1. Due to benefits associated with free trade and investment, gap between the rich and poor nations ¢ the world has reduced True False 2. The most global markets currently are markets for A. Services B. Customer goods (not markets) C. Customer durables 3. Most forecasts now predict a rapid rise in world output accounted for by developing nations such China, India, and South, Korea, and a rapid decline in the share enjoyed by rich industrialized countries such as Britain and the United States (commensurate decline) True 4.A software company that uses Indian engineers to perform maintenance functions on software designed in the United States is benefiting from: B. exporting C. licensing D. importing 5. A company has to be 2 major multinational corporation to facilitate, and benefit from, the globalization of markets (does not have) Te 6. Globalization results in a greater degree of ___across markets than would be present otherwise A. diversification B. diversity D. heterogeneity7. Currently, the most global of markets are for industrial goods and materials that serve a universal need the world over True False 8. The trend from distinct national economic units and toward one huge global market is commonly referred fo as: A Market standardization B. Cross-border integration D. Internationalization 9. Substantial impediments such as barrier to foreign direct investment make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the global U.S companies use Indian software engineers to perform maintenance functions? B. Itis in accordance with the treaty signed between the governments of the U.S and India C. Asa borrower of IMF loans, India needs to offer these services to turn its economy to secure stability and growth D. Itcxeates more low-skilled jobs for the U.S, resulting in better economic growth 11. One concern of globalization opponents is that falling barriers to international trade may destroy manufacturing jobs in wealthy advanced economies such as the United States THE) Globalization; Job and Income) False 12, Why was the World Bank created / set up? ‘A. To maintain order in the international monetary system B. To promote economic development C. To regulate what economic policies nations adopt D. To maintain peace and security13. As transportation costs associated with the globalization of production decline, dispersal of production to geographically separate locations becomes more economical ;plications for G of production) i for G of prod False 14, Although Gillette is an American company, it has invested substantial business resources in activities outside the United States. This practice is referred to as: A. transnational commerce ‘Bi foreign direct investment (Au tw true tiép nude ngodi) C. international trade D. organizational diversification 15. Economists argue that despite the many benefits to globalizational, an increase in international trade and cross-border investments will result in higher prices for goods and services (lower) True 16. Which of the following technological developments did NOT dramatically enhance globalization? A. Developments in communication B. Developments in agriculture technologies C. Developments in information processing D. Developments in transportation 17. To conduct international business, a multinational enterprise has to invest directly in operations of other countries True False 18, Which are the two macro factors that seem to underlie the trend toward greater globalization? A. The increase in global economic stability, and the slowdown in technological change B. Reduced export of goods, and global economic stability C. Increased tariffs on import of manufactured goods, and protection of domestic industries from foreign competition19, Which ofthe following refers tothe exporting of goods or services to customers in another country? A. Situational commerce B. World exchange (Cclntemiational wade (Thuong mai quic ré) D. Crose-national barter 20. How has technological imnovation affected the globalization of production? A. The real costs of information processing and communication have increased in the past two decades B. The effective and efficient execution of a digitized work process remains limited to developed counties D. It increases unemployment all over the globe as technology replaces manpower 21, The theories of Smith and Ricardo show that countries should not engage in international trade for products that it is able to produce for itself (show why it is beneficial for a country) ‘Tre 22. According to Adam Smith, the invisible hand of the market mechanism, rather than government Policy, should determine what a country imports and what it exports False 23, According to Ricardo’s theory of comparative advantage, countries shall not produce a goods, even if they have an absolute advantage in its production, if they do not produce it efficiently Tre False 24. A positive-sum game refers to a situation in which major industrial nations cam benefit even if some of them are able to benefit more than others ‘Tre 25. The basic message of the theory of comparative advantage is that potential world production is. greater with unrestricted free trade than it is with restricted tradeFalse 26. Which of the following is a disadvantage of licensing? A Tk does not help firms that lack capital to develop operations overseas C Tt cannot be used when a firm possesses some intangible property that might have business applications D. The firm has to bear the development costs and risks associated with opening a foreign market 27. The costs of promoting and establishing a product offering whem a firm enters a foreign market prior to its rivals are known as, A. Switching costs B. Market development costs D. Promotional development costs 28. High transportation costs, trade barriers and problems with local marketing agents are all disadvantages of A Licensing B. Tukey projects C. Exporting D. Franchising 29. Which of the following statements about small-scale entry is TRUE ? A. