CH. 4,5,6, Smartbook

What aspect of free trade does Samuelson see as a potential negative influence on international trade?

Offshoring of service jobs such as call centers

Which language is most prominent in terms of international business?

English

In a ______ culture, sex roles are sharply differentiated.

masculine

Free trade can result in dynamic gains that ______ economic growth.

stimulate

True or False: According to Adam Smith, a country should produce all goods at home that it can, even if it could buy those goods at a lower cost from other countries.

False

True or False: The Organization for Economic Cooperation and Development adopted conventions in 1999 that obligated member states to reject the use of facilitating payments.

False

How has social media affected group life?

It has emphasized the idea of an extended social group.

Which example demonstrates mores?

It is against the law in the United States to commit theft.

How does the product-life cycle theory relate to the modern world?

Its relevance in the modern world seems limited as more and more products are introduced outside of the United States.

What theories concentrate on the fair distribution of economic goods and services in a society?

Justice

______ ethics hold that people are conscious moral beings that have dignity and should be treated with respect.

Kantian

True or false: The benefits from free trade are not evenly distributed throughout an economy.

True - Unions or other parts of the labor force might suffer from free trade while consumers might benefit.

Which scenario depicts the Leontief paradox?

U.S. exports were less capital intensive than U.S. imports.

True or false: Education provides a competitive economic advantage through the creation of a pool of skilled and educated workers.

True

______ is the Hofstede dimension that measures a society's tolerance for ambiguity and uncertainty.

Uncertainty avoidance

According to the tenets of Islam, the objective of life is to fulfill the dictates of God in hopes of achieving

admission to paradise

A moral _____ is any person or institution that is capable of moral action.

agent

Some ethics experts have proposed practical guides or ethical ______ to make ethical decisions in a systematic way.

algorithms

Porter states that a company can gain ______ advantage if their home customers are demanding and knowledgeable.

competitive

Ricardo's theory of comparative advantage assumes ______ returns to scale.

constant

According to new trade theory, first movers in an industry can gain a scale-based _____ advantage that later entrants find almost impossible to match.

cost

Maria's boss asked her to do whatever it takes to secure a contract. Maria knows that paying a bribe would ensure that the contract would be signed, but walks away because she knows that while paying the bribe would ensure large profits, doing so would be unethical. Maria is demonstrating moral ______.

courage

According to new trade theory, the first mover's ability to benefit from increasing returns ______ for other firms.

creates a barrier to entry

Understanding how cultural differences across and within nations affect the way business is practiced is known as ______ literacy.

cross-cultural

The human resource manager reminded the employees that when working with colleagues in the Middle East, it was imperative to remember that giving a deadline on a project is perceived as demanding. The manager is showing the importance of ______ in international business.

cross-cultural literacy

The belief that ethics are culturally determined and a firm should adopt the ethics of the country it is doing business in is

cultural relativism.

A company's organizational _____ reflects the values and norms that are shared among employees of an organization.

culture

According to Hofstede, if the ties between people are loose, it is most likely a sign of a(n) ______ society.

individualistic

Western society values _______ over ______.

individuals; groups

Under Hofstede's proposed sixth dimension, _____ refers to a society that promotes enjoying life and having fun.

indulgence

One explanation for the Leontief paradox is that the United States has an advantage and exports goods produced with

innovative technologies

Employees, directors, and stockholders are examples of ______ (internal or external?) stakeholders.

internal

Individuals or groups who work for or own the business are referred to as ______ stakeholders.

internal

A(n) __________ distribution is one that is considered fair and equitable.

just

The fair and equitable dissemination of economic goods and services is the focus of a(n) _____ distribution.

just

One important drawback to the utilitarian philosophy to business ethics is that it does not consider _____.

justice

The __________ theories concentrate on the attainment of a fair and equitable distribution of economic goods and services.

justice or just

When applying reasoning for why Japan exports automobiles or why Switzerland exports watches, David Ricardo's theory of comparative advantage bases the explanation in terms of differences in

labor productivity.

The tragedy of the commons phenomenon was named when Garrett Hardin noticed

large open areas were free for all to use as pasture.

