Exam 1 Quiz Questions (ch. 1,2,4,5)

What is the term for a company's formal statement of the ethical priorities it expects all of its employees to follow?

code of ethics

A major difference between Buddhism and Hinduism is that unlike Hinduism, Buddhism:

does not support the caste system

A firm's internal stakeholders include customers, suppliers, and lenders.

false

An ethical system is a system of shared beliefs and rituals that are concerned with the realm of the sacred.

false

Democracy is a form of government that prohibits opposing political parties.

false

Judges under a civil law system have more flexibility than those under a common law system.

false

Since English is often thought of as the global language of business, it is not important for an American business executive to learn foreign languages.

false

The ethical obligations of a multinational corporation toward employment conditions, human rights, environmental pollution, and the use of power are always clear-cut.

false

The objective of the government in a command economy is to encourage free and fair competition between private producers.

false

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

false

The social organization of Western society tends to emphasize on:

individual achievement

Totalitarianism

is a form of government in which one person or political party exercises absolute control over all spheres of human life.

In a _____ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.

mixed

Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as:

norms

Which of the following refers to the values and norms that the employees of an organization share?

organizational culture

The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities.

power distance

In a pure market economy:

production is determined by the interaction of supply and demand.

Which of the following is NOT an example of intellectual property?

retail business

Containerization allows:

simplification of transshipment from one mode of transport to another

The idea that businesspeople should consider the social consequences of economic actions when making business decisions and that there should be a presumption in favor of decisions that have both good economic and social consequences is known as:

social responsibility

Building an organization culture that places a high value on ethical behavior requires incentive and reward systems.

true

Companies hope to lower their overall cost structure or improve the quality or functionality of their product offering through globalization of production.

true

Culture is not static.

true

Current trends indicate the world is moving toward an economic system that is more favorable for international business.

true

Education plays an important role, from an international business perspective, as a determinant of national competitive advantage.

true

Employees in a business often take their cue from business leaders, and if those leaders do not behave in an ethical manner, they might not either.

true

Facilitating payments are also known as speed money or grease payments.

true

In a business setting, noblesse oblige is taken to mean benevolent behavior that is the responsibility of successful enterprises.

true

International businesses that are ill-informed about the practices of another culture are likely to fail.

true

The World Bank promotes economic development via low interset loans for infrastructure projects.

true

The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market.

true

The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation.

true

When collectivism is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."

true

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states.

world trade organization

What is the main reason that managing an international business differs from managing a domestic business?

Because countries differ in their cultures and systems.

Which of the following is an example of ethnocentrism?

An American manager criticizes the cultural practices of Saudi Arabia, when he is sent there on business, because it differs from his own cultural norms.

The globalization of the world economy has resulted in a relative increase in the dominance of U.S. firms in the global marketplace.

false

Since the 1960s, which of the following has been a notable trend in the demographics of the multinational enterprise?

the growth of mini-multinationals

Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects:

the increasing internationalization of business corporations

Design and names by which merchants or manufacturers designate and differentiate their products are known as ____.

trademarks