CBA 300
How many of the United Nations Global Compact's 10 principles address the environment?
3
The sense of beauty and taste within a culture is known as its ______
Aesthetics
Individuals in ______ cultures tend to be emotional or expressive.
Affective
Which of the following are rules of thumb for doing business across cultures? (Check all that apply.)
Be prepared. Manners are important. Slow down.
According to the tenets of _____, all who profess their faith in the Resurrection of Jesus will be received into heaven after death.
Christianity
Based on Trompenaars's framework, cultures that practice ________ plan their actions with reference to group benefits.
Communitarianism
Kylie told the marketing team that it wouldn't make sense to try and market their company's new frozen meal product line in parts of South Africa because the consumers didn't have electricity, much less refrigeration. Kylie is demonstrating ____________ (production/cultural) awareness.
Cultural
In _____ cultures, work relationships carry over to other areas of life and influence them.
Diffuse
Cost Drivers of Globalization
Economies of scale & scope Savings from outsourcing & offshoring Reduced taxes or subsidies for R&D
Wind turbines are becoming more common throughout the United States. These turbines create a source of _________ energy.
Electric
Jordan moved from the United States and took a job at a company based in China. He was always trying to get his co-workers in China to discuss their personal feelings regarding corporate decisions, but they were reluctant to do so because such conversations were not typical of their culture. Jordan's behavior is an example of _____.
Ethnocentricity
Limits address the reality that environmental resources are ______.
Exhaustible
Heat that is drawn from steam reservoirs deep in the earth is used to create _____ power.
Geothermal
Which type of power is derived from the heat stored in the earth?
Geothermal
Which of the following is the world's largest renewable source of electricity?
Hydropower
Leslie decided to hire Patricia for the job because her assistant is Patricia's aunt, and Patricia's aunt knows that Patricia will be able to do the job. Which social institution played a role in the hiring of Patricia?
Kinship
Which of the following areas are addressed by the United Nations Global Compact? (Check all that apply.)
Labor Environment Human Rights Anti-corruption
The human-made objects created by a culture are called _______ culture, or artifacts.
Material
Carbon footprinting is a way to _____ sustainability.
Measure
The least developed of the seven alternative energy sources is ________.
Ocean Energy
Which of the following should be kept in mind while analyzing cultural frameworks? (Check all that apply.)
One's own culture functions as an implicit reference point for comparison. Analyzing cultural frameworks is only the beginning of understanding the complexity of cultures
Biomass is a renewable fuel that relies on the energy source of _____.
Photosynthesis
Which is the fasting-growing renewable power technology and the second-fastest overall power technology?
Solar photovoltaic power
Anti-Global Forces
Some governments Labor interests Environmental interests Anti-business interests Protectionist & anti-immigrant interests in U.S. & Europe
Globalization (Economic)
The global integration of consumer, business and financial markets The global integration of labor and production
Globalization (Cultural)
The global transmission of values, ideas, cultural, and artistic expressions
Choose the selection that best depicts world trade in merchandise in 2016.
The largest merchandise exporters in 2016, in order were China, the United States, Germany, Japan, and the Netherlands.
Which factor does not contribute to the weak economic improvement for the middle class in developed countries?
The middle class has not achieved advanced academic degrees by any effective percentages (The middle class's lack of financial benefit from trade is NOT due to their lack of improving their education and opportunities. It is predominantly due to the wealthy business owners holding tight control of their profits and not allowing it to trickle down to the middle class.)
Self-Reference Criterion (SRC)
The naïve assumption that different cultures operate like one's own
Which of the following are characteristics of environmentally sustainable businesses? (Check all that apply.)
They accept that resources are limited. They recognize the need for equity in their supply chains. They develop ways to manage the interdependence of the systems in which they operate.
According to Kluckhohn and Strodtbeck, which of the following are among the universal problems to which all cultures offer solutions? (Check all that apply.)
What relationship should people have with nature? What are the preferred forms of human activity? What sorts of relationships should exist among individuals? What is the basic nature of humans?
The three characteristics of sustainable business that Waves would try to meet are
limits, interdependence, and equity. (Limits involve recognition that environmental resources are exhaustible. Interdependence describes the relationships among economic, social, and ecological systems. And equity is in distribution and makes the interdependence possible.)
Two unconventional sources of oil are _____. (Check all that apply.)
oil-bearing shale oil sands
To thrive in the international business environment, one must understand that
people from other cultures and other countries will perceive situations and their importance differently.
The Carbon Disclosure Project is a nonprofit organization that provides reporting frameworks for _______. (Check all that apply.)
reduction of greenhouse gas emissions sustainable water use
Which of the following were Hofstede's original four cultural dimensions? (Check all that apply.)
uncertainty avoidance masculinity-femininity power distance individualism-collectivism
A(n) ______ culture tends to be rule-based, while ______ cultures tend to be relationship-based.
universalist; particularist
Choose the selection that best depicts the direction of world trade in 2015.
About half of the exports from developing nations go to developed countries. (About half of the exports from developing nations go to developed countries, but this proportion has been declining as the developing nations participate more extensively in trade with other developing nations, from 72 percent in 1970 to about 43 percent in 2015.)
When Milli explained to a France-based company that her U.S.-based firm would provide all of the necessary financial documentation to prove its worth, she was taken aback when the French company said they would prefer to know who the treasurer of her company was for the past ten years. This example shows how culture can affect the _____ area of a company.
