International Business BYU
_____ are the moral principles of right and wrong that guide personal and organizational decision making.
Ethics
Which of the following statements exemplifies the way high-context cultures convey messages?
"Our house is being refurnished after the disaster."
Which of the following best exemplifies a subsidiary?
Crimson Inc. is owned by Delta Inc. that owns 100% of its operations.
Structural risk arises as firms:
realize that their vendors may have different incentives than the client.
In the context of money, identify a true statement about fiat currencies.
A country can undermine the value of its fiat currency, rendering it valueless.
Kendall, an economics professor at the University of Florida, believes that a person who delays entering the workforce in favor of getting additional education won't be directly boosting his or her country's gross domestic product (GDP), but he or she will be building the foundation for a better life in the future. Which of the following statements supports her beliefs?
A country's GDP does not measure the well-being of its citizens.
Which of the following is a difference between a living language and a dead language?
A living language is one spoken by a native population somewhere, whereas a dead language is no longer native anywhere.
In the context of managing exchange rate risks, which of the following statements is true of FX swaps?
A spot transaction is coupled with a forward transaction where both are completed at the same time.
In the process of designing a business model to sell profitably to the poor, V Motors, an automobile manufacturer, aims to launch cheaper versions of its motorcycles. The company pays very little attention to the cost-quality trade-off that may not be acceptable to the poor. It is evident that V Motors may fall in _____ related to base-of-the pyramid markets.
Adaptability trap
Identify an example of an emerging market.
Admenia, a country in Asia, has largely untapped markets with high levels of economic activity.
Which of the following is true of external factors that affect a company's modes of operation in a foreign market?
Advances in technology have pushed employment out of manufacturing and toward more service-oriented jobs.
Who among the following is most likely to belong to an individualistic culture?
Aftab, who seeks training outside his organization
Alton Publishing Co., an e-learning firm based in the United States, provides free education courses to the poor in Namibia. Given the above information, which of the following statements is most likely to be true?
Alton Publishing Co. gives foreign aid to Namibia.
Birkland, a country in central Europe, decides to close its borders to free trade. It implements a quota that limits all forms of trade on all categories of goods or services. In the given scenario, Birkland enacts _____.
An embargo
_____ seeks to liberate individuals from any system of control.
Anarchy
_____ are a class of protective tariffs imposed by a domestic government on foreign imports that are thought to be priced below fair market value.
Antidumping actions
Sincland and Ireburn, two Southwestern European countries, decide to form an exclusive trade relation with each other because of certain mutual strategic and geographical advantages. In this case, the two countries are most likely to enter into a _____.
Bilateral trade agreement
What refers to agreements regarding trade between just two countries?
Bilateral trade agreements
Which of the following is a similarity between Judaism and Christianity?
Both are monotheistic religions
A similarity between Islam and Christianity is that:
Both believe that property and all other material goods originate from God
Which of the following is a similarity between mercantilism and neo-mercantilism?
Both favor a positive trade of balance
Which of the following is a similarity between the ideal of dharma and the Protestant work ethic?
Both focus on a person's moral obligation to contribute to the greater good of society.
Which of the following is an example of an emerging market?
Breulik, a country in Africa, has formulated political policies that support free trade and private ownership.
Brown Inc., a publishing company, is a partial state-owned enterprise in Descibelia, a country in South America. It is likely that:
Brown Inc. gives some of its profits to the government of Descibelia.
Sherman Inc., a Canadian automaker, is the market leader in the automobile industry in Canada. It wants to expand its business to Southeast Asia. How can Sherman be a global winner in an international setting?
By being better able to identify and respond to local nuances
Waldorf Inc., an oil company, is faced with an ethical dilemma of whether or not to continue to use the process of hydraulic fracturing to drill petroleum from thousands of feet below the surface of the Earth. The company is facing social pressures from environmental groups to discontinue the process of hydraulic fracturing as it has adverse effects on the environment. Waldorf Inc. wants to use a proactive approach to deal with these social pressures. In which of the following ways can Waldorf Inc. improve its reputation as a highly ethical company?
By engaging in corporate social responsibility (CSR) initiatives
Amanda, a marketing manager at Xenon Inc., believes that the company should engage in international business as it will benefit the company in multiple ways. However, Kyle, an operations manager of the company, feels that it should concentrate on conducting business domestically. Which of the following statements supports Amanda's beliefs?
By engaging in international business, Xenon can acquire new resources and knowledge.
Kirmia, a country in Eastern Europe, has a market-based economy. It wants to increase the total output of its goods and services. In which of the following ways can it increase its output?
By increasing the supply and efficiency of labor
Unlike electronic currencies, fiat currencies:
Cannot be traded for a precious metal
_____ generally refers to a resource that can serve to generate wealth, such as factories, equipment, investment accounts, software, land, and education.
Capital
Martha attends a conference that discusses the importance of foreign aid in alleviating poverty. She listens to various speakers arguing for and against the need for foreign aid in alleviating poverty. If Martha's views are aligned with the views of economist Dambisa Moyo, whose argument will Martha support?
Cindy, who argues that foreign aid frequently goes to corrupt leaders who build personal wealth rather than the infrastructure their countries need
A _____ is an economy that produces goods and services with environmental benefit.
Clean economy
The e-commerce sector of Belwick has implemented a paperless billing system that enables the e-commerce companies to provide bills online. This approach was implemented with the aim of reducing the use of paper. It is evident that the e-commerce sector of Belwick aimed to create a(n) _____.
Clean economy
What contributes to the increase in the earth's average temperature
Climate Change through greenhouse gasses
On 2nd October 2017, Oceana Inc. made a contract with Cypher Inc. to deliver one ton of iron ore by 16th October 2017. However, Oceana Inc. failed to fulfill the contract obligations. Oceana Inc. is punishable under the _____.
Commercial law
Allied Corp., a food processing company, wants to achieve competitive advantage by sustainable innovation. It aims to reduce the use of plastic in food processing. Which of the following should be the company's first step to start the process of sustainable innovation?
Complying with existing laws controlling the use of plastic
When deciding whom to involve in a sustainability initiative, a company should first:
Conduct due diligence
The _____ tracks the price of a specific set of consumer goods across time, watching for general price increases or decreases.
Consumer Price Index
Economic Factors
Cost of materials and resources Availability and cost of land Wages rates Workforce productivity Market size & growth Presence of customers Local competition
In order to collaborate with Widget Corp. and Zencorp, Instamatic Inc. sets a framework that specifies when each organization is needed in the collaborative effort. It is evident that Instamatic Inc. is _____.
Creating entrance strategies
_____ describes laws and punishments that regulate social conduct and provide personal, property, and human rights protections.
