MGT 5632 Test 1

Because culture is not directly observable, it is a) best ignored in foreign sales, to avoid mistakes. b) best learned about by observation of how it manifests itself. c) likely to be impossible to comprehend. d) best studied through language, since language is closest to culture.

best learned about by observation of how it manifests itself. Explanation: Culture is best studied through its manifestations, the social world in which it exists.

What form of business I is carried out across international borders?

International business

Which Driver does the following scenario fall under? Microprocessors, telecommunications advances, and the Internet have fueled changes. a) Cost b) technological c) political d) market e) competitive

technological

Deals that do not result in a foreign investor obtaining at least ________ of the shareholdings are classified as portfolio investments. a) 25 percent b) 50 percent c) 10 percent d) 100 percent

10 percent Explanation: Deals that do not result in the foreign investor's obtaining at least 10 percent of the shareholdings are classified as portfolio investments.

Environment a) Forces originating in the home country that surround and influence b) Internal forces that management administers to adapt to changes in external force c) Either a global or a multidomestic company d) All the forces influencing the life and development of the business

All the forces influencing the life and development of the business

The three nations that exported the largest amount of goods to the United States in 2017 were a) China, Mexico, and the United Kingdom. b) China, Canada, and Mexico. c) China, Japan, and Saudi Arabia. d) Canada, Mexico, and Japan.

China, Canada, and Mexico. Explanation: Figure 2.2 shows the major trading partners of the United States. China, Canada, and Mexico were the largest sources of U.S. imports of goods.

Which Driver does the following scenario fall under? Companies are exporting or producing overseas to capitalize on economies of scale in R&D, production, inventory costs, and so on. a) Cost b) technological c) political d) market e) competitive

Cost

International Company a) Forces originating in the home country that surround and influence b) Internal forces that management administers to adapt to changes in external force c) Either a global or a multidomestic company d) All the forces influencing the life and development of the business

Either a global or a multidomestic company

Domestic Environment a) External forces over which management has no direct control b) Operations of a company outside its home or domestic market c) Interaction between domestic and foreign forces or between sets of foreign environmental forces d) Forces originating in the home country that surround and influence the business's life and development

Forces originating in the home country that surround and influence the business's life and development

What denotes the operations of a company outside its home or domestic market; many refer to this as business conducted within a foreign country?

Foreign business

Controllable Forces a) Forces originating in the home country that surround and influence b) Internal forces that management administers to adapt to changes in external force c) Either a global or a multidomestic company d) All the forces influencing the life and development of the business

Internal forces that management administers to adapt to changes in external force

Of the arguments against globalization which matches the following? Developed nations with more rigorous labor standards become disadvantaged as jobs move to developing nations with lower standards. a) Results across nations and people b) Environment and Health c) Trade creates new jobs, and these tend to be better than the old ones. d) jobs e) Socioeconomic development f) Labor and labor standards

Labor and labor standards

____________ time is linear and divisible into blocks, reflecting an economic approach.

Monochronic

Monochronic time is best illustrated by a) the multitude of activities required by new parents. b) the flight schedule at an airport. c) on-duty nurses' roles in an emergency room. d) a rock concert.

Monochronic time Explanation: Monochronic time is linear and divisible into blocks, reflecting an economic approach.

Foreign Business a) External forces over which management has no direct control b) Operations of a company outside its home or domestic market c) Interaction between domestic and foreign forces or between sets of foreign environmental forces d) Forces originating in the home country that surround and influence the business's life and development

Operations of a company outside its home or domestic market

Of the arguments against globalization which matches the following? Free trade is the best strategy for advancing the world's economic development. a) Results across nations and people b) Environment and Health c) Trade creates new jobs, and these tend to be better than the old ones. d) jobs e) Socioeconomic development f) Labor and labor standards

Socioeconomic development

Who is credited with being the first person to coin the term "globalization?" a) Peter Drucker b) John Keynes c) Theodore Levitt d) Stephen Covey

Theodore Levitt Explanation: Theodore Levitt is credited with being the first person to coin the term "globalization."

Self-reference Criterion a) Business whose activities are carried out across national borders b) Forces originating outside the home country that surround and influence the business c) Unconscious reference to your own cultural values when judging behaviors in a new and different environment d) Either a global or a multidomestic company

Unconscious reference to your own cultural values when judging behaviors in a new and different environment

Supporters of mercantilism would agree that a) more than one nation can maintain a comparative advantage. b) accumulation of precious metals is an activity essential to a nation's welfare. c) industrial development is the primary source of a nation's wealth. d) trade policies that generally benefited consumers and emerging industrialists should be promoted.

accumulation of precious metals is an activity essential to a nation's welfare. Explanation: Supporters of mercantilism viewed precious metals such as gold and silver as the only source of wealth, and their accumulation as essential to a nation's welfare.

James realized the company's marketing materials should avoid the color red in South Africa because it is the color of mourning in that country. What part of culture is James taking into consideration? a) gift-giving b) spoken language c) stereotypes d) aesthetics

aesthetics Explanation: Aesthetics reveal a country's sense of beauty and taste.

The music and folklore associated with society is one way to communicate a culture's a) finance. b) aesthetics. c) language. d) religion.

aesthetics Explanation: Music and folklore communicate a culture's aesthetics.

Material culture includes a) all human-made objects. b) the makers of things but not those who use them. c) only things that are used in production processes. d) all textiles and fabrics.

all human-made objects. Explanation: Material culture includes all things people make, including who makes them, why they make them, and how.

According to the theory of comparative advantage, trade can benefit if... a) both countries involved in a trade. b) the importing country involved in a trade. c) the exporting country involved in a trade. d) neither country is involved in a trade.

both countries involved in trade. Explanation: British economist David Ricardo demonstrated in 1817 that even though one nation held an absolute advantage over another in the production of each of two different goods, international trade could still be a positive-sum game in which both countries benefit.

Most multinationals are based in ________blank countries, but recently there has been a surge in the number arising in ________blank countries. a) underdeveloped; developing b) developed: underdeveloped c) developed; emerging d) emerging; underdeveloped

c) developed; emerging Explanation: While most multinationals are based in the developed nations of the world, recently there has been a surge in the number arising in emerging economies.

Which of these is considered an external environmental force? a) human resources b) production c) competition d) marketing

competition

Which Driver does the following scenario fall under? Competition continues to increase in intensity with new firms entering global markets. a) Cost b) technological c) political d) market e) competitive

competitive

Which Driver does the following scenario fall under? The rush to globalization has resulted in explosive growth in international business. a) Cost b) technological c) political d) market e) competitive

competitive

new entrants Is a general characteristic of which driver a) political drivers b) technological c) market d) cost e) competitive

competitive

An automobile manufacturer decided to enter the European market because if it didn't, then all of the other car companies that were already there would get the business. Which driver is causing internationalization for the manufacturer? a) market b) cost c) political d) competitive

competitive Explanation: Since competition continues to increase in intensity, companies are having to respond to this and determine if they should enter the international market.

Environment involves the forces surrounding and influencing the life and development of the firm and is classified as a) domestic and foreign. b) controllable and uncontrollable. c) representative and democratic. d) primary and secondary.

controllable and uncontrollable. Explanation: International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments—domestic, foreign, and international. In contrast, a firm whose business activities are carried out within the borders of one country needs to be concerned essentially with only the domestic environment.

Which Driver does the following scenario fall under? Businesses can move production or other parts of the value chain business to countries where costs are lower. a) Cost b) technological c) political d) market e) competitive

cost

economies of scale Is a general characteristic of which driver a) political drivers b) technological c) market d) cost e) competitive

cost

which is the most appropriate driver of globalization for the following Economies of scale reduce costs per unit a) political drivers b) technological c) market d) cost e) competitive

cost

The purchase of an existing business in another nation is known as a a) cross-border acquisition. b) greenfield investment. c) strategic alliance. d) home country expansion.

cross-border acquisition. Explanation: The purchase of an existing business in another nation is known as a cross-border acquisition.

A nation that is struggling to remain competitive in the world market may decide to reduce the value of the country's currency relative to other currencies. This process is called currency a) surplus. b) devaluation. c) deficit. d) customization.

devaluation. Explanation: This example suggests that a nation can attempt to regain competitiveness in world markets through currency devaluation, which lowers the value of a nation's currency relative to other currencies and therefore effectively lowers the prices of its exports.

A major portion of the exports from developing countries go to ________ countries; this proportion has been ________. a) developed; increasing b) developing; increasing c) developed; decreasing d) developing; decreasing

developed; decreasing Explanation: A major portion of the exports from developing nations do go to developed countries, but this proportion has declined from 72 percent in 1970 to about 43 percent by 2015 as developing nations participate more extensively in trade with other developing nations.

The two components of foreign investment include portfolio investment and a) exporting. b) importing. c) direct investment. d) government tariffs.

direct investment. Explanation: The distinction between portfolio investments and direct investments has begun to blur, particularly with the growing size and number of international mergers, acquisitions, and alliances in recent years.

