The growth of small-scale production technology will most likely enable small countries to produce products efficiently for their own consumption.

The growth of small-scale production technology will most likely enable small countries to produce products efficiently for their own consumption.

Answer: TRUE

The finite nature of natural resources should work as a disadvantage for the export prices of developing countries.

The finite nature of natural resources should work as a disadvantage for the export prices of developing countries.

Answer: FALSE

The combination of free trade and free movement of production factors offers maximum production efficiency.

The combination of free trade and free movement of production factors offers maximum production efficiency.

Answer: TRUE

The term brain drain describes the export of high-technology products in exchange for low-technology products.

The term brain drain describes the export of high-technology products in exchange for low-technology products.

Answer: FALSE

The foreign-born population as a percentage of total population is substantial for some countries and insignificant for others.

The foreign-born population as a percentage of total population is substantial for some countries and insignificant for others.

Answer: TRUE

The international mobility of labor includes workers, students, tourists, and retirees who travel to another country.

The international mobility of labor includes workers, students, tourists, and retirees who travel to another country.

Answer: FALSE

Companies and individuals transfer capital internationally primarily because of expectations of earning higher returns.

Companies and individuals transfer capital internationally primarily because of expectations of earning higher returns.

Answer: TRUE

A strategic trade policy is one that develops industries to lessen dependence on foreign military goods.

A strategic trade policy is one that develops industries to lessen dependence on foreign military goods.

Answer: FALSE

The existence of the four favorable conditions of the diamond of national advantage does not guarantee that an industry will develop in a given locale.

The existence of the four favorable conditions of the diamond of national advantage does not guarantee that an industry will develop in a given locale.

Answer: TRUE

The four favorable domestic conditions of the diamond of national advantage help to explain how and where globally competitive companies develop and sustain themselves.

The four favorable domestic conditions of the diamond of national advantage help to explain how and where globally competitive companies develop and sustain themselves.

Answer: TRUE

An exception to the PLC theory in terms of production location is often a product with very rapid change in innovation.

An exception to the PLC theory in terms of production location is often a product with very rapid change in innovation.

Answer: TRUE

Luxury products are the most likely types of products to behave according to the product life cycle theory of trade.

Luxury products are the most likely types of products to behave according to the product life cycle theory of trade.

Answer: FALSE

According to the PLC theory of trade, most new products are produced in countries where wage rates are low.

According to the PLC theory of trade, most new products are produced in countries where wage rates are low.

Answer: FALSE

Many products' location of production will shift internationally as the products go through their life cycle.

Many products' location of production will shift internationally as the products go through their life cycle.

Answer: TRUE

Trade occurs more between culturally dissimilar countries than between culturally similar countries.

Trade occurs more between culturally dissimilar countries than between culturally similar countries.

Answer: FALSE

Most world trade takes place between raw material exporters and manufacturing exporters.

Most world trade takes place between raw material exporters and manufacturing exporters.

Answer: FALSE

The factor proportions theory holds that countries should improve their competitiveness by importing capital and skilled employees from abroad.

The factor proportions theory holds that countries should improve their competitiveness by importing capital and skilled employees from abroad.

Answer: FALSE

The factor proportions theory holds that countries should concentrate production on those products that use their most abundant production factors.

The factor proportions theory holds that countries should concentrate production on those products that use their most abundant production factors.

Answer: TRUE

The top 10 exporting countries are dominated by developing countries.

The top 10 exporting countries are dominated by developing countries.

Answer: FALSE

Countries with large land areas are generally less dependent on trade than countries with small land areas.

Countries with large land areas are generally less dependent on trade than countries with small land areas.

Answer: TRUE

According to theories of specialization in international trade, gains occur because specialized workers move to countries that can use their skills more effectively.

According to theories of specialization in international trade, gains occur because specialized workers move to countries that can use their skills more effectively.

Answer: FALSE

The free trade theories of specialization assume that countries will be better off even though some people are unemployed.

The free trade theories of specialization assume that countries will be better off even though some people are unemployed.

Answer: FALSE

Comparative advantage theory holds that gains from trade are the result of capital movements from countries with low interest rates to countries with higher interest rates.

Comparative advantage theory holds that gains from trade are the result of capital movements from countries with low interest rates to countries with higher interest rates.

Answer: FALSE

The comparative advantage theory holds that a country will gain from trade even though it can produce all goods more efficiently than other countries.

The comparative advantage theory holds that a country will gain from trade even though it can produce all goods more efficiently than other countries.

Answer: TRUE

Under the theory of absolute advantage, countries hold two types of advantages—acquired advantages and technological advantages.