Accounting
Gavin was recently named president of a financial institution on Wall Street in New York, where he has worked for the past 22 years. During his career, he has developed financial strategies that helped small companies strengthen their financial holdings. He is recognized by his peers as a leader in the financial industry. This scenario exemplifies the _____ culture described by Trompenaars.
Achievement
Measuring Environmental Sustainability It is important for businesses to state their commitment to environmental sustainability. It is also important to measure how successful they are at achieving their goals.
Addresses human rights, labor, the environment, and anticompetition. - UN Global Compact Provides information on how to report, what to report, what performance indicators to use, and how to apply them. - Global Reporting Initiative Provides reporting framework for sustainable water use and the reduction of greenhouse gas emissions. - Carbon Disclosure Project Attempts to measure the volume of greenhouse gas emissions caused by a product's manufacture and use. - Footprinting
Determinants of a Culture Culture is the sum total of the beliefs, rules, techniques, institutions, and artifacts that characterize human populations. A society's culture manifests in everything including aesthetics, religion, material culture, language and communication, and social organization.
Aesthetics - color of mourning; music and folklore Material Culture - classical theater; cooking Language and Communication - facial expressions; gestures Societal Organizations - family; Facebook
Domestic environment (DE)
All the uncontrollable forces originating in the home country that surround and influence the life and development of the firm
Foreign environment (FE)
All the uncontrollable forces originating outside the home country that surround and influence the firm
Wind power and ocean energy are two forms of _____ (nonrenewable or alternative) energy sources.
Alternative
A culture's aesthetics are expressed most intentionally in _______. (Check all that apply.)
Art Music Drama Folklore
Natalie planned to purchase Belgian chocolate during her visit to Brussels because Belgian chocolate has a worldwide reputation for quality. The chocolate Natalie plans to purchase is an example of a(n) _____.
Artificat
______ cultures consider who a person is in terms of his or her family lineage, age, or other attributes.
Ascription
The life cycle _____ is the approach used to evaluate the environmental impact aspects of a product or service throughout its life cycle. This same process is sometimes called cradle-to-grave analysis.
Assessment
The Global Reporting Initiative is a network made up mostly of ________ that have collaborated to develop a sustainability reporting framework.
Businesses
Which of the following nations demonstrate a specific rather than a diffuse culture? (Check all that apply.)
Canada Australia Germany
A product's ____ footprint measures the volume of greenhouse gas emissions associated with it, usually throughout its life cycle.
Carbon
Which of the environmental frameworks is a nonprofit organization that provides reporting for sustainable water use and reduction of greenhouse gas emissions?
Carbon Disclosure Project
Of the following countries, which has the largest capacity of wind power?
China
Which religion has many denominations and shares a belief that there is one God who is revealed through human history?
Christianity
The North-South divide is based on the idea that _____ affects economic and intellectual development.
Climate
_______ is the set of meteorological conditions of temperature, precipitation, and wind that prevail in a region.
Climate
The emissions released by burning _____ are directly responsible for global warming.
Coal
People in highly ______ cultures belong to strong, cohesive in-groups that look after them in exchange for loyalty.
Collectivistic
Technological Drivers of Globalization
Computers Communications technology (1st Xerox fax machine in 1966; cable & satellite TV systems) The Internet Network computing Logistics (1st bar code in U.S. in 1974)
Which of the following statements are true of the command-and-control approach to accounting procedures? (Check all that apply.)
Controls are administered by formal institutions. Compliance is gained through rules and sanctions.
Which of the following are examples of cultural paradoxes? (Check all that apply.)
Costa Rica is a high-context culture, yet it prefers automated tellers to real tellers. Japanese have low tolerance for ambiguity, yet their contracts have ambiguous clauses. U.S. culture is considered individualistic, yet the United States has the highest rate of charitable giving.
Which sustainability approach suggests that products and services should be designed to completely close the production loop, so that all resources needed to produce them are recycled and reused rather than discarded or left to pollute?
Cradle-to-Cradle design
Natalie knew her company could sell its bicycles in England, but she wanted her marketing team to learn more about how consumers in England use bicycles: Do they ride them to work, or do they ride bicycles just for pleasure? What aspect of marketing is Natalie concerned with?
Culture
Growth of International Business This activity examines the growth of international firms and international business, and addresses the key drivers that are leading firms to internationalize their operations. The size and number of international businesses have been increasing rapidly in recent years. It is useful to appreciate the extent to which businesses and markets have internationalized, as well as understand the driving forces underlying this internationalization.
Driver of Globalization - General Characteristic Political - preferential trade agreements; privatization of industry Technological - the Internet Market - saturated home market Cost - economies of scale Competitive - new entrants
Drivers of Globalization Globalization has been driven by five major factors: political, technological, market, cost, and competitive. Business has fueled these trends and has been the beneficiary of these trends. Understanding these trends helps businesses develop strategies and tactics to accelerate these trends. Understanding globalization trends helps businesses identify opportunities and threats in their environment. Understanding these trends will also make the changes much more manageable. International businesses have greater flexibility, more options, and a broader scope to consider globalization of production and globalization of markets.