Based on the work of Edward Hall, the explicit communicator in a low-context culture is a) direct, unsubtle, and unambiguous: What you say is what you mean. b) ready to act: Communication will happen regardless of cultural differences. c) unprepared and wary: The message is in the context. d) subtle, nuanced and indirect: Meaning accrues through not exactly what is said or done.

direct, unsubtle, and unambiguous: What you say is what you mean. Explanation: The explicit communicator in an LC culture is direct, unsubtle, and unambiguous: What you say is what you mean. There is relatively less subtlety. "Telling it like it is" is understood as a positive trait.

In examining the volume of international trade, the proportion of world exports and imports accounted for by the 10 largest exporting and importing nations in 2016 a) exceeded 50 percent b) was less than 10 percent. c) was approximately one-third. d) was approximately 25 percent.

exceeded 50 percent. Explanation: Table 2.1 presents the world's 10 largest nations in terms of exports and imports of merchandise and of services. The 10 largest exporters and importers collectively account for over half the world's exports and imports.

Nations encounter a trade surplus when the value of a) imports and exports doesn't change. b) exports exceeds the value of imports. c) imports and exports is balanced. d) imports exceeds the value of exports.

exports exceed the value of imports. Explanation: Trade surplus—the amount by which the value of a nation's exports exceeds the value of its imports.

Gentille Manufacturing, based in California, recently purchased a new manufacturing facility and production equipment in Germany that it will use to produce component parts. This purchase is an example of a) importing and exporting. b) economies of scale. c) foreign direct investment. d) intrastate commerce.

foreign direct investment. Explanation: Foreign direct investment refers to direct investments in equipment, structures, and organizations in a foreign country.

General Motors built a facility in Coahuila, Mexico to produce propulsion systems in 1981. What type of investment does this represent? a) cross-border acquisition b) greenfield investment c) internal investment d) exporting

greenfield investment Explanation: This is a greenfield investment since it was built by GM.

Internet Is a general characteristic of which driver a) political drivers b) technological c) market d) cost e) competitive

technological

In January 2006, a Shanghai court said Coffeebux's decision to use the logo and similar sounding name to Javabucks was "within their rights." "clearly malicious." "not unfair." "something that happens often." "purely a coincidence."

"clearly malicious."

When Georgio accepted a job in the U.S.-based subsidiary of his Spanish multinational company, he was surprised to learn that wage rates were a) lower than the national average. b) 30 percent higher than the national average. c) double the national average. d) equal to the national average.

30 percent higher than the national average. Explanation: Additional jobs have been created by foreign investment linked to the globalization of markets and trade, with many of these new jobs being well-compensated. Indeed, wage rates in U.S.-based subsidiaries of foreign multinationals are about 30 percent above the national average.

If the United States and Italy fell into a trade dispute, which form of international law would govern the situation? private litigation civil public

A contract between businesses in two different countries falls under private international law, and public international law governs a dispute between two countries over trade subsidies.

Tran's company has just offered him a position in the London office. He will live and work there for the next two years but retain his U.S. citizenship. Tran is surprised to learn that he must still pay U.S. employment taxes. This is an example of a) international contract enforcement. b) extraterritorial application of laws. c) public international law. d) UK/U.S. arbitration.

A country's attempt to apply its laws to nonresidents and foreigners, and to activities that take place beyond its borders is referred to as the extraterritorial application of laws.

While the United States is often viewed as an individualistic society, the country also has the highest rate of charitable contributions. What is this an example of? Multiple Choice cultural paradox cultural aesthetics ethnocentrism folklore

A cultural paradox represents a contradiction between a culture's values you expect to see based on the use of a framework and what you actually observe.

The People's Choice Awards span the entertainment industry, including pop culture, music, film, and television. This demonstrates the country's Multiple Choice beliefs and values. community consensus. material culture. cultural aethestics.

A culture's aesthetics is expressed in many areas, most directly and intentionally in art, drama, music, folklore, and dance.

Choose the selection that best depicts the current direction of world trade.

A major portion of the exports from developing nations do go to developed countries, but this proportion has declined from 72 percent in 1970 to about 43 percent as developing nations participate more extensively in trade with other developing nations.

An electrical supply company has $25,000 worth of holiday lights inventory that will soon become obsolete due to the seasonal nature of the product. The company decides to sell the inventory at a lower cost in its international market without changing pricing in its domestic market. What type of action is the company taking? VER sanctions quota dumping

A manufacturer may dump products to sell excess production without disrupting prices in its domestic market, as a response to cyclical or seasonal factors (during an economic downturn or at the end of a fashion season, for example), or as a way to increase market share.

The McDonald's "golden arches" that appear on its restaurants, food packaging, and advertising is an example of which type of intellectual property? a) trade name b) trademark c) copyright

A trademark is a shape, color, design, phrase, abbreviation, or sound that stands for a company or its product and that is reserved for that company's sole use.

Country A has a weakening currency, and Country B has stable currency. If both countries produce the same product, what is the most likely effect on trade? Multiple Choice Country A will sell its product at a more competitive price. Country B will sell its product at a more competitive price. Country A will likely sell less product. Country B will likely sell more product.

A weak currency gives nations an advantage because it makes their prices more competitive.

Currency and exchange rate fluctuations can have an influence on trade. Which of the following statements is the most accurate? A weak currency gives that nation an advantage. A strong currency gives that nation an advantage. A weak currency gives other nations an advantage. Currency and exchange rates are perpetually static.

A weak currency gives that nation an advantage. - gives competitive advantage

Nations trade goods if they can produce those goods most efficiently. a) Diamond Model of National Competitive Advantage b) Comparative Advantage c) Differences in Resource Endowments d) Absolute Advantage e) Overlapping Demand f) Mercantilism

Absolute Advantage

Trade restrictions exist in most countries for what industry? manufacturing technology agricultureCorrect energy

Agricultural trade restrictions exist in most countries as a result of political willingness to protect domestic farmers, especially small farmers.

Which statement best explains the trade in services based on international trade?

All regions and essentially all the primary world nations experienced an absolute increase in the dollar volume of their service exports, though the proportion of world exports of commercial services from Latin America, the European Union, Africa, and the Middle East declined since 1980.

International Business a) Business whose activities are carried out across national borders b) Forces originating outside the home country that surround and influence the business c) Unconscious reference to your own cultural values when judging behaviors in a new and different environment d) Either a global or a multidomestic company

Business whose activities are carried out across national borders

A nation trades those goods that it is least inefficient at producing. a) Diamond Model of National Competitive Advantage b) Comparative Advantage c) Differences in Resource Endowments d) Absolute Advantage e) Overlapping Demand f) Mercantilism

Comparative Advantage

The U.S. Foreign Corrupt Practices Act was designed to increase accounting transparency and to drive down consumer prices in the United States. prohibit bribery of foreign officials. increase foreign competition for U.S. goods. punish foreign bribery of U.S. officials.

Congress passed the Foreign Corrupt Practices Act (FCPA) in response to questionable payments by U.S. companies to foreign officials. Key provisions of the act prohibit bribery of foreign officials and set requirements for transparency of accounting transactions.​

Pravat gathered balance sheets and income statements for his meeting with the foreign bank as his company prepared to merge with a foreign affiliate. He was surprised when the banker briefly glanced at the papers and seemed more interested in how long Pravat had worked at the business and where he had received his training. What area of business is being affected by culture in this scenario? Multiple Choice accounting production marketing human resources

Culture affects all business functions. In this scenario, the accounting function is being most affected as Pravat was trying to provide financial information to a bank, but the banker was more interested in Pravat's background.

When Maura moved from Alabama to England for a new job, she was surprised to learn that it was common for employees at the company to be placed in prominent work positions based on their family name rather than earning the position by working their way up the ranks of the company. In this situation, what facet of a company would be most affected by this cultural practice? Multiple Choice production marketing accounting human resources

Culture affects all business functions. In this scenario, the human resource function is being most affected as that area of a company is key to making employee placement decisions.

Which of the elements in Porter's diamond model of national advantage takes into consideration the sophistication of a company's customers? a) Demand conditions b) Factor conditions c) Export conditions d) Government

Demand conditions Explanation: Demand conditions refer to the nature of domestic demand matters, rather than merely the size. If a firm's customers are sophisticated and demanding, the firm will strive to produce high-quality and innovative products and, in doing so, will obtain a global competitive advantage over companies located where domestic pressure is less.

