End-of-Module Exams 2018 Fall Semester PDF

End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Grading Table Performance Assessment Weighting Grade Weighted Grade Performance Assessment 1 100 % Module gra...

End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Grading Table Performance Assessment Weighting Grade Weighted Grade Performance Assessment 1 100 % Module grade (Evento) ï Rounded ï Marking Table Corrector’s Task No. Points - + initials base Multiple-choice questions base Open Question 1 kesl Open Question 2-4 base Open Question 5 Grade Page 1 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Answer Sheet for Multiple-Choice Questions Indicate the correct answer for each question with a cross or checkmark. For the multiple-choice questions, only your answers on the Answer Sheet will be considered. Answer 1 A. o B. o C. o D. o E. o Answer 2 A. o B. o C. o D. o E. o Answer 3 A. o B. o C. o D. o E. o Answer 4 A. o B. o C. o D. o E. o Answer 5 A. o B. o C. o D. o E. o Answer 6 A. o B. o C. o D. o E. o Answer 7 A. o B. o C. o D. o E. o Answer 8 A. o B. o C. o D. o E. o Answer 9 A. o B. o C. o D. o E. o Answer 10 A. o B. o C. o D. o E. o Answer 11 A. o B. o C. o D. o E. o Answer 12 A. o B. o C. o D. o E. o Answer 13 A. o B. o C. o D. o E. o Answer 14 A. o B. o C. o D. o E. o Answer 15 A. o B. o C. o D. o E. o Answer 16 A. o B. o C. o D. o E. o Answer 17 A. o B. o C. o D. o E. o Answer 18 F. o G. o H. o I. o J. o Page 2 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Multiple-Choice Questions (25 points) 1-Point Multiple-Choice Questions (11 points) Indicate the correct answer for each question with a cross or checkmark. You will receive 1 point for each correct answer. Only 1 answer per question is allowed. A wrong answer will NOT lead to a deduction of points. Questions and Possible Answers 1 Emerging market refers to: A. Any developing country B. A fast-growing developing country C. A fast-growing, economically advanced country D. A least developed but fast-growing country E. A fast-growing consumer market 2 The exercise of political authority at a higher level than the nation-state is often referred to as: A. National sovereignty B. Sub-national governance C. Supra-national governance D. Globalization E. Federalism 3 Natural resource wealth can hinder economic development: A. Because of high price volatility, which creates economic instabilities. B. Because of secessionist incentives of regions rich in natural resources, which creates political instability. C. Because of currency mechanisms that lead to reduced competitiveness of export industries outside the extractive industries. D. Because of a lack of government incentive to support its people’s wellbeing, education, and health. E. All of the above. 4 In all of the following scenarios, the costs of doing business in a country tend to be greater, EXCEPT where: A. Political payoffs are required to gain market access. B. There is a lack of supporting infrastructure. C. Strong labor unions define strict labor regulations. D. Local laws set strict standards with regard to environmental pollution. E. There are limits or caps on damage awards. 5 Which of the following measures is part of the Human Development Index (HDI)? A. Health level measured by average life expectancy at birth B. Political freedom level measured by freedom of press, speech, and assembly. C. Sanitation infrastructure level measured by accessibility to fresh and clean water supply D. Educational level measured by PISA scores E. All of the above 6 The relative decline of Europe in the share of world output and world exports is due to: A. The increase in barriers to foreign trade BY Europe B. The increase in barriers FOR European exports C. The de-industrialization trend in Europe D. The industrialization process in developing economies. E. The long-term consequences of the 2009 World Financial Crisis Page 3 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Questions and Possible Answers 7 Demand for insurance varies across the globe. There are economic, political, and geographical reasons for these differences. What does this graph on penetration in non-life business indicate? A. Insurance penetration increases in a linear manner over time. B. Disposable income influences insurance penetration. C. Rising inflation drives insurance penetration. D. Insurance demand increases slower than GDP growth. E. Level of education pushes insurance penetration. 8 Insurance markets can be categorized in different levels of development (dormant, early, sustained growth, and mature). Imagine that an international insurance company wants to enter one of these markets. Which of the following aspects is characteristic for an insurance market in the sustained growth stage? A. Market restrictions B. Advanced technology C. Initial regulatory framework D. Growing middle class E. Insurability of new risks Page 4 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Questions and Possible Answers 9 This question is based on a case study about Indonesia, “The Story of Mrs. A.”: When Mrs. A.’s husband turned 47, he was forced into retirement due to illness.... Mrs. A. has been the sole breadwinner for her family ever since he retired. Her husband’s medical costs have been a drain on the household budget. In order to meet these expenses, Mrs. A. reduced the capital in her business, and she has had to ask her children and relatives for financial assistance. What is a major implication of a risk management strategy of people in low-income countries when they reduce their equity or productive assets? A. Temporary change of lifestyle B. Loss of income C. Depleted financial reserves D. Increase in working hours E. Reduction of unnecessary expenditures 10 This question is based on a case study about Indonesia, “The Story of Mrs. A.”: When Mrs. A.’s husband turned 47, he was forced into retirement due to illness.... Mrs. A. has been the sole breadwinner for her family ever since he retired. Her husband’s medical costs have been a drain on the household budget. In order to meet these expenses, Mrs. A. reduced the capital in her business, and she has had to ask her children and relatives for financial assistance. Which of the following statements about selling microinsurance to low-income people is incorrect? A. Thin margins make it less interesting for international insurance groups to enter low-income markets. B. People do not know about their actual risks and potential risk management instruments. C. The risks people face are less serious in low-income countries than in developed countries. D. There is a high dependence on informal or traditional risk management arrangements. E. People prefer to save or invest their money in ways that ensure that they will be able to access it later. 