Criminal law
Sociocultural factors
Cultural barriers Local business practices Poverty rates Civil society Non-profit orgs Consumer protection groups Offshoring backlash
In the context of managing exchange rate risks, which of the following is true of a future?
Currencies are traded on an exchange.
The nation of Gregoran wants to purchase liquefied petroleum gas and diesel fuel from oil refineries based in the nation of Frodaria. Since Gregoran's currency is overvalued, Gregoran swaps its currency with the currency of Frodaria. In this scenario, the nation of Gregoran engages in:
Currency exchange
The people of Jirasta, a European country, believe that individuals should lie face down on the ground and join their hands while greeting others. This is an example of a _____ in Jirasta.
Custom
Which of the following is a difference between fiat currencies and cryptocurrencies?
Unlike fiat currencies, cryptocurrencies are not backed by any government.
The general price of goods and services is declining in Kimeril, a country in South America. Given this information, it can be said that Kimeril is experiencing _____.
Deflation
_____ is usually the third stage in sustainable innovation.
Designing sustainable products and services
Which of the following is a difference between developed markets and emerging markets?
Developed markets experience average economic growth of around 2 percent/year, whereas emerging markets experience economic growth of at least 4 percent/year.
Know reasons to appropriate time to disengage?
Exit strategies it has drifted too far from its mission the environmental factors have changed so much that the goal is no longer reasonable once a specific set of objectives has been met.
In 1988, the __________ was expanded to cover foreign companies that operate in or have securities (stocks or bonds) listed in the United States.
FCPA
_____ are payments made to speed up the actions that government officials are already bound to perform.
Facilitation payments
Which of the following is an example of a multinational corporation?
Falcon Inc., a German automaker, has extensive facilities and staff in 48 nations worldwid
Who among the following is likely to have the highest cultural intelligence quotient (CQ)?
Farhan, who understands the key differences among cultures, mimics the customs of the people around him, and has an innate desire to have culturally diverse experiences
Which of the following organizations is most likely to have low power distance?
Finox Inc., where managers ask the opinions of and take feedback from their team members
Pixel Inc., an Australian software development company, is planning to start its operations in Fidlansk, a country in South America. Before starting its operations in Fidlansk, it wants to determine the Human Development Index (HDI) of Fidlansk. HDI will help Pixel:
Focus on the presence or absence of opportunity in Fidlansk.
__________________ is a law signed by President Jimmy Carter in 1977 that made it illegal to pay foreign government officials for their assistance in obtaining or retaining business.
Foreign Corrupt Practices Act of 1977 (KNOW DATE)
In the context of poverty-stricken countries, which of the following statements is aligned with the views of economist Dambisa Moyo?
Foreign aid is a waste of resources when it is used to alleviate poverty.
According to economist Jeffrey Sachs, the key to lift poverty-stricken countries is to:
Foreign aid is the key. They need a jump start, provided by govts, NGO's, or corps. They need help getting out of the trap.
_____ is the permission to use another company's trademarks, patents, copyrights, and expertise according to a strict template setting out the way it does business.
Franchising
_____ is a nongovernmental, U.S.-based watchdog and advocacy organization for democracy founded in 1941.
Freedom House
Which of the following is a difference between the work culture of France and the work culture of the United States?
Full-time work in France consists of 35 hours a week, whereas full-time work in the United States consists of 40 hours a week.
Gross Domestic Product (GDP) Equation
GDP=C+I+G+NE GDP=Private Consumption+Investment+Gov. Spending+Net Exports(Exports-Imports)
What provided a multilateral forum to resolve trade disputes between member countries?
General Agreement on Tariffs and Trade (GATT) - reduces trade barriers and tariffs while eliminating trade preferences and providing a multilateral forum to resolve trade disputes
Shane works for a non-profit organization that caters to corporations and nongovernmental organizations worldwide. Shane is part of the team that provides training services to the Indian Red Cross Society. Given this information, it can be said that Shane most likely works for the _____.
Global Business School Network
Dasom Inc., a South Korean smartphone manufacturer, sells its smartphones in 64 countries around the world and has offices in 36 counties. Dasom's business expansion best exemplifies _____.
Globalization
Cora, an American citizen, is a critic of globalization. She believes that globalization has done more harm than good. She contends that globalization has detrimental effects on developed markets. Which of the following statements supports her contention?
Globalization makes it easy for employers to move jobs to cheaper locations.
Spain and Italy are both members of the European Union. Nayeli, a Spaniard, is able to purchase Italian-made bags from a handbag store in Spain without paying additional taxes. The market created by the European Union is a(n) _____.
Globalized market
_____ allows international businesses to predict the level of discretionary income consumers are likely to have in a country and is a rough first attempt to measure the potential opportunity.
Gross domestic product per capita
According to Amartya Sen, a Nobel Prize-winning economist, globalization:
Has enriched the world scientifically and culturally
Which of the following best illustrates global convergence?
Hawke Inc., an American computer manufacturer, imports raw materials from Nigeria, and in return it invests in Nigeria's infrastructure development.
Acronasia is a country that has had mercantilistic trade policies for decades. In recent years, however, this policy has caused some major disruptions in the economy of the country. Given the information, which of the following will most likely be a negative effect experienced by the country?
High inflation in the home markets
Deepa, an Indian, follows a religion that advocates the worship of multiple gods. She believes that every individual has a moral obligation to contribute to the greater good of society. She also believes that if an individual fulfills his or her moral obligation of bettering the lives of others, he or she shall achieve a state of complete spiritual perfection. In this context, Deepa is most likely a _____.
Hindu
As part of its business, Casper Inc., an Australian smartphone company, has opened its manufacturing plant in Sao Paulo, Brazil. In this scenario, Brazil is the _____.
Host country
Pristine Inc., a French athletic footwear company, has started its operations in Argentina. In this scenario, Argentina is the _____.
Host country
Behati, a Kenyan citizen, has been selected to represent Kenya at the United Nations (UN). Her speech is related to one of the issues that is central to successful globalization. This issue is also the central mandate of the UN. Which of the following is Behati's speech most likely to address?
How to increase the standard of living and reinforce human rights throughout the world
Derek is a management professor at the University of California. He believes that the Arab Spring is a political event with global implications. Which of the following statements supports his belief?
In Morocco, leaders have cracked down on free speech in a preemptive attempt to keep the protesters from organizing within the country.
Which of the following statements is true of the balance of trade?
Income disparities in a country can lead to a negative trade balance.
According to author Thomas Friedman
Individuals in poor countries with limited infrastructure are able to compete with people in rich, well-developed countries.
Steel manufacturers use limestone as one of the raw materials in the production of steel. It can be said that limestone is a(n) _____.
