought to echo ________ ethics. Kantian Stakeholder analysis involves a certain amount of what has been called ______. moral imagination Which one of the following could be considered a reason why organizations may make decisions that ultimately lead to unethical business actions being undertaken? They have based the decision on economic logic only. An example of a "straw man" argument is the Friedman Doctrine. True What does Article 29 of the Universal Declaration of Human Rights convey? Everyone has duties to the community. Of the following, which assist organizations to think through the ethical implications of decision in a systematic way? impartiality In its extreme viewpoint, _________ suggests that if a culture supports slavery, it is all right to use the slave labour in the country. cultural relativism Philosopher _________ argued that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage. John Rawls _______, according to Michael Porter, are a nation's position in factors of production such as skilled labour or the infrastructure necessary to compete in a given industry. Factor endowments __________, the first theory of international trade, principal assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce. Mercantilism's Domestic rivalry creates pressure to do all of the following except: to improve employee relations. Which theory stresses that in some cases countries specialize in the production and export of particular products not because of underlying differences in factor endowments but because in certain industries the world market can support only a limited number of firms? New trade The potential world production is greater with unrestricted free trade than it is with restricted free trade is the basic message of the theory of comparative advantage. True Propagated in the 16th and 17th centuries, __________ advocated that countries should simultaneously encourage exports and discourage imports. mercantilism The theory of comparative advantage: provides a strong rationale for encouraging international trade. According to Porter, the four broad attributes of a nation that shape the environment in which local firms compete and that promote or impede the creation of competitive advantage are demand conditions, firm strategy, structure, and rivalry, factor endowments, and relating and supporting industries. True

8 A situation in which a country specializes in producing the goods it produces most efficiently and buys the products it produces less efficiently from other countries, even if it could produce the good more efficiently itself is referred to as: comparative advantage. In his study dealing with the competitive advantage of nations, Porter argued that in regard to demand conditions, a nation's firms' gain competitive advantage if their domestic consumers are __________ and __________. sophisticated; demanding In terms of explaining why some countries export automobiles, consumer electronics, and machine tools, while other countries export chemicals, watches, and jewellery, David Ricardo's theory of comparative advantage offer an international differences in labour productivity. The conditions governing how companies are created, organized, and managed and the nature of domestic rivalry is referred to as: firm strategy, structure, and rivalry. The main tenet of mercantilism was that it was in a country's best interest to maintain a(n) : export trade surplus _______, by its choice of policies, can detract from or improve national advantage. Government The theory of comparative advantage, advanced by __________, is the intellectual basis of the modern argument for unrestricted free trade. David Ricardo Which of the following two theories justify some limited and selective government intervention to support the development of certain export-oriented industries? The new trade theory and theory of national competitive advantage. Porter argues that the presence of all components is usually required for the "diamond" to boost: competitive performance. The new trade theorists argue that in those industries where the existence of substantial economies of scale imply that the world market will profitable support only a few firms, countries may export certain products simply because they have a firm that was an early entrant into that industry. True In his 1817 book entitled Principles of Political Economy, __________ introduced the theory of comparative advantage. David Ricardo We would expect Porter's model to predict _______, if he is correct. the pattern of international trade The theory of __________, developed by Michael Porter, focuses on the importance of country factors such as domestic demand and domestic rivalry in explaining a nation's dominance in the production and export of particular products. national competitive advantage To an even greater degree than the theory of absolute advantage, the theory of __________ suggests that trade is a positive-sum game in which all gain. comparative advantage Who argued that successful industries within a country tend to be grouped into "clusters" of related industries? Porter _______ is consistent with the central beliefs of mercantilism. Policies should be put in place to encourage exports and discourage imports New trade theorists stress the role of the following three variables in giving firm first-mover advantages? entrepreneurship, favourable foreign exchange rates, and innovation luck, entrepreneurship, and innovation Unlike the naturally endowed basic factors, advanced factors are a product of investment by all of the following except: demographics.

