Ch. 2 - More Questions

27. Identify a characteristic of social democracy. A. Achievement of goals through nonviolent revolution B. Transference of ownership of a business from individuals to a government C. Loyalty of an individual toward his or her nation D. Complete control over every facet of political and human life

A Achievement of goals through nonviolent revolution

54. According to the World Bank, which of the following economies does not rank high on the ease-of-doing-business index? A. The Philippines B. Singapore C. The United Kingdom D. The United States

A The Philippines

28. Which of the following statements is true of democracy? A. The government is controlled by the citizens either directly or through elections. B. Once elected, a representative can no longer be held accountable for his or her actions. C. Impartial public service restricts freedom of expression and assembly. D. Once elected, a representative cannot be reelected.

A The government is controlled by the citizens either directly or through elections.

43. Under the _____, all acts of other governments are considered to be valid by U.S. courts, even if such acts are inappropriate in the United States. A. act of state doctrine B. act of international civility C. act of judicial sovereignty D. act of international understanding

A act of state doctrine

25. Adopters of individualism adhere to the philosophy that: A. people should be free to pursue economic and political endeavors without constraint. B. government interest should solely influence individual behavior. C. communism in its extreme form is realized through violent revolution. D. the needs and goals of society at large are more important compared to individual desires.

A people should be free to pursue economic and political endeavors without constraint.

36. The _____ holds that governments have the right to rule themselves as they see fit. A. principle of sovereignty B. nationality principle C. territoriality principle D. protective principle

A principle of sovereignty

42. U.S. laws require equality in the workplace for all employees. U.S. citizens who take a job in Germany cannot sue their German employer under the provisions of U.S. law for failure to provide equal opportunity for them. This exemplifies the: A. principle of sovereignty. B. nationality principle. C. doctrine of comity. D. act of state doctrine.

A principle of sovereignty.

29. Political repression and denial of rights and civil liberties are dominant ideals of _____. A. totalitarianism B. a socialist democracy C. collectivism D. a monarchy

A totalitarianism

70. In the context of technological advancements, outsourcing, and offshoring, identify a way in which the new technological environment impacts multinational corporations and societies as a whole. A. A decline in the cost of doing business worldwide B. Price rise due to cost of equipment C. Elimination of higher-priced labor D. Replacement of employees by machines

A. A decline in the cost of doing business worldwide

58. The most popular form of e-business is for _____. A. B2B dealings B. B2C dealings C. financial dealings D. e-retailing

A. B2B dealings

48. In the context of bureaucratization, which of the following statements is true of Japan? A. Government controls are inefficient and need to be corrected to encourage multinational corporations to do business. B. Politicians are more interested in the long-term well-being of the nation as a whole than in the well-being of their own districts. C. Parochial actions are highly unlikely to create problems for multinational corporations trying to do business. D. The banking system is expansionary, and there is very little room for reformation.

A. Government controls are inefficient and need to be corrected to encourage multinational corporations to do business.

65. In the context of offshoring, which of the following factors has placed pressure on multinational corporations to outsource production? A. Mounting cost pressure B. Lack of cheap and expert labor C. Global and internal competition D. Profit expectation by governments

A. Mounting cost pressure

62. In the context of telecommunications, governments are accepting the belief that the only way to attract foreign investment and know-how in telecommunications is to: A. cede control to private industry. B. get cheaper service providers. C. get cheap and efficient labor. D. get private partners.

A. cede control to private industry.

49. Many foreign governments applauded the investigations under the Foreign Corrupt Practices Act (FCPA) because it helped them: A. crackdown on corruption in their own country. B. reduce internal political problems for U.S. allies. C. reduce the risks associated with the derivatives activities of banks. D. restrict the courts from fining and not imprisoning corrupt parties.

A. crackdown on corruption in their own country.

37. When compared with domestic law, international law is less coherent because: A. it contains unwritten understandings that arise from repeated interactions among nations. B. its sources embody only the laws of individual countries concerned with disputes. C. its sources embody only the treaties and conventions of individual countries concerned with any dispute. D. it is derived from the Marxist socialist system and is highly influenced by the regulations prevalent in former communist countries.

A. it contains unwritten understandings that arise from repeated interactions among nations.

67. In the context of technological advancements, emerging information technology has made work _____. A. more portable B. more risky C. more tedious D. more complicated

A. more portable

45. An act that makes it illegal to influence foreign officials through personal payment or political contributions is referred to as the _____. A. Fairness in International Affairs Act B. Foreign Corrupt Practices Act C. Global Ethics Act D. Fair Treatment of Foreign Citizens Act

B Foreign Corrupt Practices Act

32. In the context of the four foundations on which laws are based around the world, civil or code law: A. comes from the Marxist socialist system. B. is derived from Roman law. C. is the foundation of the legal system in the United States. D. continues to influence regulations in former communist countries.