Industrial product
The process of building businesses and manufacturing on a large scale is known as _____.
Industrialization
Most part of a company's stock market value is determined by its ...
Intangible assets
Germanium Inc., a software company, uses common operating systems for all its computers connected through the Internet. Given this information, it can be said that these operating systems are _____.
Integrated technology platforms
Literia, a country in Asia, is experiencing a financial crisis. Its currency has lost much of its value, and the country's currency reserves are depleting. In this scenario, which of the following multilateral organizations is most likely to provide loans to Literia to rescue it from its financial crisis?
International monetary fund
Which of the following is true of globalization?
It builds on the principle of sovereignty to strengthen the relationships that connect us
Liskos, a country in South America, has a command-based economy. It wants to increase the supply and efficiency of its labor force. Which of the following techniques can it use to achieve this?
It can encourage people to work more hours.
Which of the following statements is true of a corporate social responsibility (CSR) approach to doing business?
It can maximize long-term profitability.
Which of the following statements is true of the not-invented-here (NIH) syndrome?
It causes an unwillingness to apply knowledge.
Which of the following is true of the Foreign Corrupt Practices Act (FCPA)?
It does not ban facilitation payments.
Identify a true statement about the World Trade Organization.
It ensures that member nations impose the minimal number of restrictions on each other.
Which of the following is true of globalization of production?
It helps companies take advantage of national differences in cost and quality.
Which of the following statements best defines subsidy?
It is a form of direct assistance to domestic producers in the form of tax breaks, grants, cash payments, low-interest loans, and government-owned equity.
Which of the following statements is true of short-termism?
It is largely a creation of stock markets and the modern capitalistic system.
The government of Azmeria, a country in West Asia, has placed a 55 percent tariff on all imports from Kumeris, a country in East Africa. This move by the government is likely to increase _____ for the firms from Kumeris operating in Azmeria.
Macro political risk
Which of the following is true of horizontal structuring?
It reflects the way company decides to subdivide itself
In Ligedia, a country in East Asia, factory workers are exposed to dangerous work conditions. Although such a practice is unethical, it is not considered illegal. Maple Inc., a Canadian mining company, is planning to start its operations in Ligedia. Which of the following actions should Maple Inc. take to proactively deal with the ethical situation?
It should establish strong guidelines to direct global actions toward employees, communities, and customers.
The government of Jacobania, a country in West Asia, has lowered the reserve requirement in the country. It can be said that:
Jacobania's banks can lend funds to businesses to fuel spending and investment.
Which of the following variables of economic freedom index in the Heritage Foundation determines the degree of regulatory efficiency in a country?
Labor freedom
In Kiseria, a country in South Asia, labor laws require laborers to work in factories for 12 hours a day. Atlas Inc., a mining company, is planning to open its operations in Kiseria. However, Atlas Inc. feels that laborers are being exploited by making them work for unusually long hours. This scenario illustrates that Kiseria's labor practices are:
Legal but unethical
The Central Bank of Curisia is responsible for performing functions such as printing money, increasing currency supply, raising interest rates, etc. The bank, therefore, uses monetary policies to control the supply of its currency with the goal of:
Maintaining price stability
Know the factors considered in the Human Development Index (HDI)?
Life expectancy Education Per capita income
Gabriella is a manager at Ivory Inc., an Australian footwear brand. She proposes that by engaging in business in the United States, Ivory can increase its sales. She suggests that by conducting a PEST analysis, Ivory can gain insights about the business environment in the United States. Which of the following is an economic factor that Ivory should take into consideration in its PEST analysis?
Local competition in the United States
Derian Inc., a national investment firm, has a culture that encourages collaboration between managers and employees. Managers at the firm take inputs from their team members before making any decisions. The employees of the firm feel that they are on an equal footing with their managers. As a result, they prefer working in groups and rely on the firm for training and socialization. In this context, which of the following pairs of characteristics most likely describes the work culture of Derian Inc.?
Low power distance and high collectivism
Know problems that will most likely pose a risk to a company targeting the poor as consumers.
Low to No Consumption Low to no cost savings Low to no respect (media can be negative for companies moving to impoverished countries)
Which of the following is a difference between low-context cultures and high-context cultures?
Low-context cultures rely on direct means of conveying messages, whereas high-context cultures use more implicit messaging.
The government of Ambria generally does not interfere in the value of the nation's currency. However, recently when the nation faced a severe financial crisis leading to its currency being depreciated to a great extent, the government decided to explicitly intervene by increasing the supply of money. In this scenario, the Ambrian government can be said to be engaging in a _____.
Managed float
_____ represents a deep understanding of local context and customer needs and the ability to cultivate that knowledge in new contexts and locations.
Market savvy
_____ is an interventionist trade theory which suggests that trade generates wealth for a country with a trade surplus, with emphasis on colonization and military conquest.
Mercantilism
Argon Inc., a designer handbag company, is planning to open its stores in Mexico. Which of the following is a technological factor that is likely to affect Argon's modes of operation in Mexico?
Mexico's intellectual infrastructure
_____ is a source of financial services for entrepreneurs and small businesses lacking access to banking and entrepreneurial training.
Microfinance
Gradium Technosoft, one of the leading laptop manufacturers in the country of Bhodonia, wants to open its stores in the country of Cregonasa. To finance the stores' rent, Gradium Technosoft sells Bhodos, currency of Bhodonia, and it acquires Crego dollars, currency of Cregonasa. In the context of exchange rates, identify the most likely outcome if the demand for Crego dollars is higher than that of Bhodos.
More Bhodos will be required to buy Crego dollars.
Neptune Inc., an American consumer electronics company, wants to start its operations in Javaheria, a country in South America. Javaheria has a low degree of rule of law. Given this information, it can be said that:
Neptune Inc. is more likely to face the risk of having its overseas property and goods confiscated at the whim of a politician.
Gross domestic product (GDP) that has not been adjusted to take inflation into account is called _____.
Nominal GDP
Ramanond Technologies is an independent business that facilitates foreign exchange trades. In the context of institutions that make foreign exchange happen, Ramanond Technologies is categorized under:
Nonfinancial customers
Apetates, a food processing company, wants to address climate change in their business strategies. Which of the following strategies can Apetates adopt to address the issues regarding climate change and become ecologically sustainable?
Operating machines on solar power during off-peak hours
Allied Technologies, a firm in the United States, has spent millions of dollars to ensure that the quality of the work of its vendors in China and India can be effectively measured and tracked. It is evident that Allied technologies has invested to avoid _____.
Operational risks
When starting a new operation in a different country what do you have to do to successfully carry out its operations?