11 Common law may be described as: A. General legal principles that evolved over time through court decisions. B. A body of rules governing the ownership of the oceans. C. An index of opinions by law professors. D. Rules issued by an administrative agency. E. General legal principles that evolved over time through the judicial power of the so-called “commoners” – the citizens of a country. Page 5 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: 2-Point Multiple-Choice Questions (14 points) Indicate the correct answer for each question with a cross or checkmark. You will receive 2 points for each correct answer. Only 1 answer per question is allowed. A wrong answer will NOT lead to a deduction of points. Questions and Possible Answers 12 Which of the following assertions about China is NOT true? A. At the outset of the reforms in 1978, China was very poor. It had a per capita GDP that was lower than that of many African countries. B. Since the economic reform program in 1978, China experienced an average GDP growth of close to 10% per year until 2014, lifting 800 million people out of poverty – an unparalleled achievement. C. China’s development has been driven by the western provinces, while development in the coastal areas (where its per capita income is still below the world average) is lagging behind. D. The world reaching its UN millennium development goal of halving extreme poverty was largely driven by China. E. China’s economic rise has fueled the ballooning of the Asian middle class that underpinned global economic convergence and a reduction of inequality between countries. 13 “Made in China 2025“ is a long-term economic program that supports: A. Fewer public research subsidies, in the interest of debt reduction. B. Fewer low-interest loans from state-owned investment funds to avoid venture capital lending glut. C. More foreign direct investment in China to trigger growth for labor-intensive manufacturing. D. More foreign direct investment by China in the interest of technological advancement. E. Higher productivity rate in China’s first sector in the interest of poverty reduction. 14 To measure the quality of governance, the World Bank has defined Worldwide Governance Indicators. Read the following excerpt from a 2018 article on Amnesty International. Which indicator is at stake in the following example? Amnesty International criticizes the extrajudicial executions and summary killings conducted by the police forces in the Philippines. Estimates go as high as to over 20,000 killings since President Rodrigo Duerte’s War on Drugs in the Philippines starting from summer 2016. According to Amnesty: “The deliberate, unlawful and widespread killings of thousands of alleged drug offenders appeared to be systematic, planned, organized and encouraged by the authorities, and may have constituted crimes against humanity. Despite evidence that police and gunmen with links to the police killed or paid others to kill alleged drug offenders in a wave of extrajudicial executions, authorities continued to deny any unlawful deaths. Meaningful investigations into killings of alleged drugs offenders failed to take place; no police officers were known to have been held to account.” A) Voice and accountability B) Government effectiveness C) Regulatory quality D) Rule of law E) Control of corruption Page 6 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Questions and Possible Answers 15 To measure the quality of governance, the World Bank has defined Worldwide Governance Indicators. Read the following excerpt from a 2018 article in USA Today. Which indicator is at stake in the example of Punta Santiago, Puerto Rico, in the aftermath of the hurricane that hit the island in 2017? PUNTA SANTIAGO, Puerto Rico – The fishing pier jutting off the beach in this small fishing community was once the hub of local activity. Today, it sits in splinters. Blue tarps cover rows of roofs on nearby concrete homes and the beachside fish shack, which just a year ago served fresh-caught fried snapper sandwiches, is shuttered. “It’s like the hurricane hit yesterday,” said Antonio Torres, head of the local fishermen’s association. “Everything that was promised never arrived.” A) Voice and Accountability B) Government Effectiveness C) Regulatory Quality D) Rule of Law E) Control of Corruption 16 To measure the quality of governance, the World Bank has defined Worldwide Governance Indicators. Read the following excerpt from a 2018 article in Bloomberg News. Which indicator is strengthened by the Chinese government decision to drop the joint venture requirement? (2 points) “Now it’s official, the government in Beijing has dropped the requirement for foreign car manufacturers to team up with a local joint venture partner – and sooner than expected. BMW AG is poised to become the first foreign car company to take majority control of its Chinese venture as the country opens up one of its biggest industries to foreign ownership despite a worsening trade war with the U.S.” A. Voice and Accountability B. Government Effectiveness C. Regulatory Quality D. Rule of Law E. Control of Corruption 17 An independent heating engineer from Geneva participates in a two-week training course in Norway. You have the following information: Course cost 20,000 CHF Flight and Hotel 5,000 CHF Rent of his office in Geneva 800 CHF Loss of income due to absence of work 10,000 CHF Extra income thanks to continuing education 30,000 CHF How big are the opportunity costs of this training course? A. 800 CHF B. 5,000 CHF C. 10,000 CHF D. 35,000 CHF E. 35,800 CHF Page 7 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Questions and Possible Answers 18 Influence of Colonialism