man3600
In terms of CSR and sustainability, going ________ means institutionalizing appropriate behavior into the organization's culture so it becomes part and parcel of strategy. A) wide B) deep C) local D) global
Answer: B
In the five-step framework for making ethical decisions, which of the following approaches to evaluating actions is being used by a manager who questions whether a proposed action embodies character strengths he/she values? A) rights approach B) virtue approach C) common good approach D) utilitarian approach
Answer: B
Which of the following is an example of offshoring? A) Fahad, a resident of the UAE can share his views—data and information—about the country's construction industry with his friends in the U.S. B) The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India. C) Treat Corp. is a food and beverage manufacturer based in Texas. It decided to move from Houston to Fort Worth in Texas to cut production costs. D) Lin, a Chinese citizen, decides to move to the U.K. after her application for scholarship is accepted by a leading university in London.
Answer: B
Culture is not ________. A) about beliefs and values of society B) relative C) a collective phenomenon D) inherited
Answer: D
In much of the world, ________ tends to dominate cross-national commerce. A) Mandarin B) Arabic C) German D) English
Answer: D
Large multinationals are not constrained by market forces because they can exert considerable influence on governments through lobbying.
Answer: FALSE
MNEs with extensive international operations tend to focus mainly on downstream activities such as marketing in foreign countries.
Answer: FALSE
Market globalization compels firms to organize their sourcing, manufacturing, marketing, and other value-adding activities on a strictly local scale.
Answer: FALSE
Nationalization refers to the gradual integration and growing interdependence of national economies.
Answer: FALSE
The five approaches to analyzing ethical problems rarely conflict with each other.
Answer: FALSE
The globalization of capital refers to the aggregate activities of firms that gives rise to economic integration.
Answer: FALSE
The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide.
Answer: FALSE
The greater the cultural distance between the service provider and its customers, the less likely there will be cognitive and communication gaps.
Answer: FALSE
The level of government intervention in commercial activities is similar across most countries.
Answer: FALSE
The third phase of globalization was triggered by the development of personal computers, the Internet, and Web browsers.
Answer: FALSE
Ethical behavior is critical to business success.
Answer: TRUE
Experienced managers scan operations in each country and potential partners for the possibility of ethical abuses. Such scanning is an ongoing process because company operations and environments evolve continuously.
Answer: TRUE
Exporting is an entry strategy involving the sale of products or services to customers located abroad.
Answer: TRUE
Exporting is the most common foreign market entry strategy of the SME.
Answer: TRUE
Failure to adopt CSR behaviors can have high detrimental effects on a company.
Answer: TRUE
The five approaches to analyzing ethical dilemmas often lead to similar solutions.
Answer: TRUE
A country's economic assets are also known as factors of production.
Answer: TRUE
Acknowledging the presence of an ethical problem is the first step of the framework for arriving at ethical decisions.
Answer: TRUE
Business jargon unique to a culture can impede communication.
Answer: TRUE
CSR improves employee perceptions of a company, which in turn enhances their loyalty and focus on company goals.
Answer: TRUE
Companies strive to drive down prices through economies of scale, by standardizing what they sell.
Answer: TRUE
Company logos, trademarks, national flags, and historical monuments are considered symbolic productions.
Answer: TRUE
Corporate codes of conduct emphasize standards related to ethics and social responsibilities.
Answer: TRUE
Corporate social responsibility represents the apex of the pyramid of ethical behavior.
Answer: TRUE
Countries that liberalize international trade and investment enjoy faster per-capita economic growth.
Answer: TRUE
Cross-cultural proficiency is characterized by four key personality traits: tolerance for ambiguity, perceptiveness, valuing personal relationships, and flexibility and adaptability.
Answer: TRUE
Cultural differences necessitate adapting marketing activities to suit the specific needs of target markets.
Answer: TRUE
Cultural intelligence focuses on specific capabilities important for high-quality personal relationships and effectiveness in culturally diverse settings and work groups.
Answer: TRUE
Cultural values and attitudes can be transmitted through a variety of sources including parents, teachers, friends, government leaders, movies, television, and the Internet.
Answer: TRUE
Currency risk refers to the risk posed by adverse fluctuations in exchange rates.
Answer: TRUE
Environmental destruction diminishes as economies develop, at least in the long run.
Answer: TRUE
Ethics and appropriate behavior transcend all international business activities and figure prominently in management decisions about financial performance and competitive advantage.
Answer: TRUE
Ethnocentric assumptions lead to poor business strategies in both planning and execution.
Answer: TRUE
Evaluation of results is the last step of the framework for arriving at ethical decisions.
Answer: TRUE
Falling trade barriers are facilitated by the WTO.
Answer: TRUE
Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages.
Answer: TRUE
Firms that pursue internationalization as a strategic move tend to approach global competition more aggressively than do firms that internationalize on a purely reactive basis.
Answer: TRUE
For internationalizing firms, the consequences of poor business management decisions are usually more costly when mistakes occur abroad than when they occur at home.
Answer: TRUE
For manufacturing companies, on a per-unit-of-output basis, high volumes of production are correlated with lower per-unit cost.
Answer: TRUE
Globalization brings a wider menu of choices to consumers and increases diversity within society.
Answer: TRUE
Globalization of production activities and services is a dimension of market globalization.
Answer: TRUE
Globalization results in more demanding buyers who shop for the best deals worldwide.
Answer: TRUE
Governments have facilitated economic integration by lowering barriers to international trade and investment, harmonizing their monetary and fiscal policies within regional economic integration blocs.
Answer: TRUE
Grease payments intended to expedite transactions are both accepted and legal in many countries.
Answer: TRUE
In a "common market," barriers to the cross-border flow of factors of production are removed.
Answer: TRUE
In cultures with a monochronic view of time, people view time as linear, managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities.
Answer: TRUE
In deal-oriented cultures, managers focus on the task at hand and prefer getting down to business.
Answer: TRUE
International business is primarily carried out by individual companies.
Answer: TRUE
Language has both verbal and nonverbal characteristics.
Answer: TRUE
Language is a vital dimension that both reflects, and is reflected by, cultural differences.
Answer: TRUE
Mobile phones are the most transformative technology in developing economies.
Answer: TRUE
Most companies have a distinctive set of norms, values, and modes of behavior that distinguish them from other organizations.
Answer: TRUE
Nonverbal communication belongs to the deep cultural makeup that we are unaware of.
Answer: TRUE
Over the last few decades, export activity by nations has grown more quickly than has domestic production.
Answer: TRUE
Piracy is equivalent to counterfeiting.
Answer: TRUE
Relying on one's instincts is often the best way to identify an ethical problem.
Answer: TRUE
Services are the fastest growing sector in international trade.
Answer: TRUE
Since the 1980s, emerging market countries have experienced substantial market liberalization and privatization.
Answer: TRUE
Technological advances are a key determinant of culture and cultural change.
Answer: TRUE
Technological advances have helped make internationalization affordable for all sizes of firms.
Answer: TRUE
The Global Reporting Initiative pioneered the development of the most widely used sustainability reporting framework.
Answer: TRUE
The initial phase of globalization was triggered by the introduction of the railroads and ocean transport.
Answer: TRUE
The most advanced companies monitor suppliers to ensure that they use sustainable practices.
Answer: TRUE
The two primary types of international investment are portfolio investment and foreign direct investment.
Answer: TRUE
When it comes to ensuring ethical behavior, experienced managers follow a systematic process.
Answer: TRUE
Widespread corruption hinders economic development.
Answer: TRUE
International business is defined as the performance of ________ activities by firms across national borders. A) marketing and fiduciary B) trade and investment C) finance and operational D) manufacturing and sales
Answer: B
Technological advances have contributed to manufacturing by ________. A) promoting traditional lifestyles and values B) reducing cross-border flow of factors of production C) promoting nationalization D) reducing production costs
Answer: D
In countries with questionable ethical norms, it is usually ill-advised to maintain ethical standards superior to what is required by local laws and values.
