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| 1 | |
This occurs when networks of economic, political, social, military, scientific, or environmental interdependence grow to span worldwide distances. |
| | A) | Standardization |
| | B) | Privatization |
| | C) | Liberalization |
| | D) | Globalization |
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| 2 | |
_____ refers to the development of an increasingly integrated commercial system based on free markets in which nations are open to foreign trade and investment. |
| | A) | Economic globalization |
| | B) | Liberalization |
| | C) | Alter-globalization |
| | D) | Laissez-faire capitalism |
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| 3 | |
Protectionists: |
| | A) | are proponents of the view that the power of business in society is both excessive and inadequately checked because of its control of wealth. |
| | B) | are advocates of the pluralist theory which holds that business power is counterbalanced, restricted, and subject to defeat. |
| | C) | are proponents of trade barriers designed to shield domestic producers from foreign competition. |
| | D) | are advocates of the theory which holds that many restraints in an open society control corporate power. |
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| 4 | |
Which of the following is a major concern created by globalization affecting the global economy? |
| | A) | The tremendous growth in the combined output of developing countries. |
| | B) | The comparatively uncontrolled vast pool of liquid cash floating around the world. |
| | C) | The technological advances which have significantly increased the speed of communications. |
| | D) | The substantial reduction in transportation costs and delivery schedules of goods. |
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| 5 | |
A treaty in which two or more nations agree to reduce eliminate barriers, opening their borders to freer mutual trade is known as a: |
| | A) | partial scope agreement. |
| | B) | free trade agreement. |
| | C) | framework agreement. |
| | D) | customs union. |
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| 6 | |
All of the following are proposed goals of the EU EXCEPT: |
| | A) | substantial economic growth for many nations. |
| | B) | the removal of trade and human movement barriers among the member nations. |
| | C) | securing world stability by maintaining a vast pool of liquid cash to float around the world. |
| | D) | the development of standard rules that promote national integration. |
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| 7 | |
The NAFTA includes all of the following nations EXCEPT: |
| | A) | the United States. |
| | B) | Canada. |
| | C) | Mexico. |
| | D) | Chile. |
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| 8 | |
The trade bloc consisting of the U.S., Mexico, and Canada is known as: |
| | A) | the EU. |
| | B) | FTI. |
| | C) | NAFTA. |
| | D) | APEC. |
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| 9 | |
South America's largest trade bloc is: |
| | A) | Mercosur. |
| | B) | the Andean Community. |
| | C) | ASEAN. |
| | D) | DR-CAFTA. |
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| 10 | |
The power of a nation to govern its own affairs without outside interference is called: |
| | A) | dictatorship. |
| | B) | sovereignty. |
| | C) | globalization. |
| | D) | liberalization. |
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| 11 | |
Which of the following statements about sovereignty is false? |
| | A) | It is a complex abstraction. |
| | B) | It can refer to the ability of a state to control economic activities within and across its borders. |
| | C) | It may refer to the ultimate possession of political authority. |
| | D) | It is reinforced by global market forces. |
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| 12 | |
A system of shared knowledge, values, norms, customs, and rituals acquired by social learning is known as: |
| | A) | a hypernorm. |
| | B) | an ideology. |
| | C) | culture. |
| | D) | ethics. |
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| 13 | |
Free trade: |
| | A) | denotes the actions taken by a foreign corporation to spend substantial sums of money to produce a good in exchange for the purchase. |
| | B) | is the flow of goods and services across borders unhindered by government imposed restrictions. |
| | C) | is the underlying theory of how a business will create value by making and selling something in the market. |
| | D) | denotes the economic growth that meets the needs of the present without consuming social resources. |
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| 14 | |
Which of the following statements about the law of comparative advantage is false? |
| | A) | It follows that gain may be maximized if each nation specializes in producing products for which it has the least competitive edge. |
| | B) | It follows that maximum gain on a worldwide basis will be realized if there is no free competition in pricing. |
| | C) | It follows that maximum gain on a worldwide basis will be realized if capital flows are unrestricted. |
| | D) | It follows that gain may be maximized on a worldwide basis if there are no impediments to trade. |
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| 15 | |
According to this theory, maximum gain on a worldwide basis will be realized if there are no impediments to trade, if there is free competition in pricing, and if capital flows are unrestricted. |
| | A) | The marginalist theory |
| | B) | "Buy American" laws |
| | C) | The doctrine of protectionism |
| | D) | The law of comparative advantage |
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| 16 | |
Laws that seek to influence governments and agencies to purchase U.S.-made goods and services rather than foreign-made goods and services are known as: |
| | A) | "buy American" laws. |
| | B) | blue laws. |
| | C) | soft laws. |
| | D) | hard laws. |
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| 17 | |
The debasement of integrity for money, position, privilege, or other self-benefit is termed as: |
| | A) | manipulation. |
| | B) | exploitation. |
| | C) | lobbying. |
| | D) | corruption. |
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| 18 | |
Identify the civil society organization that has been formed to fight worldwide corruption. |
| | A) | MNC |
| | B) | LDC |
| | C) | TI |
| | D) | UN |
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| 19 | |
This statute makes it both a civil and a criminal offense to bribe an official of a foreign government or a member of a foreign political party. |
| | A) | FCPA |
| | B) | FTCA |
| | C) | FARA |
| | D) | FLSA |
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| 20 | |
All of the following observations about the FCPA are true EXCEPT: |
| | A) | it applies to the actions of U.S. corporations anywhere in the world. |
| | B) | it prohibits companies from operating in business cultures where small bribes are needed to obtain permits or licenses. |
| | C) | it defines the act of bribery as making a payment of money with the "corrupt intent" to influence any official act in favor of a company's business. |
| | D) | it holds that it is illegal to pay "commissions" to foreign consultants with the knowledge that it will be forwarded to prohibited recipients as bribes. |
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