PEST analysis
Kulovia, a country in Eastern Europe, allows free trade and foreign investment. Cyan Inc., an American consumer electronics company, thinks that the policies in Kulovia are favorable for conducting business. Which of the following external factors has Cyan taken into consideration?
Political factors
The government of Kuseria, a country in West Asia, has formulated a set of principles, ideas, and doctrines to establish and control social order in the country. Given this information, it can be said that the government of Kuseria has created a(n) _____.
Political ideology
Carmine Inc. is an American mining company operating in Keharus, a country in Eastern Europe. Recently, the government of Keharus has passed a policy that restricts foreign direct investment. Consequently, the operations of Carmine Inc. is adversely affected. Given this information, it can be said that Carmine Inc. is subjected to _____ in Keharus.
Political risk
Dawson Inc. is an American smartphone manufacturer. It recently started its operations in Janikia, a country in South America. Its main focus is on selling its smartphones to consumers in Janikia. Which of the following factors of gross domestic product (GDP) can help Dawson determine the likely demand for its smartphones in Janikia?
Private consumption
According to the theory of the international product life cycle, which of the following happens when a product becomes standardized?
Production by the innovating company declines
The central bank of Kilberis, a country in Western Europe, prints money and uses it to buy government bonds, corporate bonds, and equities. Consequently, the amount of money in the economy has increased. The government expects that the increased amount of money in the economy will flow to banks that will lend it to consumers and investors, increasing consumption and investment and thus economic growth. This scenario is an example of _____.
Quantitative easing
Gross domestic product (GDP) that has been adjusted to account for the effect of inflation is known as _____.
Real GDP
For two consecutive quarters in 2016, the gross domestic product of Hinseria, a country in West Africa, decreased. During these two quarters, the country's output shrank, and the general well-being of its citizens declined. This scenario is an example of _____.
Recession
Know what the first step in managing cultural differences in the workplace is?
Recognize cultural differences
When recognized cultural differences the next step is to what?
Respect the differences
_____ is the process of taking innovations developed in emerging markets and repackaging them for developed markets.
Reverse innovation
Bianca is a student of international business at the University of Phoenix. She is of the opinion that the world is not fully connected. She believes that the global financial markets are controlled only by a few cities and that most businesses still operate in domestic markets. Bianca's views are consistent with the _____ argument.
Round world
Crimson Corp., an American apparel company, has a tie-up with a European football club. Crimson sells a line of jerseys with the football club's logo on it. The company has to pay a percentage of its earnings from the sales of the jerseys to the football club. In this scenario, the payments are called _____.
Royalties
Adam, Ryan, Jason, and Stephen argue about the reason behind the fact that developed countries, like the United States and France, continue to see growth with energy consumption. Who among the following provides the most appropriate reason?
Ryan, who says that the reason is the increased focus on clean energy technologies
In the context of international business, unlike firms that are proactive, firms that are reactive _____.
Seek to build capabilities that let them quickly respond to social pressures
Which of the following is a difference between high power distance and low power distance?
Unlike high power distance, low power distance results in a more collaborative environment.
Instacart, an e-commerce company, wants to achieve sustainability. Which of the following should be one of the primary goals of the company to become sustainable?
Sharing information to help spark innovation
Zeptech, a computer microprocessor manufacturing firm, is gravitated toward sustainability. Which of the following goals should Zeptech consider as one of its primary goals to attain sustainability?
Sharing investments to spread cost and risk
Martha, a mother of two infants, is in a poverty trap. Which of the following statements is most likely to be true of Martha?
She has a low level of individual capability for hope.
Know the first 3 stage in sustainable innovation
Stage 1: View Compliance as Opportunity Stage 2: Make Value Chains Sustainable Stage 3: Design Sustainable Products and Services
Stan and Practor, a chain of private hospitals in the United States, runs free health camps across the poverty-stricken country of Zaneland. Given the above information, which of the following statements is most likely to be true?
Stan and Practor provides foreign aid to Zaneland.
The government of Jermenia, a country in Eastern Europe, owns Auburn Inc., a mining company worth $200 billion. The government controls all the operations of the company. The profits of Auburn Inc. are returned to the government. Given this information, it can be said that Auburn Inc. is a _____.
State-owned enterprise
Unlike Arthur, Steven is in a poverty trap. Which of the following statements is most likely true for Arthur and Steven?
Steven has a lower level of individual capability for education than Arthur.
To avoid short termism, the board of a company should....
Strategy 1: Focus on Stakeholders, Not Just Shareholders. Strategy 2: Convince Wall Street to Change the Rules. Strategy 3: Get the Board of Directors to Think Long Term.
MynTech, a technology firm in the United States, hired a recruiter to recruit potential employees in China. MynTech had to work closely with the recruiter to ensure that only candidates with the desired skill set are hired. It is evident that MynTech worked closely with the recruiter to avoid:
Structural risks
Political Factors
Tax rates Tariffs Govt efficiency and corruption IP laws Industrial policies Political risk (war)
Technological factors
Tech platforms ISO standards Internet connectivity Social Media Advancement of infrastructure Innovation spaces
Magenta Inc., an Australian footwear company, is planning to open its stores in Sri Lanka. Before starting its operations in Sri Lanka, Magenta Inc. wants to assess the level of economic freedom in the country. It wants to collect data on the rule of law, limitations on government, the degree of regulatory efficiency, and the openness of the Sri Lankan market to domestic and international competition. Which of the following organizations can provide the required data to Magenta Inc.?
The Heritage Foundation
Powell Motors, an automobile manufacturing company, aims to manufacture a motorcycle that the poor can afford. Which of the following is a problem that will most likely pose a risk to Powell Motors in targeting the poor as consumers?
The company assuming that a base of customers willing to pay for the motorcycle already exists.
In the context of foreign exchange rates, which of the following scenarios exemplifies dollarization?
The country of Zansas pegs its currency, the Zan, to the U.S. dollar at 5.75 Zan per dollar.
The graph given below compares the GDP of a country with the country's energy consumption. Analyze the graph and identify a statement that is true for the years 1960-2000.
The country's GDP has increased with energy consumption.
What facts support the act of buying currencies of other countries can affect the floating exchange rate?
The demand for the domestic currency decreases
Mantonian franc is the currency of Mantonia, a country with a floating exchange rate system. The government of Mantonia does not directly intervene in the currency exchange. Hence, it has no direct influence on the price of the nation's currency. However, it is involved in other indirect actions such as buying currencies of other countries. Which of the following statements supports the fact that the act of buying currencies of other countries can affect the floating exchange rate?
The demand for the domestic currency of Mantonia decreases.
In the context of managing exchange rate risks, which of the following statements is true of forward exchange rate transactions?