The products traded by a country will be influenced by the strength of related and supporting industries. a) Diamond Model of National Competitive Advantage b) Comparative Advantage c) Differences in Resource Endowments d) Absolute Advantage e) Overlapping Demand f) Mercantilism

Diamond Model of National Competitive Advantage

A nation trades those materials that it has in abundance a) Diamond Model of National Competitive Advantage b) Comparative Advantage c) Differences in Resource Endowments d) Absolute Advantage e) Overlapping Demand f) Mercantilism

Differences in Resource Endowments

Select the most appropriate term for the events listed below. In 2002, the North Dakota Wheat Commission asked U.S. Commerce Department to hit Canadian wheat with duties from 23.7 percent to 37.5 percent after wheat was sold in the United States in 2001 at under U.S. and Canadian market prices. a) Privatization b) Nationalization c) Nontariff Barrier d) dumping e) Terrorism f) Tariff Barrier

Dumping

Match each of the options above to the items below. misuse of activity a) EU Competition Law (harm needs to be shown) b) France (language requirement) c) the United States and the European Union (antitrust or competition law) d) U.S. Tort Law (existence of damage or harm sufficient; no need to prove negligence) e) U.S. Competition Law (harm need not be shown) f) U.S. Product Liability Law (jury-awarded; may be large)

EU Competition Law (harm needs to be shown)

Which statement is accurate regarding international patent rights? The legal rights of patent holders are universally applied. A patent is viewed narrowly as a property right in most countries. In the U.S., a utility patent lasts for 20 years. In the EU, applicants must file separately for a patent in each member country.

Each country administers and handles patents differently. In the United States, a patent is viewed more narrowly as a property right that "excludes others from making, using, offering for sale, or selling the invention" and is divided into three types: utility, design, and plant. In the U.S., a utility patent is for an innovative, useful invention or process, and it gives the patent holder 20-year protection against use by others.

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. high inflation rates Which risk applies Political or Economic?

Economic

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. hostility toward private business Which risk applies Political or Economic?

Economic

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. limits on currency convertibility Which risk applies Political or Economic?

Economic

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. militant labor unions Which risk applies Political or Economic?

Economic

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. unpaid loans Which risk applies Political or Economic?

Economic

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. balance-of-payments deficits Which risk applies Political or Economic?

Economics

Of the arguments against globalization which matches the following? To comply with NAFTA's rules on trade in services, the Bush administration waived U.S. clean air standards which allowed trucks based in Mexico to haul freight on U.S. highways. a) Results across nations and people b) Environment and Health c) Trade creates new jobs, and these tend to be better than the old ones. d) jobs e) Socioeconomic development f) Labor and labor standards

Environment and Health

How are exchange rates used in international trade? a) Exchange rates set the costs of labor. b) Exchange rates indicate which products create an absolute advantage for trading partners. c) Exchange rates are used to devalue property in exchange for goods. d) Exchange rates are used to convert from foreign to domestic currency.

Exchange rates are used to convert from foreign to domestic currency. Explanation: To determine whether it is more advantageous to buy locally or to import, the traders need to know the prices in their own currencies. To convert from foreign to domestic currency, they use the exchange rate.

Uncontrollable Forces a) External forces over which management has no direct control b) Operations of a company outside its home or domestic market c) Interaction between domestic and foreign forces or between sets of foreign environmental forces d) Forces originating in the home country that surround and influence the business's life and development

External forces over which management has no direct control

If a firm needs to maintain tight control over a foreign operation, and there is reason to believe that additional costs through transportation or tariffs would be high, the most effective approach would be a) exporting. b) licensing. c) foreign direct investment.

FDI Explanation: If there are a number of factors at play in a competitive market, and a firm needs to exercise tight control to maximize its market share and earnings, foreign direct investment may be the best approach.

If a firm has valuable know-how that cannot be adequately protected by contracts, and there is reason to believe that additional costs through transportation or tariffs would be high, the most effective approach would be a) exporting. b) licensing. c) foreign direct investment.

FDI Explanation: Protecting a competitive advantage is important to a firm, and if that advantage cannot be protected in a licensing contract, foreign direct investment is the better option.

If a firm's competitive advantage comes from skills and capacities that may be difficult to transfer or protect, and there are reasons to believe that additional costs through transportation or tariffs would be high, the most effective approach would be a) exporting. b) licensing. c) foreign direct investment.

FDI Explanation: Some of the firm's competencies are difficult to transfer to another entity, which would be required in licensing. In that case, foreign direct investment may be the best approach.

Is the following statement true or false? As long as everyone speaks the same language, there will be no misunderstanding. Multiple Choice a) False. From country to country, there are cultural subtleties in the same language that set a slightly different nuance to the end meaning. b) True. One language spoken by all parties will remove confusion and misunderstandings. c) False. People pronounce words differently, sentence structure can vary, and spelling can vary, all confusing the discussion. d) True. There is only one English language with the same language rules. e) False. In an international company, rarely do all employees speak the same language.

False. From country to country, there are cultural subtleties in the same language that set a slightly different nuance to the end meaning.

How do government embassies protect citizens who are in a foreign country? Through its embassy, a government can assert the rights of its citizens and that its laws follow its citizens, no matter where they are (extraterritoriality). Politicians can use embassies to influence how a foreign country's rules are applied to its own nationals. They can orderin the militaryto protect citizens. Government embassies can provide information about political risks and make protests.

Government embassies can provide information about political risks and make protests. Governments maintain embassies in foreign capitals and consulates in larger cities to represent their interests and offer protection to their citizens who are abroad. For example, consular offices and embassies provide information about local political risks, they can help citizens contact family and friends for money transfers if needed, they monitor nationals imprisoned abroad, and in the case of abuse of citizens, they may file protests.

Hall suggests that communication tends to be implicit and indirect in a) low-context cultures. b) Australia. c) the United States. d) high-context cultures.

Hall suggests that communication tends to be implicit and indirect in Explanation: In a high-context culture, much communication is conveyed by context rather than direct verbal interaction. It tends to be implicit and indirect.

Which cultural framework takes into account the entire communication situation, including the spoken language, the speaker's body language, where the conversation takes place, and the order in which the communication takes place? Multiple Choice Kluckhohn and Strodtbeck's cultural orientations Hall's high and low context Hofstede's six dimensions Trompenaars's seven dimensions

Hall's high and low context

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Face-to-face relationships are important

High

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Less written and formal communication

High

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Long-term relationships

High

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Multiple ties and networks

High

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Strong insider/outsider boundaries

High

The masculinity side of Hofstede's dimension represents a preference in society for achievement, assertiveness, and material rewards for success. Its opposite, femininity, stands for a preference for cooperation, modesty, caring, and quality of life. Manolis is recruiting for a new assistant who is balanced in masculinity and femininity characteristics. Who should he hire? a) Sonya is an accountant who enjoys volunteering to do audits and other accounting-related functions at the local food bank. b) Alex is a retired nurse of 20 years who transitioned into an administrative role 2 years ago. Her current supervisor describes her as caring, patient, and accommodating. c) Stephanie has 5 years of executive assistant-level responsibilities in WiTalk and is seeking a new position primarily to earn more money. d) Hurshey enjoys engaging his coworkers in various team-building activities and is seeking greater responsibility and salary.

Hurshey exhibits both feminine, team-building and inclusion, as well as masculine, greater responsibility and power characteristics.

Michelle is concerned with personal stability. He has a high degree of respect for tradition and will go to great lengths to protect his reputation. Which of Geert Hofstede's society social culture characteristics does Michelle best represent? a) power distance b) individualism/collectivism c) pragmatism/normative behavior d) uncertainty/avoidance

In normative societies, concern for personal stability is high. There is respect for tradition. A pragmatic orientation suggests a strong inclination to save and persevere.

International Environment a) External forces over which management has no direct control b) Operations of a company outside its home or domestic market c) Interaction between domestic and foreign forces or between sets of foreign environmental forces d) Forces originating in the home country that surround and influence the business's life and development

Interaction between domestic and foreign forces or between sets of foreign environmental forces

Why is arbitration often a preferred method of resolving international disputes such as cybersquatting? Multiple Choice It is usually quicker and less expensive. It is enforced by the UN's International Court of Justice. Arbitration guarantees that all parties will be satisfied with the outcome. Certified arbitrators are available in every country.

International business people often agree by stipulating in their contract that any disputes will be resolved by arbitration rather than by litigation. Arbitration is usually quicker, less expensive, and more private than litigation, and it is usually binding on all parties.​

The government of a country may decide it wants to extract more money from a business, particularly if the government believes the company is concealing profits. What measure might it take to achieve this? It could erect trade barriers. It could privatize the business. It could enact isolationism. It could nationalize the business.

It could nationalize the business. When governments nationalize private firms, taking them from private to public ownership, one reason may be to extract more money from the firms if the government suspects they are concealing profits.

What is grease money? It is money paid by a customs agent to a business in order to attract more business. It is a facilitating payment made to expedite nondiscretionary official actions. It is a payment requested to show friendship. It is a payment made by possible contractors to obtain business, often disguised as a gift. Similar to giving the Maitre d' hotel a tip, grease gets you what you want from the government official.