Driving Force; Description; Implication for Business Competitive Drivers; explosive growth in international business; high competition in world markets Political Drivers; preferential trading arrangements and privatization of industries; increased opportunities for trade and investment Cost Drivers; exporting or producing overseas, or outsourcing; lower cost of goods sold Technological Drivers; Explosive growth of high-power, low-cost computing; growth in services due to data processing speed increase Market Drivers; creating new markets; new opportunities and new markets to sell goods and services
Characteristics of Environmentally Sustainable Business Environmental sustainability is about maintaining the environment, the economy, or people within the economy or the organization. It requires businesses to develop new approaches to the way they operate. Businesses that are committed to environmental sustainability accept their responsibility for caring for the environment and share several distinct characteristics.
Environmental resources are exhaustible - Limits Complex relationships that sustainable practices create among ecological, social, and economic systems. - Interdependence All stakeholders have to benefit. - Equity in Distribution
If a business decided to conduct all of its manufacturing processes in another country because it could produce items at a lower cost in that country, but it failed to pay the employees in the other country a fair wage because "everyone in that country is poor," then that company would not be applying which of the following concepts?
Equity in Distribution
Which of the following refers to the belief that your own culture is superior to other cultures?
Ethnocentricity
Which of the following are included in Kluckhohn and Strodtbeck's values framework? (Check all that apply.)
Evaluation of human nature Relationships among people Relationship to nature Modes of human activity
True or false: Hofstede's cultural dimensions support the idea that a management technique that is appropriate in one national culture is generally appropriate in another.
False
True or false: Leadership styles tend to remain constant across cultures.
False
True or false: Men's roles across cultures differ less than women's roles.
False
True or false: Natural gas has greenhouse-gas emissions significantly higher than those of oil or coal.
False
True or false: Practices related to gift giving are generally the same from one culture to the next.
False
True or false: While plains and plateaus can impede exchange and interaction between neighboring countries, mountains facilitate trade and make exchange more likely.
False
Is the following statement true or false? As long as everyone speaks the same language, there will be no misunderstanding.
False. From country to country, there are cultural subtleties in the same language that set a slightly different nuance to the end meaning.
The _______ is the basic unit of institutions based on kinship.
Family
Based on Trompenaars's dimensions, which cultures plan, anticipate, and see a better world evolving?
Future-focused
A ______ mind-set includes an openness to diversity along with an ability to pull ideas together across boundaries created by that diversity.
Global
Which of the following are frameworks for measuring sustainability? (Check all that apply.)
Global Compact Global Reporting Initiative Water Footprinting Carbon Disclosure Project
The _______ guidelines provide businesses with information on measuring and reporting the environmental impact of their operations.
Global Reporting Initiative
Competitive Drivers of Globalization
Global competition Home market protection/ entering the competitors' home markets to distract them Guarantee of key raw materials' supply Existing IB protection/ investment in downstream markets
High and Low Context Hall's High and Low context framework is a useful way to classify cultures based on communication patterns found in the culture. High context involves high levels of meaning communicated through the context that surrounds the specific communication act. Low context involves explicit communication and low levels of meaning in the context. This exercise addresses their general characteristics.
High Context Characteristics: - Face-to-Face relationships are important - Long-Term relationships - Less written and formal communication - Multiple ties and networks - Knowledge is situational/relational - Strong insider/outsider boundaries Low Context Characteristics: - Verbally explicit information - People play by external rules - Knowledge is codified and accessible - Task-centered - Sequencing of activities - Interpersonal connections of shorter duration - Lots of written information
Market Drivers of Globalization
Home market protection/ preventing competitors from gaining access to the existing clients' accounts Home market saturation
Cultural values play key roles in motivating and evaluating employees. This statement is an example of culture affecting which business function?
Human Resources
Jensen was surprised to learn that the company to which she was applying hires only graduates from Ivy League schools. This example demonstrates how culture can impact _____ in business.
Human Resources
The masculinity side of Hofstede's dimension represents a preference in society for achievement, assertiveness, and material rewards for success. Its opposite, femininity, stands for a preference for cooperation, modesty, caring, and quality of life. Manolis is recruiting for a new assistant who is balanced in the masculinity and femininity characteristics. Who should he hire?
Hurshey enjoys engaging his coworkers in various team-building activities and is seeking greater responsibility and salary. (Hurshey exhibits both feminine, team-building and inclusion, as well as masculine, greater responsibility and power characteristics.)
Trompenaars's dimension of _______ indicates whether people plan their actions with reference to themselves or to the group.
Individualism vs. Communitarianism
People who live in the United States are rewarded for being independent. The United States is an example of a(n) ______ (individualistic/collectivistic) culture.
Individualistic
According to Kluckhohn and Strodtbeck, relationships among individuals in a low context culture tend to focus on ______.
Individuals
Anti-Globalization Concerns
Injurious social implications Uneven results across nations and people -Lack of competitiveness -Reduced state sovereignty -Unfair representation and accountability in supranational institutions -Lack of host governments bargaining power vis-a-vis MNCs Loss of national and cultural identity "Race to the Bottom" -Deleterious effects on labor and labor standards -Decline in environmental and health conditions
International environment (IE)
Interactions between DEFs and FEFs, as well as interactions between FEFs of 2 countries, such as when an affiliate in one country does business with customers in another
The fracking process used to extract oil from the ground has caused public health problems, more traffic, and social disturbances in the areas of the country where the process takes place. In other words, the single action of fracking has affected other systems. The results of fracking offer an example of the _____ of systems.
Interdependence
________ describes the complex relationships that sustainable practices create among ecological, social, and economic systems, in which actions in one of these systems may affect the other two.
