Chapters 1-8 for Midterm

A. Development assistance

Adaptation is one of the main methods of managing political risks. Which one of the following is a type of adaptation that allows an international business to assist the host country or region in improving the quality of life for​ locals? A. Development assistance B. Localization C. Partnership D. Legal contract E. Insurance against political risk

A. Location advantage

An oil company is seeking a market opportunity in the Middle East. Which one of the following options is a compelling reason for the company to favor foreign direct investment over other​ options? A. Location advantage B. Ability to establish dominant market presence C. Avoidance of trade barriers D. Vertical integration E. Exporting

C. reduce marketing costs

Companies that sell global products can standardize certain market activities in order to​ ________. A. overcome trade barriers B. design different packaging to meet global​ customers' needs C. reduce marketing costs D. account for the language spoken in each country E. develop new customers

D. developed countries

Countries that are highly industrialized and highly​ efficient, and whose people enjoy a high quality of life are called​ ________. A. newly industrialized countries​ (NICs) B. developing countries C. less developed countries D. developed countries E. emerging markets

A. Comparative advantage

Country X specializes in the production of corn more efficiently than any other nation and buys rice which it produces less efficiently than corn from Country​ Z, despite the fact that Country Z produces rice less efficiently than Country X. Which one of the following international trade theories agrees with Country​ X's decision to buy rice from Country​ Z? A. Comparative advantage B. Absolute advantage C. Factor proportions theory D. Mercantilism E. International product life cycle

E. Preserve national security

For which one of the following political motives do governments intervene in trade to ban certain​ defense-related goods from export to other​ nations? A. Protect its infant defense industries B. Respond to unfair trade practice C. Protect jobs D. Protect national identity E. Preserve national security

D. significant amount of the stock of a company is purchased in another country and the buyer gains a measure of management control

Foreign direct investment​ (FDI) occurs when​ ________. A. exporting a significant amount of products to a foreign country B. a U.S. firm purchases at least 5 percent of stock ownership in a company abroad C. money is transferred from a local bank into banks in the foreign country D. significant amount of the stock of a company is purchased in another country and the buyer gains a measure of management control E. a company purchases shares of a company in another country without obtaining a degree of management control

E. Arranging meetings with suitable distributors and partners

Governments of most nations have special agencies responsible for promoting exports. Which of the following is a type of export​ promotion? A. Advertising foreign products in trade magazines B. Guaranteeing loans C. Paying import duties D. Subsidizing new businesses E. Arranging meetings with suitable distributors and partners

C. Ex-Im Bank

Governments often promote exports by helping companies finance their export activities. Which U.S. financing entity finances the export activities of companies in the United States and offers insurance on foreign accounts​ receivable? A. World Trade Organization B. World Bank C. Ex-Im Bank D. Overseas Private Investment Corporation E. International Monetary Fund

A. shore up balance of payments

Host governments sometimes intervene in foreign direct investment to​ ____________. A. shore up balance of payments B. access international stock markets C. send resources out of the country D. encourage foreign companies to become suppliers E. increase capital outflows

D. companies must abide by the rules in every market in which they choose to operate

International firm management is vastly different from the management of a purely domestic business because​ _________________. A. the varying exchange rates of currencies make it nearly impossible to predict revenues and expenses. B. all management of an international firm must come from the country where the firm does business C. what is considered legal in one country is nearly always illegal in another D. companies must abide by the rules in every market in which they choose to operate E. every nation has different accounting laws and practices

C. Current employees who have worked in a country for an extended period

International firms attempt to gather information that will help them predict and manage political risk. Which source should a company use to gain insight into local culture and​ politics? A. Travel to the country B. CIA World Fact Book C. Current employees who have worked in a country for an extended period D. IMF country report E. United​ Nations' Human Development Index

B. Exports begin to account for an increasingly greater share of total product sales.

International product life cycle theory says that a company will begin by exporting its product and later undertake foreign direct investment as the product moves through its life cycle. Which of the following BEST defines the maturing product​ stage? A. Competition pressures companies to lower prices in order to maintain sales levels. B. Exports begin to account for an increasingly greater share of total product sales. C. The exact level of demand in the domestic market is highly uncertain. D. Most production now takes place outside the innovating country. E. Keep production where initial research and development occurred.

A. $1 billion

International trade is an important engine for job creation in many countries. The U.S. Department of Commerce calculates that for every​ ________ increase in​ exports, 22,800 jobs are created in the United States. A. $1 billion B. $500,000 C. $2 billion D. $100,000 E. $50,000

C. the result of investments in education and innovation

Japan has an advantage in automobile production and the United States in the manufacture of airplanes. In the manufacture of computer​ components, Taiwan reigns​ supreme, although China is an increasingly important competitor. According to Michael​ Porter, this is in large part due to​ ________. A. government trade protection policy B. availability of natural​ resources, especially iron​ ore, that is needed for the auto industry C. the result of investments in education and innovation D. a large labor force that is available to work and avoid high unemployment level. E. the natural surface features of these countries and climate

D. have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries

Multinational corporations are key players in international business and can be described as companies that​ __________. A. sell traditional products globally B. are engaged only in exporting products globally C. employ thousands of workers D. have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries E. tend to have innovative cultures

D. Lower taxes on merchandise passing through the foreign trade zone

One of the most common instruments that governments use to promote trade with other nations is the establishment of a foreign trade zone. Which one of the following is an advantage of a foreign trade​ zone? A. Guarantees for import/export loans B. Increased government revenue by applying additional import tariff C. Sheltering of sensitive cultures from outside influence D. Lower taxes on merchandise passing through the foreign trade zone E. Protection of trade secrets from foreign competitors

A. sovereignty of a nation

Opposition groups allege that globalization empowers organizations erodes the​ ________. A. sovereignty of a nation B. legal system of the country C. a​ country's exchange rate system D. local labor laws E. spread of democracy

A. Cultural Sensitivity

Personal​ relationships, or guanxi​, in​ China, are very important to successfully do business in China. Which one of the following characteristics of doing business with China is​ TRUE? A. Cultural Sensitivity B. Business before pleasure C. Importance of contracts, not contacts D. Family members make the best business partners E. Obtain a legal contract first

D. Greenfield investment

Poland is a source of skilled and inexpensive​ labor; it is an appealing location for automobile manufacturers. But the country had little in the way of advanced​ automobile-production facilities when General Motors considered investing there. What type of investment options did GM decide to take to exploit this market​ opportunity? A. Portfolio investment B. Export C. Acquisition D. Greenfield investment E. Merger

E. The foreign government has announced new laws stipulating that a specified amount of a good or service, which is known as local content requirements, must be supplied by producers in the domestic market

Political risk has been defined as the likelihood that a society will undergo political change that negatively affects local business activity. Which one of the following is an example of political​ risk? A. Foreign government has made a sudden policy change that encourages ownership of domestic companies B. Protective measures are in place to assure foreign nationals are safe from kidnapping C. A multinational company has increased its prices to meet the increased costs of operation overseas, which lead to the loss to a huge market share due to intense competition that created a major financial loss. D. The foreign government has purchased the company's assets at fair market value E. The foreign government has announced new laws stipulating that a specified amount of a good or service, which is known as local content requirements, must be supplied by producers in the domestic market

E. a specific fee for each unit​ (measured by​ number, weight,​ etc.) of an imported product

Tariffs that are called specific tariffs are levied based on​ ________. A. the government of a country that a product is passing through B. a percentage of its stated price and a specific fee for each unit. C. the amount​ (measured in units or​ weight) of a good that can enter a country during a certain period of time D. a percentage of the stated price of an imported product E. a specific fee for each unit​ (measured by​ number, weight,​ etc.) of an imported product

B. Agriculture subsidy

The General Agreement on Trade in Services​ (GATS) created during the Uruguay Round identifies four different forms that international trade in services can take. Which of the following is NOT one of those​ forms? A. Presence of natural resources B. Agriculture subsidy C. Commercial presence D. Cross-border supply E. Consumption abroad

D. Gaining influence

The United States has banned all trade and investment with Cuba since 1962. This is an example of which type of government political​ intervention? A. Trade retaliation B. Exposing Cuba to new ways of life C. National security protection D. Gaining influence E. Protection from import competition

D. GNI

The World Bank classifies​ countries' economic development according to​ ________. A. GNP B. HDI C. PPP D. GNI E. GDP

A. ethnocentricity

The belief that​ one's own ethnic group or culture is superior to that of others is referred to as​ ________. A. ethnocentricity B. cultural literacy C. aesthetics D. bridging the cultural gap E. cultural adaptability

A. globalization of markets

The convergence in buyer preferences in countries around the world is referred to as​ ________. A. globalization of markets B. globalization of production C. outsourcing D. commercialization E. diversity

E. Mandated benefits

The decision of whether to build facilities in a market abroad or to purchase existing operations in the local market can be difficult. Which one of the following local issues do managers have to​ consider? A. Home country labor laws B. Stock trading practices in the host country C. Preparing the home office travel schedule D. Local consumer interest rates E. Mandated benefits

D. culture

The definition of​ __________ centers around the set of​ values, beliefs, and rules of society. A. psychology B. community C. society D. culture E. social class

E. economies of scale

The new trade theory states that​ companies' specialization and output increase because of gains in efficiency that lowers the unit cost of production. This is a benefit from​ ________. A. maintaining a trade surplus B. product life cycle theory C. first mover advantage D. absolute advantage E. economies of scale

E. Cuba and North Korea

There are now far fewer communist nations than there were two decades ago. According to your​ textbook, which two countries remain hardline communist​ nations? A. Hungary and Czech Republic B. Germany and the UK C. Greece and Bulgaria D. Poland and Romania E. Cuba and North Korea

A. legal system

The​ ________ of a country refers to its set of rules and​ regulations, including the processes by which its laws are enforced and the ways in which its courts hold parties accountable for their actions. A. legal system B. political system C. economic system D. theocratic law E. civil law