9 Which theory of international trade directly explains why there are only two to three producers of airlines in the world today? new trade Porter's thesis was that four broad attributes of a nation shape the environment in which local firms compete, and that these attributes promote or impede the creation of competitive advantage. All of the following is/are attributes except: customs The __________ theory argues that due to the presence of substantial scale economies, world demand will support only a few firms in many industries. new trade In 1990, who published the results of an intensive research effort that attempted to determine why some nations succeed and others fail in international competition? Michael Porter _______ is the basic message of the theory of comparative advantage. Potential world production is greater with unrestricted free trade than it is with restricted trade Which of the following statements accurately characterizes mercantilism? It still influences many governments. Dynamic gains in both the stock of a country's resources and the efficiency with which resources are utilized will cause a country's PPF to: shift outward. Because of substantial economies of scale, the __________ theory argues that in many industries there are increasing returns to specialization. new trade One of the limitations to the theory of comparative advantage is that it assumes: constant returns to scale. Economies of scale increases the efficiency of resource utilization, therefore increasing what? productivity A rationale for wanting control over the operations of a foreign entity is that the firm might wish to take advantage of differences in factor costs across countries, producing only part of its final product in a given country, while importing other parts from where they can be produced at a lower cost. True The beneficial effects of FDI may be reduced if most management and highly skilled jobs in the subsidiaries of foreign firms are reserved for _______________ nationals. home-country Since World War II, the largest source country for FDI outflows has been _____________, though this is not true today. United States Many investor nations now have government backed insurance programs to cover major types of foreign investment risk. The types of risks insurable through these programs include all of the following except: strategic business blunders. For the most part Canadian FDI outflow in last few years went to ________________. Canadian affiliates and subsidiaries ______________ is (are) not a common incentive that governments offer foreign firms to invest in their countries. Free media advertising In practice, many countries have adopted neither a radical policy nor a free market policy toward FDI, but instead a policy that can best be described as pragmatic nationalism. True The establishment of Japanese automakers' branch plants in Canada does not help the U.S. in terms of its _________________. balance-of-payments accounts.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

10 Which is a possible adverse effect of FDI on a host country's balance-of-payments position? Set against the initial capital inflow that comes with FDI must be the subsequent outflow of income as the foreign subsidiary repatriates earnings to its parent company. The _______________ view of FDI traces its roots to Marxist political and economic theory. radical The ________________ view is that FDI has both benefits and costs. pragmatic nationalist Three main costs of inward FDI concern host countries. These are: The possible adverse effects of FDI on competition within the host country, adverse effects on the balance of payments, and the perceived loss of national sovereignty and autonomy. If a Canadian corporation decides to create FDI in Mexico because the new plant site has lower costs, this can cause Canada to: deteriorate its trade position. In a ________________ view, FDI should be allowed only if the benefits outweigh the costs. pragmatic nationalism International trade theory tells us that home country concerns about the negative economic effects of offshore production: may be misplaced. ______________ are knowledge spillovers that occur when companies in the same industry locate in the same area. Externalities Dunning argues that combining location specific assets or resource endowments and the firm's own unique capabilities often requires: FDI. For the most part FDI flows have _____________ over the past 35 years. grown When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. This is particularly true of products that have a(n) : low value-to-weight ratio. Historically, there have been high levels of FDI outflows from the United States. True The _______________ view argues that international production should be distributed among countries according to the theory of comparative advantage. free market Most FDI has been directed at the developed nations of the world as firms based in advanced countries invested in the others' markets. True Camelot Baby Carriages decided to enter the European market. Sam's Strollers followed to ensure that Camelot would not gain competitive advantage in Europe that could lead to the same thing occurring in Asia. Sam's then decides to enter the Australian market, and Camelot follows. This is an example of: multipoint competition. ________________ are three main benefits of inward FDI for a host country. The resource-transfer effect, the employment effect, and the balance-of-payments effect What is the record of a country's export and import of goods and services referred to as? Current account _______________ has not contributed to the increase in FDI over the past several years. Dramatic shifts towards socialist and communist political institutions Radical writers believe that _____________ extract profits from the host country and take them to their home country, giving nothing of value to the host country in exchange. MNEs

11 Which of the following is NOT a reason that the radical position of MNEs was in retreat by the end of the 1980s? The rise of democracy in the Western countries. Historically, most FDI has been directed at ______________. developed nations The MNE is seen as an instrument for dispersing the production of goods and services to those locations around the globe where they can be produced most efficiently, according to the ________________ view. free market Host governments use a range of controls to restrict FDI. The two most common are: ownership restraints and performance requirements. _______________, a branch of economics, seeks to explain why firms often prefer foreign direct investment to licensing as a strategy for entering foreign markets. Internalization theory FDI is often undertaken as a response to: threatened import tariffs The members of the Organization for Economic Cooperation and Development include: most European countries, the United States, Canada, Japan, and South Korea. There are possible adverse effects of FDI on a host country's balance of payments. True Which of the following two statements accurately reflects the trend in foreign direct investments over the past 35 years? There has been a rapid increase in the total volume of FDI undertaken and there has been a change in the importance of various countries as sources for FDI. Generally speaking, there has been a(n) ______________ in the past 35 years. marked increase in both the flow and stock of FDI in the world economy A country's _______________ tracks both its payments to and its receipts from other countries. balance-of-payments account A Paris-based intergovernmental organization of "wealthy" nations whose purpose is to provide its 34 member states with a forum in which governments can compare their experiences, discuss the problems they share, and seek solutions that can be applied within their own national contexts is referred to as: Organization for Economic Cooperation and Development. Regarding the costs of FDI for the home country, the most important concerns center around: the balance-of-payments and employment effects of outward FDI. Silicon Valley has a ______________ in the generation of knowledge related to the computer and semi-conductor industries, when looked at by Dunning's theory. location specific advantage Other things being equal, investing in countries that are permissive to FDI is preferable to investing in countries that restrict FDI. True Monetary discipline was a central objective of Bretton Woods, and a rigid policy of fixed exchange rates was _______________. seen as too inflexible. What do many Canadian businesspeople NOT buy into with respect to the value of the Canadian dollar? A stronger dollar will reduce demand for Canada's exports. A government restricts the convertibility of its currency to protect the country's _____________ and to halt any capital flight. foreign exchange reserves Under a floating exchange rate regime, market forces have produced what? A volatile U.S. dollar exchange rate. The foreign exchange market serves two main functions. These are what?

