International Business Homework Questions Test #2
Jarek was promoted to the international post because he had the ability to "put himself in another person's shoes" and understand why people in other countries behave the way they do. Which of Mendenhall and Oddou's dimensions does Jarek display? self-orientation cultural myopia perceptual ability ethnocentrism cultural toughness
perceptual ability
Some sociologists argue that __________ has a more rigid class structure than other Western societies, including the United States, because of its historical division into three main classes. South Africa India Italy Japan the United Kingdom
the United Kingdom
According to the results of a seminal study by R. L. Tung, the top reason why Japanese expatriate managers fail is the inability of their spouses to adjust. the lack of technical competence. their personal or emotional problems. the inability to cope with larger overseas responsibilities. their inability to deal with difficulties in the new environment.
the inability to cope with larger overseas responsibilities.
__________ is important for IBM as it pursues its transnational strategy. An ethnocentric staffing policy A high degree of localization A strong corporate culture A low degree of localization A polycentric staffing policy
A strong corporate culture
__________ are put in place to make it difficult for imports to enter a country. Free trade policies Consumer regulations Subsidies Administrative trade policies Open market plans
Administrative trade policies
How a society's culture affects the values found in the workplace is considerably important to an international business with operations in different countries. Management processes and practices may need to vary according to culturally determined work-related values. Decide which dimension of Hofstede's cultural values is represented. Then drag the name to the appropriate value. Individualism/Collectivism Ming Ben Elena Jiro Bill
Ben
As a trade theory, mercantilism was based on the idea that a trade surplus would lead to absolute advantage among all trading partners. first-mover advantages. lower levels of inflation and a steady economy. accumulations of gold and silver. lower levels of national wealth.
accumulations of gold and silver.
A high degrees of class consciousness in societies can be disruptive within industries, which can often lead to high levels of social mobility. healthy relationships between management and labor classes. low levels of industrial disruption. an increase in the costs of production. greater opportunities for businesses to establish competitive advantage.
an increase in the costs of production.
If Italy exports vast quantities of footwear to Germany, selling them at below their costs of production, it would be an example of monopolism. dumping. offshoring. nearshoring. subsidizing.
dumping
Intel spreads the huge fixed costs of developing new generation chips over the nearly 2 billion chips it sells to computer makers. Intel benefits from comparative advantages. factor endowments. economies of scale. diminishing returns. absolute advantages.
economies of scale
The manager in the video has lived and worked in multiple countries and considers those experiences important to her management development. Suppose a company has a staffing policy in which all key management positions are filled by parent company nationals. That company has a(n) __________ staffing policy. geocentric polycentric ethnocentric global-centric transnational
ethnocentric
The manager in the video has lived and worked in multiple countries and considers those experiences important to her management development. Suppose a company has a staffing policy in which all key management positions are filled by parent company nationals. That company has a(n) __________ staffing policy. transnational global-centric polycentric geocentric ethnocentric
ethnocentric
Which situation exemplifies a violation of a folkway? committing a financial fraud practicing cannibalism under the belief that it leads to superpowers failing to greet a person you know stealing an author's or an inventor's intellectual property committing mail fraud
failing to greet a person you know
The economic and strategic advantages that accrue to early entrants in an industry are called first-mover advantages. comparative advantages. absolute advantages. economies of scale. factor endowments.
first-mover advantages.
Some countries limit the amount of sugar that can be imported. This restriction is called a(n) voluntary export restraint. ad valorem tariff. import quota. local content requirement. government subsidy.
import quota
On Track Limited has an order to sell 50,000 pieces of fitness equipment to Brazil, but the Brazilian government stipulated that 35 percent of the component parts of the equipment must be produced in Brazil. This stipulation is an example of a(n) voluntary export restraint. quota rent. import quota. local content requirement. antidumping policy.
local content requirement.
Which theory asserts that countries should simultaneously encourage exports and discourage imports? free trade capitalism new trade mercantilism socialism
mercantilism
Iroquois Brands, a Singapore-based gemstone company, continuously expands into Africa to source and process commodities. The company finds that many of these countries lack advanced higher education institutions, and thus decides to pursue an ethnocentric senior staffing policy in Africa. This is most likely because the management of Iroquois Brands believes in providing growth opportunities to host-country nationals. wants to avoid cultural myopia. believes host countries lack qualified individuals for senior management positions. wants to keep all core competencies within the home country. wants to build strong informal management networks in all its subsidiaries.
believes host countries lack qualified individuals for senior management positions.
When Sari learned that Mary was from a poor neighborhood in the south of town, she decided to stop befriending her since her own family lives in a wealthy neighborhood along the beach. Sari's choice is an example of social mobility. class consciousness. cross-culture literacy. extended social groups. class representativeness.
class consciousness.
When compared to American society, some argue that Japanese society is characterized by a lack of commitment to lifetime employment. emphasis on group memberships. self-managing work teams. close cooperation between individuals. entrepreneurship.
entrepreneurship.
