BUS 302 - QUIZ 1 + 2 + 3

What is the basic unit of institutions based on kinship?

family

An opponent of globalization would agree that

globalization has had harmful effects on labor and labor standards.

In 2016, what was included in the five largest categories of U.S. goods exported to China? grains soft goods toys furniture

grains

Since 1980, the United States proportion of world trade in commercial services has Increased more than fivefold. not changed. increased one-third. decreased overall.

increased one-third.

Two basic ways to understand the role of leadership are to provide direction for a collection of individuals or to

integrate a group.

What is an example of an external force that represents financial factors affecting a business?

interest rates

The forces over which the management does have some command are called

internal

Big Tire Bikes Inc. is headquartered in Maryland and does business within the United States, as well as within many countries in Europe and South America. This company is an example of a(n)

international business

The construction industry has joined the ranks of other industries and now carries out business across national borders. In other words, the construction industry has become a(n)

international business

Religion is a part of a group's culture because

it influences behavior through attitudes and beliefs.

Brennan Audio Inc. is struggling in the industry because it doesn't have the staff with the right skills for the job. Which category of external forces does this represent?

labor

What is an example of a resource endowment that a nation possesses? government religion land universities

land

The most obvious and distancing cultural distinction associated with international business is ______.

language

Culture is a group of shared worldviews, social rules, and interpersonal dynamics that is

learned, interrelated, and shared.

Material culture includes

manufactured goods.

Decision making in the international environment is considered ________ it is in a purely domestic environment.

more complex than

Culture frameworks are helpful, but their use may

oversimplify and limit our understanding and learning after a point.

The assembly line found in automobile manufacturing facilities is an example of how culture affects

production.

In a business setting, anthropologist Marcel Mauss viewed the ritual of gift-giving as a way to

publicly acknowledge interrelationships and obligations.

How are exchange rates used in international trade? Exchange rates are used to convert from foreign to domestic currency. Exchange rates set the costs of labor. Exchange rates indicate which products create an absolute advantage for trading partners. Exchange rates are used to devalue property in exchange for goods.

Exchange rates are used to convert from foreign to domestic currency.

Theory based on ________ states that international and interregional differences in production costs occur because of differences in the supply of production factors. comparative advantage resource endowments absolute advantage mercantilist advantage

resource endowments

The three largest markets for American exports of goods in 2017 were Japan, the United Kingdom, and China. Japan, Mexico, and the United Kingdom. Canada, Mexico, and China. Canada, Japan, and the United Kingdom.

Canada, Mexico, and China.

Which country currently exports the most to the United States? China Mexico Canada Indonesia

China

Which country ranked the highest in 2016 in terms of merchandise exports? United Kingdom China United States India

China

The three nations that exported the largest amount of goods to the United States in 2017 were China, Japan, and Saudi Arabia. Canada, Mexico, and Japan. China, Canada, and Mexico. China, Mexico, and the United Kingdom.

China, Canada, and Mexico.

NAFTA and other treaties are the main reasons that most of Canada's exports go to Asia. the European Union. Mexico. the United States.

the United States.

Accounting controls directly relate to a culture's assumptions about

the basic nature of people.

The kinds of forces in the foreign environment are ________ those in the domestic environment except that they occur in foreign nations.

the same as

Kinship and free association are examples of

the two basic types of social institutions.

After college, Thomas moved from California to take a job overseas. He was surprised to find that the city he moved to had strict curfew laws and all the shops and restaurants closed by 10 pm. The culture he moved into seems to want to minimize unpredictable situations which reflects which of Hofstede's dimensions?

uncertainty avoidance

Christianity has many denominations and within each denomination is a different belief.

False

Which countries have become more important trading partners to the United States as suppliers of electronic products? Canada and Mexico. Germany and the United Kingdom China and Malaysia China and Canada.

Germany and the United Kingdom

Green Fields Coffee Co. introduced its line of herbal coffees to the international market two years ago. They were well received and now foreign competitors are starting to appear. Which stage of the product life cycle theory is the company currently in? Stage 3 Stage 1 Stage 4 Stage 2

Stage 3

What is one of the reasons suggested by Alfred Marshall for why firms tend to cluster together on a geographic basis? Competition will not enter the market. Production costs decline as facilities get larger. Technological information can be readily shared. Efficiency improves as the result of cumulative experience.

