MGT 475

Which of the following is true of the influence of economic development on consumer preferences?

Consumers in developed nations are willing to pay more for products that have additional features customized to their tastes.

Which of the following statements is true about the difference between contracts in common law and civil law systems?

Contracts drafted under a common law system tend to be longer than those drafted under a civil law system

In which countries are we likely to find free market economies?

Countries where individual goals are given primacy over collective goals

Which of the following is an argument against standardized advertising?

Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.

Which of the following supports the argument that customer demands for local customization are on the decline worldwide?

Customer tastes have converged worldwide

Why do companies find dealing with high pressures for both, cost reductions and local responsiveness, a difficult strategic challenge?

. Being locally responsive tends to raise costs.

In the context of cost, which of the following can be considered as the most attractive market or investment site?

A country that has a well-developed body of business contract law

Which of the following is true of price discrimination as a part of international pricing strategy?

A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense.

Which of the following is a consequence of the vague terminology used in most antidumping actions?

A firm's ability to engage in price discrimination may also be challenged.

Which of the following statements is true about performing a manufacturing activity in several locations at once?

Many firms disperse their manufacturing plants to different locations as a "real hedge" against potentially adverse moves in currencies.

Which of the following is true of W. Edward Deming's beliefs about the total quality management pilosophy?

He suggested that the quality of supervision should be improved by allowing more time for supervisors to work with employees.

Which of the following statements is true of Geert Hofstede's work on cultural dimensions?

Hofstede's work fails to consider that many countries have more than one culture.

Which of the following is most likely to lead to unethical behavior in a business setting?

Home-country managers working abroad in multinational firms away from their ordinary social context and supporting culture

In the context of "knowledge" economy of the twenty-first century, which of the following statements is true about intellectual property?

Intellectual property has become an increasingly important source of economic value for businesses.

Which of the following statements is true with regard to Geert Hofstede's cultural dimensions?

Members of high uncertainty avoidance cultures had a strong need for rules and regulations

Which of the following is true of price elasticity of demand?

Price elasticity tends to be greater in countries with low income levels.

Which of the following is most likely to be an implication of the global financial crisis of 2008-2009, and the recession that followed?

Retrenchment from free markets and democracy

Which of the following is inconsistent with the Marxist philosophy?

Selling state-owned enterprises to private investors

One of the reasons why a firm typically charges for a good or service less than the value placed on that good or service by the customer is because:

it is normally impossible to segment a market based on each customer's reservation price

Which of the following statements is true about political systems?

it is possible to have totalitarian societies that are not collectivist.

A boom in product liability suits and awards in the United States resulted in a drmtic increase in the cost of liability insurance. Many business executives argue that this:

makes American businesses less competitive in the global marketplace

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

In a _____________ economy, certain sectors of the economy are left to private ownership and free market mechanism, while in other sectors there is significant state ownership and government planning.

mixed

When an employee says no to a supervisor because what he/she was asked to do was unethical, it exhibits the employee's:

moral courage

If a country wants to improve its attractiveness as a place for doing business and as an investment site, it should:

move toward a market-based system

In the modern world, corporations can contribute to the global tragedy of the commons by:

moving production to locations where they are free to pump pollutants into the environment.

In terms of communication strategy, in highly developed countries such as the United States:

noise is extremely high

Maverick Stars Inc., a U.S. based multinational company, applies its home-country standards of employment and production in its manufacturing facilities located in some less-developed host nations. In this context, the company is most likely to be criticized for:

nullifying the reasons for investing in those countries.

The government of Lithaya placed a large order for buses with Blue Ace Inc., a manufacturing company in Lodesia. in return, it asks the company to subcontract some work to Lithayan manufacturers. this is an example of a(n) _______________ in international business.

offset agreement

The CEO of Gold Chip Software engages in corruption and uses his power in the company to enrich himself and his family members. Consequently, his employees too engage in the same behavior. In this case, the roots of unethical behavior can be traced to:

organizational leadership

Silver Tape Corporation has developed a new type of adhesive tape. Which of the following types of legal protections can grant the company exclusive rights for a defined period to the manufacture, use, or sale of the new adhesive tape?

patent

Black economy is most likely to be prevalent when:

people engage in barter agreements to avoid paying taxes.

