SW 1 7.

Commercial jets, and containerization have all

1. Globalization of production can help companies
lower their overall cost structure or improve the quality
or functionality of their product offering. (True)
2. The World Bank has focused on policing the world
trading system and making sure nation-states adhere to
the rules laid down in trade treaties. (False)
“shrunk the globe.” (True)
8. FDI Stands for what? Foreign Direct Investment
9-10 Give me at least two advantages of
containerization. (Flexibility, Ease of Management,
Speed of Transportation, Economies of Scale, Durability,
Safety and Security, and Standardization.)

3. When Cyprus had a financial crisis, it went to the QUIZ 1

World Bank, known as the lender of last resort, to bail it
1. Because Russia has shown signs of shifting back
out. (False)
toward greater state involvement in economic activity
4. One of the UN's central mandates is the promotion of and authoritarian government, doing business in Russia
higher standards of living, full employment, and is considered risky. (True)
conditions of economic and social progress and
2. According to globalization critics, the decline in
development. ( True)
unskilled wage rates is due to the migration of low-
5. Rivers Inc., a U.S.-based sports apparel manufacturer, wage manufacturing jobs offshore and a corresponding
sets up a production unit in China to take advantage of reduction in demand for unskilled workers. (True)
the lower labor costs there. This is an example of
3. Evidence suggests that technological change has had
foreign direct investment. (True)
a bigger impact than globalization on the declining
6-10 Give me at least 5 countries under G20. (Argentina, share of national income enjoyed by unskilled labor.
Germany, Republic Korea, USA, Australia, India, Russia, (True)
European Union, Brazil, Indonesia, Saudi Arabia,
4. According to supporters of free trade, as countries
Canada, Italy, South Africa, China, Japan, Turkey,
get richer they commit greater violation of
France, Mexico, United Kingdom)
environmental and labor regulations. (False)
SW 2 5. A firm needs to become a multinational enterprise to
1. World Bank gives aid of $100 million to Kenya for engage in international business. (False)
creating rural health care facilities. This is an example of
foreign direct investment. (False)
Because Russia has
2. The lowering of barriers to international trade
enables firms to view the world, rather than a single
country, as their market. (True)
shown signs of
3. The cost of microprocessors continues to fall, while
their power increases. This statement supports the
shifting back toward
predictions made by Moore's Law. (True)

4. Foreign direct investment by non-U.S. firms increased

greater state
because they wanted to disperse production activities
to optimal locations and to build a direct presence in
involvement in
major foreign markets. (True)

5. Outsourcing is a process that is limited to

economic
manufacturing enterprises. (False)

6. More than half of the world’s population uses the

activity and
internet (True)
authoritarian
 A) the lowering of barriers to cross-border trade and
government, doing investment.

business in Russia is 15. Which of the following is true of the IMF?

D) It has emerged as a significant player in the global

considered risky. economy.

SW 3
TRUE 1.A ________ is a less rigid form of social stratification
6. According to supporters of debt relief, new in which social mobility is possible.
democratic governments in poor nations should not be
Class System
forced to honor debts incurred by corrupt and
dictatorial predecessors. (True) 2. Sex before marriage
7. A firm needs to become a multinational enterprise to
Mores
engage in international business. (False)
3. India's caste system is among the world's oldest
8. ________ refers to the shift toward a more
forms of surviving social stratification.
integrated and interdependent world economy
True
D) Globalization
4.Culture is group of people sharing a common set of
9. In 2008 and 2009, the ________ became the forum
values and norms.
through which major nations attempted to launch a
coordinated policy response to the global financial False
crisis, which started in America
5.This are the routine conventions of everyday life.
C) Group of Twenty (G20)
Folkways