The Hewlett-Packard example discussed in this chapter suggests that one cause of unethical behavior in a company can stem from _____.

leadership

In Japan, most people perceive themselves to be middle class; therefore, class background has _____ impact on business operations. (Choose between less or more.)

less

A company decides to outsource all product designs to Singapore because it has been found to have the most efficient design companies. In this situation, the ______ implication for international business is being considered.

location

The factor that impacts all the theories of trade because companies should produce where it is most efficient is

location

To achieve the highest efficiencies, a U.S. company decides to manufacture its products in Thailand, but does all final assembly of the products in China. The company is focusing on the ______ implication for international business.

location

Wealthy country A enters into a free trade agreement with poor country B. Country B improves its productivity. Country A pays lower prices for goods imported from poor country B. However, Samuelson expresses concern that these lower prices may not offset possible ______ in wealthy country A.

lower real wage rates

Confucianism values harmonious relationships, which are based on moral and ethical conduct and ______.

loyalty to others

In an organization operating in a Confucian culture, it would be the sacred duty of an employee to be loyal to his or her

manager

When a government intervenes to achieve a surplus in the nation's balance of trade, this action is consistent with the main tenet of ______.

mercantilism

Free trade _____ the efficient use of resources within a country.

might increase

In the majority of nations, it is the responsibility of the government to provide benefits and services that secure the rights of the citizens. In this respect, the government is acting as a(n) _____.

moral agent

According to Hofstede's theory, cultures high in masculinity and power distance are _____ (more or less?) likely to engage in unethical behavior.

more

Norms that are more widely observed within a society and have greater moral significance than folkways are called _____.

mores

Social norms that address the customs and conventions of a society and are central to the functioning of the society are called _____.

mores

Celeste, a manager at a multinational investment firm located in Italy, knows that the company isn't reporting accurate profits to the government. She explains that this action is fine because all the multinational investment firms behave in the same manner. Celeste can be described as a(n) ______.

naive immoralist

The ______ believes that if a multinational firm sees that other firms are not following ethical norms, then they don't have to either

naive immoralist

The ______ believes that if a multinational firm sees that other firms are not following ethical norms, then they don't have to either.

naive immoralist

In post-independence India, some think that the values of Hindu asceticism and self-reliance have had a(n) ______ impact on economic development.

negative

Because of economies of scale, some countries specialize in manufacturing a particular product (such as cars) for which the global market can only support a limited number of firms. This is a reflection of _____.

new trade theory

Unspoken language is another way to describe ______ communication.

nonverbal

Even though Parul disagreed with her co-worker, she waited until he was done speaking before she responded because she knew it wasn't polite to interrupt someone while they were talking. The social rule Parul followed is an example of a(n) _____.

norm

Trevor told his foreign-born roommate that it was socially acceptable in the United States to question a professor if you believed he or she was saying something that was not true. This example of a social rule that governs behavior demonstrates the idea of a

norm

The social rules and guidelines used to determine appropriate behavior in a particular setting are known as ______.

norms

Rights that are taken for granted in developed nations, such as freedom of association and freedom of speech are

not universally accepted.

Samuelson is concerned that advances in communications technology will result in the

offshoring of service jobs.

Sachs and Warner found a strong correlation between a(n) ______ response to trade and economic growth.

open

When making ethical decisions, ______ factors are stressed in Japan, while ______ factors are more important in the United States.

organizational; individual or personal

A concept included in Kantian ethics that is not found in the utilitarian approach is the need to respect Multiple choice question.

people's dignity

The generally accepted principles and values that govern interactions between individuals are called

personal ethics.

In the ______ dimension identified by Hofstede, the degree of power and wealth is not balanced within a country.

power distance

The ethnocentric view that most new products are developed and introduced in the United States is a key weakness in the ______ theory.

product life-cycle

True or false: First-mover advantages are especially important in industries where the global market can profitably support only a limited number of firms.

True

True or false: Historically, the British class system prevented people from moving up in society.

True

True or false: New trade theory is very useful in explaining trade patterns.

True

True or false: Successful industries within a country tend to group into clusters of related industries.

True

True or false: The decision-making process is one of the determinants of ethical behavior.

True

Which of these common phrases can be used to describe the straw men approach known as cultural relativism?

"When in Rome, do as the Romans do."

Which two simultaneous outcomes are implied by new trade theory?

- A nation can increase the variety of goods available to consumers. - A nation can lower the cost of the goods being offered to consumers.

Buddhism has all the same basic beliefs as Hinduism EXCEPT it does not advocate for which two factors?

- Advocacy in extreme ascetic behavior - Support for the caste system

Which of the following factors do Porter label as basic factors of production?

- Climate - Natural resources - location - demographics

Which three situations are considered positive aspects of the collectivist attitude found in the Japanese business culture?