Under the theory of absolute advantage, countries hold two types of advantages—acquired advantages and technological advantages.

Answer: FALSE

The theory of absolute advantage holds that there are advantages to trade because different countries can produce different goods more efficiently than others.

The theory of absolute advantage holds that there are advantages to trade because different countries can produce different goods more efficiently than others.

Answer: TRUE

An objective of neomercantilism is to build up gold reserves.

An objective of neomercantilism is to build up gold reserves.

Answer: FALSE

Under mercantilism, colonial powers sought to run trade surpluses with their colonies by preventing the colonies from manufacturing.

Under mercantilism, colonial powers sought to run trade surpluses with their colonies by preventing the colonies from manufacturing.

Answer: TRUE

Understanding trade theories helps companies know if they will need to compete against goods and services produced abroad.

Understanding trade theories helps companies know if they will need to compete against goods and services produced abroad.

Answer: TRUE

Countries enact trade policies based on trade theories, which, in turn, affect companies' optimum production locations.

Countries enact trade policies based on trade theories, which, in turn, affect companies' optimum production locations.

Answer: TRUE

All of the following factors most likely led to Costa Rica's attraction of high-tech FDI EXCEPT the country's ________.

All of the following factors most likely led to Costa Rica's attraction of high-tech FDI EXCEPT the country's ________.

A) demand for high-tech products
B) literacy rate
C) quality of life
D) political stability


Answer: A) demand for high-tech products

Costa Rica's recent economic transformation to depend more on high-tech manufacturing is largely due to its adoption of ________ trade policy.

Costa Rica's recent economic transformation to depend more on high-tech manufacturing is largely due to its adoption of ________ trade policy.

A) an import substitution
B) a comparative advantage
C) a factor proportions
D) a strategic


Answer: D) a strategic

The premise that there will be more finely tuned specialization of production among countries is most likely based on the idea that companies will ________.

The premise that there will be more finely tuned specialization of production among countries is most likely based on the idea that companies will ________. 

A) depend more on production of nontradable goods and services
B) encourage urbanization in emerging countries that lack infrastructure
C) establish facilities in dispersed locations to hinder domestic competition
D) take advantage of wage and skill differences among countries


Answer: D) take advantage of wage and skill differences among countries

Research shows that urbanization leads to higher productivity. Which of the following is the LEAST likely reason for this?

Research shows that urbanization leads to higher productivity. Which of the following is the LEAST likely reason for this?

A) Urbanization establishes an inflow of immigrants who will work for less money.
B) In urban areas, firms can more easily find people with the exact skills they need.
C) Urbanization allows for economies in moving supplies and finished products.
D) In urban areas, knowledge flows more easily from one company to another and from one industry to another.


Answer: A) Urbanization establishes an inflow of immigrants who will work for less money.

______ can be induced by tens of thousands of repetitions under low-impact loads.

______ can be induced by tens of thousands of repetitions under low-impact loads.

A) CTS
B) CVS
C) RSI
D) Technostress



Answer: c

CVS refers to:

CVS refers to:

A) eyestrain related to computer display screen use.
B) carpal vision syndrome.
C) wrist injuries brought about by incorrect hand position when using a keyboard.
D) stress induced by technology.



Answer: a

The term "________ divide" refers to large disparities in access to computers and the Internet among different social groups and different locations.

The term "________ divide" refers to large disparities in access to computers and the Internet among different social groups and different locations. 

A) computer
B) technology
C) digital
D) electronic



Answer: c

Re-designing and automating business processes can be seen as a double-edged sword because:

Re-designing and automating business processes can be seen as a double-edged sword because:

A) increases in efficiency may be accompanied by job losses.
B) increases in efficiency may be accompanied by poor data quality.
C) support for middle-management decision making may be offset by poor data quality.
D) reliance on technology results in the loss of hands-on knowledge.



Answer: a

Which of the five moral dimensions of the information age does spamming raise?

Which of the five moral dimensions of the information age does spamming raise? 

A) Quality of life
B) System quality
C) Accountability and control
D) Information rights and obligations



Answer: a

The U.S. CAN-SPAM Act of 2003:

The U.S. CAN-SPAM Act of 2003:

A) makes spamming illegal.
B) requires spammers to identify themselves.
C) has dramatically cut down spamming.
D) does not override state anti-spamming laws.



Answer: b

The practice of spamming has been growing because:

The practice of spamming has been growing because:

A) telephone solicitation is no longer legal.
B) it is good advertising practice and brings in many new customers.
C) it helps pay for the Internet.
D) it is so inexpensive and can reach so many people.