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry D. Small-scale entry limits a firms ability to learn about a foreign market thereby also limiting the firm's exposure to that market 30. Which of the following is a distinct advantage of exporting?B. Benefits from a local partner's knowledge of the host country’s competitive conditions (joint ventures) . Avoids the threat of tariff barriers by the host-country government D. Appropriate if lower cost locations for manufacturing the product can be found abroad 31. Which ofthe following is an advantage of franchising? A.A firm takes profits out of one country to support competitive attacks in another B.A fim is lieved of many ofthe costs and risks of opening 2 foreign market on its own C. It guarantees consistent product quality D. It achieves experience curve and location economies 32. When a firm wants to enter a market where there are already well-established incumbent. companies and where global competitors are also interested in establishing a presence, the firm should consider A Joint ventures B. Turnkey projects C. Acquisitions D. Greenfield investments 33. When an exporting firm finds that its local agent is also carrying competitors’ products, the firm may switch toa____ to handle local marketing, sales and service A. Wholly owned subsidiary B. Franchising arrangement C. Turnkey operation D. Licensing agreement 34. Ifa firm's core competency is based on control over proprietary technological know-how, it should ayoid minimize the risk of losing control over that technology A. Licensing ; joint-venture B. Wholly owned subsidiary ; exporting C. Turkey contracts ; exporting D. Exporting; joint-venture 35, Identify the advantage of establishing wholly owned subsidiaries ‘A. Its the least expensive method of serving a foreign market from a capital investment stanpoint B. Political considerations make it the most feasible entry mode. Itmay be required if a firm is trying to realize location and experience curve economies D. Its particularly useful where FDI is limited by host-government regulations 36. A wholly owned subsidiary is appropriate when A. The firm wants to share the cost and risk of developing a foreign market B. The firm wants 100 percent of the profits generated in a foreign market C. The firm wants a plant that is ready to operate ‘D. The firm wants to test a market 37. All of the following are examples of pioneering costs except the costs of A. Business failure B. Educating consumers C. Promoting and establishing a product offering D. Leaming from the mistakes of early entrants 38. A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with B. Diseconomies C. Proneering costs D. Diseconomies of scope 39. Ifa firm can realize location economies by moving production elsewhere, it should avoid B. Tumkey contracts C. Licensing D. Wholly owned subsidiaries 40. Manufacturing bulk products regionally A Increase the firms costs of transportation C. Leads to diseconomies of scale D. Makes exporting uneconomical forthe firm41. Firms engaging in___ with a local company can benefit from a local partner’s knowledge of the host country’s competitive conditions, culture, language, political systems and business systems A Tumkey projects B. Toint ventures C. Greenfield investments D, Licensing anangements 42. Many Western firms that sold oil-refining technology to firms in Gulf states now find themselves, competing with these firms in the world oil market. This is an example of B. The firm entering into a tumkey deal having no long-term interest in the foreign country C. The country subsequently proving to be a major market forthe output of the process that has been exported D. Selling the firm's process technology through a turkey project which is also selling competitive advantage to potential competitors 43. Which of the following is not important in the acquisition process? A Finns should strive to limit unwanted management attrition after acquisition B. An integration plan should quickly be implemented C. Proper screening of the company to be acquired should take place _. The hubris hypothesis should be maintained 44. Firms may prefer acquisitions to greenfield investments for all of the following reasons except A. They allow companies to completely sidestep govemment regulations on investment B. They are quick to execute C. They enable the firm to preempt competitors D. Managers believe acquisitions are less risky 45, Which of the following is not an advantage