Question

1. If the US put tariffs on Mexican steel, which of the following would probably occur:
   1. Mexico would gain jobs in companies marking steel but lose jobs in companies using steel
   2. The US would gain jobs in companies making steel but lose jobs in companies using steel
   3. The US would lose jobs in companies making steel and lose jobs in companies using
   4. Mexico would lose jobs in companies making steel but gain jobs in companies using steel
2. Business car etiquette, acceptable business attire, and table manners are example of ___ in different countries that can matter to how people conducting international business are perceived.
   1. Norms
   2. Classes
   3. Fault lines
   4. Values
3. Which of the following statement is FALSE?
   1. Capitalist countries trend to be democratic
   2. Holding elections always makes a country democratic
   3. Although the US is capitalist, it still has a mixed economy
   4. In social democracies like Sweden, government ownership of companies tends to be lower than in communist countries like North Korea
   5. Some European countries like Sweden are democratic, but somewhat more socialist

Answer 1

1> b is correct

If there is a tariff on Mexican steel, the price of steel will rise in the US. As a result, the domestic supply will go up creating more jobs for steel-making industry. On the other hand, if and industry uses steel, it has a higher input cost, thus it will trim labor cost causing loss of jobs.

2> a is correct

Norms are rules ans expectation on how people should behave in a certain situation or in a job. Thus, they vary across countries and this do matter in international business.

3> b is correct

Holding election always does not necessarily make a country more democratic. The reason behind this is there can be rigging in election, there may be obstruction to vote to some communities. Thus, it does not gurantee a democracy, it can just be a show-democracy.