Answer: d

The "do anything anywhere" computing environment can:

The "do anything anywhere" computing environment can:

A) make work environments much more pleasant.
B) create economies of efficiency.
C) centralize power at corporate headquarters.
D) blur the traditional boundaries between work and family time.



Answer: d

Which of the following is not one of the three principal sources of poor system performance?

Which of the following is not one of the three principal sources of poor system performance? 

A) Software bugs and errors
B) Hardware or facility failures caused by natural or other causes
C) Insufficient integration with external systems
D) Poor input data quality



Answer: c

The most common source of business system failure is:

The most common source of business system failure is:

A) software bugs.
B) software errors.
C) hardware or facilities failures.
D) data quality.


Answer: d

It is not feasible for companies to produce error-free software because:

It is not feasible for companies to produce error-free software because:

A) any programming code is susceptible to error.
B) it is too expensive create perfect software.
C) errors can be introduced in the maintenance stage of development.
D) any software of any complexity will have errors.



Answer: b

_______ are not held liable for the messages they transmit.

_______ are not held liable for the messages they transmit. 

A) Regulated common carriers
B) Private individuals
C) Organizations and businesses
D) Elected officials



Answer: a

In general, it is very difficult to hold software producers liable for their software products when those products are considered to be:

In general, it is very difficult to hold software producers liable for their software products when those products are considered to be:

A) part of a machine.
B) similar to books.
C) services.
D) artistic expressions



Answer: b

Which of the following adjusts copyright laws to the Internet age by making it illegal to circumvent technology-based protections of copyrighted materials?

Which of the following adjusts copyright laws to the Internet age by making it illegal to circumvent technology-based protections of copyrighted materials? 

A) Digital Millennium Copyright Act
B) Privacy Act
C) Freedom of Information Act
D) Electronic Communications Privacy Act


Answer: a

One of the difficulties of patent protection is:

One of the difficulties of patent protection is:

A) that only the underlying ideas are protected.
B) digital media cannot be patented.
C) preventing the ideas from falling into public domain.
D) the years of waiting to receive it.



Answer: d

The strength of patent protection is that it:

The strength of patent protection is that it:

A) puts the strength of law behind copyright.
B) allows protection from Internet theft of ideas put forth publicly.
C) is easy to define.
D) grants a monopoly on underlying concepts and ideas.



Answer: d

"Look and feel" copyright infringement lawsuits are concerned with:

"Look and feel" copyright infringement lawsuits are concerned with:

A) the distinction between tangible and intangible ideas.
B) the distinction between an idea and its expression.
C) using the graphical elements of another product.
D) using the creative elements of another product.



Answer: c

What legal mechanism protects the owners of intellectual property from having their work copied by others?

What legal mechanism protects the owners of intellectual property from having their work copied by others? 

A) Patent protection
B) Intellectual property law
C) Copyright law
D) Fair Use Doctrine



Answer: c

Intellectual property can best be described as:

Intellectual property can best be described as:

A) intangible property created by individuals or corporations.
B) unique creative work or ideas.
C) tangible or intangible property created from a unique idea.
D) the expression of an intangible idea.



Answer: a

The limitation of trade secret protection for software is that it is difficult to prevent the ideas in the work from falling into the public domain when:

The limitation of trade secret protection for software is that it is difficult to prevent the ideas in the work from falling into the public domain when:

A) the courts become involved.
B) hackers are able to break into the source code.
C) the software is widely distributed.
D) a new version of the software is released.



Answer: c

The P3P standard is concerned with:

The P3P standard is concerned with:

A) controlling pop-up ads based on user profiles and preventing ads from collecting or sending information.
B) allowing users to surf the Web anonymously.
C) scrambling data so that it can't be read.
D) blocking or limiting cookies.



Answer: d

The P3P standard is concerned with:

The P3P standard is concerned with:

A) controlling pop-up ads based on user profiles and preventing ads from collecting or sending information.
B) allowing users to surf the Web anonymously.
C) scrambling data so that it can't be read.
D) blocking or limiting cookies.



Answer: d

P3P stands for:

P3P stands for:

A) Privacy for Personal Protection.
B) Platform for Privacy Preferences.
C) Personal Privacy Policy.
D) Personal Privacy Protection.



Answer: b

A(n) ________ model of informed consent permits the collection of personal information until the consumer specifically requests that the data not be collected.

A(n) ________ model of informed consent permits the collection of personal information until the consumer specifically requests that the data not be collected. 

A) opt-in
B) opt-out
C) P3P
D) PGP


Answer: b

The Online Privacy Alliance:

The Online Privacy Alliance:

A) encourages self-regulation to develop a set of privacy guidelines for its members.
B) protects user privacy during interactions with Web sites.
C) has established technical guidelines for ensuring privacy.
D) is a government agency regulating the use of customer information.


