International Management: Culture, Strategy, and Behavior 11th Edition by Fred Luthans Test bank
private ownership of businesses.
an appropriate response to consumers' stated needs and desires.
insufficient security provided by government subsidies.
an ignorance of demographic information by management.
Unlike a market economy, a command economy is characterized by an ignorance of demographic
information by management. In a market economy, individuals within the community disclose wants,
needs, and desires to which businesses may appropriately respond.
References
Multiple Choice Learning Objective:
01-02 REVIEW the
major trends in
global and regional
integration.
47.
Award: 10.00 points
A _____ 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.
command economy
market economy
mixed economy
socialist 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.
References
Multiple Choice Learning Objective:
01-02 REVIEW the
major trends in
global and regional
integration.
48.
Award: 10.00 points
49.
Award: 10.00 points
The challenge for the future of the European Union is to:
have common custom duties.
have unified industrial and commercial policies.
be able to manufacture high-quality, low-cost goods.
absorb its eastern neighbors.
The challenge for the future of the European Union is to absorb its eastern neighbors, the former
communist-bloc countries. This could result in a giant, single European market. In fact, a unified
Europe could become the largest economic market in terms of purchasing power in the world.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.
_____ is the United States' largest trading partner, a position it has held for many years.
England
Canada
Japan
Mexico
Canada is the United States' largest trading partner, a position it has held for many years.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.
50.
Award: 10.00 points
After becoming part of the North American Free Trade Agreement (NAFTA) in 1994, Mexico _____.
became the major economic power in Latin America
was able to take advantage of the U.S. market
experienced a tremendous increase in transportation costs
experienced a significant increase in labor costs
In 1994, the United States, Canada, and Mexico enacted the North American Free Trade Agreement
(NAFTA), which, in essence, removed all barriers to trade among these countries and created the
world's largest free trade zone. Because of NAFTA and its successor, the United States-Mexico-
Canada Agreement (USMCA), Mexican businesses are finding themselves able to take advantage of
the U.S. market by producing goods for the U.S. market that were previously purchased by the
United States from Asia.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.
51.
Award: 10.00 points
In the context of established economies, the United States has considerable foreign direct
investment in _____.
the Netherlands
Mexico
the United Kingdom
Canada
In the context of established economies, the United States has considerable foreign direct
investment in Canada.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.
52.
Award: 10.00 points
Which of the following statements is true of the economic system of North America?
The free-market-based economy of this region allows considerable freedom in decision-
making processes of private firms.
The command economy of this region allows for high flexibility with decisions and low
barriers for other countries to establish business.
The free-market-based economy of this region results in low trade barriers when