International Management: Culture, Strategy, and Behavior 11th Edition by Fred Luthans Test bank

power and trade and
investment flows
among countries.
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 71.
Award: 10.00 points
 72.
Award: 10.00 points
Which of the following countries was among the world's 10 most competitive nations in 2018?
Germany
Singapore
Mexico
Australia
In 2018, the 10 most competitive nations were the United States of America (USA), Hong Kong SAR,
Singapore, the Netherlands, Switzerland, Denmark, the United Arab Emirates (UAE), Norway,
Sweden, and Canada.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.
What is a multinational corporation? Why would a company want to be a multinational corporation?
A multinational corporation is a firm that has operations in more than one country, international
sales, and a nationality mix of managers and owners. Firms pursue international markets to increase
their sales and net income. In recent years such well-known American MNCs as Apple, Oracle,
Coca-Cola, Ford Motor Company, ExxonMobil, Caterpillar, Walmart, Microsoft, and Google have all
earned more annual revenue in the international arena than they have in the United States.
References
Essay Learning Objective:
01-01 ASSESS the
implications of
globalization for
countries, industries,
firms, and
communities.
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 73.
Award: 10.00 points
List the important economic developments that have occurred because of the North American Free
Trade Agreement (NAFTA).
The United States, Canada, and Mexico make up the North American Free Trade Agreement
(NAFTA), which in essence has removed all barriers to trade among these countries and created the
world's largest free trade zone. A number of economic developments have occurred because of this
agreement and are designed to promote commerce in the region. Some of the more important
developments include (1) the elimination of tariffs as well as import and export quotas; (2) the
opening of government procurement markets to companies in the other two nations; (3) an increase
in the opportunity to make investments in each other's country; (4) an increase in the ease of travel
between countries; and (5) the removal of restrictions on agricultural products, auto parts, and
energy goods.
References
Essay Learning Objective:
01-01 ASSESS the
implications of
globalization for
countries, industries,
firms, and
communities.
 74.
Award: 10.00 points
In the context of global economic systems, explain a market economy.
A market economy exists when private enterprise reserves the right to own property and monitor
the production and distribution of goods and services while the state simply supports competition
and efficient practices. Management is particularly effective here since private ownership provides
local evaluation and understanding, opposed to a nationally standardized archetype. This model
contains the least restriction as the allocation of resources is roughly determined by the law of
demand. Since the interaction of the community and firms guides the system, organizations must be
as versatile as the individual consumer. Competition is fervently encouraged to promote innovation,
economic growth, high quality, and efficiency. The government may prohibit such things as
monopolies or restrictive business practices in order to maintain the integrity of the economy.
References
Essay Learning Objective:
01-02 REVIEW the
major trends in
global and regional
integration.
 75.
Award: 10.00 points
Describe how the European Union (EU) has made significant progress over the past two decades in
becoming a unified market.
The European Union (EU) has made significant progress over the past two decades in becoming a
unified market. In the early 2000s, the EU consisted of 15 nations: Austria, Belgium, Denmark,
Finland, France, Germany, the United Kingdom, Greece, the Netherlands, Ireland, Italy, Luxembourg,
Portugal, Spain, and Sweden. In May 2004, 10 additional countries, primarily located in Central and
Eastern Europe, joined the EU: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania,
Malta, Poland, Slovakia, and Slovenia. In January 2007, Romania and Bulgaria acceded to the EU,
and in July 2013, Croatia became the newest and the 28th member of the EU. Not only have most
trade barriers between the member nations been removed, but a subset of 19 European countries
have adopted a unified currency called the euro.
As a result, it is now possible for customers to compare prices between most countries and for