Answer: a

When a cookie is created during a Web site visit, it is stored:

When a cookie is created during a Web site visit, it is stored:

A) on the Web site computer.
B) on the visitor's computer.
C) on the ISP's computer.
D) in a Web directory.



Answer: b

U.S. businesses are allowed to use personal data from EU countries if they:

U.S. businesses are allowed to use personal data from EU countries if they:

A) have informed consent.
B) create a safe harbor.
C) develop equivalent privacy protection policies.
D) make their privacy protection policies publicly available.



Answer: c

European privacy protection is ________ than in the United States.

European privacy protection is ________ than in the United States. 

A) less far-reaching
B) less liable to laws
C) much less stringent
D) much more stringent



Answer: d

Which of the following U.S. laws gives patients access to personal medical records and the right to authorize how this information can be used or disclosed?

Which of the following U.S. laws gives patients access to personal medical records and the right to authorize how this information can be used or disclosed?

A) HIPAA
B) Gramm-Leach-Bliley Act
C) Privacy Protection Act
D) Freedom of Information Act


Answer: a

The Federal Trade Commission FIP principle of Notice/Awareness states that:

The Federal Trade Commission FIP principle of Notice/Awareness states that:

A) customers must be allowed to choose how their information will be used for secondary purposes other than the supporting transaction.
B) data collectors must take responsible steps to assure that consumer information is accurate and secure from unauthorized use.
C) there is a mechanism in place to enforce FIP principles.
D) Web sites must disclose their information practices before collecting data.


Answer: d

FIP principles are based on the notion of the:

FIP principles are based on the notion of the:

A) accountability of the record holder.
B) responsibility of the record holder.
C) mutuality of interest between the record holder and the individual.
D) privacy of the individual.



Answer: c

Which U.S. act restricts the information the federal government can collect and regulates what they can do with the information?

Which U.S. act restricts the information the federal government can collect and regulates what they can do with the information? 

A) Privacy Act of 1974
B) Gramm-Leach-Bliley Act of 1999
C) Freedom of Information Act
D) HIPAA of 1996


Answer: a

According to the ________, you should take the action that produces the least harm.

According to the ________, you should take the action that produces the least harm.

A) Categorical Imperative
B) Risk Aversion Principle
C) Utilitarian Principle
D) Golden Rule



Answer: b

The ethical "no free lunch" rule states that:

The ethical "no free lunch" rule states that:

A) if an action cannot be taken repeatedly, then it is not right to be taken at any time.
B) one should take the action that produces the least harm or incurs the least cost.
C) one can put values in rank order and understand the consequences of various courses of action.
D) everything is owned by someone else, and that the creator wants compensation for this work.


Answer: d

Immanuel Kant's Categorical Imperative states that:

Immanuel Kant's Categorical Imperative states that:

A) if an action cannot be taken repeatedly, then it is not right to be taken at any time.
B) one should take the action that produces the least harm or incurs the least cost.
C) one can put values in rank order and understand the consequences of various courses of action.
D) if an action is not right for everyone to take, it is not right for anyone to take.



Answer: d

A classic ethical dilemma is the hypothetical case of a man stealing from a grocery store in order to feed his starving family. If you used the Utilitarian Principle to evaluate this situation, you might argue that stealing the food is:

A classic ethical dilemma is the hypothetical case of a man stealing from a grocery store in order to feed his starving family. If you used the Utilitarian Principle to evaluate this situation, you might argue that stealing the food is:

A) acceptable, because the grocer suffers the least harm.
B) acceptable, because the higher value is the survival of the family.
C) wrong, because the man would not want the grocery to steal from him.
D) wrong, because if everyone were to do this, the concept of personal property is defeated.



Answer: b

A colleague of yours frequently takes for his own personal use small amounts of office supplies, noting that the loss to the company is minimal. You counter that if everyone were to take the office supplies, the loss would no longer be minimal. Your rationale expresses which historical ethical principle?

A colleague of yours frequently takes for his own personal use small amounts of office supplies, noting that the loss to the company is minimal. You counter that if everyone were to take the office supplies, the loss would no longer be minimal. Your rationale expresses which historical ethical principle?

A) Kant's Categorical Imperative
B) The Golden Rule
C) The Risk Aversion Principle
D) The "No free lunch" rule



Answer: a

Which of the following is not one of the five steps discussed in the chapter as a process for analyzing an ethical issue?

Which of the following is not one of the five steps discussed in the chapter as a process for analyzing an ethical issue? 