B is derived from Roman law.

38. The _____ holds that every country has jurisdiction (authority or power) over its citizens no matter where they are located. A. doctrine of comity B. nationality principle C. territoriality principle D. sovereignty principle

B nationality principle

50. U.S. multinational corporations always assumed that bribes were required to ensure contracts in _____. A. India B. the Middle East C. Asia Pacific D. Eastern Europe

B the Middle East

61. Identify a correct statement about cellular infrastructure. A. It is expensive to install. B. It is quick and relatively inexpensive to install. C. It is relatively inexpensive to install but takes time. D. It cannot be installed easily and cost-efficiently in rural areas.

B. It is quick and relatively inexpensive to install.

68. In the context of technological advancements, outsourcing, and offshoring, multinational corporations have moved certain production activities overseas to capitalize on _____. A. increasing costs B. cheap labor resources C. larger markets D. higher purchasing power

B. cheap labor resources

59. The area of e-business that will most affect global customers is _____. A. e-marketing B. e-retailing and financial services C. retailing D. internet sales

B. e-retailing and financial services

52. In the context of bureaucratization, Japanese businesses are becoming aware of the fact that: A. they are heavily dependent on their local market for maximum number of goods and services. B. local consumers are paying a heavy price due to the bureaucratic red tape. C. government bureaucracy has created a true sense of security. D. they are well prepared to face the harsh competitive realities of the international marketplace.

B. local consumers are paying a heavy price due to the bureaucratic red tape.

64. In the context of offshoring, some informed observers note that technology already has eliminated much and in the future will eliminate even more of the work being done by: A. top level managers. B. middle managers and white-collar staff. C. maintenance workers. D. line employees and service staff.

B. middle managers and white-collar staff.

53. A firm in the country of Batangonia that sells secret government blueprints of the country of Cambrialand for a satellite system can be subjected to the Cambrialand laws. This scenario exemplifies _____. A. the nationality principle B. the protective principle C. socialist law D. Islamic law

B. the protective principle

75. What is biotechnology? Discuss some of the areas in which it has been used or is likely to be used.

Biotechnology is the integration of science and technology, but more specifically it is the creation of agricultural or medical products through industrial use and manipulation of living organisms. One area in which it has been used is medicine. While pharmaceutical companies mainly manufacture drugs through a process similar to that of organic chemistry, biotech companies attempt to discover genetic abnormalities or medicinal solutions through exploring organisms at the molecular level or formulating compounds from inorganic materials that mirror organic substances. Another aspect of biotech research is geared toward agriculture. Demand for ethanol in the United States is on the rise due to uncertain future oil supplies, making corn-derived ethanol a viable alternative. Using corn as a fuel alternative will not only increase the cost of fuel but also create an imbalance between consumable corn and stock used for biofuel. Aside from crops, the meat industry can also benefit from this process. The outbreak of mad cow disease in Great Britain sparked concern when evidence of the disease spread throughout Western Europe; however, the collaborative work of researchers in the United States and Japan may have engineered a solution to the problem by eliminating the gene which is the predecessor to making the animal susceptible to this ailment. Hunger and poor health care are worldwide issues and advancement in global biotechnology is working to raise the standards.

26. Which of the following is one of the biggest problems in Russia and in other transition economies? A. Social democracy B. Privatization C. Corruption D. Nationalization

C Corruption

35. Identify a true statement about civil law. A. It comes from English law and is found in nonsocialist countries. B. It is found in most Islamic countries in the Middle East and Central Asia. C. It is derived from Roman law and is found in the non-Islamic and nonsocialist countries. D. It is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and other nations.

C It is derived from Roman law and is found in the non-Islamic and nonsocialist countries.

31. Which of the following statements is true about totalitarianism? A. The government is controlled by the citizens either directly or through elections. B. Individual freedoms, such as freedom of expression and assembly, are secured. C. Power is often maintained by suppression of opposition, which can be violent. D. A representative party needs to strictly adhere to the goals of the majority ruling.

C Power is often maintained by suppression of opposition, which can be violent.