10.) Which of the following factors hinders globalization

6.RA 11313 or Safe Spaces Act
of consumer goods market?
Laws
A) national differences in tastes and preferences
7.Which of the following refers to the extent to which
11.) What impedes firms from achieving the optimal
individuals can move out of the strata into which they
dispersion of their productive activities to locations
are born?
around the globe?
Social Mobility
A) transportation costs
8.Education plays an important role, from an
12. ) The General Agreement on Tariffs and Trade
international business perspective, as a determinant of
(GATT) was responsible for
national competitive advantage.
B) policing the global marketplace.
True
13.) The ________ is primarily responsible for policing
9.Upon meeting a foreign business executive, a
the world trading system and making sure nation-states
Japanese executive will hold his business card in both
adhere to the rules laid down in trade treaties signed by
hands and bow while presenting the card to the
member states.
foreigner.
D) World Trade Organization
True
14.) The World Trade Organization promotes
10.Folkways include rituals and symbolic behavior.
True
11.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
12.Social structure indicates how a society is organized
in terms of the values, norms, and relationships that are
part of its fabric
True
13.Mores are actions of little moral significance. Rather,
they are social conventions that deal with things like
appropriate dress code, good social manners, eating
with the correct utensils, neighborly behavior, and so
on
14.Nudity and Rape
Taboos
15.A caste system is a closed system of stratification in
which social position is determined by the family into
which the person is born.
True
16.When Jana visits her mother, she takes great pains
to watch her language and use good manners because
that is what her mother expects of her. This
demonstrates the concept of
Folkways
17.A class system is a rigid form of social stratification in
which the position a person has by birth cannot be
changed through his or her own achievements or luck.
False
18.Values form the bedrock of a culture
True
19.Wearing of proper uniform
Folkways
20.In today's world of global communications, rapid
transportation, and global markets, cultural differences
have ceased to exist.
False
QUIZ 2
1.Hindus believe
in reincarnation, or rebirth into a different body, after
death.
2.Because of its individualistic mind-set, Japanese
culture is more supportive of entrepreneurial activities
than American culture.
False
3.The ________ refers to the extent to which a culture
programs its citizens to accept delayed gratification of
their material, social, and emotional needs.
long-term versus short-term orientation dimension
4.What is ethnocentrism?
a belief in the superiority of one's own ethnic group or
culture
5.A major difference between Buddhism and Hinduism
is that unlike Hinduism, Buddhism
does not support the caste system.
6.Max Weber theorized that there was a relationship
between Protestantism and the emergence of modern
capitalism because
Protestant ethics emphasize the importance of hard
work and wealth creation and frugality.
7.Hofstede's results, as might be expected, showed that
nations such as ________ scored low on long-term
orientation.
the United States and Canada
8.Both Hindus and Buddhists stress the afterlife and
spiritual achievement rather than involvement in this
world.
True
9.Guanxi are relationship networks supported by
reciprocal obligations.
True
10.Hofstede's research has been criticized because it
was culturally bound.
True
11.Hofstede's masculinity versus femininity dimension
looked at the relationship between gender and work
roles and found that in
masculine cultures, sex roles were sharply
differentiated, and traditional "masculine values"
determined cultural ideals.
12.Religion may be defined as
shared beliefs and rituals that are concerned with the
realm of the sacred.
13.The most widely spoken language in the world is
Mandarin
False
14.The social organization of Western society tends to
emphasize on
individual achievement.
15.Martin worried a lot about his job, which he chose
specifically because it was very structured with clear
rules and regulations. He carefully planned his career to
maximize job security and retirement benefits. Martin
would rate high on which of Hofstede's four
dimensions?
uncertainty avoidance
16.According to Geert Hofstede's study, which of the
following cultural dimensions would be characterized by
a greater readiness to take risks and less emotional
resistance to change?
low uncertainty avoidance
17. ________ are social conventions concerning things
such as the appropriate dress code in a particular
situation, good social manners, eating with the correct
Folkways
18.Max Weber believed that Protestantism encouraged
capitalism's development by emphasizing the
importance of wealth creation and frugality.
True
19.Which of the following is an example of
ethnocentrism?
An American manager criticizes the cultural practices of
Saudi Arabia, when he is sent there on business,
because it differs from his own cultural norms.
20.________ refers to a society that allows relatively
free gratification of basic and natural human drives
related to enjoying life and having fun.
Indulgence
21.Hofstede's uncertainty avoidance dimension
considered
the extent to which different cultures socialized their
members into accepting ambiguous situations and
tolerating uncertainty
22.Ethical systems are
a set of moral principles, or values, that are used to
guide and shape behavior.
23.The ________ is a research project spanning more
than 100 countries that explores people's values and
norms, how they change over time, and what impact
they have in society and business.
World Values Survey
24.Hinduism and Buddhism both stress the importance
of
25.For international businesses, the connection
between culture and competitive advantage is
important because
a strong connection is likely to produce the most viable
competitors.
26.According to ________, suffering originates in
people's desires for pleasure.
Buddhism
27.Several studies have shown that economic
advancement and ________ are important factors in
societal change.
globalization
28.The individualism versus collectivism dimension of
Hofstede's study explored
the relationship between the individual and his or her
fellows.
29.Unspoken language refers to nonverbal
communication
True
30.Which of the following observations is correct?
The economic principles of Islam prohibit the payment
or receipt of interest.
31.Social rules and guidelines that prescribe appropriate
behavior in particular situations are best described as
norms.
32.A Japanese executive's ritual of presenting a business
card to a foreign business executive is an example of
a folkways.
33.The system of values and norms that are shared
among a group of people and that when taken together
constitute a design for living best defines
culture.
34.The emphasis on individualism in the United States
results in which of the following advantages?
Executives are exposed to different ways of doing
business.
35.Which of the following sociologists made a
connection between Protestant ethics and "the spirit of
capitalism"?
Max Weber
36.A caste system differs from a class system because
it is not possible for an individual to change his or her
caste, while a class system allows people to change
their class through individual achievement.
37.The ________ dimension of Hofstede's study
explores how a society deals with the fact that people
are unequal in physical and intellectual capabilities.
power distance
38.Hofstede's ________ dimension measured the
extent to which different cultures socialized their
members into accepting and tolerating ambiguity.
uncertainty avoidance
39.Which of the following statements about the use of
spoken language is true?
Most people prefer to converse in their own language
rather than English.
40.Hinduism is the second largest religion.
False
Online Short Quiz #1
1.Which feature of a common market differentiates it
from a customs union?
allows factors of production to move freely among
members
2.Roy is a Filipino citizen working in Russia. His Income
earned will form part of the GNP of the Philippines.
True
3.________ eliminates trade barriers between member
nations, adopts a common external policy, and permits
factors of production to move freely between member
countries but it also requires a common currency,
harmonization of members' tax rates, and a common
monetary and fiscal policy.
An economic union
4.Three countries agree to remove barriers to trade
between member countries and adopt a common
external trade policy toward nonmembers. They also
agree to allow people and other factors of production
to move freely across their borders. Which level of
economic integration is this an example of?
common market
5.There are 9 member countries of ASEAN
False 1.What was the main objection raised by those in the
United States and Canada who opposed the ratification
6.NAFTA consists of Venezuela, Russia, and China
of the NAFTA?
False
job losses
7.Which feature of a customs union differentiates it
2. Why doesn't Great Britain use the euro as its national
from a free trade area?
currency?
a common external trade policy toward nonmembers
It would have to relinquish control of its monetary
policy to the EU.

