History of International Trade Theories

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Questions and Answers

What is emphasized in the concept of the Triple Bottom Line?

  • Employee Relations
  • Environmental Conservation
  • Economic Mission (correct)
  • Competitor Analysis

Which of the following is NOT typically a part of Corporate Social Responsibility (CSR)?

  • Philanthropic Compliance
  • Legal Compliance
  • Ethical Compliance
  • Maximizing Profits (correct)

In managing ethical behavior, which factor is crucial to consider in a cross-cultural context?

  • Formal Codes of Ethics
  • Organizational Practices
  • Written Guidelines
  • Tailored Ethical Training (correct)

What is a key reason why organizations engage in international trade?

<p>Maximizing Profits (B)</p> Signup and view all the answers

Which country became the first to adopt the gold standard in 1821?

<p>United Kingdom (C)</p> Signup and view all the answers

What was a key outcome of the Bretton Woods conference regarding the international monetary system?

<p>Creation of the International Bank for Reconstruction and Development (C)</p> Signup and view all the answers

In which century were the modern firm-based international trade theories developed?

<p>20th century (B)</p> Signup and view all the answers

What is the main difference between FDI and FPI as mentioned in the text?

<p>Control over companies (A)</p> Signup and view all the answers

Which theory proposed by Raymond Vernon is mentioned as part of the modern firm-based international trade theories?

<p>Product Life Cycle Theory (A)</p> Signup and view all the answers

What was a major factor that led to the collapse of the Gold Standard as described in the text?

<p>World War I (A)</p> Signup and view all the answers

Which region saw wars in the 1990s that discouraged Foreign Direct Investment (FDI) and slowed economic growth?

<p>Eastern Europe &amp; Central Asia (A)</p> Signup and view all the answers

Which country struggled with the transition to a free market economy after the collapse of the Soviet Union in 1991?

<p>Russia (D)</p> Signup and view all the answers

Which Asian country is known for its top 3 global economy status and has faced criticism for its trade practices?

<p>Japan (A)</p> Signup and view all the answers

Which continent is characterized by large income disparity, widespread poverty, and political instability according to the text?

<p>South America (A)</p> Signup and view all the answers

Which legal environment type is influenced by religious principles according to the text?

<p>Religious Law (D)</p> Signup and view all the answers

What type of laws affect transactions by imposing restrictions like sanctions, embargos, and export controls?

<p>Laws affecting transactions (A)</p> Signup and view all the answers

Which factor is considered when assessing political risks related to government control according to the text?

<p>Stability vs Arbitrary change to policies/laws (C)</p> Signup and view all the answers

In terms of cultural characteristics, what does 'culture defined' refer to according to the text?

<p>'Characteristics of culture' (B)</p> Signup and view all the answers

'Resource base', 'Investments in infrastructure & Human Capital', and 'Technology Transfer' are foundations of which environment according to the text?

<p>'Technological Environment' (D)</p> Signup and view all the answers

What do laws protecting intellectual rights and international treaties aim to protect according to the text?

<p>Intellectual Property (IP) Rights (D)</p> Signup and view all the answers

What are the common characteristics of South America according to the text?

<p>Large income disparity and widespread poverty (C)</p> Signup and view all the answers

Which continent is characterized by having natural resources like oil-rich countries and requiring diversification beyond oil?

<p>Middle East (A)</p> Signup and view all the answers

Flashcards

Triple Bottom Line

Emphasizes economic, environmental and social impact.

CSR Component

Maximizing profits is a goal, not a responsibility of CSR.

Ethical Behavior (Cross-Cultural)

Tailoring ethical training to fit diverse cultural norms is essential.

International Trade Reason

Companies engage in international trade to seek bigger profits.

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Gold Standard Origin

The United Kingdom first adopted the standard in 1821.

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Bretton Woods Outcome

The conference led to the creation of the International Bank.

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Trade Theories Era

Modern firm-based international trade theories appeared in the 20th century.

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FDI vs FPI

FDI involves control over companies, while FPI does not.

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Raymond Vernon's Theory

Product Life Cycle Theory is one of the theories developed by Raymond Vernon.

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Gold Standard Collapse

World War I significantly contributed to the collapse of the Standard.

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FDI Discouragement

Wars in Eastern Europe & Central Asia slowed growth.

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Transition Challenges (Russia)

Russia struggled after the Soviet Union collapse.

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Laws Affecting Transactions

Laws affecting transactions include sanctions, embargos and export controls.

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Political Risks Factor

Government control involves stability vs arbitrary policy changes.

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Culture Defined

Culture defined relates to the characteristics of a culture.

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Technological Environment

Resource base, investments, and technology are foundations of the technological environment.

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Intellectual Property Rights

Treaties aimed to protect intellectual property rights.

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South America Characteristics

Large disparity in income and widespread poverty.

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Middle East Economy

Middle East is characterized by oil-rich countries with need for diversification.

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Asian Economy

Japan is known for its top economy status.

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Legal Environment Type

Religious law is influenced by religious principles.

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