12 Convert the currency of one country into the currency of another and provide some insurance against foreign exchange risk. The foreign exchange market converts the currency of one country into the currency of another and: provides some insurance against foreign exchange risk. Currency speculation typically involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates. True The law of one price and purchasing power parity are two components of: price and exchange rates. _____________ typically involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates. Currency speculation According to our textbook, when the growth in a country's money supply is faster than the growth in its output, _____________ is (are) fueled. inflation It is argued that a floating exchange rate regime gives countries monetary policy autonomy. True ______________ also adds to the uncertainty surrounding future currency movements that characterizes floating exchange rate regimes. Speculation Fixed exchange rates are seen as a mechanism for achieving the following two objectives: controlling inflation and economic discipline. The case for fixed exchange rates rests on arguments about monetary discipline, speculation, uncertainty, and the lack of connection between the trade balance and exchange rates. True The case for fixed exchange rates rests on arguments about monetary discipline, speculation, the lack of connection between the trade balance and exchange rates, and _______________. uncertainty. The three factors that have the most important impact on future exchange rate movement include the country's price inflation, its market philosophy, and its ______________. interest rate. There is some evidence that adopting a pegged exchange rate regime _________________. moderates inflationary pressure in a country The ______________ exchange rate regime that followed the collapse of the fixed exchange rate system was formalized in January 1976 when IMF members met in Jamaica and agreed to the rules for the international system that are in place today. floating It is argued that a _______________ exchange rate regime gives countries monetary policy autonomy. floating Under a ______________ exchange rate regime, a country's ability to expand or contract its money supply as it sees fit is limited by the need to maintain exchange rate parity. fixed The case for floating exchange rates has two main elements. These are: monetary policy autonomy and automatic trade balance adjustments. ______________ determines whether the rate of growth in a country's money supply is greater than the rate of growth in output. Government policy The movement of foreign exchange rates: introduces many risks into international trade and investment.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

13 Floating exchange rates are determined by what? Market forces ______________ is most likely to occur when the value of the domestic currency is depreciating rapidly because of hyperinflation. Capital flight Currency speculation typically involves what? The short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates. One function of the foreign exchange market is to provide some insurance against the risks that arise from changes in exchange rates, commonly referred to as: foreign exchange risk. ______________ are seen as a mechanism for controlling inflation and imposing economic discipline on countries. Fixed exchange rates Monetary policy autonomy and automatic trade balance adjustments are the two main elements of the case for fixed exchange rates. False Under the exchange rate system established by the Bretton Woods agreement, the value of most currencies in terms of ______________ was fixed for long periods and was allowed to change only under a specific set of circumstances. U.S. dollars The inevitable result of excessive growth in money supply is called: price inflation. A fixed exchange rate regime imposes discipline in two ways: (1) the need to maintain a fixed exchange rate puts a brake on competitive devaluations and brings stability to the world trade environment and (2) a fixed exchange rate regime imposes what? Monetary discipline on countries, thereby curtailing price inflation. ______________ exchange rates represent market participants' collective predictions of likely spot exchange rates at specified future dates. Forward Institutional arrangements that countries adopt to govern exchange rates refers to what? International monetary system Most economic theories suggest that three import factors have an important impact on future exchange rate movements in a country's currency. These factors are: the country's price inflation, its interest rate, and its market philosophy. "Free float" exchange rates are determined by _____________. market forces Removal of the obligation to maintain exchange rate parity restores monetary control to a government is the argument of advocates of a floating exchange rate regime. True A _______________ eliminates trade barriers between member countries and adopts a common external trade policy. customs union In 1990, the MERCOSUR pact was expanded to include: Paraguay and Uruguay. ______________ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area. Trade creation The most recent countries to become a members of ASEAN are: Vietnam, Laos, and Myanmar The original forerunner of the EU, the __________ was formed in 1951 by Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. European Coal and Steel Community

