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

attempting to move into other countries.
The command economy of this region allows competition to strive while the government
can extend assistance to individuals or companies.
The free-market-based economy of North America allows considerable freedom in decision-making
processes of private firms.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.
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 53.
Award: 10.00 points
By the early 1990s _____ had recovered from its economic problems of the previous decade and
had become the strongest economy in Latin America.
Brazil
Argentina
Mexico
Chile
By the early 1990s Mexico had recovered from its economic problems of the previous decade and
had become the strongest economy in Latin America.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.


 

 54.
Award: 10.00 points
U.S. firms maintain particularly dominant global positions in all of the following industries except:
telecommunications.
biotechnology.
media.
textiles.
U.S. firms maintain particularly dominant global positions in technology-intensive industries,
including computing (hardware and services), telecommunications, media, and biotechnology.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.



 
 55.
Award: 10.00 points
A factory, the majority of which are located in Mexican border towns, that imports materials and
equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export is referred to
as _____.
a vertically integrated corporation
a keiretsu
a maquiladora
a governmental agency
A factory, the majority of which are located in Mexican border towns, that imports materials and
equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export is referred to
as a maquiladora.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.


 

 56.
Award: 10.00 points
In the context of established economies, which of the following observations about NAFTA is
incorrect?
Mexican businesses are able to take advantage of the U.S. market by producing goods for
that market that were previously purchased from Asia.
Mexican firms are now able to produce products at highly competitive prices thanks to
lower-cost labor and proximity to the American market.
Mexican firms can now export goods into the European community only by paying a heavy
tariff.
Mexico's trade with Asia is on the rise, which is important to the country as it wants to
reduce its overreliance on the U.S. market.
Mexican firms, taking advantage of a new arrangement that the government has negotiated with the
EU, can also now export goods into the European community without having to pay a tariff.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.


 

 57.
Award: 10.00 points
A major development in South America is:
the implementation of a single currency and a regional central bank.
the growth of intercountry trade, spurred on by the progress toward free-market policies.
the privatization of traditionally nationalized industries.
the elimination of all trade barriers among member countries.
Despite the ups and downs, a major development in South America is the growth of intercountry
trade, spurred on by the progress toward free-market policies.
References
Multiple Choice Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.

 


 58.
Award: 10.00 points
A survey of businesspeople from Argentina, Brazil, Chile, Columbia, and Venezuela found that the
_____ market, on average, was more important for their economic well-being than any other
market.
Mexican
Japanese
U.S.
European Union
A survey of businesspeople from Argentina, Brazil, Chile, Colombia, and Venezuela found that the