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BUSI 3250 Final Exam Questions And Answers With Verified Solutions, Exams of Business Economics

BUSI 3250 Final Exam Questions And Answers With Verified Solutions

Typology: Exams

2024/2025

Available from 11/25/2024

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BUSI 3250 Final Exam Questions And Answers With

Verified Solutions

T/F. One of the significant differences between formal and informal institutions is how they gain compliance. True T/F. The United Nations operates with voluntary agreements, so it is essentially an informal institution. True T/F. Permanent members of the UN Security Council vote on Security Council measures and only the Secretary- General of the UN has veto power. False, everyone on the security council has the power to veto T/F. The World Bank is made up of one large institution, the International Development Association, and three smaller institutions. False T/F. The International Finance Corporation (IFC) invests in companies and financial institutions in developing countries. True T/F. The WTO has negotiated a TRIPS agreement whereby property rights do not take precedence over public health. True T/F. ASEAN, whose initial, political goal was to foster peaceful relations among members, includes China as its core member. False T/F. The EU is administered by the European Commission a group composed of six commissioners, elected at the EU level. False, there are 28. One for every member-country With respect to the current state of global problems, Mark Malloch Brown, former deputy secretary-general of the United Nations, suggests that A.) as the world becomes more closely connected, it becomes less governable at the national level B.) the UN is the only institution that can help us deal with complexity C.) complexity can be addressed with trade organizations such as the EU and NAFTA D.) military alliances are needed for increased peace in an increasingly complex world A, as the world becomes more closely connected, it becomes less governable at the national level

At the end of World War II, the UN called for the conference that set u[ the World Bank and the IMF. The conference was held in A.) San Francisco, California B.) Yalta, Soviet Union C.) Grasleben, Germany D.) Bretton Woods, New Hampshire D, Bretton Woods, New Hampshire T/F. CIBER is an international business research and education program located at the U.S. universities. True T/F. Often new exporters think that they won't have to localize their approach, assuming that a marketing technique or distribution system that works in one country will work in another. True T/F. The sales agreement should specify as simply as possible the duties of the buyer and the firm. True T/F. On an open account, the buyer assumes all of the payment risk. False T/F. A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts. True T/F. Free trade zones are areas designed by the government of a country for duty-free entry of imported goods. True T/F. A straight bill of lading is nonnegotiable. True Managers generally mention three areas in which they lack knowledge related to exporting, including identification of foreign markets, export procedures and A.) identifying international agents B.) identifying international distributors C.) payment and financing procedures D.) hiring a customs broker C, payment and financing procedures Once a firm has determined there is a need for the firm's products in a foreign market, the next step is to

A.) request information from the International Trade Administration B.) choose between exporting or licensing C.) set up its own export operation D.) draft the export marketing plan D, draft the export marketing plan Which organization offers a matching service, bringing potential exporters together with business partners in specific markets? A.) Global Markets Unit B.) U.S. Department of Commerce C.)Enforcement and Compliance Unit D.) Small Business Administration B.) U.S. Department of Commerce T/F. Outsourcing is hiring others to do noncore activities. True T/F. It has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory. True T/F. The "over-the-wall" approach to product design involves an initial step in which the designers prepare the product's design, followed by sending the newly created design to the company's manufacturing engineers. True T/F. Logistics refers to managerial functions associated with the movement of raw materials and work in progress, but not finished goods. False T/F. When production equipment is similar, home office control of quality in foreign affiliates is more difficult because management must ensure that all plants adhere to the same standard. False Which of these measures would typically be used in measuring supply chain performance? A.) salesperson turnover B.) orders delivered on time C.) website click-through rate D.) advertising results B, orders delivered on time

Using cross-functional and customer participation in the design stage is a type of _________________ engineering. A.) concurrent B.) parallel C.) nontraditional D.) sourced A, concurrent What is a downside of flexible manufacturing? A.) Changes are made slowly B.) Changes in the production line cost money C.) The company receives more, smaller orders D.) Suppliers are not involved B, Changes in the production line cost money The output of a synchronized manufacturing system is set A.) at the capacity of the operation with the highest output B.) at the output of the slowest operation that is working at full capacity C.) at the level that permits the system to be balanced D.) so that all production operations can produce the same amount to eliminate stockpiling B, at the output of the slowest operation that is working at full capacity In synchronous manufacturing, a production increase at the bottleneck means an increase A.) in the machine's idle time B.) for the entire production system C.) in unwanted inventory D.) in work stoppage B, for the entire production system Association of Southeast Asian Nations (ASEAN) the 10-member Association of Southeast Asian Nations (ASEAN) was formed in 1967 to foster peaceful relations among members and offer mutual protection against political threats (growth of communism in that region). It began as a cooperative military and security arrangement, in the context of the conflict in what was then known as Indochina.

