Pre-lim

1. The government has to interfere in business activities to protect the consumers and other sectors
of society.
 True
2. In capitalism, the factors of production and distribution are owned and managed by the
government
 False
3. Refers to a set of economic institutional that dominates a given economy
 Economic system
4. Refers to exchanging the currency of one country for another at prevailing exchange rates
 Foreign exchange
5. It pertains to a market situation where there is a relatively large number of small producers
or supplies selling similar but not identical products
 Monopolistic competition
6. Economic globalization is the development and growing influence of international organizations
such as the UN or WHO means govemmental action takes place at an international level
7.  False
8. Refers to the factors that affect the efficiency of a business enterprise
 environment
8. Globalization in the Economy in the increasing interdependence of world economies as a result of
the growing scale of cross border trade of commodities and services the flow of international
capital and the wide and rapid spread of technologies
 True
9. Pure competition is a market situation, where there is only one seller of producer
 False
10. Refer to the purchasing and selling of the goods commodities and services outside its
national bonders
 International Business
11. Ecological globalization is the new organization and hierarchy of different regions of the world
that is constantly changing
 False
12. Apart from all the benefits globalization has had on allowing cultural exchanges, it also
homogenized the world's cultures
 True
13. Refers to the technology or techniples of production.
 Methods
14. The business basic resources constitute the inputs in the production of goods and services
 True
15. Men are needed in putting up the business Without these it is not possible to acquire
materials and machines The option is through credit
  False
16. Refers to a social process which involves the assembly and utilization of resources to produce
goods and services in order to satisfy the needs of society
 Business
17. This process involves focusing on a specific skill, activity, or production proces
 Specialization
18. Refers to the theoretical frameworks for existing firms and Industries. They describe the features
of the various market
 Market models
19. The government is directly involved in seeing to it that the workplace and work environment are
safe for the worker
 Occupational safety
20. Refers to the provision of resources and services to the countryside
 Decentralization
21. Fair labor deals with all aspects of physical, mental and social health and safety in a workplace.
o False
22. Political instability is conducive to the efficient operations of the business
o False
23. Refers to the economic system that seeks to create a classless society in which the major means
of production, such as businesses and factories, are owned and controlled by the state
o Communism
24. The government is directly involved in seeing to it that the workplace and work environment are
safe for the workers.
o Occupational safety
25. Among the productive resources, these are considered the most important. The success or
failure of any business depends on them
o Manpower
26. This priority program seeks to keep the economy on the right track to progress
o Economic Recovery
27. Refers to the taxation, borrowings, and expenditure of the government
o Fiscal policies
28. Refers to the ability of people or communities to cover their essential needs sustainably and with
dignity
o Economic security
29. The principal aims of the investors is cheap labor.
o False
30. What is meant by free enterprise economy
o Free competition
31. The external environment factors are management, technology. facilities, and financial
incentives
o False
32. Refers to a type of market structure that exists within an economy, there is a small number of
firms that control the market.
o Oligopoly
33. Benefits of specialization that nations can experience is increase in potential profit or extra
benefits by lower cots and increasing productivity
o True
34. This theory emerged around the 1980s. The theory majorly focused on multinational companies
and their strategies and effort to gain a comparative advantage over other similar global firms in
their industry
o Global strategic rivalry theory
35. Refers to the speedup of movements and exchanges (of human beings, goods, and services,
capital technologies or cultural practices) all over the planet.