Which of the following factors in a country is most likely to cause a political risk for an international business?

the presence of more than one ethic nationality

Unipeg Corporation has uniform high sales targets for its employees all across the globe, regardless of the environmental constraints in each market. Employees are penalized for any shortfall. This has caused many employees to falsify the values of their sales. In this context, the roots of unethical behavior can be traced to:

unrealistic performance expectations

The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits o capitalism:

until property rights are better defined and protected

The _______ approach to ethics holds that an action is judged desirable if it leads to the best possible balance of good consequences over bad consequences.

utiliarian

Which of the following is true of the export performance of the United States, Germany and Japan?

The United States has notyet evolved an institutional structure for promoting exports similar to that of Germany.

Which of the following is an example of a first-mover advantage?

The ability to create switching costs that tie customers into one's products and services

Which of the following is true of the basic entry decisions a firm must make before a firm contemplates foreign expansion?

The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.

Which of the following is true of countertrade?

The governments of developing nations sometimes insist on a certain amount of countertrade.

Which of the following best describes the relationship between the number of "sigmas" and the number of errors?

The higher the number of "sigmas," the small the number of errors.

Which of the following is true of the influence of cultural differences on product attributes?

The impact of tradition is important in foodstuffs and beverages.

Which of the following is true of medium-sized and small firms?

They consider exporting only after their domestic market is saturated.

How have new information and communication technologies, including the Internet, affected the political economy in general?

They have reduced a state's ability to control access to uncensored information.

Which of the following statements is true about Sullivan principles?

They promoted the abolition of apartheid laws.

Which of the following best supports the economic transformation from a centrally planned command economy to a market-based economy?

Transferring the ownership of state property into the hands of private individuals

In the United States, the Foreign Corrupt Practices Act was passed during the 1970s following revelations that:

U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts.

Uvicon Inc. and Bionor Inc. are firms that compete against each other in the global market. Uvicon Inc. has a high level of fixed costs and high minimum efficient scale, while Bionor Inc. has a low level of fixed costs and minimum efficient scale. In this scenario, which of the following is true?

Uvicon Inc. will benefit from centralizing its production activities and Bionor Inc. from decentralizing.

The recent trend to outsource information technology jobs to countries such as India indicates that:

a good education system is a determinant of national competitive advantage.

Firms engaged in international trade deal with people they may have never seen, sho live in different countries, who spek different languages, and who abide by different legal systems. These factors result in:

a lack of trust between the parties.

Neon Synergy Inc. operates in three different countries, and is headed by a CEO who believes that the best approach to ethics is cultural relativism. In this context, which of the following statements is most likely to be true regarding Neon Synergy?

a. The business units of Neon Synergy will be empowered to adopt the standards of ethics followed in their respective host nations.

In the contest of political economy, the past three decades have seen a general move toward:

adoption of legal systems that better enforce property rights.

An export credit insurance is necessary when the:

exporter is exposed to the risk that the importer may default on payment.

Countertrade occurs when the:

exporter may not be paid in his or her home currenc due to noncovertibility.

Pink Polka Fashion Inc., a multinational clothing brand, has plans to expand in the European Union (EU) marketplace. In order to be able to do so, the EU requires that the:

firm's products be certified under ISO 9000

A letter of credit reduces an importer's ability to borrow funds for other purposes because:

it is a financial liability against the importer.

The common law system enjoys a degree of flexibility not found in other systems because:

it is interpreted by the law courts with regard to tradition, precedent, and custom

Profit growth is measured by

the percentage increase in net profit over time

Which of the following nations is most likely to be unappealing as a place for doing business?

A nation that has a totalitarian political system

Which of the following is a feature of representative democracy?

A nonpolitical police force and armed service

Which of the following is true of a product?

A product can be viewed as a bundle of attributes.

Which of the following statements is true about economies of scale?

