International Business Exam 2
Jarek was promoted to the international post because he had the ability to "put himself in another person's shoes" and understand why people in other countries behave the way they do. Which of Mendenhall and Oddou's dimensions does Jarek display?
perceptual ability
According to Mendenhall and Oddou, what dimension for predicting success in a foreign posting strengthens an expatriate's self-esteem, self-confidence, and mental well-being?
self-orientation
A group of people who share a common set of values and norms is called a(n)
society
local content requirements
specific percent of television imports must be produced domestically
A nation that imposes a fixed charge of $3 per barrel of oil imported into the country is relying on which instrument of trade?
specific tariff
The United States has raised the taxes on tomatoes imported from Mexico. These taxes are an example of a(n)
tariff
Hiroko lives in Japan. She belongs to many groups, but the one that is most important to her in terms of her status is most likely
the company she works for
According to the results of a seminal study by R. L. Tung, the top reason why Japanese expatriate managers fail is
the inability to cope with larger overseas responsibilities
In the video, the phrase "lost in translation" refers to
the misunderstandings that occur when people in different countries interpret a message differently than was intended
Expatriate failure refers to
the premature return of an expatriate manager to his or her home country
Polycentric
Advantage: Inexpensive Disadvantage: HQ isolated
can contribute to expatriate success
Family concerns: Training areas Human resource management: strategic tool Selection and preparation: research findings
ad valorem tarriff
U.S. imposes 2.5 percent tariff on imported watches
specific tariff
U.S. levies a $1 tariff on imported watches
import quotas
U.S. restricts the number of imported video games
__________ is important for IBM as it pursues its transnational strategy.
A strong corporate culture
__________ are put in place to make it difficult for imports to enter a country.
Administrative trade policies
China has been accused of prohibiting U.S. companies that offer cloud computing from offering their services in China. Which argument best explains this?
China wants to protect its firms from their more competitive U.S. rivals
Which ethical system has influenced behavior and shaped culture in parts of Asia, but is not considered a religion?
Confucianism
administrative policies
Drug unapproved by FDA if banned in the U.S.
What is the most widely spoken language in the world, and is increasingly becoming the language of international business?
English
One of the central beliefs of mercantilism is that
a country's government should intervene to achieve a surplus in the balance of trade
Max Weber argued that the ascetic principles embedded in __________ do not encourage entrepreneurial activity in pursuit of wealth creation.
Hinduism
What is a characteristic of Islamic values, norms, and rituals?
Islam forbids the consumption of pork and alcohol
How is a geocentric staffing policy beneficial to a firm?
It enables the firm to make the best use of its human resources
According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, what is a result of the attribute of others-orientation?
The expatriate makes an effort to use the local language
What is a characteristic of high uncertainty avoidance cultures?
They allow a manager to tightly control subordinates' initiatives
voluntary exports restriants (VERs)
U.S. asks Peru to restrict sugar exports to U.S.
What is one difference between folkways and mores?
Violating mores tends to bring more serious retribution than violating folkways
As part of its effort to protect its auto makers from foreign competition, suppose Brazil levied a tariff based on a proportion of the value of the product. Brazil would be imposing a(n) _______ tariff
ad valorem
A country follows a system of social stratification that allows for flexibility in terms of social mobility. In this system of open stratification, the status of a person is solely determined by his or her own socioeconomic achievements. This country is most likely to be following what system of social stratification?
class
At a job fair, a recruiter explained to Marcia that his company not only looks for employees who have college degrees and work experience, but also those who have the same beliefs and value systems as the company. What aspect of the company is the recruiter referring to?
coporate culture
The group that benefits the most from receiving subsidies is
domestic producers
If Italy exports vast quantities of footwear to Germany, selling them at below their costs of production, it would be an example of
dumping
Data security software is an expensive process, but manufacturers are able to spread out the costs of the software development over the hundreds of thousands of security programs sold to consumers. What is helping to drive down costs per unit in this situation?