- Cooperation within the group is driven by the need to improve group performance. - There is strong incentive for individuals to work together for the common good. - Workers tend to remain at the same company for a long time—even a lifetime.

What are two reasons diminishing returns to specialization occur?

- Different goods use resources in different proportions. - Not all resources are of the same quality.

What are two drawbacks associated with the utilitarian philosophy on business ethics?

- Does not take justice into account - Difficult to measure the benefits, costs, and risks of a course of action

According to Rawls' view of justice, when people operate under a veil of ignorance, they would unanimously agree on two fundamental principles of justice. What are these two principles?

- Each person is permitted the maximum amount of basic liberties compatible with a similar liberty for others. - Once basic liberty is ensured, inequality in basic social goods is to be allowed only if such inequalities benefit everyone

Choose the four national attributes that Porter theorizes shape the environment that local firms compete in.

- Factor endowments - Demand conditions - Firm strategy, structure, and rivalry - Related and supporting industries

Which two of Hofstede's dimensions are present in countries where ethical practices are commonly practiced?

- High in uncertainty avoidance - High in individualism

What are two criticisms of Hostede's work?

- Hofstede's research was culturally bound. - Hostede assumed a one-to-one correspondence between culture and nation.

According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making?

- Implement decision-making processes that consider ethical aspects of business decisions. - Favor hiring and promoting of people with a sense of personal ethics. - Build an organizational culture that values ethical behavior.

What are the four dimensions originally identified by Hofstede?

- Individualism versus collectivism - Masculinity versus femininity - Uncertainty avoidance - Power distance

A new trade theorist would say that a company should rely on which three things to gain first-mover advantages?

- Innovation - Entrepreneurship - Luck

What are three principles of social stratification?

- It carries over to the next generation. - It involves beliefs as well as inequality. - It is generally universal.

What are three tenets associated with Confucianism?

- Loyalty to others - High moral conduct - High ethical conduct

What are two ways a person can change their social status within a class system?

- Personal achievement - Luck

Which two theories provide the moral compass that is important when thinking through the ethical implications of decisions in a systematic way?

- Rawl's theory of justice - Rights theories

What are the three values central to the Confucian system of ethics that may have led to economic success in some Asian countries?

- Reciprocal obligations - Honesty in dealing with others - Loyalty

Choose three advanced factors that Porter believes are MOST significant for competitive advantage.

- Skilled labor - Technological know-how - Research facilities

What are three benefits of learning the native language of a company you are doing business with?

- You can build rapport more easily. - Businesses may prevent major blunders through improper translation. - People like to speak in their own language.

There is a connection between culture and competitive advantage. What are two reasons why this connection is important?

- The connection suggests which countries might produce the most viable competitors. - This connection can affect the choice of countries to do business in and locate production facilities in.

What three predictions of new trade theory regarding trade patterns are supported by studies?

- Trade leads to lower average costs. - Trade increases the specialization of production within an industry. - Trade increases the variety of products available.

A basic message of Ricardo's theory of comparative advantage is that:

- even if countries lack an absolute advantage in the production of any good, consumers can still consume more if there are no restrictions on trade. - potential world production is greater with unrestricted free trade than it is with restricted trade.

To shift a country's production possibility frontier outward, it is necessary to

- increase the efficiency with which resources are used. - increase the stock of the country's resources.

What are three sources of economies of scale?

- the ability of large-volume producers to use more effective, specialized employees - the ability of large-volume producers to use more specialized equipment - spreading fixed costs over a larger volume

What is one negative aspect to companies of emphasizing individual performance in business?

A high degree of managerial mobility between companies

What is an example of a sustainable strategy?

A strategy designed to reduce CO2 emissions

What is the final step companies should take when assessing ethical issues?

Audit the company's decisions

What are the types of factors of production identified by Porter?

Basic and advanced

According to Adam Smith's theory of absolute advantage, who benefits from engaging in trade?

Both countries engaging in a trade process

The first thing Brett's manager told him when he started working was that the company always considered the social consequences of any business decision. This is a reflection of _____.

CSR

What ethical system was the official ethical system of China until the communist revolution and emphasizes taking the right actions to attain salvation?

Confucianism

Which form of returns to specialization means that the units of resources required to produce one unit are assumed to remain the same no matter where a country is on the production possibilities frontier?

Constant

Gemini Corp. is a multinational company. Which argument should the company use to justify conducting business in a repressive country?