It is a facilitating payment made to expedite nondiscretionary official actions. Exp: Grease makes the wheels that are going to turn eventually turn sooner and more smoothly. It is a facilitating payment made solely to expedite nondiscretionary official actions like customs clearance.

What legal advantage does the international business community perceive in conducting business in Hong Kong compared to other regions in China? Multiple Choice It follows a religious law tradition. It strictly adheres to civil law. It operates according to the common law system. It has a less developed legal system.

It operates according to the common law system.

How does a variable levy affect domestic producers? It lowers the cost of an imported good compared to the cost of the domestic good. It eliminates any competition from imported goods. It raises the cost to develop a domestic good compared to the cost of developing an imported good. It prevents an imported good from being priced lower than the domestic good.

It prevents an imported good from being priced lower than the domestic good. Exp: A variable levy guarantees that the market price of the import will be the same as that of domestically produced goods; the European Union has used this levy for imported grains.

Which of the following is not a component of "free" or "fair" trade? a) limiting foreign investment b) having open discussions with trading partners pertaining to trade agreements c) enforcing protection of intellectual property rights d) supporting anti-dumping restrictions

Limiting foreign investments is not considered "free" or "fair" trade.

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Interpersonal connections of shorter duration

Low

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Knowledge is codified and accessible

Low

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Knowledge is situational-relational

Low

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. People play by external rules

Low

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Sequencing of activities

Low

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Task-centered

Low

Select whether each general characteristic listed below is a High Context Characteristic or a Low Context Characteristic. Verbally explicit information

Low

Mexico and Canada a) direction of trade b) Trade Surplus c) Major U.S. Trading Partner d) Regionalization of Trade e) Trade Deficit f) Relevance of Major Trading Partners for Managers

Major U.S. Trading Partner

In many cultures, individualism and collectivism have a significant impact on employees in the workplace. According to Hofstede's Big Idea, individualism is focused on each individual acting on his or her own and making their own choices, whereas collectivism views the group as the primary entity, with the individuals lost along the way. From the following, select the statement that best describes individualism. a) Mark was recently hired at WiTalk and plans to stay with the company for 5 years to gain experience that will enable him to get a better job with more pay. b) Michelle is concerned with personal stability. He has a high degree of respect for tradition and will go to great lengths to protect his reputation. c) Vasily is a senior executive who has moved up through the ranks over the past 18 years. He is committed to his company's success. d) Anna is an IT analyst who works in a team to research and develop new software.

Mark is only interested in gaining experience to move forward with a new career with better pay, which benefits himself only.

National welfare is promoted by the accumulation of precious metals. a) Diamond Model of National Competitive Advantage b) Comparative Advantage c) Differences in Resource Endowments d) Absolute Advantage e) Overlapping Demand f) Mercantilism

Mercantilism

As you review Hall's high and low context framework, which statement is accurate of the culture in the new assignment? a) Long-term relations are essential to success. b) Fewer written instructions will be needed. c) More explicit verbal communication will be important. d) Knowledge tends to be situational and relative.

More explicit verbal communications will be important.

What does Trompenaars' dimension of individualism vs. communitarianism suggest to the Chinese manager? a) The United States and China rank similarly on these dimensions. b) The Chinese manager should implement a group-based reward system to encourage goodwill. c) Employees at the fish processing plant should not be evaluated on individual productivity. d) Motivation activities in the new culture should be focused on the individual.

Motivation activities in the new culture should be focused on the individual.

Select the most appropriate term for the events listed below. In 2007, the Venezuelan military occupied oil fields across the eastern Orinoco Basin, while workers overtook the fields after midnight. a) Privatization b) Nationalization c) Nontariff Barrier d) dumping e) Terrorism f) Tariff Barrier

Nationalization

Nationalization and privatization are implemented by big business. consumers. international affiliates. the government.

Nationalization takes a privately held entity public, whereas privatization takes a publicly-held entity private. These activities are implemented by the government.

Select the most appropriate term for the events listed below. In 1983, the French government directed all Japanese VCRs for customs inspection in Poitiers, miles from their port of entry. a) Privatization b) Nationalization c) Nontariff Barrier d) dumping e) Terrorism f) Tariff Barrier

Nontariff Barrier

Governments may nationalize private firms in order to decrease exports to balance the balance of payments. assist firms in making greater profits to boost the economy.Incorrect follow an economic or political ideology.Correct learn about business development experientially.

One motivation for nationalization is to follow an economic or political ideology.

Patterns of trade reflect the extent to which nations have similar income levels. a) Diamond Model of National Competitive Advantage b) Comparative Advantage c) Differences in Resource Endowments d) Absolute Advantage e) Overlapping Demand f) Mercantilism

Overlapping Demand

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. Revolutions Which risk applies Political or Economic?

Political

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. attitude toward home country Which risk applies Political or Economic?

Political

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. country Which risk applies Political or Economic?

Political

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. coups Which risk applies Political or Economic?

Political

Select the most appropriate type of evaluation a manager must make when conducting a country risk assessment for each item below. wars Which risk applies Political or Economic?

Political

A cotton grower in India has a contract with a clothing manufacturer in Bangladesh. The relationship between these two companies is governed by international treaties. international protocols. public international law. private international law.

Private international law includes laws governing the transactions between individuals and companies that cross international borders. A contract between businesses in two different countries falls under private international law.

Select the most appropriate term for the events listed below. U.S. military in Iraq hires companies to provide food and catering supplies to U.S. troops in Iraq. a) Privatization b) Nationalization c) Nontariff Barrier d) dumping e) Terrorism f) Tariff Barrier

Privatization

A significant amount of trade occurs within trade areas. a) direction of trade b) Trade Surplus c) Major U.S. Trading Partner d) Regionalization of Trade e) Trade Deficit f) Relevance of Major Trading Partners for Managers

Regionalization of Trade

Which of the elements in Porter's diamond model of national advantage takes into consideration companies that locate near the suppliers they need to produce their product? a) Factor conditions b) Demand conditions c) Firm strategy, structure, and rivalry d) Related and supporting industries

Related and supporting industries Explanation: Related and supporting industries: Firms in an industry, with their suppliers, their suppliers' suppliers, and so forth, tend to form a cluster in a given location, providing a network of suppliers and subcontractors and a commercial infrastructure.

Favorable business climate exists in importing nation. a) direction of trade b) Trade Surplus c) Major U.S. Trading Partner d) Regionalization of Trade e) Trade Deficit f) Relevance of Major Trading Partners for Managers

Relevance of Major Trading Partners for Managers

Fundamental documents include Qur'an and Sunnah a) civil b) common c) Religion

Religion

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. Christianity/islam a) aesthetics b) Religion c) Societal organization d) language and communication

Religion

Why is it important for businesses to have a basic understanding of the religious tenets associated with another culture? Multiple Choice a) Religious tenets are common among the major religions and are practiced widely. b) Religious tenets often control government actions. c) Religious tenets affect the beliefs and attitudes of individuals. d) Religious tenets are inborn and do not change.

Religious tenets affect the beliefs and attitudes of individuals.

Of the arguments against globalization which matches the following? The promise of export-led growth has failed to materialize in some parts of the world, especially in parts of Latin America and sub-Saharan Africa. a) Results across nations and people b) Environment and Health c) Trade creates new jobs, and these tend to be better than the old ones. d) jobs e) Socioeconomic development f) Labor and labor standards

Results across nations and people

Why are sanctions an effective way to restrict trade? Multiple Choice Sanctions inflict economic damage on a nation. Sanctions ruin relationships between countries. Sanctions make countries follow rules and regulations. Sanctions cause countries to produce less goods.

Sanctions inflict economic damage on a nation. Explanation: Restrictions encourage countries to modify their behavior.

If Mary pays a bribe, what is the most risky outcome for her business, assuming it is a grease bribe? Multiple Choice She'll be vulnerable for violating Thai anticorruption law. She'll have a friend for life in the customs agent. She'll have to find a way to show it in her books, and she'll have to face her staff. She signals her willingness to pay going forward, and this is a vulnerability. She'll be out of pocket $2,000 because Silk string cannot show this expenditure in its books.

She signals her willingness to pay going forward, and this is a vulnerability.

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. Family a) aesthetics b) material culture c) Societal organization d) language and communication

Societal organization

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. Social media a) aesthetics b) material culture c) Societal organization d) language and communication

Societal organization

Select the most appropriate term for the events listed below. The U.S. government charges $0.54 per gallon on imported ethanol. a) Privatization b) Nationalization c) Nontariff Barrier d) dumping e) Terrorism f) Tariff Barrier

Tariff Barrier

Select the most appropriate term for the events listed below. In 2011, Tunisian protests forced out the president, Ben Ali. a) Privatization b) Nationalization c) Nontariff Barrier d) dumping e) Terrorism f) Tariff Barrier

Terrorism

The Alien Tort Statute allows non-U.S. nationals to file claims against other foreign nationals for violation of U.S. Equal Employment Opportunity Commission (EEOC) law. file lawsuits in the United States courts for alleged violations of international law. to sue in the United States courts for residency in the United States. file claims in the United States courts for alleged violations of domestic laws.