economies of scale
A(n) __________ staffing approach is compatible with an international strategy but can produce resentment in the host country
ethnocentric
The effort by the U.S. manager to implement policies that had worked in the United States, such as smiling at customers as they entered the store, with little concern as to whether they were appropriate for the German culture can best be described as
ethnocentric
What staffing policy relies extensively on the use of expatriate managers?
ethnocentric
The economic and strategic advantages that accrue to early entrants in an industry are called
first-mover advantages
Roberto knows it is important for him to dress appropriately and make sure his hair is neatly trimmed when he goes for an interview because the employer will expect him to do so. This example of a social convention is called a
folkway
Within an international business, __________ is typically responsible for international labor relations.
human resource management
Some countries limit the amount of sugar that can be imported. This restriction is called a(n)
import quota
According to the results of a seminal study by R. L. Tung, what was the major reason for expatriate failure among European expatriates?
inability of spouse to adjust to a new environment
According to new trade theory, trade, through its impact on economies of scale, is most likely to
increase the variety of goods available to consumers
One of the downsides to an emphasis on individualism is that it
is difficult to build teams within an organization to perform collective tasks
If the United States levies a tariff of $0.50 on every pound of coffee imported from Kenya, the United States has
levied a specific tariff on imported coffee from Kenya
Russians tend to rank ________ on individualism and _______ on uncertainty avoidance.
low; high
Which statement about most Western societies is true?
The value systems of many Western societies emphasize individual achievement
Alexander Hamilton argued that tariffs are an effective means of protecting infant industries until they are better able to compete. Which is not true of tariffs used to protect infant industries?
They promote more efficient use of resources
According to the survey by Towers Watson, which country provides the highest pay to CEOs?
United States
An American businessperson in Russia who recognizes that a lack of a smile by their Russian counterpart does not indicate that the American has done anything wrong might have
a high degree of cross-cultural literacy
A European nation specializes in engine parts, while its geographical neighbor specializes in automobiles. Each country exports the product it specializes in to the other country. According to the theory of comparative advantage, this mutually beneficial trade relationship best illustrates
a positive-sum game
Brazil used tariffs to protect its auto industry in the 1950s. Tariffs
are taxes levied on imports or exports
One difference between Ricardo's theory and the Heckscher-Ohlin theory is that the Heckscher-Ohlin theory
argues that the pattern of international trade is determined by differences in national factor endowments
Iroquois Brands, a Singapore-based gemstone company, continuously expands into Africa to source and process commodities. The company finds that many of these countries lack advanced higher education institutions, and thus decides to pursue an ethnocentric senior staffing policy in Africa. This is most likely because the management of Iroquois Brands
believes host counties lack qualified individuals for senior management positions
What is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime?
caste system
Intel spreads the huge fixed costs of developing new generation chips over the nearly 2 billion chips it sells to computer makers. Intel benefits from
economies of scale
When compared to American society, some argue that Japanese society is characterized by a lack of
entrepreneurship
The manager in the video has lived and worked in multiple countries and considers those experiences important to her management development. Suppose a company has a staffing policy in which all key management positions are filled by parent company nationals. That company has a(n) __________ staffing policy.
ethnocentric
With its decision to head its operation in Germany with an American manager from the Bentonville headquarters, Walmart's staffing policy in Germany can best be described as
ethnocentric
According to the Heckscher-Ohlin theory, the pattern of international trade is affected by differences in
factor endowments
Which situation exemplifies a violation of a folkway?
failing to greet a person you know
Airbus pioneered the development of the new superjumbo jet at a cost of $15 billion. It quickly obtained contracts for many of the 400 units that are expected to be ordered in the next 20 years, thereby effectively shutting out its competitor, Boeing. Airbus benefits from
first-mover advantages
Which argument for government intervention in trade best describes the rationale behind the United States' interest in negotiating a trade deal with Kenya?
furthering foreign policy objectives
The staffing policy at IBM can best be characterized as
geocentric
In a social context, the term values is used to describe the
ideas about what a group believes to be good, right, and desirable
When traveling to another country on business, Jacob was shocked to meet a male nurse. In his hometown, nurses were always female. Jacob's home country culture displays a high degree of which of Hofstede's cultural dimensions?
