MKT 310 Exam 2

Which is true of free trade blocs like the EU? a. Companies can capitalize on economies of scale in production. b. The cost of production generally rises because of import tariffs. c. Individual markets for goods shrink. d. Consumers in each country have less choice as competition effects come into play. e. First-mover advantages are prevalent.

a. Companies can capitalize on economies of scale in production.

When an employee says no to a supervisor because what he or she was asked to do was unethical, it exhibits the employee's a. moral courage. b. organizational citizenship. c. ethical dilemma. d. cross-cultural literacy. e. cultural relativism.

a. moral courage.

When considering the implications of its decision to provide an electric version of its cars, VW a. must use moral imagination. b. put the demands of shareholders above stakeholders. c. should avoid moral courage and focus on cultural relativism. d. must engage ethics officers to ensure the legality of its decisions. e. should encourage nobles oblige at the expense of corporate social responsibility.

a. must use moral imagination.

The phrase "lost is translation" refers to a. the misunderstanding that occur when people in different countries interpret a message differently than was intended b. the situation that occurs when another language doesn't have a word for something c. the use of unspoken language rather than spoken d. the multiple definitions a single word can have e. sending a message in one language and translating it into another

a. the misunderstanding that occur when people in different countries interpret a message differently than was intended

Why is the EU interested in forming a free trade agreement with Japan? a. The EU believes it has the upper hand in trade negotiations. b. The EU believes that free trade is a positive-sum game. c. The EU believes that Japan will capitulate to its demands. d. The EU believes that trade is superior to foreign direct investment. e. The EU believes free trade is a zero-sum game.

b. The EU believes that free trade is a positive-sum game.

Suppose a Japanese company has branch offices in Spain where Spanish is spoken at work, and France where French is spoken at work. Which is true? a. It is essential to adopt a common language of business b. The home country societal language dominates in all managerial settings c. Cultural misunderstandings occur even when everyone is working toward the same goal d. Societal cultural differences disappear because everyone shares a common organizational culture e. Unspoken language encounters are more important than spoken encounters

c. Cultural misunderstandings occur even when everyone is working toward the same goal

VW's decision to commit significant financial and R&D resources to electric vehicles can best be described as ____ approach to business ethics. a. a righteous moralist b. a cultural relativism c. a utilitarian d. a naïve immoralist e. the Friedman doctrine

c. a utilitarian

VW's goal of being the world leader in electric vehicles together with its decision to devote large resources to the effort signals a. that personal ethics are important. b. the engagement of ethics officers. c. corporate social responsibility. d. that commitment to sustainability is a requirement for promotion. e. profits trump ethical behavior.

c. corporate social responsibility.

Kyra works for a costume jewelry manufacturer and while their products are lower in cost, there is a high degree of consumer pressure to create the best quality jewelry possible and to constantly innovate with new jewelry designs. Which aspect of Porter's Diamond does this demonstrate? a. factor endowments b. firm structure and rivalry c. demand conditions d. related and supporting industries e. first-mover advantages

c. demand conditions

Within the context of the individual as the basic unit of a social organization, what is an implication of the emphasis on individualism in many Western societies? a. high degree of social stratification b. low degree of competition between individuals c. high degree of managerial mobility between companies Correct d.low degree of entrepreneurial activity e. high degree of cooperation between individuals

c. high degree of managerial mobility between companies Correct

In the Republic of Nabu, natives are resistant to change and do not like to take risks. They value job security and retirement benefits. In addition, they have a strong need for rules and regulations. Based on this information, the Republic of Nabu demonstrates which cultural dimension identified by Hofstede? a. individualism b. femininity c. high uncertainty avoidance d. low power distance e. masculinity

c. high uncertainty avoidance

The practice of "gift giving" between the parties to a business negotiation is considered right and proper 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 demonstrates that a. notions of ethics are universal. b. Asian countries are still influenced by totalitarianism. c. what is ethical depends on one's cultural perspective. d. Asian cultures are more economically advanced. e. accepted employment practices are universal.

c. what is ethical depends on one's cultural perspective.

Which is the most beneficial quality for an international business manger to posses? a. having a local assistant to provide clarity b. having a local office c. having the ability to speak slowly and clearly d. being able to understand the perspective of a receiver of a message e. being able to speak more than one language

d. being able to understand the perspective of a receiver of a message

One of the most important things an international business person can do to avoid cultural misunderstandings is to a. ensure that contracts are tightly worded b. choose a common language like English c. adopt a laissez faire attitude d. listen to your client or customer e. hire and interpreter

d. listen to your client or customer

Which philosophical approach is typically associated with managers from developed nations, and claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries? a. sullivan principles b. cultural relativism c. naive immoralism d. righteous moralism e. friedman doctrine

d. righteous moralism

SolarCorp. won the bid to build an energy facility for a host country government. However, the execution of the contract has been delayed due to bureaucratic procedures in the less developed nation. In order to legally overcome this problem, SolarCorp. could resort to the payment of a. customs duties. b. excise taxes. c. expatriation taxes. d. speed money e. repatriation fees.

d. speed money

Krisp Systems decides to move production to a developing country where they are free to pump pollutants into the atmosphere without legal restriction. By doing this, the company is contributing to a. corporate social responsibility. b. corruption. c. cultural relativism. d. the global tragedy of the commons. e. sustainability

d. the global tragedy of the commons.

The European Union (EU) supports rules-based free trade. Why? a. Free trade allows individual companies to gain competitive advantage over rivals. b. Free trade allows the smaller European countries to have the same economic status as larger ones. c. Free trade encourages national competitive advantage. d. Free trade allows Europe's mega powers—Germany and France—to dictate regional trade regulations. e. Free trade funds the economic welfare of EU member countries and helps to attract foreign investment.

e. Free trade funds the economic welfare of EU member countries and helps to attract foreign investment.

The government of the Republic of Senna enforces tariffs and quotas to limit imported goods, while exports are subsidized. By using these instruments, the government seeks to achieve a surplus in the balance of trade. Based on this information, which approach most influences the Republic of Senna's approach to international trade? a. product life-cycle theory b. new trade theory c. Heckscher-Ohlin theory d. theory of absolute advantage e. mercantilism

e. mercantilism

The Republic of Monaslu has the world's most efficient car manufacturing industry, while the country of Ingora has the world's most efficient electronics industry. The Republic of Monaslu trades cars with Ingora in exchange for consumer electronics. This form of trade between the two countries illustrates a. the product life-cycle theory. b. a zero-sum game. c. the Heckscher-Ohlin theory. d. the mercantilist doctrine. e. the theory of absolute advantage.

e. the theory of absolute advantage.