Answer: FALSE
In helping identify ethical problems, the firm's code of conduct should be tailored to match the norms of each individual region from which the firm operates.
Answer: FALSE
In international economics, codetermination refers to the tendency for a financial or monetary crisis in one country to spread rapidly to other countries, due to integrated national economies.
Answer: FALSE
In societies with low uncertainty-avoidance, companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity.
Answer: FALSE
In the advanced economies, firms that engage in services such as lodging and retailing account for a much lesser share of FDI than firms that manufacture products.
Answer: FALSE
In the past, international trade and investment activities were mainly conducted by companies that sold services.
Answer: FALSE
Industrialization implies that emerging markets are increasing their dependence on low-cost labor.
Answer: FALSE
Intellectual property rights law enacted in one country are enforceable worldwide.
Answer: FALSE
International business is primarily the domain of large, resourceful firms.
Answer: FALSE
International business today is predominantly the domain of large, multinational companies.
Answer: FALSE
Japan and China are examples of low-context cultures.
Answer: FALSE
Offshoring and the flight of jobs are prime drivers of market globalization.
Answer: FALSE
Scholars examining ethics from the perspective of relativism hold that ethical truths are absolute.
Answer: FALSE
Standards of ethical behavior are uniform worldwide.
Answer: FALSE
The Great Depression marked the beginning of the second phase of globalization.
Answer: FALSE
The Internet has increased the cost of transmitting voices, data, and images.
Answer: FALSE
The end of the Cold War in 1989 hindered the forces of market liberalization in Eastern Europe.
Answer: FALSE
The first wave of offshoring began in the 1990s with the exodus of service-sector jobs in credit card processing, software code writing, accounting, health care, and banking services.
Answer: FALSE
The utilitarian approach is based on the belief that, regardless of how one deals with an ethical dilemma, human dignity must be preserved.
Answer: FALSE
To minimize globalization's harm and reap its benefits, governments should strive for nationalized economic regimes.
Answer: FALSE
Today, the cost of transportation, as a proportion of the value of products shipped internationally, has increased dramatically.
Answer: FALSE
"McDonaldization" or "Coca-Colonization" of the world refers to the idea that globalization can alter people's norms, values, and behaviors, which may tend to homogenize over time.
Answer: TRUE
Firms expand abroad solely as a reaction to market globalization.
Answer: FALSE
Firms that do not export tend to create jobs more quickly than do exporting firms.
Answer: FALSE
Improper ethical behavior is unlikely to result when bad means are justified by good ends.
Answer: FALSE
Fluctuating exchange rates are an example of which of the following? A) country risk B) political risk C) currency risk D) cross-cultural risk
Answer: C
High power-distance countries are characterized by ________. A) organizations that grant a high degree of autonomy to lower-level employees B) a strong desire to minimize gaps between the powerful and the weak C) a relative indifference toward social inequalities D) a relative equality in terms of income and power
Answer: C
In collectivist societies, competition for resources is the norm, and those who compete best are rewarded financially.
Answer: FALSE
In companies with decentralized organizational structure, power is concentrated at the regional or corporate headquarters.
Answer: FALSE
Early multinationals from the third phase of globalization originated in ________. A) Japan B) China C) India D) Brazil
Answer: A
The Nike "Swoosh" is an example of a ________. A) patent B) fad C) copyright D) trademark
Answer: D
After the first training session, a number of the Michigan employees expressed frustration that the Indian employees lacked technical knowledge because none of them asked questions or offered answers. Which of the following would be the best way for Hank to handle the situation? A) Remind the American employees that the Indians may be showing respect by remaining silent B) Order the Indian employees to interact more during the session C) Host a traditional American barbeque so the American and Indian employees can get acquainted D) Ignore the complaints of the American employees and continue the training sessions as planned.
Answer: A
An individual who believes in ethical normativism is most likely to view ethical behavioral standards as ________. A) universal B) constantly changing C) dependent on societal norms D) superior to religious beliefs
Answer: A
An underground economy ________. A) refers to the informal economic sector B) refers to the formal economic sector C) is characterized by dominantly legal transactions D) is regulated and monitored by public authorities
Answer: A
As part of opening manufacturing units abroad, a U.S. apparel firm decided to send its apparel production coordinator Chris to Bangladesh. Chris is distressed that people don't come to meetings on time and finds it disrespectful when his team members stand too close to him. Chris may trigger a cross-cultural risk by a(n) ________. A) ethnocentric orientation B) anthropocentric orientation C) polycentric orientation D) geocentric orientation
Answer: A
At the meeting, Dan explains to the attendees that Freehold direct investment projects differ from international trade in that ________. A) the firm itself is crossing international borders to purchase foreign assets B) the firm is restricting its investments to stocks and does not purchase mutual funds C) the firm has chosen to focus strictly on the technology sector D) the firm is engaging in the transfer of products across national borders
Answer: A
Businesses that directly initiate and implement international business activity are known as ________. A) focal firms B) fiscal enterprises C) fiduciary trusts D) business affiliates
Answer: A
Cultural intelligence is defined as ________. A) a person's ability to function effectively in situations characterized by cultural diversity B) the method of analyzing awkward situations in cross-cultural encounters by developing objectivity and empathy for other points of view C) the measurement of the inequalities in power that exist among people D) the information gathered by local firms about those entering foreign markets
Answer: A
Economic interests refer to a firm's economic impact on ________. A) the localities where it does business B) the top management of the firm C) the middle management of the firm D) the society as a whole
Answer: A
Feminine cultures tend to emphasize ________. A) interdependence among people B) accumulation of wealth C) ambition D) competitiveness
Answer: A
Firms with high power distance are most likely to be characterized by ________. A) concentrated power among executives and little autonomy for subordinates B) an equal distribution of power among executives, managers, and lower-level employees C) minimal gap between the powerful and the weak D) a highly flexible work environment
Answer: A
In a deal-oriented culture, managers ________. A) focus on the task at hand and prefer getting down to business B) hold rigid attitudes, usually unfavorable and usually aimed at particular groups of people C) emphasize affiliations with people D) seek to build trust and rapport and get to know the other party in business interactions
Answer: A
In a world ever sensitive to social and environmental issues, more and more firms are embracing CSR and sustainability. Such firms are more likely than not to ________. A) develop closer relations with foreign stakeholders to better understand their needs and work jointly toward solutions B) minimize their contribution to the local community in order to maximize profits C) be reluctant to hire managers from around the world D) favor region-specific CSR standards to global CSR standards for foreign operations
Answer: A
In discussing the expansion effort to India, the CEO reminded shareholders of Black and Decker's move to partner with the Indian auto retailer Bajaj. The CEO was most likely attempting to justify which of the following? A) a joint venture that would position Sterling for long-term sales in India B) a marketing effort targeted to American citizens living in India C) a price drop to ward off competition from an emerging Indian auto retailer D) a new manufacturing protocol based on an efficient Indian production method
Answer: A
In order to be effective, a corporate code of conduct should be designed to function like a ________. A) business white paper B) moral compass C) project plan D) political treatise
Answer: B
In polychronic cultures, ________. A) members are easily distracted and are inclined to do many tasks at once B) people view time as linear and punctuality as a virtue C) managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities D) managers and investors are impatient and want quick returns
Answer: A
In terms of CSR and sustainability, going wide implies ________. A) a continuous effort to understand how CSR and sustainability affect every aspect of the firm's operations worldwide B) institutionalizing appropriate behavior into the organization's culture so it becomes part and parcel of strategy C) encouraging unstructured learning among employees D) a sustained effort to reduce control mechanisms throughout the organization
Answer: A