and Decolonization After decolonization, newly independent states that were former European colonies had to build their own legal systems. Which of the following statements is not true? A. Former English colonies usually tended to adopt legal systems that are mainly based on the common law tradition emphasizing the importance of precedents. B. Decolonization usually involved rejecting the legal concepts that had been imposed by the colonial power and replacing them systematically. C. The people who led the struggle against colonial rule and came to power when independence was achieved usually contributed to further Westernize the legal system. D. The legal systems of France’s former colonies in Africa usually rely on codes that systematically copy the French codes. E. Former colonies usually used their new political freedom to embrace the concepts initially brought to them through colonialism. Page 8 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Open Questions 35 points Question 1: Globalization (6 points) 1.1 Name the 3 main trends of the cultural dimension of globalization. (1.5 points) Trend 1 ……………………………………………………………………………………………………… Trend 2 ……………………………………………………………………………………………………… Trend 3 ……………………………………………………………………………………………………… 1.2 Take Oktoberfest as an example to explain how this cultural tradition can be used to exemplify each of the three trends outlined in the previous question. (4.5 points) Trend: ………………………………………………………………………………………………………… Explanation: ………………………………………………………………………………………………………… ……………………..………………………………………………………………………………… ……………………………………………..………………………………………………………… ……………………………………………………………………..………………………………… ……………………………………………………………………………………………..………… ………………………………………………………………………………………………………… …………..…………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 9 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Trend: ………………………………………………………………………………………………………… Explanation: ………………………………………………………………………………………………………… ……………………..………………………………………………………………………………… ……………………………………………..………………………………………………………… ……………………………………………………………………..………………………………… ……………………………………………………………………………………………..………… ………………………………………………………………………………………………………… …………..…………………………………………………………………………………………… Trend: ………………………………………………………………………………………………………… Explanation: ………………………………………………………………………………………………………… ……………………..………………………………………………………………………………… ……………………………………………..………………………………………………………… ……………………………………………………………………..………………………………… ……………………………………………………………………………………………..………… ………………………………………………………………………………………………………… …………..…………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 10 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Question 2: Global Trade (14 points) Assume that Switzerland and Australia only produce and consume toothbrushes and pans. Within a country, all workers are equally productive. However, the two countries differ in their respective productivity in the production of toothbrushes and pans. The following 3 tables show the situation without trade: Employed workers Toothbrush Pan Total worker Switzerland 30 30 60 Australia 60 120 180 Produced quantity Toothbrush Pan Switzerland 15 15 Australia 30 30 Total 45 45 a) Calculate the productivity of the Swiss and Australian workers in the production of toothbrushes and pans and enter these figures in the table below. (2 points) productivity per employee toothbrush pan Switzerland Australia b) How many toothbrushes and how many pans could Switzerland and Australia produce if they produced only toothbrushes or only pans? Enter the respective figures in the table below. (2 points) Max. produced quantity toothbrushes pans Switzerland Australia Page 11 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: c) Calculate the opportunity cost of producing toothbrushes and of pans in both countries. Enter the appropriate figures in the table below. (2 points) Opportunity costs toothbrushes pans Switzerland Australia d) Which country has the absolute or the comparative advantage in the production of toothbrushes and which in the production of pans? (4 points) toothbrush pan Absolute advantage Comparative advantage e) Show how specialization can increase total pan production without changing the overall production of toothbrushes. Enter the appropriate figures in the table below. (4 points) Production with specialization Toothbrushes Pans Switzerland Australia Total 30 Page 12 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Question 3: Exchange Rates (3 points) A new model of Subaru, made in Japan, is successful in sales to Switzerland. Represent the change by an appropriate shift of the supply and/or demand curves for the currency shown. Then record whether the indicated currency appreciates or depreciates as a result of the change by ticking the appropriate box. CHF/JPY QSJPY CHF: Swiss currency JPY: Japanese currency Supply of CHF: QSCHF: Demand of CHF: QDCHF Quantity of JPY: QJPY The Swiss franc appreciates. QDJPY The Swiss franc depreciates. QJPY Question 4: Flexible Exchange Rates, Fixed Exchange Rates, and Currency Union (3 Points) Discuss the relative advantages and disadvantages of flexible exchange rates, fixed exchange rates. ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 13 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………. Question 5: Demographics (9 Points) 5.1 There are 3 mega trends when it comes to demographics and population growth. Name each of them and briefly explain what they stand for and in which part of the world they can be observed. (3 points) Trend 1 ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Trend 2 ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Trend 3 ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 14 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: 5.2 Draw the congruent population pyramid of each of the above-mentioned trends in the charts below. Do not forget to name the x and the y axis. (6 points) Trend 1 ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 15 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Trend 2 ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Trend 3 ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Page 16 of 17 End-of-Module Exams 2018 Fall Semester Module Code: w.BA.XX.1IEBUS-IM.XX Last Name: First Name: Page 17 of 17