14 Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated? Free trade area, customs union, common market, economic union, and full political union No other attempt at regional integration comes close to(the) ______________ in its boldness or its potential implications for the world economy. EU The two main reasons that have made economic integration difficult to achieve are: concerns over costs and concerns over national sovereignty. Europe has been the most successful example of regional economic integration. True Which of the following statements is true in regard to economic unions? There are no true economic unions in the world today. The European Community was established in: 1957. The political case for regional _______________ has also loomed large in most attempts to establish free trade areas, customs unions, and the like. economic integration According to the textbook, Countries in _____________ have been, mostly unsuccessfully, experimenting with regional trade blocks for 50 years. Africa The European Free Trade Association currently includes the following four countries: Norway, Iceland, Switzerland, and Liechtenstein Currently, the four member states of MERCOSUR include: Brazil, Argentina, Paraguay, and Uruguay. The lowering of _______________ between countries is likely to lead in increased price competition throughout the EU and NAFTA. barriers to trade Many now see the _____________ as the emerging economic and political superpower of the same order as the United States and Japan. European Union Which of the following was NOT one of the purposes of the Single European Act? Remove the principle of "mutual recognition" as it pertains to product standards. The initial principles of The Andean Group included all of the following EXCEPT what? Common currency among member nations. The following three countries implemented the North American Free Trade Agreement (NAFTA): Canada, Mexico, and the United States Establishment of a _______________ trade policy necessitates significant administrative machinery to oversee trade relations with non- members. common external The most enduring free trade area in the world is the European Free Trade Association. True Which of the following was created to end the EC's economic divisions? The Delors Commission The ______________ is directly elected by the populations of the member states. European Parliament MERCOSUR originated in 1988 as a free trade pact between ______________. Brazil and Argentina

15 With the signing of the Treaty of Rome in 1957, the ______________ was established. European Community Agreements among countries in a region to reduce and ultimately remove tariff and nontariff barriers are known as regional economic integration. True In 1988 the governments of the United States and Canada agreed to enter in a ______________, which went into effect on January 1, 1989. free trade agreement The European Free Trade Association (EFTA) is: founded by Western European countries that were not initially part of the European Community. The _______________ was born of a frustration among EC members that the community was not living up to its promises. Single European Act To signify the importance of the ______________, the European Community decided to change its name to the European Union once the act took effect. Single European Act A customs union eliminates trade barriers between member countries and adopts a common external trade policy. True In theory, _______________ rules should ensure that a free trade agreement does not result in trade diversion. World Trade Organization According to our textbook, the move to a single currency in Europe should: significantly decrease the cost of doing business in Europe. With the signing of the ______________ in 1957, the European Community was established. Treaty of Rome The ______________ pact reportedly helped bring about an 80 percent increase in trade between Brazil and Argentina in the 1980s. MERCOSUR The agreement that was designed to abolish within 10 years tariffs on 99 percent of the goods traded between Mexico, Canada, and the United states is called the: North American Free Trade Agreement According to the textbook, in regard to international trade, the theoretical ideal is: an absence of barriers to the free flow of goods, services, and factors of production among nations. The last few years has witnessed an unprecedented proliferation of regional trade agreements. True For participating countries, a drawback of a single currency in Europe is that: national authorities will lose control over monetary policy. A common market includes all of the following characteristics except: full economic integration. A good word to describe APEC plans and pronouncements is "vague". True According to the textbook, by entering into _______________, groups of countries aim to reduce trade barriers more rapidly than can be achieved under the WTO . regional agreements Mercosur ran into difficulties in 1998 when _______________. its members slipped into recession. According to our textbook, the first year that NAFTA became a reality turned out to be:

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

16 a largely positive experience for all three countries. The Andean Pact was formed in 1969 when _____________ signed the Cartagena Agreement. Bolivia, Chile, Ecuador, Colombia, and Peru In the context of regional trade integration, concern about ______________ arise because close economic integration demands that countries give up some degree of their control over such key policy issues as monetary policy, fiscal policy, and trade policy. national sovereignty The European Free Trade Association's emphasis has been on free trade in what area? industrial goods Trade creation occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area. True The Andean Pact is a(n) ________________. customs union. An agreement between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other is referred to as: regional economic integration. Of the two trade blocks in Europe, the _______________ is by far the more significant, not just in terms of membership, but also in terms of economic and political influence in the world economy European Union The purpose of the ______________ was to have a single market in place by December 31, 1992. Single European Act The phenomenon that occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area is called: trade creation. The European Union effectively became a single market in: 1993. The two main reasons that have made ______________ difficult to achieve are cost and concerns over national sovereignty. economic integration According to your textbook, the _______________, which is playing an even more important role in the EU, has been directly elected by citizens of the EU countries since the late 1970s. European Parliament The implications of the Single European Act are: enormous. An economic union entails even closer economic integration and cooperation than a common market. True The EU was initially composed of ____________ member states. 15 The Andean Pact was formed in 1969 when Bolivia, Chile, Ecuador, Colombia, and Peru signed the Cartagena Agreement. True The European Union is the product of two political factors. The devastation of two world wars on Western Europe and: the European nations' desire to hold their own on the world's political and economic stage. APEC currently has ______________ members including such economic powerhouses as the United States, Japan, and China. 21 Formed in 1967, ASEAN currently includes: Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.