LeShaun Golding researched the risks linked to establishing the plant in Country B. He cited government intervention, lack of local managerial talent, and unethical business practices as the most prominent risks for this location. LeShaun noted all of the following types of risks EXCEPT ________. A) currency risk B) political risk C) country risk D) cross-cultural risk
Answer: A
Managers with a geocentric view of the world ________. A) are generally better at understanding and accommodating similarities and differences among cultures B) ritually avoid analyzing awkward situations in cross-cultural encounters C) have a strong preference for ambiguity D) tend to view other cultures through the lens of his/her own culture
Answer: A
Philip Baxter reported on the risks associated with establishing the plant in Country A. The most significant risk, in his view, was posed by the government's complex bureaucratic structure. Philip reported the likelihood of significant administrative delays in opening the plant. The risk identified by Philip is an example of which of the following? A) country risk B) commercial risk C) currency risk D) cross-cultural risk
Answer: A
Polycentric orientation refers to ________. A) a host-country mind-set in which the manager develops a strong affinity with the country in which she or he conducts business B) the use of one's own culture as the standard for judging other cultures C) a collectivist mind-set, which emphasizes conformity, duty, prescribed roles, and sacrifice for the greater good D) the tendency to rely on elaborate verbal explanations, putting much emphasis on spoken words
Answer: A
Regional economic integration blocs ________. A) reduce trade and investment barriers B) reduce private investments C) adopt a hostile stance toward the private sector D) hinder the cross-border flow of factors of production
Answer: A
Sustainable practices lead to ________. A) cost savings from more efficient production B) the abolition of labor unions C) higher employee turnover D) reduced operational flexibility
Answer: A
The ability of a nation to govern its own affairs is known as ________. A) sovereignty B) liberalization C) interdependence D) homogenization
Answer: A
The managers discuss various ethical problems commonly encountered in their local territories. Which of the following representatives is most likely to label counterfeiting of goods as the biggest challenge in his/her country? A) Jang B) Luis C) Marta D) Geoff
Answer: A
The most direct implication of market globalization is on the firm's ________. A) value chain B) supply chain C) internal stakeholders D) top management
Answer: A
The process of reproducing assets without compensating those who originally created them is known as ________. A) counterfeiting B) bribery C) product differentiation D) trademarking
Answer: A
The process of targeting and serving markets outside the home country is known as ________. A) market diversification B) competition intensity C) reactive internationalization D) trade protectionism
Answer: A
The purpose of material productions in a society is to ________. A) enable people to cope with their environments B) help unite people C) distinguish the dominant culture from minority cultures D) segregate people based on race and ethnicity
Answer: A
The subjective dimension of culture includes ________. A) manners and customs B) architecture of a society C) tools D) infrastructure unique to a society
Answer: A
The third phase of globalization was triggered by ________. A) the end of World War II B) the invention of electricity C) the end of World War I D) the Great Depression
Answer: A
Trademarks, copyrights, and patents are examples of ________. A) intellectual property rights B) fundamental rights C) tangible property rights D) ethical rights
Answer: A
What has been the impact of technology and the Internet on global culture? A) Cultures have become increasingly similar due to shared experiences. B) The distance between geographically separated cultures are growing steadily. C) Since the last decade, homogeneous cultures have grown in number. D) People in today's developing nations are no more vulnerable to culture shock than before.
Answer: A
When using the five-step framework for making ethical decisions, which of the following steps involves investigating which individuals have a stake in the outcome? A) examining the facts B) implementing a decision C) evaluating alternatives D) identifying the ethical problem
Answer: A
Which of the following acts makes it illegal for U.S. firms to offer bribes to foreign parties in order to secure or retain business? A) the U.S. Foreign Corrupt Practices Act B) the Robinson-Patman Act C) the U.S. Securities Exchange Act D) the Sherman Antitrust Act
Answer: A
Which of the following approaches to ethical standards for corporate governance reflects the view that the best action treats everyone equally and in a just manner? A) fairness approach B) virtue approach C) utilitarian approach D) rights approach
Answer: A
Which of the following best characterizes the development of international business? A) It has existed in some form for centuries. B) It first started in Europe. C) It developed after the year 2000. D) Its development has slowed in recent years.
Answer: A
Which of the following best supports the selection of Sato over Aoki? A) Sato is familiar with both Tag-Mart operations as well as the local customs in Japan. B) Sato is no more skilled in employee training techniques than Aoki. C) Sato is clearly more relationship-oriented than Aoki. D) Sato is likely to discourage homogenization of cultures.
Answer: A
Which of the following countries exhibit a high-context culture? A) Japan B) Germany C) The United States of America D) Switzerland
Answer: A
Which of the following drivers of market globalization is Lavonne's research most likely to recognize as the factor responsible for the company's expansion to Japan? A) integration of world financial markets B) the highly conservative nature of the Japanese economy C) the rise of monopoly markets in Japan D) reduction of barriers to investment
Answer: A
Which of the following is Rina most likely to cite as a counter example to Juan's argument regarding the influence of MNEs on national sovereignty? A) the dominating influence of market forces on the global economy B) technological advances in computer-aided design of products C) the political influence of large firms such as Walmart
Answer: A
Which of the following is an example of a new global challenger? A) a firm from Russia that is rapidly growing in the communications industry B) a U.S. non-profit that focuses on fundraising for children's health care C) an MNE from France with large-scale operations across the globe D) an SME from Canada that began international operations early in its development
Answer: A
Which of the following is subject to importing and exporting? A) both finished products and intermediate goods B) finished products but not intermediate goods C) intermediate goods but not raw materials D) raw materials and components, but not finished products
Answer: A
Which of the following is true of a good code of conduct? A) It guides employee behavior in all situations. B) It does not define the values and principles that are intended to guide organizational decision making. C) It emphasizes profit over righteousness. D) It is a cure for all ethical dilemmas.
Answer: A
Which of the following is true with regard to bribery? A) Bribery promotes a culture of dishonesty and immorality. B) Bribery poses no significant threat to market economies. C) Bribery is considerably rare in developing economies. D) Bribery is not acceptable in much of the world.
Answer: A
Which of the following is true with regard to culture? A) It captures how the members of the society live. B) It is absolute. C) It does not define the collective behavior of each society. D) It is inherited.
Answer: A
Which of the following refers to the extent to which people can tolerate risk in their lives? A) uncertainty avoidance B) long-term versus short-term orientation C) power distance D) individualism
Answer: A
Which of the following stages comes before procurement in a firm's value chain? A) research & development B) marketing C) manufacturing D) distribution
Answer: A
Which of the following statements is true of technological advances? A) It provides a means for globalization to happen. B) It discourages internationalization. C) It inhibits the growth of new products and services. D) It helps consolidate traditional values among consumers worldwide.
Answer: A
Which of the following statements most likely to counters Juan's argument concerning the homogenization of national cultures? A) As globalization standardizes superficial aspects of life across national cultures, people resist these forces by insisting on their national identity and taking steps to protect it. B) Foreign values tend to shift not just superficial aspects of culture, but deeply held beliefs as well. C) Material goods such as cell phones and computers are found in most homes throughout the world. D) In most industries, domestic operation alone cannot sustain competitive business growth.
Answer: A
Which of the following, if true, would most strongly support the claim that national prosperity is increased by participation in international business? A) Countries that participate in international trade have higher GDPs than non-participating countries. B) Individuals in advanced economies tend to set purchasing trends for consumers worldwide. C) For most countries, levels of international trade have increased significantly in recent decades. D) National literacy levels are strongly correlated with a country's degree of political freedom.
