Globalization Chapter 1 Quiz

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Questions and Answers

Which type of totalitarianism is characterized by a large family controlling the government, often seen in countries like Dubai and some African nations?

Communist totalitarianism

Theocratic totalitarianism

Right-wing totalitarianism

Tribal totalitarianism (correct)

In a command economy, who primarily controls the allocation of resources, production, and prices?

The government (correct)

Market forces

Private individuals

International organizations

What is a defining characteristic of a market economy?

Centralized planning of resource allocation

Prices determined by supply and demand (correct)

Strict price controls set by the government

Government ownership of all industries

Which type of legal system is based on a comprehensive set of written laws and codes?

Civil law Signup and view all the answers

In a totalitarian regime, which of the following freedoms are typically denied to citizens?

All of the above Signup and view all the answers

Which of the following is NOT a characteristic of a totalitarian state?

Regular, fair elections Signup and view all the answers

What is the primary purpose of a contract?

To create a legally binding agreement between parties Signup and view all the answers

In a mixed economy, which of the following is true?

Some sectors are privately owned while others are government controlled. Signup and view all the answers

Which of the following factors is NOT directly tied to fostering innovation and entrepreneurship according to the text?

A strong military Signup and view all the answers

What type of economic system does the text suggest is the MOST conducive to innovation and entrepreneurship?

Market Economy Signup and view all the answers

How does the text explain the relationship between economic growth and democracy?

Economic growth is often followed by the establishment of a democratic regime. Signup and view all the answers

Why is it crucial to have strong property rights for innovation and entrepreneurship?

They prevent the state from expropriating the profits from innovative efforts. Signup and view all the answers

What does the text suggest about the economic performance of countries like South Korea, Taiwan, Singapore, and Hong Kong?

They initially had undemocratic governments but later became more democratic. Signup and view all the answers

How is education attainment measured?

A combination of adult literacy rate and enrollment in primary, secondary, and tertiary education. Signup and view all the answers

What is considered sufficient in terms of average incomes for basic needs in a country?

An average income that allows citizens to meet basic needs like food, shelter, and healthcare. Signup and view all the answers

What does the text suggest about the importance of innovation in the long run?

Innovation is necessary for long-term economic growth. Signup and view all the answers

What does political risk primarily concern in a country's business environment?

The likelihood of political changes affecting business profitability Signup and view all the answers

Which of the following best describes economic risk?

The possibility of severe economic mismanagement impacting investment Signup and view all the answers

What is a potential consequence of doing business in totalitarian countries?

Support for regimes that violate human rights Signup and view all the answers

Why may international firms face ethical dilemmas regarding standards of product safety?

The disparity in safety standards between home and host countries Signup and view all the answers

What is an important factor that determines the overall attractiveness of a country for investment?

The balance of benefits, costs, and risks involved Signup and view all the answers

What is an implication of cultural differences in the workplace?

Influence on values and workplace behavior Signup and view all the answers

Legal risk primarily involves what aspect of international business?

The chance of contracts being broken by trading partners Signup and view all the answers

What is a common unethical practice that businesses might face in totalitarian markets?

Corruption and manipulation of legal practices Signup and view all the answers

What has contributed to the relative decline of U.S. and British multinationals in the global marketplace?

The globalization of the world economy Signup and view all the answers

Which trend has been observed among smaller firms since the 1960s?

Increased involvement in international trade and investment Signup and view all the answers

What is happening with the economies of most former communist states?

Their economic conditions remain poor and uncertain Signup and view all the answers

What factor has made China emerge as a potential industrial superpower?

Progressive movement towards greater free market reforms Signup and view all the answers

What contributes to the attractiveness of Latin America for foreign direct investment (FDI)?

Reduction in debt and inflation along with privatization of state-owned enterprises Signup and view all the answers

What did the U.S. dominance in multinational enterprises reflect after World War II?

U.S. economic dominance Signup and view all the answers

How have small businesses been contributing to international trade?

Establishing subsidiaries in multiple countries Signup and view all the answers

Which country has been noted for a rapid economic transition towards free markets?

