EXAM ONE- MANA 4321 INTERNATIONAL MANAGEMENT
CH 1 LIST THE FOUR TRENDS THAT PART OF THE CHANGING DEMOGRAPHICS OF THE GLOBAL ECONOMY
1) CHANGING WORLD OUTPUT AND WORLD TRADE PICTURE 2) THE CHANGING FOREIGN DIRECT INVESTMENT PICTURE 3) The changing nature of the multinational enterprise 4) The changing world order
CH 2 WHAT ARE THE 3 TYPES OF LEGAL SYSTEMS?
1) COMMON LAW 2) CIVIC LAW 3) THEOCRATIC LAW`
CH 2 IN WHAT 2 WAYS IS SOCIALISM SPLIT IN?
1) COMMUNISM 2) SOCIAL DEMOCRATS
CH 2 WHAT ARE THE FOUR FORMS OF TOTALITARIANISM?
1) COMMUNIST 2) THEOCRATIC 3) TRIBAL 4) RIGHT-WING
ch 4 what are the 5 religions that dominate society?
1) Christianity 2) Islam 3) Hinduism 4) Buddhism 5) Confucianism
CH 1 How Does Globalization Affect Jobs And Income?
1) Critics argue that falling barriers to trade are destroying manufacturing jobs in advanced countries 2) Supporters contend that the benefits of this trend outweigh the costs
CH 3 HOW CAN A COUNTRY TRANSITION INTO A MARKET ECONOMY?
1) DEREGULATION 2) PRIVATIZATION 3) STRONG LEGAL SYSTEM
CH 3 How Is The Political Economy Changing?
1) Democratic revolution (late 1980s and early 1990s) 2) A move away from centrally planned and mixed economies to a market based economy
CH 3 WHAT DOES THE (HDI)HUMAN DEVELOPMENT INDEX MEASURE?
1) LIFE EXPECTANCY 2) EDUCATIONAL ATTAINMENT 3) IF INCOMES ARE ENOUGH TO MEET BASIC NEEDS OF LIFE IN A COUNTTRY
CH 2 WHAT ARE THE 3 ECONOMIC SYSTEMS ?
1) MARKET ECONOMIES 2) COMMAND ECONOMIES 3) MIXED ECONOMIES
CH 1 Describe key factors of the Changing World Order
1) Many former Communist nations in Europe and Asia are now committed to democratic politics and free market economies 2) China and Latin America are also moving toward greater free market reforms
CH 2 What are the 3 main ways that intellectual property can be protected?
1) PATENTS 2) COPYRIGHTS 3) TRADEMARKS
ch 4 Hofstede's dimension of culture:
1) Power distance - how a society deals with the fact that people are unequal in physical and intellectual capabilities 2) Uncertainty avoidance - the relationship between the individual and his fellows 3) Individualism versus collectivism - the extent to which different cultures socialize their members into accepting 4) ambiguous situations and tolerating ambiguity Masculinity versus femininity -the relationship between gender and work roles 5) Confucian dynamism/Time orientation - captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors
CH 1 WHAT ARE THE 2 MACRO FACTORS OF GLOBALIZATION?
1) THE DECLINE OF TRADE BARRIERS TO INTERNATIONAL TRADE AND FOREIGN DIRECT INVESTMENTS 2) TECHNOLOGICAL ADVANCEMENTS IN COMMUNICATION, INFORMATION PROCESSING, AND TRANSPORTATION TECHNOLOGIES
ch 3 What are the drivers for country attractiveness?
1) benefits 2) cost 3) risk
CH 3 WHY IS DEMOCRACY TRENDING?
1) many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations 2) new information and communication technologies have broken down the ability of the state to control access to uncensored information 3) economic advances of the last 25 years have led to increasingly prosperous middle and working classes who have pushed for democratic reforms
ch 4 WHAT FACTORS MUST BE CONSIDERED IN SOCIAL STRATA?
1) mobility between strata 2) the significance placed on social strata in business contexts
CH 3what are the risk of doing business in a foreign country
1) political risk 2) economic risk 3) legal risk
CH 3 What are the cost of doing business in another country?
1) political system 2) economic level 3) legal system
CH 2 WHAT ARE THE TWO MAIN VIOLATIONS OF PROPERTY RIGHTS?
1) private action 2) public action
ch 4 what determines culture?
1) religion 2) political and economic philosophies 3) Education 4) language 5) social structure
CH 3 What are the benefits of doing business in other countries?
1) the market's size 2) the purchasing power of its consumers 3) their likely future wealth
ch 4 What Do Cultural Differences Mean For Managers?