The Alien Tort Statute allows non-U.S. nationals to file lawsuits in the United States courts for alleged violations of international law, including human rights violations, even when the defendant has no ties to the United States. This is an example of extraterritorial application of laws.

The UN Convention against Corruption (UNCAC) has been signed by 186 countries plus the EU. What does it do? It only covers businesses operating in the EU or Britain. It leaves recovery of assets up to the individual countries. It covers trading in official influence. It only addresses bribery.

The UNCAC goes beyond bribery to address a broader range of corruption, such as general abuse of power and trading in official influence, as well as the recovery of assets from officials accused or convicted of engaging in corruption.

________blank have been pressing hard for stricter policies on intellectual property rights. Multiple Choice The WTO and the U.S. government The WTO and foreign governments China and the United States The magazine and print media China and Japan

The WTO and foreign governments

Under what legal system does a judge actively question the prosecution, the defense, and witnesses during the proceedings, and then ultimately issue a decision based on codified law? common law civil law religious law autocratic law

The civil law approach is based on codification. The role of the judge is to apply codified law, and judges actively question all the participants in proceedings in order to issue a decision.

The fact that almost everyone in the United States self-identifies as middle class suggests that the United States a) measures low on the power distance dimension. b) the economy has failed to support an aristocracy. c) is a successful meritocracy. d) measures low on the uncertainty avoidance dimension.

The fact that almost everyone in the United States self-identifies as middle class suggests that the United States Explanation: Power distance is a measure of social inequality; it focuses on how much inequality seems right. The United States measures low on this dimension.

the selection that best depicts world trade in merchandise in 2019.

The largest merchandise exporters in 2019, in order were China, the United States, Germany, the Netherlands, and Japan.

What should managers be aware of regarding the relationship between a risk analysis and the time period required for satisfactory return on investment opportunities? Multiple Choice a) Risk analysis is only useful for long-term opportunities in other countries. b) The longer the time horizon, the more reliable the risk analysis. c) A brief time horizon for investment return does not require risk analysis. d) The longer the time horizon, the less reliable the risk analysis.

The longer the time horizon, the less reliable the risk analysis. Explanation: Problems often increase over the time of the investment and cannot be resolved. The longer the time horizon, the less reliable the risk analysis can be.

What is the best example of the harmonization of international law? Incoterms of the International Chamber of Commerce IP index of the Global Intellectual Property Center China's Anti-Monopoly Act Madrid Agreement of 1891

There are some areas where progress has been made harmonizing international law. The 11 Incoterms of the International Chamber of Commerce and its Uniform Rules and Practice on Documentary Credits are almost universally accepted.

To be considered a currency manipulator, there Multiple Choice a) are specific criteria that must be present to define a nation as such. b) are numerous suspicions by other nations to define a nation as such. c) is a very definite increase in a nation's currency valuation. d) is a very definite decrease in a nation's currency valuation.

There are specific criteria that must be present to define a nation as a currency manipulator.

Import duty brings the cost of the foreign product up to the cost of the domestically produced product. a) To protect infant industries b) To ensure fair competition c) To impose sanctions d) To provide for national defense e) To provide retaliation

To ensure fair competition

Some trade restrictions are imposed to inflict economic damage on other nations as a way of punishing them or to encourage them to change their behavior. a) To protect infant industries b) To ensure fair competition c) To impose sanctions d) To provide for national defense e) To provide retaliation

To impose sanctions

Firms need protection from imports until they obtain the required investment capital, train the labor force, master production techniques, and achieve economies of scale. a) To protect infant industries b) To ensure fair competition c) To impose sanctions d) To provide for national defense e) To provide retaliation

To protect infant industries

Certain industries need protection from imports because these industries are vital to security and must be kept operating even though they are not competitive with foreign suppliers. a) To protect infant industries b) To ensure fair competition c) To impose sanctions d) To provide for national defense e) To provide retaliation

To provide for national defense

Certain industries facing import restrictions may demand retaliation restrictions. a) To protect infant industries b) To ensure fair competition c) To impose sanctions d) To provide for national defense e) To provide retaliation

To provide retaliation

U.S. trade relationship with China a) direction of trade b) Trade Surplus c) Major U.S. Trading Partner d) Regionalization of Trade e) Trade Deficit f) Relevance of Major Trading Partners for Managers

Trade Deficit

The value of exports exceeds the value of imports. a) direction of trade b) Trade Surplus c) Major U.S. Trading Partner d) Regionalization of Trade e) Trade Deficit f) Relevance of Major Trading Partners for Managers

Trade Surplus

Match each of the options above to the items below. per se application a) EU Competition Law (harm needs to be shown) b) France (language requirement) c) the United States and the European Union (antitrust or competition law) d) U.S. Tort Law (existence of damage or harm sufficient; no need to prove negligence) e) U.S. Competition Law (harm need not be shown) f) U.S. Product Liability Law (jury-awarded; may be large)

U.S. Competition Law (harm need not be shown)

punitive damages a) EU Competition Law (harm needs to be shown) b) France (language requirement) the United States and the European Union (antitrust or competition law) c) U.S. Tort Law (existence of damage or harm sufficient; no need to prove negligence) d) U.S. Competition Law (harm need not be shown) e) U.S. Product Liability Law (jury-awarded; may be large)

U.S. Product Liability Law (jury-awarded; may be large)

strict liability a) EU Competition Law (harm needs to be shown) b) France (language requirement) the United States and the European Union (antitrust or competition law) c) U.S. Tort Law (existence of damage or harm sufficient; no need to prove negligence) d) U.S. Competition Law (harm need not be shown) e) U.S. Product Liability Law (jury-awarded; may be large)

U.S. Tort Law (existence of damage or harm sufficient; no need to prove negligence)

The accounting standards followed by U.S. companies are guided by the SEC. the AACSB. the Fed. the IASB.

U.S. accounting practice is guided by the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) and follows standards known as generally accepted accounting principles (GAAP).

WIPO and TRIPS represent patent harmonization agreements in SE Asia and the EU, respectively. WTO and UN agreements on corruption. anti-counterfeiting agreements in Korea and North America, respectively. UN and WTO agencies or programs that focus on IP.

UN and WTO agencies or programs that focus on IP.

What is the COVAX initiative? a) a collaboration of nations to develop and disperse vaccines for COVID-19 Correct b) a U.S.-funded plan to increase exports until there is a balance of trade c) a World Bank program supporting developing nations d) a United Nations program mandating that countries that receive financial support must meet specific goals

a collaboration of nations to develop and disperse vaccines for COVID-19 Explanation: The COVAX initiative involved the collaboration of over 170 nations to help develop and disperse vaccines at an unprecedented speed and scale to address the COVID-19 pandemic and to facilitate equitable access to treatment for populations in less prosperous nations of the world.

E. T. Hall suggests that to learn another culture, you have to undergo extensive training or spend a) a considerable time and money taking guided tours in the other culture. b) time studying the language of the other culture. c) considerable time with people of the other culture, but perhaps outside that culture. d) a lifetime in the other culture.

a lifetime in the other culture. Explanation: Hall suggested that there are two ways to learn another culture: either spend a lifetime within a culture or undergo an extensive training program on the culture.

Which statement about the effects of globalization is accurate? a) Life expectancy in the developing world has nearly doubled since WWII. b) Citizens from more globally integrated countries have, on average, fewer civil liberties and political rights. c) International trade results in less than $1 trillion annually in the U.S. d) In economically advanced countries, most of the benefits from international trade go to the upper-income segments of the population.

a) Life expectancy in the developing world has nearly doubled since WWII.

Which of the following are the main national security issues of concern? a) cybersecurity protection of strategically vital industries and outside influence of elections b) dumping, theft of intellectual property, and foreign nations purchasing EU businesses c) free and fair trade and the degradation of the EU trading block currency exchange, inflation, and banking industry relocation d) currency exchange, inflation, and banking industry relocation

a) cybersecurity protection of strategically vital industries and outside influence of elections

Tariffs placed on products from another country may bring in more money to the government of the country that initiated the tariffs, but they may hurt consumers in that country in the form of higher prices for goods. This demonstrates how forces in the foreign environment a) have different values. b) can be difficult to assess. c) are interrelated. d) are unique.

a) have different values. Explanation: Even though the kinds of forces in the two environments are identical (tariffs), their values often differ widely, and at times they are completely opposed to each other.