8.Ana, a widow is foreign National working in the 3.Which of the following is directly elected by the
Philippines. Her income will form part of the GNP of the populations of the member states and is primarily a
Philippines. consultative rather than legislative body?

False the European Parliament

9.An import tariff is occasionally practice in developed
countries to generate revenues.
False
10.Which feature of an economic union differentiates it
from a common market?
a common monetary and fiscal policy
11.________ has no barriers to trade between member
countries, includes a common external trade policy, and
allows factors of production to move freely between
members.
A common market
4.Regional economic integration has created significant
opportunities for businesses to grow the market for
their goods and services and lower their factor costs
True
5.Because of the fact that everyone benefits from
economic integration, it is easy to achieve and sustain.
False
6.Linking neighboring countries economically and
making them interdependent
creates incentives to increase political cooperation as
well.

12.The largest export and Importer in BRICS is Russia. 7.Which level of economic integration eliminates trade
barriers between member countries and adopts a
False common external trade policy?
13.The main goals of ASEAN are to increase economic customs union
growth, social progress and promote regional space and
stability. 8.Which of the following explains why economic
integration has never been easy to achieve or sustain,
True despite the strong economic and political arguments in
14.BRICS is the most integrated trade block in the world support?
and formed in the year 1951 While a nation as a whole may benefit significantly,
False certain groups may lose.