Answer: A
With regard to the iceberg concept of culture, ________ is the most deeply embedded. A) conversational patterns B) cooking C) courtship practices D) literature
Answer: A
________ are the most transformative technology in developing economies. A) Mobile phones B) Televisions C) Intranets D) E-mails
Answer: A
________ confer the exclusive right to manufacture, use, and sell products or processes. A) Patents B) Trademarks C) Trade secrets D) Copyrights
Answer: A
________ is the total value of products and services produced in a country over the course of a year. A) GDP B) CAD C) FDI D) PPP
Answer: A
________ means meeting humanity's needs without harming future generations. A) Sustainability B) Corporate social responsibility C) Ethical behavior D) Casuistry
Answer: A
________ refers to a distinctive tradition or institution strongly associated with a particular society. A) Cultural metaphor B) Totem C) Moiety D) Cultural pluralism
Answer: A
________ refers to the sequence of value-adding activities performed by the firm in the course of developing, producing, marketing, and servicing a product. A) A value chain B) A supply chain C) Value gap D) Value migration
Answer: A
________ refers to the system of procedures and processes by which corporations are managed, directed, and controlled. A) Corporate governance B) Deceptive marketing C) Global sourcing D) Corporate social responsibility
Answer: A
Which of the following contributes LEAST to increasing a company's profit margins? A) increasing demand B) increasing global competition C) high-growth markets D) underserved economies
Answer: B
________ refers to the tendency of a financial or monetary crisis in one country to spread rapidly to other countries, due to the ongoing integration of national economies. A) Contagion B) Nationalization C) Internationalization D) Codetermination
Answer: A
________ refers to the transfer of assets to another country or the acquisition of assets in that country. A) International investment B) International trade= C) Importing D) Exporting
Answer: A
A restaurant chain based in Hong Kong plans to open a series of restaurants in the United States to gain access to low-cost capital for its expansion efforts. Which of the following, if true, would most strongly support the claim that establishing U.S. operations would NOT be the best choice for providing the chain access to the low-cost capital it seeks? A) Relocation to the U.S. would involve substantial cross-cultural risk. B) U.S. funding sources are more expensive than capital sources in many other promising locations. C) The company has attracted significant interest from American venture capitalists. D) U.S. funding offered in the hospitality sector tends to be more expensive than funding for health care firms.
Answer: B
According to relativists ________. A) a passive acceptance of others' values is unethical B) ethical truths differ from group to group C) firms and individuals should seek to uphold ethical behavioral standards consistently around the world D) ethical truths are absolute
Answer: B
According to the virtue approach ________. A) the best action emphasizes the welfare of the entire community or nation B) the best action emphasizes moral excellence and righteousness that provide for the full development of our humanity C) the best ethical action is the one that provides the most good or the least harm D) the best action protects and respects the moral rights of everyone involved
Answer: B
Acculturation is defined as the process of ________. A) segregating ethnic minorities by distinct groups B) adjusting and adapting to a culture other than one's own C) learning the behavioral patterns and rules of one's own society D) forcing minority cultures to adopt the values of the dominant culture
Answer: B
Advertising themes often convey unfavorable and embarrassing interpretations. This is most likely because ________. A) popular slogans used in international advertising do not use idiomatic expressions B) advertising themes often lose their original meaning in translation C) language is rarely subtle D) colloquial expressions are more likely than not to puzzle native speakers
Answer: B
Ashok, one of the Indian employees, asks Hank if the weekend training session could be rescheduled because it is a Hindu festival day. What will be the most likely outcome if Hank agrees to Ashok's request? A) Instances of absenteeism will become more pervasive among Indian employees. B) Hank will develop a relationship of trust and understanding with the Indian employees. C) Hank's decision will create divisiveness between the American and Indian employees leading to irreparable damages. D) Ashok will replace Hank as manager after six months when Hank returns to the United States.
Answer: B
Calexor is a telecommunications SME that has been highly successful despite its limited resources. Stakeholders attribute Calexor's success to its ability to serve niche markets. Which of the following, if true, would most strongly support the claim that Calexor's growth can be attributed to niche market sales? A) Calexor developed an interest in serving niche markets through an R & D experiment. B) Most of Calexor's sales are in specialty markets that larger competitors do not serve. C) Calexor's sales in mainstream telecommunications markets have always been strong. D) Calexor's growth soared after it entered its first overseas market and has continued to climb.
Answer: B
Companies strive to drive down prices ________. A) by centralizing manufacturing and procurement to a single source B) by standardizing what they sell C) by thwarting the growth of supranational institutions D) by discouraging competition
Answer: B
Dan discusses an investment opportunity that involves the purchase of selected securities from the Chinese stock market. This opportunity represents which type of international investment? A) indirect production B) international portfolio C) foreign direct D) domestic securities
Answer: B
Each of the following has contributed to the rapid integration of world economies EXCEPT ________. A) the growth of emerging market countries B) the increase in trade barriers C) advances in information technology D) the liberalization of markets
Answer: B
Firms that are more successful at global competition display each of the following qualities EXCEPT ________. A) identifying foreign market opportunities aggressively B) approaching internationalization from a reactive standpoint C) actively pursuing partnerships with foreign firms D) focusing intensively on building organizational capacities
Answer: B
Firms with a strong social interest ________. A) openly support the use of sweatshops B) aim to optimize work conditions and diversity in hiring C) are reluctant to provide health insurance to employees D) engage in deceptive marketing
Answer: B
Globalization has helped increase all of the following EXCEPT ________. A) the variety of capital flows across national borders B) the economic isolation of developing countries C) the rate at which products are diffused worldwide D) the volume of cross-border transactions
Answer: B
Governments have facilitated economic integration by ________. A) increasing barriers to international trade and investment B) developing supranational institutions to further reduce trade barriers C) adopting different monetary and fiscal policies within the same regional economic integration blocs D) standardizing consumer lifestyles and preferences
Answer: B
In countries with minimal corruption ________. A) commercial laws are unfair and discriminatory B) financial and accounting information is transparent C) direct investment does not take place D) the contribution of the private sector to the national GDP is negligible
Answer: B
In international business, successful managers ________. A) adhere to a self-reference criterion B) are empathetic to cultural differences C) overly emphasize the importance of business jargons in facilitating effective cross-cultural communication D) ritually avoid analyzing awkward situations in cross-cultural encounters
Answer: B
Low-context cultures tend to ________. A) emphasize nonverbal messages B) conduct negotiations as efficiently as possible C) view communication as a means to promote smooth, harmonious relationships D) prefer an indirect and polite face-saving style of communication
Answer: B
Managers can achieve effective cross-cultural interaction by ________. A) resisting cultural homogeneity B) keeping an open mind and being inquisitive C) rushing into conclusions about other's behaviors D) using business jargons to facilitate communication
Answer: B
One of the attendees represents a leading nation in the international merchandise trade. This attendee is most likely from which of the following countries? A) New Zealand B) Germany C) Kenya D) Saudi Arabia
Answer: B
Prejudices in a culture ________. A) represent the symbolic, material, and creative productions unique to a society B) are rigidly held attitudes, usually unfavorable, and usually aimed at particular groups of people C) guide the development of our attitudes and preferences D) represent a person's judgment about what is important and what is not
Answer: B
Reduction in trade barriers is associated with the emergence of ________. A) fragmentary monetary and fiscal policies across the borders B) regional economic integration blocs C) widespread violation of intellectual property rights law D) violation of GATT provisions
Answer: B
Sean, a senior manager in Freedom, adheres to the relativist view regarding ethical standards. He goes by the rule, "When in Rome, do as the Romans do." Sean is most likely to agree strongly with which of the following views? A) Freedom should not partner with foreign business entities. B) Freedom should passively accept the practices that prevail in countries where it does business. C) Freedom should not hire foreign managers. D) Freedom should institute a single global code of conduct for all its employees and suppliers.