Continuing inward investment helps boost economic growth and living standards in the country.

______ is important because managers need to have a deep understanding of the prevailing culture in those areas in which they do business

Cross-cultural literacy

What did Porter call the concept where firms are typically most sensitive to the needs of their closest customers?

Demand conditions

Which type of returns to specialization happen when additional units of resources are required to produce each additional unit?

Diminishing

What concept negates the idea that a country can specialize to the degree suggested by the Ricardian model?

Diminishing returns

Which statement regarding openness of an economy and growth is TRUE?

Economies that are open to trade grow at a faster rate economically than those that are closed.

Celia, a product manager, advocated for the company to proceed with the development of the product even though it hadn't received FDA approval yet because she wanted to be the first to market with the product when it was approved. Jessica, the director of product development, felt this wasn't a good idea because early studies had shown that the product might be causing neurological problems in users and might need to be reformulated. Which step in the process to assess an ethical issue does this represent?

Establishing moral intent

Bennie is managing a call center in Italy. He is finding it difficult to motivate employees to meet their call volume using the standard tactics employed in the United States. Bennie is told by another manager that if he starts offering "daily bonuses" to employees, they will meet their targets. He is torn between doing what is right and meeting his numbers. Which type of challenge is Bennie facing?

Ethical

______ are situations where none of the available alternatives seems morally acceptable

Ethical dilemmas

Which aspect of international business convinced Leon Sullivan to lead the way in eliminating apartheid in South Africa?

Ethics

What management position serves as the organization's internal control point for improprieties?

Ethics Officer

______ is judging another's culture solely by the values and standards of one's own culture.

Ethnocentrism

Which statement accurately describes how personal ethics might be challenged in international transactions?

Expatriate managers may face more pressure to violate their personal ethics.

Heckscher and Ohlin identified differences in national factor endowments as the root of ______.

comparative advantage

True or False: The Organization for Economic Cooperation and Development adopted conventions in 1999 that obligated member states to reject the use of facilitating payments. True false question.

False

True or false: Porter's theory of national competitive advantage stresses a decreased commitment by companies to research and development.

False

True or false: Pursuing strategies that are sustainable has little impact on helping an organization ensure that ethical issues are considered in business decisions. True false question.

False

True or false: Sustainable strategies adopted by a company typically only benefit upper management.

False

True or false: One positive aspect of high managerial mobility is that executives have a sense of loyalty and commitment to an individual company.

False - Companies that experience high managerial mobility do not have executives who are loyal. Instead, they move from company to company.

Which congressional act outlaws the payment of bribes to foreign government officials to gain businesses?

Foreign Corrupt Practices Act

______ is reflected in a nation in which the government does not attempt to influence what its citizens can buy from another country by applying import duties or what citizens can produce and sell to another country.

Free trade

The straw men theory that states that businesses should behave in a socially responsible manner, according to ethical custom and without deception and fraud is the _______.

Friedman Doctrine

What is the likely result for the gains from specialization according to the concept of diminishing returns?

Gains are likely to be exhausted before specialization is complete.

New trade theory, which states that countries may have an advantage in exporting because of first-mover advantages, is different from which theory that says countries have export advantages because of factor endowments?

Heckscher-Ohlin

What is the theory that states that countries will export goods that make intensive use of the factors that are abundant in the economy?

Heckscher-Ohlin

What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pattern of international trade?

Heckscher-Ohlin

According to the Friedman Doctrine, what is the only social responsibility a company has as long as it stays within the rules of law?

Increasing profits

Jason lives in a country where personal gratification is suppressed and there are strict social norms in place to limit individual freedom. Hofstede would label this society by which dimension?

Indulgence versus restraint

What is Islam's response to the payment or receipt of interest?

Interest is considered illegal

What assumption does the Ricardian model of comparative advantage make in terms of converting resources?

It assumes that all resources can easily shift from one thing to another

As the guiding principle of Islam, the _____ actually promotes free enterprise and supports earning legitimate profits through commercial efforts.

Koran

Kate's grandmother was born in Belgium and she says she is Flemish. Anne's grandmother was also born in Belgium and she says she is French. In some areas of Belgium, all signs are in French and are not possible to read unless you know the French language. The same is true for other areas with all signs in Flemish. What is creating the divide between these two cultures?

Language

What is used to direct the attention of a society to specific components of the world and structures how people perceive them?

Language

Which profession would have been included in the upper-middle class in traditional British society?

