Goods and services purchased abroad and brought into a country are called ________.

________ are all goods and services sold abroad and sent out of a country.

The rise of a new international entity called the ________ suggests that any company, regardless of age, experience, and resources, can engage in international business.

________ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

Globalization is characterized by ________.

The term ________ refers to entities cooperating across national boundaries.

Most companies today operate in an environment of increased transparency and scrutiny regarding their business activities. This is due to ________.

The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________.

Scenario: Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. Topsy Turvey Toys buying its merchandise from Ureshi Toys is an example of ________.

Scenario: Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. Ureshi Toys selling its products to Topsy Turvey Toys is an example of ________.

Scenario: Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. The products that Ureshi Toys manufactures are examples of ________.

Scenario: Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. Ureshi Toys is an example of a(n) ________.

Two major forces that underlie the expansion of globalization are falling barriers to trade and investment, and ________.

As former competitors in many industries link up to challenge others on a worldwide basis, ________ occurs.

The purpose of the General Agreement on Tariffs and Trade (GATT) was to ________.

________ place limits on the quantity of a product being imported.

A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to ________.

The ________ is an agency created to provide financing for national economic development efforts.

Which of the following was created to regulate fixed exchange rates and enforce the rules of the International monetary system?

The General Agreement on Tariffs and Trade (GATT) was designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

The power of the General Agreement on Tariffs and Trade (GATT) to settle trade disputes is what sets it apart from the World Trade Organization (WTO).

The World Trade Organization's dispute settlement system has the ability to penalize offending nations.

NAFTA is the international organization that enforces the rules of international trade worldwide.

Resistance to worldwide trade agreements has resulted in some nations placing greater emphasis on regional pacts.

Gross national product (GNP) is the value of all goods and services imported into a country over a one-year period.

A characteristic of the world's least-global nations is low levels of corruption.

Which of the following terms is defined as the set of values, beliefs, rules, and institutions held by a specific group of people?

Ethnocentricity can be defined as the ________.

Detailed knowledge about a culture that enables people to work happily and effectively within it is called ________.

Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture?

Which of the following is a cultural component that implies gauging the beauty and appeal of artwork?

Which of the following terms is used to refer to the ideas, beliefs, and customs to which people are emotionally attached?

Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts?

Which of the following statements is true of attitudes?

A(n) ________ is anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts.

________ is increasing the pace of both cultural diffusion and cultural change.

Which of the following refers to the process by which cultural traits spread from one culture to another?

Which of the following terms is used to refer to habits or ways of behaving in specific circumstances that are passed down through generations?

The French Government promotes the concept of ________ by building museums and monuments to preserve the legacies of important events and people.

________ refers to the replacement of one culture's traditions, folk heroes, and artifacts with equivalents from another.

The sale of Hollywood movies in Konesia has doubled in the last five years while those of locally-produced movies has fallen. In addition to this, sociologists have noted that currently, the teenagers of Konesia are less inclined to don their traditional costumes, preferring to adopt Western clothes instead. These changing trends illustrate ________.

The practice by which managers and other employees find jobs within their own companies for relatives is known as ________.

Nepotism often prevails in ________ cultures.

Which of the following terms is used to refer to the process of ranking people into social layers or classes?

________ tend to occupy the highest social layer in industrialized countries.

________ refers to the ease with which individuals can move up or down a culture's social ladder.

A caste system is a system of social stratification in which ________.

A class system is a system of social stratification in which ________.

Which of the following is the most common form of social stratification in the world today?

Lingua franca is ________.

Which of the following terms is used to refer to the departure of highly educated people from one profession, geographic region, or nation to another?

Reverse brain drain is the process by which ________.

According to Hofstede's framework, which of the following dimensions describes the degree to which a culture accepts social inequality among its people?

According to Hofstede's framework, organizations which have cultures that score high on ______ tend to be more hierarchical, with power deriving from prestige, force, and inheritance.

According to Hofstede's framework, a culture with large power distance tends to be characterized by ______.