A. national culture

We usually refer to British and Indonesians cultures as if all Britons and Indonesians are culturally identical. This generalization is because we are conditioned to think in terms of​ ________. A. national culture B. bridging the cultural gap C. a​ country's subculture D. globalization E. ethnic groups in the society

B. dumping

Western European plastic producers considered retaliating against Asian competitors whose prices were substantially lower in European markets than at home. The practice of selling at​ below-home prices is an example of​ ____________. A. cross border supply B. dumping C. import quota D. subsidy E. compound tariff

E. Embargo

What method of trade restriction is the U.S. using with​ Cuba? A. Voluntary export restraint​ (VER) B. Currency controls C. Import tariff D. Export tariff E. Embargo

E. Regulatory controls or bureaucratic rules designed to impair the flow of imports into a country

Which one of the following BEST describes administrative​ delays? A. A restriction on the amount of a good that can enter or leave a country during a certain period of time B. Discourage imports by restricting who is allowed to convert the​ nation's currency into the internationally acceptable currency C. Laws stipulating that producers in the domestic market must supply a specified amount of a good or service D. A complete ban on trade in one or more products with a particular country E. Regulatory controls or bureaucratic rules designed to impair the flow of imports into a country

E. Greenfield investment

Which one of the following BEST describes building a new subsidiary abroad from the ground​ up? A. Acquisition B. Portfolio investment C. Partnership D. Merger E. Greenfield investment

A. It fails to explain why firms choose FDI over exporting activities.

Which one of the following BEST describes the limitation of the international product life cycle​ theory? A. It fails to explain why firms choose FDI over exporting activities. B. It fails to explain why a company builds production capacity in​ low-cost developing nations to serve its markets around the world. C. It fails to explain why the company directly invests in production facilities in countries where demand is great enough. D. It fails to explain why in new product stage the company keeps production close to the research department. E. It fails to explain why a company begins by exporting its product and then later undertakes FDI as a product moves through its life cycle

E. Regulatory controls or bureaucratic rules designed to impede the flow of imports into a country

Which one of the following describes administrative​ delays? A. A complete ban on trade in one or more products with a particular country B. Restrictions on the convertibility of a currency into other currencies C. Restrictions on the amount​ (measured in units or​ weight) of a good that can enter or leave a country D. Compound tariffs levied on an imported product E. Regulatory controls or bureaucratic rules designed to impede the flow of imports into a country

E. The value of all goods and services produced within the borders of the nation over a​ one-year period

Which one of the following is counted as part of the gross domestic product​ (GDP)? A. The value of the​ nation's income generated from exports and imports over a​ one-year period B. Unreported transactions conducted in cash C. The value of the​ nation's income generated by the international operations of its​ companies, over a​ one-year period D. Volunteer work E. The value of all goods and services produced within the borders of the nation over a​ one-year period

C. Quota

Which one of the following refers to a restriction on the amount​ (measured in units or​ weight) of a good that can enter or leave a country during a certain period of​ time? A. Local content requirements B. A compound tariff C. Quota D. Tariff E. Administrative delays

E. Christianity

Which one of the following religions is the​ world's single largest​ religion? A. Buddhism B. Judaism C. Islam D. Confucianism E. Christianity

A. They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services.

Why do most international firms today support reasonable environmental​ laws? A. They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services. B. It helps the local economy and their image. C. They want to choose​ low-cost resources over environmental concerns. D. Openness and globalization lessen environmental standards. E. They want to introduce a new product line

A. To preserve national security

You are a manager of a U.S. firm that plans on exporting a product that is designated as a dual use product and you need to have a U.S. government approval before export can take place. What is the political motive behind this​ intervention? A. To preserve national security B. To gain and maintain control over events in the Western Hemisphere C. To protection national identity D. To protect jobs from going to China E. To ensure that other nations allow free trade

B. Values

What are the​ ideas, beliefs, and customs to which people are emotionally​ attached? A. Aesthetics B. Values C. Attitudes D. Customs E. Manners

D. Privatization

What is the name for the selling of​ government-owned economic resources to private​ operators? A. Confiscation B. Expropriation C. Nationalization D. Privatization E. Preserving property rights

B. Democratic

Which form of political system provides full civil and property​ rights? A. Totalitarian B. Democratic C. Communism D. Socialist E. Theocratic totalitarianism

C. To reduce their overall labor costs

Why do companies typically produce goods and services​ abroad? A. To avoid local environment laws B. To internationalize their operation C. To reduce their overall labor costs D. To promote economic development E. To maintain peace and security

D. foster trade and boost​ cross-border investment

The main purpose for establishing regional trade agreements such as NAFTA and APEC is to​ ________. A. reform immigration and labor laws B. eliminate cultural differences C. promote tourism and travel among neighboring countries D. foster trade and boost​ cross-border investment E. maintain border peace and security

A. attract relatively​ well-paying industries

From the perspective of international​ business, one important aspect of nations with solid basic education systems is that they​ ________. A. attract relatively​ well-paying industries B. tend not to invest in workers training C. must use symbols and pictures to communicate in these markets D. lack the determination of national competitiveness E. have a tendency to experience decrease in productivity

C. emerging

Firms from​ ________ markets are accounting for an ever greater share of global merger and acquisition activity. A. developed B. developing C. emerging D. industrialized E. underdeveloped

C. Brazil, India,​ China, and South Korea

According to your​ textbook, which one of the following sets of countries are classified as newly industrialized​ countries? A. Romania, Bulgaria, Cot​ Devoir, and Liberia B. Zambia, Zimbabwe,​ Kenya, and Yemen C. Brazil, India,​ China, and South Korea D. Canada, Japan, United​ States, and Australia E. New Zealand and Western European nations

D. Customer knowledge

A cologne or perfume producer might want to bottle its fragrance in France and give it a French name. This type of image appeal can be strong enough to encourage foreign direct investment. What is this an example​ of? A. Benefits of cooperation B. Rationalized production C. Following clients D. Customer knowledge E. Greenfield investment

B. Purchase an existing business or undertake greenfield investments

A company wants to ensure that its selling price remains the same in the foreign market and as it is in the home market. Which one of the following approaches is the company MOST likely to​ take? A. Portfolio investment B. Purchase an existing business or undertake greenfield investments C. Franchise D. Equal share partnership E. Export

C. Domestic producers

A government may impose an import quota to protect its domestic producers by placing a limit on the amount of goods allowed to enter the country. Who are the winners of imposing such​ quotas? A. Companies relying on the importation of​ so-called intermediate goods B. Domestic producers that rely on the import of product subject to quotas C. Domestic producers D. Exporters E. Consumers

E. adequate facilities in the local market​ aren't available

A greenfield investment is the best choice when​ ________. A. there's a lack of suitable potential employees B. government mandated benefits are high C. sustainability is at the core of the corporate mission D. the investor has a lack of capital E. adequate facilities in the local market​ aren't available

E. attitudes

A westerner​ says, "I do not like the Japanese purifications ritual because it involves being naked in a communal​ bath." The westerner quoted here might value modesty and hold conservative beliefs regarding exposure of the body. The westerner in this case would be communicating​ ________. A. ethnocentrism B. manners C. values D. family relationships E. attitudes

A. United States

According to​ Hofstede's Index, which country has the highest score on valuing hard work and promoting entrepreneurial risk​ taking, meaning that responsibility for poor business decisions is placed primarily on the individual in​ charge? A. United States B. Australia C. Canada D. China E. India

B. currency controls

Abyssinia believes its automobile industry is threatened by foreign car makers who have flooded its market with​ Toyota, Volvos, and Buicks. These foreign car makers require payment in Euros and U.S. dollars and will not accept​ Abyssins, the national currency of Abyssinia. To discourage the importation of these foreign​ cars, the Abyssinian government has restricted the amount of its own currency that can be converted into these foreign currencies by demanding that importers obtain a​ license, a practice known as​ ____________. A. ad volorem exchange B. currency controls C. tariff-quota D. exchange manipulation E. floating currency

B. has an absolute advantage in producing the product

According to Adam​ Smith, a nation should concentrate on producing the goods in which it​ ________. A. can gain strategic advantage by increasing the pace of privatization B. has an absolute advantage in producing the product C. can produce most efficiently D. can produce and export goods that require resources that are abundant E. can protect through government interventions to ensure foreign market accessibility

E. Libya

According to an annual study made by Business Software Alliance of software​ piracy, business software piracy averages around 39 percent globally and costs business software makers nearly​ $52 billion annually. Which country has the highest rate of pirated software in the​ world? A. Russia B. China C. Nigeria D. India E. Libya

B. Commerce Department

According to the U.S.​ ________, foreign direct investment​ (FDI) occurs when the physical assets or at least 10 percent of the stock in a company abroad is purchased to gain a measure of management control. A. Small Business Administration B. Commerce Department C. Credit Bureau D. Treasury Department E. Small Business Development Center

C. Complacency toward innovation

According to the infant industry​ argument, a​ country's emerging industries need protection from international competition during their development phase until they become sufficiently competitive internationally. Which one of the following represents a major consequence to this​ argument? A. Increase of​ country's export B. Preserve national security C. Complacency toward innovation D. Increase​ country's reliance on imported goods E. Increase consumer choices

A. Mergers and acquisitions

According to the​ textbook, the number of​ cross-border investment activities and their rising values over time underlie​ long-term growth in foreign direct investment. Which form of investments is the majority of these​ activities? A. Mergers and acquisitions B. Exporting C. Greenfield D. Portfolio investment E. Outsourcing

A. cooperation with a local partner and respect for national pride

According to the​ textbook, the successful acquisition of a local Hungarian brewery​ (formerly owned by the​ government) by a Belgian brewery is an example of​ ________. A. cooperation with a local partner and respect for national pride B. rationalized production C. the host country imposing control policy D. labor regulations E. following clients