The forward rate is a prediction of future spot rates that allows a company to bypass uncertainty in the currency market.
Praltis Inc., is a company that manufactures cars. One of its new models, a convertible car, is now in its mature phase. According to the theory of the international product life cycle, which of the following statements is most likely to be true in this case?
The innovating company will begin to create brand loyalty by selling to new customers
Shanvi is a 6-year-old girl who lives in the United States. Which of the following characteristics is she most likely to acquire through her choices and the activities she engages in?
The political ideology she affiliates with
Know the advantages of spot exchange rate.
The primary advantage to spot and forward foreign exchange is it helps manage risk: allowing you to protect costs on products and services bought abroad; protect profit margins on products and services sold overseas; and, in the case of forward foreign exchange, locks in exchange rates for as long as a year in advance.
Lacord Inc., a wires and cables manufacturing company, produces water-resistant cables. It has now been ten years since the cables were first introduced in the market. The product is now in its decline phase. In the context of the international product life cycle, which of the following is likely to be true in this case?
The product will experience a decrease in sales in more affluent countries.
Adam, an entrepreneur, believes that a product's life cycle is important in determining trade patterns. His company's product is currently in the introduction stage of the product life cycle. According to the theory of the international product life cycle, which of the following is most likely to be true in this case?
The production will be the most expensive at this stage
In a survey conducted on the rule of law index by the World Justice Project, Ismeria, a country in Western Europe, received a high score. Given the information, which of the following is most likely to be true of Ismeria?
The rule of law in Ismeria reduces transactional risks, such as fraud, negligence, and bad debts.
Bella, a professor at the University of California, believes that the rule of law promotes international business. Which of the following statements supports her beliefs?
The rule of law puts a check on governmental power in a country.
Unlike in a state-owned enterprise, in a state-supported company, _____.
The state gets indirect benefits from job creation and growth
In Jiledina, a country in Southern Europe, laws are based on Christian doctrines. The laws of the country govern crime, politics, business contracts, and religious observances. Given this information, it can be said that Jiledina operates under _____.
Theocratic law
_____ is adjudicated by religious leaders.
Theocratic law
Rick's family lives in abject poverty in Belwick. Which of the following statements is most likely to be true of the family?
They do not have enough resources to be clothed and fed.
Which of the following is most likely to be true of Western companies?
They have gravitated toward short-termism.
In the context of collaborative initiatives, which of the following is true of exit strategies?
They help partners know when they've reached an appropriate time to disengage
Which of the following statements is true of bilateral trade agreements?
They refer to agreements regarding trade between just two countries.
MineralT, a beverage company, prices its bottled water in proportion to the income levels in the countries where they are sold. It is evident that MineralT has adopted the strategy of:
Tiered pricing
Which of the following is the aim of the G20 head-of-government summits?
To coordinate financial and monetary policies to respond to financial crises
Which of the following is a difference between Christianity and Hinduism?
Unlike Christianity, Hinduism is a polytheistic religion.
Which of the following is a difference between high uncertainty avoidance and low uncertainty avoidance?
Unlike low uncertainty avoidance, high uncertainty avoidance suggests that employees are more risk averse.
_____ determines where in a hierarchy the decisions about a company are made.
Vertical structuring
_____ is usually the first stage in sustainable innovation.
View Compliance as Opportunity
Which of the following is true of regulations governing international business?
When countries improve their laws, they likely open up more opportunities for business in the country.
Genevieve is a manager at Titanium Inc., an American apparel company. Before opening its manufacturing units in China, Genevieve believes that Titanium should analyze different contextual environments to understand long-term trends in China and assess how they might affect Titanium's business there. Which of the following is an economic factor that Titanium should take into consideration in its PEST analysis?
Workforce productivity in China
Imagine that Belseria, a developing country in South America, recently became a member of a multilateral organization that works toward preventing war by promoting economic development in poor countries. The organization assists poor countries in building their infrastructure by providing them with heavily subsidized loans. Given this information, it can be said that Belseria most likely became a member of the _____.
World Bank
Caleb is a senior journalist. He is a member of an independent non-profit organization that works toward improving the state of the world through public-private cooperation. The members of the organization meet annually in the Swiss mountain resort of Davos to discuss issues related to gender equality, geopolitics, the future of the Internet, global talent gaps, global financial systems, and other business-related topics. Given this information, it can be said that Caleb is a member of the _____.
World Economic Forum
In the context of managing exchange rate risks, which of the following best exemplifies a company that is engaged in forward exchange rate transactions?
XYZ Corp. reaches an agreement with Iond bank to trade currency at a future date at the rate agreed to and specified at the time of the deal.
Common law
a legal system in which judges interpret law and set precedent for subsequent interpretation and usage.
Macro political risk
a political risk that essentially affects all businesses in a given country
micro political risk
a political risk that only affects a certain industry or set of firms in a given country
command-based economy
a regime plans and controls all economic activity
Civil law
a system of law that provides a comprehensive code of written law that judges translate into legal principles and regulatory statutes.
Theocratic law
a system of law that relies on religious doctrine and belief.
Yumshiren, an Asian country, has better access to high-end manufacturing tools than any of its neighboring countries. As a result, it produces good quality automobiles more efficiently than all of its competitors. In the given scenario, Yumshiren has a(n) _____.
absolute advantage
In the process of designing a business model to sell profitably to the poor, FoodLoaf, a food processing company, aims to launch low-priced meals. The product is designed as per the purchasing power of the poor. It is evident that FoodLoaf aims to avoid _____ related to base-of-the pyramid markets.
affordability trap
A particular type of quota that limits all forms of trade on entire categories of goods and services is referred to as _____.
an embargo
David belongs to a faction of individualists who believe that individuals should be free from any system of control. This faction believes that individuals should have the right to govern themselves without the need of any system of government. Given this information, it can be said that this faction is most likely a group of _____.
anarchists
The country of Ethandan witnesses a major economic growth in its current financial year as a result of a major breakthrough by the nation's scientists in the field of nanotechnology. The economic growth leads to an increase in the value of the nation's currency relative to that of other nations'. In the context of the foreign exchange market, the increase in the value of Ethandan's currency is referred to as _____.
appreciation
Imperial Inc., an Irish semiconductor manufacturer, sources germanium, a raw material used in the production of semiconductors, from China. It takes advantage of differences across countries by treating them as business opportunities. This scenario best exemplifies _____.
arbitrage
Omega Inc., an American semiconductor company, made a contract with Delta Inc., a Canadian computer manufacturing company, on 25th September 2017, to manufacture and deliver 1,000 chipsets on 3rd October 2017. However, Omega Inc. failed to deliver the chipsets on the agreed date. Omega Inc. wants to avoid a lawsuit and reach a settlement outside the courts. Delta Inc. agrees to consult a third party to reach a binding decision. Given this information, it can be said that Omega Inc. and Delta Inc. are engaged in _____.
arbitration
Unlike institutional investors, analysts on Wall Street:
are entirely focused on quarterly earnings.
