International bus. test 1

The overall attractiveness of a country as a potential market or investment site for an international business depends on

Balancing the benefits, costs, and risks associated with doing business in that country

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

Collectivism

Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors in its subsidiary, even though it is against the multinational's home-country ethics. Which of the following approaches to business ethics would justify the actions of the multinational company?

Cultural relativism

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

Does not support a caste system

Why is the European Council said to be the ultimate controlling authority within the EU?

Draft legislation from the commission can become EU law only if the council agrees

Which is the most enduring free trade area in the world?

European Free Trade Association (EFTA)

Which of the following is a legal means by which the state can expropriate the profits from innovations?

Excessive Taxation

A Japanese executives ritual of presenting a business card to foreign business executive is an example of

Folkways

The G20 was originally established to

Formulate a coordinated policy response to financial crises in developing nations

From least integrated to most integrated, the levels of economic integration are a:

Free trade area, a customs union, a common market, an economic union, and a political union

________ arguments suggest that improving working conditions beyond the level required by the law and necessary to maximize employee productivity will reduce profits and are therefore not appropriate.

Friedman's

A ________ is an association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about each other's behavior.

Group

The Volume of the world trade in merchandised goods has been

Growing faster than world GDP

Which of the following persons believed that people should be treated as ends and never purely as means to the ends of others?

Immanuel Kant

Which of the following is a consequence of globalization?

Increasing outsourcing of services

A civil law system tends to be less adversarial than a common law system because the

Judges decisions are based on detailed legal codes

In some countries, the official GNI per capita measured at PPP data does not reflect the actual total annual income because

Large amounts of economic activity may be in the form of barter agreements

Globalization of markets results in markets becoming

Less Diverse

Which of the following established the second largest currency zone in the world?

Maastricht Treaty

Early Outsourcing efforts were primarily confined to

Manufacturing activities

In which of the following economies would the government be most likely to take into state ownership troubled firms whose continued operation is thought to be vital to national interests?

Mixed Economies

Which of the following factors hinders globalization of consumer goods market

National differences in tastes and preferences

Which of the following is a reason the European Union is considered an imperfect economic union?

Not all members of the union have adopted the Euro

Without a strong legal system in a market economy

Private and public entities can expropriate the profits generated by the efforts of private-sector entrepreneurs

In several western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to

Privatization

The finance minister of a country considers several large, state-owned Iron manufacturing units to be inefficient and a source of corruption. To generate resources for public expenditure and promote growth, the government decides to auction an entire iron manufacturing plant to sell it to a strategic investor. This process exemplifies

Privatization

In a pure market economy

Production is determined by the interaction of supply and demand

Max Weber theorized that there was a relationship between Protestantism and the emergence of modern capitalism because

Protestant ethics emphasize the importance of hard work and wealth creation and frugality

What term is used to determine a state in which authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties?

Pseudo-democracies

Six dimensions of culture

Religion, Social structure, Language, Education, political philosophy, economic philosophy

Which system of government generally permits some individual economic freedom but restricts freedom, frequently on the grounds that it would lead to the rise of communism?

Right-wing totalitarian

Which of the following adopted by the member nation of the European Community in 1987, committed member countries to work towards the establishment of a single market by December 31st, 1992?

Single European Act

On average, studies indicate the NAFTA's overall impact has been

Small but positive

According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship

Strong property rights

Which of the following is true regarding international businesses?

All MNE's are international businesses

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.

Which of the following was designed to allow GM to operate ethically in South Africa as long as the company did not obey the apartheid laws in its own South African operations?

Sullivan principles

Which of the following is a reason that command economies tend to stagnate?

The abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs

Which of the following observations is correct? a. The economic principles established in the Koran are against free enterprise. b. The economic principles of Islam prohibit the payment or receipt of interest. c. The Koran speaks disapprovingly of earning legitimate profit through trade and commerce. d. Protection of the right to private property is not embedded within Islam.

The economic principles of Islam prohibit the payment or receipt of interest.

Which of the following is correct? a. Protection of the right to private property is not acceptable within Islam b. The economic principles of Islam prohibit the payment or receipt on interest c. The Koran speaks disapprovingly or earning legitimate profit through trade and commerce d. The economic principles established in the Koran are against free enterprise

The economic principles of Islam prohibit the payment or receipt on interest

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

The growth of multi-nationals

Managing an international business is different from managing a purely domestic business for which of the following reasons?

The range of problems confronted is wider and more complex

GNI per person figures can be misleading because

They don't consider differences in the cost of living.

Systems that emphasize collectivism tend toward

Totalitarianism

Country A and Country B entered into a free trade agreement recently. After this, Country A starts importing heavy machinery from country B. Country A previously imported such machinery at lower rates from another country. Which of the following has occurred in this scenario?

Trade diversion

A British firm that sets up production units in China is accused of releasing untreated chemical waste into water bodies. The manager of the firm defends the firm stating that, factories in China set up by French and American firms also release untreated chemical waste into water bodies. What approach to business ethics is the manager using?

naive immoralist

________ approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate ethical decision making in a multinational enterprise.

straw man

______ argued that individual diversity and private ownership are desirable

Aristotle

The products of Carmen Stores, an international sports apparel chain, are manufactured in sweatshop factories in China. According to the company president, using sweatshop labor offers a means of livelihood to children and young adults, as well as supplies good quality apparel to customers at a lower cost. She asserts that the actions of the company are justified because it results in the benefit of the maximum number of people. The company president's argument is based on which of the following ethical viewpoints?

utilitarian approach to business ethics

An international U.S.-based company sets up a production unit in a developing country with poor environmental regulations. This contributes to the

global tragedy of the commons.

Hindus believe

in reincarnation, or rebirth into a different body, after death

Which feature of an economic union differentiates it from a common market?

A common monetary and fiscal policy

Which of the following is a step involved in the deregulation of a command economy?

Abolishing laws regulating the establishment and operation of private enterprises

Which of the following explains why economic integration has never been easy to achieve or sustain, despite the strong economic and political arguments in support?

While a nation as a whole may benefit significantly, certain groups may lose

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

World Trade Organization

An upper-middle-class manager tends to have hostile relationship with the working-class employees in the firm because of his tendency to perceive himself as superior to them based on his class background. In this example, the manager exhibits:

class consciousness

According to Amartya Sen, development should be

seen as a process of expanding the real freedoms that people experience.

Which of the following statements is true about a class system?

social mobility within a class system varies from society to society.