India Signup and view all the answers

What are the major drivers of globalization, according to the provided text? (Select all that apply)

Falling barriers to cross-border trade Signup and view all the answers

Which of the following is NOT a company mentioned in the opening case about the globalization of production at Bombardier?

Alstom SA Signup and view all the answers

The "Globalization of Markets" phenomenon refers to:

The consolidation of independent national markets into a single global marketplace Signup and view all the answers

What does the text suggest about the role of labor in globalization?

While labor costs can be cheaper in some countries, it doesn't mean that workers in those countries are exploited. Signup and view all the answers

Which of the following is NOT a facet of globalization mentioned in the text?

Globalization of Government Signup and view all the answers

What is a key characteristic of the globalization of markets?

The convergence of consumer tastes and preferences on a global scale. Signup and view all the answers

Which of the following is an example of a global institution mentioned in the text?

All of the above Signup and view all the answers

What does the text suggest about the impact of globalization on national sovereignty?

Globalization undermines national sovereignty by reducing government control over certain aspects of economy. Signup and view all the answers

What is the main reason why ethical dilemmas are vexing?

They often present multiple possible courses of action, making it difficult to determine the right one. Signup and view all the answers

Which of the following practices is NOT directly related to establishing a strong ethical culture within a business?

Prioritizing financial performance over ethical considerations. Signup and view all the answers

What is the concept of "noblesse oblige" in the context of corporate social responsibility (CSR)?

A moral obligation for businesses to use their power and influence to benefit society. Signup and view all the answers

Which of the following CSR stances is characterized by a company exceeding customer expectations and addressing concerns proactively?

Accommodative stance. Signup and view all the answers

What is the primary reason why multinational corporations are said to have a social responsibility?

They have the power to influence the global economy, and therefore should consider the social impact of their actions. Signup and view all the answers

What does the "obstructionist stance" in regards to CSR entail?

Companies create barriers and make it difficult for customers to voice their concerns. Signup and view all the answers

From the content, how can a manager ensure ethical issues are considered in business decisions?

By ensuring that leaders act in accordance with the ethical rhetoric they preach. Signup and view all the answers

What is the main idea of the text regarding ethical decision-making and CSR?

Businesses have a moral obligation to consider the social consequences of their decisions. Signup and view all the answers

Study Notes

Course Outline

Don't need textbook, connect available online
Risk assignment (presentation) February 12th
Risk Management Country Assignment (presentation)
Group size is 3-6 members per group
Presentation assignment requires 3-5 pages (15%)
Students can choose 3 countries (from different continents)
Final exam: 50-60 multiple choice questions, 2-3 case studies
Course project: team-based

Chapter 1 - Globalization

Learning Objectives:
- Define globalization, globalization of markets, globalization of production
- Examine global institutions and their functions
- Examine Globalization Drivers
- Illustrate changes in global economy demographics
- Understand the globalization debate; impact on job security, income, labor & environmental policies, and national sovereignty
- Understand opportunities & challenges for business managers in Canada & beyond
- Understand establishing & committing to a global supply chain code of conduct
- Understand how establishing a global supply chain code of conduct results in sustainable operations
Labor costs are lower in some countries
China and India were the last two countries to join globalization
Opening Case: Globalization of Production at Bombardier - case study details included (DMC, Kobe Steel, Chengdu Sigma Precision Components, Chemetall GMBH, Cheltenham Tool Co., Centro Tratamientos, and Castle Metals)
Lack of barriers to trade and investment (transportation, commercial line)

Other General Information

Several companies involved in globalization cases, locations of these companies (US, Japan, China, Germany, UK, Spain, Mexico)
Important global institutions like the United Nations, World Trade Organization (WTO), International Monetary Fund (IMF), World Bank also mentioned.

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Description

Test your understanding of the key concepts from Chapter 1 on globalization. This quiz covers definitions, global institutions, drivers of globalization, and the related economic impact. Assess your knowledge of the opportunities and challenges faced by business managers in a global context.