24. Philosophers such as David Hume, Adam Smith, and Aristotle contributed to the ideology of _____. A. socialism B. collectivism C. individualism D. communism

C individualism

44. In the context of the treatment and rights of aliens, countries have the legal right to refuse admission of foreign citizens and to impose special restrictions on all of the following except _____. A. conduct B. right of travel C. spending D. what business they may conduct

C spending

39. The _____ holds that every nation has the right of jurisdiction within its legal territory. A. sovereignty principle B. protective principle C. territoriality principle D. nationality principle

C territoriality principle

55. A firm based in the country of Iskoolbia that sells a defective hair dryer in the country of Octavia can be sued under Octavian law even though the company is headquartered outside Octavia. This scenario exemplifies _____. A. socialist law B. the nationality principle C. the territoriality principle D. Islamic law

C the territoriality principle

57. In the context of e-business, the term e-cash stands for _____. A. Easy cash B. Export cash C. Electronic cash D. Exchange cash

C. Electronic cash

56. In the context of the trends in technology, communication, and innovation, the creation of a digital framework: A. made business communication vastly more expensive. B. made the microprocessor obsolete. C. allowed high-power computer performance at low cost. D. required satellites for all forms of communication.

C. allowed high-power computer performance at low cost.

63. The Hong Kong office of Salomon Brothers, a U.S. investment bank, estimates that to meet the expanding demand for telecommunication service in Asia, companies will need _____. A. cheaper technology B. cheap and efficient labor C. considerable increase in investment D. cheaper service providers

C. considerable increase in investment

34. _____ comes from English law and is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and others. A. Civil or code law B. Islamic law C. socialist law D. Common law

D Common law

30. Aspects and degrees of the totalitarian form of government are still found in: A. Singapore and Cambodia. B. Germany and Italy. C. Latin America only. D. Vietnam, Cuba, and North Korea.

D Vietnam, Cuba, and North Korea.

46. Critics of the Foreign Corrupt Practices Act feared the loss of sales to foreign competitors, especially in those countries where: A. customs are rigidly followed. B. political stability exists. C. common law is applicable. D. bribery is an accepted way of doing business.

D bribery is an accepted way of doing business.

23. In a business context, individualism is synonymous with _____. A. collectivism B. socialism C. totalitarianism D. capitalism

D capitalism

41. The _____ holds that there must be mutual respect for the laws, institutions, and the government of other countries in the matter of jurisdiction over their own citizens. A. doctrine of protectionism B. doctrine of civility C. doctrine of mutual understanding D. doctrine of comity

D doctrine of comity

21. In the context of socialism, Karl Marx believed that: A. businesses should benefit at the expense of laborers. B. only a few individuals should benefit from businesses. C. societal classes should exist. D. governments should own businesses.

D governments should own businesses.

22. In the context of collectivism, the Greek philosopher Plato believed that: A. individual desires should be viewed as the most important. B. a classless society would help keep people focused on societal goals. C. individual rights should be secured. D. property should be commonly owned.

D property should be commonly owned.

40. The _____ holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country. A. territoriality principle B. nationality principle C. sovereignty principle D. protective principle

D protective principle

51. Keith, a manager in the country of Bodonia, violates a Bodonian law while traveling abroad. He can still be found guilty in Bodonia. This scenario exemplifies _____. A. socialist law B. Islamic law C. the principle of sovereignty D. the nationality principle

D the nationality principle

33. In the context of the four foundations on which laws are based around the world, Islamic law is derived from: A. the Marxist socialist system. B. Roman law. C. the ideologies of the Greek philosopher Prophet Farooq. D. the teachings of the Prophet Muhammad.

D the teachings of the Prophet Muhammad.

66. Which of the following industries would constitute the white-collar service industries? A. Steel and autos B. Agriculture C. Insurance only D. Insurance and banks

D. Insurance and banks

69. In the context of technological advancements, outsourcing, and offshoring, low-paid workers in India and Asian countries now are being given subcontracted work such as _____. A. insurance jobs B. auto industry jobs C. labor-intensive hardware development jobs D. code-writing jobs

D. code-writing jobs

60. The most important dimension of the technological environment facing international management today is _____. A. telecommunications B. transportation C. agricultural mechanization D. improved service technologies

D. improved service technologies

47. Since the passage of the Foreign Corrupt Practices Act (FCPA), investigations reveal that: A. U.S. exports to "bribe prone" countries decreased significantly. B. the act was unsuccessful in removing bribes as a key competitive tool from the Middle East. C. the act allowed the courts to fine but not imprison guilty parties. D. individual executives started getting increasingly targeted apart from corporations.

D. individual executives started getting increasingly targeted apart from corporations.

1. Individualism views the needs and goals of society at large as more important than individual desires.

False

10. A form of totalitarianism, sometimes referred to as "right-wing," allows for both economic and political freedoms.

False

11. Common law is derived from Roman law and is found in non-Islamic and nonsocialist countries such as France, some countries in Latin America, and even Louisiana in the United States.