Which staffing policy is concerned with filling all key management positions by parent-country nationals? ethnocentric global polycentric geocentric transnational
ethnocentric
According to the Heckscher-Ohlin theory, the pattern of international trade is affected by differences in labor productivity diminishing returns factor endowments management practices trade barriers
factor endowments.
Preston Audio, a German audio equipment manufacturer, has a policy of appointing the best person for the job in its various locations regardless of the candidate's nationality. Which staffing policy best describes Preston Audio's approach? local ethnocentric geocentric polycentric transnational
geocentric
Within an international business, __________ is typically responsible for international labor relations. public relations human resource management finance and accounting legal logistics
human resource management
A group of people who share a common set of values and norms is called a(n) alliance. team. cohort. society. folkway.
society
The United States has raised the taxes on tomatoes imported from Mexico. These taxes are an example of a(n) subsidy referendum antidumping policy. local content requirement. tariff.
tariff
According to Confucian thought, being loyal to one's superiors is considered an optional practice. a sign of ethnocentrism and stereotyping. a negative response. an absolute obligation. less important than loyalty to family.
an absolute obligation.
A drawback of IBM's staffing approach is that it represents an inefficient use of human resources builds a strong culture can be expensive to implement produces resentment in the host country isolates headquarters from foreign subsidiaries
can be expensive to implement
A major distinction between a conventional bank and an Islamic bank is that Islamic banks are allowed to charge higher interest rates on loans cannot accept private deposit cannot pay or charge interest are not subject to any form of law are supposed to refrain from making a profit through any source
cannot pay or charge interest.
A country follows a system of social stratification that allows for flexibility in terms of social mobility. In this system of open stratification, the status of a person is solely determined by his or her own socioeconomic achievements. This country is most likely to be following what system of social stratification? caste class religious grade bureaucratic
class
polycentric disadvantage and advantage
dis: HQ isolated ad: inexpensive
ethnocentric disadvantage and advantage
dis: cultural myopia ad: competency transfer
The United States and Kenya are exploring the possibility of a trade deal. ________ refers to a situation in which a government does not attempt to restrict what its citizens can buy from or sell to another country. Bilateral trade Tariff free trade The World Trade Organization The General Agreement on Tariffs and Trade Free trade
free trade
According to Max Weber, the Protestant tributes of hard work, wealth creation, and __________ fostered the emergence of modern capitalism. polychronic time positivity ethnocentrism monochronic time frugality
frugality
The manager in the video discusses the importance of living and working in different countries. If an international firm wants to build a strong corporate culture and informal management network, the firm should choose a(n) __________ staffing strategy. geocentric transnational ethnocentric polycentric global-centric
geocentric
The manager in the video discusses the importance of living and working in different countries. If an international firm wants to build a strong corporate culture and informal management network, the firm should choose a(n) __________ staffing strategy. geocentric transnational global-centric polycentric ethnocentric
geocentric
A high degree of managerial mobility in societies that emphasize individualism can lead to reduced costs of doing business. increased managerial loyalty and commitment to an individual company. lack of company-specific experience, knowledge, and a network of contacts among managers. lack of exposure among employees to different ways of doing business. inability to apply good practices and techniques developed in one firm to other firms.
lack of company-specific experience, knowledge, and a network of contacts among managers.
A company that wants to market winter gear to citizens of Alaska should be aware that there are 24 words used in the state to describe different types of snow. This shows how __________ structures how we perceive the world and defines a culture. language nonverbal cues listening perception dissonance
language
Economies of scale are achieved as the result of __________ that creates unit cost reductions. trade policies increased tariffs large scale output diminishing returns absolute advantages
large scale output
If the United States levies a tariff of $0.50 on every pound of coffee imported from Kenya, the United States has levied a specific tariff on imported coffee from Kenya. levied an ad valorem tariff on imported coffee from Kenya. levied a transit tariff on imported coffee from Kenya. violated its free trade agreement with Kenya. implemented a voluntary restraints agreement (VRA) on coffee from Kenya.
levied a specific tariff on imported coffee from Kenya.
Russians tend to rank ________ on individualism and _______ on uncertainty avoidance. low; low high; low high; high high; moderate low; high
low, high
Which trade strategy is in a country's best interests, according to the main tenet of mercantilism? importing products from developing nations importing products even if they are efficiently produced at home importing less specialized goods rather than attempting to make them at home minimizing exports and maximizing imports maintaining a trade surplus
maintaining a trade surplus
Which theory states that in those industries where the output required to attain economies of scale represents a significant proportion of total world demand, the global market may be able to support only a small number of enterprises? Heckscher-Ohlin comparative advantage product life-cycle new trade absolute advantage
new trade
Which aspect of organizational architecture is considered the linchpin that brings together all of the other components? culture people processes structure product
people
According to Mendenhall and Oddou, __________ provides an expatriate the ability to understand why people of other countries behave the way they do. cultural toughness perceptual ability self-orientation others-orientation willingness to communicate
perceptual ability
The manager in the video discusses the use of the word "no" in Indonesia and how her experiences in Indonesia help her better understand Indonesian colleagues. Which dimension identified by Mendenhall and Oddou focuses on the ability to understand why people of other countries behave the way they do? cultural toughness other orientation perceptual ability cultural mindset self-orientation
perceptual ability
A mudarabah contract might be categorized as a(n) __________ in the United States. profit-sharing scheme mortgage personal loan unethical transaction property tax
profit-sharing scheme
According to Mendenhall and Oddou, what dimension for predicting success in a foreign posting strengthens an expatriate's self-esteem, self-confidence, and mental well-being? cultural toughness others-orientation perceptual ability self-orientation empathy
self-orientation
Natalie is considered an excellent candidate for the foreign job posting because she is self-confident and demonstrates strong self-esteem. Mendenhall and Oddou would label these characteristics as perceptual ability. self-orientation. others-orientation. cultural toughness. empathy.