What does motivational cultural intelligence quotient measure?
assesses your level of interest, drive, and energy to adapt cross-culturally; this can come from both an innate (intrinsic) desire as well as external (extrinsic) forces.
The sustainability consortium aims to reduce the impact of global consumption by:
by gathering data on the life cycle of consumer products and then putting that information into the hands of relevant companies.
Liberis, a country in East Africa, operates under a system of law that aims to prevent litigation and promote confidence in transactions. The law has ancient Roman origins. Under this law, judges in Liberis are bound not by earlier rulings, but by a written constitution and detailed statutory code that is always binding. Given this information, it can be said that Liberis operates under _____.
civil law
Unlike capitalism, communism:
calls for the workers themselves to organize the economy
In Diberin, a country in Western Europe, instead of the government, private owners control factors of trade and production. Given this information, it can be said that Diberin follows _____.
capitalism
Practer Inc. aims to collaborate with other companies and achieve sustainability. When deciding whom to involve in its sustainability initiative, Practer Inc. should first:
check if its objectives are consistent with the potential partners.
The energy industry of Zaneland, with the support of the government, has set a goal to replace the conventional sources of energy, such as coal, oil, and natural gas with renewable and inexhaustible energy sources, such as solar energy and hydropower, in the next 20 years. It is evident that the energy industry of Zaneland has set a goal to create a _____.
clean economy
Patricia is a manager in a multinational company and supervises a diverse workforce. She understands the key differences among different cultures and how these differences affect business interactions. Despite this, she does not mimic the customs and habits of the people around her. She does not care if her subordinates or peers feel offended by her disregard for their culture. In this scenario, Patricia most likely has high _____.
cognitive cultural intelligence quotient
The United Kingdom, the United States, and Australia are examples of countries that rely on _____.
common law
When deciding who to involve in a sustainability initiative, a company should first?
companies need to be sure the objectives of any potential partners (other companies, NGOs, governments, universities) are consistent with their own Conduct due dilligence
Bregonia, a European nation, is able to produce its consumer goods at a lower opportunity cost than its rival nation, Plakeburn. Given this information, it is most likely that Bregonia has a(n) _____ over Plakeburn.
comparative advantage
Xengmai, an Asian country, forms a business policy which states that all computer manufacturing companies need to ensure that sixty percent parts of their computers are made out of domestically-produced hardware. Imported parts can be used for the remaining forty percent. The given scenario exemplifies _____.
content requirements
emerging market
countries moving toward economic policies of open trade and free markets,
The government of Chiresia, a country in South America, maintains a fixed exchange rate. This scenario is an example of _____.
currency control
The government of Nerland, a European country, wants to find out about the country's exports and imports of goods, services, and income. In this case, the country's Ministry of Finance will have to look into the _____ of Nerland.
current account
The country of Cloden witnesses a major economic downfall in its current financial year because of monetary losses in the nation's major business sectors. This economic decline, in turn, causes a decrease in the value of the nation's currency relative to that of other nations'. In the context of the foreign exchange market, the decrease in Cloden's currency value is referred to as _____.
depreciation
The country of Jolania faced a major political instability when the nation's government implemented new trade laws that hurt investment opportunities for several industries. Companies doing business in Jolania feared an economic disaster, and moved their money to safer countries. Many sold their Jolanian currency to purchase other stable currencies. This resulted in the _____ of the Jolanian currency.
depreciation
From 1987 to 2001, the government of Gintesia, a country in West Asia, controlled the oil industry in the country. During that period, the government made all the decisions regarding the operations of the oil industry. However, in 2002, Gintesia began the process of removing government control from the industry. Now, the oil companies in Gintesia have private ownership. This scenario illustrates _____.
deregulation
Brendon Notebooks, a scholastic stationery manufacturer, manufactures its notebooks from 100% sugarcane waste fiber, which is a rapidly renewable fiber. This approach to manufacturing paper can help reduce the rapid deforestation caused by the pulp and paper industry. On the basis of the given information, it can be said that Brendon Notebooks:
designs sustainable products.
Know the difference between emerging market and developing market?
developing markets are stagnant - not on the path to becoming emerging market.
market-based economy
economic system in which factors of trade and production are controlled by private owners (capitalism)
Ervetia is a country in Europe, which has recently adopted a new economic policy. The government of Ervetia has now opened doors to foreign investments and free trade relations with other countries. The number of private companies in Ervetia has also started increasing at a fast pace. Given this information, it can be said that Ervetia is most likely a(n) _____.
emerging market
In a greenfield venture, _____.
establishes a foreign subsidiary by building an entirely new operation in a foreign country
In contrast to public international law, private international law:
establishes legal jurisdiction and procedures for people and organizations, including businesses.
Dansaz is one of the largest textile-producing nations. However, little demand exists within the country for its own goods because incomes are traditionally low and most of the produced textiles are too expensive for the average Dansazian. In spite of this, the Dansazian government chooses to keep its currency valuation low. This is likely to:
help in the development of the Dansazian industry.
Like presidential democracies, in parliamentary democracies, _____.
executive officers are elected through a common vote (correct answer)
Windsor Inc., an American home appliances manufacturer, engages in international business by shipping its products to multiple countries around the world. Given the scenario, it can be said that Windsor is involved in _____.
exporting
Argon Inc. is an Australian telecommunications company operating in Kimeria, a country in West Asia. Recently, the government of Kimeria passed a legislation that ordered the confiscation of all telecommunications companies in Kimeria. This scenario is an example of _____.
expropriation
PIOL is a terrorist organization that has radical political views. It has gained followers worldwide by radicalizing their political outlook through online media. This scenario illustrates the concept of _____.
extremism
Niall is an assembly-line worker in a car-manufacturing firm in Detroit. Assembly-line workers like Niall constitute the _____ of the car-manufacturing firm
factors of production
Cleon, a Korean cosmetics brand, recently launched its range of face oils in an entirely new market where that product has never been introduced by any brand. Exploring the new market turns out to be greatly beneficial for the company as the sales of the face oils shoot up immediately. In the given scenario, Cleon is a _____.
first mover
The government of Ligesia, a country in South America, has lowered its taxes by 25 percent. Consequently, the discretionary income of its citizens has increased, which in turn has increased their private spending. In the given scenario, the government of Ligesia has used _____.
fiscal policy
Industry expertise means ________.
future of industry, key players/competitors, how the company can lead
Citron Corp., a German car manufacturer, wants to start its operations in Southeast Asia. By engaging in international business, Citron can:
gain minerals or other natural resources that cannot be found in the home country.