Attaining economies of scale increases a firm's profitability

The Republic of Marwa has decided to open its economy to globalization. Which of the following will facilitate this decision of Marwa?

Adopting the Contracts For the International Sale of Goods (CIGS)

A decade ago the government of Weinsland decided to liberalize the country's economy. As a result, today the country is experiencing rapid economic advancement and societal changes that are favorable for international business. Which of the following changes is most likely to occur in Weinsland?

As the country gets richer, there will be a ship in the society from "traditional" to "secular rational" values.

In which of the following tasks will the learning effects be most significant?

Assembly process involving 1,000 complex steps

________________ is an ethical system that has influenced behavior and shaped culture in parts of Asia, however it cannot be considered as a religion.

Confucianism

Which of the following is a reason why firms need to adjust their marketing mix from segment to segment?

Different segments exhibit different patterns of purchasing behavior.

Which of the following does Islam prohibit?

Earning profits by breaking contractual obligations

Which of the following statemetns is true about gross national income (GNI)?

Economist Amartya Sen has argued that should be assessed less by material output measures such as GNI per capita

Geminia System, manufacturer of car components, wants to set up a system that will help in sending invoices to its customers once orders for input supply are placed. Which of the following should the company use to perform this function?

Electronic data interchange

Which of the following is a strategic step taken to increase a firm's probability of exporting successfully?

Entering a foreign market on a small scale.

Which of the following is true of market entry by an international firm considering foreign expansion?

Entering a large developiong nation before most other international businesses on a large scale is associated with high levels of risk.

Which of the following is true of exporting?

Exporters often face voluminous paperwork, complex formalities, and many potential delays and errors.

Which of the following is true of market segmentation?

For a segment to trancend national borders, consumers in that segmetn must have some compelling similarities along important dimensions.

Which of the following is most likely to be advocated by individualism?

Free market ideologies should be followed for achieving better standards of living.

Cadmium Technologies Inc. believes that the sole purpose of its existence is to maximize profits for its stockholders. The firm has often been criticized for not engaging in any social investments. However, the firm has been appreciated for abiding by the laws while earning profits. According to the information, which of the following approaches to ethics is most likely being adopted by Cadmium Technologies?

Friedman doctrine

Which of the following does the U.S. law and OECD convention allow as an exception?

Grease payments or speed money

Which of the following is true of distribution channel exclusivity?

In Japan, relationships among manufacturers, wholesalers, and retailers often go back decades.

Which of the following statements is true about ethical decision-making?

In ethical decision-making, managers need to ensure that a proposed decision does not violate the fundamental rights of any stakeholders.

Which of the following is a way in which the U.S. Departmetn of Commerce helps potential exporters?

It assembles a "comparison shopping service" for 14 countries that are major markets for U.S. exports.

Which of the following is true of a letter of credit in international trade?

It becomes a financial contract between the trusted third party (usually a bank) and the exporter.

Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity?

It enables a firm to differentiate its product offering from those of competitors.

How does possessing a core competence help a firm?

It enables a firm to reduce the costs of value creation.

Which of the following statements is most likely to be true regarding private ownership?

It gives entrepreneurs an incentive to search for better ways of serving consumer needs.

Which of the following is true of multipoint pricing?

It involves aggressive pricing in one market to elicit a competitive response from a rival in another market.

Which of the following is an advantage of turnkey projects as a mode of entry into foreign markets?

It is a useful strategy to earn great returns from the know-how of a technologically complex process

Which of the following is a disadvantage of vertical integration?

It is difficult to determine appropriate prices for goods transferred to subunits within a firm.

Which of the following is true of a localization strategy?

It makes sense if the value added by customization supports higher pricing

How does privatization help stimulate gains in economic efficiency?

It provides incentives to new private owners to serch for increases in productivity and to enter new markets.

Which of the following is a definition of market segmentation?

It refers to identifying distinct groups of customers whose purchasing behavior differs from others.

Which of the following is true of an export management company (EMC)?

It specializes in serving firms inparticular industries and in particular areas of the world

Which of the following is true of a letter of credit?

It states that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents.

According to _____________, all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.

