GSCM 311 MIDTERM QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
Protectionism is
1. the practice of the businesses only allowing a certain amount of imports a year to
protect their supply chains from unethical practices other countries might deem ethical
2. the practice of businesses and governments to collude on protecting fledgling
companies by only allowing them to sell within the local region
3. the practice of reducing tariffs with other countries to protect trading relationships.
4. the practice of shielding a country's domestic industries from foreign competition by
taxing imports. - Answers -4
According to the reading, which of the following is a free trade agreement that will
create the world's largest trading bloc and mark a significant achievement for China as it
battles the U.S. for influence and economic supremacy in the Asia-Pacific region.
1. NAFTA
2. Mercosur
3. RECP (Regional Comprehensive Economic Partnership)
4. European Union - Answers -3
Egypt can produce cotton sheets very efficiently (lower opportunity costs) but can't
produce plastic very efficiently. According to competitive advantage Egypt should
1. Export cotton sheets and import plastic
2. Export plastic and import cotton sheets
3. Export both cotton sheets and plastic
4. Import both cotton sheets and plastic - Answers -1
"Creative destruction" , where industries undergo dramatic changes or are replaced by
new industries in response to changing consumer preferences and innovation, resulting
in a demand for a labor market that is:
1. Cheaper
2. Larger
3. More skilled
4. More flexible - Answers -4
Which of the following is a benefit of Global Trade?
1. Jobs and investment are often exchanged and flow both ways
2. Raise the standard of living for both developed and developing nations
3. Experiencing automation
4. All of the above - Answers -4
World Health Organization, globalization refers to the opening of international borders
for faster flows of.
, 1. Goods, services and finance
2. All of the above
3. Ideas
4. People - Answers -2
According to Milton Friedman, access to cheaper labor internationally has increased the
wage gap between high-skilled jobs and low-skilled jobs in advanced countries.
1. FALSE
2. TRUE - Answers -2
The Bretton Woods System became the foundation of world trade and created financial
commodity interdependence based on the US dollar.
1. FALSE
2. TRUE - Answers -2
Who is Thomas Friedman?
1. Someone who contributed to the development of electricity as a power source
leading to some electric-powered manufacturing and the electric telegraph which
revolutionized communication
2. Someone who observed the world has moved from periods of being round (where
trade barriers are high) to periods of being flat (where barriers to trade are lowered)
3. Someone who organized the Kerosine oil industry making cheap, bright light
available to the masses
4. Someone who specialized and divided labor, helping to spark a second Industrial
Revolution in the latter part of the 19th century and early 20th century - Answers -2
Which issue do all national cultures view as unethical and immoral?
1. Bribery
2. Caste systems
3. None of the above
4. Child Labor
5. Freely Sharing Intellectual Property - Answers -3
Based on the Case "Did We Expand Too Quickly?", what was the initial "problem at
hand" that prompted discussion about expansion issues in the UK?
1. Newspapers forced them to close by swaying public opinion
2. A climber sued the company after falling 15 feet and hurting his back
3. A drink machine was not licensed on the property
4. The 102 injuries sustained shortly after the gym's opening - Answers -2
From an operational perspective, what is the primary concern when choosing an
ownership model for international operations?
1. Unknown externalities
2. Market adaptability
3. Operational support
4. Social-cultural factors - Answers -3
ACCURATE ANSWERS
Protectionism is
1. the practice of the businesses only allowing a certain amount of imports a year to
protect their supply chains from unethical practices other countries might deem ethical
2. the practice of businesses and governments to collude on protecting fledgling
companies by only allowing them to sell within the local region
3. the practice of reducing tariffs with other countries to protect trading relationships.
4. the practice of shielding a country's domestic industries from foreign competition by
taxing imports. - Answers -4
According to the reading, which of the following is a free trade agreement that will
create the world's largest trading bloc and mark a significant achievement for China as it
battles the U.S. for influence and economic supremacy in the Asia-Pacific region.
1. NAFTA
2. Mercosur
3. RECP (Regional Comprehensive Economic Partnership)
4. European Union - Answers -3
Egypt can produce cotton sheets very efficiently (lower opportunity costs) but can't
produce plastic very efficiently. According to competitive advantage Egypt should
1. Export cotton sheets and import plastic
2. Export plastic and import cotton sheets
3. Export both cotton sheets and plastic
4. Import both cotton sheets and plastic - Answers -1
"Creative destruction" , where industries undergo dramatic changes or are replaced by
new industries in response to changing consumer preferences and innovation, resulting
in a demand for a labor market that is:
1. Cheaper
2. Larger
3. More skilled
4. More flexible - Answers -4
Which of the following is a benefit of Global Trade?
1. Jobs and investment are often exchanged and flow both ways
2. Raise the standard of living for both developed and developing nations
3. Experiencing automation
4. All of the above - Answers -4
World Health Organization, globalization refers to the opening of international borders
for faster flows of.
, 1. Goods, services and finance
2. All of the above
3. Ideas
4. People - Answers -2
According to Milton Friedman, access to cheaper labor internationally has increased the
wage gap between high-skilled jobs and low-skilled jobs in advanced countries.
1. FALSE
2. TRUE - Answers -2
The Bretton Woods System became the foundation of world trade and created financial
commodity interdependence based on the US dollar.
1. FALSE
2. TRUE - Answers -2
Who is Thomas Friedman?
1. Someone who contributed to the development of electricity as a power source
leading to some electric-powered manufacturing and the electric telegraph which
revolutionized communication
2. Someone who observed the world has moved from periods of being round (where
trade barriers are high) to periods of being flat (where barriers to trade are lowered)
3. Someone who organized the Kerosine oil industry making cheap, bright light
available to the masses
4. Someone who specialized and divided labor, helping to spark a second Industrial
Revolution in the latter part of the 19th century and early 20th century - Answers -2
Which issue do all national cultures view as unethical and immoral?
1. Bribery
2. Caste systems
3. None of the above
4. Child Labor
5. Freely Sharing Intellectual Property - Answers -3
Based on the Case "Did We Expand Too Quickly?", what was the initial "problem at
hand" that prompted discussion about expansion issues in the UK?
1. Newspapers forced them to close by swaying public opinion
2. A climber sued the company after falling 15 feet and hurting his back
3. A drink machine was not licensed on the property
4. The 102 injuries sustained shortly after the gym's opening - Answers -2
From an operational perspective, what is the primary concern when choosing an
ownership model for international operations?
1. Unknown externalities
2. Market adaptability
3. Operational support
4. Social-cultural factors - Answers -3