masculinity
Joshua decided that the only way he could pay back his auto loan was to transfer funds from the company where he worked directly into his personal account. He also knows that if he gets caught, he will probably spend time in jail. Joshua's choice represents a violation of
mores
The manager in the video discusses the use of the word "no" in Indonesia and how her experiences in Indonesia help her better understand Indonesian colleagues. Which dimension identified by Mendenhall and Oddou focuses on the ability to understand why people of other countries behave the way they do?
perceptual ability
Liam Fletcher of Next Step Financial Group works in the human resource department and is responsible for developing criteria for matching prospective employees to available jobs. What is Liam responsible for?
staffing policy
Job security and retirement benefits are extremely important to an entry-level employee. Hofstede would say this employee exhibits high
uncertainty avoidance
According to Confucian thought, being loyal to one's superiors is considered
an absolute obligation
A high degrees of class consciousness in societies can be disruptive within industries, which can often lead to
an increase in the costs of production
A drawback of IBM's staffing approach is that it
can be expensive to implement
A major distinction between a conventional bank and an Islamic bank is that Islamic banks
cannot pay or charge interest
In 1904, Max Weber theorized that there was a relationship between Protestantism and
capitalism
In one country, citizens are restricted from moving out of the stratum they are born into. Also, individuals are allowed to engage only in the same occupation as their parents. The system of social stratification being practiced is a __________ system
caste
When Sari learned that Mary was from a poor neighborhood in the south of town, she decided to stop befriending her since her own family lives in a wealthy neighborhood along the beach. Sari's choice is an example of
class consciousness
Which trade theory suggests that trade is a positive-sum game in which all participating countries realize economic gains?
comparative advantage
New trade theory argues that, through its impact on economies of scale, trade can
decrease the average cost of goods.
Caterina argues to anyone who will listen that the cultural group she belongs to is superior. As a result, she has developed a reputation in her company as being intolerant of employees from other cultures. Caterina's behavior is known as
ethnocentrism
The United States has accused China of
exacerbating the global glut of steel by investing in additional production
An employee of IBM who is from India but is working in the United States can be described as a(n) __________ manager
expatriate
According to Max Weber, the Protestant tributes of hard work, wealth creation, and __________ fostered the emergence of modern capitalism
frugality
The manager in the video discusses the importance of living and working in different countries. If an international firm wants to build a strong corporate culture and informal management network, the firm should choose a(n) __________ staffing strategy.
geocentric
After many months of communicating via email and telephone, Jade is eager to meet her Russian colleague, Irina, at a trade show in St. Petersburg, Russia. Jade is upset and offended, however, when Irina fails to return her warm smile when they finally meet in person. Jade
is demonstrating a lack of cross-cultural literacy
A high degree of managerial mobility in societies that emphasize individualism can lead to
lack of company-specific experience, knowledge, and a network of contacts among managers
A company that wants to market winter gear to citizens of Alaska should be aware that there are 24 words used in the state to describe different types of snow. This shows how __________ structures how we perceive the world and defines a culture
language
Economies of scale are achieved as the result of __________ that creates unit cost reductions.
large scale output
One of the most important things an international businessperson can do to avoid cultural misunderstandings is to
listen to your client or customer
On Track Limited has an order to sell 50,000 pieces of fitness equipment to Brazil, but the Brazilian government stipulated that 35 percent of the component parts of the equipment must be produced in Brazil. This stipulation is an example of a(n)
local content requirement
Which trade strategy is in a country's best interests, according to the main tenet of mercantilism?
maintaining a trade surplus
Mandarin Chinese is the mother tongue of the largest number of people, but English is the most widely spoken language in the world. This indicates that
many people speak English as a second language
Which theory asserts that countries should simultaneously encourage exports and discourage imports?
mercantilism
Which theory states that in those industries where the output required to attain economies of scale represents a significant proportion of total world demand, the global market may be able to support only a small number of enterprises?