15.India's Major import from russia are Gems and 9.Which of the following is seen as a benefit of the
Jewelry euro?

True lower foreign exchange and hedging costs

10.There are 8 member countries of ASEAN

False
QUIZ 3
11.Concerns about national sovereignty in the EU have
been a major impediment to economic integration.
True
12.Since its establishment, the euro has had a stable
trading history.
False
13.COMESA consists of 19 member countries
True
14.A key benefit resulting from the adoption of the euro
is the ability to compare prices across member markets.
True
15.Which of the following is a reason Turkey is not yet a
member of the EU?
There are concerns over human rights issues in the
country.
16.Which of the following is seen to be a consequence
of the expansion of the EU from 15 nations to 28
nations?
delays in decision-making processes
17.________ involves the free flow of products and
factors of production between member countries, the
adoption of a common external trade policy, a common
currency, harmonization of members' tax rates, and a
common monetary and fiscal policy.
An economic union
18.In a customs union, trade barriers are eliminated
among member countries, and each country maintains
its own external trade policies.
False
19.Why is the European Council said to be the ultimate
controlling authority within the EU?
Draft legislation from the commission can become EU
law only if the council agrees.
20.Which of the following occurs when lower-cost
external suppliers are replaced by higher-cost suppliers
within the free trade area?
trade diversion
21.Charlyce lives in a country where there are no
barriers to the trade of goods and services. This is called
a free trade area.
True
22.India is the biggest trading country in both imports
and exports among SAARC members.
True
23.Three long-term EU members, Great Britain,
________, and Sweden, have not adopted the euro.
Denmark
24. Which of the following observations is true of the
euro?
It required participating countries to give up control
over monetary policy.
25.A central reason for the establishment of the EU was
the devastation of Western Europe during two world
wars and the desire for a lasting peace.
True
26.South Korea is part of BRICS
False
27.China's top import from brazil are Oil seeds.
True
28.Establishment of the euro created the largest
currency zone in the world, replacing the position the
U.S. dollar had held for decades.
False
29.NAFTA consists of 5 participating countries
False
30.Which of the following is true of ASEAN?
It is slowly progressing toward establishing a free trade
zone.
31.The ultimate controlling unit within the EU is the
Council of the European Union.
32.The United States, Canada, and Mexico are member
nations of
NAFTA.
33.________ occurs when high-cost domestic producers
are replaced by low-cost producers within the free
trade area.
Trade creation
34.From least integrated to most integrated, the levels
of economic integration are a:
free trade area, a customs union, a common market, an
economic union, and a political union.
35.Which of the following is a reason the European
Union is considered an imperfect economic union?
Not all members of the union have adopted the euro.
36.Country A and Country B entered into a free trade
agreement recently. After this, Country A starts
importing heavy machinery from Country B. Country A
previously imported such machinery at lower rates from
another country. Which of the following has occurred in
this scenario?
trade diversion
37.The move toward economic union raises the issue of
how to make a coordinating bureaucracy accountable
to the citizens of member nations. Which of the
following offers a solution to this problem?
a political union
38.The Council of the European Union is responsible for
proposing EU legislation, implementing it, and
monitoring compliance with EU laws by member states.
False
39.Which treaty, signed in February 1992, committed EC
members to adopting a common currency by January 1,
1999?
the Maastricht Treaty
40.Country X and Country Y reach an agreement to
boost bilateral trade. They agree to remove all barriers
to the trade of goods and services. They, however, are
free to determine their own trade policies with regard
to nonmembers. Which level of economic integration is
this an example of?
a free trade area
QUIZ 4
1.Currency speculation typically involves the short-term
movement of funds from one currency to another in the
hopes of profiting from shifts in exchange rates.
True
2.It occurs when inflation rises to 10% or more.
Galloping Inflation
3.A currency is said to be freely convertible when
both residents and nonresidents are allowed to
purchase unlimited amounts of a foreign currency with
it.
4.Which of the following occurs when traders start
moving as a herd in the same direction at the same
time?
bandwagon effect
