Unit 2 Outcome Assessment

As competition increases, prices

• usually increase as well
• are not affected so will usually not change
• usually will decrease
• There is no way to predict what will happen to prices due to competition.

Which of the following actions best demonstrates cultural sensitivity in international business settings?

• Assume that business practices are the same worldwide.

• Avoid engaging in any cultural traditions of the host country.

• Research and respect the cultural norms and practices of your international partners.

• Focus solely on business matters and ignore cultural differences.

Sarah has an afternoon free and is deciding between practicing the piano and going for a run. If Sarah decides to go for a run, the opportunity cost of her decision is

• the physical exercise she gains

• the improvement in her piano skills

• the time spent outdoors

The USA is best characterized as what type of economy

• Mixed
• Traditional
• Command
• Market

What is it called when a local company collaborates with an international company to establish a new entity or service?

• Licensing

• Joint ventures

• Direct investment

• Strategic alliance

If a business produces a product domestically and ships it to a foreign country its an example of

• Contract manufacturing
• Joint ventures
• Franchising
• Exports

Identify one advantage and one disadvanage of globalization. How has globalization impacted business operations and competition in today's global market?

The Law of Demand states that

• A higher price leads to a lower quantity demanded
• A higher quantity demanded is a result of more expensive items
• An increase in price leads to an increase in quantity supplied
• Demand and supply both increase when price increases

According to the Law of Supply, what happens when the price of a product increases?

• The quantity supplied decreases
• The quantity supplied increases
• The supply curve shifts to the left.
• The demand for the product increases

Provide an example of a product or service that has experienced a price increase over time. Explain how the law of supply and demand applies to this price change.