C. People's resentment toward their own government

According to your​ textbook, ExxonMobil suspended production of liquid natural gas at its facility in​ Indonesia's Aceh province when separatist rebels targeted the complex with violence. What is the main origin of this conflict that forced Exxon to make this​ decision? A. Confiscation B. Disputes among​ ethnic, racial, and religious groups C. People's resentment toward their own government D. Territorial disputes E. Terrorism and kidnapping

A. To avoid import tariffs

According to your​ textbook, which of the following is one of the reasons that a large number of Korean manufacturers invested in production facilities in​ Tijuana, Mexico, just south of​ Mexico's border with​ California? A. To avoid import tariffs B. Local government intervention C. The economic system is more of a centrally planned economy. D. Low shipping costs E. Local content requirements

D. the new trade theory

According to​ ________, as a company increases the extent to which it specializes in the production of a particular​ good, output rises because of gains in efficiency. A. first mover advantage B. comparative advantage C. national competitive advantage D. the new trade theory E. economies of scale

A. products that consist mostly of​ low-priced natural resources

An export tariff is levied mostly by the government of a country that is exporting​ ________. A. products that consist mostly of​ low-priced natural resources B. highly advanced technological products C. to wealthy nations D. to​ non-WTO member countries E. agriculture products

C. Increase the pace of privatization of​ state-owned companies as the case in emerging markets.

Apart from the four factors identified as part of the​ diamond, Porter identifies the roles of government and chance in fostering the national competitiveness of industries. Which one of the following reflects​ governments' role in fostering the national competitiveness of​ industries? A. Increase government ownership of​ country's key industries to improve its capacity to innovate and upgrade. B. Impose trade barriers to protect its infant industries and new innovation. C. Increase the pace of privatization of​ state-owned companies as the case in emerging markets. D. Adopt the Mercantilism approach and eliminate trade deficit. E. Expand and adopt subsidized policy to ensure lower prices and maintain national competitiveness.

D. a nation experiences economic recession or political turmoil

As the world becomes even more like a global​ village, countries become dependent on trade with each other to sustain their own economies.​ However, the dangers of trade dependency become apparent when​ ________________. A. an emerging market shares borders with developed countries B. laws change in the developed trading partner C. tariffs and quotas are implemented in the emerging market D. a nation experiences economic recession or political turmoil E. unions become stronger in the emerging market

A. balance of payments

A​ country's ________ is a national accounting system that records all receipts coming into the nation and all payments to entities in other countries. A. balance of payments B. balance of trade C. balance sheet D. national budget E. income statement

B. folk customs

Celebrating the Dragon Boat Festival in China and the art of belly dancing in Turkey are examples of​ ________. A. attitudes B. folk customs C. values D. manners E. popular customs

A. Islam

Charging interest for money lent violates the law of which​ religion? A. Islam B. Christianity C. Judaism D. Buddhism E. Hinduism

D. International product life cycle

Company X developed a highly innovative product and began exporting it. Both domestic and international markets became aware of the product and its benefits. The product started selling in developing countries. To remain​ competitive, the company will start searching aggressively for​ low-cost production bases in developing nations. Which one of the following international trade theories does this example best​ explain? A. Absolute advantage B. Comparative advantage C. Mercantilism D. International product life cycle E. Factor proportions theory

E. Production costs

Consider the typical stuffed animal made in​ China, whose components are almost all imported to China. The stuffed​ animal's eyes are molded in Japan. Its outfit is imported from France. The​ polyester-fiber stuffing comes from either Germany or the United States. And the​ pile-fabric fur is produced in Korea. Only final assembly of these components occurs in China. This is an example of which management issue as it relates to foreign direct​ investment? A. Purchase or build decision B. Customer knowledge C. Partnership requirements D. Control desired over operation abroad E. Production costs

C. Protection of infant industries

Consumers often end up paying more for products because of a lack of competition. Which one of the following is a type of government intervention that leads to this​ problem? A. Job protection B. Protection of national identity C. Protection of infant industries D. Protection of national security E. Cultural motives

B. reducing budget​ deficits, allowing prices to reflect supply and demand and expanding credit availability.

Economic transition involves changing a​ nation's fundamental economic organization and creating entirely new​ free-market institutions. Some of the key reform measures to promote economic development include​ ________. A. reducing budget​ deficits, legalizing​ privatization, and controlling selling prices B. reducing budget​ deficits, allowing prices to reflect supply and demand and expanding credit availability. C. limiting credit availability to control money supply and stabilize the economy D. reducing budget​ deficits, increasing tariff charges on all imported​ goods, and strict investment laws E. stabilizing the economy and expanding state ownership of economic resources

E. protect jobs

Governments sometimes intervene in international trade to​ ________. A. generate revenue for specific industries B. make a political statement C. keep campaign promises D. punish producers of goods and services E. protect jobs

C. Ensure that a portion of the​ product's content originates locally.

Host countries have a variety of methods to restrict incoming FDI. These take two general forms ownership restrictions and performance demands. Which one of the following is considered a performance​ demand? A. Nondomestic investors are required to hold less than 50 percent stake in local firms. B. Nations do not allow FDI in their domestic weapons or national defense firms. C. Ensure that a portion of the​ product's content originates locally. D. Prohibit or restrict the nondomestic company from removing profits to its home country. E. Prohibit FDI in cultural industries.

B. current account

Import of goods and​ services, income receipts on assets​ abroad, and income payments on foreign assets inside the country are tallied under the​ ________. A. capital account B. current account C. current account deficit D. current account surplus E. balance of payment

E. By sending Central European workers to staff assembly lines in Korea and sending Korean managers and technicians to work in Central and Eastern Europe

Importing modern management practices into the culture of a transition country can be difficult. South​ Korea's Daewoo Motors faced a culture clash when it entered Central Europe.​ Korea's management system is based on a rigid hierarchical structure and an intense work ethic. Managers at​ Daewoo's car plants in South Korea arrived early for work to stand and greet workers at the company gates. But problems arose when​ Daewoo's managers did not fully comprehend the culture at its factories in Central Europe. How did the Korean​ company, Daewoo address this​ issue? A. By not allowing any Korean employee to work in the plant in Central and Eastern Europe B. By conducting Korean language training C. By providing all workers in Central Eastern and Europe with a merit increase to develop company loyalty. D. Be ensuring that all​ senior-level management of the Korean company in Central and Eastern Europe is all Korean to facilitate the communication with the headquarters E. By sending Central European workers to staff assembly lines in Korea and sending Korean managers and technicians to work in Central and Eastern Europe

A. Market economy

In which type of economy is the majority of a​ nation's land,​ factories, and other economic resources privately​ owned, either by businesses or by​ individuals? A. Market economy B. Laissez-faire economy C. Mixed economy D. Liberalism E. Centrally planned economy

E. Paris Convention

Industrial property is protected internationally under the​ ________ for the Protection of Industrial Property to which nearly 100 countries are signatories. A. General Agreement on Tariffs and Trade​ (GATT) B. Berne Convention C. International Monetary Fund​ (IMF) D. World Trade Organization E. Paris Convention

D. Overseas Private Investment Corporation

Insurance against political risk can be essential to companies entering risky business environments. Which type of insurance that insures U.S. companies that invest abroad against losses created by violent​ events, including war and​ terrorism, can also provide project​ financing? A. World Bank B. Foreign Credit Insurance Association C. World Trade Organization D. Overseas Private Investment Corporation E. International Monetary Fund

D. Voluntary export restraint​ (VER)

In​ 1980, the closing of U.S.​ carmakers' production facilities in the United States was creating a volatile​ anti-Japan sentiment among the population and the U.S. Congress. Fearing punitive​ legislation, the Japanese government and its carmakers decided to limit its automobile exports to the United States. This an example of​ _______________. A. Ad valorem tariff B.Tariff-quota C. Specific tariff D. Voluntary export restraint​ (VER) E. Compound tariff

A. Foreign Corrupt Practices Act

Managers must work within the established rules and regulations of each national business environment. Bribes often represent attempts to gain political influence. Which U.S. law forbids U.S. companies from bribing government officials or political candidates in other​ nations? A. Foreign Corrupt Practices Act B. Intellectual property laws C. Antitrust laws D. Product safety laws E. U.S. copyright laws

A. get a foothold in a new geographic market

Many​ cross-border M&A deals are driven by the desire of companies to​ _______________. A. get a foothold in a new geographic market B. fill gaps in a​ company's investment portfolio C. increase a​ firm's Internet presence D. reduce the costs of tariffs and to circumvent quota restrictions E. ease entry into the market in phases

A. Subsidize​ export, ban​ import, and impose tariff charges and quotas.

Mercantilism advocates that governments should actively intervene in international trade to maintain a trade surplus. Which of the following tools have mercantilist nations used to support this​ policy? A. Subsidize​ export, ban​ import, and impose tariff charges and quotas. B. Concentrate on producing the goods in which it holds an​ advantage, then trade with other nations. C. Adopt the factor proportion theory. D. Allow trade to flow as dictated by market forces to ensure trade surplus. E. Liberalize import policies to ensure access to products that mercantilist nations do not produce.

C. To invest in sectors, such as public utilities, that private companies cannot afford

Nationalization is more common than confiscation and expropriation. Likely candidates for nationalization include industries important to a​ nation's security and those that generate large revenues. In​ general, a government may nationalize an industry for which one of the following​ reasons? A. To block direct investment by foreign entities B. To dis-invest in obsolete technologies, products, or services C. To invest in sectors, such as public utilities, that private companies cannot afford D. To attract foreign direct investments E. To stabilize its currency against a stronger foreign currency.

D. national production, the portion of the economy devoted to agriculture, the amount of exports in the form of industrial goods, and overall economic structure

Nations are commonly classified as being​ developed, newly​ industrialized, or developing based on a quantifiable economic measure. Such measures include figures on​ ________. A. national production, the portion of the degree of technological dualism, and overall economic structure B. national production, the portion of the economy devoted to agriculture, purchasing power parity, and the amount of exports in the form agriculture C. national production, the amount of exports in the form of of industrial goods, and human development to the extent to which a government equitably provides its people with a long and healthy life, an education, and a decent standard of living. D. national production, the portion of the economy devoted to agriculture, the amount of exports in the form of industrial goods, and overall economic structure E. the level of development as international companies pursue business opportunities in emerging markets.