self-orientation.
Janine values individual freedom, democracy, and loyalty, and she believes all Americans do the same. This belief is an expression of Janine's values. ethics. folkways. norms. cohorts.
values
The general acceptance by Russians of hierarchy and power differentials arising from social status reflects their norms. values. folkways. mores. conventions.
values
An American businessperson in Russia who recognizes that a lack of a smile by their Russian counterpart does not indicate that the American has done anything wrong might have trouble understanding Russian behavior. lost the deal they were working on. a high degree of cross-cultural literacy. a poor understanding of Hofstede's theory. a strong focus on individualism.
a high degree of cross-cultural literacy
geocentric disadvantages and advantages
dis: expensive ad: builds strong networks
What staffing policy relies extensively on the use of expatriate managers? global polycentric transnational ethnocentric home-country
ethnocentric
Kendrik, a U.S. citizen, is the operations manager at the Middle East office of Creston Builders Inc., an American firm. In this situation, Kendrik is a(n) __________ manager. repatriate host-country inpatriate expatriate virtual
expatriate
In the context of social structure, comparatively American society is characterized by a low degree of social stratification. mobility between strata. entrepreneurial activity. managerial mobility. dynamism and innovation.
social stratification
Karon was born into a family that owns numerous corporations and more than one multimillion dollar home. She never worried about paying for college or buying her own car. These characteristics define Karon's mores. social stratum. folkways. values. caste system.
social stratum
According to the Smith, Ricardo, and Heckscher-Ohlin theories, a country's economy may gain if its citizens buy some products from other nations that could be produced in their home nation. What is the reasoning behind this idea? The natural resources of a country limit the types and quantities of items that can be produced. International trade is typically regulated by government forces that prevent a business from exporting. International trade allows a country to specialize in items that can be produced most efficiently in that country. First-mover advantages limit a country from producing every product that citizens need or want. Innovative products are typically produced in the home country, but high-demand products should be imported.
International trade allows a country to specialize in items that can be produced most efficiently in that country.
In one country, people are traditionally conscious about their socioeconomic backgrounds. This in turn regulates their relationships with members of other classes. What will most likely result from this heightened class consciousness? The mobility between the social classes of the society will increase. The level of industrial disruption and industrial disputes will be low. Most of the population will perceive itself to be middle class. An antagonistic relationship will exist between management and labor classes. Successful individuals, irrespective of their origins, will be highly respected.
An antagonistic relationship will exist between management and labor classes.
How a society's culture affects the values found in the workplace is considerably important to an international business with operations in different countries. Management processes and practices may need to vary according to culturally determined work-related values. Decide which dimension of Hofstede's cultural values is represented. Then drag the name to the appropriate value. Time orientation: Ming Ben Elena Jiro Bill
Bill
China has been accused of prohibiting U.S. companies that offer cloud computing from offering their services in China. Which argument best explains this? China wants to protect its firms from their more competitive U.S. rivals. China is hoping to limit the use of cloud computing in China. Chinese firms in cloud computing offer more services than American firms. China would like to develop a superior technology to cloud computing. Chinese firms in the cloud computing industry are more competitive than U.S. companies.
China wants to protect its firms from their more competitive U.S. rivals.
China has been accused of prohibiting U.S. companies that offer cloud computing from offering their services in China. Which argument best explains this? China wants to protect its firms from their more competitive U.S. rivals. Chinese firms in the cloud computing industry are more competitive than U.S. companies. China would like to develop a superior technology to cloud computing. China is hoping to limit the use of cloud computing in China. Chinese firms in cloud computing offer more services than American firms.
China wants to protect its firms from their more competitive U.S. rivals.
Which ethical system has influenced behavior and shaped culture in parts of Asia, but is not considered a religion? Confucianism Hinduism Islam Christianity Buddhism
Confucianism
Which statement best conceptualizes the relationship between trade and economic growth? Countries open to international trade display higher growth rates than those that close their economies to trade. Within a group of developing countries, closed economies grow faster than open economies. The Leontief paradox notes that adopting an open economy and embracing free trade does not reward a nation with higher economic growth. Free trade hampers economic growth and leads to lower living standards in the long run. Free trade has historically benefited poor counties and hence trade barriers should be introduced to protect rich countries from exploitation.
