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6. An act, as simple as shaking hands when meeting new people is an example of:

  • mores
  • social stratification
  • symbolic behavior.
  • values

7. A group of people who share a common set of values and norms form a:

  • society
  • culture
  • country
  • caste

8. Which of the following refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country?

  • Offshoring
  • Free trade
  • Protectionism
  • Economic patriotism

9. Identify the theory that supports the view that in some cases countries export for the reason that the world market can support only a limited number of firms.

  • New trade theory
  • Heckscher-Ohlin theory
  • Smith's theory
  • Ricardo's theory

10. Which of the following is a reason why the European Union is considered an imperfect economic union?

  • Almost all markets are heavily regulated.
  • Not all members of the union have adopted the euro.
  • Factors of production are not allowed to move freely between member countries.
  • Products and services are not allowed to move freely between member countries.

11. The United Nations Universal Declaration of Human Rights, related to employment, upholds all of the following EXCEPT:

  • equal pay for equal work.
  • protection against unemployment.
  • prohibition of trade unions.
  • just and favorable work conditions

12. Which of the following refers to the extent to which individuals can move out of the strata into which they are born?

  • Class system
  • Individual potential
  • Social mobility
  • Caste stratification

13. Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because of all of the following reasons EXCEPT:

  • they are psychologically and geographically closer to the parent company.
  • they may be surrounded by local employees who have less rigorous ethical standards.
  • they are away from their ordinary social context and supporting culture.
  • they may be based in a culture that does not place the same value on ethical norms important in the manager's home country.

14. A _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

  • free trade area
  • bonded market
  • common market
  • customs union

15. Which of the following is the prime reason why Africa has attracted FDI in recent years?

  • Raw material availability
  • Growth of the services sector
  • Complete deregulation of markets
  • Wave of privatization

16. grants permission to another company in a different country to use its brand name.

  • When the firm produces products that have a low value-to-weight ratio
  • When the firm needs tight control over a foreign entity
  • When the firm has know-how that can be adequately protected by a licensing contract
  • When a firm's skills and know-how are amenable to licensing

17. Cultural relativism suggests that:

  • a firm should adopt the ethics of the culture in which it is operating.
  • the only social responsibility of a firm is to increase profits.
  • a firm's ethical policies should remain the same in all cultures.
  • a multinational should follow its home-country cultural practices in all the host-countries where it has operations.

18. Which of the following statements would most likely be made by a supporter of globalization?

  • Air pollution and toxic runoff problems increase with global economic growth.
  • Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources.
  • Globalization encourages the adoption of uniform and superior standards for combating environmental problems.
  • Global competition discourages resource-saving technologies, which are costly.

19. The tenet of _____ is that the welfare of society is best served by letting people pursue their own economic self-interest.

  • communism
  • anarchism
  • individualism
  • socialism

20. Interdependent political, economic, and legal systems of a country make up its:

  • cultural environment.
  • political economy.
  • socioeconomic fabric.
  • administrative agenda.