D. democracy

People have a constitutional right to voice opinion freely and without fear in​ (a) ________. A. totalitarianism B. socialism C. communism D. democracy E. secular totalitarianism

E. Unemployment

Political and social problems pose threats to​ China's future economic performance. Which one of the following potential challenges is largely the result of​ China's privatization of its​ industry? A. Relationship with Taiwan B. Poor relations with ethnic minority C. Factory worker strikes D.China's regaining control of Hong Kong E. Unemployment

E. trademark

The Nike​ "swoosh" and the name​ "Lexus" are protected by​ ________ law. A. copyright B. patent C. license D. contract E. trademark

E. more companies are operating in international markets from their inception

The ability of the theory of the product life cycle to accurately depict the trade flow of nations is being challenged. This is due to the fact that​ ________. A. companies today design new products and make product modifications at a very slow pace B. the U.S. is the sole innovator of products in the world C. the​ products' components are made in the home country and cannot be produced anywhere else D. many small companies are unable to team up with companies in other markets to develop new products or production technologies E. more companies are operating in international markets from their inception

C. World Trade Organization

The creation of the​ ________ was perhaps the greatest achievement of the 1986 Uruguay Round. A. World Health Organization B. Overseas Private Investment Corporation C. World Trade Organization D. International Monetary Fund E. World Bank

A. states that a country specializes in producing and exporting goods using the factors of production that are most abundant and thus cheapest - not the goods in which it is most productive

The difference between the comparative advantage theory and the factor proportions theory is that the factor proportions theory​ ________. A. states that a country specializes in producing and exporting goods using the factors of production that are most abundant and thus cheapest - not the goods in which it is most productive B. says that international trade is a​ positive-sum game. C. believes that nations could increase their wealth by maintaining a trade surplus D. considers labor to be the only resource used in the production process E. suggests that trade is a​ zero-sum game

D. stabilizing the economy, reducing budget deficits, and expanding credit availability

The economic transition process involves which one of the following key reform measures to promote economic development. A. supporting state-owned companies B. expanding state ownership of economic resources C. increasing barriers to trade and investment and establishing fixed currency exchange rates D. stabilizing the economy, reducing budget deficits, and expanding credit availability E. allowing prices to reflect central planning

D. Through outside sources such as the World​ Bank, IMF, and the Asian Development Bank

The governments of many countries in transition cannot afford all the investment required to develop and upgrade their infrastructure​ system, including​ highways, bridges, and rail networks. Where can these countries find financial​ resources? A. Through the​ Export-Import Bank of the U.S. B. Through direct government spending C. Through the World Trade Organization D. Through outside sources such as the World​ Bank, IMF, and the Asian Development Bank E. Through their central banks and financial institutions

C. Competition pressures companies to lower prices in order to maintain sales levels.

The international product life cycle theory follows the path of a good through its life cycle in order to determine where it will be produced. Which one of the following BEST defines the standardized product​ stage? A. The product begins generating sales in developing nations. B. Exports begin to account for an increasingly greater share of total product sales. C. Competition pressures companies to lower prices in order to maintain sales levels. D. The exact level of demand in the domestic market is highly uncertain. E. Both domestic and international markets become fully aware of the product and its benefits

B. Competition pressures companies to lower prices in order to maintain sales levels.

The international product life cycle theory follows the path of a good through its life cycle to determine where it will be produced. Which one of the following BEST defines the standardized product​ stage? A. The exact level of demand in the domestic market is highly uncertain. B. Competition pressures companies to lower prices in order to maintain sales levels. C. Both domestic and international markets become fully aware of the product and its benefits. D. It means keeping production where initial research and development occurred. E. As exports begin to account for an increasingly greater share of total product​ sales, the innovating company introduces production facilities in the countries with the highest demand.

E. zero-sum game

The main problem with mercantilism is that it views trade as​ a(n) ________. A. limit to exports B. increase to the deficit C. threat to​ nation's wealth D. positive sum game E. zero-sum game

D. Trade​ surpluses, government​ intervention, and colonialism

The practice of mercantilism rested on three essential pillars. Which of the following sets identify these three​ pillars? A. Colonialism, maximize​ production, and product standardization B. Free​ trade, colonialism, and strict government intervention C. Free​ trade, government​ intervention, and colonialism D. Trade​ surpluses, government​ intervention, and colonialism E. Free​ trade, subsidizing​ export, and banning imports

E. Trade between the​ world's high-income economies

There has been a persistent pattern of merchandise trade among nations. Trade between which economies of the world represents the highest level of total world merchandise​ trade? A. Trade between​ high-income economies nations and​ low-income economies nations B. Trade between the​ world's low-income economies C. Trade between​ low-and middle-income nations D. Trade between the​ world's middle-income economies E. Trade between the​ world's high-income economies

E. corruption

The​ well-publicized Enron corporation case is an example of​ ________. A. environmental hazard B. human rights violation C. antitrust violation D. product safety violation E. corruption

A. apply political pressure on other nations to get them to relax their restrictions on inbound investments

To encourage outbound​ FDI, home-country governments can​ ________. A. apply political pressure on other nations to get them to relax their restrictions on inbound investments B. offer insurance to cover the risks of investments at home C. offer tax breaks on profits earned in domestic markets or negotiate special tax rates D. grant loans to firms wishing to increase their investments at home E. apply differential tax rates

A. richest

Trade in services accounts for around 22 percent of total world trade. Although the importance of trade in services is growing for many​ nations, it tends to be relatively more important for the​ world's ___________ countries. A. richest B. emerging C. developing D. newly industrialized E. poorest

E. common law

Under​ ________, the justice system decides cases by interpreting the law on the basis of​ tradition, precedent, and usage. A. civil law B. theocratic law C. traditional law D. contractual law E. common law

D. Purchasing power parity

Using gross product figures to compare production across countries does not account for the different cost of living in each country. Which one of the following indicators helps in adjusting the GDP to reflect the cost of living in each​ country? A. Unreported transactions conducted in cash B. Consumption taxes C. Human development index D. Purchasing power parity E. Value added tax

B. Globalization and international mergers and acquisitions​ (M&A)

What are the two main drivers of FDI​ flows? A. Advancement of technology and the elimination of most of the trade barriers B. Globalization and international mergers and acquisitions​ (M&A) C. Reduction of shipping costs and liberalization of trade D. Increase in export worldwide and privatization E. Increase in the per capita income and purchasing power

A. To control the balance of payments and to obtain resources and benefits

What are the two main reasons that underlie a host​ government's intervention in FDI flows by international​ companies? A. To control the balance of payments and to obtain resources and benefits B. To prohibit companies from removing profits to their home countries and boost export C. To acquire technology and employment D. To control the balance of payments and labor laws E. To obtain resources and benefits and to conserve foreign exchange reserve

E. Trade promotion and trade restriction

What two most common methods do governments use to intervene in international​ trade? A. Foreign trade zones and embargoes B. Export financing and embargoes C. Special government trade agencies and regulatory controls D. Subsidy and currency controls E. Trade promotion and trade restriction

A. globalization of production

When IBM USA sources computer materials from different locations around the world to reduce the cost of​ production, this is called​ ________. A. globalization of production B. globalization of markets C. Commercialization of products and services D. technological innovation E. franchising

A. following clients

When Mercedes opened its first international car plant in Tuscaloosa​ County, Alabama,​ automobile-parts suppliers also moved to the area from Germanylong dash bringing with them additional investment in the millions of dollars. This is an example of​ _____________. A. following clients B. rationalized production C. customer knowledge D. control E. following rivals

A. Policy changes

When PepsiCo first entered the Indian​ market, the company was confronted with a new government mandate to restrict ownership to domestic companies or limit ownership by​ non-domestic firms to a minority stake. This new mandate restricted​ PepsiCo's ownership of local companies to 49 percent when it first entered India. What type of political risk has affected​ PepsiCo? A. Policy changes B. Property seizure C. Conflict and violence D. Local content requirements E. Terrorism and kidnapping

A. income receipts

When a U.S.​ company's subsidiary abroad remits profits back to the parent in the United​ States, it is recorded as​ ________. A. income receipts B. current account deficit C. import services D. income payment E. export of services

D. local content requirements

When a certain portion of the end product must consist of domestically produced goods or that a certain portion of the final cost of a product must come from domestic​ sources, this is the result of​ _________. A. a compound tariff B. quota C. a tariff D. local content requirements E. administrative delay

C. the factor proportions theory

When a country specializes in producing and exporting goods using the factors of production that are most abundant and thus cheapest - not the goods in which it is most productive - this is an example of​ ________. A. free trade B. trade surplus C. the factor proportions theory D. the Leontief paradox E. the comparative advantage theory

C. Foreign direct investment

When a​ company's specialized knowledge is embodied in its​ employees, which one of the following options would you recommend the company to take to exploit a market​ opportunity? A. Export B. Portfolio investment C. Foreign direct investment D. Charging professional fees E. Licensing

D. conflict and violence

When local social unrest in a country causes disturbances that impair a​ company's ability to manufacture and distribute​ products, obtain materials and​ equipment, and threatens the lives of its​ employees, the company is facing a​ ________ risk. A. terrorism and kidnapping B. policy changes C. local content requirements D. conflict and violence E. property seizure

A. Mercantilism

Which international trade theory suggests that nations should accumulate financial​ wealth, usually in the form of​ gold, by encouraging exports and discouraging​ imports? A. Mercantilism B. Factor proportions theory C. Absolute advantage D. Comparative advantage E. International product life cycle

D. Common law

Which legal system reflects interpretation of the law with reference to these three​ characteristics: tradition,​ precedent, and​ usage? A. Traditional law B. Contractual law C. Theocratic law D. Common law E. Civil law

B. GNI

Which measure does the World Bank use to classify a​ country's level of​ development? A. GDP B. GNI C. PPP D. HDI E. GNP

B. The pattern of imports and exports that occurs in the absence of trade barriers

Which of the following BEST describes free​ trade? A. The elimination of all export subsidies B. The pattern of imports and exports that occurs in the absence of trade barriers C. The elimination of import tariff D. The elimination of import quotas E. The pattern of export that occurs in the absence of export controls

B. HDI

Which of the following measures the quality of life in different​ countries? A. GNP B. HDI C. GNI D. GDP E. PPP

B. There are gains to be made from specialization and increasing economies of scale

Which of the following statements BEST describes the new trade​ theory? A. The theory states that, as specialization and output increase, companies can increase the unit costs of production B. There are gains to be made from specialization and increasing economies of scale C. Gains made as a result of increasing economies of scale will increase the cost of productions and thus the price to buyers, which will force the competition to increase their prices as well. D. The Theory emphasizes productivity rather than a nation's resources The theory does not assume any role of government intervention

C. It's the ability of a nation to produce a good more efficiently than any other nation.

Which one of the following describes the theory of absolute​ advantage? A. International trade should be banned or restricted by tariffs and quotas. B. It allows the flow of trade as dictated by the central planning committee. C. It's the ability of a nation to produce a good more efficiently than any other nation. D. A nation with an absolute advantage is less efficient than other nations in the production of a particular product. E. It allows for government intervention in international trade.

