Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Development
Q:
The sunk costs error occurs when decision makers forget that current choices cannot correct the past.
Q:
Which of the following organizations is a firm that makes products in one country and then distributes and sells them in others?
A) Importer
B) Exporter
C) Multinational firm
D) International firm
E) Direct foreign investor
Q:
The availability bias describes the actions of decision makers who try to create meaning out of random events.
Q:
What are the four components of national competitive advantage?
Q:
The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.
Q:
Discuss the differences between absolute advantage and comparative advantage.
Q:
Marty had arranged for a high-profile speaker to deliver the keynote address at her college's annual function. However, due to unforeseen circumstances, the speaker was forced to drop out at the last moment. Marty reacts to this news by saying, "I knew all along that this would happen." This is an example of the ________.
A) anchoring effect
B) availability bias
C) self-serving bias
D) hindsight bias
Q:
Whenever anyone praises Mark for his good performance, he has the tendency to attribute his success to his personal qualities such as his ability to thrive under pressure and his eye for detail. However, any negative performance feedback is always met with excuses such as unsupportive team members or insufficient time. This is an example of the ________.
A) self-serving bias
B) confirmation bias
C) representation bias
D) hindsight bias
Q:
Explain why fluctuations in exchange rates have significant influence on the balance of trade.
Q:
"We can't stop now. We've already invested $100,000 in the project." This speaker is acting on the ________.
A) anchoring effect
B) availability bias
C) representation bias
D) sunk costs error
Q:
Why should companies conducting international operations be concerned about exchange rate fluctuations?
Q:
The last time he flew Jet Value Air, Juan's plane developed a fuel leak and had to make an emergency landing. The time before that, his plane was grounded because of an electrical problem. Juan is sure his current trip will be fraught with problems and he will once again be delayed. This is an example of the ________ bias
A) confirmation
B) selective perception
C) availability
D) randomness
Q:
Explain a floating exchange rate.
Q:
The last time the Whigs took over Congress, stock prices rose dramatically and unemployment fell to record lows. Once again, the Whigs are in power, so Jason expects his stock portfolio to grow significantly. Jason's thinking may be influenced by the ________.
A) representation bias
B) selective perception bias
C) randomness bias
D) anchoring effect
Q:
In assessing a country's national competitive advantage, what is meant by factor conditions?
Q:
It hasn't rained in several days; therefore it is unlikely to rain today. This is an example of the ________.
A) self-serving bias
B) availability bias
C) representation bias
D) randomness bias
Q:
Describe how balance of trade and balance of payments work and define both terms.
Q:
The Prime Minister of Transylvania prefers darkened rooms, flinches in bright light, and has unusually long incisors. Despite his long and successful career, his political opponents claim he is a vampire. This is an example of the ________.
A) representation bias
B) confirmation bias
C) selective perception bias
D) randomness bias
Q:
The United States has large trade deficits with Japan, China, and Mexico. This means that the United States has imported more from them than what they have purchased from us.
Q:
The ________ occurs when decision makers select and highlight certain aspects of a situation while excluding others.
A) framing bias
B) availability bias
C) representation bias
D) confirmation bias
Q:
The single largest trading partner of the United States is China.
Q:
Mildred was persuaded by a fast-talking salesperson to carry an expensive brand of yarns in her retail needlecraft shop. Seldom does a customer buy this brand, but on those rare occasions Mildred tells herself she made the right decision. The yarns have been sitting on the shelf for several months and she has yet to profit from them. Mildred suffers from the ________.
A) immediate gratification bias
B) selective perception bias
C) confirmation bias
D) hindsight bias
Q:
A comparative advantage exists when a country can produce something more cost effectively and/or of higher quality than any other country.
Q:
Beth hired Tom, trained him, coached him, and expected he would be her eventual replacement when she moved up in the company. She noted each of his accomplishments with pride but wrote off as vicious gossip the comments from Tom's co-workers that he was making too many mistakes. Beth is experiencing the ________.
A) selective perception bias
B) confirmation bias
C) framingbias
D) anchoring effect
Q:
Today, fixed exchange rates are the norm for most major nations of the world.
Q:
When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments, they are exhibiting the ________ bias.
A) hindsight
B) availability
C) representation
D) confirmation
Q:
If the United States exports more to the Netherlands than it imports from the Netherlands, the United States has a trade deficit with the Netherlands.
Q:
Lila believes the global climate is changing. Every storm, every volcano eruption, every earthquake is, in her mind, evidence of this climate change. Lila has fallen victim to ________ bias.
A) framing
B) selective perception
C) confirmation
D) representation
Q:
Why did the European Union develop the euro as its common currency?