Lawyer

According to the Heckscher-Ohlin theory, it is expected that the United States would export capital-intensive goods and import labor-intensive goods, but the opposite was found to be true. This became known as the

Leontief paradox.

As the result of criticism of his original work, Hofstede went on to expand his model with the addition of which dimension?

Long-term versus short-term orientation

Which of Hofstede's dimensions focuses on delaying gratification of material needs?

Long-term versus short-term orientation

Which of these business situations exemplifies the convergence hypothesis?

McDonald's, Burger King, and other fast food restaurants are found in many nations.

Which theory does NOT support unrestricted free trade between countries?

Mercantilism

______ is the first theory of trade that advocated that a country should export more than it imports and should accumulate gold and silver to make up the difference and maintain a trade surplus.

Mercantilism

What helps managers walk away from a decision that is profitable, but not ethical?

Moral courage

______ join the political entity of a state to the cultural entity of a nation.

Nation-states

Which of these companies is demonstrating a first-mover advantage?

Nelson Concrete recently opened a production plant in the Middle East after learning there were no competitive firms in that area.

Which theory states that for products where economies of scale are significant and that control a substantial amount of world demand, the first movers in an industry can gain a scale-based cost advantage NOT available to late entrants?

New trade

Which trade theory has these implications: (1) nations may benefit from trade even when they do not differ in resource endowments or technology; and (2) specialization allows for scale economies and lower production costs?

New trade

______ theory states that, because of economies of scale, trade can increase the variety of goods available and decrease the average cost of these goods.

New trade

Which theory implies that the global market may only be able to support a limited number of firms in industries when the output required to attain economies of scale represents a significant amount of total world demand?

New trade theory

______ refers to the moral obligation to act in an honorable and benevolent manner.

Noblesse oblige

Which theory was based on the observation that early in the development of a commodity, all the parts and labor come from the area in which it was invented?

Product life-cycle

How do facilitating payments benefit a company?

Smooths the progress of services to which the business is entitled

______ is considered the religion that emphasizes individual economic and political freedoms which formed the basis on which entrepreneurial free market capitalism is based.

Protestantism

Which aspect of Porter's Diamond is best evidenced by the U.S. semiconductor industry providing the basis for U.S. success in the production of personal computers?

Related and supporting industries

As demonstrated by the Nike example in the text, which situation is generally MOST preferred when considering employment practices in international business?

Requiring good conditions in home and foreign operations even when this results in a smaller profit margin

The two major Christian organizations are _____.

Roman Catholic Church and Orthodox Church

What are three of the determinants of culture?

Social structure Political philosophy Economic philosophy

Which approach to business ethics includes cultural relativism, the righteous moralist, and the naive immoralist?

Straw Men

General Motors adopted the ______ principles in order to continue business operations in South Africa during the apartheid movement.

Sullivan

The Leontief paradox would be used to explain which of these situations?

The United States exports goods that require skilled labor and imports heavy manufacturing products that require large amounts of capital.

Which description of leader behavior is most likely to promote a strong ethical culture in an organization?

The boss who consistently demonstrates strong personal ethics in all dealings with clients.

Garrett Hardin described how herders shared common land for grazing. It was advantageous to the poor to place more and more livestock on the commons because it would mean more income. Why did these actions result in ultimate tragedy?

The commons were overgrazed and eventually destroyed by the livestock.

True or false: A sociologist would disagree with the idea that the British class system has dissolved.

True

True or false: According to cultural relativism, all ethics are culturally determined

True

True or false: Business people may behave unethically simply because they forget to ask whether the decision or action they are making is ethical.

True

In an organization where personal ethics are important, which individual should be considered for a job opening?

The individual who has a disappointing interview but has glowing letters of recommendation that attest to his integrity.

True or false: Companies can use psychological tests in the hiring process to help identify people who have a strong sense of personal ethics.

True

True or false: Economic advancement and globalization may be important factors in societal change.

True

As modernization occurs, which of the following situation is contrary to the Buddha's teaching?

There is more separation between people and nature.

What is an accurate description of developed nations with regard to the environment?

They have more substantive environmental regulations.

The United Nations ______ is a global expression of what many believe are the rights to which all human beings are inherently entitled. Multiple choice question.

Universal Declaration of Human Rights

______ ethics measure actions on a cost-benefit scale.

Utilitarian

Which ethical theory emphasizes that the best actions are those that benefit the most number of people and harm the least number of people?