o Globalization
36. These ___________ have contributed to the development of culture exchanges This means that
different customs and habits shared among local communities have been shared among
communities that (used to) have different procedures and even different beliefs
o human exchanges
37. Technological globalization is the phenomenon by which millions of people are........ thanks in
the power of the digital world a platforms such as Facebook, Instagram Skype or Youtube
o Interconnected
38. Centralization in the Economy is the increasing interdependence of world economies as a result
of the growing scale of cross border trade of commodities and services, the flow of international
capital and the wide and rapid spread of technologies
o False
39. One of the benefits to firms is helps the organization in utilizing their surplus resources and
increasing profitability of their activities
o True
40. International business makes it comfortable for individuals to utilize commodities and services
produced in other nations, which help an improving their standard of life
o True
41. Product life cycle theory is generally more applicable in understanding made where buyers
mainly decide based on brand names and product reparations
o False
42. Refers to a period of increased commercial activity within either a business, market industry, or
economy as a whole
o Boom
43. The fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes
referred to as a bubble mint
o False
44. global economic growth and are both the driving force and the major consequences of
globalization
o industrial productivity
45. Despite its benefits, the economic growth driven by globalization has not been done without
awakening criticism
o True
46. Refer to the ability of an entity to produce a product or service at a lower absolute cost per unit
using a smaller number of inputs or s more efficient process that another entity producing the
same good or service
o Absolute Advantage
47. The acceleration of economic exchanges him led to strong global________ growth
o Economic
48. This is based on the idea that a nation's wealth and power were best Served by increasing
exports and reducing imports
o Mercantilism
49. A clear example of a nation with an absolute advantage in the Philippines, a country with
abundant oil supplies that provide it with an absolute advantage over other nations
o False
50. Money system came in first before the Barter system
o False
51. Globalization can be defined as the increased and interconnectedness and interdependence of
_________ and countries.
o People
52. This approach is mainly concerned with the act that the country's priority should be increasing
the wealth of own nations
o Classical -based theories
53. Refers to an advantage when business or a nation can produce something at a lower opportunity
cost compared to other nations
o Comparative advantage
54. Specialization and comparative advantage are two factors related to international Monetary
System
o False
55. Business activities done across national borders is international Business. Such trade modes
might be owned by the state or publicly owned organization
o False
56. Closing the borders protectionism policies are not the way to go, as many countries doing it have
failed.
o True
57. Benefits of comparative advantage that nations can experience are increase in worker efficiency
that are experts in a specific area and increase in potential profit or extra benefits by lower costs
and increasing productivity
o True
58. The Customer care theory is often called the protectionist theory because it mainly works on the
strategy of protecting oneself
o False
59. The financial globalization has contributed to the rise a global financial market in which
contracts and capital exchanges have multiplied
o True
60. The opportunity cost in trade is when the next valuable alternative is given up over another
economic choice
o True
61. Pair labor deals with all aspects of physical, mental and social health and safety in a workplace
o False
62. Pure competition is a market situation where there is only one seller or producer
o False
63. The founders of the various theories of the classical country-based approach were mainly
concerned with the fact that the priority should be increasing the wealth of one's own nation
o True
64. The external environment factors are management, technology, facilities, and financial
incentives
o False
Midterm
1. The Bretton-woods conference led to the creation of a __________ exchange rate system.
➢ dollar-based fixed exchange
2. The responsibility of member countries of this organization is to formulate economic and
financial policies that facilitate the economic and financial conditions to ultimately result in
economic growth by maintaining price stability
➢ International Monetary Fund
3. The functions of the International Monetary System through the points below. First,
facilitates the free flow of different currencies in the open market.
Second, restrict intervention from government or central banks only in cases of currency
stabilization.
Third, facilitate global trade of goods, services, and money.
Fourth, maintain a system that regulates the exchange rates through the forces of the
market and not by any particular institution or organization
➢ True
4. A floating exchange rate is a regime where the currency price of a nation is set by the forex
market based on supply and demand relative to other currencies.
➢ True
5. It is vital to understand the International Monetary System as the evolution of money as a
form of exchange and currency is documented in its growth story.
➢ True
6. One of the advantages of International Monetary System is constant fluctuations make
these exchange rates unstable and sometimes unreliable in making investments or
committing to trade goods and services.
➢ False
7. Since International Monetary Fund is a multilateral institution, its policies and regulations
help the functioning of the International Monetary System.
➢ True
8. The International Monetary System is independent in terms of policymaking. The policies
leave the exchange rates to the market's forces, leaving almost no room for manipulation.
➢ True
9. This theory is generally more applicable in understanding trade where buyers mainly decide
based on brand names and product reputations.