Technological information can be readily shared.

The international environment consists of which group of interactions?

The domestic environmental forces and the foreign environmental forces, as well as the foreign environmental forces of two countries when affiliate in one country does business in another country.

The United States can produce more wheat for the same or lower costs than many other countries. This is an example of economies of scale. absolute advantage. mercantilism. a trade surplus.

absolute advantage

Joshua realized the company's marketing materials should avoid the color red in South Africa because it is the color of mourning in that country. What part of culture is Joshua taking into consideration?

aesthetics

The music and folklore associated with a society are one way to communicate a culture's

aesthetics.

Foreign business denotes

business conducted within a foreign country

According to the theory of comparative advantage, a nation should produce the goods for which its absolute disadvantage is less. should strive to produce trade surpluses to acquire supplies of precious metals. can gain from trade if it is equally inefficient in producing two goods. must have an absolute advantage in at least one good to gain from trade.

can gain from trade if it is equally inefficient in producing two goods.

Environment as used in the textbook involves the forces surrounding and influencing the life and development of the firm and is classified as

controllable and uncontrollable.

When Corinne was introduced to the manager from the overseas office, she noticed he tended to lean in as he spoke with her. This made her uncomfortable, so she did her best to put some space between them during the meeting. What is causing Corinne to feel uncomfortable?

conversational distance

A nation that is struggling to remain competitive in the world market may decide to reduce the value of the country's currency relative to other currencies. This process is called currency devaluation. customization. deficit. surplus.

customization.

When gross national income rates drop significantly, it affects a company's environment. Which type of external force does this represent?

economic

In examining the volume of international trade, the proportion of world exports and imports accounted for by the 10 largest exporting and importing nations in 2016 exceeded 50 percent. was less than 10 percent. was approximately one-third. was approximately 25 percent.

exceeded 50 percent.

Nations encounter a trade surplus when the value of exports exceeds the value of imports. imports and exports doesn't change. imports and exports is balanced. imports exceeds the value of exports.

exports exceeds the value of imports.

An international company (IC) is a company headquartered in another nation.

false

Who advocated the early attempt to develop an international trade theory in response to the practice of mercantilism? Stefan Linder David Ricardo Adam Smith Raymond Vernon

Adam Smith

What is one argument in support of globalization?

Environmental issues are lessened through globalization. The process of globalization has enhanced the equalization of countries in terms of political and social economy.

Britain was the world's leading manufacturing country for about 1,800 years, until it was replaced by the United States in the 1800s.

False

Feminine cultures in Hofstede's dimensions care about relationships and are not focused on business success.

False

Gift giving across cultures is viewed as a simple kindness and not a reflection of intent.

False

Hofstede is primarily concerned with social values and the dimensions he identified that help parents understand their children.

False

In Hall's use, context is the irrelevant environment in a communication act.

False

In high-context cultures, nonverbal language plays a minor role. Business professionals rely more on the spoken word.

False

Lobbyists who advocate for new laws that will affect the production standards of a business are an example of an internal force.

False

Only a company that has foreign operations needs to be aware of what is occurring globally in its markets and in its industry.

False

The 17th and 18th centuries have frequently been termed the age of industrialism because this was the period when industrialization was advanced to the masses.

False

The MBI model is linked with the global mind-set since it can be used to connect cultures across diversity boundaries.

False

The advent of globalization has had minimal effect on labor standards around the world.

False

The domestic environment includes all the controllable forces originating in the home country that surround and influence the life and development of the firm.

False

The five major drivers of international business include political, sociocultural, technological, market, and competitive drivers.

False

The international environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm.

False

The predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases is known as the experience curve. True False

False

There are three main classes of social institutions, based on the conditions of their formation: family, kinship, and free association.

False

Transnational corporations consist of several entities each of which has its own independent strategy and policies.

False

When considering where to export, advantages to managers of focusing on a nation that is already a sizable purchaser of goods coming from the home country include all of the following EXCEPT the business climate in these importing nations is already relatively favorable. the cultures of the two countries should be relatively similar and compatible. satisfactory transportation facilities have already been established. import channel members (merchants, banks, and customs brokers) are experienced in handling import shipments from the exporter's area.

satisfactory transportation facilities have already been established.

Why would companies that don't have any foreign operations still need to acquire a global perspective?

