Globalization and Political Economy Quiz

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Questions and Answers

What is the maximum duration allowed for the midterm exam?

80 minutes (correct)

60 minutes

75 minutes

90 minutes

What type of questions will NOT be included in the midterm exam?

General knowledge questions

True/False questions

Essay questions

Questions involving specific statistics (correct)

Which materials are explicitly stated as necessary for taking the midterm exam?

Pencil and eraser (correct)

Paper and notes

Calculator and textbook

Laptop and pen

Which factor does NOT contribute to the globalization of markets?

High-cost transportation Signup and view all the answers

What does globalization of production primarily refer to?

Sourcing goods and services from various locations Signup and view all the answers

What is a lingua franca?

A third or link language understood by parties speaking different languages Signup and view all the answers

How does language influence culture?

It allows societies to express perceptions and interactions differently Signup and view all the answers

What is one direct influence of education on culture?

Imparting basic facts about societal norms and politics Signup and view all the answers

Why is understanding nonverbal cues important in cross-cultural communication?

It can lead to significant communication failures Signup and view all the answers

What impact do education levels have on business?

They can indicate what kinds of products might sell in a country Signup and view all the answers

What is one of the key components of the shift toward a market-based system?

Privatization of state property Signup and view all the answers

Which factor is NOT part of the PESTEL analysis for evaluating international expansion?

Cultural heritage Signup and view all the answers

How do countries with strong property rights influence multinational companies?

They encourage higher rates of economic growth. Signup and view all the answers

What does deregulation in a market-based system mainly involve?

Removing restrictions to market operations Signup and view all the answers

Which of the following is a socio-economic factor considered in the PESTEL analysis?

Consumer attitudes and buying patterns Signup and view all the answers

What is an important aspect to consider regarding foreign trade policy in international business?

Tax arrangements Signup and view all the answers

Which of the following best describes technological incentives in PESTEL analysis?

Investment in R&D and innovation activities Signup and view all the answers

What role does political stability play in economic growth in the context of the political economy?

It is critical for sustaining economic growth rates. Signup and view all the answers

What does the naïve immoralist perspective suggest a manager do when observing unethical practices in other nations?

Imitate the unethical practices of others Signup and view all the answers

Which ethical approach emphasizes the consequences of actions to determine their moral worth?

Utilitarian ethics Signup and view all the answers

What is a primary criticism of utilitarian ethics?

It fails to account for justice and fairness Signup and view all the answers

According to Kantian ethics, how should individuals be treated?

As ends in themselves Signup and view all the answers

What is one recommendation for managers to make ethical decisions?

Promote a high value on ethical behavior within the organization Signup and view all the answers

What challenge is often faced in deontological ethics?

Consensus on which rules and values to uphold Signup and view all the answers

Why should managers hire individuals with strong ethics?

To build a reliable ethical climate within the organization Signup and view all the answers

What is a key aspect of a code of ethics for a business?

It formally states the ethical priorities of the business Signup and view all the answers

What is a limitation of unrestricted free trade according to economic theory?

Resources may not always be immobile. Signup and view all the answers

According to the Heckscher-Ohlin theory, what will countries likely do?

Export goods that utilize locally abundant factors. Signup and view all the answers

What effect does free trade have on wages in rich countries, according to the Samuelson critique?

It can lower wages in some circumstances. Signup and view all the answers

What phenomenon is described by Wassily Leontief's findings regarding U.S. trade?

The discrepancy known as the Leontief Paradox. Signup and view all the answers

What dynamic effect of trade can lead to economic growth?

Increased availability of foreign resources. Signup and view all the answers

The product life-cycle theory posits that as products mature, what changes?

Sales locations and optimal production locations change. Signup and view all the answers

Which of the following is a potential consequence of offshoring services jobs, as suggested in the Samuelson critique?

It can cause a mass inward migration into wealthy countries. Signup and view all the answers

What did Leontief's paradox reveal about U.S. trade patterns?

The predicted relationship of capital-intensive exports was incorrect. Signup and view all the answers

Study Notes

Midterm Details

The exam will be 80 minutes long, consisting of 50 multiple choice questions, each worth 1 mark.
Bring a pencil and eraser to the exam.
Study the slides provided and utilize the corresponding pages in the textbook, as indicated in the slides.
Questions will not include specific numbers, such as statistics or rankings.

Globalization of Markets

The merging of separate national markets into one global market is driven by low-cost transportation and global communications networks.

Globalization of Production

Sourcing goods and services from different locations around the world leverages national differences in costs and quality of factors of production.

Political Economy Differences

Countries with democratic regimes, market-based economic policies, and strong property rights protection tend to have higher economic growth rates.
The benefits, costs, and risks of doing business in a country are influenced by its political, economic, and legal systems.

PESTEL Analysis

PESTEL analysis helps evaluate the suitability of a country for international expansion.
It identifies potential benefits, costs, and risks of global operations across political, economic, social, technological, environmental, and legal factors.

Language & Culture

Language shapes how people communicate and perceive the world, impacting cultural differences.
Countries with multiple languages often have diverse cultures.
Understanding nonverbal cues in other cultures is crucial for effective communication.

The Role of Education

Formal education provides individuals with essential skills and values, influencing a nation's competitive advantage.
Education levels can indicate suitable product markets.

Culture & The Workplace

Managers should be aware of ethical norms and how they might differ across cultures.

Ethical Approaches

Utilitarian ethics: The moral worth of actions is based on their consequences, aiming for the best balance of good over bad outcomes.
Kantian Ethics: People should be treated as ends, not merely as means to an end.

Deontological Models

Focuses on upholding fundamental rights, regardless of consequences.

Ethical Decision-Making

Hire ethical individuals: Emphasize ethical behavior in hiring and promotion processes.
Build a strong ethical culture: Articulate values that prioritize ethics, implement a code of ethics, and incentivize ethical behavior.

Trade Advantages

Unrestricted free trade offers potential gains, but complexities arise: resource immobility, diminishing returns, and dynamic effects on economic growth.

Heckscher-Ohlin Theory

Explains comparative advantage based on differences in national factor endowments (land, labor, capital), leading countries to export goods intensive in locally abundant factors and import goods intensive in scarce factors.

Leontief Paradox

Challenges the Heckscher-Ohlin theory, as the U.S., capital-abundant, exported goods less capital-intensive than its imports.

Product Life-Cycle Theory

The location of sales and optimal production change as products mature, influencing trade flows.

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Description

This quiz examines essential concepts related to the globalization of markets and production, along with the impact of political economy on economic growth. Prepare by reviewing the provided study slides and textbook pages. Test your understanding of key theories and practical implications.