International business

Which of the following was a notable trend in political systems during the second half of the 20th century and beginning of the 21st century?

A wave of democratic transformations occurred as countries around the world moved away from totalitarian systems

Which of the following countries has an individualistic orientation?

Canada

________ law sets the framework for the system of government and defines the authority and procedure of political bodies to establish laws and regulations

Constitutiona

Which of the following statements describes an inconsistency of the Foreign Corrupt Practices Act (FCPA)?

Facilitation payments are excluded from the FCPA's definition of bribery

in high context cultures,

Feelings and thoughts are not explicitly expressed

The same automobile company produces Fiats and Ferraris. The company builds an engine plant in China with low production costs for Fiats but not Ferraris. The probable reason is that ________.

Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy

which of the following is true about language?

Language has both verbal and nonverbal characteristics

Which of the following is a characteristic of totalitarian governments?

Leaders rule without the explicit approval of the people.

Reebok pays a royalty to the German Soccer League to use the team's logo on t-shirts that it sells. Reebok and the German Soccer League most likely have a __

Licensing

which of the following languages has the most native speakers?

Mandarin

Which of the following statements about approaches to political risk management is NOT true?

Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.

In which of the following countries would there be the highest likelihood of encountering a bribery situation?

Russia

All of the following countries have a totalitarian political system EXCEPT ________

South Korea

________ means meeting humanity's needs without harming the ability of future generations to meet their needs.

Sustainability

Which of the following is NOT a common argument for the slowing of future globalization?

Technological, transportation, and communication advances will decline in the near future.

Which of the following statements is most likely true regarding relationships between MNEs and stakeholders?

The inability to adequately meet the long-term needs of all stakeholders increases the probability of an MNE failing.

An example of a Japanese service export is a visit by a ________.

U.S. citizen to Tokyo Disneyland in Japan

In which of the following countries would business activity, given its status as a "not free" marketplace, be under the greatest government control?

Vietnam

all of the following are international business translation problems except which of the following?

all written work requires back translation in order to be understood in a second language.

the more closed a society is, the more important __________ group membership is.

ascribed

business people seeking to understand more about another culture in order to successfully conduct business within that culture would best be advised to do which of the following?

avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

balance of payments

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.

civil

Ian, a financial manager, is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office. Which type of legal system will Ian most likely have to deal with in Germany?

civil

Monique has recently been hired as an accounts supervisor at Ballston Enterprises. She wants to understand Ballston's values and its expectations for employee behavior. Which of the following would most likely provide Monique with this information?

code of conduct

Safe work environments motivate ________; challenges motivate ________.

collectivists; individualists

In Country X, all dimensions of economic activity, including pricing and production decisions, are determined by the central government. Which term best describes Country X?

command economy

A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution

common

According to the teleological approach, individuals base moral decisions on _______

consequences of an action

An advocate of the legal-justification standard would most likely assert that the law ________.

contains enforceable rules that apply to everyone

cultural changes occur when people integrate into their culture the gestures, material objects, traditions, or concepts of another culture through ______________.

cultural diffusion

American hamburgers, Japanese sushi, Italian pizza, Mexican tacos, and Middle Eastern pita bread are now commonly found in most countries. This best supports the argument that ________.

cultural hybridization is occurring

Which of the following has NOT been a major force increasing globalization in recent decades?

decreasing prices of natural resources

A(n) ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives.

democracy

According to the concept of green economics, measuring a country's economic performance should also take into account ________.

ecological costs

A worrisome outcome of chronic inflation is that it tends to ________.

erode confidence in a country's currency

The Human Development Index measures the average achievements in a country on three basic dimensions of human development, including ________.

extent of knowledge

The integration of markets, nation-states, and technologies in a way that is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before is referred to as ________.

globalization

In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are planned by ________.

government officials

Communism primarily relies on a system of ________.

government-controlled economic activity

The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its ________.

gross domestic product (GDP)

An economic system is the set of structures and processes that ________ in a country.

guides the allocation of resources and shapes the conduct of business activities

The term "________ culture" describes a country in which the norm is a money-and-things orientation and a belief that it's better to "live to work" than to "work to live."