John Rawls

Which of the following is a disadvantage of joint ventures as a mode of entry into foreign markets?

Joint ventures can lead to conflicts and battles for control between the investing firms

Which of the following statements is true of the efficiency frontier?

Not all positions on the efficiency frontier are viable.

Which of the following is detrimental to an ethical business setting?

Operating in cultures which score high on masculinity and power distance measures

Which of the following is most likely to be considered as unethical?

Orion Inc. sends its products for recycling to a developing nation because the pollution control laws in its home country are much more strict that that in the developing nation.

________________ arise when the business system in a foreign country is so different from that in a firm's home market that the enterprise has to devote considerable effort, time, and expense to learning the rules of the game.

Pioneering costs

Which of the following is the most important determinant of channel length?

The degree to which the retail system is fragmented

Which of the following is a disadvantage of small-scale entry for an international firm considering foreign expansion?

The difficulty of building market share and capturing first-mover advantages

The United Republic emphasizes individual performance and achievements in every sphere of society. Which of the following statements is true about the society of this country?

The employees in this country will lack loyalty and commitment to a company

Which of the following is an advantage of franchising as a mode of entry into foreign markets?

The franchiser is relieved of many of the costs and risks of opening a foreign market on its own.

Which of the following is an advantage of licensing as a mode of entry into foreign markets?

The licensor does not have to bear the development costs and risks associated with opening a foreign market.

Which of the following is a disadvantage of exporting as a mode of entry into foreign markets?

The local agents may not market the firm's products as well as the firm would if it managed its marketing itself.

Which of the following is true of choosing a distribution strategy?

The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.

Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?

The rise of global media phenomenon seems to support Levitt's argument.

Which of the following is an advantage of wholly owned subsidiaries as a mode of entry into foreign markets?

The risk of losing control over a firm's technological competence is reduced.

Which of the following statements is true about the changing economic system since the 1980s?

There has been a shift away from a mixed economy

Which of the following is true of products with high value-to-weight ratios?

They are expensive and do not weigh very much.

Which of the following is an advantage of acquisitions as a means of entry into foreign markets?

When a firm makes an acquisition, it buys a set of assets that are producing a known revenue

According to research, when do consumers usually use the country of origin as a cue when evaluating a product?

When consumers lack detailed knowledge of a product

Which of the following statements is true about specialized assets?

When one firm must invest in specialized assets to supply another, mutual dependency is created

Jupiter Systems is a high-tech firm looking to set up operations in a foreign country to profit from its technological know-how which is its core competency. Which of the following modes of entry would be most favorable to the firm if it wants to keep a tight control over its technology?

Wholly owned subsidiary

Amber Engineers Inc. wants to be able to customize products for different national markets and in turn increase its customer responsiveness. However, the fxied costs associated with its production are high. Hence, these functions will be performed most efficiently if Amber Engineers In.:

adopts flexible manufacturing technologies to help achieve mass customization.

Davis is the manager of a pharmaceutical manufacturing facility in a developing country. The manufacturing unit does not meet the acceptable standards of the manufacturing facility in the home nation. He knows that demanding a better manufacturing unit will raise the cost of the drugs mainly exported to other less developed countries, and hence its price. But he also realizes that by not demanding a better unit, the employees are prone to serious health issues. Davis is facing:

an ethical dilemma

The project manager of a cross-functional team should:

be able to act as an advocate of the team to senior management.

The ______________ of the Cold War ear has vanished.

bipolar world

_________________ are the accepted principles of right or wrong governing the conduct of businesspeople.

business ethics

A firm's ability to increase its profitability and profit growth by expanding globally is constrained:

by the imperative of localization.

When serving as collateral, the bill of lading:

can be used to advance funds to the exporter by its local bank before or during shipment.

Mountland Republic 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. Mountland Republic is most likely to be following a ___________ system of social stratification.

class

In the country of Normian Republic, an individual's right to own land is restricted to a large extent on the basis that it runs counter to "the common good." In this context, which of the following is most likely to be the political system adopted by Normian Republic.

collectivism

Which of the following best exemplifies violation of mores?

committing a financial fraud

The collapse of _____________ in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East.

communism

A firm maximizes its profitability when it:

configures its internal operations to support the position selected by it on the efficiency frontier.