False

12. The doctrine of civility holds that there must be mutual respect for the laws, institutions, and governments of other countries in the matter of jurisdiction over their own citizens.

False

19. In the context of the trends in technology, the open-source model restricts free and legal sharing of software and code to prevent underdeveloped countries from gaining competitive advantage while minimizing costs.

False

2. Fascism is an extreme form of socialism that was realized through violent revolution and was committed to the idea of a worldwide communist state.

False

20. Biotech companies mainly manufacture drugs through a process similar to that of organic chemistry and are unable to discover genetic abnormalities.

False

3. Communism is an authoritarian political ideology that considers individual and other societal interests inferior to the needs of the state.

False

4. Nationalization is an ideal in and of itself whereby an individual is completely loyal to his or her nation.

False

8. Collectivism emerged in Poland and France as "national socialism."

False

73. Discuss the three types of jurisdictional principles provided by International Law.

International law provides for three types of jurisdictional principles. The first is the nationality principle, which holds that every country has jurisdiction (authority or power) over its citizens no matter where they are located. Therefore, a U.S. manager who violates the American Foreign Corrupt Practices Act while traveling abroad can be found guilty in the United States. The second is the territoriality principle, which holds that every nation has the right of jurisdiction within its legal territory. Therefore, a German firm that sells a defective product in England can be sued under English law even though the company is headquartered outside England. The third is the protective principle, which holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country. Therefore, a French firm that sells secret U.S. government blueprints for a satellite system can be subjected to U.S. laws.

74. Describe the Foreign Corrupt Practices Act and list its objectives.

The Foreign Corrupt Practices Act (FCPA) makes it illegal to influence foreign officials through personal payment or political contributions. The objectives of the FCPA were to stop U.S. multinational corporations from initiating or perpetuating corruption in foreign governments and to upgrade the image of both the United States and its businesses abroad.

72. List the four foundations on which laws are based around the world, and briefly explain each foundation.

The four foundations upon which laws are based around the world are as follows: Islamic law, socialist law, common law and civil or code law. Islamic law is derived from interpretation of the Qur'an and the teachings of the Prophet Mohammed. It is found in most Islamic countries in the Middle East and Central Asia. Socialist law comes from the Marxist socialist system and continues to influence regulations in former communist countries, especially those from the former Soviet Union, as well as present-day China, Vietnam, North Korea, and Cuba. Common law comes from English law and is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and other nations. Civil or code law is derived from Roman law and is found in the non-Islamic and nonsocialist countries such as France, some countries in Latin America and even Louisiana in the United States.

71. Explain the political system of totalitarianism, and identify its features and forms.

Totalitarianism refers to a political system in which there is only one representative party which exhibits control over every facet of political and human life. Power is often maintained by suppression of opposition, which can be violent in nature. Media censorship, political repression and denial of rights and civil liberties are dominant ideals. Since only one party within each entity exists, there are many forms of totalitarian government. All forms of totalitarianism exhibit some form of oppression as well. Parties or individuals that govern an entity based on religious principles will ultimately oppress religious and political expression of its citizens. One final consideration of a totalitarian system is that in which some freedoms may exist. This form has been referred to as right-wing totalitarianism, where some economic freedoms may exist, but there is still a limitation on political freedom. This structure allows for economic freedom because otherwise it is believed that complete oppression will give rise to communism. While it directly opposes socialist and communist ideas, this form of ruling may gain power and support from the military, often in the form of a military leader imposing a government "for the good of the people." This results in military officers filling most government positions.

13. The nationality principle is a jurisdictional principle of international law that holds that every country has jurisdiction over its citizens no matter where they are located.

True

14. The doctrine of comity holds that there must be mutual respect for the laws, institutions, and governments of other countries in the matter of jurisdiction over their own citizens.

True

15. The Foreign Corrupt Practices Act (FCPA) is an act that makes it illegal to influence foreign officials through personal payment or political contributions.

True

16. The protective principle is a jurisdictional principle that holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country.

True

17. The territoriality principle is a jurisdictional principle that holds that holds that every nation has the right of jurisdiction within its legal territory.

True

18. A vast network of fiber-optic cables that are used for almost all transoceanic communication lead to a great deal of system vulnerability.

True

5. Essentially, every citizen should be involved in decision-making processes in a democratic system.

True

6. The most common form of totalitarian government is communist totalitarianism.

True

7. Both domestic and international political environments have a major impact on multinational corporations.

True

9. Socialism is a broad political movement, and in modern times, it branched off into two extremes: communism and social democracy.

True