Exam 1 Study Guide PDF

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Exam 1 (chapters 1-4) study guide...

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Chapter 1 Globalization pros and cons Globalization of markets Globalization of production Purposes of WTO Purposes of World Bank IMF pros and cons Purposes of UN Understanding FDI Lowing trade and investment barriers Moore’s law Changing demographics of the global economy Changing economic geography Stock of FDI

Sample questions 1) According to the UN Charter, one of the four purposes of the UN is to A)encourage high tariffs on imports of manufactured goods. B) be a center for harmonizing the actions of nations. C) promote the establishment of multinational treaties. D)facilitate globalization of production. E) provide enhanced protection for patents. 2) An argument in support of the falling barriers to international trade and investment is that the falling barriers A)prohibit countries from specializing in the production of goods and services. B) drive the global economy toward greater prosperity. C) reduce attacks from foreign competitors. D)increase the bargaining power of business firms by decreasing the incomes of consumers. E) reduce the need to export jobs overseas.

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Chapter 2

Political economy Collectivism vs individualism Communists vs social democrats Privatization Democracy and Totalitarianism Market economy, command economy, and mixed economy Different legal systems Differences in Contract Law CISG Property rights and corruption Intellectual property

Sample questions 1) In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as A)anarchists. B) communists. C) individualists. D)democrats. E) capitalists. 2) Jewish law is an example of what type of law system? A) autocratic B) civil C) theocratic D)universal E) common

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Chapter 3

GNI PPP HDI Innovation and Entrepreneurship and their requirements Deregulations of economies Late-mover disadvantages Risks

Sample questions 1) Only a totalitarian regime that is committed to which of the following is capable of promoting economic growth? A)limiting individualism and privatization B) command economy C) market system and strong protection of property rights D)dictatorship E) limiting human freedom 2) The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in A)deregulation and privatization of the economy. B) reduced barriers to foreign direct investment and international trade. C) the lack of incentive to engage in economic activity. D)an increase in the incentives to engage in economic activity. E) an improvement in the operating efficiency of newly privatized firms.

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Chapter 4

Cross-cultural literacy Values and norms Folkways and mores Social mobility Social stratification Class system vs class system Class consciousness Religious and ethical systems (Confucianism, Protestantism, Islam) Important languages Nonverbal communication Hofstede’s dimensions Ethnocentrism

Sample questions 1) According to Max Weber, Protestantism encouraged capitalism's development by A)emphasizing the importance of hard work and wealth creation for the glory of God and frugality. B) limiting an individual's religious freedom. C) encouraging the consumption of accumulated wealth by indulging in worldly pleasures. D)believing that salvation occurred in the next world, rather than this world. E) adhering to the hierarchical domination of religious and social life that characterized the Catholic Church. 2) According to Hofstede, in societies where ________ was emphasized, ties between individuals were tight. A)individualism B) low power distance C) collectivism D)femininity E) low uncertainty avoidance

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