associated with entering a foreign market before other international businesses? A. Ability to preempt rivals and capture demand by establishing a strong brand name B. Ability to ride down the experience curve ahead of rivals C. Ability to create switching costs46. Abstract ideas about what a group believes to be good, right, and desirable are called A. noms B. values C. folkways D. mores 47. The basic social organization of a society is its A culture B. social strata C. social structure D. caste system 48. The group is the primary unit of social organization in A Tepan B. The United States C. Switzerland D. Mexico 49. Which of the following is not characteristic of individualism? A individual achievement C. low company loyalty 50. Which religion promotes the notion that 2 moral force in society requires the acceptance of certain responsibilities called dharma? Alam B. Buddhism D. Confucianism al. is the mother tongue of the largest number of people in the worldA English B. Chinese C. Japanese D. Spanish 22. focuses on how society deals with the fact that people are unequal in physical and intellectual capabilities A. power distance B. individualism versus collectivisin C. uncertainly avoidance D. masculinity versus femininity ‘53. Which of the following is not regarding culture? A. Culture is static B Culture is evotving C.Itis a system of values and noms that are shared among a group of people D. It involves the knowledge and beliefs of people ‘54, An act, as simple as shaking hands when meeting new people is an example of A Values B. Symbolic behavior C. Mores D. Social stratification 55. A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of A. Mores B. Values C. Attitudes ‘56. The emphasis on individualism in the U.S results in all of the following disadvantages expectA. Managers tend to develop good general skills but lack the company-specific experience B. Difficulty in building teams within an organization to perform collective tasks D. Difficulty to achieve cooperation both within a company and between companies 57. It has been argued that the success of Japanese enterprises in the global economy has been based partly all of the following except A. The diffusion of self managing work teams B. The close cooperation among different functions within Japanese companies D. The cooperation between a company and its suppliers on issues such as design, quality control and inventory reduction 58. The individualism vs. collectivism dimension of Hofstede’s study explored A. The extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainly B. The relationship between gender and work roles, C. Howa society deals with the fact that people are unequal in physical and intellectwal capabilities 59. Hofstede’s uncertainly avoidance dimension considered B. The relationship between gender and work roles C. How a society deals with the fact that people are unequal in physical and intellectoal capabilities D. The relationship between the individuals and his or her fellows 60. Gabrielle Green, a manager at Cryptic Corporation, believes in empowerment, upward mobility, and motivating her employees. This describes her A cniterion C. noms D. folkways 61. What is the difference between folkways and mores?‘A. Folkways are norms that are seen as central to the functioning ofa society B. Violating moras can bring serious retribution . Mores include rituals and symbolic behavior D. Folkavays have much greater significance mores 62. Which of the following is NOT considered a prevailing factor in the formation of values and norms ofa culture? A. Political philosophies B. Dominant religion C. Homogeneity D. Dominant language 63.Factors such as___ and _clearly influence the values and norms of society A. routines; folkways B. conduct culture C rites: rituals ‘64, What type of consciousness refers to a condition where people perceive themselves in terms of their background, and this shapes their relationships with members of other classes? A Social B. Rank D. Norm ‘65, Which of the following countries scores high on individualism and low on power distance? A Argentina B. Panama D_ Indonesia 66. Which of the following is not true of NAFTA?‘A It created a free trade areas of neatly 800 million people B. It created the background for increased political stability in Mexico C. Several other Latin American countries have indicated their desire to eventually join NAFTA D. Its participants are the United States, Canada, and Mexico 67. All barriers to the free flow of goods and services between member countries are removed, and a ‘common policy toward nonmembers is established in a A. Free trade area B. Customs union C. Common market D. Economic union 68. NAFTA is an example of a(n) A Free trade area B. Customs union CC. Common market D. Economic union 669. When higher cost suppliers within the free trade area replace lower cost external suppliers A. The bloc as a whole benefits B. There is trade creation C. There is trade diversion D. Extemal suppliers benefit 70. For international businesses, regional economic integration such as the EU ‘A. Raises the costs of doing business in the region B. Eliminates differences in culture allowing companies to standardize marketing activities ‘C. Opens markets that had formerly been protected D. Standardizes competitive practices enabling companies to realize substantial cost economies 71. Which of the following is not a threat that emerges for international businesses as a result of regional economic integration? A. The business environment within each grouping becomes more competitive B. There isa risk of being shut out of the single market by the creation of a “trade fortress”It Limits the ability of finns to pursue the corporate strategy of their choice . The costs of doing business ina single market may fll 72. Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated ? ‘A. Common market, economic union, full political union, free trade area and customs union B. Common market, economic union, fll political union, fre trade asa and customs union D. Full political union, free trade area, common markt, customs union and economie union 73.Ina___, no discriminatory tariffs, quotas, subsidies or administrative impediments are allow to distort trade between member nations. Each country, howevers is allowed to determine its own trade policies with regard to nonmembers A Common market B Economic union C. Political trade area 74. Which of the following is of a common market? ‘A.All barriers to the trade of goods and servioes among member counties are removed and each country maintains its own policy towards nonmember countries B. Involves the free flow of products and factors of production between member countries and the adoption of individual extemal trade policies (C. Has no barriers to trade between member countries, includes a common extemal trade poticy and allows factors of production to move fieely between members D. Eliminates trade barriers between member countries and adopts a common external trade policy and a common currency 75. Which of the following statement best defines a custom union? ‘A.All barriers to the trade of goods and services among member countries are removed and each country maintains its own policy towards nonmember countries B. Eliminates trade bariers between member countries and adopts a common extemal trade policy and a common currency CC Has no basrars to trade between member counties, includes a common extemal trade policy and allows factors of production to move freely between members76. The Andean Pact is an example of a(n) A. Economic union B. Customs union C. Common market D. Political union 77. Identify the incorrect statement about a common market A. It has no barriers to trade between member countries B. It includes a common external trade policy D. It allows factors of production to move ffeely between members 79. A(n) involves the free flow of products and factors of production between member countries and the adoption of a common external trade policy, along with a common currency, harmonization of ‘members’ tax rates and a common monetary and fiscal policy A Free trade area C. Common market D. Customs union 80. Economic theories suggest that free trade and investment A Isazero-sum game B. Has a drag eflect on economic growth D. Is not achievable for developed countries 81. A political benefit of economic integration is that B. Itenables participants to achieve gains from the free flow of investment C.Itallow countries to specialize in the production of goods and services that they can produce most efficiently D. Linking neighboring economies ereate incentives for cooperation between the neighboring states and reduces the potential for violent conflict82. All ofthe following are reasons why economic integration has never been easy to achieve or sustain, except A. Even though it aids the majority, it has its costs B. Anation as a whole may benefit significantly, but certain groups may lose CC. There are concems over loss of national sovereignty D. Linking neighboring economies makes them increasingly dependent on each other 84, Which of the following is not of ASEAN? ‘A. Cambodia, Laos, Myanmar and Singapore are among its members B. Its basi objective isto foster freer trade between member countries and to achieve cooperation in their industrial polices C. Ithas been highly suecessfill in achieving cooperation in ts industrial policies 85, All of the following theories show why it is beneficial for a country to engage i i even for products itis able to produce for itself, except ‘A Mereantiism. B. Heckscher-Ohlin C. Comparative advantage D. Absolute advantage 86. Which theory suggested that comparative advantage arises from differences in national factor endowments? A. mercantilism B. absolute advantage C. Heckscher-oblin D. comparative advantage 87. Which theory suggests that as products mature the optimal production location will change? 2) Mercantilism ) Comparative Advantage ©) Absolute Advantage 4) Product life-cycle 88. Economies of scale and first mover advantages are important to which trade theory?8) Mercantilism ») Product life cycle (0) New trade theory ) Comparative advantage 89, Porter's diamond of competitive advantage includes all of the following except ) Factor endowments ) Demand conditions ©) Furst: mover advantages 4) Firm strategy, structure, and rivalry 90,___ refer to the nature of home demand for the industry's product or service. a) Demand conditions ») Factor endowments ©) Finn strategy, structure, and rivalry 4) Related and supporting industries 91. This theory, proposed in 1776, was the first to explain why is beneficial to a country. A Mercantilism B. Heckscher-Ohlin C. Comparative advantage D Absolute advantage 92.