Countries open to international trade display higher growth rates than those that close their economies to trade.
Suppose a Japanese company has branch offices in Spain where Spanish is spoken at work, and France where French is spoken at work. Which is true? Unspoken language encounters are more important than spoken encounters. Cultural misunderstandings occur even when everyone is working toward the same goal. Societal cultural differences disappear because everyone shares a common organizational culture. It is essential to adopt a common language of business. The home country societal language dominates in all managerial settings.
Cultural misunderstandings occur even when everyone is working toward the same goal.
The infant industry argument suggests that protecting infant industries from foreign competitors will allow them time to become large enough to enjoy economies of scale. Who typically wins and who loses from a government policy to protect infant industries? Foreign producers, domestic producers, domestic consumers, and the home government all lose. Domestic consumers lose, while domestic producers, foreign producers, and the home government all gain. The home government gains, while domestic producers, foreign producers, and domestic consumers all lose. Domestic consumers and domestic producers gain, while foreign producers and the home government lose. Domestic consumers and foreign producers lose, while the home government and home producers gain.
Domestic consumers and foreign producers lose, while the home government and home producers gain.
How a society's culture affects the values found in the workplace is considerably important to an international business with operations in different countries. Management processes and practices may need to vary according to culturally determined work-related values. Decide which dimension of Hofstede's cultural values is represented. Then drag the name to the appropriate value. Uncertainty avoidance: Ming Ben Elena Jiro Bill
Elena
What is the most widely spoken language in the world, and is increasingly becoming the language of international business? Mandarin French English Spanish German
English
Which theory predicts that countries will export those goods that make intensive use of factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce? mercantilism theory of absolute advantage Heckscher-Ohlin theory theory of comparative advantage Samuelson's critique
Heckscher-Ohlin theory
Armen's religion believes in the spiritual progression of each person's soul and that dharma is the moral force guiding behavior. Which religion does this describe? Hinduism Islam Protestantism Buddhism Catholicism
Hinduism
Max Weber argued that the ascetic principles embedded in __________ do not encourage entrepreneurial activity in pursuit of wealth creation. Islam Hinduism Confucianism Protestantism capitalism
Hinduism
What is a characteristic of Islamic values, norms, and rituals? Islam has roots in Confucianism. Islamic ethics support worldly gain and temporal power. Islam forbids the consumption of pork and alcohol. Islam makes a clear distinction between church and state. Unlike Christianity and Judaism, Islam is not a monotheistic religion.
Islam forbids the consumption of pork and alcohol.
How is a geocentric staffing policy beneficial to a firm? It requires the firm to provide little or no documentation to hire a foreign national. It is inexpensive to implement. It helps the firm follow a localization strategy. It allows all key management positions to be filled by parent-country nationals. It enables the firm to make the best use of its human resources.
It enables the firm to make the best use of its human resources.
What is an advantage of a polycentric staffing approach? It is less expensive to implement as compared to other staffing approaches. It gives host-country nationals unlimited opportunities to gain experience outside their own country. It increases career mobility. It increases interaction between the headquarters of a firm and its foreign subsidiaries. It bridges the gap between host-country managers and parent-country managers.
It is less expensive to implement as compared to other staffing approaches.
what is the best definition of personal space? It is the amount of distance to be maintained from the audience in order to be audible to them. It is a psychological phase wherein a person has free flowing thoughts. In ergonomics, it is the minimum amount of space required by an average employee in order to work efficiently. It is the comfortable amount of distance between you and someone you are talking with. It is the amount of space a country has per person and is arrived at by dividing the country's total geographical area by its total population.
It is the comfortable amount of distance between you and someone you are talking with.
Charleston Ceramics, a U.S. dinnerware products company, follows a polycentric staffing approach, and key positions at the company's U.S. headquarters are staffed by U.S. nationals while foreign subsidiaries are managed by locals. While the company's international business has grown exponentially in the past five years, greater competition in the United States has caused this office to see a decline in sales and many top U.S. managers are leaving the company. What drawback to a polycentric approach might explain this? It is expensive to implement. It leads managers to make mistakes due to cultural misunderstandings. It limits advancement opportunities for managers. It invariably makes a firm suffer from cultural myopia. It bridges the gap between the headquarters of a firm and its foreign subsidiaries.
It limits advancement opportunities for managers.
What is a characteristic of an ethnocentric staffing policy? It requires host-country nationals to be recruited to manage subsidiaries. It is used when a firm places a low value on its corporate culture. It increases advancement opportunities for host-country nationals. It seeks the best people for key jobs throughout the organization, regardless of nationality. It places parent-country nationals in key management positions.
It places parent-country nationals in key management positions.
There are vast differences in local market needs in the consumer energy drink business around the world. Tall Trees Media, a U.S. multinational advertising agency, specializes in the energy drink industry and uses a geocentric staffing approach. What advantage would the company gain by using this approach? It tends to reduce cultural myopia and enhance local responsiveness. It is inexpensive to implement. It reduces the costs of value creation. It allows all key management positions of a firm and its subsidiaries to be filled by parent-country nationals. It requires minimal documentation for hiring foreign nationals.
