AGB 302 Final Exam: 100 Questions with Answers, Exams of Business Economics

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AGB 302 Final Exam | 100 Questions with 100%

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1. which of the following is a step in the shift towards a market based economic system? - ✔️✔️ creation of a legal system to safeguard property rights
2. design and names by which merchants or manufacturers designate and differentiate their products are known as __________ - ✔️✔️ trademarks
3. ________, a nobel prize-winning economist, has argued that development is not just an economic process, but it is a political one as well. - ✔️✔️ amartya sen
4. in several western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to ________. - ✔️✔️ privatization
5. one of the reasons for the spread of democracy is the emergence of _____________ who have pushed for democratic reforms. - ✔️✔️ increasingly prosperous middle and working classes
6. which of the following areas of international trade is regulated by the Foreign Corrupt Practice Act? - ✔️✔️ preventing bribery and unethical acts in the conduct of international business

7. the tenet of ___________ is that the welfare of society is best served by letting people pursue their own economic self-interest. - ✔️✔️ individualism
8. the state can expropriate the profits from innovation through legal means, such as ____________. - ✔️✔️ excessive taxation
9. a free market economy in which property rights are protected leads to subsequent economic growth, which often leads to the establishment of: - ✔️✔️ a democratic regime
10. under the ___________, cases are judged with reference to three characteristics: tradition, precedent, and custom. - ✔️✔️ common law system
11. anecdotal comparisons suggest that the assertion that nations that invest more in _________ will have higher growth rates is true. - ✔️✔️ education
12. which of the following helps in adjusting GNI such that it accounts for the differences in the cost of living? - ✔️✔️ purchasing power party (PPP) adjustment
13. in a ___________ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning. - ✔️✔️ mixed

14. a market economy encourages innovation because: - ✔️✔️ economic freedom leads to greater incentives for innovation
15. several of the fastest-growing asian economies adopted more ___________ governments during the past three decades, including South Korea and Taiwan. - ✔️✔️ democratic
16. which of the following statements about the legal systems of countries is true? - ✔️✔️ they can affect the attractiveness of a country as an investment site or market.
17. modern socialism has been popularized largely through the work of ____________. - ✔️✔️ karl marx
18. which of the following is a measure that is developed by the United Nations to measure the quality of life in different nations? - ✔️✔️ human development index
19. in a pure market economy: - ✔️✔️ production is determined by the interaction of supply and demand.
20. interdependent political, economic, and legal systems of a country make up its: - ✔️✔️ political economy

21. child labor is permitted and widely employed in country x. which of the following approaches to business ethics would justify the actions of the multinational company? - ✔️✔️ cultural relativism
22. the __________ approaches to ethics hold that the moral worth of actions or practices is determined by their consequences. - ✔️✔️ utilitarian
23. which of the following refers to the values and norms that the employees of an organization share? - ✔️✔️ organization culture
24. which of the following statements about values and norms of a culture is true? - ✔️✔️ the values and norms of a society influence social structure
25. according to Islam, those who hold property are regarded as _____________. - ✔️✔️ trustees
26. which of the following is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime? - ✔️✔️ caste system

27. the __________ occurs when a resource is shared by all, but owned by no one, is overused by individuals, resulting in its degradation. - ✔️✔️ tragedy of the commons
28. companies can strengthen the __________ of employees by committing themselves to not retaliate against employees who complain about unethical actions. - ✔️✔️ moral courage
29. a Japanese executive's ritual of presenting a business card to a foreign business executive is an example of ___________. - ✔️✔️ folkways
30. ethical systems are: - ✔️✔️ a set of moral principles, or values, that are used to guide and shape behavior
31. which of the following sociologists made a connection between protestant ethics and "the spirit of capitalism"? - ✔️✔️ max weber
32. which of the following is a consequence of the emphasis on individual performance in many western societies? - ✔️✔️ high degrees of managerial mobility
33. which of the following statements is true about a class system? - ✔️✔️ social mobility within a class system varies from society to society

34. there are three values central to the confucian system of ethics that have very important economic implications. which of the following is one of these? - ✔️✔️ honesty in dealings with others
35. the righteous moralist suggests that: - ✔️✔️ if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either
36. the convention on combating bribery of foreign public officials in international business transactions excludes: - ✔️✔️ facilitating payments made to expedite routine government action
37. a firm's ________ include customers, suppliers, and lenders - ✔️✔️ external stakeholders
38. a situation in which none of the available alternatives seems morally acceptable is called: - ✔️✔️ an ethical dilemma
39. according to the Friedman doctrine: - ✔️✔️ businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business

40. for international businesses, the connection between culture and competitive advantage is important because: - ✔️✔️ a strong connection is likely to produce the most viable competitors
41. inadequate protections for intellectual property: - ✔️✔️ reduce the incentive for innovation
42. which of the following refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country? - ✔️✔️ free trade
43. which of the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries? - ✔️✔️ new trade theory
44. a key issue in the "millennium round" of the WTO was to: - ✔️✔️ further reduce barriers to cross-border trade and investment
45. many firms, of all national origins, increasingly depend on __________ for their competitive advantage - ✔️✔️ globally dispersed production systems
46. WTO rules allow countries to ___________ foreign goods that are being sold cheaper than at home, or below their cost of production, even when domestic

producers can show that they are being harmed - ✔️✔️ impose antidumping duties on