new trade
According to Ricardo's theory of comparative advantage, consumers in all nations can consume more if there are
no restrictions on trade
In a society, actions of people directed toward one another are governed by a set of social rules called
norms
Which aspect of organizational architecture is considered the linchpin that brings together all of the other components?
people
According to Mendenhall and Oddou, __________ provides an expatriate the ability to understand why people of other countries behave the way they do.
perceptual ability
Garret Plastics, a United States-based company, is clear-cut in its human resources policy with regard to international expansion. While U.S. nationals staff key positions at its Atlanta, Georgia, headquarters, it recruits locals to manage subsidiaries in each country into which Garret expands. Garret Plastics' staffing policy is
polycentric
When Tyrell accepted the job in England, he and his family received information on the best roads to take to get their children to school, where to shop for groceries, and referrals for medical and dental care. What kind of training did they receive?
practical
A mudarabah contract might be categorized as a(n) __________ in the United States
profit-sharing scheme
Ultimately, antidumping policies are put in place to
protect domestic producers from unfair foreign competition
Repatriation refers to
reentry of expatriate managers into their home-country organization
Natalie is considered an excellent candidate for the foreign job posting because she is self-confident and demonstrates strong self-esteem. Mendenhall and Oddou would label these characteristics as
self-orientation
The request by the U.S. manager that all meetings at the German headquarters be held in English indicates
the U.S. manager received inadequate training for his assignment in Germany
Kristina felt very uncomfortable while talking to the store manager because he moved so close to Kristina that his face was just inches away. What aspect of the situation was bothering Kristina?
unspoken language
Many Russians feel that smiling when nothing funny has happened is odd. Smiling is an example of
unspoken language
smiling is an example of
unspoken language
Janine values individual freedom, democracy, and loyalty, and she believes all Americans do the same. This belief is an expression of Janine's
values
The general acceptance by Russians of hierarchy and power differentials arising from social status reflects their
values
If a country is experiencing a surge of construction machinery from a trading partner, it might ask that country to set a limit on how much can be exported. This limit is known as a
voluntary export restraint (VER)
Geocentric
Advantage: Builds strong networks Disadvantage: expensive
antidumping policies
EU imposes special tariff on very low-priced steel imports
Which theory predicts that countries will export those goods that make intensive use of factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce?
Heckscher-Ohlin theory
According to the Smith, Ricardo, and Heckscher-Ohlin theories, a country's economy may gain if its citizens buy some products from other nations that could be produced in their home nation. What is the reasoning behind this idea?
International trade allows a country to specialize in items that can be produced most efficiently in that country
What is an advantage of a polycentric staffing approach?
It is less expensive to implement as compared to other staffing approaches
The insistence of the U.S. manager that the German staff do the traditional Walmart cheer suggests
a lack of cross-cultural literacy on the part of the U.S. manager
A charge of 16 percent is levied by the government of a foreign nation on the value of refrigerator and freezer components imported from a neighboring country. This results in an increase in the price of those imported appliances for the consumer. This foreign nation is using a(n)
ad valorem tariff
According to the video, which would be the most beneficial quality for an international business manager?
being able to understand the perspective of a receiver of a message
When she visited Italy, Catherine noticed that restaurants were slower to deliver food and expected customers to stay longer than she was used to in the U.S. This is an example of a
folkway
Recognizing that Russians typically only smile in response to something funny reflects an understanding of which part of Russia's culture?
folkways
As an enticement to accept a new job position within her company, Kendra is offered a $10,000 "bonus" if she transfers from the San Diego office to the Tokyo office. This "bonus" is called a(n)
foreign service premium
According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, an individual exhibiting an others-orientation would
have the ability to interact with host-country nationals
Which of Hofstede's dimensions focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities?
power distance
The United States is demanding that China reduce overcapacity in which industry?
steel
If China provides cash assistance to its companies in the steel industry, China is using which type of trade instrument?
subsidy
In some years, the U.S. government has paid soybean farmers an additional $1.65 on every bushel of soybeans they sell. This money is an example of a(n)
subsidy
Some sociologists argue that __________ has a more rigid class structure than other Western societies, including the United States, because of its historical division into three main classes
the United Kingdom
In one country, people are traditionally conscious about their socioeconomic backgrounds. This in turn regulates their relationships with members of other classes. What will most likely result from this heightened class consciousness?