1)To avoid being ill-informed consider hiring local citizens 2) transfer executives to foreign locations on a regular basis
CH 2 WHAT IS TOTALITARIANISM?
A GOVERNMENT IN WHICH ONE PERSON OR POLITICAL PARTY EXERCISES ABSOLUTE CONTROL OVER ALL SPHERES OF HUMAN LIFE AND PROHIBITS OPPOSING POLITICAL PARTIES
CH 2 WHAT IS DEMOCRACY?
A POLITICAL SYSTEM IN WHICH IS BY THE PEOPLE, DIRECTLY OR THROUGH REPRESENTATION
ch 4 WHAT IS A SOCIAL STRUCTURE?
A SOCIETY BASIC SOCIAL ORGANIZATION - LIKE THE STRATIFICATION OF CLASSES OR CASTE
CH 1 WHAT IS GLOBALIZATION?
A TREND AWAY FROM INDIVIDUAL UNITS OF DISTINCT NATIONAL ECONOMIC UNITS TO A GLOBAL MARKET
CH 3 HOW DOES ENTREPRENEURSHIP HELP INCREASE ECONOMIC ACTIVITY?
BY creating new markets and products that did not previously exist
CH 3 What is an inherent business advantage of being the first in a risky market?
By identifying and investing early in potential future economic stars, firms may be able to gain first mover advantages (advantages that accrue to early entrants into a market) and establish loyalty and experience in a country.
ch 4 ARE EASTERN SOCIETIES INDIVIDUALISTIC OR COLLECTIVE?
COLLECTIVE, the group is the primary unit of social organization
CH 3 WHY IS THE SPREAD OF THE MARKET BASED SYSTEM TRENDING?
Command and mixed economies failed to deliver the sustained economic growth achieved in market-based countries
ch 4 DOES CULTURE CHANGE?
Culture evolves over time, changes in value systems can be slow and painful for a society - Social turmoil - an inevitable outcome of cultural change
CH 1 WHAT ARE GLOBAL PRODUCTS?
EXAMPLE; WHEN PRODUCTS LIKE MC DONALD'S CAN NO LONGER BE CALLED "AMERICAN" PRODUCTS AS THEY ARE NOW GLOBALLY AVAILABLE AND ACCEPTED.
ch 4 What Is The Role Of Education In Culture?
Formal education is the medium through which individuals learn many of the language, conceptual, and mathematical skills that are indispensable in a modern society - important in determining a nation's competitive advantage -Japan's postwar success can be linked to its excellent education system- general education levels can be a good index for the kinds of products that might sell in a country
CH 1 GIVE EXAMPLES OF A GLOBAL INSTITUTION?
GATT - GENERAL AGREEMENT ON TRADE AND TARIFFS WTO - WORLD TRADE ORG UN- UNITED NATIONS G-20
ch 4 ARE WESTERN SOCIETIES INDIVIDUALISTIC OR COLLECTIVE?
INDIVIDUALISTIC, HIGH LEVEL OF ENTREPENUERSHIP
CH 1 HOW HAS THE U.S. CHANGED IN RESPECT TO WORLD OUTPUT? 1960 TO 2009?
In 1960, the U.S. accounted for over 40% of world economic activity, but by 2009, the U.S. accounted for just 24%
CH 1 How Has Foreign Direct Investment Changed Over Time?
In the 1960s, U.S. firms accounted for about two-thirds of worldwide FDI flows. Today, the United States accounts for less than one-fifth of worldwide FDI flows
CH 1 WHAT HAS FACILITATED A TREND TOWARD GLOBALIZATION?
LOWERED OR DECLINING BARRIERS TO THE FREE FLOW OF GOODS, SERVICES, AND CAPITAL.
CH 3 WHAT TYPE OF ECONOMY BREEDS Innovation and entrepreneurship ?
MARKET ECONOMY
ch 4 How Does Culture Impact The Workplace?
Management processes and practices must be adapted to culturally-determined work-related values
CH 1 What Is A Multinational Enterprise?
Multinational enterprise (MNE) - any business that has productive activities in two or more countries
CH 3 DO BOTH GNI AND PPP CONSIDER ECONOMIC GROWTH?
NO, EXAMPLE; CHINA AND INDIA ARE GROWING FAST AND ARE EXPECTED TO BECOME THE LARGEST ECONOMIES IN THE WORLD
CH 3 WHAT ARE ENTREPRENEURS?
PERSONS THAT COMMERCIALIZE, innovative new products and processes
CH 2 What Is The Link Between Political Ideology and Economic Systems?