___ suggests that international differences in labor productivity are key to understanding patterns of international trade. A Mercantilism B. Vernon C. Michzel Porter 9. This theory explains the observed patterns of international trade by emphasizing the interplay between the proportions in which the factors of production are available in different countries and the proportions in which they are needed for producing particular goods.A Mereantilism B. Absolute advantage (C. Heckscher-Ohlin D. Comparative advantage 94, Identify the incorrect statement pertaining to Raymond Vernon's product life-cycle theory. A. Early in their life eycle, most new produets are produced in and exported from the country in which they were developed B. As anew product becomes widely accepted internationally produetion starts in oer countries C.A product in the early stage of the product life cycle is imported by the country where it was innovated D.A product may ultimately be exported back to the country ofits original innovation 95. Which theory stresses that in some cases countries specialize in the production and export of particular products not because of underlying differences in factor endowments but because in certain industries the world market can support only a limited number of firms? A Balanced trade B. Heckscher Olin C.New trade D. Product life eyele 96. The theory of, developed by Michael Porter, focuses on the importance of country factors, {in addition to factor endowments, such as domestic demand and domestic rivalry in explaining a nation's dominance in the production and export of particular products. A New trade B. Absolute advantage C. Comparative advantage 97. The theory of _makes a crude case for government involvement in promoting exports and limiting imports. B. Free trade C. Absolute advantage D. Comparative advantage98. According to the U.Sis a major player in the commercial jet aircraft industry because US firms were first movers in the world market. A. Produet lif eyele theory B. Theory of mercantilism C-New trade theory D. Theory of absolute advantage 99. The main tenet of mercantilism was that it was in a country’s best interest to maintain a trade A Balance B. Embargo C Surplus D. Deficit 100. When a government limits imports via tariffs and quotas and subsidizes exports in order to ‘maximize exports and minimize imports, the country is following ‘A.A meteantilist philosophy B. The theory of absolute advantage C. The theory of comparative advantage D. The Heckscher-Ohlin theory 101. According to Smith, countries should specialize in the production of goods for which they have an absolute advantage and then A. Refain these goods for strictly domestic sales B. Trade these goods for the goods produced by other countries, C. Sell these goods tothe highest domestic or international bidder D. Prohibit the import of these goods from other ecuntries 102. According to the theory of __ it makes sense for a country to specialize in producing the goods, it produces most efficiently and buy the products it produces less efficiently from other countries, even iit could produce the good more efficiently itself A. Strategic trade B Pertinent advantage C. Comparative advantage D. Absolute advantage103. During the stage of Vernon's product life cycle, as the market in the United States and other advanced nations matures, the product moves toward standardization and price becomes important. A Initial B. Early middle D.Late 104, According to the product life cycle theory, the locus of global production initially switches from the U.S. to other advanced nations and then from those nations to developing countries. The consequence of this trend for the pattern of world trade is that over time the U.S. A. Becomes the sole producer ofa product 'B. Switches from being an exporter ofthe product to being an importer ofthe product C. Switches from being an importer of the product to being an exporter of the product . Becomes the sole consumer ofthe product 105. The primacy of the value of group identifications encourages managers and workers to move from ‘company to company (discourages) True 106. While the move toward regional economic integration is generally seen as a good thing, some observes worry that it will lead to a world in which regional trade blocs compete against each other Tue False 107, Which of the following statements is a fair comparison of the Heckscher-Ohlin theory and the Ricardo theory of free trade? ‘A. Both theories argue thatthe pattem of intermational trade is determined by eoustant returns to specialization B. Both theories argue that the patter of intemational trade is determined by currency exchange rates C. Unlike Ricardo’s theory, the Heckscher-Ohlin theory argues that the pattem of intemational trade is ‘determined by differences in factor endowments, rather than differences in productivity 108. According to the new trade theory, firms that establish a(n) _ advantage with regard to the