A) To better compete with the U.S. dollar
B) To improve the integration of the economic system between member countries
C) To be able to outsource work to countries where wages are lower
D) To integrate a quality standard of production between member countries
E) To speed the issue of payment between member and nonmember countries
Q:
"There are no coincidences. If something bad has happened to you, you must have done something to deserve it." This statement might be made by someone with the ________.
A) framing bias
B) self-serving bias
C) availability bias
D) randomness bias
Q:
Sophie is in charge of recruitment at her company. During a particular interview, the first thing Sophie noticed about the applicant was that he was improperly attired. Though the candidate possessed the necessary qualifications and effectively answered all her questions, Sophie rejected him. This is an example of the ________.
A) availability bias
B) self-serving bias
C) anchoring effect
D) confirmation bias
Q:
What is the common currency for nations who are members of the European Union?
A) Deutsche Mark
B) Euro
C) Dollar
D) Lira
E) Franc
Q:
What condition is needed to gain a national competitive advantage that includes a large domestic consumer base that promotes use of innovative products?
A) Factor conditions
B) Strategies and structures
C) Demand conditions
D) Rivalries
E) Related and supporting industries
Q:
The ________ describes how decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.
A) anchoring effect
B) selective perception effect
C) confirmation bias
D) framing bias
Q:
What is the result when a country can produce goods more efficiently or better than other nations?
A) Balance of trade deficit
B) Absolute advantage
C) Increased globalization
D) Comparative advantage
E) National competitive advantage
Q:
Many new car buyers choose to buy a car with little or no money down and payments for many years because of the ________.
A) overconfidence bias
B) immediate gratification bias
C) framing bias
D) availability bias
Q:
What typically happens to a country's balance of trade as the value of its currency falls?
A) It improves.
B) It declines.
C) It remains the same.
D) It fluctuates drastically.
E) It fluctuates moderately.
Q:
Lucas always seems to "know" exactly what to do in any given situation. At least that's what he'll tell you. But his ideas don't always work and his overall performance as scored by his supervisor isn't nearly as great as he thinks it is. Lucas is exhibiting the ________.
A) selective perception bias
B) the anchoring effect
C) self-serving bias
D) overconfidence bias
Q:
National competitive advantage derives from four conditions, one of which is factor conditions. What do factor conditions include?
A) Customers, suppliers, and labor
B) Government quotas and subsidies
C) Product quality, productivity, and profits
D) Labor, capital, entrepreneurs, and physical resources
E) Strategies, structures, and rivalries
Q:
"Red sky at night, sailor's delight; red sky at morning, sailor's warning" is an example of a ________.
A) proverb
B) heuristic
C) rule
D) practice
Q:
Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?
A) Monopolistic advantage
B) National competitive advantage
C) Resource advantage
D) Absolute advantage
E) Comparative advantage
Q:
Rules of thumb that managers use to simplify decision making are known as ________.
A) heuristics
B) folksonomies
C) algorithms
D) sophisms
Q:
The value of the U.S. dollar relative to the value of the British pound fluctuates with market conditions. What is this type of exchange rate?
A) Floating
B) Fixed
C) Indexed
D) Adjusted
E) Monitored
Q:
Discuss the three different decision-making conditions that managers usually face.
Q:
Which of the following BEST describes a positive trade balance?
A) The economic condition in which a country's exports exceed its imports
B) The economic condition in which a country's imports exceed its exports
C) The economic condition in which a country's inflow of money exceeds its outflow
D) The economic condition in which a country's outflow of money exceeds its inflow
E) The economic condition in which a country's natural resources exceed its human resources
Q:
Discuss the three types of programmed decisions that a manager depends on to resolve structured problems.
Q:
When the value of one country's currency relative to that of another varies with market conditions, which of the following exists?
A) Floating exchange rate
B) Fixed exchange rate
C) Indexed exchange rate
D) Flat exchange rate
E) Balanced exchange rate
Q:
Discuss structured problems, programmed decisions, unstructured problems, and nonprogrammed decisions.
Q:
With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?
A) Floating
B) Indexed
C) Fixed
D) Adjusted
E) Deflated
Q:
Risk is the condition in which a decision maker is able to estimate the likelihood of certain outcomes.
Q:
Which of the following is the name for the overall flow of money into or out of a country?
A) Exchange rate
B) Trade rate
C) Balance of exchange
D) Balance of payments
E) Balance of trade
Q:
Nonprogrammed decision making relies on procedures, rules, and policies.
Q:
Which of the following refers to the situation when a country's imports exceed its exports?
A) Balance of payments
B) Balance of trade
C) Trade deficit
D) Trade surplus
E) Trade advantage
Q:
A policy is an explicit statement that tells a manager what can or cannot be done.
