Module 1 (ch 1, 2,4,5) - International Business
The average tariff rates for manufactured goods have fallen significantly since 1950, and now stand at about?
1.6 percent.
________ occurs when a firm exports goods or services to consumers in another country. A) International trade B) Foreign direct investment C) Inward investment D) Outsourcing
A) International trade
________ are typically defined on the basis of characteristics such as family background, occupation, and income. A) Social strata B) Norms C) Social structure D) Groups
A) Social strata
When Jana visits her mother, she takes great pains to watch her language and use good manners because that is what her mother expects of her. This demonstrates the concept of? A) folkways. B) mores. C) rites. D) beliefs.
A) folkways.
31) Which of the following factors hinders globalization of consumer goods market? A) national differences in tastes and preferences B) higher production costs in developed nations C) homogenization of material culture D) increased outsourcing of goods and services
A) national differences in tastes and preferences
Which of the following statements is true regarding an international business? A) An international business needs to invest directly in operations in other countries. B) An international business needs to have homogenous practices across countries. C) An international business can be managed in the same way that a domestic business is managed. D) An international business must find ways to work within the limits imposed by government intervention.
An international business must find ways to work within the limits imposed by government intervention.
________ argued that individual diversity and private ownership are desirable
Aristotle
How does managing an international business differ from managing a domestic business?
Countries differ in their cultures and systems.
A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of A) mores. B) a values. C) an attitudes. D) a folkways.
D) a folkways.
________ 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
________ are the routine conventions of everyday life
Folkways
The ________ makes it illegal for American companies to bribe a foreign government official in order to obtain or maintain business over which that foreign official has authority, and requires all publicly traded companies to keep detailed records that would reveal whether a violation of the act has occurred.
Foreign Corrupt Practices Act (FCPA)
The volume of world trade in merchandised goods has been
GROWING FASTER than world GDP
________ refers to the shift toward a more integrated and interdependent world economy A) Outsourcing B) International marketing C) Privatization D) Globalization
Globalization
A ________ is an association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about each other's behavior
Group
In 2008 and 2009, the ________ became the forum through which major nations attempted to launch a coordinated policy response to the global financial crisis, which started in America
Group of Twenty (G20)
________ refers to a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.
Indulgence
Issy's Ice Cream is an international business. As such, it
Invests in international trade or investment.
Which of the following is true of the IMF? A) It is often seen as the lender of first choice to nation-states whose economies are in turmoil. B) Its loans come with no strings attached. C) It is the less controversial of the two sister institutions, the IMF and the World Bank. D) It has emerged as a significant player in the global economy
It has emerged as a significant player in the global economy.
After the United States, the second-largest source country of MNEs is?
Japan.
NAFTA was passed only after: A) China agreed to establish a higher minimum wage. B) the United States agreed to limit the number of jobs that could be outsourced. C) Mexico committed to tougher enforcement of environmental protection regulations. D) Canada committed to establish new limits on FDI.
Mexico committed to tougher enforcement of environmental protection regulations
________ predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months.
Moore's Law
_______ include such factors as indictments against theft, adultery, incest, and cannibalism.
Mores
________ generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism.
Right-wing totalitarianism
Which of the following focuses on making low-interest loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments? A) the WTO B) the GATT C) the World Bank D) the IMF
The World Bank
Which of the following is a reason that command economies tend to stagnate?
The abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs.
________ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles
Theocratic totalitarianism
The ________ was established on October 24, 1945, by 51 countries committed to preserving peace through international cooperation and collective security.
United Nations
________ is/are best defined as shared assumptions about how things ought to be.
Values
The ________ instrument is designed to address the notion that a leader's effectiveness is contextual. It is embedded in the societal and organizational norms, values, and beliefs of the people being led.
WVS
The ________ is a research project spanning more than 100 countries that explores people's values and norms, how they change over time, and what impact they have in society and business.
World Values Survey
Which of the following is an example of intellectual property? A) a music score B) a laser-tag game C) a software business D) a theater
a music score
Ethical systems are
a set of moral principles, or values, that are used to guide and shape behavior.
Cross-cultural literacy refers to
an understanding of how cultural differences can affect business
A society's social structure refers to its
basic social organization.
Which of the following is a factor of production? A) tariffs B) transportation costs C) capital D) government
capital
Which of the following is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime?
caste system
A ________ law system is based on a very detailed set of laws organized into codes.
civil
An upper-middle-class manager tends to have hostile relationships with the working-class employees in the firm because of his tendency to perceive himself as superior to them based on his class background. In this example, the manager exhibits
class consciousness
A condition where people tend to perceive themselves in terms of their class background and this shapes their relationships with members of other classes is known as
class consciousness.
A ________ is a less rigid form of social stratification in which social mobility is possible.
class system
A political system that prioritizes the needs of the society over individual freedoms is called
collectivism
When ________ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."
collectivism
In a(n) ________ economy, the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold.
command
Under the ________, cases are judged with reference to three characteristics: tradition, precedent, and custom.
common law system
The growth of international trade in service activities has been driven by advances in
communications.
Manchu believed that socialism could be achieved only through violent revolution and totalitarian dictatorship. Manchu was likely a?
communist
Even if a ________ can be characterized as having a single homogeneous culture, often that national culture is a mosaic of subcultures.
country
The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines
culture
One key component of a country's legal system is
defining the rights and obligations of those involved in business transactions
People's right to protest on issues of accountability in public expenditure would be possible in a ________ political setup.
democratic
ABC Global has decided to invest resources in business activities outside its home country. This is called A) foreign direct investment (FDI). B) direct international investment (DII). C) international trade (IT). D) foreign direct production (FDP).
foreign direct investment (FDI)
The G20 was originally established to
formulate a coordinated policy response to financial crises in developing nations.