What long-term strategy is employed by the UN Security Council in order to reduce kidnappings of businesspeople and humanitarian aid workers? Multiple Choice a) increase intergovernmental cooperation b) establish a humanitarian ransom fund c) encourage political instability in order to hasten change d) restrict international business expansion

a) increase intergovernmental cooperation Explanation: In 2019, the UN Security Council reaffirmed its commitment to reduce the payment of ransoms and thus financial support of terrorists through the adoption of a resolution calling on governments to cooperate to reduce kidnapping incidents through exchange of information, coordinated financial tracing and seizing of ransom assets, and collaborated law enforcement to reduce the instability that leads to kidnapping.

The Sarbanes-Oxley Act was passed in the United States in response to human rights violations in Europe. deceptive marketing practices in the service industry. accounting scandals in the corporate world. consumer requests for cleaner air standards.

accounting scandals in the corporate world.

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. color of mourning a) aesthetics b) material culture c) Societal organization d) language and communication

aesthetics

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. music and folklore a) aesthetics b) material culture c) Societal organization d) language and communication

aesthetics

Government protection of economic activities is a recent responsibility of government. an historical function of government.Correct a socialist characteristic. stronger in democracies.

an historical function of government. In addition to fostering a stable, predictable context for business, governments, whatever their ideology, have historically functioned to protect the economic activities of their citizens—including farming, mining, manufacturing, and the delivery of services—within their area of control.

The food and clothing associated with a particular culture are examples of Multiple Choice artifacts. context. values. pragmatism.

artifacts

Match each of the options above to the items below. trade obstacle, nontariff a) EU Competition Law (harm needs to be shown) b) France (language requirement) the United States and the European Union (antitrust or competition law) c) U.S. Tort Law (existence of damage or harm sufficient; no need to prove negligence) d) U.S. Competition Law (harm need not be shown) e) U.S. Product Liability Law (jury-awarded; may be large)

b) France (language requirement)

An important function of a stable government is to Multiple Choice a) limit economic competition within its borders. b) protect citizens and businesses from unfair competition. c) guarantee regulatory stasis. d) acquire and nationalize most businesses.

b) protect citizens and businesses from unfair competition. Explanation: Governments, whatever their ideology, have historically functioned to protect the economic activities of their citizens. This includes protection from unfair competition.​

Role of judge is to apply codified law a) civil b) common c) Religion

civil

Judge is charged with interpreting law, tradition, and custom in light of case being heard a) civil b) common c) Religion

common

which is the most appropriate driver of globalization for the following New businesses, many from newly industrialized and developing countries, have entered world markets. a) political drivers b) technological c) market d) cost e) competitive

competitive

Soejin has written a cookbook. What form of legal protection can he obtain for his book? trade name copyright trademark patent

copyright

A company made the decision to export its products abroad to increase its sales and enable economies of scale in production. Which driver is most impacting the company's decision to export? a) political drivers b) technological c) market d) cost e) competitive

cost Explanation: Going abroad, whether by exporting or by producing overseas, can frequently lower the cost of goods sold. Increasing total sales by exporting not only will reduce research and development (R&D) costs per unit but also will make other economies of scale possible. This demonstrates a cost driver, but it is also a market driver.

In a certain European country, the domestic airlines receive preferential treatment over foreign airlines in terms of gate assignments and airport counter locations. Which NTB does this illustrate? standards customs and other administrative procedures direct government participation in trade transshipping

customs and other administrative procedures When serving international markets, airlines face a number of situations in which the national airline receives preferential treatment, such as in the provision of airport services, the allocation of airport counter locations, and the allowed number of landing slots. These are discriminatory administrative procedures.

Tesla recently built a factory in Shanghai to build and sell cars in China. This demonstrates the concept of a) foreign acquisition. b) exporting. c) importing. d) foreign direct investment.

d) foreign direct investment. Explanation: Foreign direct investment (FDI) refers to direct investments in equipment, structures, and organizations in a foreign country at a level sufficient to obtain significant management control.

Under Prime Minister Cameron, the British government sold the Royal Mail; shares can now be purchased on the London Stock Exchange. This is an example of Multiple a) exppropriation b) centralization c) nationalization d) privatization.

d) privatization. Explanation: The UK government continues to privatize. It sold the Royal Mail in October 2013 and you can buy shares of Royal Mail on the London Stock Exchange.

More than half of exports from developing countries go to developed countries. a) direction of trade b) Trade Surplus c) Major U.S. Trading Partner d) Regionalization of Trade e) Trade Deficit f) Relevance of Major Trading Partners for Managers

direction of trade

Retaliation is usually an emotional response of one nation as a result of a ban or trade restriction placed by another nation. What are two main causes of retaliation between countries? Multiple Choice dumping and subsidies taxes and fines tariffs and barriers quotas and restraints

dumping and subsidies An example of retaliation is the ban by the Russian Federation on imports of hormone-treated chicken from the United States because it considers the use of hormones in animals as a health hazard.

Having greater global mind-set and cultural sensitivities is helpful for all the following reasons except a) to overlook and not negatively react to faux pas or awkwardness due to cultural misunderstandings. b) to understand prospective markets and employee pools in which one may work and do business. c) to understand the company's big picture and all complexities of the differing cultural interactions. d) to be able to maneuver through cultural miscommunication. e) to have global sensitivities that give one a far weaker position in the negotiating process.

e) to have global sensitivities that give one a far weaker position in the negotiating process.

What is the general motivation behind business-related cybercrime? a) limit international globalization b) cause harm to individuals c) economic gain d) embarrass or punish a firm or its management

economic gain Explanation: Business-targeted cybercrime can cause harm to an entire organization with a few keystrokes; the goal tends to be economic gain, and any harm to individuals is incidental.

Kyle worked in his company's international office in Indonesia for many years. During his time there, political unrest caused many U.S. citizens, like Kyle, to have questions about his safety. What do governments put in place to represent their citizens in situations like this? congress people embassies judges legislatures

embassies How can a government protect its citizens when they are abroad? Governments maintain embassies in foreign capitals and consulates in larger cities to represent their interests and offer protection to their citizens who are abroad. For example, consular offices and embassies provide information about local political risks.

The United States has imposed trade restrictions on many of Iran's major industries as a political response to Iranian aggression. The purpose of these trade restrictions is to ensure fair competition. encourage behavior change. protect domestic jobs. retaliate for similar restrictions.

encourage behavior change. Explanation: Some trade restrictions are imposed to inflict economic damage on other nations, as a way of punishing them or otherwise encouraging them to modify their behavior. However, sanctions seldom achieve their goal of forcing change in the targeted country.

A country that can sell its products at a lower cost because it has lower standards for emissions from manufacturing facilities is making use of subsidy dumping. environmental dumping. social dumping. predatory dumping.

environmental dumping. Environmental dumping occurs when an exporter can sell at lower costs due to the country's lax environmental standards.

During discussions with the foreign affiliate, Michael realized that his team felt U.S. production standards were superior and team members from the foreign affiliate felt production standards in their home country of Germany were superior. Each team is demonstrating a) aesthetics. b) ethnocentricity. c) conversational distance. d) artifacts.

ethnocentricity

If a product is bulky or heavy, transportation costs increase, and unless the product has an extremely high value-to-weight ratio, the least effective strategy would be a) exporting. b) licensing. c) foreign direct investment.

export Explanation: Transportation costs of heavy or bulky products add to production costs, and it becomes unprofitable to ship those products over a long distance.

For a number of different reasons, a government may impose tariffs. When these add significantly to the cost of the goods, consumers might not want or be able to purchase a firm's products. Under these conditions, the least effective strategy would be a) exporting. b) licensing. c) foreign direct investment.

exporting Explanation: Governments may want to prohibit certain goods from entering a country including environmental safety, public policy, or many other reasons. They may also wish to protect their own industries. A high tariff barrier can make goods cost-prohibitive, and in these cases, exporting is not an effective way to enter that country's market.

The EU applies its competition policy within the EU and applicant states. within the EU and other European nations. only within EU. extraterritorially.

extraterritorially.

The Smoot-Hawley Tariff Act was the result of lobbying efforts by which group? service providers military groups manufacturers farmers

farmers Explanation A classic example of the harm tariffs can cause is the Smoot-Hawley Tariff Act in the United States. In the late 1920s, declining economic fortunes led U.S. farmers and producers to lobby Congress for tariff protection. A trade war followed that engaged most of the world's economies. World trade plummeted from $5.7 billion in 1929 to $1.9 billion in 1932, unemployment skyrocketed, and the world entered a decade-long economic depression to which Smoot-Hawley contributed.

International business differs from domestic business in that a firm operating across borders must deal with the forces associated with which three kinds of environments? a) initial, secondary, primary b) geographic, political, economic c) multicultural, ethnocentric, stereotypical d) foreign, domestic, international

foreign, domestic, international Explanation: International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments—domestic, foreign, and international. In contrast, a firm whose business activities are carried out within the borders of one country needs to be concerned essentially with only the domestic environment.

