ADMS 1000 Chapter Notes - Chapter 9: Thomas Friedman, Corporate Welfare, Foreign Direct Investment
ADMS 1000 Full Course Notes
Document Summary
Get access
Related Documents
Related Questions
Microeconomics
| A | B | Answer |
| As a student of economics, when you speak of scarcity, you are referring to the ability of society to. | A. Extra benefit | |
| What is the economic meaning of the expression that "There is no such thing as a free lunch?" | B. Entrepreneur. | |
| Which expression is another way of saying "marginal benefit"? | C. Very limited government role in the economy | |
| A tradeoff exists between two economic goals, X and Y. This tradeoff means that. | D. Price ceilings and the resulting product shortages. | |
| The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the | E. Explicit costs. | |
| The Soviet Union economy of the 1980s would best be classified as | F. Easy entry, many firms, and differentiated products | |
| The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through | G. Product markets | |
| Laissez-faire capitalism is characterized by | H. Satisfy economic wants given limited resources. | |
| Black markets are associated with | I. Oligopoly | |
| Cash expenditures a firm makes to pay for resources are called | J. The Resource Markets | |
| Which set of characteristics below best describes the basic features of monopolistic competition | K. A command System | |
| Mutual interdependence would tend to limit control over price in which market model | L. Getting more of X requires getting less of Y | |
| Markets in which firms sell their output of goods and services are called | M. It means that there is an opportunity cost when resources are used to provide "free" products |
The primary costs of FDI to host countries are:
| Loss of sovereignty and patriotism | ||
| Adverse effects on competition and exports | ||
| Capital outflow | ||
| Loss of sovereignty, adverse effects on competition, and capital outflow |
____ suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantage by specializing in the production of certain goods or services.
| The radical view | ||
| The free market view | ||
| Pragmatic nationalism | ||
| Expropriation |
What are the benefits of FDI to home countries?
| Repatriated earnings from profits from FDI. | ||
| Increased exports of components and services to host countries. | ||
| Learning via FDI from operations abroad. | ||
| All of these answers |
When one firm enters a foreign country through FDI, its rivals are likely to follow by undertaking additional FDI in a host country to:
| Create knowledge spillover | ||
| Discover a new market for its goods | ||
| Overcome and combat market failure through FDI | ||
| Acquire location advantages or neutralize the first moverâs location advantages |
Most countries practice:
| Pragmatic nationalism | ||
| Free market based FDI | ||
| Government embracing radical view | ||
| French patriotism |
FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their responses to overcome imperfections and failures.
| True | ||
| False |
Most countries practice a totally "free market" view.
| True | ||
| False |
8. Outsourcing is the process of turning over an organizational activity to an outside supplier, located in a foreign country, which will perform it on behalf of the local firm.
| True | ||
| False |
Financial, physical, and technological resources and capabilities are all tangible assets.
| True | ||
| False |
A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.
| True | ||
| False |
An example of low power distance would be when subordinates address their bosses on a first-name basis.
| True | ||
| False |
Benchmarking is an assessment as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors.
| True | ||
| False |
A country with low-masculinity has a more subtle differentiation between the gender roles.
| True | ||
| False |
Setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.
| True | ||
| False |
Managers in low uncertainty avoidance countries rely more on experience and training than managers in high uncertainty avoidance countries who rely more on rules.
| True | ||
| False |
Informal institutions include laws, regulations, and rules.
| True | ||
| False |
The United States is often classified as a collective society.
| True | ||
| False |
A pure market economy characterized by the "invisible hand" of market forces is noted by
| John Stuart Mill | ||
| Adam Smith | ||
| Aristotle | ||
| Amatya Zen |
Culture is defined in the text as:
| The communication between members of similar location. | ||
| The collective programming of the mind, which distinguishes the members of one group or category of people from another. | ||
| The main component of formal institutions. | ||
| The attitudes and behaviors characteristic of a particular social group or organization. |
When an expat employee returns to her or his current employer but the employer does not provide attractive opportunities, she/he often may be hired by a competitor firm. Why?
| Competitor firms are also interested in globalizing their business. | ||
| Former expats bring instant expertise and experience. | ||
| Competing firms will pay a higher premium for expertise. | ||
| All of these answers |
The government taking a "hands-off approach" is known as:
| Laissez faire | ||
| Command economy | ||
| Mixed economy | ||
| Liberal approach |
Expatriate managers make ideal candidates for top management positions.
| True | ||
| False |
____ are defined as rights associated with the ownership of intellectual property.
| Patents | ||
| Copyrights | ||
| Trademarks | ||
| Intellectual property rights |
In a collective society:
| Family units are highly valued. | ||
| Being an entrepreneur is a popular mindset | ||
| Being different than your neighbor is important. | ||
| Outsiders are easily trusted. |
Which of the following definitions best defines an expatriate manager?
| A manager who works outside his or her native country | ||
| A manager of great expertise | ||
| An ex-manager rehired for advisory purposes | ||
| None of these answers |