Answer: B
Stella manages the production team at Camden Inc., a manufacturer of heavy industry machinery in the United States. She needs to decide if her firm should export finished products or manufacture abroad. Which of the following would most likely help her evaluate the best alternative in this instance? A) What is the gross national income of the United States? B) What are the costs of transporting raw materials, components, and finished products? C) Is employee empowerment culturally favored in the United States? D) What is the average annual rate of employee turnover in the manufacturing industry?
Answer: B
The CEO justified one of the company's moves by pointing out that it not only enabled Sterling to benefit from global sourcing advantages, but it also provided access to new ideas about business methods. The shareholders viewed this justification positively most likely because they understood which of the following? A) Sourcing advantages are usually more important to growth than obtaining new business ideas. B) International firms may have more than one motive for international expansion. C) The most compelling motive for international expansion is to gain new ideas from other markets. D) This expansion strategy would enable the company to better manage cross-cultural risk.
Answer: B
The ________ is a policy platform and practical framework for companies committed to sustainability and responsible business practices. It is the world's largest voluntary corporate citizenship initiative, representing thousands of businesses in more than 135 countries. A) Organization for Economic Cooperation and Development B) United Nations Global Compact C) International Economic Development Council D) Global Reporting Initiative
Answer: B
The ________ phase of globalization began around 1900 and was associated with the rise of electricity and steel production. A) first B) second C) third D) fourth
Answer: B
The globalization of finance ________. A) enables companies to minimize offshoring B) contributes to firms' abilities to develop and operate world-scale production and marketing C) discourages innovation D) discourages free international exchange of goods and services
Answer: B
The largest multinational firms are found in each of the following industries EXCEPT ________. A) retailing B) health care C) automobiles D) oil and gas
Answer: B
The objective dimension of culture includes ________. A) values and attitudes B) architecture of a society C) perceptions of time D) religion
Answer: B
The representative from Business A is most likely from ________. A) China B) United Kingdom C) Mexico D) Brazil
Answer: B
The representative from Business C is most likely from ________. A) Italy B) Brazil C) the United States D) France
Answer: B
The science and process of creating and using information resources is known as ________. A) information design B) information technology C) psychographics D) demographics
Answer: B
The software program embedded in Hudson's signature toy, the Witty Parakeet, is an example of a(n) ________. A) tangible asset B) intellectual property C) trademark D) trade secret
Answer: B
Using one's own culture as a standard for judging other cultures is known as ________. A) anthropocentric orientation B) ethnocentric orientation C) geocentric orientation D) polycentric orientation
Answer: B
Which of the following approaches to ethical standards for corporate governance reflects the view that the best ethical action is the one that provides the most good or the least harm? A) common good approach B) utilitarian approach C) virtue approach D) fairness approach
Answer: B
Which of the following best explains why the Japanese firm Canon relocated much of its production to China? A) low-cost financial capital B) low-cost labor C) access to raw materials D) lack of skilled managerial talent in home country
Answer: B
Which of the following can be inferred from the above passage? A) The Chinese culture is more likely than not to be deal-oriented. B) The Chinese culture is more likely than not to be relationship-oriented. C) The American culture is more likely than not to be relationship-oriented. D) The American culture is less likely to take an impersonal approach to business.
Answer: B
Which of the following is characteristic of collectivist societies? A) In collectivist societies, each person tends to focus on his or her own self-interest. B) In collectivist societies, compromise and conformity help maintain group harmony. C) In collectivist societies, ties among people are relatively loose. D) In collectivist societies, those who compete best are rewarded financially.
Answer: B
Which of the following most likely supports Rina's argument over Juan's concerning wages and working conditions in developing countries? A) Most African countries today still suffer from low or negative GDP growth. B) Vietnam has experienced a five-fold increase in wages as a result of the growth of the footwear industry there. C) The move of Electrolux to Mexico cost Michigan 2,700 jobs. D) Minimum wages should be established at set levels, regardless of the impact on the number of jobs.
Answer: B
Which of the following statements is true about the firm-level consequences of market globalization? A) The globalization of markets has narrowed down new business opportunities for internationalizing firms. B) Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world. C) A firm's value chain is not subject to internationalization. D) Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market.
Answer: B
Which of the following statements is true about value chain and international business? A) Exporting firms perform most of the downstream value chain activities in the home market. B) Exporting firms perform most of the upstream value chain activities in the home market. C) Exporting firms perform most of the upstream value chain activities abroad. D) Exporting firms perform most of the research and product development and production abroad.
Answer: B
Which of the following types of assumptions is the cause of most problems between business managers and foreign employees? A) geocentric assumptions B) ethnocentric assumptions C) polycentric assumptions D) religious assumptions
Answer: B
Which of the following would NOT be considered an example of foreign direct investment (FDI)? A) cross-border purchase of a textile plant B) cross-border purchase of stocks C) purchase of capital assets of a foreign company D) purchase of foreign land for business operations
Answer: B
Which of the following would be most important for the consulting group to consider when deciding whether to recommend that Acme internationalize its sales efforts to Germany? A) Will Acme save money on advertising by targeting small rather than large companies? B) How intense is the competition from German companies offering similar products? C) What type of training is received by programmers in software firms abroad? D) Is employee empowerment culturally favored in Germany?
Answer: B
Which of the following would be the most important to evaluate before WFC internationalizes its operations? A) Has the increased presence of British culture in North America popularized fish & chips in that region? B) Has global homogenization increased the likelihood that Swedes will try food from a different culture? C) To what extent does globalization facilitate creativity and innovation? D) Is increased global communications a truly positive aspect of globalization?
Answer: B
Which of the following, if true, strengthens the conclusion of the above passage? A) In China, companies belonging to deal-oriented cultures have been the most successful. B) American companies best thrive in cultures that are deal-oriented. C) For the Chinese, relationship is less important than business deals. D) The management of Grande is characterized by a host country mind-set.
Answer: B
________ are letters, figures, colors, or other characters that communicate a meaning. A) Rituals B) Symbols C) Norms D) Customs
Answer: B
________ are moral principles and values that govern the behavior of people, firms, and governments, regarding right and wrong. A) Attitudes B) Ethics C) Laws D) Biases
Answer: B
________ is a major factor in the emergence of a common worldwide culture. A) The ethnocentric orientation of today's managers B) Globalization C) The global preference for relationship-oriented cultures D) Marginalization
Answer: B
________ is the top market for counterfeit and pirated goods. A) China B) The United States C) Iran D) Russia
Answer: B
________ represents the apex of the pyramid of ethical behavior. A) Ethical behavior B) Corporate social responsibility C) Complying with laws and regulations D) Guarding against corruption
Answer: B
A U.S. shoe manufacturer is considering internationalizing to promote growth by diversifying its markets. Which of the following, if true, would most strongly support the claim that moving to France would help the company grow through market diversification? A) Doing business in France would likely expose the company to new ideas for product innovation. B) French women tend to purchase shoes more frequently than do French men. C) French consumers represent a sizeable market that could significantly boost the company's sales. D) Many of the company's U.S. customers have moved overseas to Europe.
