Business in World Economy

PART A

1. The shift toward a more integrated and interdependent world economy is referred to as
a) Microeconomics
b) Globalization
c) Collectivism
d) Privatization

2. Which is not a factor of production?
a) Trade
b) Land
c) Capital
d) Energy

3. Which of these is not a concern of anti-globalization protesters?
a) globalization raises consumer income
b) globalization contributes to environmental degradation
c) globalization is causing a loss of manufacturing jobs in developed countries
d) globalization implies a loss of national sovereignty

4. Which of the following has NOT been a major force increasing globalization in recent decades?
a) Liberalization of cross-border trade
b) Increase in and expansion of technology
c) Growing pressure from consumers
d) Decreasing global competition

5. Which is not a primary determinant of a nation's rate of economic development?
a) its political system
b) its economic system
c) its geography
d) its currency

6. Design and names by which merchants or manufacturers designate and differentiate their products are called
a) trademarks
b) copyrights
c) patents
d) name brands

7. Which type of law is based on tradition, precedent, and custom?
a) civil law
b) common law
c) theocratic law
d) contract law

8. In which type of economic system are all productive activities privately owned?
a) a mixed economy
b) a command economy
c) a representative economy
d) a market economy

9. consists of specific learned norms based on attitudes, values, and beliefs of a group of people.
a) Ethnology
b) Civilization
c) Culture
d) Doctrine

10. Which of these dimensions is not Geert Hofstede cultural dimension
a) Religion
b) Individualism versus collectivism
c) Uncertainty avoidance
d) Masculinity versus femininity

11. refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production
a) Globalization of markets
b) Globalization of production
c) Social democrats
d) Individualism

12. A political system that stresses the primacy of collective goals over individual goals is called
a) individualism
b) collectivism
c) a democracy
d) a market economy

13. A form of government in which one person or political party exercises complete control over all spheres of human life and prohibits opposing political parties is
a) a democracy
b) a representative democracy
c) totalitarianism
d) socialism

14. can be defined as a group of people that share a common set of values and norms
a) Collectivism
b) Capitalism
c) Culture
d) Society

15. The degree to which a society is stratified into classes or castes is called
a) Stratification
b) Culture
c) Collectivism
d) Democracy

16. Experience has demonstrated that state ownership of the means of production:
a) often runs in parallel with the public interest
b) is the most profitable way to organize production
c) is the most efficient way to organize production
d) often runs counter to the public interest
e) leads to increased inefficiency, higher prices and higher taxes

17. go "hand-in-hand."
a) Anarchy and individualism
b) Collectivism and individualism
c) Totalitarianism and democracy
d) Democracy and collectivism
e) Democracy and individualism

18. Which of the following are the three broad types of economic systems?
a) market economy, combined economy, production economy
b) market economy, post-industrial economy, industrial economy
c) combined economy, separate economy, mixed economy
d) ordinance economy, production economy, political economy
e) market economy, command economy, mixed economy

19. In a pure economy the good and services that a country products, and the quantity in which they are produced, is not planned by anyone. Rather it is determined by the interaction of supply and demand and signaled to producers through the price system.
a) Ordinance
b) Market
c) Command
d) Combined
e) Free

20. The of a country refers to the rules that regulate behaviour, along with the processes by which the laws of a country are enforced and through which redress for grievances is obtained.
a) Political system
b) Administrative system
c) Economic structure
d) Legal system
e) Ethical system

21. Which of the following describes the concept of intellectual property?
a) Exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and dispose of their work as they see fit.
b) Property, such as computer software, screenplays, musical scores, or chemical formulas for new drugs, that is the product of intellectual activity.
c) Designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products.
d) Document giving the inventor of a new product or process exclusive rights to the manufacturer, use, or sales of that invention.
e) Property that can be digitized and copied

22. Suppose you invent a new product and want to obtain the exclusive rights to manufacture the product. To protect yourself, you should apply for a on the product.
a) Trust
b) Patent
c) Copyright
d) Trademark
e) Logo

23. A composer is able to protect an original musical score from being copied and sold by someone else through protection.
a) Patent
b) Warrant
c) Trademark
d) Copyright
e) Logo

24. are designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products.
a) Copyrights
b) Patents
c) Warrants
d) Trademarks
e) Logos

25. Patents, copyrights, and trademarks are examples of property laws.
a) Intellectual
b) Administrative
c) Official
d) Central
e) Individual

26. What does the acronym GNP stand for?
a) gross national profile
b) gross national product
c) gradual notational profile
d) general natural productivity
e) government natural product

27. In 2001, the World Bank has chosen to replace GNP with .
a) GDP
b) aggregate demand and aggregate supply
c) GRP
d) PPP
e) GNI

28. It has been argued that the economic freedom associated with a economy creates greater incentives for innovation than either a planned or mixed economy.
a) Production
b) Market
c) Commercial
d) Manufacturing
e) Consumer

29. Which of the following involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate?
a) Privatization
b) Simplification
c) Deregulation
d) Socialism
e) Competition

30. What are advantages that accrue to early entrants into a business market referred to as?
a) Standard-class advantages
b) first-mover advantages
c) prime-mover advantages
d) first-stage advantages
e) early adopter advantages

PART B

Essay Questions

Answer all the below questions.

Question 1:
What are the four international organizations that were created? What is the goal of every institution ?

Question 2:
What is intellectual property? What is the philosophy behind intellectual property law? Why is it so important to protect intellectual property rights?

Question 3:
What are the arguments for and the arguments against globalization?

Question 4:
Why do firms invest rather than use exporting to enter foreign markets?

Question 5:
Why do firms from the same industry undertake FDI at the same time? Explain by using the example of Oligopolistic industry .

Question 6:
What are the advantages and disadvantages of FDI on home countries? Explain by using the impact of FDI on the balance of payment of the home country.