Utilitarianism

Which company is contributing to the global tragedy of the commons?

Virtual-Day Inc. moved production to a South American country with lower environmental regulations and sends pollutants freely into the air.

According to the OECD convention of 1999, the bribery of a foreign official is considered

a criminal offense.

Carla questioned the ethics of her company in hiring an Indonesian firm to manufacture its clothing products. She knew that women who worked in these sewing factories were forced to work long hours in substandard conditions and she knew she wouldn't like to work that way. Carla is demonstrating the use of ______.

a moral imagination

A person who follows the idea of _____ says that the multinational's home-country standards of ethics are the appropriate approach to follow in foreign countries.

a righteous moralist

The theory of ______ advantage was the first to attack the tenet of mercantilism, which implied that trade is a zero-sum game. Multiple choice question.

absolute

When a country is more efficient at producing a product than any other country, the country has a(n) ______ advantage in the production of that product. Multiple choice question.

absolute

It is wrong to cheat on a test. Conversely, it is right to

accept responsibility for your actions.

In a business setting, noblesse oblige refers to _____ behavior considered to be the responsibility of successful enterprises.

benevolent

One justification given for investment in China, which has a questionable human rights record, is that investment will Multiple choice question.

boost economic growth and raise the standard of living

In Japanese society today, it is common for a person's social status to be associated with his or her

business

A company _____ benefit from related industries that are internationally competitive and can spill over into the company.

can

Companies participating in international trade _____ exert strong influences on government trading policies.

can

Max Weber attributed the relationship between the emergence of ______ and Protestantism to the value system of the religion.

capitalism

The most rigid form of social stratification is the _____ system.

caste

In the past, there has been a mutual lack of respect between upper management and working-class employees at British companies. This lack of respect was the result of the perception that those in upper management were a "step above" the employees. This perception was a reflection of _____.

class consciousness

Porter's study identified components of the German textile and apparel sector: cotton, wool, synthetic fibers, sewing machine needles, and textile machinery. These were all successful industries in a single country that grouped into related industries. This grouping is an example of a(n)

cluster.

Many companies develop a formal statement of primary values and ethical standards for employees and managers to follow. This is called a

code of ethics

Economic studies have suggested that according to the theory of ______ advantage, countries will experience higher growth rates if they follow a more open stance toward international growth.

comparative

Ricardo's theory of _____ advantage states that it makes sense for a country to specialize in the production of those goods that it produces most efficiently and then purchase the goods that it produces less efficiently from other countries, even if this means buying goods from other countries that it could produce more efficiently itself.

comparative

When a company with branches in Japan and the United States changes its performance appraisal system to reflect the fact that American managers are more individualistic as compared to their more group-oriented Japanese counterparts, the company is recognizing the need to vary company processes and practices based on how ______ affects work-related values.

culture

Hindus believe in ______, the behaviors and responsibilities governing individual conduct.

dharma

Under Rawls' ______ principle, the long-run expectations of the least-advantaged social group need to be maximized.

difference

According to the Samuelson critique, middle class wages in the United States will be _____ as the result of the offshoring of service jobs and rapid advances in foreign labor productivity.

diminished

Country A wants to produce more rice. Unfortunately, it will have to farm less productive land to produce this rice. This fact represents the idea of ______ returns to specialization.

diminishing

It takes 12 units of resources to produce 100 pounds of silk. It takes 13 units to produce 115 pounds of silk and 15 units to produce 120 pounds of silk. This is an example of ______ returns to specialization.

diminishing

According to Michael Porter, there is a strong correlation between _____ and the creation and persistence of competitive advantage in an industry.

domestic rivalry

Porter argues that achieving international success in a certain industry is a function of factor endowments, domestic demand conditions, related and supported industries, and ______.

domestic rivalry

Culture can best be described as a ______ phenomenon.

dynamic

The U.S. economy is considered _____ because it is impacted by the philosophy of individualism.

dynamic

Sanjay told his staff that the company didn't care if the components came from a company using sweatshop labor, the parts were needed to meet the order and the company needed the order to make the sales quota. In this situation, the company makes this decision based on purely _____ terms.

economic

Based on new trade theory, as the size of markets increases, companies may be able to attain better ______.

economies of scale

The reductions in the cost of a single unit that result from large scale output of that product are called

economies of scale.