Interdependence
What Is International Business? This activity is focused on understanding what international business is, why and how it differs from domestic business, why it is important, and its historical development. International business is a broad and potentially complex field of study and practice. There are many different definitions and concepts that are critical to this field, and this activity will emphasize several of the most critical ones that are used throughout the text. Understanding these terms and concepts will help students, managers and policy makers to better understand what international business is, how it differs from domestic business, why it is becoming increasingly important, and how international business has evolved throughout history.
International Business Term - General Characteristics International Business - Activity Across Borders Foreign Business - Outside Home Market Self-Reference Criterion - Reference to own cultural values Environment - All forces impacting firm International Company - Operations in multiple countries Uncontrollable forces - External Forces Controllable Forces - Internal forces Domestic Environment - Forces in home country Foreign Environment - Forces beyond home nation International Environment - Forces with interaction
International Trade Theories International trade theory attempts to explain why nations trade and to help predict the direction, composition, and volume of goods that will be traded. A variety of different theories have been proposed over the past several centuries to help explain the existence of trade between nations and to help predict whether trade will occur, what products or services will be traded, the direction of this trade, and the volume of this trade. Understanding the differences between these theories helps managers and policy makers to understand whether and how to pursue trade opportunities internationally.
International Trade Theory - General Characteristics Mercantilism - Government stimulates trade by means of protectionism Absolute Advantage - Trade most efficiently produced goods Comparative Advantage - Trade goods and services at a lower opportunity cost than others Differences in Resource Endowments - Trade materials that are abundant Overlapping Demand - Trade influenced by relative income levels Diamond Model of National Competitive Advantage - Factors that can drive competitive advantage for one economy over another
The peak production period of petroleum _______.
Is occurring right now
The Globalization Debate Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing. There is evidence to support the theory that falling barriers to international trade and investment drive the global economy toward greater prosperity. There are, however, critics who argue against globalization. Anecdotes, evidence, and arguments can be collected to support each side of the debate. International businesses need to understand the nature of the globalization debate and observe how their own practices may act in support of or against globalization. Understanding how each side sees the issues can lead toward better solutions to the problems caused by globalization.
Issue; Argument; For or Against Globalization Socioeconomic development; there is a link between free trade and economic growth; For Results across nations and people; there is a widening gap between rich and poor; Against Jobs; expanded trade is linked to the creation of more and better jobs; For Labor and Labor standards; jobs are migrating to countries lower standards; Against Environment and Health; Damage to the environment; Against
Which of the following describe carbon footprinting? (Check all that apply.)
It measures the volume of greenhouse gas emissions. It measures indirect consumption as a result of the manufacture of the product. It measures direct consumption as a result of product use.
Which of the following describe a global mind-set? (Check all that apply.)
It requires an openness to diversity. It requires a willingness to deal with complexity. It requires the ability to pull ideas together across boundaries created by diversity.
Which of the following are cultural frameworks? (Check all that apply.)
Kluckhohn and Strodtbeck's cultural orientation Edward Hall's high context and low context Trompenaars's seven dimensions Hofstede's six dimensions
The most obvious and distancing cultural distinction associated with international business is ______.
Language
There is nothing as important as _______ (finances/language) in distinguishing one culture or subculture from another.
Language
A person's age, rank, and title are taken into account more in a ______ (large/small) power-distance culture.
Large
Which of the following would be included in Edward Hall's definition of context in a culture's communication? (Check all that apply.)
Liam slumped over the podium as he gave his presentation. Helen will do her presentation after Connor but before Jeremy. Tyler started his speech at the back of the room and moved toward the front as he finished.
Kenneth is a farmer and realizes that much of the soil in the region of the country where he lives is becoming unusable to grow certain crops. What term is used to describe environmental resources that are exhaustible?
Limits
The United States and Canada conduct broad-based trade with each other. Which aspect of natural capital allows for this trade?
Location
The Interesting Influence of Geographic Features Natural capital includes resources such as air, land, and water that provide us with the goods and services on which our survival depends. Natural capital is the basis for everything we do as humans. One way to understand natural capital is to look at it through the lens of geography and how location, topography, and climate influence the conduct of international business. Topography influences language patterns. Climate influences settlement patterns. Water availability influences settlement patterns and their density. Proximity leads to trade relationships. All of these relationships influence trade.
Location - Characteristic Central Asian Hindu Kush - Mountainous regions create barriers, accessibility issues Austria and her neighbors - Proximity leads to trade relationships China and Switzerland - Mountainous villages developed separate languages Colombia - Altitude differences create separate markets Australia - Only continent without inland waterway
In many cultures, individualism and collectivism have a significant impact on employees in the workplace. According to Hofstede's Big Idea, individualism is focused on each individual acting on his or her own and making their own choices, whereas collectivism views the group as the primary entity, with the individuals lost along the way. From the following, select the statement that best describes individualism.
Mark was recently hired at WiTalk and plans to stay with the company for 5 years to gain experience that will enable him to get better job with more pay. (Mark is only interested in gaining experience to move forward with a new career with better pay, which benefits himself only.)
Hofstede's _____-______dimension describes the distribution of roles between the sexes.