Sally, a social worker from the United States, has been stationed in Konesia for a year. She notices several things about the Konesian society; the people who report to her, for example, do so with an excessive amount of submissiveness, and her superior seems to expect the same of her. Which of the following statements about Konesia would be consistent with Hofstede's framework?

According to Hofstede's framework, a culture with ______ values security and places its faith in strong systems of rules and procedures in society.

According to Hofstede's framework, cultures scoring high on the dimension of ______ tend to be characterized by personal assertiveness and the accumulation of wealth, typically translating into an entrepreneurial drive.

Which of the following terms refers to the broadest measure of economic development of a country?

_____ is the value of all goods and services produced by the domestic economy over a one-year period.

The _____ of a country is its gross national product divided by its population.

The relative ability of two countries' currencies to buy the same basket of goods in those two countries is called _____.

An investor wants to invest in a country that has a high gross national income (GNI). Which of the following countries would most likely qualify as a prospect?

Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

The GDP per capita of a country is lower than that of France. If the GDP per capita of the country is adjusted for PPP, the country's revised GDP is higher than that of France. Which of the following is most likely true about the country?

Which of the following measures the extent to which a government equitably provides its people with a long and healthy life, an education, and a decent standard of living?

A company is conducting a research on new markets by comparing countries in terms of their human development index (HDI) scores. The company wishes to expand into a market where individuals experience a very high level of total well-being. Which of the following countries would the company most likely choose?

Which of the following is true about economic development of a nation?

Which of the following statements is true of national production?

Nations having the poorest infrastructures and lowest personal incomes are called _____.

A country that has recently increased the portion of its national production and exports derived from industrial operations is called a(n) _____.

Both GDP and GNP measure a nation's income per person.

Volunteer work and unpaid household work are included in GNP.

Barter is an alternative for buyers who lack money needed to pay for imports.

The concept of purchasing power parity (PPP) must be applied to understand the true value of a currency in its home country.

The human development index (HDI) demonstrates that high national income alone guarantees human progress.

Nations with the poorest infrastructures and lowest personal incomes are called developing countries.

One of the key obstacles faced by countries in economic transition is the lack of managerial expertise.

Differentiate between GDP and GNP. Briefly discuss the drawbacks of using GDP and GNP as indicators of economic development.

How are countries classified? Explain with examples.

Does greater economic freedom guarantee a higher standard of living? Provide examples of two specific countries to support your answer.

_____ is the process by which a nation changes its fundamental economic organization and creates new free‑market institutions.

Which of the following is a major obstacle to economic transition?

Economic transition is the process of moving from _____.

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation?

_____ is the forced transfer of assets from a company to the government with compensation.

Which of the following is a disadvantage of local requirement laws to foreign companies?

Global Trading just learned that the government of one country in which it does business has taken over the entire electric utility industry. The government's actions are an example of _____.

Had the government taken over (with compensation) the assets of Global Trading but not those of any other company, the government's actions would be an example of _____.

Had the government taken over the assets of Global Trading without compensation, and not taken over the assets of any other company, the government's actions would be an example of _______.

______ is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return.

Political risk that affects all firms in a country is referred to as _______.

______ has one of the highest levels of macropolitical risk.

_______ occurs if ownership of a property or assets of a company is transferred to the host government.

Country risk is considered similar to _______.

The purchase of physical assets or a significant amount of ownership of a company in another country to gain a measure of management control is called _______.

_______ is an investment that does not involve obtaining a degree of control in a company.

Which of the following is a major driver of foreign direct investment?

A(n) ______ advantage is the one that a company gains from incorporating a business activity within itself rather than leaving it to a relatively inefficient market.

Exports and imports of tourism and business consulting are included in the ______ account of a country's balance of payments.

Exports and imports of tangible goods are included in the ______ account of a country's balance of payments.

Exports and imports of computer software, electronic components, and apparel are included in the ______ account of a country's balance of payments.

When a U.S. company buys shares of stock in a French company on France's stock market, the U.S. balance of payments records the transaction as an ______.

