International Business Ch, 1-2
Which of the following is an example of globalization of production?
A U.S. company that builds a computer hardware manufacturing facility in India
________ tend to occupy the highest social layer in industrialized countries.
Business leaders
________ refers to the replacement of one culture's traditions, folk heroes, and artifacts with equivalents from another.
Cultural imperialism
is an effective alternative to traditional distribution channels for firms that sell digitized products.
Electronic distribution
________ markets are characterized by the rural population migrating to cities for better pay and thus, overloading cities' infrastructures.
Emerging
are all goods and services sold abroad and sent out of a country
Exports
________ refers to socially learned traits associated with, and expected of, men or women.
Gender
________ is increasing the pace of both cultural diffusion and cultural change.
Globalization
is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies
Globalization
Scenario: Jeans Unlimited Jeans Unlimited produces clothing for young adults. It designs its clothes at its New York headquarters and produces them at facilities located in two Southeast Asian countries. The company recently received negative press after one of its facilities was found using questionable labor practices, such as, employing children and operating in a manner that damages the environment. Which of the following arguments against globalization, if true, could be made using Jeans Unlimited as an example?
Globalization causes companies to produce goods in nations with the most lenient labor regulations.
________ is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service.
Globalization of production
Which of the following was created to regulate fixed exchange rates and enforce the rules of the International monetary system?
International Monetary Fund
________ is crucial in production facilities where nonnative managers supervise local employees.
Language proficiency
Scenario: Donna Bader, Globalization opponent Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good. Which of the following statements, if true, strengthens Donna's argument?
Many companies take advantage of lenient labor laws by setting up facilities in low-income countries.
Mika finds that he has very little control over several aspects of his life. Whether his education or occupation, the few options available to him are determined by his birth. Which of the following is a characteristic of Mika's society?
Mika belongs to a society in which there is little scope for mobility.
________ involves the idea that a nation-state is autonomous, cannot intervene in the affairs of other nations, and can enter into binding international agreements.
National sovereignty
________ place limits on the quantity of a product being imported.
Nontariff barriers
The ________ played a major role in the development of capitalism and free enterprise in nineteenth-century Europe.
Protestant work ethic
________ facilitate(s) the process of cultural imperialism.
Relaxed trade and investment barriers
________ is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage.
Situational management
________ refers to the ease with which individuals can move up or down a culture's social ladder.
Social inertia
Which of the following statements is true of developing countries that have embraced globalization?
The countries have experienced an increase in life expectancy
Which of the following statements is true of attitudes?
They are learned from role models
Olive oil prepared in a small Italian oil press factory and sold by large supermarkets in the United States is an example of a
U.S. import
Scenario: Donna Bader, Globalization opponent Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good. Which of the following statements, if true, weakens her argument?
With the exposure to new technology and cultural trends, the standard of living in developing countries has improved.
The ________ is an agency created to provide financing for national economic development efforts.
World Bank
The ________ replaced the institution of GATT while retaining all of the former GATT agreements.
World Trade Organization
Lingua franca is ________.
a "link" language understood by two parties who speak different native languages
Which of the following is a cultural component that implies gauging the beauty and appeal of artwork?
aesthetics
Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts?
attitudes
A folk custom can be defined as ________.
behavior, often dating back several generations, that is practiced by a homogeneous group of people
Ethnocentricity can be defined as the ________.
belief that one's own ethnic group or culture is superior to that of others
Which of the following terms is used to refer to widespread job turnover throughout an economy?
churning
Which of the following is the most common form of social stratification in the world today?
class system
As former competitors in many industries link up to challenge others on a worldwide basis, ________ occurs.
consolidation
Cultural change occurs when people integrate into their culture the gestures, material objects, traditions, or concepts of another culture through ________.
cultural diffusion
The practice of exchanging rings at weddings, which was initially a pagan ritual, is now followed by most people across the world. Which of the following does this illustrate?