Masculinity; Femininity
Geert Hofstede's Big Idea Geert Hofstede undertook what is probably the most famous study of how culture relates to values in the workplace. Through his research in the late 1960s and early 1970s, he was able to isolate four dimensions that he claimed summarized different cultures: power distance, individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, and, later, Confucian dynamism. How a society's culture affects the values found in the workplace is considerably important to an international business with operations in different countries. Management processes and practices may need to vary according to culturally determined work-related values. This activity is important because both employees and leaders within an organization are impacted by the workplace culture, which can positively or negatively influence the overall reputation, growth, and financial stability of the company. By identifying and understanding which cultural workplace dimension that is exhibited by the employees, management can communicate more effectively to create an integrated and inclusive environment within the organization. The goal of this exercise is to demonstrate your understanding of Geert Hofstede's Big Idea of the four dimensions of workplace culture by analyzing a case and identifying the workplace culture represented in each situation. Read the case and answer the questions that follow. WiTalk Corporation is a telecommunications company in France that provides Internet service to its customers all over the European Union. An advocate for diversity and inclusion, WiTalk employs 10,000 people from a wide range of backgrounds and cultures such as the following: - Michelle is concerned with personal stability. He has a high degree of respect for tradition and will go to great lengths to protect his reputation. - Galina has worked at the same company for more than 15 years. She parks in the same parking spot each day and values routine and predictability. - Manolis is extremely driven and assertive. His goal is to become the most powerful man in the company. - Ming is intellectually gifted and from a very powerful family in China. Due to the wealth and power of her family, she is expected to be extremely successful in the workplace. - Ben has very loose ties with his family and enjoys wearing provocative t-shirts to express a sense of freedom and uniqueness. He shows no interest in joining the family business. According to Geert Hofstede's Big Idea, power distance is one of the cultural dimensions within a workplace, which indicates the strength of societal social hierarchy—the extent to which the lower ranking individuals of a society accept and expect that power is distributed unequally. Who best represents this characteristic?
Ming (Ming is from a powerful family that expects her to achieve big things in her career.)
Concentrating solar thermal power uses _____ to collect sunlight that heats water running in tubes behind the collector's surface.
Mirrors
Cultural Frameworks: From Beijing to Freeport Cultural frameworks can be used to prepare for encountering a new culture, and this exercise gives you that opportunity. Review the section in your text on Culture Frameworks to familiarize yourself with the works of Hall, Kluckhohn and Strodtbeck, Hofstede, and Trompenaars. Read the case below and answer the questions that follow. You are a Chinese manager for an international firm, ChinaFish, headquartered in Beijing, and you are preparing for your first assignment to the United States, which will be for four years in Maine on the northern New England coast. Your responsibilities include expanding a fish-processing plant that your company, ChinaFish, has recently acquired from an old Yankee family, in order to build their export capabilities. Your title will be director of U.S. operations. Your English language skills and undergraduate major in English Literature have led to this assignment rather early in your career, and you want to be successful here beyond your manager's expectations. You have a copy of the Geringer text that you picked up in an effort to begin to prepare yourself for this assignment, and have read the frameworks with interest. As you review Hall's high and low context framework, which statement is accurate of the culture in the new assignment?
More explicit verbal communications will be important. (China is much higher in context than the United States. These differences almost have no meaning for you at this point, but as you experience the differences, these concepts will help you figure out what may be going on.)
International Trade Understanding the growth and patterns of world trade is important for managers. This activity examines the direction of global trade and its relevance for international firms.
More than half of exports from developing countries go to developed countries - Direction of Trade A significant amount of trade occurs within trade areas - Regionalization of Trade Favorable business climate exists in importing nation - Relevance of Major Trading Partners for Mangers Mexico and Canada - Major U.S. Trading Partner U.S. trade relationship with China - Trade Deficit Value of exports exceed value of imports - Trade Surplus
What does Trompenaars' dimension of individualism vs. communitarianism suggest to the Chinese manager?
Motivation activities in the new culture should be focused on the individual. (Coming from China, the Americans will need the opposite motivation, reward, and evaluation, focused on the individual.)
All the formations of our ecosystem that provide us with goods and services on which our survival depends are collectively referred to as ______ capital.
Natural
Anything supplied by nature on which people depend is called a _______ resource.
Natural
Land, air, water, and living organisms are all components of _______ (natural or social?) capital.
Natural
When Shawna was transferred from the U.S.-based office to the affiliate in Britain, she quickly realized that showing emotions was frowned upon. Which of Trompenaars's dimensions does Shawna's experience reflect?
Neutral vs. Affective
A _______ (renewable/nonrenewable) energy source cannot be replenished naturally.
Nonrenewable
Oil-bearing shale yields 25 liters or more of liquid hydrocarbons per ton of rock and is an unconventional source of oil that has remained undeveloped because of environmental problems. The largest known source of this shale is found in _____.
North America
Cultural _____ are contradictions in a culture's values.
Paradoxes
Which of the following characterize indulgent cultures? (Check all that apply.)
People believe they have personal control over their lives. Freedom of speech is valued. Leisure is valued.
Which nonrenewable energy source has been a cheap source of energy and a raw material for plastics, fertilizers, and other industrial applications?
Petroleum
Which of the following are nonrenewable energy sources? (Check all that apply.)
Petroleum Natural Gas Nuclear power Coal
Which of the following minerals are rare earths? (Check all that apply.)
Platinum Chrome Vanadium Manganese
_______ _______ is the extent to which members of a society expect power to be distributed unequally and accept that it is.