It tends to reduce cultural myopia and enhance local responsiveness.
How a society's culture affects the values found in the workplace is considerably important to an international business with operations in different countries. Management processes and practices may need to vary according to culturally determined work-related values. Decide which dimension of Hofstede's cultural values is represented. Then drag the name to the appropriate value. Masculinity/Femininity: Ming Ben Elena Jiro Bill
Jiro
How a society's culture affects the values found in the workplace is considerably important to an international business with operations in different countries. Management processes and practices may need to vary according to culturally determined work-related values. Decide which dimension of Hofstede's cultural values is represented. Then drag the name to the appropriate value. Power Distance: Ming Ben Elena Jiro Bill
Ming
Some sociologists argue that the __________ branch of Christianity has had the greatest effect on the economy. Orthodox Muslim Catholic Jewish Protestant
Protestant
According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, what is a result of the attribute of others-orientation? The expatriate has high self-esteem. The expatriate empathizes with the host-country nationals. The expatriate makes an effort to use the local language. The expatriate adjusts to the inhospitable climate of the host country. The expatriate is comfortable working in a male-dominated environment.
The expatriate makes an effort to use the local language.
Which best describes the manager in the video? The manager has been able to maintain her ethnocentric approach to leadership even while moving to different countries. The manager's experiences in Africa have enabled her to avoid expatriate failure. The manager's ability to speak multiple foreign languages has proved to be the key to success in her foreign assignments. The manager's experiences living and working in foreign countries has helped her to develop a global mindset. The manager believes that a polycentric approach to management is important for leadership.
The manager's experiences living and working in foreign countries has helped her to develop a global mindset.
Which best describes the manager in the video? The manager's experiences in Africa have enabled her to avoid expatriate failure The manager has been able to maintain her ethnocentric approach to leadership even while moving to different countries. The manager's experiences living and working in foreign countries has helped her to develop a global mindset. The manager's ability to speak multiple foreign languages has proved to be the key to success in her foreign assignments. The manager believes that a polycentric approach to management is important for leadership.
The manager's experiences living and working in foreign countries has helped her to develop a global mindset.
Which statement about most Western societies is true? In Western societies groups, rather than individuals, are the basic building blocks of social organization. The value systems of many Western societies emphasize individual achievement. In Western societies, the social standing of individuals is merely a function of who they work for. The emphasis on individuals in Western societies has led to a low level of entrepreneurial activity. It is easier to build and manage teams within organizations in Western societies.
The value systems of many Western societies emphasize individual achievement.
What is a characteristic of high uncertainty avoidance cultures? They place importance on job flexibility and indefinite career patterns. They allow a manager to tightly control subordinates' initiatives. They demonstrate less emotional resistance to change. They are characterized by a greater readiness to take risks. They oppose the use of rules and regulations to exercise control over individuals.
They allow a manager to tightly control subordinates' initiatives.
Alexander Hamilton argued that tariffs are an effective means of protecting infant industries until they are better able to compete. Which is not true of tariffs used to protect infant industries? They discourage greater efficiency in the protected industry. They impose significant costs on consumers in the form of higher prices. They are typically anti-consumer. They are typically pro-producer. They promote more efficient use of resources.
They promote more efficient use of resources.
Currently, the United States and Kenya do not have a trade agreement. If the United States imposes an import tariff on products from Kenya typically U.S. consumers gain, Kenyan producers gain, and the U.S. government gains. Kenyan consumers lose, Kenyan producers lose, and the Kenyan government gains. U.S. consumers lose, U.S. producers gain, and the U.S. government gains. Kenyan consumers gain, U.S. producers lose, and the Kenyan government gains. U.S. consumers lose, U.S. producers lose, and the Kenyan government gains.
U.S. consumers lose, U.S. producers gain, and the U.S. government gains.
According to the survey by Towers Watson, which country provides the highest pay to CEOs? Switzerland United States Japan Australia Argentina
United States
What is one difference between folkways and mores? Folkways are norms that are seen as central to the functioning of a society, whereas mores are the routine conventions of everyday life. Violating mores tends to bring more serious retribution than violating folkways. Folkways exclude rituals and symbolic behaviors included in mores. Folkways have much greater significance than mores. Mores cannot be enacted into laws, whereas folkways can.
Violating mores tends to bring more serious retribution than violating folkways.
One of the central beliefs of mercantilism is that a country's government should intervene to achieve a surplus in the balance of trade. a large volume of trade is essential regardless of whether it comes from imports or exports. trade is a positive-sum game in which all countries benefit from trading with each other. a country that has an absolute advantage in the production of all goods derives no benefits from international trade. potential world production is greater with unrestricted free trade than it is with restricted trade.
a country's government should intervene to achieve a surplus in the balance of trade.
The insistence of the U.S. manager that the German staff do the traditional Walmart cheer suggests that the manager has a global mindset. a lack of cross-cultural literacy on the part of the U.S. manager. that the manager ranks high on Mendenhall and Oddou's others orientation dimension. that the manager ranks high on Mendenhall and Oddou's self-orientation dimension. that the manager has a strong perceptual ability.
a lack of cross-cultural literacy on the part of the U.S. manager.