5.Assume that the current exchange rate is €1 = $1.50.
If you exchange 1,000 euros for dollars, you will receive
$1,500.
6.Which of the following is the most important foreign
exchange trading center?
London
7.Currency ________ typically involves the short-term
movement of funds from one currency to another in the
hopes of profiting from shifts in exchange rates.
speculation
8.Galloping inflation occurs when prices skyrocket by
more than 50% per month
False
9.It is a person or firm who arranges transactions
between a buyer and a seller
Broker
10.Assuming the 30-day forward exchange rate was $1
= 130 and the spot exchange rate was $1 = ×120, the
dollar is selling at a ________ on the 30-day forward
market.
premium
11.Bandwagon is about assuming a claim that is true
because many or most others believe on it.
True
12.________ draws on economic theory to construct
sophisticated econometric models for predicting
exchange rate movements.
Fundamental analysis
13.It occurs when prices rise slowly.
Creeping Inflation
14.The purchasing power parity (PPP) theory argues
that the exchange rate will
change if relative prices change.
15.Floating Exchange rate is a system in which the
interplay of the market forces of demand and supply
determine a currency's value.
True
16.If the spot exchange rate is £1 = $1.50 when the
market opens, and £1 = $1.48 at the end of the day, the
pound has appreciated, and the dollar has depreciated.
False
17.The foreign exchange market converts the currency
of one country into that of another country.
True
18.Which of the following involves borrowing in one
currency where interest rates are low, and then using
the proceeds to invest in another currency where
interest rates are high?
carry trade
19.A firm or individual that buys foreign exchange from
one party and then sells it to another party.
Foreign Exchange Dealer
20.It is the trading of one currency for another
Choice not Given
21.________ uses price and volume data to determine
past trends, which are expected to continue into the
future.
Technical analysis
22.Assuming that your country have this falling pressure
the remedy that you need to do is to sell your domestic
currency and buy foreign exchange currency.
False
23.Carry trade is a kind of speculation that involves
borrowing in one currency where interest rates are low
and then using the proceeds to invest in another
country where interests are high.
True
24.Purchasing power parity theory states that given
relatively efficient markets, the price of a "basket of
goods" should be
roughly equivalent in each country.
25.A pair of shoes costs £40 in Britain. An identical pair
costs $50 in the United States when the exchange rate
is £1 = $1.50. Which of the following is correct?
The United States offers a better deal.
26.To reduce the value of the currency the government
needs to make the interest higher
False
27.This is the risk that a company faces when it's buying
a product from a company located in another country
Transaction exposure
28.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.
29.Fixed exchange rate is a system in which the
interplay of the market forces of demand and supply
determine a currency's value.
False
30.A fixed exchange rate is one in which the value of a
currency fluctuates in response to supply and demand
False
31.To minimize the risk of an unanticipated change in
exchange rates, a company can protect itself by
entering into a forward exchange contract.
True
32.The purchasing power parity (PPP) theory tells us
that a country with a high inflation rate will

see depreciation in its currency exchange rate.

33.The value of a currency is determined by the

interaction between the demand and supply of that
currency relative to the demand and supply of other
currencies.

True

34.Assume that the interest rate on borrowing in Japan

is 1 percent, while the interest rate on deposits in
Australian banks is 5 percent. A trader borrows in yen
and then converts the money into Australian dollars and
deposits it in an Australian bank to make a 4 percent
margin. Which type of trade is this an example of?

carry trade

35.The forex market is open 24 hours a day, seven days

a week

False

36.When prices increases by 2% or less every year, it

results to economic growth.

True

37.The ________ suggests that given relatively efficient

markets, the price of a "basket of goods" should be
roughly equivalent in each country.

purchasing power parity theory

38.An exchange rate of €1 = $1.30 indicates that

one euro buys 1.30 dollars.

39.Inflation occurs when

the quantity of money in circulation rises faster than the

stock of goods and services.

40.Parla liked to gamble, so she sometimes moved her

funds from dollars to euros in the hope that she would
make money based on the exchange rates. This
demonstrates a carry trade.

True