production of a particular new product may subsequently dominate global trade in that productB late entrant C. comparative D. constant return 109, What would be the consequences of dynamic gains in both the stock of a country’s resources and the efficiency with which resources are utilized ? A It will cause the country’s PPF to be in a bell shaped curve B. The country will achieve constant retums to specialization Dynamic gains would lead to an outeome that is beneficial under al citeumstances D. The country can produce more goods than it did before fee trade 10. The principle argument of those who opposed NAFTA centered on the fear that ratification would result in ‘A higher interest rates in the U.S. C. a move towards a common currency for NAFTA member nations D. retaliation ftom the European Union 111. How does group primacy harm the Japanese society? ‘A. Tt lacks close cooperation between individuals within a company and between companies B.It provides strong incentive for individual members of the group to work together for the common 00d CItlacks dynamism and entepreneurship D. It offers lifetime employment in a particular company 112. David Ricardo, theory of comparative advantage attempts to rationalize why some countries export automobiles, consumer electronic in machine tools, while other countries export chemicals, ‘watches, and jewelry. This rationalization is best explained in terms of: ‘A the proportions in which the factors of production are available B the cultural histories ofthe exporting nations C. intemational differences in labor productivity 113. To an even greater degree than the theory of absolute advantage, the theory of suggests that trade is a positive-sum game in which all gain.A. mercantilism B. paradoxical advantage C. total advantage 114. In comparative advantage, the assumption is that resources can move freely from production of, ‘one good to another. Why is this assumption unrealistic? A. The process of shifting resources ffom one good to another eliminates human suffering. C. Resources move easily from one economic activity to the other D. The benefit of free trade is much lesser compared to the cost of shifting resources. 115. Like the common market, a(n) involves the free flow of products and factors of production between members and the adoption of a common external trade pol A fee trade area C global union D. customs union 116. Acommon market includes all of the following characteristics, EXCEPT: A. factors of production are allowed to move freely between members B. there are no restrictions on immigration between members. D. there are no restrictions on the cross-border flow of capital between members, 117. The two main reasons that have made economic integration difficult to achieve are: BB. concems over the safety of travel stom one nation to another and concems over national sovereignty. C. concems over the safety of travel stom one nation to another and concems over dissimilar politcal ideologies D.concems over immigration and emigration and concems aver economic and political ideologies 118. In contrast to the Western emphasis on the ‘many other societies the is the primary unit of social organization.B. group, clan . coterie; individual D. hierarchy; community 119. Vernon argues that early in the life cycle ofa typical new product, while demand is starting to grow rapidly in the United States, demand in other advanced countric C. necessitates imports to the U.S. B. attracts manufacturing possibilities. D. limsts exports from US. 120. A political benefit of economic integration is that A It enables participants to achieve gains from the fe flow of investment B.Itallow countries to specialize inthe production of goods and services that they can produce most efficiently C. Linking neighboring economies creatzs incentives for cooperation between the neighboring states and reduces the potential for violent conflict 121. Two dimensions are particularly important when explaining differences between cultures the degree to which the basic unit of social organizations is the individual, as opposed fo the group, and the degree to which a society is stratified into classes. False 122. Which of the following theories argues that due to the presence of substantial scale economi world demand will support only a few firms in many industries? A Leontiefs paradox B. Heckscher-Ohlin C. Produet life-cycle 123, The prohibition of the payment or receipt of interest, which is considered usury, is one of the economic principles of Islam.‘True False 124. The family of Susan Capelo places a staunch value on achieving formal, higher education. However, when Maria decided to apply to the prominent university in her city, she was not given admission because the university admitted students from only one particular class. This problem is most closely related to low: A. social mobility. B. group significance. C. emphasis on cast system. D. social potential 125, Alyson Jeffrey, a manager at Omni Corporation, believes in empowerment, upward mobility, and motivating her employees. This describes her: A. valves. B. norms. C. criterion. D. folkways. 