A. military and religious involvement in politics

Which one of the following factors is included in the assessment of political risk​ levels? A. military and religious involvement in politics B. copyright and patent protection laws C. inflation rates of the local currency D. a multinational company management team E. frequency of national elections

B. Financial assistance intended to assist domestic companies in fending off international competitors

Which one of the following government intervention instruments is considered an instrument of trade promotion and not trade​ restriction? A. Regulatory controls or bureaucratic rules designed to impair the flow of imports into a country B. Financial assistance intended to assist domestic companies in fending off international competitors C. Limit of the amount of goods allowed to enter the country D. A complete ban on trade (imports and exports) in one or more products with a particular country E. Government tax levied on a product as it enters or leaves a country

A. Political instability

Which one of the following has​ Russia's annexation of the​ Ukraine's peninsula of Crimea​ created? A. Political instability B. Tense uneasiness between​ Russia's government and its business community C. Corrupt law enforcement D. Political reforms E. Safeguard property rights

A. Countries produce and export goods which require resources that are abundant and import goods that require resources in short supply.

Which one of the following is TRUE with regard to the factor proportions​ theory? A. Countries produce and export goods which require resources that are abundant and import goods that require resources in short supply. B. A nation has the ability to produce a good more efficiently than any other nation. C. Nations should accumulate financial​ wealth, usually in the form of​ gold, by encouraging exports and discouraging imports. D. A​ nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade. E. Trade is still beneficial even if one country is less efficient in the production of two​ goods, as long as it is less inefficient in the production of one of the goods.

C. Greater choice of goods and services

Which one of the following is a benefit of international​ trade? A. Increased exports B. Increased imports C. Greater choice of goods and services D. Trade surplus E. World peace

C. Firm​ strategy, structure, and rivalry

Which one of the following is a component of​ Porter's diamond? A. Comparative advantage B. First-mover advantages C. Firm​ strategy, structure, and rivalry D. Geography E. International product life cycle

E. Grant loans to firms wishing to increase their investments abroad.

Which one of the following is a home country foreign direct investment​ (FDI) promotion? A. Increase taxes on profits earned abroad or negotiate special tax treaties. B. Apply differential tax rates. C. Offer insurance to cover the risks of investments at home. D. Apply political pressure on other nations to get them to increase their restrictions on inbound investments. E. Grant loans to firms wishing to increase their investments abroad.

D. partnerships

Which one of the following is a method companies can use to manage political risk by incorporating risk into business​ strategies, a ploy known as​ adaptation? A. management of currency exchange rates B. development of the​ company's own financial strategy C. increasing local debt D. partnerships E. standardization

E. Balance of payments

Which one of the following is a national accounting system that records all receipts coming into the nation and all payments to entities in other​ countries? A. Current account B. Balance sheet C. Income statement D. National budget E. Balance of payments

A. Protecting jobs

Which one of the following is a political motive behind government intervention in​ trade? A. Protecting jobs B. Pursuing strategic trade policy C. Promoting better relationships with other countries D. Protecting infant industries E. Generating revenue for the government

C. Quota

Which one of the following is a restriction on the amount​ (measured in units or​ weight) of a good that can enter or leave a country during a certain period of​ time? A. Tariff B. Compound tariff C. Quota D. Local content requirement E. Administrative delay

C. Political instability

Which one of the following is a result of​ Russia's annexation of the​ Ukraine's peninsula of​ Crimea? A. Tense uneasiness between​ Russia's government and its business community B. Safeguard property rights C. Political instability D. Political reforms E. Corrupt law enforcement

B. Patent

Which one of the following is a right granted to the inventor of a product or process that excludes others from​ making, using, or selling the​ invention? A. Contract B. Patent C. Copyright D. Licensing E. Trademark

B. Caste system

Which one of the following is a system of social stratification in which people are born into social​ ranking, with no opportunity for social​ mobility? A. Social group B. Caste system C. Class system D. Gender E. Family system

D. Countervailing duty

Which one of the following is an additional tariff placed on an imported product that a nation believes is receiving an unfair​ subsidy? A. Ad valorem tariff B. Antidumping duty C. Tariff quota D. Countervailing duty E. Compound tariff

D. An acquisition generally provides the investor with an existing​ plant, equipment, and personnel.

Which one of the following is an advantage of merger and​ acquisitions? A. The acquiring firm may suffer from the reputation the existing company has built up over the years. B. There is an opportunity to build a new manufacture from the ground up. C. There is little brand recognition of the existing firm. D. An acquisition generally provides the investor with an existing​ plant, equipment, and personnel. E. The relationship between management and labor in the acquired company may complement the union situation in the purchasing company.

D. Secret formula for making​ Coca-Cola

Which one of the following is an example of intellectual​ property? A. A video game system B. A list of customers who buy computer software C. A manufacturing robot D. Secret formula for making​ Coca-Cola E. A​ machine-tool manufacturer

C. Providing tax breaks and product price support

Which one of the following is considered government​ subsidy? A. Providing working capital guarantee program B. Helping companies finance their export activities C. Providing tax breaks and product price support D. Advertising in other countries to promote the​ nation's export E. Offering credit insurance

D. Require that certain technologies be transferred to local business

Which one of the following is considered host country performance​ demand? A. Require that portion of the output must be exported B. Prohibit or restrict the nondomestic company from removing profits to its home country C. Require that a portion of the​ product's content meets international guidelines for recyclability D. Require that certain technologies be transferred to local business E. Require nondomestic investors to hold less than 50 percent stake in local firms

B. International product life cycle theory

Which one of the following is limited in its power to explain why companies choose foreign direct investment over other forms of market​ entry? A. Eclectic theory B. International product life cycle theory C. Market imperfections​ (internalization) D. Specialized knowledge E. Market power

D. Migrant worker

Which one of the following is the largest contributor to unemployment in​ China? A. Relationship with Taiwan B. Poor relation with ethnic minority C. Factory worker strikes D. Migrant worker E. China's regaining control of Hong Kong

E. Free trade

Which one of the following is the pattern of imports and exports that occurs in the absence of trade​ barriers? A. Normal trade relations B. Trade balance C. Trade surplus D. Most favored nation status E. Free trade

A. Foreign direct investment

Which one of the following is the purchase of physical assets or a significant amount of the ownership​ (stock) of a company in another country in order to gain a measure of management​ control? A. Foreign direct investment B. Countertrade C. Portfolio investment D. Privatization E. Outsourcing

D. Mercantilism adopts a​ zero-sum game as a trade policy.

Which one of the following is​ mercantilism's inherent​ flaw? A. Mercantilism minimizes exports and maximizes imports. B. Mercantilism supports the increase of imports. C. Mercantilism adopts trade deficit policy. D. Mercantilism adopts a​ zero-sum game as a trade policy. E. Mercantilism does not support government intervention.

A. Nationalization

Which one of the following means government takeover of an entire​ industry? A. Nationalization B. Expropriation C. Confiscation D. Deregulation of the economy E. Economic transitions

B. Adaptation

Which one of the following means incorporating risk into business​ strategies, often with the help of local​ officials? A. Political influence B. Adaptation C. Information gathering D. Property seizure E. Policy changes

B. Nike

Which one of the following multinational companies​ (cited by the​ text) had a case publicized by human rights and labor groups investigating charges of worker​ abuse? A. Enron B. Nike C. Marriott International D. Starbucks E. Levi-Strauss

C. Starbucks

Which one of the following multinational companies​ (cited by the​ text) works hard to operate in a socially responsible manner by trying to ease the plight of citizens in countries where their product is produced and sells fair trade​ products? A. Levi-Strauss B. Enron C. Starbucks D. Boisset Family Estates E. Timberland

E. Comparative advantage

Which one of the following occurs when a country is unable to produce a good more efficiently than other​ nations, but produces the good more efficiently than it does any other​ good? A. International product life cycle B. Absolute advantage C. Mercantilism D. Factor proportions theory E. Comparative advantage

B. Related and supporting industries

Which one of the following of​ Porter's diamond components supports the concept that companies that belong to a​ nation's internationally competitive industries do not exist in​ isolation, rather, supporting industries spring up to provide the inputs required by the​ industry? A. Firm​ strategy, structure, and rivalry B. Related and supporting industries C. Demand conditions D. Factor conditions​ (basic factors) E. Factors conditions​ (advanced factors)

A. World Trade Organization

Which one of the following organizations was created as a result of the 1986 Uruguay Round of negotiation to implement the GATT​ agreement? A. World Trade Organization B. International Monetary Fund C. World Bank D. World Health Organization E. Overseas Private Investment Corporation

C. Freidman view

Which one of the following philosophies of business ethics and social responsibility support the view that a​ company's sole responsibility is to maximize profits for its owners​ (or shareholders) while operating within the​ law? A. Righteous moralist view B. Utilitarian view C. Freidman view D. Cultural relativist view E. Civil law view

C. A​ nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade.

Which one of the following represents the core of the national competitive advantage​ theory? A. A country may dominate in the export of a certain product because it has a​ home-based firm that has acquired a​ first-mover advantage. B. Countries produce and export goods that require resources that are abundant and import goods that require resources in short supply. C. A​ nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade. D. International trade is a​ positive-sum game. E. Trade is still beneficial even if one country is less efficient in the production of two​ goods, as long as it is less inefficient in the production of one of the goods.