Which of the following is a feature of a democracy? A) exercise of absolute control by one person or political party B) governance by people or elected representatives C) prohibition of entry to opposing political parties D) complete restriction of individual political freedom
governance by people or elected representatives
The social organization of Western society tends to emphasize on
individual achievement.
The tenet of ________ is that the welfare of society is best served by letting people pursue their own economic self-interest.
individualism
In a(n) ________ society, the welfare of society is best served by letting people pursue their own economic self-interest.
individualist
Totalitarianism
is a form of government in which one person or political party exercises absolute control over all spheres of human life.
Globalization of markets results in markets becoming? A) more interdependent. B) less diverse. C) more protected. D) less competitive.
less diverse
In 2009, the financial crisis in the United States was triggered by
liberal lending policies by U.S. banks to homeowners.
The ________ refers to the extent to which a culture programs its citizens to accept delayed gratification of their material, social, and emotional needs.
long-term versus short-term orientation dimension
According to Geert Hofstede's study, which of the following cultural dimensions would be characterized by a greater readiness to take risks and less emotional resistance to change?
low uncertainty avoidance
Early outsourcing efforts were primarily confined to?
manufacturing activities.
An economy in which the interaction of supply and demand determines the quantity in which goods and services are produced is called a
market economy
In a ________, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.
market economy
Hofstede's masculinity versus femininity dimension looked at the relationship between gender and work roles and found that in
masculine cultures, sex roles WERE SHARPLY differentiated, and TRADITIONAL "masculine values" determined cultural ideals.
In 2008, the U.S. government took an 80 percent stake in AIG to stop that financial institution from collapsing, the theory being that if AIG did collapse, it would have very serious consequences for the entire financial system. What type of economy is this an example of?
mixed
The volume of world trade in merchandise is growing faster than world GDP. This implies that
more firms are dispersing their production processes to global locations.
Brad has been in trouble his whole life. He stole from the local hardware store when he was 12, and as an adult he didn't feel the need to be faithful to his wife. Brad is guilty of violating
mores.
An international business, unlike a multinational enterprise?
need NOT invest directly in operations in other countries
Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as
norms
Antitrust laws in the United States are designed to
outlaw monopolies.
In the 1970s, the United States ________, which requires all publicly traded companies, whether or not they are involved in international trade, to keep detailed records that would reveal whether a violation of the act has occurred.
passed the Foreign Corrupt Practices Act
A ________ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention.
patent
The General Agreement on Tariffs and Trade (GATT) was responsible for?
policing the global marketplace.
The term ________ stresses that the political, economic, and legal systems of a country are interdependent.
political economy
Interdependent political, economic, and legal systems of a country make up its
political economy.
The ________ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities.
power distance
Which of the following area of international trade is regulated by the Foreign Corrupt Practices Act?
preventing bribery and unethical acts in the conduct of international business
The abolition of ________ in a command economy means there is no incentive for individuals to look for better ways to serve consumer needs.
private ownership
In a pure market economy,
production is determined by the interaction of supply and demand.
What term is used to describe a state in which authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties?
pseudo-democracies
A theocratic law system is one in which the law is based on
religious teachings
Containerization allows? A) reduction of the time needed to get from one location to another. B) simplification of transshipment from one mode of transport to another. C) buyers and sellers to find each other easily in a global economy. D) enterprises to coordinate and control a globally dispersed production system
simplification of transshipment from one mode of transport to another.
Which of the following refers to the extent to which individuals can move out of the strata into which they are born?
social mobility
The term ________ refers to a group of people sharing a common set of values and norms.
society
An act as simple as shaking hands when meeting new people is an example of
symbolic behavior.
Which of the following was established to maintain order in the international monetary system?
the IMF
Which of the following was established to maintain order in the international monetary system? A) the WTO B) the GATT C) the World Bank D) the IMF
the IMF
Hofstede's results, as might be expected, showed that nations such as ________ scored low on long-term orientation.
the United States and Canada
Which of the following focuses on making low-interest loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments?
the World Bank
Hofstede's uncertainty avoidance dimension considered
the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty
The individualism versus collectivism dimension of Hofstede's study explored
the relationship between the individual and his or her fellows.
Systems that emphasize collectivism tend toward
totalitarianism.
To be classified as an MNE, a company must have productive activities in at least ________ countries.
two
Hofstede's ________ dimension measured the extent to which different cultures socialized their members into accepting and tolerating ambiguity.
uncertainty avoidance
Martin worried a lot about his job, which he chose specifically because it was very structured with clear rules and regulations. He carefully planned his career to maximize job security and retirement benefits. Martin would rate high on which of Hofstede's four dimensions?
uncertainty avoidance
What is true about the International Monetary Fund? A) It is primarily responsible for policing the world trading system. B) It is seen as the lender of last resort to nation-states whose economies are in turmoil. C) It is responsible for establishing multinational treaties to govern the global business system. D) It was established to formulate a coordinated policy response to financial crises in developing nations.
B) It is seen as the lender of last resort to nation-states whose economies are in turmoil.
The Uruguay Round provided A) reduced protection for patents, trademarks, and copyrights. B) enhanced protection for patents, trademarks, and copyrights. C) increased trade barriers. D) reduced coverage of services and manufactured goods.
B) enhanced protection for patents, trademarks, and copyrights.
Culture is A) static. B) not static. C) unchanging. D) abstract.
B) not static.