Political ideology and economic systems are connected countries that stress individual goals are likely to have market based economies - countries where state-ownership is common, collective goals are dominant
ch 4 WHAT IS SOCIAL STRATA?
STRATIFIED ON hierarchical basis into social categories, individuals are born into a particular stratum
CH 2 WHAT IS COLLECTIVISM?
STRESSES COLLECTIVE GOALS OVER INDIVIDUAL GOALS, ASSOCIATED WITH SOCIALISM
CH 2 WHAT IS A SOCIAL DEMOCRAT?
THE BELIEF THAT SOCIALISM CAN BE ACHIEVED THROUGH DEMOCRATIC MEANS
CH 2 WHAT IS COMMUNISM?
THE BELIEF THAT SOCIALISM CAN ONLY BE ACHIEVED THROUGH VIOLENT REVOLUTION AND TOTALITARIANSIM
CH 2 WHAT IS INDIVIDUALISM?
THE PHILOSOPHY THAT AN INDIVIDUAL SHOULD HAVE FREEDOM IN HIS OWN ECONOMIC AND POLITICAL PURSUITS
CH WHAT IS A LEGAL SYSTEM?
THE RULES THAT REGUALTE BEHAVIOR ALONG WITH THE PROCESS BY WHICH THE LAWS ARE ENFORCED AND THROUGH WHICH REDRESS FOR GRIEVANCES IS OBTAINED
CH 2 WHAT IS A POLITICAL SYSTEM?
THE SYSTEM OF GOVERNMENT IN A NATION
CH 1 WHY DO WE NEED GLOBAL INSTITUTIONS?
TO HELP MANAGE AND REGULATE THE GLOBAL MARKET PLACE - MULTINATIONAL TREATIES TO GOVERN GLOBAL BUSINESS
ch 4 VALUES AND NORMS OF A CULTURE EVOLVE OVER TIME?
TRUE
CH 3 How Can Managers Determine A Market's Overall Attractiveness?
The overall attractiveness of a country as a potential market and/or investment site for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in politically stable developed and developing nations that have free market systems and no dramatic upsurge in either inflation rates or private sector debt
CH 2 How Can Managers Determine A Market's Overall Attractiveness?
The overall attractiveness of a country as a potential market and/or investment site for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. Other things being equal, more attractive countries have democratic political institutions, market based economies, and strong legal systems that protect property rights and limit corruption.
ch 4 How Are Culture, Society, And The Nation-State Related?
The relationship between a society and a nation state is NOT strictly one-to-one - There can be several cultures in one nation and a culture can embrace several nations.
ch 4 Language is one of the defining characteristics of culture? True or false?
True
ch 4 Is there is a connection between culture and national competitive advantage? True or False?
True, suggests which countries are likely to produce the most viable competitors, has implications for the choice of countries in which to locate production facilities and do business
ch 4 how do cultural differences affect international businesses?
Understanding and adapting to the local cultural is important international companies A relationship may exist between culture and the costs of doing business in a country or region
CH 2 WHAT IS THE GLOBAL INSTITUTION THAT SETS A UNIFORM SET OF RULES FOR TRADE WITH MULTINATIONALS?
United Nations Convention on Contracts for the International Sale of Goods (CIGS)
CH 3 CAN GNI BE MISLEADING? AND WHY?
YES, BECAUSE IT DOES NOT CONSIDER DIFFERENCES IN THE COST OF LIVING
CH 3 Does Education Influence Economic Development?
YES, Countries that invest in education have higher growth rates because the workforce is more productive - countries in Southeast Asia have offset their geographical disadvantages by investing in education - Indonesia, Malaysia, and Singapore
CH 3 Does Geography Influence Economic Development?
YES, Countries with favorable geography are more likely to engage in trade, and so, be more open to market-based economic systems, and the economic growth they promote
ch 4 DO COUNTRIES WITH ONE THAN MORE LANGUAGE USUALLY HAVE MORE THAN ONE CULTURE?
YES, EX: Canada, Belgium, Spain
CH 3 IS THERE A STRONG RELATIONSHIP BETWEEN ECONOMIC FREEDOM AND ECONOMIC GROWTH?
YES, the six countries with the highest ratings of economic freedom from 1975 to 1995 were also among the highest for economic growth- Hong Kong, Switzerland, Singapore, the United States, Canada, and Germany
CH 3 ARE STRONG PROPERTY RIGHTS NEEDED FOR Innovation and entrepreneurship ?