cultural diffusion
Which of the following refers to the process by which cultural traits spread from one culture to another?
cultural diffusion
Critics of globalization say that global consumer-goods companies destroy ________ .
cultural diversity
The sale of Hollywood movies in Konesia has doubled in the last five years while those of locally-produced movies has fallen. In addition to this, sociologists have noted that currently, the teenagers of Konesia are less inclined to don their traditional costumes, preferring to adopt Western clothes instead. These changing trends illustrate ________.
cultural imperialism
Bob is a journalist who intends to spend the next five months exploring Konesia. In order to be able to fit in with the locals, he studies their culture in detail. He familiarizes himself with their tastes and preferences, takes note of their taboos, and memorizes many of their sayings and phrases. Which of the following terms best describes his actions?
cultural literacy
Detailed knowledge about a culture that enables people to work happily and effectively within it is called ________.
cultural literacy
A(n) ________ is anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts.
cultural trait
Which of the following terms is defined as the set of values, beliefs, rules, and institutions held by a specific group of people?
culture
Which of the following terms is used to refer to habits or ways of behaving in specific circumstances that are passed down through generations?
customs
As a result of globalization, Argonia finds that its national borders are becoming less relevant. This indicates that Argonia is undergoing ________.
denationalization
An established consumer market that primarily comprises the middle class and possesses efficient infrastructure is characteristic of ________ markets.
developed
Globalization tends to foster two important values, tolerance and ________.
diversity
Gentian Violet is a dye manufacturing company that uses computer networks to sell its products, service customers, and collaborate with partners. Which of the following technologies is the company engaging in this scenario?
e-business
Which of the following refers to the use of computer networks to purchase, sell, or exchange products; service customers; and collaborate with partners?
e-commerce
Opponents argue that globalization ________.
eliminates manufacturing jobs in developed nations
To minimize the economic inequality within developing nations, studies suggest that the nations can boost incomes of their poorest citizens by ________.
embracing globalization and integrating themselves into the global economy
Konesia is a country in which rising incomes are increasing the global demand for basic products and services. Which of the following is the type of market featured in this country?
emerging market
A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to ________.
enforce world trade rules
Globalization is criticized because it ________.
exploits workers in low-wage nations
A special region in which companies can engage in tariff-free importing and exporting is called a(n) ________.
export-processing zone
Which of the following terms applies to the sale of a particular brand of jeans manufactured in the U.S. and sold in Canadian stores?
exporting
cenario: Topsy Turvey Toys and Ureshi Toys Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. Ureshi Toys selling its products to Topsy Turvey Toys is an example of ________.
exporting
Nepotism often prevails in ________ cultures.
extended-family
The KOF Index measures the ________.
extent of globalization
Crystal inc. is a multifaceted company that deals with the mining, cutting, and selling of diamonds. It gives distributors and suppliers access to its database to place orders or restock inventories electronically and automatically. Which of the following is the network implemented in the company?
extranet
The rise of a new international entity called the ________ suggests that any company, regardless of age, experience, and resources, can engage in international business.
global firm
cenario: Topsy Turvey Toys and Ureshi Toys Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. The products that Ureshi Toys manufactures are examples of ________.
global products
Which of the following refers to convergence in buyer preferences in markets around the world?
globalization of markets
Scenario: Jeans Unlimited Jeans Unlimited produces clothing for young adults. It designs its clothes at its New York headquarters and produces them at facilities located in two Southeast Asian countries. The company recently received negative press after one of its facilities was found using questionable labor practices, such as, employing children and operating in a manner that damages the environment. Jeans Unlimited manufactures its clothing at facilities located in two Southeast Asian countries. The dispersal of manufacturing activities by the company indicates ________.
globalization of production
The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________.
gross national product (GNP)
Scenario: Topsy Turvey Toys and Ureshi Toys Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. Topsy Turvey Toys buying its merchandise from Ureshi Toys is an example of ________.