One way a company can become more informed about the practices of an international affiliate is to

employ local citizens to help them do business in a particular culture

The fact that the caste system has NOT held back the _____ in India demonstrates how culture should not be overemphasized when discussing the economic sphere.

entrepreneurial activity

A focus on individual religious freedom, not surprisingly, may have set the stage for

entrepreneurship.

Ethical issues arise in international business when

environmental regulations in host nations are less stringent than those in the home country.

Marietta is visiting her company's manufacturing subcontractor in Pakistan. She notices children working on the machinery with no air conditioning and little access to water. But she also knows these children are probably supporting their families. Marietta can't decide if children working in the factory is appropriate or inappropriate. This is an example of a(n) ______.

ethical dilemma

The Plume and Fabric manufacturing company abides by a strict code of providing the best in equipment, lighting, and overall working conditions for its 350 employees who create costumes for Broadway shows. While the company could save money by hiring less-skilled or underage labor to do the job, it knows that decision is not acceptable. This scenario demonstrates how a(n) _____ plays a role in the company's decisions. Multiple choice question.

ethical strategy

The accepted principles of right and wrong that guide a person's decisions are called _____.

ethics

The set of moral principles that are used to guide and shape behavior are called _____.

ethics

Lucia is responsible for establishing a confidential service that employees can use to question if a practice is unethical and she also makes sure the company complies with government laws and regulations. Lucia is an example of a(n) _____.

ethics officer

Based on the theories of Smith, Ricardo, and Heckscher-Ohlin, in a country with access to cheap labor, productive land, and diverse plant life, it makes sense to _____ agricultural goods.

export

Portugal can produce wine and cloth with less labor than England. But, given all factors of production, England can produce cloth relatively better than Portugal. According to Ricardo's theory of comparative advantage, it make sense for England to

export cloth and import wine from Portugal.

Customers, suppliers, and unions are all examples of ______ (internal or external?) stakeholders.

external

An amendment to the Foreign Corrupt Practices Act allowed for the use of ______ in which a business is ensured that it will receive the standard treatment it ought to receive from a foreign government.

facilitating payments

The Foreign Corrupt Practices Act was amended to include _____ because some U.S. businesses complained the act would put U.S. firms at a competitive disadvantage.

facilitating payments

The resources that a country is endowed with such as land, labor, and capital are referred to as _____.

factor endowments

The Heckscher-Ohlin theory of international trade focuses on ______ when explaining what a country chooses to export.

factors of production

In Porter's model of the determinants of national competitive advantage, he noted many U.S. firms were led by people with ______ backgrounds, likely leading to U.S. firms' lack of attention to improving manufacturing process and product design.

finance

Fill in the blank question. According to new trade theory, the dominance of the United States in the commercial jet aircraft industry is related to ______ - mover advantages

first

Jameson Machinery Inc. wants to release their newest equipment in the South American market before other companies in order to establish the Jameson brand. In other words, the company wants to benefit from ____.

first-mover advantages

Preempting demand, gaining volume cost advantages, building the brand, and establishing a long-term competitive advantage are associated with

first-mover advantages.

In the United States, the majority of people are very aware of what time it is, what they need to accomplish in that time, and when they are out of time. This attitude toward time is an example of a _____.

folkway

Monica asked her manager if appropriate dress for the meeting was business casual or traditional business. Monica is inquiring about the ______ associated with the meeting.

folkway

The rituals associated with a culture, such as bowing to show respect in Japan, are forms of _____.

folkways

The routine conventions of living, thinking, and acting in a group are called ______.

folkways

Porter developed ______ broad attributes of a nation that shape the environment in which local firms compete.

four

Manatee Mfg. is able to source parts for its refrigeration products from anywhere in the world because the United States does not place any quotas or limitations on the imports they need. This is a reflection of a _____ policy.

free trade

Ricardo's theory encourages ______ because it suggests that trade is a positive-sum game where all participating countries realize economic gains.

free trade

Generon Inc. has moved its production to a new nation. It freely dumps its harmful waste in the rivers and causes environmental degradation there. In this case, Generon has contributed to the

global tragedy of the commons.