Answer: C
As market globalization intensifies, ________. A) the gap between the rich and the poor shrinks rapidly B) the distance between consumers worldwide expands C) individual firms respond to the challenges and new advantages that it brings D) firms internationalize solely as a reaction to it
Answer: C
Business dealings in low-context cultures are characterized by ________. A) a high degree of sensitivity to the context B) a high degree of mutual respect C) efficient negotiations D) complex rituals
Answer: C
Convergence of consumer preferences has led to an enhanced emphasis on standardization which implies that ________. A) the consistently rising prices of consumer goods have led to a demand vacuum in the market B) the distance between consumers worldwide has increased with the advent of technology C) the raw materials, parts, and components sourced by professional buyers are very similar in design and structure D) the globalization of services has adversely affected the quality of service worldwide
Answer: C
The free movement of capital around the world is also known as ________. A) bond-based debt financing B) contagion C) the globalization of capital D) common market arrangement
Answer: C
Corruption is defined as ________. A) the system of procedures and processes by which corporations are managed, directed, and controlled B) a manner of operating a business that meets or exceeds the ethical, legal, commercial, and public expectations of customers C) the abuse of power to achieve illegitimate personal gain D) the tendency to make decisions based purely on cognitive factors
Answer: C
Each of the following represents a factor of production EXCEPT ________. A) manufacturing infrastructure B) technology C) government regulations D) managerial talent
Answer: C
Each of the following types of organizations is active in international business EXCEPT ________. A) MNE B) SME C) RND D) NGO
Answer: C
Hudson uses a distinctive sign to enable its customers to easily identify its products. This distinctive sign that the company also uses to distinguish its offerings from that of its competitors is known as a ________. A) patent B) copyright C) trademark D) users' license
Answer: C
In a typical value chain, the firm ________. A) rarely conducts research and development B) performs most upstream value-chain activities abroad, when exporting C) performs marketing activities such as pricing, promotion, and selling D) performs most downstream activities in the home market, when exporting
Answer: C
In describing the main driver behind Pax's expansion to China, Rashid is most likely to emphasize ________. A) high rate of employee attrition in China B) advances in technology C) reduction of barriers to trade D) integration of world financial markets
Answer: C
In terms of international business, market globalization can be viewed as a ________. A) consequence of a strong emphasis on traditional values worldwide B) consequence of the loss of national sovereignty C) driver and consequence of firm-level internationalization D) prime cause of rising diseconomies of scale in emerging economies
Answer: C
Increases in international trade and investment are accompanied by increases in all of the following EXCEPT ________. A) literacy rates B) individual affluence C) cross-border conflict D) national prosperity
Answer: C
International business is also known as which of the following? A) born global business B) laissez-faire business C) cross-border business D) multi-hub business
Answer: C
Jordan is employed in an American investment firm and is currently working with some Japanese clients on a new project. He uses a lot of hand gestures during meetings which his clients find very distracting and rude. This has also led to many misunderstandings between Jordan and his Japanese clients in the recent past. Which of the following best describes such a situation? A) risk aversion B) organizational anarchy C) cross-cultural risk D) acculturation
Answer: C
One of the attendees represents a leading nation in the international services trade. This attendee is most likely from which of the following countries? A) Brazil B) Greece C) Spain D) South Africa
Answer: C
One shareholder questioned the CEO's rationale for beginning an exploratory effort to establish a new manufacturing plant in India. The CEO responded by explaining that India was an untapped market with a high demand for products such as those produced by Sterling. His rationale represented an example of which of the following reasons for international expansion? A) investing in a potentially rewarding relationship with a foreign partner B) gaining access to lower-cost or better-value factors of production C) seeking opportunities for growth through market diversification D) better serving key customers that have relocated abroad
Answer: C
Over time, the GATT evolved into the ________. A) World Bank B) International Monetary Fund C) World Trade Organization D) World Intellectual Property Organization
Answer: C
Phillip Hardy, one of the potential investors, expresses the desire to purchase only those types of assets in which he can maintain a relatively short-term interest. Which of the following investment opportunities would be most suited for Mr. Hardy? A) a venture that gives investors ownership of the equipment used by multiple South African mining companies B) an initiative to purchase the technology assets of an Indian consulting firm C) the Freehold Eastern Growth Fund, which purchases Eastern European growth stocks D) the Freehold World Climb Project, which maintains partial ownership of an Australian hiking equipment production plant
Answer: C
Rina is most likely to counter Juan's claim regarding environmental effects by pointing out which of the following? A) The intensity of environmental pollution is far greater in emerging economies than in undeveloped ones. B) China's landscape was permanently altered by the construction of the Three Gorges Dam. C) Environmental destruction tends to diminish in the long run, as economies develop. D) Attempts at foreign cultural imperialism are often blocked by national governments.
Answer: C
Self-reference criterion is ________. A) the tendency to assume that all people from one culture are the same B) the tendency to understand a culture without regard to country boundaries C) the propensity to view other cultures through the lens of one's own culture D) the propensity to understand culture as an inherited trait
Answer: C
Socialization is defined as ________. A) the process of segregating people into different racial groups in a society B) the process of adjusting and adapting to a culture other than one's own C) the process of learning the rules and behavioral patterns appropriate to one's given society D) a situation or event in which a cultural misunderstanding puts some human value at stake
Answer: C
Sustainable firms ________. A) have a high employee turnover rate B) have greater liabilities than assets C) avoid emitting toxic wastes D) actively resist organizational change
Answer: C
Technological leapfrogging is defined as ________. A) adopting new technology late in the hype cycle B) adopting new technology as soon as it is released C) bypassing certain stages of technology to come up with a radical innovation when upgrading to new products D) boosting demand artificially by postponing the sale of new technology in the market
Answer: C
The culture of which of the following countries has a close conversational distance? A) Russia B) Sweden C) Brazil D) United States
Answer: C
To which of the following drivers of market globalization is Markus most likely to attribute his company's expansion to Eastern Europe? A) advances in technology B) integration of world financial markets C) market liberalization D) industrialization
Answer: C
Values in a culture ________. A) represent the symbolic, material, and creative productions unique to a society B) are rigidly held attitudes, usually unfavorable and usually aimed at particular groups of people C) represent a person's judgments about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal D) are similar to opinions but are often unconsciously held and may not have a rational basis
Answer: C
When applying the five-step framework for making ethical decisions, managers should, at first, ________. A) evaluate alternatives B) examine the facts C) recognize the ethical problem D) implement a decision
Answer: C
Which of the following approaches to ethical standards for corporate governance reflects the view that the best action emphasizes the welfare of the entire community or nation? A) rights approach B) utilitarian approach C) common good approach D) virtue approach
Answer: C
Which of the following behaviors of a firm can be called unethical? A) setting up operations abroad B) manufacturing luxury consumer goods C) tolerating sweatshop conditions D) failing to meet shareholders' expectations with regard to annual profit
Answer: C
Which of the following can extend legal protection to Hudson's proprietary software used in its toys? A) a trademark B) a patent C) a copyright D) a users' license
Answer: C
Which of the following grants protections to the creators of art, music, books, software, movies, and TV shows? A) patent B) trademark C) copyright D) domain registration
Answer: C
Which of the following is NOT an example of a cross-cultural risk factor? A) negotiation patterns B) decision-making styles C) costs of production D) ethical practices
Answer: C
Which of the following is a cultural barrier inherent to service firms that internationalize via FDI? A) Service firms are unable to infiltrate international markets due to language issues. B) The source of a firm's funding determines the location of its international subsidiaries. C) A firm's corporate culture is overly influenced by its national culture. D) Firms that internationalize via FDI usually make large spending cuts on advertising campaigns.
Answer: C
Which of the following is a driver of globalization? A) greater emphasis on proactive internationalization B) internationalization of firm's value chain C) integration of world financial markets D) globalization of services
Answer: C
Which of the following is another term for importing? A) capital investment B) supply side development C) global sourcing D) unilateral procurement
Answer: C
Which of the following is characteristic of globalization of markets? A) lack of skilled labor B) conservatism C) declining trade barriers D) diminishing gap between the rich and the poor
Answer: C
Which of the following is most important for Tag-Mart's top management to determine while making a choice between Sato and Aoki as the new store manager? A) How many shoppers are expected at the Tokyo Tag-Mart grand opening sale? B) How many locally owned stores will Tokyo Tag-Mart compete against? C) Would customers at the Tokyo Tag-Mart prefer strong customer service or a U.S.-style shopping experience? D) What is the average age and annual income of Tokyo Tag-Mart shoppers?