importing
Goods and services purchased abroad and brought into a country are called
imports
Supporters affirm that globalization ________.
increases wealth and efficiency in all countries
Any commercial transaction that crosses the borders of two or more nations is known as
international business
The global business environment consists of four distinct elements: the forces of globalization, national business environments, the international business environment, and
international firm management
The term ________ refers to entities cooperating across national boundaries
internationalization
Trade unions claim that by permitting international firms to continually move to nations with ________, globalization reduces labor's bargaining power and forces overall labor standards lower.
lower labor standards
According to the opponents of globalization, which of the following occurs as a result of worker dislocation brought about by globalization?
lower workers' wages in developed nations
cenario: Topsy Turvey Toys and Ureshi Toys Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. Ureshi Toys is an example of a(n) ________.
multinational company
A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a
multinational corporation
Define the fundamental concepts of international business
national boundaries becoming less relevant
Each ________ is composed of unique cultural, political, legal, and economic characteristics that define business activity within that nation's borders.
national business environment
The practice by which managers and other employees find jobs within their own companies for relatives is known as ________.
nepotism
A caste system is a system of social stratification in which ________.
people are born into a social ranking, with no opportunity for social mobility
A class system is a system of social stratification in which ________.
personal ability and actions determine an individual's social status and mobility
The purpose of the General Agreement on Tariffs and Trade (GATT) was to ________.
promote free trade
Some nations encourage ________ because of recent resistance to worldwide trade agreements.
regional pacts
Whereas relocating production to low-cost locales traditionally meant production of goods almost exclusively, it increasingly applies to the production of ________.
services
The three main goals of the World Trade Organization (WTO) are to help the free flow of trade, help negotiate the further opening of markets, and ________.
settle trade disputes between its members
Scenario: Donna Bader, Globalization opponent Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good. Her argument is vulnerable to criticism because it fails to ________.
show that political and cultural factors have been taken into account
Which of the following actions can be adopted by developed nations to lessen the negative effects of globalization?
slash agricultural subsidies that hurt the exports of developing nations
Which of the following terms is used to refer to the process of ranking people into social layers or classes?
social stratification
The Toro-Hessians are a minority group in the Margoza Archipelago, with a set of preferences, attitudes, and taboos, distinct from that of the national culture. Therefore, they are often overlooked when foreign businesses choose to customize their products for the inhabitants of the islands. The Toro-Hessian community is an example of ________.
subculture
Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture?
subculture
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs indicates ________.
sustainability
Scenario: Jeans Unlimited Jeans Unlimited produces clothing for young adults. It designs its clothes at its New York headquarters and produces them at facilities located in two Southeast Asian countries. The company recently received negative press after one of its facilities was found using questionable labor practices, such as, employing children and operating in a manner that damages the environment. Jeans Unlimited plans to set up new facilities that are designed specifically to reduce impact on the environment. The management has emphasized on recycling and reusing most of their resources. What concept is the company emphasizing on in this scenario?
sustainability
Two major forces that underlie the expansion of globalization are falling barriers to trade and investment, and ________.
technological innovation
Small companies selling traditional products benefit from
technology that lowers the costs and difficulties of global communication
Most companies today operate in an environment of increased transparency and scrutiny regarding their business activities. This is due to
the rise of the social media
Scenario: Donna Bader, Globalization opponent Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good. Upon what assumption does Donna's conclusion rest?
there are no factors other than globalization which influence the economic conditions of a country
The population of a(n) ________ market is mostly rural and is characterized by poor infrastructure with little credit or collateral.
traditional
Kireki is a small country with a corrupt government. Its population is rural for most part and citizens have few or no legal rights. Which of the following is the type of market featured in Kireki?
traditional market
Folk customs that spread by cultural diffusion to other regions develop into ________.
traditions
Which of the following terms is used to refer to the ideas, beliefs, and customs to which people are emotionally attached?
values