A European nation specializes in engine parts, while its geographical neighbor specializes in automobiles. Each country exports the product it specializes in to the other country. According to the theory of comparative advantage, this mutually beneficial trade relationship best illustrates the significance of trade barriers. a positive-sum game. a first-mover advantage. the advantages of mercantilism. a zero-sum game.
a positive-sum game.
As part of its effort to protect its auto makers from foreign competition, suppose Brazil levied a tariff based on a proportion of the value of the product. Brazil would be imposing a(n) _______ tariff. fixed transit uniform specific ad valorem
ad valorem
A charge of 16 percent is levied by the government of a foreign nation on the value of refrigerator and freezer components imported from a neighboring country. This results in an increase in the price of those imported appliances for the consumer. This foreign nation is using a(n) local content tariff. ad valorem tariff. subsidy import quota. antidumping duty.
ad valorem tariff
Brazil used tariffs to protect its auto industry in the 1950s. Tariffs: are paid for by foreign governments. typically lower the price of products for consumers. are taxes levied on imports or exports. are levied by an industry to protect firms from competition. produce revenue for the firm.
are taxes levied on imports or exports.
One difference between Ricardo's theory and the Heckscher-Ohlin theory is that the Heckscher-Ohlin theory makes more simplifying assumptions. cannot be subjected to empirical tests. actually predicts trade patterns with greater accuracy. argues that the pattern of international trade is determined by differences in national factor endowments. suggests that trade is a positive-sum game in which all countries that participate realize economic gains.
argues that the pattern of international trade is determined by differences in national factor endowments.
According to the video, which would be the most beneficial quality for an international business manager? being able to understand the perspective of a receiver of a message. having a local office. being able to speak more than one language. having a local assistant to provide clarity having the ability to speak slowly and clearly.
being able to understand the perspective of a receiver of a message.
In 1904, Max Weber theorized that there was a relationship between Protestantism and personal happiness freedom capitalism ethics manufacturing
capitalism
In one country, citizens are restricted from moving out of the stratum they are born into. Also, individuals are allowed to engage only in the same occupation as their parents. The system of social stratification being practiced is a __________ system. cluster caste merit-based class bureaucracy-based
caste
What is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime? caste system merit system class system collectivism individualism
caste system
Which trade theory suggests that trade is a positive-sum game in which all participating countries realize economic gains? Heckscher-Ohlin theory mercantilism comparative advantage Leontief's paradox Samuelson critique
comparative advantage
At a job fair, a recruiter explained to Marcia that his company not only looks for employees who have college degrees and work experience, but also those who have the same beliefs and value systems as the company. What aspect of the company is the recruiter referring to? corporate social responsibility cultural toughness cultural sensitivity corporate culture perceptual ability
corporate culture
New trade theory argues that, through its impact on economies of scale, trade can streamline the variety of goods available to consumers. enable the global market to support a wide range of enterprises. negatively affect the first-mover advantage for all products decrease the average cost of goods. prevent diminishing of returns and promote constant returns to specialization.
decrease the average cost of goods.
The group that benefits the most from receiving subsidies is government international organizations such as the WTO. domestic producers. importers foreign competitors.
domestic producers
Data security software is an expensive process, but manufacturers are able to spread out the costs of the software development over the hundreds of thousands of security programs sold to consumers. What is helping to drive down costs per unit in this situation? antidumping measures economies of scale diminishing returns labor productivity first-mover advantages
economies of scale
A(n) __________ staffing approach is compatible with an international strategy but can produce resentment in the host country. ethnocentric geocentric polycentric transnational ethical
ethnocentric
John is developing the training program for employees at his company's newest fast food franchise in Moscow. In addition to training staff members on the appropriate food handling methods, John wants the employees in Moscow to follow the greeting protocol used in the United States of always saying hello and smiling at customers as they walk in the door. John is taking a(n) ___________ approach to training and managing the staff at the Moscow store. polycentric ethnocentric geocentric multicentric transcentric
ethnocentric
The effort by the U.S. manager to implement policies that had worked in the United States, such as smiling at customers as they entered the store, with little concern as to whether they were appropriate for the German culture can best be described as polycentric. ethnocentric. geocentric. globalcentric. transcentric.
ethnocentric.
With its decision to head its operation in Germany with an American manager from the Bentonville headquarters, Walmart's staffing policy in Germany can best be described as polycentric. geocentric. ethnocentric. transcentric. globalcentric.
ethnocentric.
Caterina argues to anyone who will listen that the cultural group she belongs to is superior. As a result, she has developed a reputation in her company as being intolerant of employees from other cultures. Caterina's behavior is known as cultural convergence Confucian dynamism ethnocentrism cultural literacy class consciousness
ethnocentrism
The United States has accused China of contributing to the skyrocketing price of aluminum. encouraging cloud computing firms to export their services to China but not to invest. facilitating its own textile industry at the expense of the United States reducing barriers in the financial sector, but not in the steel industry. exacerbating the global glut of steel by investing in additional production.
exacerbating the global glut of steel by investing in additional production.