An opponent of globalization would state that a) globally integrated countries spend more on public education, especially in developing countries. b) globalization has had harmful effects on labor and labor standards. c) countries that have rejected globalization are among the most advanced nations of the world. d) globalization has increased the proportion of people in developing countries who live on $1.25 per day or less.

globalization has had harmful effects on labor and labor standards. Explanation: globalization has had harmful effects on labor and labor standards.

The legal system of a country includes local laws that are interpreted for federal use. governing principles, legislation and regulations. laws and their interpretation by citizens, but not noncitizens. a folkways, rules, and regulations.

governing principles, legislation and regulations.

Legal actions to enforce antitrust or competition laws are usually brought by consumers against business. business against government. government against business. government against government

government against business.

A variable levy exists when a country guarantees that the market price of an import will be the same as that of domestically produced goods. allows one importer to pay a lower tariff than another importer for the same type of goods or services. creates a tariff that requires a percentage of the entire invoice value be paid on imports. removes expected tariffs based on supply and demand for a good or service.

guarantees that the market price of an import will be the same as that of domestically produced goods.

The International Organization for Standardization (ISO), the International Telecommunications Union (ITU), and the International Electrotechnical Commission (IEC) all promote a) union membership in fields that are technology intensive. b) harmonization in technology-related fields through standards. c) harmonization in international accountancy. d) shared bankruptcy standards across the globe.

harmonization in technology-related fields through standards.

A company was found guilty of price fixing, and even though it could not be proven that there was actual harm caused, the act was considered illegal per se. This means that the act was legal regardless of judicial decree. only illegal in the United States. only illegal outside of the United States. illegal in and of itself.

illegal in and of itself.

Which of Hofstede's dimensions reflects the idea that in the United States it is more common to seek personal gratification? a) masculinity vs. femininity b) indulgence vs. restraint c) power distance d) uncertainty avoidance

indulgence vs. restraint

Katerina grew up in eastern Europe but moved to New York after college. Compared to her friends that stayed in Europe, she enjoys much more freedom with her time and is able to enjoy leisure activities and be active in her career. Which of Hofstede's dimensions does this demonstrate? a) uncertainty avoidance b) masculinity vs. femininity c) pragmatic vs. normative d) indulgence vs. restraint

indulgence vs. restraint Explanation: The dimension of indulgence vs. restraint is about happiness and a culture's tendency to allow relatively free gratification of human desires or suppress human drives.

A government that makes radical changes to existing policies is demonstrating communism. democracy. stability. instability.

instability.

What is an example of an external force that represents financial factors affecting a business? a) employee salaries b) interest rates c) domestic laws d) geographic location

interest rates Explanation: Interest rates are an example of a financial factor that acts as an external force on a business.

Rhonda grew up in the U.S. and had never really given much thought to climate change, assuming that people could control nature. But then she moved to Sweden, a country that is leading the way in global climate change rankings. Now she believes that it is important to work with the environment, not try to control it. Which of Trompenaars's seven dimensions is described? a) internal vs. external direction b) universalism vs. particularism c) achievement vs. ascription d) specific vs. diffuse

internal vs. external direction Explanation: In internal-direction cultures, people believe they control nature. In external-direction cultures, they believe the natural world controls them and they need to work with their environment.

The theory that to obtain a higher return on its investment, a firm will transfer its superior knowledge to a foreign subsidiary that it controls, rather than sell it in the open market is known as a) dynamic capabilities theory. b) internalization theory. c) internationalization theory. d) strategic behavior theory.

internalization theory. Explanation: The theory that to obtain a higher return on its investment, a firm will transfer its superior knowledge to a foreign subsidiary that it controls, rather than sell it in the open market is known as internalization theory.

The construction industry has joined the ranks of other industries and now carries out business across national borders. In other words, the construction industry has become a(n) a) domestic affiliate. b) international affiliate. c) foreign-owned company. d) international business.

international business. Explanation: An international business is a business that is carried out across national borders.

A bicycle designer and manufacturer is headquartered in Illinois. It does business in the United States and exports to Europe and South America. This company is an example of a(n) a) domestic corporation. b) global partnership. c) international company. d) foreign subsidy.

international company. Explanation: An international company has operations in multiple nations. International companies may not have any investment in nations other than their home nation, which might be the case for a company that is only involved in exporting and selling its goods or services in other nations.

General characteristic of technological driver

internet

Of the arguments against globalization which matches the following? Trade creates new jobs, and these tend to be better than the old ones. a) Results across nations and people b) Environment and Health c) Trade creates new jobs, and these tend to be better than the old ones. d) jobs e) Socioeconomic development f) Labor and labor standards

jobs

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. facial expressions a) aesthetics b) material culture c) Societal organization d) language and communication

language and communication

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. gestures a) aesthetics b) material culture c) Societal organization d) language and communication

language and communication

The most obvious cultural distinction a company must take into account when deciding to undertake international business is a) finance. b) aesthetics. c) language. d) religion.

language. Explanation: Probably the most obvious and distancing cultural distinction for newcomers to international business is language, both spoken and unspoken.

Patent trolls are lawyers and investors who buy patents mistakenly granted mostly to failed companies, and then try to cash in on them. the organizing system for patent review that is kept internationally by Organisation for Economic Co-operation and Development (OECD). a record of all patents, recorded by the UN. the numerical controls issued on patents, standardized by the Paris Convention.

lawyers and investors who buy patents mistakenly granted mostly to failed companies, and then try to cash in on them.

If a firm's know-how, skills, and capabilities can be protected by contract, and if tight control over foreign operations is not vital to remain competitive, and there are reasons to believe that additional costs through transportation or tariffs would be high, the most effective approach would be a) exporting. b) licensing. c) foreign direct investment.

licensing Explanation: Under the right conditions, licensing offers the firm a very attractive approach. All of the conditions mentioned in the question should be met.

Patent trolling is a process of legal research that uncovers obscure, deceased patent holders and liberates their inventions. recording and registering of patents in foreign countries to protect the firm's IP. searching out patents that have expired and negotiating their replacements. looking for ways to exploit patent protection laws.

looking for ways to exploit patent protection laws.

Which Driver does the following scenario fall under? Businesses can build a direct presence in foreign markets. a) Cost b) technological c) political d) market e) competitive

market

Which Driver does the following scenario fall under? Companies expand abroad to protect their home market by establishing operations where key customers are located or by following large customers into new markets. a) Cost b) technological c) political d) market e) competitive

market

saturated home market Is a general characteristic of which driver a) political drivers b) technological c) market d) cost e) competitive

market

which is the most appropriate driver of globalization for the following Finding that the home market is saturated a) political drivers b) technological c) market d) cost e) competitive

market

An advertising company based in Toronto decided to establish an operation in France because it was concerned that its competition would try to take over its clients in Europe, which represents 65 percent of its business. Which type of driver is responsible for this decision to go international? a) political b) cost c) market d) technological

market Explanation: A company that establishes a foreign operation to maintain the majority of its business is being affected by a market driver.

When a supplier to an original equipment manufacturer (e.g., a battery manufacturer supplying an automobile producer) follows its major customer to a new country, it is an example of a ________ driver of international business activity. a) political technological b) market c) technological d) cost

market Explanation: Suppliers to original equipment manufacturers (battery manufacturers supplying automobile producers) often follow their large customers, reflecting a market driver for internationalization. These suppliers have an added advantage in that they are moving into new markets with a guaranteed customer base.

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. classical theater a) aesthetics b) material culture c) Societal organization d) language and communication

material culture

Select the most appropriate category for the examples related to aesthetics, material culture, language and communication, and social organizations. cooking a) aesthetics b) material culture c) Societal organization d) language and communication

material culture

Compared to 1980, service exports in 2017 can best be described as a) struggling to flourish based on government restrictions. b) decreasing due to more international corporations. c) lower than they were in 1980. d) more than 15 times larger.

more than 15 times larger. Explanation: The level of service exports worldwide grew from $396 billion in 1980 to $6.1 trillion in 2019. This means that services exports in 2019 were 15.5 times larger than they were in 1980.

Which of Trompenaars's seven dimensions is concerned with how members of a culture express emotions? Multiple Choice individualism vs. communitarianism universalism vs. particularism neutral vs. affective specific vs. diffuse

neutral vs. affective (deals with how people express emotions)

Countervailing duties are put in place to avoid import tariffs. balance trade agreements. offset the effects of a subsidy. encourage dumping efforts.

offset the effects of a subsidy.

A global mindset is a set of skills that is evidence of... a) an openness to diversity and an ability to work across cultural borders. b) an ability to think in the big picture. c) an inclination to learn languages quickly and enjoy crossing cultural borders. d) the belief that one's own culture is superior to other cultures.

openness to diversity and an ability to work across cultural borders. Explanation: A global mindset is an openness to diversity along with an ability to pull ideas together across boundaries created by that diversity. This ability to synthesize across diversity requires a willingness to deal with complexity.