New Institutional Theory Understanding of institutions as social constructs, a collection of norms that structure the relations of individuals to one another Formal Institutions Institutions that influence behavior through laws and regulations Informal Institutions - Institutions that influence behavior through norms, values, customs, and ideologies

  • normative: propagate principles and broadly represent 'humanity' (WTO, AICPA, GAAP, UN, NGOs)
  • cognitive (Guanxi) United Nations Organization of 193 countries dedicated to the promotion of peace and stability of the world General Assembly Deliberative body of the UN made up of all member-nations, each with one vote regardless of size, wealth, or power Security Council Main peacekeeping body of the UN, composed of 15 members including 5 permanent members Economic and Social Council (ECOSOC) UN body concerned with economic and social issues such as trade, development, education, and human rights International Court Justice (ICJ) - UN body that makes legal decisions involving disputes between national governments
  • Also known as the World Court
  • serve 9 year terms Secretariat - The staff of the UN, headed by the secretary-general
  • serves a 5 year term Bretton Woods 1944 conference at which Allied nations' treasury and central bank representatives met to establish the International Monetary Fund and the World Bank

International Monetary Fund (IMF) - Institution that fosters global monetary cooperation, financial stability, internat. trade, high employment & sustainable economic growth, and reduction of poverty

  • established at BW World Bank - Institution that lends money for development projects focused on reducing poverty
  • established at BW Special Drawing Right (SDR) An internat. reserve asset established by the IMF Par Value Stated value Organisation for Economic Co-operation and Development (OECD) Group of developed countries dedicated to promoting their own and other nations' economic expansion World Trade Organization (WTO) - An international organization that establishes and helps implement rules of trade between nations
  • started in 1955 6 Basic WTO Principles - Trade without discrimination
  • Freer trade, gradually, through negotiation
  • Predictability, through binding and transparency
  • Promoting fair competition
  • Encouraging development and economic reform
  • Protecting the environment Doha Development Agenda WTO extended conference on trade, also known as the Doha Round Trade-Related Intellectual Property Rights (TRIPS) The WTO agreement that protects copyrights, trademarks, trade secrets, and other intellectual property matters Free Trade Area (FTA) Area in which tariffs among members have been eliminated, but members keep their external tariffs

Customs Union Collaboration that adds common external tariffs to an FTA Common Market of the South (Mercosur or Mercosul) Currently a South American customs union of Argentine, Paraguay, Brazil, Uruguay, and Venezuela, with associate member Chile, Bolivia, Colombia, Ecuador, and Peru Common Market Customs union that includes mobility of services, people, and capital within the union Economic Integration Integration on economic and political levels North American Free Trade Agreement (NAFTA) Agreement creating a free trade area among Canada, Mexico, and the United States European Union (EU) A body of 28 European countries committed to economic and political integration Economic and Monetary Union (EMU) EU group that established use of the euro in the 18-country euro zone European Parliament EU legislative body whose members are popularly elected from member-nations Council of the European Union The EU's primary policy-setting institution European Commission Body responsible for the EU's day-to-day operations Terms of Sale Conditions of a sale that stipulate the point at which costs and risks are borne by the buyer Incoterms Universal trade terminology developed by the International Chamber of Commerce (international commerce terms) Letter of Credit (L/C) Doc issued by the buyer's bank in which the bank promises to pay the seller a specified amount under specified conditions

Confirmed L/C A confirmation made by a correspondent bank in the seller's country by which it agrees to honor the issuing bank's letter of credit Irrevocable L/C A stipulation that the L/C cannot be canceled without the seller's consent Air Waybill a bill of lading issued by an air carrier Pro Form Invoice Exporter's formal quotation, containing a description of the merchandise, price, delivery, time, method of shipping, terms of sale, and points of exit and entry Export Draft An unconditional order drawn by the seller that instructs that buyer to pay the draft on presentation or at an agreed future date and that must be paid before the buyer receives shipping documents US Export-Import Bank (Ex-Im Bank) Government agency that provides loans, guarantees and insurance programs to support American exporters Overseas Private Investment Corp (OPIC) A government corporation that offers US investors in developing countries insurance against expropriation, currency inconvertibly, and damages from wars and revolutions Free Trade Zone (FTZ) An area designated by a government as outside its customs territory Customs Drawbacks Rebates on customs duties Shipper's Export Declaration (SED) US Department of Commerce form used to control export shipments and record export statistics Export Bill of Lading (B/L) Document issues by the carrier that is a contract for the shipment, a receipt for the goods shipped, and a certificate of ownership Conformité Européene (CE) Mark EU mark that indicated that merchandise conforms to European health, safety, and environmental requirements Customhouse Brokers Independent businesses that handle import shipments for compensation

Bonded Warehouse An area authorized by customs authorities for storage of goods on which payment of import duties is deferred until their removal Harmonized Tariff Schedule of the US (HTSA or HTSUS) US version of the Harmonized System, the global tariff code, used worldwide Intrafirm Trade Trade that occurs between a parent company and its foreign affiliates Indirect Procurement The purchasing of goods and services that are not part of finished goods Just-In-Time (JIT) A balanced system in which there is little or no delay time and idle in-process and finished goods inventory Total Quality Management (TQM) A companywide management approach in which the entire organization is managed so that it excels on all dimensions of product and services that are important to the customer Quality Circle Small work group that meets periodically to discuss ways to improve its functional areas and the quality of the product Six Sigma Business management process for reducing defects and eliminating variation Manufacturing Rationalization Division of production among a number of production units, thus enabling each to produce only a limited number of components for all of a firm's assembly plants Backward Vertical Integration An arrangement in which facilities are established to manufacture inputs used in the production of a firm's final products Intermediate Technology Production methods between capital- and labor-intensive methods