126. In producing its electronics products, Sony Corporation sources goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production. This practice is made possible by the globalization of: A markets. B. process design C. production. D. finance 127. Which of the following statements most accurately captures the main tenet of mercantilism? A. Itis ina country's best interests to import less specialized goods than to attempt to make them at home. Its in a country’s best interests to not export products to less developed countries, D. Itis in a country’s best interests to import products that are most efficiently produced at home.128. The recent trends in international business strongly indicate that when Japanese and German businesspeople conduct trends in interior, the language in which they will communicate is almost certain to bo. A French, C. German D.US 129, The first theory of international trade emerged in England in the mid-16th century. Referred to as the theory of comparative advantage, is principle assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce. Tre False 130. If the U.S. started to import textiles from Mexico according to a free trade agreement, but the U.S. previously acquired textiles from Costa Rica for less money, what kind of trade situation would the US. bein? A Trade notification B. Trade diversion C. Trade creation D. Trade generation 131. All of the following are reasons why economic integration has never been easy to achieve or sustain, except B. A.nation as a whole may benefit significantly, but certain groups may lose C. Even though it aids the majority it has its costs . There are concems over loss of national sovereignty 132. Which one of the following dimensions focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities? A Collectivism B. Individualism C. Uncertainty avoidance133. For participating countries, a drawback of a single currency in Europe is that: A. it will be more difficult to attract imports. B. it will be more difficult to compare prices across Europe. D. costs for doing business will ineease. 134, Which of the following selections accurately depicts the levels of economic integration, from least integrated to most integrated? A. Free trade area, customs unton, common market, economic tion, and fall political union B. Common market, economic union, full political union, free trade area, and customs union C. Eeonomic union, common market, fre trade area, full political union, and customs union D. Full political union, sree trade area, common market, customs union, and economic union 135, The United States has an emphasis on individualism. This emphasis may lead to which of the following problems? ‘A. Creation of a dynamic entrepreneurial economy. B. Creating pressures for mutual self-help and collective action. C. New products and new ways of doing business 136. In the U'S., an individual can move smoothly from the working class to the upper class in a lifetime by his/her own economic achievement. Tre False 137, Similarities in the underlying structure of economic activity make it feasible to adopt a single ‘currency and use a single exchange rate as an instrument of macroeconomic policy in a(n): A. economic union. B. political union. C. optimal eurreney area. D. double currency area 138, For society to conduct itself appropriately, the individuals within it must possess varied values and norms that differentiate each of the particular individuals from all others.139. Porter's theory of national competitive advantage suggests that it isin the best interest of bi for a firm to invest in upgrading advanced factors of production. The means for accomplishing this include all of the following EXCEPT: A provide better training for employees. B. adopt policies that eliminate competition. . increase research and development activities D. develop methods to improve the skill levels of workers 140. What is the difference between folkways and mores? A Folkways are norms that are seen as central to the functioning of a society. BB. Violating mores can bring serious retribution. C. Mores include rituals and symbolic behavior D. Folkways have much greater significance than mores. 141. policy. _ dliminates trade barriers between member countries and adopts a common external trade ‘A. olobal union B. free trade area D. tariff union 142. According to Smith, countries should specialize in the production of goods for which they have an absolute advantage and then: ‘A. retain these goods for strictly domestic sales. B sell these goods tothe hishest domestic or international bidder D. protubit the import of these goods from other countries 143. How is the new generation of Japanese workers different from traditional Japanese workers? A. The new generation Japanese worker is likely to be more direc than the traditional Tepanese worker. B. The now generation Japanese worker would give up evenings, weekends, and vacations to serve the organization C. The traditional Japanese worker acts more like a Westerner, a gaijinD. The new generation Japanese worker is loyal to his boss and the organization and will remain with it for a lifetime 144, Free trade refers to a situation where a government attempts to influence through quotas or ‘duties what its citizens can buy from another country, or what they can produce and sell to another country. False