Answer: C
Which of the following is true about globalization's effect on culture? A) It segregates people on the basis of race and ethnicity. B) It decreases diversity within a society by blocking the free flow of cultural ideas. C) It liberates people culturally by undermining the ideological conformity of nationalism. D) It decreases the choices available to local people by making their countries culturally poor.
Answer: C
Which of the following is true about language? A) Language does not entail facial expressions and gestures. B) National languages, dialects, and translation facilitate straightforward communication. C) Language has both verbal and nonverbal characteristics. D) Business jargons are common across cultures.
Answer: C
Which of the following is true about low-context cultures? A) People belonging to low-context cultures do not prefer explicit communications. B) Low-context cultures emphasize an indirect and polite face-saving style of communication. C) Low-context cultures rely on elaborate verbal explanations, putting much emphasis on spoken words. D) People belonging to low-context cultures view communication as a means to promote smooth, harmonious relationships.
Answer: C
Which of the following is true with regard to corruption? A) Countries with minimal corruption fail to attract direct investment. B) In firms, corruption rarely occurs across the range of value chain activities. C) Corruption harms the poorest in societies. D) Under the Sherman Antitrust Act, firms charged for corruption may be fined $2 million and managers can be imprisoned for up to five years.
Answer: C
Which of the following managers portrays high uncertainty avoidance? A) Greg manages the market development fund team for a leading computer manufacturing firm. He is entrepreneurial and makes decisions quickly under tough situations. B) James is the business head of marketing in a leading automobile manufacturing company. He coaches his team members to become accustomed to risk and organizational change. C) Henry is the managing editor at Paes publications. He emphasizes slow decision making, and is prone to investigate the nature and potential outcomes of several options. D) David manages the technical team at TR Solutions. He is open to different opinions from team members and is not threatened by differing opinions.
Answer: C
Which of the following refers to a typical CSR value? A) increasing profits B) upholding market monopolies C) engaging in philanthropy D) sustaining sweatshops
Answer: C
Which of the following reflects the major contribution of GATT to globalization? A) It instituted strict controls on international currencies. B) It simplified patent and copyright laws. C) It reduced barriers to international trade and investment. D) It eliminated the divide between the rich and the poor.
Answer: C
Which of the following situations is an example of geocentric orientation? A) Marsha, CEO of QST Solutions, believes that top level executives at her company should be Americans to avoid any communication gaps. B) The Gram Group of retail stores decided to open branches in China and focus on changing their policies to suit the Chinese population to maximize profits. C) Derek, the VP of Banner Technologies, wants managers from the firm's India office to visit the U.S. branch to provide training to American officials visiting India. D) Chill&Break Inc., an American global coffee company, is used to judging other cultures by the standards of its own culture.
Answer: C
Which of the following would be most important for Acme to determine before outsourcing its programming services to India? A) What benefits have Indian companies gained historically from internationalizing their value-chain activities? B) Do Indian businesses outsource value-chain activities to Europe? C) Would the lower cost of outsourcing allow Acme to sustain a competitive advantage in its business operations? D) Is either of the Indian health care companies interested in moving their operations abroad?
Answer: C
Which of the following, if true, best supports WFC's decision of entering the Swedish market? A) The demand for fish & chips has grown steadily in the U.K. over the past few years. B) In Sweden, restaurants selling fish & chips are no more popular than those that do not. C) By boosting worldwide demand, globalization has incentivized business expansion. D) Globalization encourages creativity and diversity in the workplace.
Answer: C
Who among the following managers is most likely to raise concern over the ban on advertising directed at children in his/her country? A) Marta B) Geoff C) Luis D) Jang
Answer: C
________ marked the end of the 50-year Cold War and smoothed the integration of former command economies into the global economy. A) The end of the World War II B) The Bolshevik Revolution in Russia C) China's free-market reforms D) China's move to join the WTO
Answer: C
________ refers to offering, giving, receiving, or soliciting anything of value to influence the actions of a government official or a corporate manager. A) Patenting B) Piracy C) Bribery D) Normativism
Answer: C
________ refers to the learned, shared, and enduring orientation patterns in a society. A) Ethnicity B) Heritage C) Culture D) Race
Answer: C
________ represents the base of the pyramid of ethical behavior. A) Ethical behavior B) Corporate social responsibility C) Complying with laws and regulations D) Guarding against corruption
Answer: C
A value chain is ________. A) the sequence of administrative policies implemented to promote economic integration by a government B) the process of relocating manufacturing and production to valuable and cost-effective locations abroad C) the process of integrating national economies during a financial crisis D) the sequence of value-adding activities performed by a firm in the course of developing, producing, marketing, and servicing a product
Answer: D
An "emic" analysis of culture ________. A) aims to be scientific and culturally neutral B) describes culture from the perspective of an outside observer C) compares the culture to others and explains it in unbiased, objective terms D) describes behavior in terms meaningful to a person functioning within the culture
Answer: D
An idiom ________. A) refers to the objective analysis of a situation B) refers to the perception about someone or something that may or may not be true C) is a highly ambiguous rhetoric device used in high-context cultures D) is an expression whose symbolic meaning is different from its literal meaning
Answer: D
Bethany presents another opportunity that involves the purchase of a manufacturing plant in South Korea. She explains that this type of strategy will involve ________ ownership on the part of the firm. A) indirect B) passive C) short-term D) active
Answer: D
Cross-cultural proficiency is characterized by all of the following EXCEPT ________. A) perceptiveness B) flexibility and adaptability C) valuing personal relationships D) preference for ambiguity
Answer: D
Financial market integration makes it possible for internationally active firms to ________. A) nationalize manufacturing industries B) minimize offshoring C) increase tariffs on the import of automobiles and industrial machinery D) engage in foreign currency transactions
Answer: D
Firms with strong environmental interests are most likely to ________. A) provide employees educational opportunities B) encourage the use of sweatshops C) optimize diversity in hiring D) minimize pollutants in manufacturing
Answer: D
In the five-step framework for making ethical decisions, implementing a course of action implies ________. A) assessing how effective the decision was B) reviewing any proposed action to ensure it is acceptable according to company policy and the firm's code of conduct C) determining the nature and dimensions of the ethical problem D) creating new rules, processes, or procedures, and putting these into effect
Answer: D
One shareholder wanted clarification about a research effort that investigated the possibility of setting up a plant in China. The CEO explained that serving China's rapidly growing middle class population would enable Sterling to increase the size of its customer base dramatically. In China, the CEO was most likely interested in ________. A) avoiding government intervention B) challenging Chinese competitors C) gaining access to innovative ideas D) developing economies of scale
Answer: D
One summit attendee pointed out that the total value of her country's products trade typically accounted for more than 100 percent of her nation's GDP. This attendee most likely represents ________. A) Japan B) United Kingdom C) France D) Netherlands
Answer: D
Rosa Suarez reported on her analysis of cross-cultural risks involved with establishing the plant in Country C. Each of the following was most likely discussed in her report EXCEPT ________. A) language barriers B) lifestyle differences C) religious beliefs D) the level of national debt
Answer: D
Ethical behavior represents the base of the the pyramid of ethical behavior.
