International Business Exam 2 (Roy Phillip, Trevecca, Spring 2019)

______ stresses that in some cases countries specialize in the production and export of particular products because the world market can support only a limited number of firms

(??) New Trade Theory?

According to chapter 6, a country has an ______________ in the production when it is more efficient than any other country at producing it

Absolute advantage

David Ricardo's theory of comparative advantage explains

International trade in terms of international differences in labor productivity

In the opening case of chapter 6, ____________ was the free trade deal that President Trump called "the worst trade deal maybe ever signed anywhere"

NAFTA

OECD stands for

Organization for Economic Cooperation and Development

The _____________ outlawed the paying of bribes to foreign government officials to gain business

Foreign Corrupt Practices Act

___________ trade refers to a situation in which a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country

Free

________ supports the idea that countries should export more than what they import

Mercantilism

The ______ approaches to ethics hold that the moral worth of actions or practices is determined by their consequences

Utilitarian

The most widely practiced religion in the world is

Christianity

___________ is the official ethical system of China

Confucianism

According to the ________ point of view, a firm should adopt the ethics of the culture in which it is operating

Cultural Relativism

Which of the following is true regarding culture?

Culture is not static

T/F Hecksher-Ohlin theory does not support the case for unrestricted free trade between nations

False

T/F folkway do not include rituals and symbolic behavior

False

T/F in today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist

False

T/F the ethical obligations of a multinational corporation toward employment conditions, human rights, environmental pollution, and the use of power are always clear-cut

False

T/F the theories of Smith and Ricardo show that countries should not engage in international trade for products that it is able to produce itself

False

T/F Values are abstract ideas about what a group believes to be good, right, and desirable

True

T/F according to Max Weber, protestantism encouraged capitalism's development by emphasizing the importance of wealth creation and frugality

True

T/F ethical strategy is a course of action that does not violate ethical principles

True

T/F what is considered normal business practice in one country may be considered unethical in other countries

True

T/F: Social responsibility in business refers to the idea that business people favor decisions that have both good economic and social consequences

True

______ recognize that human beings have a fundamental rights and privileges that transcend national boundaries and cultures (?)

Utilitarians (?)

Abstract ideas about what a group believes to be good, right, and desirable are called:

Values

___________ are best defined as shared assumptions about how things ought to be

Values

Cross-cultural literacy refers to

an understanding of how cultural differences can affect business.

Values and norms that are shared among employees of an organization refers to

Organizational culture

A firm's _____________ are individuals or groups that have an interest, claim, or stake in the company , in what it does, and in how well it performs

Stakeholders

The most widely spoken language in the world is

English