Power; Distance
Political Drivers of Globalization
Preferential trading arrangements - single combined markets Lower trade and investment barriers Deregulation and privatization within countries Opening economies to the outside world Multinational and bilateral agreements
______ cultures tend to neither plan nor dwell on the past, and there is preference for short-term benefits and immediate results.
Present-focused
When Kevin's US-based company purchased a manufacturing facility in China, the company decided to increase the output of the facility by adding an overnight shift. The workers refused to work the overnight hours and eventually the US owner agreed to return to a regular work schedule and output levels dropped. Which aspect of business is being affected by culture?
Production
What is the role of profits in stakeholder theory?
Profits are the result of value creation.
Steel manufacturers would not be able to produce a product without the use of chrome, which is one of the 17 nonfuel mineral elements known as _____ ______.
Rare; Earths
Which of Kluckhohn and Strodtbeck's value orientations relates to society's beliefs about the legitimate form of social structure and hierarchy?
Relationships among individuals
What are the two major categories of natural resources? (Check two.)
Renewable Nonrenewable
Which cultural dimension suggests that society extends much energy establishing order and structure?
Restraint
Kendrick was surprised when the vendor from a Japan-based company called him and said they were not interested in doing business with Kendrick's U.S. manufacturing facility. The vendor explained that they'd had only had one discussion with Kendrick on the phone, and it was not sufficient to establish a relationship. What rule of thumb did Kendrick fail to consider?
Slow down
Which of the following countries have a strong uncertainty avoidance culture? (Check all that apply.)
South Korea Greece Japan
Melissa wonders which countries are the biggest trading partners with the United States. Which country was not one of the biggest trade partners of the United States in 2017?
Spain (Spain was not one of the biggest trade partners of the United States in 2017. Canada, Japan, China, and Mexico were all among the United States' top trading partners.)
The United States is considered a ____ (specific/diffuse) culture because people make distinctions between their work relationships and other relationships.
Specific
Which theory is an understanding of how business operates that takes into account all identifiable interest holders?
Stakeholder
According to Kluckhohn and Strodtbeck, a ______ relationship with nature would suggest that humans cannot change nature, that forces such as fate and genetics determine the conditions of life.
Subjugated
Environmental ____ is defined as a state in which the demands placed upon the environment by people and commerce can be met without reducing the capacity of the environment to provide for future generations.
Sustainability
Which statement best explains the trade in services based on international trade?
The primary-world nations experienced an absolute increase of the dollar volume of their service exports. (All regions and essentially all the primary world nations experienced an absolute increase in the dollar volume of their service exports, though the proportion of world exports of commercial services from Latin America, the European Union, Africa, and the Middle East declined since 1980.)
Which statement reflects how evenly trade has grown?
The proportion of merchandise exports coming from North America, Latin America, Europe, Africa, and the Middle East has decreased since 1983 (As trade has grown globally, some nations have fared better than others. Although the absolute value of their merchandise exports increased, the proportion of world trade coming from North America, Latin America, Africa, and the Middle East decreased since 1980, reflecting the greater level of export growth in other regions.)
Globalization (Politcal)
The rise in influence and power of supranational (international and regional) institutions
Which one of the following statements is accurate regarding the effects of culture on leadership?
The role, function, and traits of leaders vary by culture.
Volume and Direction of International Trade This exercise gives you the chance to examine the volume of international trade, the nations that import and export the most goods and services, and the importance of major trading partners. The volume of international trade, the largest trading nations, the direction of trade, and the relevance of major trading partners will be concepts reviewed. Reread the sections in your book entitled, "International Trade," "Direction of Trade," and "Major Trading Partners: Their Relevance for Managers" before attempting to complete this exercise. Read the case below and answer the questions that follow. Melissa Sanchez (a disguised name) is an undergraduate business student at a university in the United States. She is trying to decide what she wants to do for a career after she earns her degree. A friend suggested that international trade was a large and growing area of business activity, and that there were some excellent career opportunities as a result. Melissa was intrigued by this idea, but she did not know very much about what international trade entailed, such as what the volume of international trade was, whether it was growing or shrinking or by how much, or which countries are the most active in exporting or importing goods and services. Since Melissa wanted to be based in the United States, she also wondered which countries might be the most important trade partners for the United States. Which statement accurately portrays the volume of goods and services traded in 2017?
The volume of goods and services traded in 2017 was almost six times larger than the $4 trillion of trade in 1990. (In 1990, international trade in goods and services reached a milestone when its volume surpassed $4 trillion. By 2017, exports of goods and services had grown to almost six times that level.)
Which of the following are characteristics of equity in distribution as part of the sustainability context? (Check all that apply.)
There cannot be vast differences in the distribution of gains. All stakeholders have to benefit to some degree from the value added by business activities. Vast inequities may lead to social disruption and violence.
Which of the following are characteristics of small-power-distance cultures? (Check all that apply.)
There is equal distance among people. A consultative style of leadership predominates. Informality is the norm.
Heather noticed that the directions on the box of muffin mix said to bake the muffins at a different temperature if you live at a high altitude. These directions show how _________ affects a nation's natural capital.
Topography
Within the United States there are mountains, rivers, and deserts. These physical features of the Earth's surface are collectively known as _____.
Topography
True or false: A business that is responsible for environmental sustainability will recognize the need for equity in its supply chains.