Answer: FALSE
The CEO introduced another overseas effort by noting that it represented an attempt to confront an international competitor. The CEO was most likely referring to which of the following efforts? A) a new plant established in Vietnam to benefit from low-cost labor B) a sales outlet established in Indonesia, where Sterling could charge more for its products C) a marketing and advertising partnership established with a successful French car retailer D) a distribution center established in London to preempt the growth of a British car manufacturer
Answer: D
The first phase of globalization was characterized by the ________. A) rise of steel production B) rise of SMEs C) dominance of MNEs in the agricultural industry D) growth of railroads
Answer: D
The fourth phase of globalization ________. A) is characterized by the rise of electricity and steel production B) is characterized by the rise of MNEs from Japan C) witnessed the Bretton Woods Conference of twenty-three nations in 1947 that led to the General Agreement on Tariffs and Trade D) facilitated the globalization of the service sector in such areas as banking and retailing
Answer: D
The fourth phase of globalization is characterized by ________. A) rise of railroads and ocean transport B) reduction of barriers to trade by Western industrialized countries C) the initiation of the Marshall Plan to reconstruct Europe D) enormous growth of cross-border trade and investment
Answer: D
The relocation of manufacturing and other value-chain activities to cost-effective locations abroad is known as ________. A) insourcing B) cultural imperialism C) contagion D) offshoring
Answer: D
The representative from Business B is most likely from ________. A) Panama B) Hungary C) Uganda D) Japan
Answer: D
Titania is a country characterized by a high-context culture. This implies that ________. A) the people of Titania tend to conduct negotiations as efficiently as possible B) the people of Titania tend to use legalistic contracts to conclude agreements C) business is primarily deal-oriented in Titania D) personal relations and goodwill are valued in Titania
Answer: D
When making decisions regarding ethical business actions, managers should ________. A) minimize employee empowerment to achieve greater control B) focus mainly on the company's obligations to produce profits for its shareholders C) place the highest emphasis on enhancing the company's ability to benefit from a common pool of resources D) balance their obligation to shareholders with explicit contributions to the broader public good
Answer: D
Which of the following activities in Acme's value chain would be internationalized if Acme decides to establish a development contract with one of the Indian software firms? A) sales B) distribution C) marketing D) procurement
Answer: D
Which of the following benefits of IT is specific to smaller firms? A) It mitigates organizational anarchy. B) It creates competitive advantages by encouraging organizational learning. C) It aids in the consolidation of market monopolies. D) It allows firms to design and produce customized products they can target to narrow, cross-national market niches.
Answer: D
Which of the following best explains why export growth has outpaced the growth of domestic production during the last few decades? A) Both world exports and domestic production have grown significantly over the past 30 years. B) The cost to import products is generally higher than the cost to produce domestic products. C) Growth in gross domestic product in most countries has steadily increased since 1970. D) Advanced economies now source many of their consumable products from low-cost manufacturing nations.
Answer: D
Which of the following countries have the LEAST corruption? A) Mexico B) Philippines C) Russia D) Denmark
Answer: D
Which of the following countries hosts the greatest number of MNEs? A) Germany B) Japan C) Netherlands D) United States
Answer: D
Which of the following countries is an example of a strongly collectivist society? A) Ireland B) Canada C) Australia D) China
Answer: D
Which of the following is a societal consequence of market globalization? A) greater emphasis on proactive internationalization B) internationalization of firm's value chain C) new risks and instant rivalry from foreign competitors D) offshoring and the flight of jobs
Answer: D
Which of the following is an example of a supranational institution? A) the World Intellectual Property Organization B) the UNICEF C) the Red Cross D) the World Trade Organization
Answer: D
Which of the following is true with regard to the rights approach? A) It is based on the belief that the best action treats everyone equally and fairly. B) It produces the greatest balance of good over harm to customers, employees, shareholders, the community, and the natural environment. C) According to the rights approach, the most important virtues are truth and prudence. D) It is based on the belief that, regardless of how you deal with an ethical dilemma, human dignity must be preserved.
Answer: D
Which of the following represents the final stage in a firm's value chain? A) marketing B) procurement C) research & development D) sales and service
Answer: D
Which of the following situations is an example of the effect of globalization on culture? A) Burqas and hijabs are commonly worn by women in Islamic societies. B) Hinduism is a major religion in India. C) Pizzas sold in the U.S. are often piled high with meat. D) English tends to dominate cross-cultural commerce.
Answer: D
Which of the following types of risk is also known as political risk? A) currency risk B) cross-cultural risk C) commercial risk D) country risk
Answer: D
Which of the following would most likely be considered an appropriate action for a multinational company in meeting its global corporate social responsibility obligations? A) lowering production costs for specific manufactured items B) improving the efficiency of assembly line operations C) developing a strategic plan to enter an emerging market D) promoting rights for people with disabilities
Answer: D
Ethnocentric orientation refers to a host-country mind-set in which the manager develops a strong affinity with the country in which she or he conducts business.
Answer: FALSE
Which of the following, if true, implies that Freedom has a strong social interest? A) The top management of Freedom actively engages in positively contributing to the disadvantaged communities in the society. B) According to Freedom, a firm that fails to institute a green purchasing policy in sourcing its inputs is more likely than not to fail in the long run. C) Freedom considers that the key to success for MNCs lie in their ability to tap resources effectively and at a lower cost. D) Despite the overseas vendor's effectiveness, Freedom decides not to enter into a contract with it because according to Freedom, tolerating sweatshop conditions is unethical.
Answer: D
Which of the following, if true, most supports the decision to operate the Tokyo store in a manner similar to Tag-Mart stores in the U.S.? A) Customer service is of utmost importance to local shoppers. B) Finding efficient and knowledgeable employees in Tokyo is difficult. C) Other supercenter stores in Tokyo have gone out of business in the last year. D) Local shoppers desire both efficiency and low prices.
Answer: D
While a degree of cultural imperialism may be at work, it is offset by the countertrend of ________. A) offshoring B) McDonaldization C) privatization D) local nationalism
Answer: D
_______ is most likely to point to a controversial practice in his/her country in which the compensation of top executives is far greater than that of low-ranking subordinates. A) Geoff B) Luis C) Jang D) Marta
Answer: D
________ is the procurement of products or services from suppliers located abroad. A) Licensing B) Franchising C) Deceptive marketing D) Global sourcing
Answer: D
________ refers to ideas or works created by individuals or firms and includes a variety of proprietary, intangible assets: discoveries and inventions; artistic, musical, and literary works; and words, phrases, symbols, and designs. A) Global sourcing B) Corporate governance C) Constant capital D) Intellectual property
Answer: D
A corporate culture that advocates profit over sustainability and human welfare cannot lead to employee abuse.
Answer: FALSE
A cultural metaphor is a generalization about a group of people that may or may not be factual.
Answer: FALSE
According to the framework for arriving at ethical decisions, a course of action must be identified as soon as the ethical problem is detected.
Answer: FALSE
An ethnocentric orientation positively impacts the ability of managers to manage business projects and new business practices abroad.
Answer: FALSE
Businesses based in societies characterized by high uncertainty avoidance encourage managers to take risks and make quick decisions.
Answer: FALSE
Communications, information, and transportation technologies have decreased people's ability to learn about and connect with unfamiliar cultures.
Answer: FALSE
Converging tastes of consumers worldwide promote traditional lifestyles and values in individual countries.
Answer: FALSE
Creating alternatives is the last step of the framework for arriving at ethical decisions.
Answer: FALSE
Cross-cultural proficiency cannot be obtained from reading books or befriending natives in one's own country.
Answer: FALSE
Cross-cultural risk is often intensified by managers with geocentric tendencies.
Answer: FALSE
Culture refers to the inherited attitudinal traits of an individual.
Answer: FALSE
Easy accessibility of the Internet has led to a perceptible decline in deceptive marketing.
Answer: FALSE
English is the most common primary language in the world.
Answer: FALSE
An international human rights organization recommends that its member countries review their human rights policies on a periodic basis to ensure that their governments are upholding ethical standards for the treatment of prisoners. Which of the following represents the most effective reasoning in support of the organization's recommendation? A) Ethical policies and practices tend to remain consistent within the same country over time. B) Nations should emphasize more on rehabilitation than retribution in their treatment of prisoners. C) Nations should enforce only those ethical standards that have been adopted by other nations.
D) Ethical standards change over time, so national policies should be updated as necessary. Answer: D