AGB 302 EXAM ASU EXAM QUESTIONS
WITH COMPLETE SOLUTIONS
ethics - Answer-the principles of right and wrong that guide an individual in making
decisions
ethical strategy - Answer-a course of action that does not violate a company's business
ethics
Friedman Doctrine - Answer-the only social responsibility of business is to increase
profits, so long as the company stays within the rules of law
Culturual Relativism - Answer-belief that cultures should be judged by their own
standards
Utilitarian Approach - Answer-guided by what will result in the greatest good for the
greatest number of people
john rawls - Answer-veil of ignorance
a class system is more or less rigid than a caste - Answer-less
Max Weber - Answer-The Protestant Ethic and the Spirit of Capitalism
buddhism does not support - Answer-the caste system
tragedy of the commons - Answer-people acting individually and in their own interest
use up commonly available but limited resources
facilitating payments - Answer-Payments made to foreign officials to ensure that there is
no obstruction to the transaction.
Noblese Oblige - Answer-idea that they upper classes have the responsibility/right to
take care of those under them
free trade - Answer-international trade left to its natural course without tariffs, quotas, or
other restrictions.
david ricardo - Answer-theory of comparative advantage
heckscher ohlin - Answer-export goods that make intensive use of factors that are
locally abundant
raymond vernon - Answer-Product life cycle theory
, new trade theory - Answer-countries specialize because in certain industries the world
market can only support a limited number of firms (entering the market early is better)
Mercantilism - Answer-max exports min imports (ZERO-SUM GAME)
absolute advantage creator - Answer-adam smith
when is ppf a straight line - Answer-constant return to specialization
diminishing returns - Answer-benefit from an extra unit of an input declines as the
quantity of the input increases
Product Life Cycle Theory - Answer-observation that most new world products are from
the U.S.
economies of scale - Answer-unit cost reductions associated with a large scale of output
(reduced ability to make variety)
Porter's Theory of National Competitive Advantage - Answer--factor endowments
-demand conditions
-related and supporting industries
-firm strategy, structure, and rivalry
firms involved with international trade influence - Answer-government policy
voluntary export retraint - Answer-a quota on trade imposed by the exporting country
what is the goal of tariff rate quotas - Answer-limit imports over quota
how does a voluntary export restraint benefit domestic producers - Answer-limiting
import competition
dumping - Answer-Selling goods in another country below market prices
smoot-hawley act - Answer-protected american industries during the great depression
removing tariff barriers in agriculture could - Answer-lower prices to consumers
uruguay round - Answer-extended gatts rules to cover trade in services
millenium round - Answer-further reduced barriers to cross border trade and investment
ad volerem tariffs - Answer-levied as a proportion of the value of the imported good
WITH COMPLETE SOLUTIONS
ethics - Answer-the principles of right and wrong that guide an individual in making
decisions
ethical strategy - Answer-a course of action that does not violate a company's business
ethics
Friedman Doctrine - Answer-the only social responsibility of business is to increase
profits, so long as the company stays within the rules of law
Culturual Relativism - Answer-belief that cultures should be judged by their own
standards
Utilitarian Approach - Answer-guided by what will result in the greatest good for the
greatest number of people
john rawls - Answer-veil of ignorance
a class system is more or less rigid than a caste - Answer-less
Max Weber - Answer-The Protestant Ethic and the Spirit of Capitalism
buddhism does not support - Answer-the caste system
tragedy of the commons - Answer-people acting individually and in their own interest
use up commonly available but limited resources
facilitating payments - Answer-Payments made to foreign officials to ensure that there is
no obstruction to the transaction.
Noblese Oblige - Answer-idea that they upper classes have the responsibility/right to
take care of those under them
free trade - Answer-international trade left to its natural course without tariffs, quotas, or
other restrictions.
david ricardo - Answer-theory of comparative advantage
heckscher ohlin - Answer-export goods that make intensive use of factors that are
locally abundant
raymond vernon - Answer-Product life cycle theory
, new trade theory - Answer-countries specialize because in certain industries the world
market can only support a limited number of firms (entering the market early is better)
Mercantilism - Answer-max exports min imports (ZERO-SUM GAME)
absolute advantage creator - Answer-adam smith
when is ppf a straight line - Answer-constant return to specialization
diminishing returns - Answer-benefit from an extra unit of an input declines as the
quantity of the input increases
Product Life Cycle Theory - Answer-observation that most new world products are from
the U.S.
economies of scale - Answer-unit cost reductions associated with a large scale of output
(reduced ability to make variety)
Porter's Theory of National Competitive Advantage - Answer--factor endowments
-demand conditions
-related and supporting industries
-firm strategy, structure, and rivalry
firms involved with international trade influence - Answer-government policy
voluntary export retraint - Answer-a quota on trade imposed by the exporting country
what is the goal of tariff rate quotas - Answer-limit imports over quota
how does a voluntary export restraint benefit domestic producers - Answer-limiting
import competition
dumping - Answer-Selling goods in another country below market prices
smoot-hawley act - Answer-protected american industries during the great depression
removing tariff barriers in agriculture could - Answer-lower prices to consumers
uruguay round - Answer-extended gatts rules to cover trade in services
millenium round - Answer-further reduced barriers to cross border trade and investment
ad volerem tariffs - Answer-levied as a proportion of the value of the imported good