A _____ is an index that allows investors to track a company's carbon use.
green index
Cumulus Inc., an American consumer electronics company, is planning to start its operations in Kilnedia, a country in West Asia. To determine the output of Kilnedia, Cumulus wants to measure the value of finished goods and services produced within Kilnedia's borders by domestic and foreign companies. Given the information, it can be said that Cumulus is most likely to determine the _____ of Kilnedia.
gross domestic product
The total value of final goods and services provided by a country is its _____.
gross national product
According to Amartya Sen globalization
has enriched the world scientifically and culturally, and benefited many people economically as well
A country is relatively free market, customers are likely to what?
have more income, longer life expectancy, more leisure time to spend income
International law
laws agreed on by nations; these laws are binding on nations and supersede their national laws.
Shyam, a manager in a company, prefers using straightforward and concise messages to convey information to his subordinates. He does not believe in providing much background information and believes that direct communication gives him more control over a situation and allows him to take responsibility for his actions. In this scenario, Shyam most likely belongs to a:
high-assertion and low-context culture.
The rights that belong to every person are called _____.
human rights
How can you be a global winner in an international setting?
identify and respond to local nuances
Mica Inc., an American mining company, issued false financial statements to evade taxes. Given this information, it can be said that Mica Inc.'s actions are:
illegal and unethical
Criminal law
laws and punishments that regulate social conduct and provide personal, property, and human rights protections. (Laws to prevent sexual assault)
Businesses engage in alleviating poverty with the goal of:
increasing the poor's capabilities necessary to participate in society.
In Lithuria, a country in Eastern Europe, personal liberties and rights are highly valued. The citizens of Lithuria have the right to own property and decide how to use the property. In Lithuria, the goals of the citizens and society are often congruent. The government believes that a person pursuing his or her own self-interest most effectively promotes the good of society as well. Given this information, it can be said that Lithuria is governed by _____ philosophy.
individualistic
Acacia Inc., a pharmaceutical company, has developed a miracle drug that can cure breast cancer. This invention by Acacia Inc. is an example of _____.
intellectual property
Supranational laws
international law that limits the rights of sovereign governments.
Chris is the global operations manager at Asterisk Inc., a Canadian apparel company. The company is planning to start operations in Brazil and Japan. Chris believes that Asterisk has the potential to boost its overall sales by setting up operations in Brazil and Japan if:
it can persuade people in these two countries to buy its products.
Customary law
laws derived from experience, practice, collective wisdom, and shared philosophy to set the boundaries and rights that define relationships between community members.
Commercial law
laws specifying the rights and duties of individuals in their business dealings, how businesses are created and organized, and how business is transacted. (Law to prevent bribery; Anti-trust act)
Constitutional law
laws that set the bounds of government and governmental procedures
The Jordanian government typically delays most of the imported goods in customs citing various administrative reasons. Although Jordania does not completely support free trade, it also does not openly implement antidumping actions for reasons of diplomacy. In this case, through administrative delays, Jordania is trying to:
limit the inflow of foreign goods.
Unlike analysts on Wall Street, institutional investors:
look at investments in terms of years.
Unlike nonprofit organizations, for-profit organizations:
may tie the sales of a product to actions to alleviate poverty.
Bulchester, a former sovereign country in Northern Europe, had a trading pattern in which most of the business organizations were funded or owned by the government. The government ensured that the country exported more goods than it imported, thereby maintaining a trade surplus at all times. Bulchester's trading pattern reflects the trade theory of _____.
mercantilism
Tungsten Inc., an American mining company, carried out mining in Kijeslin, a country in East Africa. However, because of large-scale protests by local environmental groups, the company had to cease its mining activities. In this scenario, Tungsten Inc. faced a _____ in Kijeslin.
micro political risk
Bennington Inc., an American computer technology company, is planning to expand its business in South American and Southeast Asian countries. By operating in multiple countries, Bennington is most likely to:
minimize the impact of economic swings it may experience over the years.
The Corporate United Front is an aid agency that is collectively owned by 100 corporate firms. The agency was established to provide aid to poverty-stricken countries. In this scenario, it can be said that The Corporate United Front is a _____.
multilateral aid agency
Sanctity is a non-profit group that works toward increasing female literacy globally. It strives to promote women's education in developing nations. Its members are engaged in providing training and advisory services to schools and colleges in developing nations. Sanctity is funded and managed by several governments worldwide. Given this information, it can be said that Sanctity is a _____.
multilateral organization
multilateral organization
multiple nations working together World Bank. International Monetary Fund The United Nations
Unlike domestic business, international business:
necessarily places greater emphasis on differences between countries.
Despite restricted foreign investment in Nikopia, a country in Eastern Europe, Phoenix Inc., an American mining company, wants to operate in Nikopia because of its vast mineral deposits. In such a case, Phoenix Inc. can attempt to prepare for potential problems by:
negotiating some form of contract with Nikopia to establish an avenue of recourse in case something happens to disrupt the company's operations.
According to critics of globalization, _____.
new technologies and the investment of foreign capital in developing countries may actually increase levels of inequality
Bank of Linsdon lends $1,000,000 to SBC Techno Inc. with an understanding that the company will need to repay the loan in monthly installments of $25,000. SBC Techno Inc. successfully makes the monthly payments for two consecutive years. However, due to a financial crisis, it faces cash flow problems and eventually stops paying the installments. In this scenario, Bank of Linsdon is said to have a(n) _____.
non-performing loan
Freedom house
nongovernmental, U.S.-based watchdog and advocacy organization for democracy founded in 1941.
The government of Lekistan, a country in West Asia, has 58% holdings of Olive Inc., an oil company. Olive Inc. gives some percentage of its profits to the government. Given this information, it can be said that Olive Inc. is a _____.
partial state-owned enterprise
According to Joseph Stiglitz globalization
perpetuates inequality throughout the world
How do you boost overall sales by setting up operations in other countries?
persuade people to buy products and services
Darwin Inc. is a smartphone company in Nesland, a country in Eastern Europe. It decides to start its operations in Ervetia, a country in Africa. However, because of the poor implementation of property rights in Ervetia, Darwin is forced to shut down its factories there. Darwin's operations are interrupted in Ervetia because of the country's _____.
political factors
Tigeria, a country in East Africa, has an authoritarian government. Given this information, it can be said that:
power is concentrated in the hands of a leader or a small group of leaders in Tigeria who are not constitutionally responsible to citizens for their actions.
