Article 23 of the Universal Declaration of Human Rights implies that it is unethical to employ child labor in sweatshop settings and pay less than subsistence wages, even if that happens to be common practice in some countries. This is in contrast to:
Cultural relativism.
Some contemporary moral philosophers view Kant's ethical philosophy as incomplete because his system has no place for:
moral emotions and sentiments.
Justice theories primarily focus on:
the attainment of fair and equitable distribution of economic goods and services.
The utilitarian philosophy for business ethics primarily focuses on:
weighing the benefits, costs, and risks associated with a course of action.
In a business setting, managers sometimes do not realize they are behaving unethically, primarily because they:
fail to take into account the ethical dimension of business decisions.
Which of the following is a drawback of the product life-cycle theory?
Its relevance in the modern world seems limited.
New trade theory argues that, through its impact on economies of scale, trade can:
increase the variety of goods available to consumers.
Diminishing returns to specialization occur when:
more units of resources are required to produce each additional unit.
Which of the following creates a barrier to subsequent entries in an industry dominated by first movers?
The ability of first movers to benefit from increasing returns
Which of the following helps a firm to preempt available demand, gain cost advantages related to volume, and build an enduring brand ahead of later competitors?
First-mover advantages
Porter argues that a nation's firms gain competitive advantage if their domestic consumers are:
sophisticated and demanding.
Which of the following is one of the four factors included in Porter's diamond?
Strategy, structure, and rivalry
Which of the following components of Porter's diamond is particularly important in shaping the attributes of domestically made products and in creating pressures for innovation and quality?
Demand conditions
Which of the following factor endowments would be classified as a basic factor by Michael Porter?
Natural resources
Which of the following is true of factor endowments according to Porter?
Disadvantages in basic factors can create pressures to invest in advanced factors.
According to the new trade theory, how does trade offer an opportunity for mutual gain when countries do not differ in their resource endowments or technology?
Trade increases the variety of goods available to consumers and lowers the costs of those goods.
A government should use subsidies to support promising firms that are active in newly emerging industries, according to:
strategic trade policy.
The Palladian government required that all imported products that came from Lovaskiya be checked by Palladian customs inspectors. The inspection was done at a container freight station that was both remote and poorly staffed. This delayed the Lovaskiyan c
administrative trade policy.
The country of Cadmia, which is a leading producer of bauxite, had to impose trade sanctions on Cerian soda cans in order to get the government of Ceria to enforce export restraints. This imposition by Cadmian government was undertaken to protect domestic
Retaliation
Which of the following refers to a quota on trade imposed by the exporting country, typically at the request of the importing country's government?
Voluntary export restraint (VER)
Which of the following is the most common political argument for government intervention in international trade?
Protecting jobs and industries from unfair foreign competition
Many developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries cannot initially compete with well-established industries in developed countries, according to:
infant industry argument.
Which of the following is NOT a constraint on a firm's ability to disperse its productive activities to foreign countries?
The increasing integration of the world economy
The threat of antidumping action:
limits the ability of a firm to use aggressive pricing to gain market share in a country.
Animax Limited got an order to sell 50,000 central processing units (CPUs) to Palladia, but the Palladian government stipulated that 15 percent of the component parts of those CPUs must be produced in Palladia. This stipulation by the Palladian government
local content requirement.
A charge of 15-20% was levied by the government of Cadmia on the value of automobile accessories imported from a neighboring country. This increased the price of those imported car accessories for the consumers in Cadmia. Which of the following instrument
Ad valorem tariff
According to Krugman, which of the following best indicates the dangers of a strategic trade policy?
Occurrence of a trade war
According to the free market view, how does FDI increase the efficiency of the world economy through MNEs?
The MNE is an instrument for dispersing the production of goods and services to the most efficient locations around the globe.
Direct effects of FDI on employment in the host country arise when a foreign MNE:
employs a number of host country citizens.
Location-specific advantages for a firm are those that arise from:
utilizing resource assets that are tied to a particular foreign location and valuable enough to be combined with the firm's own unique assets.
A firm is most likely to favor foreign direct investment over exporting when:
the firm wishes to maintain control over its operations and business strategy.
The pragmatic nationalist view is that:
FDI has both benefits and costs.
FDI is risky because of the problems associated with:
doing business in a different culture where the rules of the game may be very different.
Governments impose quotas to limit:
importing.
Which of the following is a major issue confronting the North American Free Trade Agreement?
Expanding the membership of the agreement
The agreement of the member-states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States is known as the:
Central American Free Trade Agreement.
Which of the following has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members?
Common market
The Maastricht Treaty called for:
establishment of the independent European Central Bank (ECB).