In 2010, the PPP per capita of China was $7,640 and the PPP per capita of the United States was $47,360. This means that the:

cost of living was lower in China

When Shop Smart opened its first super market in China it was unable to generate any sales. After conducting research, it was understood that the local sales personnel found it difficult to communicate with the American store managers. In addition, Chinese consumers found it difficult to shop in the American way. Shop Smart's failure in China can be attributed to the lack of:

cross-culture literacy

Under a(n) _____________ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm.

cross-licensing

Which of the following factors limits a firm's ability to use the same marketing message?

cultural differences

A number of studies have observed that a product's production costs decline by some quantity about each time ______________ doubles.

cumulative output

________________ is a value creation activity which falls into the category of primary activities.

customer service

To be able to accommodate demands for local responsiveness, a firm should:

decentralize production activities to the major national or regional markets.

According to Michael Porter, superior profitability goes to a firm that:

drives down the cost structure of its business

The basic philosophy behind just-in-time (JIT) inventory systems is to:

economize on inventory holding costs.

The work by Jeffrey Sachs suggests that investments in __________ help explain why some countries in Southeast Asia have been able to overcome the disadvantages associated with their tropical geography and grow far more rapidly than tropical nations in Africa and Latin America.

education

According to Max Weber, Protestantism encouraged capitalism's development by:

emphasizing on the importance of hard work and wealth creation for the glory of God and frugality.

Janet believes that the cultural group she belongs to is superior and is hence highly intolerant toward employees from the cultures of other countries. This behavior of Janet is known as:

ethnocentrism

Which of the following terms best represents the systematic reductions in production costs that have been observed to occur over the life of a product?

experience curve

Capricorn Creative Inc., a U.S. based advertising firm, was the first in the advertising industry to identify the growth potential of Brazil and to make huge investments in it's economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. Int he language of business strategy, Capricorn Creative has typically benefited from:

first-mover advantage

________________ are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like.

folkways

Which of the following modes of entry is suitable for service firms where the risk of losing control over the management skills or technological know-how is not much of a concern, and where the firm's valuable asset is their brand name?

franchising

The flow of skills and product offerings from foreign subsidiary to home country and from foreign subsidiary to foreign subsidiary is know as __________________________.

global learning

In comparison to pure command economies, free market economies lack:

government control over production and pricing

An advantage of a(n) _________________, a mode of entry into foreign markets, is that it provides a firm with much greater ability to build the kind of subsidiary company that it wants.

greenfield venture

The management of an acquiring firm is often too optimistic about the value that can be created via an acquisition and is thus willing to pay a significant premium over a target firm's market capitalization. This is know as the ______________ and is the reason acquisitions fail.

hubris hypothesis

The __________ is based on three measures: life expectancy at birth, educational attainment, and average incomes based on PPP estimates.

human development index

Which of the following is most likely to be the result of high degrees of class consciousness in societies?

increase in the costs of production

Producing a standardized product in large volumes will:

increase production efficiency

A company can increase its growth rate by taking goods or services developed at home and selling them internationally. Their returns from such a strategy are likely to be greater if:

indigenous competitors in the nations that the company enters lack comparable products.

When schools emphasize respect for others, obedience to authority, honesty, neatness, being on time, and use a grading system, they are:

indirectly teaching cultural values and norms

Star Synergy Inc., a chemical dye manufacturing firm headquartered in the U.S., has started its production units in the less developed nations of the world in order to benefit from the low production costs. however, the process of dye extraction results in the release of toxic substances. Hence the most ethical and economical way for the firm to tackle this problem will be to:

introduce the company's home nation environmental standards in their less developed nation production units.