D. They are laws designed to provide consumers with a wide variety of products at fair prices.

Which one of the following statements BEST describes antitrust​ regulations? A. They allow companies to fix prices in order to increase profits. B. They eliminate competition among companies. C. They promote monopolies. D. They are laws designed to provide consumers with a wide variety of products at fair prices. E. They provide consumers with a wide variety of products at high prices.

B. It is a legal tradition based on religious teachings.

Which one of the following statements BEST describes the theocratic legal​ system? A. It is a legal system that is based on a detailed set of written rules and statutes that constitute the legal code. B. It is a legal tradition based on religious teachings. C. It is the​ world's oldest and most common legal tradition. D. The justice system decides cases by interpreting the law on the basis of​ tradition, precedent, and usage. E. Each law may be interpreted somewhat differently in each case to which it is applied.

D. International trade is an important engine for job creation.

Which one of the following statements BEST explains the benefits of international trade to​ nations? A. International trade helps countries to limit its import in order to protect its infant industries. B. International trade protects countries increase the demand of its own domestic products. C. International trade increases tariff charges on imported goods to generate more revenue for the country. D. International trade is an important engine for job creation. E. International trade helps countries limit access to products it cannot produce

D. It is the ability of a nation to produce a good more efficiently than any other nation.

Which one of the following statements BEST explains the theory of absolute​ advantage? A. Countries should produce and export goods that require resources that are abundant and import goods that require resources in short supply. B. A company will begin by exporting its product and later undertake foreign direct investment as the product moves through its life cycle. C. The accumulation of wealth depends on increasing a​ nation's trade surplus. D. It is the ability of a nation to produce a good more efficiently than any other nation. E. The value of a​ nation's exports should be greater than the value of its imports.

A. Nations should increase their wealth by increasing their exports and minimizing their imports.

Which one of the following statements BEST expresses a pillar of ​ mercantilism? A. Nations should increase their wealth by increasing their exports and minimizing their imports. B. Trade should be allowed to flow as dictated by market​ forces, not by government intervention. C. International trade is a​ positive-sum game. D. Governments acquire wealth through unrestrictive trade policies. E. Nations should trade with other nations to obtain the goods they​ need, but​ don't produce.

C. Factor proportions theory states that countries produce and export goods that require resources​ (factors) that are abundant and import goods that require resources in short supply.

Which one of the following statements about factor proportion theory is​ TRUE? A. Factor proportions theory is compatible with the theory of comparative advantage. B. Factor proportions theory breaks a​ nation's resources into two​ categories: agricultural and financial. C. Factor proportions theory states that countries produce and export goods that require resources​ (factors) that are abundant and import goods that require resources in short supply. D. Factor proportions theory is similar but complementary to the theory of comparative advantage. E. The theory resulted from the research of two​ economists, Milton Friedman and John Maynard​ Keynes, and is therefore sometimes called the​ Friedman-Keynes theory.

A. Market imperfections theory

Which one of the following theories states that when an imperfection in the market makes a transaction less efficient than it could​ be, a company will undertake FDI to internalize the transaction and thereby remove the​ imperfection? A. Market imperfections theory B. International product life cycle theory C. Ownership advantage theory D. Market power theory E. Eclectic theory

E. Market imperfections​ (internalization)

Which one of the following theories stipulates tight control when the​ firm's concern is controlling the​ company's activities? A. Market power B. Eclectic theory C. Absolute advantage D. International product life cycle theory E. Market imperfections​ (internalization)

C. Comparative advantage

Which one of the following trade conditions occurs when a country is unable to produce a good more efficiently than other​ nations, but produces the good more efficiently than it does any other​ good? A. International product life cycle B. Factor proportions theory C. Comparative advantage D. Mercantilism E. Absolute advantage

B. New trade

Which one of the following trade theories indicates that government may play a role in assisting its home companies and that government involvement has always been widely accepted in undertakings such as space exploration for national security​ reasons? A. Comparative advantage B. New trade C. Product life cycle D. Absolute advantage E. Leontief paradox

A.Local content requirements

Which political risk is indicated when the laws of the foreign country stipulate a specified amount of goods or services be supplied by produce in the domestic​ market? A.Local content requirements B. Policy change C. Antitrust laws D. Confiscation E. Property seizure

C. Customs

Which​ agencies/departments/organizations in most countries record the destination of​ exports, the source of​ imports, and the physical quantities and values of goods crossing their​ borders? A. Trade Organizations B. UN C. Customs D. Commerce Department E. World Trade Organization

B. Mercantilism

​____________ advocates that nations should accumulate financial​ wealth, usually in the form of​ gold, by encouraging exports and discouraging imports. A. Comparative advantage B. Mercantilism C. Collectivism D. Market economy E. Absolute advantage theory

E. The product life cycle theory

​________ says that a company will begin by exporting its product and later undertake foreign direct investment. The theory also says​ that, for a number of​ reasons, a​ country's export eventually becomes its import. A. The new trade theory B. Absolute advantage C. Leontief paradox D. First mover advantage E. The product life cycle theory

E. Trademarks

​__________ are words or symbols that distinguish a product and its manufacturer. A. Contracts B. Copyrights C. Licensing D. Patents E. Trademarks

C. ad valorem tariff

​A(n) ________ is levied as a percentage of the stated price of an imported product. A. compound tariff B. import quota C. ad valorem tariff D. specific tariff E. transit tariff

B. foreign direct investment

​Acer, headquartered in Singapore but founded in​ Taiwan, manufactures personal computers and computer components. Just 20 years after it opened for​ business, Acer had spawned 10 subsidiaries worldwide and had become the dominant industry player in many emerging markets. This is an example of​ ____________. A. global financial system B. foreign direct investment C. portfolio investment D. exporting E. outsourcing

C. Slower economic development because of foreign investors being more reluctant to invest in the country

​Confiscation, expropriation, and nationalization can have an impact on the economic development of the country. Which one of the following reflects the​ long-term impact on the​ country's economic​ development? A. Achieving a wide range of​ political, social, and economic objectives by taking complete control of the private industries B. Saving jobs by having the government provide the necessary support to the employees of these companies C. Slower economic development because of foreign investors being more reluctant to invest in the country D. Governments' ownership of industries ensuring that consumers will receive the lowest price possible of goods and services E. Boosting currency reserves

B. Newly industrialized countries

​________ are the countries that have recently increased the portion of their national production and exports derived from industrial operations. A. Developed countries B. Newly industrialized countries C. Developing countries D. Communist nations E. Emerging markets

D. Foreign Corrupt Practices Act

​________ forbids U.S. companies from bribing government officials or political candidates in other nations​ (except when a​ person's life is in​ danger). A. Antitrust laws B. Product safety laws C. Intellectual property laws D. Foreign Corrupt Practices Act E. U.S. copyright laws

E. Confiscation

​________ is the forced transfer of assets from a company to the government without compensation. A. Nationalization B. Expropriation C. Privatization D. Deregulation of the economy E. Confiscation

C. Dumping

​________ is when companies export a product at a price that is either lower than the price normally charged in its domestic market or lower than the cost of production. A. Tariff-quota B. A compound tariff C. Dumping D. Currency controls E. A subsidy

E. Levi-Strauss

Which one of the following multinational​ companies, as cited by the​ text, has pioneered the use of practical codes to control working conditions at​ contractors' facilities? A. Nike B. Starbucks C. Marriott International D. Enron E. Levi-Strauss

A. born global firm

A company that adopts a global perspective and engages in international business from or near its inception is known as​ a(n) ____________. A. born global firm B. multinational corporation C. international service representative D. custom broker E. export management company

E. the benefit of serving the customers with an adapted product may outweigh the benefit of a standardized product

A firm is less likely to offer a standardized product globally when​ __________. A. selling seasonal products B. there is a need to better serve the customer in a small market C. selling industrial products D. avoiding paying high tariff charges E. the benefit of serving the customers with an adapted product may outweigh the benefit of a standardized product

B. international sales

A firm that produces a product with universal but seasonal appeal and is trying to level its income stream and reduce or eliminate wide variations in domestic sales can supplement its domestic sales with​ ________. A. a reduction of overhead costs during the off season B. international sales C. an increase in its production capacity D. hiring more sales staff E. an introduction of new product lines

E. Power distance

According to​ Hofstede, which one of the following cultural dimensions conveys the degree to which a culture accepts social inequality among its​ people? A. Masculinity versus femininity B. Indulgence versus restraint C. Uncertainty avoidance D. Individualism versus collectivism E. Power distance

B. Social stratification

An important aspect of social structure is the way a culture divides its population according to status. Which one of the following terms refer to the process of ranking people into social layers or​ class? A. Socialism B. Social stratification C. Cost of living D. Social association E. Family and genders

B. National Sovereignty

A​ nation's ability to enter into binding international agreements is referred to as having​ ________. A. its own culture and values B. National Sovereignty C. Liberalism D. National Security E. Patriotism

C. illiteracy rates

Countries with poorly educated populations attract the lowest paying manufacturing jobs. International companies searching for untapped markets or new factory locations should​ consider, among other​ factors, the​ ________. A. cultural diffusion B. population density C. illiteracy rates D. cultural traits E. purchasing power statistics

A. national sovereignty

Critics of the WTO and the IMF believe that these global​ organizations' policies cause the erosion of​ ________. A. national sovereignty B. a country's financial system C. the legal system of the country D. a country's culture values E. local labor laws

C. Introduced new brands from its Mexican subsidiary

For Frito Lay to increase sales of its products in the​ U.S., the company had to appeal to the Latino​ market, which is a huge subculture of 46 million people. What did the company​ do? A. Increased its retail distribution to an ethnic community B. Expanded its advertising campaign primarily in rural areas C. Introduced new brands from its Mexican subsidiary D. Eliminated some of the flavors that did not produce an increase in sales E. Reduced its prices to appeal to​ low-income families.