True
Gift giving in international business develops a social bond with the hope that it will eventually lead to __________ (suspicion/trust) between the giver and recipient.
Trust
In which country does transparency and price drive the procurement process?
United States
Which country leads the world in recoverable coal reserves, with enough to last more than 200 years?
United States
According to Trompenaars, which culture tends to be rule-based and applies those rules to all people in all situations?
Universalist
Volkswagen is developing full lines of electric vehicles. All of the following are stated as part of this focus, except
Volkswagen's subsidiaries. (Volkswagen is developing full lines of electric vehicles focusing on production, R&D, intent, and finances.)
Hydropower relies on ________ to create energy.
Water
There are many large ports on the east coast of the United States that allow for trade between Europe and the United States. What aspect of these ports' natural capital allows for this trade?
Water
Which of the following are alternative energy sources? (Check all that apply.)
Wind power Hydropower Ocean energy
In this consultation process, who would the stakeholders be?
all internal constituencies and all identifiable external constituencies, including the present power supplier (Waves would begin the process by consulting all affected constituencies. Out of these discussions, a more complex understanding of the project would evolve and perhaps, some interesting development ideas. This approach would take more time. It could involve an external advisory council, as well.)
According to the VW spokesman, people will replace their VW vehicles
as often as they replace other vehicles, because people who buy new cars want fresh designs, and purchases are based on financing. (People will replace their VW vehicles just as often as they replace other vehicles because people who buy new cars want fresh designs, and purchases are based on financing.)
As Mark thinks about the Stakeholder Model, he decides that it is an optimistic vision for business. This is because stakeholder theory
assumes that the tensions among stakeholders can be balanced. (A stakeholder approach assumes that the tensions that exist among those with competing demands of a business can be balanced. So there are not winners and losers, but rather, a collaboration of interests.)
Sustainability: Mark's Decision Sustainability as a way of doing business is increasingly demanded by international customers. One approach to sustainable business practices is stakeholder theory. This exercise explores this theory in its practice by an international entrepreneur. Concerns about sustainability often accompany approaches to renewable power resources. Sustainability with regard to renewable power sources involves taking care of the present needs and future needs at the same time. Stakeholder theory rests on a set of assumptions about what business is that differs tremendously from the more traditional economic model. Read the case below and answer the questions that follow. Mark Anderson is about to make a decision about how to approach building a wind turbine to generate electricity on some property his surfboard manufacturing and repair business owns in Indonesia. Waves' HQ is on the Massachusetts coast, has been wind powered for years, has a small carbon footprint, and tries to follow sustainable practices. The Indonesian property is ideal for a wind turbine; it is isolated and receives significant wind. Its present power supply is unreliable and the manufacturing facility uses back-up propane generators. His wind power consultant suggests that excess power generation could result in reliable power to the local community, at lower rates. Waves' traditional business model has been an economic one, to focus on the bottom line, albeit somewhat loosely, since the margins in this area are pretty hefty and the competent competition thin, but recently Mark has been hearing and reading about a broader way to think of his business decisions, as an entity in a social context. Waves has always thought of the surrounding environment and the migrant surfing community it serves, but the bottom line has always been his focus for business decisions, with any social spending taken off the profitability side of the business. Mark estimates that this has been in the 10 to 15 percent range over the years. If Mark were to follow a traditional model for this decision, which he has plenty of practice applying pretty successfully, it would involve an economic analysis of the costs, benefits, and payback period of the investment. He wonders how to apply the stakeholder model for this decision. At what point would Waves' social context come into play, using the Stakeholder Model for the decision to build wind power generation capability in Indonesia?
at the very beginning of the process, with discussions with all stakeholders about the pros and cons (The stakeholders would be consulted at the very beginning of the process, soliciting their input, contributions, and concerns.)
Which type of power uses mirrors to collect sunlight that heats water running in tubes behind the collector's surface?
concentrating solar thermal power
Which sustainability approach is most closely in sync with nature?
cradle-to-cradle design
Mountains can act as barriers by _______. (Check all that apply.)
creating cultural barriers impeding trade separating neighbors
Growing nationalization is due to all the following except
easy availability of credit domestically. (Availability of domestic credit does not directly affect nationalization.)
Environmental sustainability calls on businesses to develop new approaches to the way they _______. (Check all that apply.)
ensure the health and well-being of all living creatures establish market prices for goods and services provide and consume energy design, produce, distribute, and consume goods and services
Weak uncertainty avoidance cultures ___________. (Check all that apply.)
expect innovation reward career change encourage risk taking
For a number of different reasons, a government may impose tariffs. When these add significantly to the cost of the goods, consumers might not want or be able to purchase a firm's products. Under these conditions, the least effective strategy would be
exporting. (Governments may want to prohibit certain goods from entering a country including environmental safety, public policy, or many other reasons. They may also wish to protect their own industries. A high tariff barrier can make goods cost-prohibitive, and in these cases, exporting is not an effective way to enter that country's market.)