This would help the companies be more aware of new foreign competitors.

All managers need to have a basic knowledge of international business.

True

As used in the text, the term environment means all the forces influencing the life and development of the firm.

True

Buddhism is based on the teachings of Siddhartha Guatama.

True

External forces are commonly called uncontrollable forces, which are the external forces that management has no direct control over, although it can exert influence.

True

Hofstede's pragmatic versus normative dimension reflects an assessment of how individuals handle unexplainable aspects of their lives.

True

In high-context cultures, people tend to form long-lasting relationships that endure over time.

True

International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments—domestic, foreign, and international.

True

Kluckhohn and Strodtbeck developed their cultural values classification system based on universal problems, such as people's relationship to nature.

True

Opponents of free trade point out that globalization has contributed to a decline in environmental and health conditions.

True

Rapid urbanization of populations combined with industrialization in the emerging markets is quickly shifting the world's economic center of gravity from Europe and the Americas back to Asia.

True

The first formulation of international trade theory, by Adam Smith, was motivated by political considerations. True False

True

The international product life-cycle theory may have its greatest usefulness in explaining trade and investment behavior when international firms introduce their new products in home markets first. True False

True

The operations of a company outside its home or domestic market are known as foreign business.

True

The plague known as the Black Death moved west and affected more people as the international trading system expanded.

True

Those who work in the international environment find that decision making is more complex than it is in a purely domestic environment.

True

Understanding how religion affects cultural attitudes is important for marketing professionals to know.

True

When a manager unconsciously imparts his or her own cultural values on a situation without taking into account the possibility that the culture might vary in a foreign environment, that manager is exhibiting a self-reference criterion.

True

The capability of one nation to produce more of a good or service than another country for the same or lower cost of inputs is a(n) mercantilist advantage. comparative advantage. trade surplus. absolute advantage.

absolute advantage.

When Maddie got to her manager's office, she noticed the door was closed and decided the manager was busy so she should come back later. What aspect of culture is affecting her decision to return later?

spatial relationships

A country ________ when it decides to use its resources to produce only the product in which it has an absolute advantage. specializes rejects trade monopolizes globalizes

specializes

Easy Play Audio/Video Corp. has been selling audio and video equipment to the international market for six years. Recently, the company decided to drop its line of televisions because the United States is importing televisions at a lower cost than the company can make their television. Which stage of the product life cycle theory is the company currently in? Stage 2 Stage 4 Stage 3 Stage 1

stage 4

The rapid expansion of world exports since 1980 demonstrates that businesspeople can expect to meet lower levels of competition in their domestic markets. domestic business cannot compete with cheap imports. the opportunity to increase sales by exporting is a viable growth strategy. jobs will inevitably decline in developed countries due to import competition.

the opportunity to increase sales by exporting is a viable growth strategy.

Supporters of mercantilism would agree that accumulation of precious metals is an activity essential to a nation's welfare. trade policies that generally benefited consumers and emerging industrialists should be promoted. industrial development is the primary source of a nation's wealth. more than one nation can maintain a comparative advantage.

accumulation of precious metals is an activity essential to a nation's welfare.

The marketing team decided to develop two promotional campaigns: one featuring slender models and the other using curvier models to address the cultural differences of their audience. With what aspect of culture is the marketing team concerned?

aesthetics

The experience curve refers to the stage in the product life cycle where companies export products for the first time. the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases. the lack of a suitable workforce to complete a task. the rising scale on which efficiency improves as a result of cumulative experience and learning.

the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.

Trompenaars's diffuse cultures are called diffuse because

their differentiation between public and private life is spread out freely (diffused).

If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according to trade theory Ecuador would do well to produce its own wheat rather than import it from Bolivia. there will be a perfect trade balance between the two countries. Ecuador should focus production on coffee and trade for other goods. Argentina should focus on producing coffee and trade for wheat.

there will be a perfect trade balance between the two countries.

When the value of imports into a nation exceeds the value of its exports, that nation is experiencing a(n) trade deficit. fixed market. economy of scale. competitive advantage.

trade deficit.

Some countries send out buying missions to other countries in order to find products to import because their exports are exceeding the value of their imports. In other words, the nations are experiencing a(n) economy of scale. product differentiation. trade surplus. absolute advantage.

trade surplus.