YES, without strong property rights, individuals and businesses risk having their innovations and potential profits stolen
ch 4 what is class consciousness ?
a condition where people tend to perceive themselves in terms of their class background, and this shapes their relationships with others
ch 4 what is an ethical system?
a set of moral principles, or values, that are used to guide and shape behavior- Religion and ethics are often closely intertwined
ch 4 what is religion
a system of shared beliefs and rituals that are concerned with the realm of the sacred
ch 4 What is culture?
a system of values and norms that are shared among a group of people and that when taken together constitute a design for living
ch 4 what are values?
abstract ideas about what a group believes to be good, right and desirable. Values provide the context within which a society's norms are established and justified and form the bedrock of a culture
what are business ethics?
accepted principles of right or wrong governing the conduct of business people
ch 5 what is ethics?
accepted principles of right or wrong that govern
ch 4 WHAT IS A GROUP?
an association of two or more people 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
ch 4 what is cross cultural literacy?
an understanding of how cultural differences across and within nations can affect the way in which business is practiced
CH 2 CIVIC LAW
based on detailed set of laws organized into codes- LESS FLEXIBLE THAN COMMON
CH 2 COMMON LAW
based on tradition, precedent, and custom - INTERPRETATION BASED
ch 4 class system
form of open social stratification position a person has by birth can be changed through achievement or luck
ch 4 WHAT IS BUDDHISM?
has about 350 millions followers stresses spiritual growth and the afterlife, rather than achievement while in this world does not emphasize wealth creation entrepreneurial behavior is not stressed does not support the caste system, individuals do have some mobility and can work with individuals from different classes
CH 2 How Are Property Rights And Corruption Related?
high levels of corruption reduce foreign direct investment, the level of international trade, and the economic growth rate in a country
CH 2 WHAT IS POLITICAL ECONOMY OF A NATION ?
how the political, economic, and legal systems of a country are interdependent
ch 4 WHAT IS CONFUCIANISM?
ideology practiced mainly in China teaches the importance of attaining personal salvation through right action,high morals, ethical conduct, and loyalty to others are stressed three key teachings of Confucianism - loyalty, reciprocal obligations, and honesty - may all lead to a lowering of the cost of doing business in Confucian societies
CH 2 THEOCRATIC LAW
law is based on religious teachings
CH 2 Why was the Foreign Corrupt Practices Act put in place?
makes it illegal for U.S. companies to bribe foreign government officials to obtain or maintain business over which that foreign official has authority. Except for expediting routine government action.
CH 3 WHAT ARE INNOVATIONS?
new products, new processes, new organizations, new management practices, and new strategies
ch 4 what are mores?
norms that are seen as central to the functioning of a society and to its social life
CH 3 WHAT IS GROSS NATIONAL INCOME?
per person measures the total annual income received by residents of a nation
ch 4 WHAT IS HINDUISM?
practiced primarily on the Indian sub-continent focuses on the importance of achieving spiritual growth and development, which may require material and physical self-denial Hindus are valued by their spiritual rather than material achievements promotion and adding new responsibilities may not be important, or may be infeasible due to the employee's caste
CH 3 WHAT MEASURE IS USED TO ADJUST FOR COST OF LIVING?
purchasing power parity (PPP)
ch 4 caste system
system of stratification in which social position is determined by the family into which a person is born
ch 4 what is social mobility?
the extent to which individuals can move out of the strata into which they are born
ch 4 what are folkways?
the routine conventions of everyday life
ch 4 what are norms?
the social rules and guidelines that prescribe appropriate behavior in particular situations
ch 4 WHAT IS THE ROLE OF LANGUAGE IN CULTURE?
the spoken and unspoken (nonverbal communication such as facial expressions, personal space, and hand gestures ) means of communication
ch 4 What is Christianity?
the world's largest religion found throughout Europe, the Americas, and other countries settled by Europeans the Protestant work ethic (Max Weber, 1804) hard work, wealth creation, and frugality is the driving force of capitalism
ch 4 What is Islam?
the world's second largest religion dating to AD 610 there is only one true omnipotent God an all-embracing way of life that governs one's being associated in the Western media with militants, terrorists, and violent upheavals but, in fact teaches peace, justice, and tolerance fundamentalists have gained political power and blame the West for many social problems people do not own property, but only act as stewards for God supportive of business, but the way business is practiced is prescribed
ch 4 An antagonistic relationship between management and labor raises the cost of production in countries with significant class differences? True or false?
true
CH 2 HOW ARE CONTRACTS DETAILED UNDER CIVIC LAW?
under a civil law system, contracts tend to be much shorter and less specific because many issues are already covered in the civil code
CH 2 HOW ARE CONTRACTS DETAILED UNDER COMMON LAW?
under a common law system, contracts tend to be very detailed with all contingencies spelled out because common law is based on interpretation of judges