Exporting, Licensing, or FDI A firm has three basic choices if it wants to sell its products in a foreign market—exporting, licensing, and foreign direct investment. The choice of the best option depends on characteristics of the product, the processes used to make these products, the control a firm needs to exercise over operations, and how the know-how of the firm might be protected. The best option is a strategic choice the international business manager must make, considering the interplay among these factors. Internalization theories explore the limitations of exporting and licensing from both explanatory and business perspectives. These theories identify with some precision how the relative profitability of foreign direct investment, exporting, and licensing vary with circumstances. Other theories help explain the direction of FDI. The internalization theories help explain why firms prefer FDI to licensing or exporting. Read the case below and answer the questions that follow. Your firm manufactures a range of household goods and appliances. Over the years, your firm has developed proprietary processes, using environmentally-friendly chemicals that have given your firm a leadership position for "green" customers. Part of your competitive advantage is that your products are competitively priced, which comes from your years of leadership in this industry. The appliances and products you manufacture tend to be bulky and a bit heavy for their size. As the domestic market seems to be flat, you have become increasingly interested in exploring international business options. You have learned that the environmentally-friendly products would be attractive in several foreign markets. You have also identified manufacturers who might be able to adapt their own processes to your proprietary one, but you are concerned that even with adequate protection of intellectual property, you could be creating your next generation of competitors if you do so. Competition is already tough, and there may be further intense cost pressures. You need to decide whether exporting, licensing, or foreign direct investment strategies would be the most appropriate for your firm. You want to maintain your competitive advantages, and international business seems to present the best opportunity for market expansion. What would be the best strategic option? You know that your decision can be informed by theories of foreign direct investment and related areas. How you apply the theories in the context of a strategic direction is the challenge immediately before you. If a product is bulky or heavy, transportation costs increase, and unless the product has an extremely high value-to-weight ratio, the least effective strategy would be
exporting. (Transportation costs of heavy or bulky products add to production costs, and it becomes unprofitable to ship those products over a long distance.)
If a firm has valuable know-how that cannot be adequately protected by contracts, and there is reason to believe that additional costs through transportation or tariffs would be high, the most effective approach would be
foreign direct investment. (Protecting a competitive advantage is important to a firm, and if that advantage cannot be protected in a licensing contract, foreign direct investment is the better option.)
If a firm's competitive advantage comes from skills and capacities that may be difficult to transfer or protect, and there are reasons to believe that additional costs through transportation or tariffs would be high, the most effective approach would be
foreign direct investment. (Some of the firm's competencies are difficult to transfer to another entity, which would be required in licensing. In that case, foreign direct investment may be the best approach.)
If a firm needs to maintain tight control over a foreign operation, and there is reason to believe that additional costs through transportation or tariffs would be high, the most effective approach would be
foreign direct investment. (If there are a number of factors at play in a competitive market, and a firm needs to exercise tight control to maximize its market share and earnings, foreign direct investment may be the best approach.)
The rise of nationalism is evident through all the following except
increased domestic lending (According to the video, increased domestic lending does not directly affect nationalism.)
Which of Hofstede's dimensions reflect the idea that in the United States it is more common to seek personal gratification?
indulgence vs. restraint (The manager would learn from Hofstede's dimension of indulgence vs. restraint that indulgence and personal gratification are strong in the Americas and Western Europe.)
If a firm's know-how, skills, and capabilities can be protected by contract, and if tight control over foreign operations is not vital to remain competitive, and there are reasons to believe that additional costs through transportation or tariffs would be high, the most effective approach would be
licensing. (Under the right conditions, licensing offers the firm a very attractive approach. All of the conditions mentioned in the question should be met.)
Roberto's company produces computer hardware and is holding off the release of its newest memory chips until it receives a report on how the disposal of the new chips could affect landfills and run-off in the future. Roberto's company is using _____ to evaluate the product.
life cycle assessment
Kluckhohn and Strodtbeck's relationship with nature classification ranges along a continuum from:
mastery to subjugation
Waves uses triple-bottom-line accounting. What does this reporting approach include?
measures of social, environmental, and economic impacts of the business (Triple-bottom-line (3BL) accounting is a way to report on the social, environmental, and economic impacts of the business.)
The reduction of global financialization is perceived due to
national politicians and regulators requiring banks to increase domestic loans and capital levels. (National politicians and regulators are making laws to direct investment into domestic financial markets.)
What is the cleanest-burning fossil fuel?
natural gas
Michelle is concerned with personal stability. He has a high degree of respect for tradition and will go to great lengths to protect his reputation. Which of Geert Hofstede's society social culture characteristics does Michelle best represent?
pragmatism/normative behavior (In normative societies, concern for personal stability is high. There is respect for tradition. A pragmatic orientation suggests a strong inclination to save and persevere.)
Having a global mind-set is very important
so that company managers understand that there are subtle complexities to be aware of and wary of.
Which power is based on the voltage created when certain materials are exposed to light?
solar photovoltaic power
Which of the following must be available for biomass to be produced?
solar power
Which of the following are the two sources of ocean energy?
sun's heat on the water mechanical energy of the tides and waves
Edward Hall's cultural framework is based upon ______.
the context of the communication pattern
VW is increasing capital expenditures by 20 billion euros for several reasons, one being
the demand for SUVs.
Which economic class has not seen strong growth from international trade?
the middle class in developed nations (The middle class in developed nations has not benefited from international trade due to wealthy company owners not sharing profitability from trade.)
It is important to carefully listen to clients and ask questions
to deeply understand what they are really trying to say.
Having greater global mind-set and cultural sensitivities is helpful for all the following reasons EXCEPT
to have global sensitivities that give one a far weaker position in the negotiating process (It is important to have greater global mind-set and cultural sensitivities for it helps to see big picture, helps with miscommunication, understanding possible markets, and avoid misunderstandings.)