An antagonistic relationship will exist between management and labor classes
subsidies
EU payments to European farmers
What is the best definition of personal space?
It is the comfortable amount of distance between you and someone you are talking with
Currently, the United States and Kenya do not have a trade agreement. If the United States imposes an import tariff on products from Kenya typically
U.S. consumers lose, U.S. producers gain, and the U.S. government gains
As a trade theory, mercantilism was based on the idea that a trade surplus would lead to
accumulations of gold and silver
John is developing the training program for employees at his company's newest fast food franchise in Moscow. In addition to training staff members on the appropriate food handling methods, John wants the employees in Moscow to follow the greeting protocol used in the United States of always saying hello and smiling at customers as they walk in the door. John is taking a(n) ___________ approach to training and managing the staff at the Moscow store.
ethnocentric
Which staffing policy is concerned with filling all key management positions by parent-country nationals?
ethnocentric
Kendrik, a U.S. citizen, is the operations manager at the Middle East office of Creston Builders Inc., an American firm. In this situation, Kendrik is a(n) __________ manager.
expatriate
The United States and Kenya are exploring the possibility of a trade deal. ________ refers to a situation in which a government does not attempt to restrict what its citizens can buy from or sell to another country.
free trade
Preston Audio, a German audio equipment manufacturer, has a policy of appointing the best person for the job in its various locations regardless of the candidate's nationality. Which staffing policy best describes Preston Audio's approach?
geocentric
William has accepted a position at his company's office in South Africa. This will be a challenge to him as he currently works out of the U.S. office and will not have basic amenities like retail stores and comparable health care in his new location. His company plans to offer him a(n) __________ allowance to compensate for these deficiencies.
hardship
In the context of social structure, comparatively American society is characterized by a low degree of
social stratification
Karon was born into a family that owns numerous corporations and more than one multimillion dollar home. She never worried about paying for college or buying her own car. These characteristics define Karon's
social stratum
Ethnocentric
Advantage: compatency transfer Disadvantage: cultural myopia
Which statement best conceptualizes the relationship between trade and economic growth?
Countries open to international trade display higher growth rates than those that close their economies to trade
Suppose a Japanese company has branch offices in Spain where Spanish is spoken at work, and France where French is spoken at work. Which is true?
Cultural misunderstandings occur even when everyone is working toward the same goal
The infant industry argument suggests that protecting infant industries from foreign competitors will allow them time to become large enough to enjoy economies of scale. Who typically wins and who loses from a government policy to protect infant industries?
Domestic consumers and foreign producers lose, while the home government and home producers gain
Can contribute to expatriate failure
Family concerns: spouse reaction Human resource management: training/development Selection and preparation: past success
Armen's religion believes in the spiritual progression of each person's soul and that dharma is the moral force guiding behavior. Which religion does this describe?
Hinduism
Charleston Ceramics, a U.S. dinnerware products company, follows a polycentric staffing approach, and key positions at the company's U.S. headquarters are staffed by U.S. nationals while foreign subsidiaries are managed by locals. While the company's international business has grown exponentially in the past five years, greater competition in the United States has caused this office to see a decline in sales and many top U.S. managers are leaving the company. What drawback to a polycentric approach might explain this?
It limits advancement opportunities for managers
What is a characteristic of an ethnocentric staffing policy?
It places parent-country nationals in key management positions
There are vast differences in local market needs in the consumer energy drink business around the world. Tall Trees Media, a U.S. multinational advertising agency, specializes in the energy drink industry and uses a geocentric staffing approach. What advantage would the company gain by using this approach?
It tends to reduce cultural myopia and enhance local responsiveness
Some sociologists argue that the __________ branch of Christianity has had the greatest effect on the economy.
Protestant