Q:
Which of the following is the name for the economic value of all of the products that a country exports minus the economic value of its imports?
A) Balance of foreign competition
B) Balance of domestic competition
C) Balance of trade
D) Balance of payments
E) Balance of supply and demand
Q:
Rules and procedures are the same.
Q:
The primary purpose of the World Trade Organization is to impose tariffs on imported products.
Q:
A programmed decision is a repetitive decision that can be handled by a routine approach.
Q:
The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.
Q:
Depending on the weather and the amount of advertising, Kyle has developed six scenarios for his summer profits from his lawn care business. His business has failed to reach his expectations in the past, so he fears the worst. Kyle will likely choose the option that ________.
A) maximizes the maximum possible payoff
B) maximizes the minimum possible payoff
C) minimizes the maximum regret
D) minimizes the minimum losses
Q:
James has calculated the possible profits from three different scenarios for the expansion of his restaurant, each for a different amount of advertising and promotion. He has chosen to implement the scenario that offers the greatest profit. James has decided to ________.
A) maximax
B) maximin
C) minimax
D) minimin
Q:
NAFTA regulates trade between the United States, Europe, and Japan.
Q:
Globalization refers to the process by which countries around the world are becoming more self-sufficient.
Q:
Which of the following best describes the psychological orientation of an individual making a "maximax" choice?
A) optimist
B) cynic
C) pessimist
D) defeatist
Q:
The World Trade Organization (WTO) was created to encourage international trade.
Q:
In the late 1970s, Apple launched the Apple computer for individual use. It was a radical concept; there was no precedent for this type of product. Under these circumstances, Apple faced a situation of ________.
A) certainty
B) uncertainty
C) risk
D) necessity
Q:
An import is a product made or grown abroad but sold domestically.
Q:
________ is a situation in which a decision maker cannot make reasonable probability estimates.
A) Necessity
B) Risk
C) Uncertainty
D) Certainty
Q:
Where is the world's largest free marketplace?
A) North America
B) South America
C) Southeast Asia
D) Europe
E) Middle East
Q:
The manager of an apparel store estimates how much to order for the current spring season based on last spring's sales figures. The store manager is operating under which of the following decision-making conditions?
A) uncertainty
B) risk
C) structure
D) certainty
Q:
What caused manufacturing jobs to move from Mexico to China in the late 1990s?
A) Increases in Mexico's cost of living and wages
B) Modernization of facilities in China
C) Improved international travel abilities
D) Increases in China's cost of living and wages
E) Higher levels of education and professional jobs in Mexico
Q:
It is time for Jane to order laminated plywood again. She typically orders from one of three vendors. She knows the price, delivery time, and quality of each vendor. In this situation, Jane has ________.
A) certainty
B) uncertainty
C) risk
D) structure
Q:
How does globalization of business benefit shareholders of an organization?
A) Through easier and faster international travel
B) Through the elimination of diseases in developing nations
C) Through increased and improved profitability
D) Through lower taxes between trade partners
E) Through more distinct cultural heritage
Q:
________ is a situation in which a manager has the ability to make accurate decisions because the outcome of every alternative is known.
A) Certainty
B) Risk
C) Bureaucracy
D) Contingency
Q:
Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas for most of the world's countries?
A) United Nations Development Assistance Plan
B) North American Free Trade Agreement
C) General Agreement on Tariffs and Trade
D) General Agreement on Trade in Services
E) European Union Stability and Growth Pact
Q:
First-line managers tend to deal with problems that are ________ while upper-level managers handle the ________ problems.
A) unstructured; structured
B) routine and repetitive; unusual and difficult
C) interpersonal; customer
D) machine-related; interpersonal
Q:
Which of the following resulted from NAFTA?
A) Companies from other countries, such as Japan, have made fewer business investments in North America.
B) U.S. exports to Mexico have decreased.
C) Mexican imports to the United States have increased.
D) More jobs have been created than what was originally predicted.
E) More U.S. jobs were eliminated than what was originally predicted.
Q:
Ian is a plant manager in a multi-site corporation. He frequently deals with situations involving new customers and new products. These are often ________.
A) non-linear problems and risky decisions
B) structured problems and programmed decisions
C) uncertain problems and linear decisions
D) unstructured problems and nonprogrammed decisions
Q:
What organization was founded in 1967 for economic, political, social, and cultural cooperation in the Asia Pacific region?
A) SEATO
B) ASEAN
C) CENTO
D) OAS
E) WTO
Q:
Lower-level managers typically confront ________.
A) unstructured problems
B) new and unusual problems
C) programmed decisions
D) nonprogrammed decisions