Porter states that ______ can influence each of the four components of the diamond through subsidies, education policies, and policies toward capital markets.

government

Porter's theory stresses the advantages of businesses working with ______ to promote strong competition within domestic markets.

government

The most contentious implication behind new trade theory is the argument that it generates for ______ intervention.

government

The Winston Sporting Goods Company is lobbying members of Congress to encourage them to open a trading agreement with South America. The company believes it can triple its sales by accessing this market which will benefit the United States in export tariffs. This demonstrates how _____ affects/affect trade

government policy

The _____ degree of social mobility in the United States limits the impact of class background on business operations.

high

According to Vernon's product life-cycle theory, while demand for a product is starting to grow rapidly in the United States, demand for the product in other countries is limited to _____.

high-income groups

Fill in the blank question. An organization's code of ethics may be partially based on documents such as the United Nations Universal Declaration of __________ .

human rights

Moral ______ allows a business to think about how a decision might impact the stakeholder.

imagination

In a Confucian society, expensive lawyers would not be needed to resolve contract disputes because

importance is attached to honesty

New trade theory states that some countries specialize in the production and export of a particular product because _____. Multiple choice question.

in certain industries the world can only support a limited number of firms

In the United States, class membership is determined to a greater degree by _____.

individual economic achievement

Guanxiwang refers to _____, which hold networks together.

relationships

The set of shared beliefs followed by Catholics and those of the Jewish faith represent their individual _____.

religions

When discussing constant returns to specialization, it is realistic to assume that the units of resources required to produce one unit will _____ no matter where a country is on the production possibilities frontier.

remain the same

James is an expatriate from Nebraska managing a tech support center in India. He is a firm believer in the minimum wage and treating employees fairly. Yet he sees his assistant manager firing an employee and hiring his neighbor to do the job at a lower rate. Knowing this would never be accepted in the United States, James confronts his assistant manager, claiming this behavior isn't right. He is displaying the ______ approach to ethics.

righteous moralist

Certain theories accept that there are rights, both positive and negative, that all humans have simply because they are human. These are called ______ theories.

rights

A mudarabah contract allows an Islamic bank to _____ in exchange for a loan

share in company profits

The primary problem with mercantilism is that its supporters claimed that trade should

show a gain by one country that results in a loss by another

Nigel was born into a poor, working-class family in England. He is resigned to the fact that his life will be much like his fathers as he has no way to earn a degree and change his status. Nigel believes that a lack of _____ determines his fate.

social mobility

The idea that business people should favor decisions that have both good economic and social consequences is called corporate

social responsibility

A class system is characterized by the fact that a person can move from one ______ to another.

social strata

Reflecting the theories of Smith, Ricardo, and Heckscher-Ohlin, free trade permits ______, which allows a country to manufacture and export in those areas where they have a comparative advantage.

specialization

All societies are divided on a hierarchical basis into social categories called social _____.

strata

In Japan, the emphasis on group affiliation encourages employees to

strongly identify with the company where they work.

A(n) _____ strategy helps a company make good profits but does so without harming the environment.

sustainable

Starbucks' ethical sourcing policies are an example of a(n) ______ that benefits multiple stakeholders including shareholders, the environment, local communities, and customers.

sustainable strategy

Unrealistic performance goals can often only be attained by

taking shortcuts or behaving in an unethical manner

According to the theory of international trade, it makes sense for a company to disperse its production to those countries where

they can be performed most efficiently.

In the real world, it costs money to move products from one country to another, but Ricardo's model does not address these ______ costs.

transportation

TimeTurner Corp. is a company based in the United States that manufactures luxury wrist watches. By western standards, if the company uses sweatshop labor to make these watches, it is most likely to be considered

unethical.

The managers of Simple Sound Manufacturing are struggling to meet their quota that was recently increased by upper management. They decide to eliminate two quality control steps in the manufacturing process. This is unethical behavior that was a result of

unrealistic performance goals.

The trade theories associated with Smith and Ricardo advocate for _____ free trade.

unrestricted

In Westernized societies, freedom to choose is considered everyone's right. The idea of what is good and right is an example of a(n) _____.

value

Garrett's company believes minimizing air emissions is the right thing to do, and it will not contract with a supplier who thinks otherwise. This idea about what the company believes to be right is an example of a

value.

In some nations, war has resulted when members of society feel their freedoms are being discounted. In other words, people are willing to fight for their _____.

values

The ideas about what a group believes to be good, right, and desirable are called _____.

values

What a group believes to be good, right, and desirable is a reflection of their ______.

values

The convergence hypothesis refers to a universal acceptance of ______ across cultures.

values and norms

A group's consideration and acceptance of what is good and right represents their

values.

In the 1980s, Western businesses questioned the ethics of operating in South Africa because the apartheid system in place there

violated basic human rights.

The proponents of mercantilism see trade as a ______ -sum game.

zero