47. the theory of comparative advantage suggests that trade is a __________ game in which all countries that participate realize economic gains - ✔️✔️ positive-sum
48. ____________ are levied as a proportion of the value of the imported good - ✔️✔️ ad valorem tariffs
49. according to Ricardo's theory of comparative advantage, a country should produce goods: - ✔️✔️ that it produces most efficiently
50. ___________ are unit cost reductions associated with a large scale of output - ✔️✔️ economies of scale
51. the _________ argues that a large proportion of the world's new products had been developed by U.S. firms - ✔️✔️ product life-cycle theory
52. a company that sells its product in a foreign market below the cost of production may be accused of - ✔️✔️ dumping
53. David Ricardo's theory of comparative advantage explains global trade in terms of the: - ✔️✔️ international differences in labor productivity

54. according to the infant industry argument, many developing countries have a potential ____________ in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries - ✔️✔️ comparative advantage
55. krugman has suggested that trade policy designed to retaliate against another country's trade policy would: - ✔️✔️ hurt the citizens of both countries
56. strategic trade policy suggests that a government should use _________ to support promising firms that are active in newly emerging industries - ✔️✔️ subsidies
57. a country has an absolute advantage in the production of a product when it: - ✔️✔️ is more efficient than any other country in producing it
58. a ___________ helps domestic producers to compete against foreign imports - ✔️✔️ subsidy
59. ____________ argued that countries should specialize in the production of goods for which they have an absolute advantage - ✔️✔️ adam smith

60. the two most common methods of restricting inward FDI are ownership restraints and __________ - ✔️✔️ performance requirements
61. investors who purchase a fixed-rate bond receive: - ✔️✔️ a fixed set of cash payoffs
62. a ____________ brings together those who want to invest money and those who want to borrow money - ✔️✔️ capital market
63. which of the following factors has made the united states an attractive target for foreign direct investment? - ✔️✔️ its wealthy domestic markets
64. a Japanese car manufacturer acquires an italian producer of car tires. this is an example of an ____________ - ✔️✔️ acquisition
65. __________ refers to the movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy - ✔️✔️ systematic risk
66. a ______________ requires a corporation to repay a predetermined portion of the loan amount at regular intervals regardless of how much profit it is making - ✔️✔️ debt loan

67. an integrated international capital market is ________ compared to a nonintegrated market - ✔️✔️ highly volatile
68. _____________ perform a direct connection function in a capital market - ✔️✔️ investment banks
69. market makers are: - ✔️✔️ financial service companies that connect investors and borrowers
70. the cost of capital is: - ✔️✔️ higher in a purely domestic capital market than in a global market
71. recent years have seen a __________ in the number of countries that adhere to a radical ideology regarding FDI - ✔️✔️ marked decline
72. which of the following is an example of a greenfield investment? - ✔️✔️ a Chinese sugar maker setting up a sugar crushing facility in Cuba
73. an aspect of _________ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants - ✔️✔️ pragmatic nationalism

74. borrowers can hedge against foreign exchange risks by entering into a ________ contract - ✔️✔️ forward
75. developing nations currently account for _________ of FDI in the form of cross- border mergers and acquisitions - ✔️✔️ about one-third or less
76. ____________ gives a firm tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability - ✔️✔️ foreign direct investment
77. __________ deposits are regulated in most industrialized countries - ✔️✔️ domestic currency
78. the largest source country for FDI has been _____________ - ✔️✔️ the United States
79. ____________ argues that FDI is a benefit to both the source country and to the host country - ✔️✔️ the free market view
80. from least integrated to most integrated, the levels of economic integration are a:
    • ✔️✔️ free trade area, customs union, common market, economic union, and political union

81. an exchange rate of 1 euro = $1.30 indicates that: - ✔️✔️ one euro buys 1. dollars
82. restrictions on external convertibility can: - ✔️✔️ limit domestic companies from investing abroad
83. country x and country y reach an agreement to boost bilateral trade. which level of economic integration is this an example of? - ✔️✔️ free trade area
84. on average, studies indicate that NAFTA's overall impact has been: - ✔️✔️ small but positive
85. an ___________ is one in which prices do not reflect all available information - ✔️✔️ inefficient market
86. inflation occurs when: - ✔️✔️ the quantity of money in circulation rises faster than the stock of goods and services
87. when a tourist goes to a bank in a foreign country to convert money into the local currency, the exchange rate used is the ____________ - ✔️✔️ spot rate
88. a ____________ is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates - ✔️✔️ currency swap

89. the rate at which one currency is converted into another is known as the _____________ - ✔️✔️ exchange rate
90. the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates is known as: - ✔️✔️ currency speculation
91. the movement toward regional economic integration has been most successful in __________ - ✔️✔️ europe
92. a political benefit of economic integration is that it: - ✔️✔️ reduces the potential for violent conflict
93. to ensure that a free trade agreement does not result in trade diversion, which of the following has to come within the scope of WTO? - ✔️✔️ non-tariff barriers
94. the risk that arises from volatile changes in exchange rates is known as ___________ - ✔️✔️ foreign exchange risk
95. an ____________ entails even closer economic integration and cooperation than a common market - ✔️✔️ economic union

96. the __________ is primarily a consultative rather than legislative body - ✔️✔️ European parliament
97. the _________ is a global network of banks, brokers, and foreign exchange dealers connected by electronic communication systems - ✔️✔️ foreign exchange market
98. which of the following is a reason why the European union is considered an imperfect economic union? - ✔️✔️ not all members of the union have adopted the euro
99. which feature of a common market differentiates it from a customs union? - ✔️✔️ ability of factors of production to move freely between members