An employee of IBM who is from India but is working in the United States can be described as a(n) __________ manager. ethnocentric transnational cross cultural polycentric expatriate
expatriate
Airbus pioneered the development of the new superjumbo jet at a cost of $15 billion. It quickly obtained contracts for many of the 400 units that are expected to be ordered in the next 20 years, thereby effectively shutting out its competitor, Boeing. Airbus benefits from first-mover advantages. comparative advantages. absolute advantages. economies of scale. factor endowments.
first-mover advantages.
Roberto knows it is important for him to dress appropriately and make sure his hair is neatly trimmed when he goes for an interview because the employer will expect him to do so. This example of a social convention is called a folkway. value. mandate. rule. taboo.
folkway
When she visited Italy, Catherine noticed that restaurants were slower to deliver food and expected customers to stay longer than she was used to in the U.S. This is an example of a folkway. value. more. law. rule.
folkway
Recognizing that Russians typically only smile in response to something funny reflects an understanding of which part of Russia's culture? society mores folkways values stoicism
folkways
As an enticement to accept a new job position within her company, Kendra is offered a $10,000 "bonus" if she transfers from the San Diego office to the Tokyo office. This "bonus" is called a(n) allowance balance sheet approach commission parity adjustment foreign service premium
foreign service premium
Which argument for government intervention in trade best describes the rationale behind the United States' interest in negotiating a trade deal with Kenya? infant industry furthering foreign policy objectives protecting national security protecting jobs and industries retaliation
furthering foreign policy objectives
The staffing policy at IBM can best be characterized as polycentric geocentric ethnocentric transcentric multicentric
geocentric
William has accepted a position at his company's office in South Africa. This will be a challenge to him as he currently works out of the U.S. office and will not have basic amenities like retail stores and comparable health care in his new location. His company plans to offer him a(n) __________ allowance to compensate for these deficiencies. education housing hardship cost of living
hardship
According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, an individual exhibiting an others-orientation would be able to only use the home-country language. display low self-esteem. be more focused on self. be unable to adjust to a foreign posting. have the ability to interact with host-country nationals.
have the ability to interact with host-country nationals.
In a social context, the term values is used to describe the economic benefits inherent to a culture. collective wealth of the society. ideas about what a group believes to be good, right, and desirable. political preferences of a country. social rules and guidelines about appropriate behavior in public.
ideas about what a group believes to be good, right, and desirable.
According to the results of a seminal study by R. L. Tung, what was the major reason for expatriate failure among European expatriates? personal or emotional problems inability to cope with overseas responsibilities poor pay inability of spouse to adjust to a new environment lack of technical competence
inability of spouse to adjust to a new environment
According to new trade theory, trade, through its impact on economies of scale, is most likely to reduce the volume of the goods produced. increase the variety of goods available to consumers. increase the average costs of goods. inhibit first-mover advantages in all industries. benefit only nations that differ in resource endowments or technology.
increase the variety of goods available to consumers.
After many months of communicating via email and telephone, Jade is eager to meet her Russian colleague, Irina, at a trade show in St. Petersburg, Russia. Jade is upset and offended, however, when Irina fails to return her warm smile when they finally meet in person. Jade should be embarrassed for Irina. should be offended by Irina's greeting. might want to reevaluate her friendship with Irina. is demonstrating a lack of cross-cultural literacy. could consider speaking to Irina's boss about her behavior.
is demonstrating a lack of cross-cultural literacy.
One of the downsides to an emphasis on individualism is that it is difficult to build teams within an organization to perform collective tasks. does not support entrepreneurship and innovation. discourages managerial mobility. fails to foster general managerial skills required to find solutions to current problems. discourages competition among employees within a company.
is difficult to build teams within an organization to perform collective tasks.
One of the most important things an international businessperson can do to avoid cultural misunderstandings is to choose a common language like English. ensure that contracts are tightly worded. listen to your client or customer. adopt a laissez faire attitude. hire an interpreter.
listen to your client or customer.
Mandarin Chinese is the mother tongue of the largest number of people, but English is the most widely spoken language in the world. This indicates that many people speak English as a second language. many native English speakers are learning Chinese. the population of native English speakers exceeds that of China. Chinese will soon overtake English as the most widely spoken language. Chinese is increasingly becoming the language of international business.
many people speak English as a second language.
When traveling to another country on business, Jacob was shocked to meet a male nurse. In his hometown, nurses were always female. Jacob's home country culture displays a high degree of which of Hofstede's cultural dimensions? collectivism masculinity low uncertainty avoidance high power distance class consciousness
masculinity
Joshua decided that the only way he could pay back his auto loan was to transfer funds from the company where he worked directly into his personal account. He also knows that if he gets caught, he will probably spend time in jail. Joshua's choice represents a violation of folkways. mores. rituals. etiquette. precepts.
mores
According to Ricardo's theory of comparative advantage, consumers in all nations can consume more if there are stronger restrictions on trade. more monopolistic businesses. fewer incentives for intellectual property. no restrictions on trade. fewer monopolistic businesses.
no restrictions on trade.