high masculinity

in ___________ cultures, people expect others to understand unarticulated moods, subtle gestures and environmental clues.

high-context

A company subscribing to ethical relativism would implement the morality of the ________.

host country

organizing work differently to improve productivity will likely fail ______________.

if changes interfere with strongly held value systems

Quantum Footwear is an MNE that manufactures inexpensive shoes. Quantum outsources portions of its production to independent companies located in Bangladesh and India, where child labor is common. Other clothing and footwear firms have recently faced criticism regarding the use of child labor, and Quantum executives want to avoid similar problems. Which of the following would be the best approach for Quantum?

improving conditions at the subcontract facilities

Gross national income (GNI), the broadest measure of economic activity for a country, is defined as the ________.

income generated by both total domestic production and the international production activities of national companies

The Gini coefficient estimates a country's ________.

income inequality

Although there are different views about the purpose of a political system, most analysts agree that an essential task of a political system is to ________.

integrate the different elements of a society into a functioning unit

Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

intellectual property violations

expatriate managers located in cultures characterized by ____________ have noticed that local employees are highly motivated by retirement programs.

low masculinity.

Al Mateen, a construction engineer, recently traveled to Germany in order to find investors for his real-estate project . while he finally succeeded In getting an investor, he was surprised by the explicitness of the germans. sometimes all he got was a direct 'no'. this is because germans are a ______________ culture.

low-context

arcading to the theory of success and reward expectations, the greatest enthusiasm for work generally occurs when there is a _______________ certainty of success combined with a ___________ reward for success compared to the reward for failure.

low; high

In the Economic Freedom Index, ________ exhibit high economic freedom whereas ________ exhibit little to no economic freedom.

market economies; command economies

Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

minimal government intervention

Market economies are primarily characterized by ________.

minimal governmental participation

a culture in which people prefer to finish one task before starting another is most accurately characterized as which if the following?

monochronic

although English us referred to as the 'international language of business," ______________

monolingual English speakers may experience more difficulty in the future communicating on a worldwide basis.

According to the Ethical Trading Initiative (ETI), ________.

no harsh or inhumane treatment of workers should be allowed

The process of shifting production from a domestic to a foreign location is best known as

offshoring

In a totalitarian political system, ________.

one agent monopolizes political power

People in the port city of Jeddah were less culturally conservative than people in the interior of the country. The most likely reason for this is that ________.

people in the port cities have more contact with foreigners

In the United States, the unemployment rate indicates the ________.

percentage of unemployed workers seeking paid work relative to the total labor force

organizations which have cultures that score high on ____________ tend to be more hierarchical, with power deriving from prestige, force, and inheritance.

power distance.

The saying "When in Rome, do as the Romans do" applies to the ________ approach.

relativism

Which stakeholder group primarily wants additional sales and increased productivity?

shareholders

Which of the following would most likely be used in a totalitarian system to promote unconditional support for the official ideology?

state control of the education system

Which of the following BEST explains how a firm reduces risk by operating internationally?

taking advantage of business-cycle differences among countries

The view that globalization is inevitable is most likely based on the belief that...

technical advances in transportation and communications are highly persistent

All of the following are reasons piracy has occurred EXCEPT ________.

the protection of intellectual property rights varies little from country to country

Dawson Enterprises, a U.S. firm, conducts business in Saudi Arabia. The MNE recently experienced a business dispute with a local firm and was forced to meet the demands of the local firm without going through due process. Dawson's experience most likely occurred because Saudi Arabia relies on ________.

theocratic law

Susan decides not to set up production facilities in Ronesia because its business laws are vague and are often interpreted according to the convenience of the government. Bribery is a common feature in conducting business deals there and a refusal to pay up is not an option. What kind of government does Ronesia have?

totalitarian

a problem of using the nation as a reference point for culture is that ___________.

variations tend to be great within a country (state)

Which of the following is most likely a characteristic of a "partly free" country, such as Guatemala, Pakistan, or Tanzania?

weak rule of law

When companies face the same competitors in almost all countries where they operate,

what they learn about one another in one country is useful in predicting the others' strategies and actions elsewhere

In a practical sense, the term political system is meant to signify the _______

working government in a country