17 According to the textbook, most attempts to achieve regional economic integration have been what? Contentious and halting On January 1, 1993, the _______________ effectively became a single market with 340 million consumers. European Union The most enduring free trade area in the world is the: European Free Trade Association. A _____________ will benefit the world only if the amount of trade it creates exceeds the amount it diverts. regional free trade agreement Like the common market, a(n) _______________ involves the free flow of products and factors of production between members and the adoption of a common external trade policy. economic union An economic union involves the free flow of products and factors of production between members and the adoption of a common external trade policy. True The _____________ was formed in 1969 when Bolivia, Chile, Ecuador, Columbia, and Peru signed the Cartagena Agreement. Andean Pact The term "Fortress Europe" refers to: the perception that the European Union is designed to protect the European continent from the import of foreign produced goods. NAFTA stands for: North American Free Trade Association. Europe now has two trade blocs: the European Union and the European Free Trade Association. True In 1999, the move toward a _______________ in the EU was given a further push by the adoption of a common currency, _______________, among a majority of the EU's member states. single market; the Euro Which of the following is not an attribute of an economic union? Political union Because many governments have accepted part or all of the case for intervention, unrestricted free trade and FDI have proved to be: only an ideal. The United States, Japan, and China are among 21 members of a trade organization referred to as: APEC (Asia Pacific Economic Cooperation). _____________ occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area. Trade diversion _____________ occurs when high-cost domestic producers are replaced by low-cost producers. ____________ occurs when lower- cost external suppliers are replaced by higher-cost suppliers within the free trade area. Trade creation; Trade diversion As predicted by the theory of comparative advantage, there should be a ______________ from regional trade agreements. substantial net gain Nowhere has the movement toward regional economic integration been more successful than in _______________. Europe Mexico's concerns about maintaining control of its oil interests resulted in an agreement with Canada and the United States to exempt the Mexican oil industry from any liberalization of foreign investment regulations achieved under NAFTA. This is an example of: a concern of national sovereignty. The work of Christopher Bartlett and Sumantra Ghoshal is associated with: transnational strategy.

18 Value chain activities can be categorized as: primary activities and support activities. The ____________ refers to the systematic reductions in production costs that have been observed to occur over the life of a product. experience curve After a five-year study of 15 strategic alliances between major multinationals, Gary Hamel, Yves Doz, and C.K. Prahalad concluded that a major determinant of how much a company gains from an alliance is: its ability to learn from alliance partners. A(n) _____________ strategy makes sense when there are strong pressures for cost reductions and where demands for local responsiveness are minimal. global Firms pursuing a(n) ________________ strategy orient themselves towards achieving maximum local responsiveness. multidomestic In the context of value chain analysis, the support activities of a firm include: human resources, materials management, infrastructure, and information systems When there are differences in infrastructure and/or traditional practices between countries, pressures for local responsiveness emerge. True In the context of the value chain analysis, support activities provide the inputs that allow the primary activities of production and marketing to occur. True Firms that operate internationally are able to reduce the costs of value creation because they realize greater cost economies from experience effects by serving an expanded global market from a central location. True Firms use four basic strategies to compete in the international environment. These are: an international strategy, a multidomestic strategy, a global strategy, and a transnational strategy. Which of the following two strategies suffer from a failure to exploit experience curve effects? Multidomestic and international Locating a value creation activity in the optimal location for that activity can have one or two effects. First, it can lower the costs of value creation and help the firm to achieve a low-cost position, and/or: it can enable a firm to differentiate its product offering from that of competitors. According to the textbook, there are three important factors that help to maximizing the benefits of strategic alliances. These are: make allowances for cultural differences, building trust, and learning from partners. Pressures for _____________ emerge when there are differences in infrastructure and/or traditional practices between companies. local responsiveness According to our textbook, a firm's ____________ allow it to reduce the costs of value creation and/or to create value in such a way that premium pricing is possible. core competencies Pressures for _______________ imply that it may not be possible for a firm to realize the full benefits from experience curve and location economies. local responsiveness __________________ is a way of further exploiting the value creation potential of a company's skills and product offerings by applying these skills and products in a larger market. Global expansion If Goodyear Tire Corporation experienced systematic reductions in the production costs of a particular product over the life of the product, they would be realizing ____________ effects. experience curve