A) Assign responsibility.
B) Identify the stakeholders.
C) Identify the options you can reasonably take.
D) Identify and clearly describe the facts.



Answer: a

The process in law-governed societies in which laws are known and understood and there is an ability to appeal to higher authorities to ensure that the laws are applied correctly is called:

The process in law-governed societies in which laws are known and understood and there is an ability to appeal to higher authorities to ensure that the laws are applied correctly is called:

A) liability.
B) due process.
C) the courts of appeal.
D) accountability.



Answer: b

The feature of social institutions that means mechanisms are in place to determine responsibility for an action is called:

The feature of social institutions that means mechanisms are in place to determine responsibility for an action is called:

A) due process.
B) accountability.
C) the courts of appeal.
D) the judicial system.



Answer: b

The feature of political systems in which a body of laws is in place that permits individuals to recover the damages done to them by other actors, systems, or organizations is referred to as:

The feature of political systems in which a body of laws is in place that permits individuals to recover the damages done to them by other actors, systems, or organizations is referred to as:

A) accountability.
B) responsibility.
C) due process.
D) liability.



Answer: b

Which of the five moral dimensions of the information age do the central business activities of ChoicePoint raise?

Which of the five moral dimensions of the information age do the central business activities of ChoicePoint raise? 

A) Property rights and obligations
B) System quality
C) Accountability and control
D) Information rights and obligations



Answer: d

NORA is a:

NORA is a:

A) profiling technology used by the EU.
B) federal privacy law protecting networked data.
C) new data analysis technology that finds hidden connections between data in disparate sources.
D) sentencing guideline adopted in 1987 mandating stiff sentences on business executives.


Answer: c

The use of computers to combine data from multiple sources and create electronic dossiers of detailed information on individuals is called:

The use of computers to combine data from multiple sources and create electronic dossiers of detailed information on individuals is called:

A) profiling.
B) phishing.
C) spamming.
D) targeting.



Answer: a

The U.S. Department of Commerce developed a ________ framework in order to enable U.S. businesses to legally use personal data from EU countries.

The U.S. Department of Commerce developed a ________ framework in order to enable U.S. businesses to legally use personal data from EU countries.

A) COPPA
B) P3P
C) PGP
D) safe-harbor



Answer: d

The four key technical trends responsible for current ethical stresses related to information technology are (1) doubling of computer power every 18 months, (2) data analysis advances, (3) declining data storage costs, and (4) ________.

The four key technical trends responsible for current ethical stresses related to information technology are (1) doubling of computer power every 18 months, (2) data analysis advances, (3) declining data storage costs, and (4) ________. 

A) advances in wireless networking
B) international standards for data protection
C) networking advances and the Internet
D) increased ease in file sharing and copying



Answer: c

In the information age, the obligations that individuals and organizations have regarding the preservation of existing values and institutions fall within the moral dimension of:

In the information age, the obligations that individuals and organizations have regarding the preservation of existing values and institutions fall within the moral dimension of:

A) family and home.
B) property rights and obligations.
C) system quality.
D) quality of life.



Answer: d

In the information age, the obligations that individuals and organizations have concerning rights to intellectual property fall within the moral dimension of:

In the information age, the obligations that individuals and organizations have concerning rights to intellectual property fall within the moral dimension of:

A) property rights and obligations.
B) system quality.
C) accountability and control.
D) information rights and obligations.



Answer: a

The introduction of new information technology has a:

The introduction of new information technology has a:

A) dampening effect on the discourse of business ethics.
B) ripple effect raising new ethical, social, and political issues.
C) beneficial effect for society as a whole, while raising dilemmas for consumers.
D) waterfall effect in raising ever more complex ethical issues.


Answer: b

Which of the following best describes how new information systems result in legal gray areas?

Which of the following best describes how new information systems result in legal gray areas?

A) They work with networked, electronic data, which are more difficult to control than information stored manually.
B) They result in new situations that are not covered by old laws.
C) They are implemented by technicians rather than managers.
D) They are created from sets of logical and technological rules rather than social or organizational mores.



Answer: b

Which of the following tools may help identify risk areas associated with employee acceptance of a new information system?

Which of the following tools may help identify risk areas associated with employee acceptance of a new information system?

A) Formal planning and control tools
B) Organizational impact analysis
C) System prototype
D) Feasibility study



Answer: b

A ________ shows each task as a horizontal bar whose length is proportional to the time required to complete it.

A ________ shows each task as a horizontal bar whose length is proportional to the time required to complete it.

A) PERT chart
B) DFD
C) feasibility study
D) Gantt chart



Answer: d