E. stem the English invasion and preserve the national culture

French laws limit the use of English in product packaging and store front signs to​ ________. A. develop a​ customer's loyalty B. develop strong cultural attraction C. avoid committing language errors D. force tourists to learn French E. stem the English invasion and preserve the national culture

C. Lacked the power to enforce world trade rules

GATT​ _______________, which led to the creation of the​ WTO? A. Was unable to lower the subsidies on all products B. Was unable to further reduce tariffs charges C. Lacked the power to enforce world trade rules D. was unable to clearly define intellectual property rights E. lacked the power to promote free trade

E. is small or becoming saturated

Globalization of markets can benefit companies that sell a global product and creates new market opportunities abroad especially if their home market​ _________. A. can sustain higher prices B. is large and growing C. is diverse D. can offer a consistent increase in demand E. is small or becoming saturated

E. integrating into the global economy

Globalization supporters argue that developing countries can boost incomes for its poorest citizens and reduce income inequality by​ ________. A. reducing trade deficit B. reforming labor laws C. accelerating privatization process D. strengthening local intellectual property rights E. integrating into the global economy

D. openness to international trade increases national production

Globalization supporters argue that globalization increases wealth and efficiency in both developed and underdeveloped nations because of​ ______________. A. reform of labor laws B. reduction in threats between countries C. corporate foreign market entry strategy D. openness to international trade increases national production E. increased tariffs

E. democracy

Globalization supporters argue that the people of many nations have become more​ educated, better​ informed, and more empowered. Supporters say globalization has been instrumental in spreading​ ________. A. lax environment laws B. wage equality C. foreign values D. economic reliance E. democracy

E. Ensure product​ packaging, design, and advertising appeal to the different ethnic groups in China

Imagine you work for a U.S. company that sells its products to​ China, which the company considers one of its important growing markets. Which one of the following would be the most successful approach to increase​ sales? A. Forego any changes or modifications to product​ design, packaging, and advertisements to cut costs and be able to compete B. Sell the products as is only to the American population living in China because they are familiar with U.S. products C. Find another market that similar to the U.S. culture and use English D. Make only necessary modifications that will be accepted by the national culture E. Ensure product​ packaging, design, and advertising appeal to the different ethnic groups in China

A. Centrally planned economy

In which one of the following economic systems does the government own a​ nation's land,​ factories, and other economic​ resources? A. Centrally planned economy B. Laissez-faire economy C. Market economy D. Mixed economy E. Liberalism

E. Mixed economies

In which one of the following economies are​ resources, such as​ land, factories, and other economic​ resources, equally split between private and government​ ownership? A. Centrally planned economies B. Market economies C. Laissez-faire economies D. Socialism economies E. Mixed economies

C. Totalitarianism

In which one of the following political systems do individuals govern without the support of the​ people, tightly control​ people's lives, and do not tolerate opposing​ viewpoints? A. Collectivism B. Theocratic totalitarian C. Totalitarianism D. Communism E. Democracy

E. centrally planned economies

In​ _________, the government makes nearly all​ economy-related decisions - long dash including who produces what and what the prices of​ products, labor, and capital will be. A. laissez-faire economics B. market economies C. capitalism D. mixed economies E. centrally planned economies

D. Companies recognize that healthy future markets require a sustainable approach to the business expansion for future local market for their goods and services.

It is evident that most multinational firms support environmental laws that are practical for which one of the following​ reasons? A. Companies want to choose​ low-cost resources over environmental concerns. B. Companies want to introduce a new product line. C. Openness and globalization lessen environmental standards. D. Companies recognize that healthy future markets require a sustainable approach to the business expansion for future local market for their goods and services. E. It helps the local economy and their image.

A. knowledge application and analysis

Jason has learned about some​ decision-making tools in his business class and is now using those tools in his workplace. Jason is utilizing the employability skill known as​ _____________. A. knowledge application and analysis B. social responsibility C. communication D. globalization E. critical thinking

B. High power distance

Local culture is important for a company exploring the international market for its products. A great example of this is the export of luxury​ items, such as expensive jewelry and​ high-priced cars, to a wealthy upper class which factors significantly in which one of the following cultural​ dimensions? A. High individualism B. High power distance C. Low power distance D. Collectivism E. Low masculinity verses femininity

E. future

One of the​ Kluckhohn-Strodtbeck Framework six dimensions asks if people focus on past​ events, on the​ present, or on future implications of their actions. Under this dimension the Japanese focus on the​ ________. A. past B. present C. past linked with the present D. future channeling the past E. future

B. accelerate the use of​ technology, email, video​ conferencing, the​ Internet, and intranets.

Operating across borders and time zones could complicate the job of coordinating and controlling international business activities especially for smaller firms. To operate more​ efficiently, international companies tend to​ ________. A. send local staff on a​ long-term assignment in the field offices to provide immediate solutions for operation problems B. accelerate the use of​ technology, email, video​ conferencing, the​ Internet, and intranets. C. travel to the business destination more often than before to ensure personal communication D. invite the overseas staff to visit the headquarters a lot more often to ensure the smoothness of communication between headquarters and field staff E. utilize creative travel programs such as frequent flyers to cut cost of travel

B. an increase in the wage gap between​ white-collar and​ blue-collar occupations in rich nations

Opponents of globalization argue that freer trade and​ companies' continuous tendency to reduce costs has led companies to move into lower wage cost locations. This has resulted in​ ________. A. raising prices of manufactured goods B. an increase in the wage gap between​ white-collar and​ blue-collar occupations in rich nations C. a direct impact on the​ country's exchange rate system D. currency devaluation E. an increase in tariff charges on imported goods

D. Collectivism

Political economies of nations differ in the degree of​ openness, individualism,​ equality, transparency, and flexibility. Which one of the following political economic systems stresses the primacy of the group over individual​ needs? A. Individualism B. Totalitarian system C. Capitalism D. Collectivism E. Theocratic totalitarianism

A. sending manufacturing jobs abroad

Some of the critics of globalization argue that the relentless pursuit of​ low-cost goods has led to​ ________. A. sending manufacturing jobs abroad B. devaluation of the value of the dollar C. direct impact on the balance of trade D. an increase consumer prices E. stricter regulatory laws

A. The level of embracing globalization by developing countries

The globalization impact on the gap between rich and poor nations varies. One group of​ nations, such as China and​ India, is closing the gap with rich economies while a second group of poor countries is falling further​ behind, such as most countries in Africa. On closer inspection this is due to which one of the​ following? A. The level of embracing globalization by developing countries B. The industrialization and modernization level C. Convergence of consumer lifestyle D. A​ country's international monetary policy E. Technological advances in communications

E. close factories in​ high-wage-area developed nations and move them to​ low-wage developing countries

The opponents of globalization argue that freer trade and investment allows international companies to​ ________. A. eliminate tariff charges on imported goods B. limit their international market entry strategy to export C. increase production in their local market to supply the international market D. focus their foreign investment only in the highly developed countries E. close factories in​ high-wage-area developed nations and move them to​ low-wage developing countries

E. penalize offending nations and the power to settle trade disputes

The power of the WTO that sets it apart from the GATT is its capability to​ ______________. A. maintain fair trade policies B. help the free flow of trade among its member states C. lower the trade barriers D. increase the number of member nations E. penalize offending nations and the power to settle trade disputes

D. give more protection to​ copyrights, trademarks, and patents

The revision in 1994 of the GATT clearly defined intellectual property rights in order to​ ________. A. promote free trade B. lower subsidies for agricultural products C. further reduce average tariffs on merchandise trade D. give more protection to​ copyrights, trademarks, and patents E. facilitate the sharing of trade secrets

E. Being able to alter behavior when working with people from other cultures

Which one of the following methods will help managers develop a global​ mindset? A. Maintaining distance in personal relationships with members of other cultures B. Focusing on aesthetics C. Educating members of other cultures about​ one's own D. Believing​ one's own culture is superior to others E. Being able to alter behavior when working with people from other cultures

B. based heavily on trust so as not to​ "lose face"

The​ Kluckhohn-Strodtbeck Framework dimension asks whether a people are easily controlled and not to be​ trusted, or whether they can be trusted to act freely and responsibly. On this​ dimension, this framework determined that business dealings between Japanese companies are​ ______________. A. a reflection of the rising crime rate in Japan is the breakdown of trust within the society. B. based heavily on trust so as not to​ "lose face" C. based heavily on distrust so as not to​ "lose face" D. flexible in breaking agreements once an agreement has been made E. not interested in forming​ long-term relationships to avoid keeping business commitment

A. International Monetary Fund

The​ ____________ is an agency that was created to regulate fixed exchange rates and to enforce the rules of the international monetary​ system? A. International Monetary Fund B. World Bank C. NAFTA D. Export-Import Bank E. Central Bank

D. Any commercial transaction that crosses the borders of two or more countries

What is international business? a. All exported products b. Born global firms c. A multinational corporation that has direct investment d. Any commercial transaction that crosses the borders of two or more countries e. Small firms that sell international products

C. India

Which country is a classic example of a caste​ culture? A. France B. Canada C. India D. Germany E. United States

B. It lacked the power to enforce trade rules.

Which of the following is a major flaw of the original​ GATT? A. It led to the increase of nontariff trade barriers. B. It lacked the power to enforce trade rules. C. It enforced strict trade rules on participating nations. D. It did not make enough progress to reduce agriculture subsidy. E. It did not reduce trade barriers low enough.