In Tenatia, a country in Eastern Europe, companies and people can own land and equipment. They have the liberty to decide how to utilize these resources and reap the returns or losses of business activities. Given this information, it can be said that the companies and the people in Tenatia have _____.
property rights
In efforts to curb the influx of foreign goods into the country, the government of Losvane has set a limit on the number of goods that can be imported in a given year. In this case, the government of Losvane is most likely imposing a _____.
quota
What are quotas and tariffs?
quota - a direct limit on the number of goods that can be imported into or exported from a country Tariffs - taxes on foreign products that discourage imports
In the context of managing cultural differences, the term _____ refers to finding or creating shared ground, or areas of overlap between old and new behaviors and understanding.
recentering
Phil, an American employee at an advertising company, was assigned to work with an Indian client to develop a marketing campaign for one of the client's products. After his first meeting with the client and his team, Phil realized that the client's culture was significantly different from his own. Despite disagreeing with many of the cultural differences, Phil readjusted his thinking and behavior to meet the demands of the situation. This scenario illustrates the concept of _____.
recentering
The process of innovating for sustainability starts with companies learning to:
recognize opportunities.
In comparison with government aid agencies, multilateral aid agencies:
reduce conflict among nations. are more likely to pool financial resources efficiently. tend to be less tied to the political self-interests of specific donor countries.
What has technology done to employment in manufacturing?
replaced it
MynTech, a coal mining company, recently faced downtime because of equipment failure. Because of the failure, the company lost 3 days' worth of mining effort. It can be said that the company's ability to produce coal was limited by _____.
resource constraints
Quotas and tariffs:
restrict imports.
In the context of international business, unlike firms that are proactive, firms that are reactive _____.
seek to build capabilities that let them quickly respond to social pressures
Micro-Multinational corporation.
small web-wired start-ups that are using social media to recruit the best talent from around the world and leverage it for immediate innovation and impact
Charesiak, a country in North Africa, has a collective form of government in which the community as a whole owns the means of production and the distribution of production. The government uses peaceful means to establish a communal society. Given this information, it can be said that Charesiak is a(n) _____ state.
socialist
Linda wants to sell U.S. dollars and buy Noan currencies, currency of the country of Noansia. The spot exchange rate is 1,170 Noan to the dollar; hence, Linda is unlikely to sell her U.S. dollars at this rate. The bank offers Linda 1,150 Noan for each dollar she sells. However, if Linda plans to sell Noan currencies to buy U.S. dollars, the bank will charge her 1,190 Noan for each dollar she purchases. In this scenario, the 20 Noan difference between the spot exchange rate and the rate that the bank offers Linda is referred to as the _____.
spread
SafestMoney is a commercial bank that is involved in foreign exchange trade. In addition to conducting trade on behalf of its customers and itself, it provides trading channels for other participants. SafestMoney makes money by charging a _____ on the exchange, which is the difference between the buy and sell price for a currency.
spread
The government of Kingsbain believes in backing its domestic firms rather than allowing foreign products to be dumped in the domestic markets. As the domestic firms of Kingsbain are inefficient, the government regularly gives them money to keep them in business. This monetary support provided by the government is called a(n) _____.
subsidy
According to Critics of globalization
support nationalism and protectionism, destroys jobs, *makes it too easy for employers to move jobs and production to cheaper locations
The Commerce Coalition is an intergovernmental organization operating in Europe that consists of 20 member nations. It has adopted laws that regulate the movement of goods, services, and capital across the borders of member nations. These laws also define industrial policies. These laws take precedence over national laws of member states. Given this information, it can be said that these laws are _____.
supranational laws
Clayton Fabrics manufactures car seats for different automobile manufacturers. The fabric used to make the seats is made from 100% post-industrial materials and renewable soy foam seat bases. This eco-friendly approach to making seats helps the company maintain its competitive advantage over other rivals who use nylon or polyester to make car seats. In this scenario, it is evident that Clayton Fabrics supports _____.
sustainability
Powell Motors, an automobile manufacturing company, has a stock market value of $20 bn. The market value, for the most part, is affected by:
the brand and reputation of the company.
The nation of Dholabha is experiencing a widespread drop in its spending. Hence, it has been declared as a nation going through a phase of recession. The people of Dholabha are dealing with reduced levels of employment, which is adversely affecting the economic growth of the nation. In this scenario, when Dholabha begins to thrive again and the gross domestic product (GDP) of the nation increases, _____
the citizens will begin demanding more imports
Unlike in capitalist states, in authoritarian states, _____.
the government determines where investments should be made
Leather sold in the country of Zanasia costs the same as leather sold in the countries of Meramba, Chidean, and Pareuim. In the context of currency values, this exemplifies:
the law of one price.
Anita is an Indian who works for a multinational firm in Germany. Georgina, a German native and Anita's supervisor, never accepts the ideas proposed by Anita and is always condescending of them. Georgina is unwilling to accept the ideas of another culture and apply new knowledge during the process of idea generation. In this scenario, Georgina most likely suffers from _____.
the not-invented-here syndrome
North Korea is considered a poor candidate for a strong and widely traded currency. This is because of:
the presence of authoritarian leadership.
The government of Meditania, a country in Eastern Europe, has raised the reserve requirement in the country. It can be said that:
the total value of loans that Meditania's banks can make will be restricted.
In the process of designing a business model to sell profitably to the poor, Widget Corp., an information technology firm, conducts a survey to determine the number of people willing to pay for the company's product instead of determining the number of people who require the product. It is evident that Widget Corp. aims to avoid _____ related to base-of-the pyramid markets.
the unmet needs trap
In Bilghistan, a country in West Asia, Christian doctrines form the basis of the government. It can be said that Bilghistan has a(n) _____ government.
theocratic
In Jiledina, a country in Southern Europe, laws are based on Christian doctrines. The laws of the country govern crime, politics, business contracts, and religious observances. Given this information, it can be said that Jiledina operates under _____.
theocratic law
The point of cognitive cultural intelligence quotient (CQ) is:
to understand key cultural differences and how they affect everyday business interactions.
Nibellia is a country in South America in which the government regulates every aspect of public and private life. The government maintains complete control over military, law, media, social organizations, education, religion, and the economy. It often uses a combination of terror tactics and propaganda to control the ways people think and feel. Given this information, it can be said that Nibellia is a(n) _____ state.
totalitarian
One way to make boards orient more around a long-term perspective is to:
use an ownership-based governance.
To fight resource constraints, a company should:
use more renewable sources of energy than nonrenewable sources of energy.
Know problems of underconsumption in an economy.
wealthy get wealthier, poor get poorer Local demand does not meet the amount produced in the economy. Leftover common goods are then sold internationally and the wealthy use increased income to make foreign investments