Scenario: Blickinstock at the Crossroads. Auto parts supplier Blickinstock Ltd. is deciding whether to purchase an existing company in a remote region of Argentina or build its own subsidiary to expand in Latin America. Keith Moon, vice president of global business development, will present options to the board. Blickinstock has identified a company that it can acquire or merge with. Which of the following statements would represent the least likely reason for Blickinstock to go ahead with the merger?

Scenario: Blickinstock at the Crossroads. Auto parts supplier Blickinstock Ltd. is exploring expansion in Latin America. If board members ask about the maquiladora industry, Keith would explain that it refers to ______.

Building a subsidiary abroad from the ground up is called a greenfield investment.

The soaring cost of developing subsequent stages of technology has led multinationals to engage in cross-border alliances and acquisitions.

In industries having a limited number of small firms, foreign direct investment decisions frequently resemble a "follow the leader" scenario.

A majority of the regulatory changes that governments around the world introduced in recent years are unfavorable to FDI.

The merchandise account includes exports and imports of tangible goods.

The income payments account includes income earned on home country assets held abroad.

A current account deficit occurs when a country exports more goods and receives more income from abroad than it imports and pays abroad.

One reason a home country may discourage foreign direct investment outflows is to protect its "sunset" industries.

The ______ theory states that when an aspect of the market makes a transaction less efficient than it could be, a company will undertake foreign direct investment to internalize the transaction and thereby remove the efficiency-reducing aspect.

Which of the following theories states that firms undertake foreign direct investment, when the features of a particular location combine with ownership and internalization advantages, to make the location appealing for investment?

The ______ theory states that a firm tries to establish a dominant presence in an industry by undertaking foreign direct investment.

A company can achieve market power through ______.

The extension of a company's activities into stages of production that absorb the company's outputs is known as ______.

Which of the following countries would a watchmaker most prefer to manufacture its watches in, in order to capitalize on buyer perceptions of high quality?

A firm's subsidiary built abroad from the ground up is called a(n) ______.

Which of the following is a reason behind intervention by a host country on matters related to FDI?

______ are those that use outdated and obsolete technologies or employ low-wage workers with few skills.

Ownership restrictions and performance demands are used by ______.

Home nations discourage foreign direct investment outflows because it ________.

A home country encourages outflows of foreign direct investment because it ________.

Which of the following methods is being used when a host country provides lower tax rates and low-interest loans to firms from abroad for encouraging inflows of foreign direct investment?

Tax breaks on profits earned abroad and political pressures are used by ________.

Which of the following is used by home-country governments to promote outbound foreign direct investment?

Which of the following is used by home country governments to limit outbound foreign direct investment?

The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products, people, or capital is called ________.

Regional economic integration is also referred to as ________.

A group of nations in a geographic area undergoing economic integration is called a ________.

Which of the following is an important goal of regional economic integration?

Which of the following is the lowest extent of regional economic integration?

Which of the following is the greatest extent of regional economic integration?

Economic integration whereby countries remove all barriers to trade among themselves, but each country determines its own barriers against nonmembers, is called a(n) ________.

Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves and set a common trade policy against nonmembers is called a ________.

Higher levels of trade between nations result in ________.

Which of the following is a potential drawback of regional economic integration?

Trade agreements allow competitors from other nations to enter the domestic market.

A group of nations in a geographic region undergoing economic integration is called a regional trading bloc.

A common market area is the greatest extent of national integration.

In a free trade area, each country can maintain whatever policy it sees fit against nonmember countries.

Countries belonging to a free trade area must concede a certain amount of their national autonomy to the supranational union of which they are a part.

In 1951, Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands signed the Treaty of Paris and created the ________.

The ________ called for banking in a single common currency, setting up of monetary and fiscal targets, and political union of the European Union members.

The European Union plan that established its own central bank and currency in January 1999 is known as the ________.

The common currency of the European Union is known as the ________.

Which of the following is true of the euro?