➢ Country similarity theory
10. Member countries of IMS are limited to using one anchor currency. Therefore, countries can
hold surplus or reserve cash in different currencies, resulting in a more significant liquidity
factor than other systems.
➢ False
11. Under the Bretton or floating rate system, demand and supply would affect the currency
exchange rates.
➢ False
12. This period of chaos and rebuilding saw exchange rates fluctuate and competitive
devaluation unlike ever before. This significantly depreciated their currencies' value to
export extensively and benefit from economies of scale.
➢ The War Period
13. Central and commercial banks, multinational companies, and various money and
commodities market funds are part of the
➢ International Monetary System
14. When regional economies agree on integration, trade barriers fall and economic and
political coordination increases
➢ True
15. The world's largest trade bloc importing goods and services from more than 100 countries it
is the biggest import market, as well as the biggest exporter in the world
➢ European Union
16. This Trade and Investment policy negotiations are carried out mainly between two nations
➢ bilateral negotiations
17. One of the union's founding principles is free trade among its members. It is also committed
to the liberalization of world trade outside of its borders.
➢ True
18. The four main levels of economic integration include customs unions, common markets
(also called single markets), economic unions and
 ➢ free trade areas
19. This mean, trade can be diverted from nonmembers to members even if it is economically
detrimental for the member state
➢ Diversion of trade
20. Government officials cannot develop regulations on imports to protect citizens.
➢ False
21. Due to inefficiency, import controls may cause a lag in technological advancements
➢ True
22. Trade and Investment can cause companies to move their production operations to areas
within the economic union that have cheaper labor prices
➢ False
23. This organization was never implemented in 1948, it represented an agreement among 53
nations to aid international commercial policies, restrictive business practices, commodity
agreements employment and reconstruction, and economic development and international
investment
➢ International Trade Organization
24. The North American Free Trade Association, or NAFTA, is a well- known example of a free
trade area. It was implemented in 1994 and allowed free trade between the United States
Mexico, and Canada
➢ True
25. Refers to an agreement among nations to reduce or eliminate trade barriers and agree on
fiscal policies
➢ Economic integration
26. Government policies are designed to regulate, direct, and protect national activities
➢ True
27. Refers to an agreement between two or more countries removing all trade barriers between
themselves, establishing common tariff and non-tariff barriers for importers, and allowing
for the free movement of labor, capital and services between themselves.
➢ Common Market
28. Also known as the Cooperation Council for the Arab States of the Gulf that consists of all the
Arab states of the Persian Gulf excluding Iraq
➢ Gulf Cooperation Council (GCC)
29. Refers to the last step in the process of economic integration after free trade area, customs
union, and common market
➢ economic union
30. Refers to an agreement between two or more nations to allow goods, services, money and
workers to move over borders freely.
➢ Economic Union
31. This promotion is designed to help firms enter and maintain their position in international
markets and to match or counteract similar efforts by other nations
➢ Export promotion
32. Refers to the investment promotion designed to attract the foreign investors, including
special depreciation allowances, tax credit or rebates, special deductions for capital
expenditures, tax holidays, and reduction of tax burdens
➢ Fiscal incentives
33. Once governments impose restrictions on the export funds, the desire to transfer capital
abroad increases. This creates problems for gaining new outside investors
➢ True
34. An economic union a different from a customs union since, in economic union, member
countries are allowed to move goods across borders, but they do not share a currency
➢ True
35. This Union was created in 1993 and included 27 member states in 2022-Since 1999, 19 of
those nations have adopted the a shared currency
➢ European Union
36. This organization was introduced in 1995 and administers international trade and
investment accord. The aim is to further hasten implementation of liberalization to help the
impoverished and developing nations
➢ World Trade Organization
37. WTO started in 1947 as a set of rules to ensure nondiscrimination transparent procedures
settlement of disputed, and the participation of the lesser-developed countries in
international trade
➢ False
38. Refers to an agreement between several countries or areas that sets guidelines on general
trading practices
➢ Customs Unions