A. Standardizing certain marketing activities

Which one of following options helps companies reduce costs when they sell consumer goods​ globally? A. Standardizing certain marketing activities B. Outsourcing most of their business C. Hiring international staff to have better control and operate more efficiently D. Receiving payment in U.S. dollars only E. Considering foreign direct investment

B. Lack of​ and/or denying citizens constitutional​ guarantees; restricts political representations

Which one of the following are features of​ totalitarianism? A. Freedom to organize political parties B. Lack of​ and/or denying citizens constitutional​ guarantees; restricts political representations C. Election of representatives by the people D. Minority​ rights; preserves peaceful coexistence among diverse groups E. Freedom of expression

B. The set of​ values, beliefs, and rules of society

Which one of the following best defines​ culture? A. The set of values and beliefs set by the government of any given society B. The set of​ values, beliefs, and rules of society C. The routine behavior of everyday life D. Gender equality and the rules it plays within the society E. Understanding​ one's own behaviors

E. Globalization of production

Which one of the following best describes the sourcing of key production​ inputs, such as raw materials or​ products, for assembly as well as the international outsourcing of​ services? A. Globalization of market B. Commercialization C. Customization D. Internationalization of products E. Globalization of production

B. Companies that adopt a global perspective and engages in international business from the start

Which one of the following can best describe born global​ firms? A. Multinational corporations B. Companies that adopt a global perspective and engages in international business from the start C. Companies that employ thousands of workers D. Custom brokers E. Import firms

D. Physical gestures

Which one of the following causes the most misunderstanding between people of different​ cultures? A. Language blunders B. Personal space C. Verbal communication D. Physical gestures E. Perception of time

C. failure to create economic value

Which one of the following contributed to the decline of planned​ economies? A. failure of governments to slow down the creation of new technologies B. satisfaction of consumer needs through the privatization of industries C. failure to create economic value D. incentives provided by the governments E. rapid growth of the world economies

B. Caste system

Which one of the following describes a system of social stratification in which people are born into a social​ ranking, with no opportunity for social mobility and are prejudged by their social ranking in this​ system? A. Cross cultural B. Caste system C. Cost of living D. Class system E. Social association

B. Property that results from​ people's intellectual talent and abilities

Which one of the following describes intellectual​ property? A. Includes patents and​ trademarks, which are often a​ firm's most valuable assets. B. Property that results from​ people's intellectual talent and abilities C. A word or symbol that distinguishes a product and its manufacturer. D. The legal rights to resources and any income they generate E. A right granted to the inventor of a product or process that excludes others from​ making, using, or selling the invention

A. Openness of international trade increases​ production, wealth, and efficiency.

Which one of the following is claimed by supporters of​ globalization? A. Openness of international trade increases​ production, wealth, and efficiency. B. Reduces threats and maintain peace among countries C. Promotes labor laws reforms D. Creates cultural awareness E. Stabilizes currency fluctuations

D. It eliminates jobs and lowers wages in developed nations.

Which one of the following is the main issue raised by critics of​ globalization? A. It generates labor market flexibility in developed nations. B. It increases the profit of multinational corporations in developing countries. C. It increases the consumer prices of goods. D. It eliminates jobs and lowers wages in developed nations. E. It increases wealth and efficiency in both developed and developing nations

A. Cultural relativist view

Which one of the following philosophies of business ethics and social responsibility support the view that a company should adopt local ethics wherever it operates because all belief systems are determined within a cultural​ context? A. Cultural relativist view B. Utilitarian view C. Freidman view D. Righteous moralist view E. Civil law view

C. Islam

Which one of the following religions prohibits the consumption of alcohol and​ pork? A. Christianity B. Judaism C. Islam D. Buddhism E. Hinduism

C. Judaism

Which one of the following religions prohibits the consumption of pork and​ shellfish? A. Christianity B. Islam C. Judaism D. Confucianism E. Hinduism

E. The study of how a country manages its affairs by using​ political, economic, and legal systems

Which one of the following statements BEST describes political​ economy? A. The​ structure, process, and activities by which a nation governs itself B. A system in which​ land, factories, and other economic resources are owned by the private sector and government C. Citizens elect individuals from their groups to represent their political view D. The belief that every aspect of​ people's lives must be controlled for a​ nation's political system E. The study of how a country manages its affairs by using​ political, economic, and legal systems

B. The majority of a​ nation's land,​ factories, and other economic resources are privately owned.

Which one of the following statements about a market economy is​ TRUE? A. All productive activities are owned by the state. B. The majority of a​ nation's land,​ factories, and other economic resources are privately owned. C. The growth rate of a market economy is less than that of a planned economy. D. Government regulations are a burden on commercial activities. E. Government incentives prompt producers to make​ high-quality goods.

D. Laws regarding the resolution of contractual disputes are either vague or nonexistence

Which one of the following statements about doing business in totalitarian countries is​ TRUE? A. People in power are bound by the courts' interpretations of the laws B. International companies are not allowed to pay bribes to government officials. C. The government has far less direct involvement D. Laws regarding the resolution of contractual disputes are either vague or nonexistence E. Possibly property seizure and policy changes can take place and require advance notice and compensation

D. Values are the​ ideas, beliefs, and customs to which people are emotionally attached.

Which one of the following statements best describe​ values? A. Values are a way of behaving in specific circumstances and are passed down through generations. B. Values are appropriate ways of​ behaving, speaking, and dressing. C. Values are the belief that​ one's own ethnic group or culture is superior to that of others. D. Values are the​ ideas, beliefs, and customs to which people are emotionally attached. E. Values are positive or negative​ evaluations, feelings, and tendencies that individuals harbor toward objects or concepts

B. Having more formal rules for regulating employee behavior

Which one of the following statements identifies culture with high uncertainty​ avoidance? A. Being more open to change and new ideas B. Having more formal rules for regulating employee behavior C. Tending to have weak system of rules and procedures in the society D. Tending to be entrepreneurial E. Suffering from higher employee turnover

B. The caste system is integral to the Hindu faith.

Which one of the following statements is TRUE about​ Hinduism? A. Hinduism was formed​ 4,000 years ago in Arabia. B. The caste system is integral to the Hindu faith. C. Hindus covet materialism. D. Hinduism recalls its founder and recognizes central authority. E. Hindus do not believe in reincarnation.

C. Class system

Which one of the following terms describes a system of social stratification in which personal ability and actions determine social status and​ mobility? A. Social groups B. Caste system C. Class system D. Gender E. Nuclear family

D. Falling barriers to trade and investment and technological innovation

Which one of these factors is a key driving force for globalization of market and​ production? A. The engagement of more small firms in international business B. The availability of international financing C. The​ WTO, which enforces the rules of international trade D. Falling barriers to trade and investment and technological innovation E. The advancement of the democratization process and economic reforms

B. Eliminating the bias inherent in ethnocentric thinking

While managers increasingly treat the world as a​ single, intercontinental​ marketplace, which one of the following helps managers avoid​ failure? A. Viewing the local cultural in terms of their own B. Eliminating the bias inherent in ethnocentric thinking C. Ensuring all key decisions are made in the home office D. Ignoring fundamental aspects of local culture E. Sending headquarters personnel to manage the overseas operation

B. Translation

You are working as an international manager for a major U.S. hotel chain in Russia. To provide good service for​ tourists, the local hotel staff put a sign in the hotel lobby that​ reads, "You are welcome to visit the cemetery where famous Russian​ composers, artists, and writers are buried daily except​ Thursday." What is wrong with this​ sign's text? A. Grammar B. Translation C. Spelling D. Sign should be in Russian E. Sign is not big enough

A. the Chinese​ don't tell you what they think

​American-born Thomas​ Kwan, who works for a health products company in​ Shanghai, China, says that a lot of expatriate managers fail in China because​ ________. A. the Chinese​ don't tell you what they think B. they do not greet the people appropriately C. they do not socialize with Chinese workers D. they do not speak the local language E. the Chinese are very explicit

B. guarantee a steady flow of its wood pulp

​Japan's largest paper​ company, Nippon​ Seishi, has decided to own huge forests and corresponding processing facilities in​ Australia, Canada, and the U.S. so it can​ ________. A. access highly skilled work force in​ Australia, Canada, and the U.S. B. guarantee a steady flow of its wood pulp C. avoid paying higher Japanese taxes D. avoid trade surplus with these countries E. access​ low-cost labor

A. Globalization

​________ is the name we give to the trend toward greater​ economic, cultural,​ political, and technological interdependence among national institutions and economies. A. Globalization B. Customization C. Cross-cultural communication D. Emerging economies E. Internationalization

E. Political economy

​________ is the study of how a country manages its affairs by using its​ political, economic, and legal systems. A. Secular totalitarianism B. Cultural trait C. Privatization D. Totalitarian system E. Political economy

C. Theocratic totalitarianism

​________ refers to a country where the political system is under the control of totalitarian religious leaders that govern according to religious principles. A. Democratic B. Totalitarian C. Theocratic totalitarianism D. Secular totalitarian E. Communism

A. Christianity

​__________ is the​ world's single largest religion. A. Christianity B. Buddhism C. Confucianism D. Judaism E. Islam

E. Subculture

​____________ is a group of people who share a unique way of life within a​ larger, dominant culture. A. Family B. Community C. Social groups D. Class system E. Subculture

B. English

​_____________ is the most widely used language of all web pages on the Internet. A. Arabic B. English C. Spanish D. Chinese E. French

A. Falling barriers to trade and investment and technological innovation

​________________are the two main forces that underlie the globalization of markets and production. A. Falling barriers to trade and investment and technological innovation B. The WTO role to enforce the rules of international trade and funding available from the IMF C. Falling barriers to trade and expansion of regional trade agreements D. The North American Free Trade Agreement​ (NAFTA) E. The leading role that the World Bank plays to provide financing and the dispute resolution methods of the IMF