Axiom International wants to expand its operations to a country that is politically, culturally, and economically different from its home county. The firm needs to select a mode of entry which would give it access to local knowledge, allow sharing of development costs and risks, and also be politically acceptable. Which of the following modes of entry into foreign markets is most suitable for Axiom International?

joint venture

Which of the following is the cause behind the Basque separatist movement that is going on in Spain for decades?

language and culture difference

Labor productivity increases over time as individuals understand the most efficient ways to perform particular tasks. This is as a result of ______________ .

learning effects

The drawback of just-in-time inventory system is that it:

leaves a firm without a buffer stock of inventory.

Which of the following systems is a part of the political economy?

legal system

A person seeking and receiving help through a guanxi network is:

liable to a social sanction if he or she does not reciprocate when called upon

A firm that expects rapid imitation of its core technology by competitors should:

license its technology to foreign firms

Although China and India are very large markets when measured by number of consumers, their ________ makes them a relatively small market when measured in economic terms.

limited purchasing power

If a value creation activity of a firm can take place in Mexico most effectively, then that activity of the firm must be based in Mexico. Firms that pursue such a strategy are most likely to realize:

location economies

Uniway Technologies Inc. has based its manufacturing units in the country of Lanthania. The country's stable economic and political environment has helped the firm gain competitive advantage by lowering its production costs and improving product quality. Other things being equal, the benefits realized from such a strategy can by typically referred to as ___________ .

location economies

Champion Works Inc. is an animation company, headquartered in the U.S. The CEO of the company has decided to outsource some of the production to companies in developing countries, as the firm seems to be losing out on its competitive advantage. This decision to shift functions or processes to less developed countries is due to their:

lower labor costs

Hofstede's ____________ dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities.

power distance

A lack of trust between two parties engaged in international trade is exacerbated by the:

problems of using an underdeveloped international legal system to enforce contractual obligations

The code of ethics of a company draws heavily upon documents such as the UN Universal Declaration of Human Rights, which itself is grounded in Kantian and rights-based theories of moral philosophy. In the context of this information, this company is most likely to:

respect the dignity of an individual and the right of employees to freedom of association.

A firm that enters many markets at once:

runs the risk of spreading its limited management resources too thin.

The concept of _____________ refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumtion in favor of decisions that have both good economic and social consequences.

social responsibility

Which of the following creates an unfavorable environment for innovations and entrepreneurship?

state monopoly in production

In the modern era, countertrade arose in the 1960s as a way for _______________ to purchase imports.

the Soviet union

The distinctive culture of Wengiston has been losing its predominance among the citizens of the country. This is due to the fact that the people of Wengiston are extensively adopting certain univerally accepted values and norms. This behavior of the people in Wengiston demonstrates _____________ .

the convergence hypothesis

the amount of value a firm creates is measured by

the difference between its costs of production and the value the consumers perceive in its products

A firm should make a component internally rather than contracting it out to a supplier when:

the firm uses proprietary product technology that helps in gaining competitive advantage.

An exporter has to forgo a letter of credit when:

the importer is in a strong bargaining position.

Exporting is nearly always a way to increase the revenue and profit base of a company because:

the international market is much larger than the domestic market.

The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in:

the lack of incentives to engage in economic activity.

When the retail sector is very concentrated:

the orders generated from each sales call can be large.

Spring, an American firm, recently acquired another company known as Tazel Inc. in Indonesia. The high-level managers at Tazel Inc. quit because they could not cope with the domineering and straightforward approach of their American counterparts. This illustrates how acquisitions may fail because:

there is a clash between the cultures of the acquired and acquiring firm.

The Maroon Apparel company controls the weaving, dyeing, cutting, and sewing of its merchandise. Apart from these activities, it also manufactures buttons, zips, buckles, and other accessories for its apparel. This is done in order to exercise tight control over its manufacturing processes and to reduce production costs. This strategy of the company is known as ______________ .

vertical integration

The practice of "gift giving" between the parties to a business negotiation is considered right and proper behavior in many Asian cultures. However, some Westerners view the practice as a form of bribery, and therefore unethical, particularly if the gifts are substantial. This reflects that:

what is ethical depends on one's cultural perspective.

When a time draft is presented to a drawee, he or she signifies acceptance of it by:

writing or stamping a notice of acceptance on its face.