In a society, actions of people directed toward one another are governed by a set of social rules called norms. manifestoes. laws. scriptures. dialects.
norms
The manager in the video discusses the use of the word "no" in Indonesia and how her experiences in Indonesia help her better understand Indonesian colleagues. Which dimension identified by Mendenhall and Oddou focuses on the ability to understand why people of other countries behave the way they do? self-orientation cultural toughness cultural mindset other orientation perceptual ability
perceptual ability
Garret Plastics, a United States-based company, is clear-cut in its human resources policy with regard to international expansion. While U.S. nationals staff key positions at its Atlanta, Georgia, headquarters, it recruits locals to manage subsidiaries in each country into which Garret expands. Garret Plastics' staffing policy is geocentric. polycentric. ethnocentric. global. transnational.
polycentric
Which of Hofstede's dimensions focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities? individualism versus collectivism power distance uncertainty avoidance masculinity versus femininity Confucian dynamism
power distance
When Tyrell accepted the job in England, he and his family received information on the best roads to take to get their children to school, where to shop for groceries, and referrals for medical and dental care. What kind of training did they receive? cognitive practical language cultural ethical
practical
Ultimately, antidumping policies are put in place to protect consumers from high prices prevent domestic firms from unloading their excess production in domestic markets protect domestic producers from unfair foreign competition protect consumers from substandard and hazardous products prevent foreign products from entering domestic market
protect domestic producers from unfair foreign competition
Repatriation refers to sending expatriate managers to a new host country. training expatriate managers to adjust to the new environment of the host country. reentry of expatriate managers into their home-country organization. helping expatriate managers build rapport with local employees. increasing expatriate managers' effectiveness in dealing with host-country nationals.
reentry of expatriate managers into their home-country organization.
A nation that imposes a fixed charge of $3 per barrel of oil imported into the country is relying on which instrument of trade? specific tariff GATT tariff subsidies import quotas antidumping duties
specific tariff
Liam Fletcher of Next Step Financial Group works in the human resource department and is responsible for developing criteria for matching prospective employees to available jobs. What is Liam responsible for? compensation policy staffing policy performance appraisal policy training policy management development policy
staffing policy
The United States is demanding that China reduce overcapacity in which industry? automotive steel textiles rice wheat
steel
If China provides cash assistance to its companies in the steel industry, China is using which type of trade instrument? voluntary export restraint subsidy ad valorem tariff import quota specific tariff
subsidy
In some years, the U.S. government has paid soybean farmers an additional $1.65 on every bushel of soybeans they sell. This money is an example of a(n) local content tariff. ad valorem tariff. subsidy import quota. antidumping duty.
subsidy
The request by the U.S. manager that all meetings at the German headquarters be held in English indicates Walmart's organizational architecture is consistent with its strategy. a strong fit between Walmart's human resource practices and its global strategy. Walmart is pursuing a localization strategy. the U.S. manager received inadequate training for his assignment in Germany. Walmart is pursuing a polycentric staffing policy.
the U.S. manager received inadequate training for his assignment in Germany.
Hiroko lives in Japan. She belongs to many groups, but the one that is most important to her in terms of her status is most likely the immediate family. social peers traditional friendships the company she works for her educational institution
the company she works for
In the video, the phrase "lost in translation" refers to the misunderstandings that occur when people in different countries interpret a message differently than was intended. the situation that occurs when another language doesn't have a word for something. sending a message in one language and translating it into another. the multiple definitions a single word can have. the use of unspoken language rather than spoken.
the misunderstandings that occur when people in different countries interpret a message differently than was intended.
Expatriate failure refers to the premature return of an expatriate manager to his or her home country. the demise of a foreign direct investment opportunity. the return of exported goods due to damage from transport. the emotional transition all expatriates go through. a lack of technical competence among foreign nationals.
the premature return of an expatriate manager to his or her home country.
Job security and retirement benefits are extremely important to an entry-level employee. Hofstede would say this employee exhibits high collectivism. masculinity. uncertainty avoidance. power distance. class consciousness.
uncertainty avoidance.
Kristina felt very uncomfortable while talking to the store manager because he moved so close to Kristina that his face was just inches away. What aspect of the situation was bothering Kristina? verbal cues punctuation speech tone unspoken language voice modulation.
unspoken language
Many Russians feel that smiling when nothing funny has happened is odd. Smiling is an example of a folkway. mores. verbal communication. unspoken language. ethnocentrism.
unspoken language
Smiling is an example of unspoken language. cross-cultural differences. uncertainty avoidance. power distance. masculinity vs femininity.
unspoken language
If a country is experiencing a surge of construction machinery from a trading partner, it might ask that country to set a limit on how much can be exported. This limit is known as a tariff rate quota. quota rent. voluntary export restraint (VER). quota share. export embargo.
voluntary export restraint (VER).