The proportion of merchandise exports from Asia has ________ since 1983. increased by 20 percent almost doubled seen an overall decline tripled

tripled

Hamlin Millworks is frustrated with the lobbyists who are currently trying to influence Congress to raise taxes for all corporations in the wood products industry. In the environment of Hamlin Millworks, these lobbyists are an example of

uncontrollable forces

According to Trompenaars's seven dimensions, which type of culture tends to be rule-based?

universalist

Material culture includes

all human-made objects.

The increased internationalization of business requires ________ to have a basic knowledge of international business.

all managers

Aesthetics is

an area of philosophy that deals with beauty.

In 2016, what was the included in the five largest categories of U.S. goods imported from China? grains footwear automobiles aircraft

automobiles

Because culture is not directly observable,it is

best learned about by observation of how it manifests itself.

World trade consists mostly of exchanges between geographic regions. between state-owned enterprises. among nonbordering countries. within geographic regions.

between geographic regions.

According to the theory of comparative advantage, trade can benefit the importing country involved in a trade. neither country involved in a trade. both countries involved in a trade. the exporting country involved in a trade.

both countries involved in a trade

An international business is defined as a(n)

business whose activities involve crossing national borders

A nation having absolute disadvantages in the production of two goods with respect to another nation has a(n) ___________ in the production of the good in which its absolute disadvantage is less. mercantilist advantage comparative advantage absolute advantage competitive advantage

comparative advantage

A major portion of the exports from developing countries go to ________ countries, and this proportion has been ________. developed; decreasing developing; decreasing developing; increasing developed; increasing

developed; decreasing

Hofstede's masculinity-femininity dimension is a measure of a culture's

distribution of roles between the sexes.

Five years ago it cost Bernie's Bikes Inc. about $52 dollars to build a single bike. Today, it only costs the company about $31 because they have automated the process and are able to purchase component parts in larger quantities. What allowed the company to reduce the price to build a bike? trade deficit trade surplus economies of scale product differentiation

economies of scale

When you assert that a certain aspect of your own culture is superior, you are probably exhibiting

ethnocentric behavior.

Molly has lived in Ireland her entire life and believes that the only way to do things is "the Irish way." This belief is an example of

ethnocentrism.

When considering where to export, advantages to managers of focusing on a nation that is already a sizable purchaser of goods coming from the home country include the fact that export and import regulations are not insurmountable. the two countries are part of the same regional trade agreement. the cultures of the two countries should be relatively similar and compatible. the climate for foreign direct investment in the importing nation is relatively favorable.

export and import regulations are not insurmountable.

Gabriel Industries is located near a port city which allows it to ship products easily overseas to its international customers. The geographic location of the company is an example of a(n)

external force

Kendrik decided not to take the overseas position because he knew managers worked alongside their staff and did not have private offices in this particular international culture. He thought this made managers look less important and inconsequential. What aspect of culture is he concerned with?

unspoken language

Trompenaars's universalism-particularism dimension addresses

whether rules or relationships regulate behavior.

The theory of overlapping demand explains how international trade in manufactured goods will be linked to gross national income. why companies will add excess capacity to their production systems. where competitive clusters will occur. the existence of similar preferences and demands among countries with similar income levels.

why companies will add excess capacity to their production systems.

Real Country Boots was surprised when its marketing campaign featuring a cowboy fell flat in some South American countries but prospered in the United States. They later determined that a cowboy was considered "just another job" in parts of South America so it held little appeal to consumers. In this instance, the company used what aspect of aesthetics incorrectly

folklore

Which of the environments associated with a company refers to the uncontrollable forces originating outside the home country?

foreign

International business differs from domestic business in that a firm operating across borders must deal with the forces associated with which three kinds of environments?

foreign, domestic, international

According to opponents of the globalization of trade and investment

globalization has produced uneven results across nations and people

Understanding a person's body language and facial expressions would be especially important during business conversations in which type of culture?

high context

The domestic environment is composed of all the uncontrollable forces originating in the ________ that surround and influence the life and development of the firm.

home country

Kya believes an annual review should be a reflection of an employee's accomplishments from the year while Marcus believes an annual review should be used to motivate an employee to work harder. Their beliefs are based on the culture in which they were raised. Which business function is being affected by culture in this scenario?

human resources

What is an example of an internal force that can affect a company's environment?

human resources

According to the text, personnel working in a foreign subsidiary are working in the international environment

if they are responsible for the subsidiary's exports.