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

19 Firms that pursue a(n) _____________ strategy try to create value by transferring valuable skills and products to foreign markets where indigenous competitors lack those skills and products. international A basic condition that determines a firm's profits is: the amount of value customers place on the firm's goods. ____________ permitting, the firm will benefit by basing each value creation activity it performs at that location where economic, political, and cultural positions are most conducive to the performance of that activity. Trade barriers and transportation costs The ___________ activities of a firm have to do with creating the product, marketing and delivering the product to buyers, and providing support and after-sales service to the buyers of the product. primary _________________ the skills created within subsidiaries and applying them to other operations within the firm's global network creates value. Leveraging Firms pursuing a(n) _________________ strategy orient themselves toward achieving maximum local responsiveness. multidomestic Which of the following is not a factor that is driving pressures for local responsiveness among global firms? Similarities in distribution channels. The four safeguards against opportunism by alliance partners include: walling off critical technology, establishing contractual safeguards, agreeing to swap valuable skills and technologies, and seeking credible commitments A number of studies have observed that a product's __________ decline by some characteristic each time accumulated output doubles. production costs A(n) ________________ strategy makes sense if a firm has a valuable core competence that indigenous competitors in foreign markets lack. international In the context of value chain analysis, which of the following is an example of a "primary" activity? research and development According to Bartlett and Ghoshal, the _______ strategy is the only viable international strategy. transnational The distinguishing feature of _______________ firms is that they extensively customize both their product offerings and their marketing strategy to match national conditions. multidomestic it is useful to think of the firm as a(n) __________ composed of a series of distinct activities, including production, marketing, materials management, R&D, human resources, information systems, and the firm infrastructure. value chain The production, marketing, and R&D activities of firms pursuing a(n) _____________ strategy are concentrated in a few favourable locations. global A business strategy that seeks experience-based economies and location economies, transfers distinctive competencies within the firm, and pays attention to pressures for local responsiveness is a transnational strategy. True One recent study of 49 international strategic alliances found that _____________ ran into serious managerial and financial troubles within two years of their formation. 2/3 In theory, a firm that realizes _______________ by dispersing each of its value creation activities to its optimal location should have a competitive advantage vis-à-vis a firm that bases all its value creation activities at a single location.

20 location economies A weakness of the ________________ strategy is that many of the firms that pursue this strategy have developed into decentralized federations in which each national subsidiary functions in a largely autonomous manner. multidomestic The appropriateness of the strategy that a firm uses in an international market varies with the extent of pressures for _____________ and ________________. cost reductions; local responsiveness Which of the following two international strategies are disadvantaged by a lack of local responsiveness? Global and international Harvard Business School Professor Theodore Levitt has argued that consumer demands for local customization are ______________ worldwide. declining Threats of protectionism, economic nationalism, and local content rules: dictate that international businesses manufacture locally. Sally creates _______ when she develops a way to maximize long-term profitability. a strategy According to the textbook, which of the following strategies is difficult to implement due to organizational problems? Transnational A company creates _______ by converting inputs that cost C into a product on which consumers place a value of V. value When cost pressures are low and pressures for local responsiveness are low, a(n) _____________ strategy is the most appropriate. international Learning effects tend to be more significant when a ____________ task is repeated because there is more than can be learned about the task. technologically complex _____________ refer to cost savings that come from learning by doing. Learning effects Due to organizational problems, a transnational strategy is difficult to implement. True Pressures for cost reductions can be particularly intense in industries producing commodity products where meaningful differentiation on non-price factors is difficult and ____________ is the main competitive weapon. price _____________________ run the range from formal joint ventures to short-term contractual agreements. Strategic alliances Differences in consumer tastes and preferences, differences in infrastructure and traditional practices, differences in distribution channels, and host government demands are factors pressuring firms to ______________ in their international strategies. be locally responsive Robert Reich and Eric Making have argued that ________________ between U.S. and Japanese firms are part of an implicit Japanese strategy to keep higher-paying, higher-value added jobs in Japan while gaining the project engineering and production process skills that underlie the competitive success of many U.S. companies. strategic alliances Firms that pursue a(n) _______________ strategy focus on increasing profitability by reaping the cost reductions that come from experience curve effects and location economies. global In the context of value chain analysis, ____________ activities allow the primary activities of production and marketing to occur. support

