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IB 300: Exam 2
Chapters 6 through 10
50
Business
Undergraduate 3
10/11/2014
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Term
Privately owned companies sometimes complain that government-owned companies have the following unfair advantages:
 Definition
access to government contracts.
Term
Barriers to trade:
 Definition
cost consumers billions of dollars per year.
Term
Customs procedures in many countries often:
 Definition
discriminate against imports and favor exports.
Term
The most common form of direct government participation in trade is:
 Definition
the subsidy.
Term
The oldest orderly marketing arrangement, which was disbanded through the WTO, is the:
 Definition
Multi-Fiber Agreement (MFA).
Term
The United States allocates quotas to 40 countries for specific tonnages of:
 Definition
sugar.
Term
Nuisance tariffs:
 Definition
annoy the importers with red tape and administrative paperwork.
Term
The primary motivation of tariffs is to:
 Definition
raise the price of imports, to protect domestic goods.
Term
New types of dumping include:
 Definition
cultural, social, financial services, and tax dumping.
Term
Social dumping occurs when an exporting country:
 Definition
creates unfair competition based on lower costs, which undermines social support systems to the worker.
Term
The Foreign Corrupt Practices Act is U.S. legislation that:
 Definition
prohibits bribery by American companies abroad.
Term
Running afoul of miscellaneous laws in a foreign country is:
 Definition
a serious error, so the local law should be known.
Term
Punitive damages in product liability cases can be awarded in:
 Definition
the United States.
Term
In the U.S. court system, tort claims may result in:
 Definition
exceedingly large awards.
Term
The end result of legal trade obstacles is often:
 Definition
higher costs to consumers.
Term
Unlike antitrust or competition proceedings in the EU, in the United States such proceedings:
 Definition
may involve civil and criminal penalties.
Term
The United States and the EU:
 Definition
both apply antitrust law extraterritorially.
Term
U.S. antitrust law is applied:
 Definition
to all firms, including extraterritorially.
Term
Patent trolling is the process of:
 Definition
looking for loopholes in patent protection and exploiting them.
Term
WIPO is a:
 Definition
UN agency that administers intellectual property treaties and advises countries on intellectual property- related administrative issues.
Term
Who took the United States off the gold system?
 Definition
President Nixon
Term
The SDR is:
 Definition
an international reserve asset created to supplement members' existing reserve assets (also known as special drawing rights).
Term
What is appealing about the gold standard is:
 Definition
its simplicity.
Term
In 1717, Sir Isaac Newton took Britain from the silver standard (pounds sterling) to:
 Definition
the gold standard, with fixed rates.
Term
The price of gold since about 1200 A.D. has been:
 Definition
trending upward.
Term
The balance part of the BOP is explained by:
 Definition
the accounts being double-entry, so they are always balanced.
Term
Balance-of-payments data:
 Definition
reveal demand for a country's currency.
Term
The inflation rate determines:
 Definition
the real price of borrowing in capital markets.
Term
The Economist's Big Mac index (May 2010) suggests that against the dollar, the Chinese yuan is:
 Definition
quite undervalued, since the Chinese Big Mac is almost 50 percent less expensive than the U.S.-dollar Big Mac.
Term
The Fisher effect states that the real interest rate:
 Definition
is the nominal rate minus the expected inflation rate.
Term
Historically, more aspects of ______________ have been standardized and coordinated worldwide by companies than has been the case for other value chain activities such as __________.
 Definition
manufacturing; marketing
Term
When a company faces strong pressures for both reducing costs and adapting products for local markets, it should tend to use a:
 Definition
transnational strategy.
Term
When a company faces strong pressures for reducing costs and limited pressure to adapt products for local markets, it should tend to use a:
 Definition
global strategy.
Term
When there is strong pressure for a company to adapt its products or services for local markets, it should tend to use a:
 Definition
multidomestic strategy.
Term
Action plans to enable organizations to reach their objectives are known as:
 Definition
competitive strategies.
Term
To set corporate objectives, management must first:
 Definition
define the company's vision and mission.
Term
Knowledge that an individual has but that is difficult to express clearly in words, pictures, or formulae, and therefore difficult to transmit to others, is known as:
 Definition
tacit knowledge.
Term
According to the text, value chain analysis focuses primarily on which question?
 Definition
"How will this customer value be created?"
Term
An assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations and intended to determine where and to what extent value is added to the final product or service is known as:
 Definition
value chain analysis.
Term
According to the text, the firm's ultimate manager of strategic planning is the:
 Definition
firm's chief executive officer.
Term
In larger, older organizations:
 Definition
more decisions are made at headquarters of the parent company.
Term
Decisions to standardize product and equipment with which to make it and to tailor it to fit each national market are most likely to be made by:
 Definition
IC headquarters.
Term
Proponents of the horizontal corporation:
 Definition
state that this approach to organizing helps to place more decision-making responsibility in the hands of middle managers and other skilled professionals.
Term
The potential benefits of the virtual corporation concept include that:
 Definition
it permits greater flexibility than is associated with more typical corporate structures.
Term
__________ are organizational forms in which product divisions are defined as though they were independent businesses.
 Definition
Strategic business units
Term
The __________ organization has evolved from management's attempt to mesh product and regional and functional expertise while maintaining clear lines of authority.
 Definition
Matrix Organization
Term
A structure organized by more than one dimension at the top level is known as a:
 Definition
hybrid organization.
Term
An organization in which top-level divisions are required to heed input from a staff composed of experts of another organizational dimension in an attempt to avoid the double-reporting difficulty of a matrix organization but still mesh two or more dimensions is known as a:
 Definition
matrix overlay.
Term
The regionalized organization seems to be popular with companies that:
 Definition
manufacture products with a low technological content requiring strong marketing ability.
Term
Disadvantages of the regionalized organization structure include:
 Definition
none of the above
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