Jetson Manufacturing has manufacturing operations in the United States, Germany, Indonesia, and Brazil. Jetson Manufacturing is an example of a(n)

international company

The theory of overlapping demand suggests that countries with similar geography will have similar demand traits. trade wars will usually occur between countries that have similar levels of income. international trade in manufactured goods will be more common between countries with similar levels of income. international trade in services will be more common between countries with high and low relative levels of labor costs.

international trade in manufactured goods will be more common between countries with similar levels of income.

When interacting with an international affiliate, business professionals should remember that ethnocentrism

is detrimental and noninclusive.

Adam Smith argued against mercantilism by claiming that governments, not market forces, should determine the directions, volume, and composition of international trade. a nation could trade advantageously if it had a comparative advantage. market forces, not government controls, should determine direction, volume, and the composition of international trade. customers' tastes are affected by income levels.

market forces, not government controls, should determine direction, volume, and the composition of international trade.

The focus group participants were asked if they liked the website for Welby Appliance Corp. The majority responded that they did. Months later, the manufacturer was surprised when people in certain parts of the world were angry that no instructions came with the appliance they purchased and were told they could find them on the website. However, these particular customers didn't have access to a computer. In this instance, what department of Welby Appliance failed to take into account culture?

marketing

Connor's manager told him not to make the "OK" sign with his hand when meeting with the representatives from France as that gesture is viewed as vulgar and inappropriate in their culture. Which aspect of culture is his manager referring to?

nonverbal communication

The forces in the foreign environment differ from the domestic environment in that they originate

outside the firm's home country

Ethnocentricity gets in the way of communication across cultural borders because

people living in their own culture are often unaware of its influence on them.

A market situation in which there is a sufficiently large number of well-informed buyers and sellers of a homogeneous product such that no individual participant has enough power to determine the price of the product, resulting in a marketplace that is efficient in production and allocation of products is known as absolute advantage. trade deficit. mercantilism. perfect competition.

perfect competition.

According to opponents of the globalization of trade and investment,

IT IS NOT globalization has contributed to a decline in environmental and health conditions. free trade benefits all nations and workers

Foreign environmental forces often operate differently than domestic environmental forces because

IT IS NOT the two forces do not affect each other they are easier to assess than domestic forces

When considering whether or not to give a gift in a new cultural business situation, the first practical question you should ask is

What is an acceptable gift?

E. T. Hall suggests that to learn another culture, you have to undergo extensive training or spend

a lifetime in the other culture.

What is an example of an external force that can affect a company's environment?

a newly-elected governor decides to raise property taxes

Culture exerts an influence on all business disciplines

because they exist in a social world in which culture operates.

Overall, what has occurred with the dollar volume of service exports worldwide? Service exports have decreased with the advent of competition. There has been no change. The dollar volume of exports has maintained a low, but consistent, rate. There has been an absolute increase.

There has been an absolute increase.

Which statement describes economies of scale? They refer to the rising scale on which efficiency improves as a result of cumulative experience and learning. They are the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases. They are only relevant to manufacturing industries. They occur due to the presence of abundance resource endowments within a nation.

They are the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.

Mexico and Canada are major U.S. trading partners because they have the benefit of lower freight charges and shorter delivery times. Why do these benefits exist for these two nations? They have established economies of scale for goods and services. They source production materials from China. They share a border with the United States. They established these parameters in the NAFTA agreement.

They share a border with the United States.

Mercantilists believed that merchants should import goods to raise the level of living. a nation should have an export surplus in order to accumulate precious metals. a nation should produce goods for which there is a comparative advantage. governments should lower import duties.

a nation should have an export surplus in order to accumulate precious metals.

Government administrations get concerned when the number and value of imports into the country are greater than the value of the country's exports. In other words, the administration is concerned about economies of scale. a trade deficit. absolute advantage. product differentiation.

a trade deficit.

The theory of resource endowment explains why France sends cosmetics, wine, and clothing to Chile. that a nation will trade goods that can be produced with the production factor that is most abundant. why an automobile can be made either by hand or by a capital-intensive process. that a nation less efficient in producing a good has a comparative advantage.

that a nation will trade goods that can be produced with the production factor that is most abundant.