21 A(n) _______________ strategy makes sense if a firm has valuable core competencies that indigenous competitors in foreign markets lack, and if the firm faces relatively weak pressures for local responsiveness and cost reductions. international When cost pressures are low and the pressures for local responsiveness are high a(n) _____ strategy is the most appropriate. multidomestic a firm creates a(n) _____________ by dispersing the stages of its value chain to those locations around the globe where the value added is maximized or where the costs of value creation are minimized. global web If Honda noticed that the unit costs of Honda Accords went down as the number of Accord's produced went up, Honda would be realizing the benefits of _______________. economies of scale In the context of value chain analysis, the primary activities of a firm include: production, marketing & service, and sales. Moving down the experience curve allows a firm to reduce its cost of: creating value Which of the following is not a typical characteristic of multidomestic firms? Have a low cost structure. Pursuing a(n) _______________ strategy involves a simultaneous focus on reducing costs, transferring skills and products, and being locally responsive. transnational Among global firms, which of the following is not a factor that is driving pressures for local responsiveness? Similarities in consumer tastes and preferences. Firms pursuing a multidomestic strategy orient themselves toward achieving maximum local responsiveness. True McDonald's core competencies are: managing fast-food operations In the opening case, what is important to IKEA's global success? Local customization. The greater the pressures for cost reductions are, the most likely a firm will want to pursue some combination of: exporting and wholly owned subsidiaries. Acquisitions often produce disappointing results, despite the argument for making them. True Which foreign market entry strategy has the following disadvantages: lack of long-term market presence, may inadvertently create a competitor, risk of selling a firm's competitive advantage? Turnkey project An advantage of acquisitions is ______________. the ability to pre-empt competitors. _______________ is preferred to joint venture arrangements and to using foreign market agents. Wholly owned subsidiary The choice of what foreign market to enter should be driven by an assessment of: relative long-run growth and profit potential. What type of entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market? Small-scale Strategic commitments tend to change the competitive playing field.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

22 True Why are wholly owned subsidiaries preferred by firms pursuing global or transnational strategies? They allow the use of profits generated in one market and improve the competitive position in another. The need for pre-emption is particularly great in markets that are what? Rapidly globalizing Creating efficient competitors and lack of long-term market presence are disadvantages of ______________. turnkey projects. Sonic Jets, an international business, is considering entering a new market in Germany. What does Sonic Jets need to consider? Its scale of entry. Turnkey projects are most common in the following industries: chemical, pharmaceutical, petroleum refining, and metal refining. __________________ tend to change the competitive playing field and unleash a number of changes, some desirable and some undesirable. significant strategic commitments _______ takes advantage of a firm's competency in the area of assembling and running technologically complex projects. Turnkey projects A decision that has a long-term impact and is difficult to reverse a(n) : strategic commitment. Turnkey projects are a means of exporting ____________ to other countries. process technology Many service firms favour a combination of franchising and ______ to control the franchises within a particular country or regions. subsidiaries The Mercer Study concluded that _______ percent of the 150 acquisitions studied ended up eroded or substantially shareholder value. 50 Many Canadian companies are leery of forming equity joint ventures with China because of: changing regulations. issues around currency convertibility. lack of skilled labour. poor quality raw materials. all of these answers are correct. Entering a large market such as China before other similar industries will be associated with what? A high level of risk Ravenscraft and Scherer concluded in their study that many good companies were acquired between January 1990 and July 1995, and on average, their profits and market shares _______ following the acquisition. declined Daimler-Benz used ______________ to establish a bigger presence in the North American market. an acquisition The importance attached to _______ is a central value of the Japanese culture. group membership The most able individuals in a business organization may find their route to the higher levels of the organization blocked simply because they come from lower castes, under the teachings of __________. Hinduism. Central to the __________ system of ethics are the values of loyalty, reciprocal obligations, and honesty. Confucian

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

23 A strong need for rules and regulations, with a premium of job security, career patterns, and retirement benefits, would best describe a culture with: high uncertainty avoidance. The primacy of the value of group identification discourages managers and workers from moving from company to company. True According to Hofstede's Model, what country stands out as having a culture with strong uncertainty avoidance and high masculinity? Japan _______ is not one of the major principles of Islam. Being pretentious Individuals that following the teaching of Confucius are found primarily in: China, South Korea, and Japan. In his studies, Hofstede isolated four dimensions that he claimed summarized different cultures. These were: power distance, individualism versus collectivism, uncertainty avoidance, and masculinity versus femininity. __________ has approximately 1.1 billion adherents, most of them in the Indian subcontinent. Hinduism A form of _______________ has been played out in British society in the traditional hostility between-upper-middle class managers and their working class employees. class consciousness while groups are found in all societies, societies differ according to the degree to which the group is viewed as: the primary means of social organization. Which attitude according Hofstede, is not captured by Confucian dynamism? Personal initiative In 1904, Max Weber, a German sociologist, made a connection between Protestant ethics and "the spirit of __________." capitalism. Hofstede's __________ dimension measured the extent to which different cultures socialized their members into accepting ambiguous situations. uncertainty avoidance What is the world's oldest major religion? Hinduism The terms dharma, karma, and nirvana are associated with the __________ religion. Hindu The relationship between religion and ethical systems on the one hand and business practice on the other is probably: _____________. small compared to the impact of economic policy. __________ was the official ethical system of China for more than 2,000 years until the 1949 Communist revolution. Confucianism Although there are many different aspects of social structure, two main dimensions--_______--stand out when explaining differences between cultures. the degree to which the basic unit of social organization is the individual; and the degree to which a society is stratified into classes or castes According to your text, Islam dates back to: 610 A.D. Max Weber argued that the ___ promise of salvation in the next world, rather than this world, did not foster the same work ethic as Protestantism. Catholic The religion that is built around a comprehensive ethical code that establishes guidelines for relationships with others is called _______.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

24 Confucianism. The past two decades have witnessed a growth of a social movement often referred to as "Islamic fundamentalism." True Organized labour has responded to the increased bargaining power of multinational corporations by taking which of the following actions? Trying to achieve international regulations on multinationals through such organizations as the United Nations. According to Mendenhall and Oddou, the attribute of _____________ provides an expatriate the ability to understand why people of other countries behave the way they do, that is, the ability to empathize with them. perceptual ability The strategy that is most compatible with an ethnocentric staffing policy is what? International strategy According to the textbook, in practice, the International Trade Secretariats have had ______. virtually no success. Organized labour has responded to the increased bargaining power of multinational corporations by taking three actions: trying to establish international labour organizations, lobbying for national legislation to restrict multinationals, and trying to create controlled regional labour boards. If you were transferred abroad and didn't like interacting those in the host country and didn't know the local language, this might mean that you lacked attributes of Mendenhall and Oddou's _______________ dimension. others-orientation In a recent survey, almost ________________ of employees sent to developing nations return home early. 70 percent According to Mendenhall and Oddou, the attribute of _________________ enhances the expatriate's ability to interact effectively with host country nationals. others-orientation Relationship development and willingness to communicate are the two factors that are particularly important in developing a health degree of what? Others-orientation One estimate of the costs of expatriate failure is that the average cost per failure to the parent company can be as high as __________________ time the expatriate's annual domestic salary plus the cost of relocation. 3 Which of the following strategies is most compatible with a polycentric staffing policy? Multidomestic strategy According to one study, what percent of repatriated employees didn't know what their position would be when they returned home? 60-70 A polycentric staffing policy is appropriate for a firm following a multidomestic strategy. True Mendenhall and Oddou identified four dimensions that seem to predict success in foreign postings: self-orientation, others-orientation, perceptual ability, and cultural toughness. True From a strategic perspective, the key issue in international labour relations is ______________. the degree to which organized labour can limit the choices of an international business. What is the main difference between international businesses in terms of their approaches to international labour relations? The degree to which labour relations activities are centralized or decentralized. The four strategies pursued by international businesses are the multi domestic, the international, the global, and the transnational. True

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

25 According to Mendenhall and Oddou, what refers to the fact of how well an expatriate adjusts to a particular posting as it relates to the country of assignment? Cultural toughness A person who is an expatriate with good mental well-being, high self-esteem, and high self-confidence is successful in what dimension? Self-orientation According to the results of a study of R.L. Tung, the number one reason that Japanese expatriate managers fail is: inability to cope with larger overseas responsibilities. In the 1960s organized labour began to establish a number of __________ to provide worldwide links for national unions. International Trade Secretariats Which of the following two strategies are most compatible with a geocentric staffing policy? Global and transnational According to Mendenhall and Oddou, the attribute of _____________ strengthens an expatriate's self-esteem, self-confidence, and mental well-being. self-orientation According to Mendenhall and Oddou, expatriate managers who lack _____________ tend to treat foreign nationals as if they were home country nationals. perceptual ability Which of the following is not an advantage of a geocentric approach to staffing for international businesses? Inexpensive to implement. A housing allowance is normally given to ensure that the expatriate can afford the same quality of housing in the foreign country as at home. In locations where housing is very expensive, this allowance can be substantial as much as ______ percent. 30 ______________ percent of U.S. multinationals experience expatriate failure rates of 10 percent or more, according to a study conducted by R.L. Tung. 76 A principle concern of domestic unions about multinational firms it that the multinational can counter their bargaining power with ______ the power to move production to another country.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

MC Study Elimination

Related Documents