The forces in the foreign environment differ from the domestic environment in that they originate a) outside the firm's home country. b) in the firm's home country. c) in only the host country. d) concurrently in the home and host country.

outside the firm's home country. Explanation: The foreign environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm. The forces in the foreign environment are the same as those in the domestic environment except that they occur outside the firm's home country.

To thrive in the international business environment, one must understand that a) people perceive the world similarly when from the same socioeconomic class. b) people from other cultures and other countries will perceive situations and their importance differently. c) people are all the same no matter where they are from. all upper management think and behave very similarly in different companies. d) every person is unique and thus all people must be addressed uniquely.

people from other cultures and other countries will perceive situations and their importance differently.

Which Driver does the following scenario fall under? Many businesses have gained access to combined markets by exporting to or producing in the area. a) Cost b) technological c) political d) market e) competitive

political

preferential trade agreements and privatization of industry Is a general characteristic of which driver a) political drivers b) technological c) market d) cost e) competitive

political

which is the most appropriate driver of globalization for the following Preferential trade agreements such as the North American Free Trade Agreement and the European Union a) political drivers b) technological c) market d) cost e) competitive

political

which is the most appropriate driver of globalization for the following Privatization of much of the industry in formerly communist nations a) political drivers b) technological c) market d) cost e) competitive

political

You are interested in expanding your business into a foreign country. The government of that country exercises strict control over types and quantities of products that can be imported, so you may be limited in how much you can export. Which driver is most impacting your decision to expand? a) political drivers b) technological c) market d) cost e) competitive

political Explanation: Political drivers relate to actions by governments that create barriers to trade and foreign investment.

According to the theory of comparative advantage, a nation should a) should produce the goods for which its absolute disadvantage is less. b) should strive to produce trade surpluses to acquire supplies of precious metals. c) must have an absolute advantage in at least one good to gain from trade. d) can gain from trade if it is equally inefficient in producing at least two goods.

produce the goods for which its absolute disadvantage is less. Explanation: The theory of comparative advantage proposes that when one nation is less efficient than another nation in the production of each of two goods, the less efficient nation has a comparative advantage in the production of the good for which its absolute disadvantage is less.

The Foreign Corrupt Practices Act (FCPA) is U.S. legislation that a) outlines and prohibits foreign bribery practices by foreign nationals in foreign nations. b) prohibits bribery by American companies abroad. c) outlines bribery practices that are allowed abroad but not in the United States. d) allows bribery in foreign dealings when culturally sanctioned.

prohibits bribery by American companies abroad.

The rise of the Ottoman Empire before 1300 influenced trade as it a) reduced the cost of Asian trade for Europeans. b) reduced the cost of European trade for Asians. c) promoted a search for sea routes from Europe to Asia. d) eliminated trade between Europe and Asia.

promoted a search for sea routes from Europe to Asia. Explanation: The rise of the Ottoman Empire before 1300, ultimately spanning Europe, North Africa, and the Middle East, profoundly influenced the emerging trade routes for people, goods, money, animals, and microorganisms that spanned from England to China, across the Mediterranean and Northern Africa, and through Central Asia and the Indian Ocean region. The powerful central location of the Ottomans within this trading web had the effect of raising the cost of Asian trade for Europeans and thus drove a search for sea routes to Asia, including the expeditions that discovered the Americas.

Tariff barriers may be used to increase government revenues. protect borders from gray market goods. reduce the need for foreign workers. protect domestic industry from foreign, lower-cost producers.

protect domestic industry from foreign, lower-cost producers.

Intellectual property rights are intended to protect original ideas/works. protect the consumers. stimulate growth in an economy. protect specific trade groups. promote international trade.

protect original ideas/works.

U.S. responses to foreign tariffs are likely to raise the cost of the imported goods for U.S. consumers. create equity across markets, which is the goal. force a reduction in tariffs. establish the fundamental rule of power rather than principle.

raise the cost of the imported goods for U.S. consumers.

International business as a business practice is considered a) to have existed before the Roman Empire. b) a result of the rise of the Ottoman Empire. c) to have begun in China in the 18th century. d) relatively new.

relatively new. Explanation: While international business as a discipline is relatively new, as a business practice it is not. Well before the Roman Empire was established, Phoenician and Greek merchants were sending representatives abroad to sell their goods.

Theory based on ________ states that international and interregional differences in production costs occur because of differences in the supply of production factors. a) comparative advantage b) resource endowments c) mercantilist advantage d) absolute advantage

resource endowments Explanation: A theory developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics suggests that differences in resource endowments will make developed countries more likely to trade with developing countries whose resource endowments are likely to be very dissimilar, than with other developed countries whose endowments are similar. According to this theory, countries would export products requiring large amounts of their abundant production factors and import products requiring large amounts of their scarce production factors.

The philosophy behind intellectual property rights is to reward international entities. reward the creator of an idea. create massive competition. increase national income levels. have less creativity.

reward the creator of an idea.

An argument against using sanctions to punish an offending nation is that sanctions seldom achieve their goal of forcing change in the offending country. sanctions are not condoned by the U.N. sanctions are relatively harmful to the citizens of the offending country. sanctions decrease the cost of doing business.

sanctions seldom achieve their goal of forcing change in the offending country. Exp: Sanctions seldom achieve their goal of forcing change in the targeted country; they also tend to produce collateral economic damage in the nations applying them, in addition to the harm caused in the sanctioned nation.

Foreign affiliates must obey local laws. If they don't, they could be subject to a) legal action by the United Nations. b) seizure by the host government.Correct c) legal action by the home country. d) reciprocal behavior by competitor companies.

seizure by the host government. Explanation: Regardless of the parent firm's size, each affiliate is a local company that must comply with the laws in the country in which it is located. If it does not, it can be subject to legal action or even government seizure.

Dumping is defined as exporting a product to a third country without correct documentation. selling a product abroad for less than its production cost or cost in the home market. selling a product abroad tax-free and with an extended warrantee. selling a product at its domestic market value.

selling a product abroad for less than its production cost or cost in the home market. Exp: We can define dumping in three ways: it consists of selling a product abroad for less than the cost of production, less than the price in the home market, or less than the price to third-party countries.

Having a global mind-set is very important Multiple Choice a) only if your company is an international company. b) so that company managers understand that there are subtle complexities to be aware of and wary of. c) because if you understand the other company's culture, it gives your company a substantial advantage in the negotiating process. d) only if your company is based in another country. because most businesses are international.

so that company managers understand that there are subtle complexities to be aware of and wary of.

The national defense argument for trade restrictions suggests that a) the military is an area that can be exempted from import restrictions. b) some industries, even if they are not competitive with foreign suppliers, may need protection from imports. c) national defense requires no trade restrictions. d) exporters of material would do well to monitor trade restrictions and permissions.

some industries, even if they are not competitive with foreign suppliers, may need protection from imports.

In 2019, what product was included in the five largest categories of U.S. goods exported to China? a) soybeans b) toys c) furniture d) soft goods

soybeans Explanation: In 2019 the five largest categories of U.S. goods exported to China were transportation equipment (e.g., cars, aircraft), computer and electronic products, chemicals, machinery, and agricultural products (e.g., soybeans).

Melissa wonders which countries are the biggest trading partners with the United States. Which country was not one of the biggest trade partners of the United States in 2019? Canada Japan Mexico Spain Correct China

spain

A difficulty caused by NAFTA and the maquiladora program that began before NAFTA, was a) a loss of jobs across the border in Mexico. b) substantial increases in water and air pollution at the border. c) increased tariffs on American goods. d) language barriers.

substantial increases in water and air pollution at the border.

If the Securities and Exchange Commission learns that a business might be involved in corruption, it will look at other businesses in the same industry to assess if they might also be involved. What is this process called? sweeping phishing ghosting tagging

sweeping

AbbVie pharmaceutical company conducts product research all over the world. Communication is facilitated between sites with use of the Internet and communication tools like videoconferencing. Which driver is most influencing the way AbbVie does business in this example? a) political drivers b) technological c) market d) cost e) competitive

technological

which is the most appropriate driver of globalization for the following The Internet and network computing facilitate the rapid flow of information, regardless of physical location, which enables companies to compete globally. a) political drivers b) technological c) market d) cost e) competitive

technological

Jackson Control Corp. now uses videoconferencing which helps the sales team demonstrate products to prospective international customers while eliminating expensive travel costs. Which of the five drivers of international business does this represent? a) political b) market c) competitive d) technological

technological Explanation: Advances in computers and communications technology are permitting an increased flow of ideas and information across borders, enabling customers to learn about foreign goods. Internet videoconferencing allows sellers to demonstrate their products to prospective buyers all over the world without the need to travel. It also permits international companies to hold corporate meetings between managers from headquarters and overseas subsidiaries without expensive, time-consuming travel.

Sankha is the director of operations for Farm Fresh Produce Corp. and is now able to sell his product to the international market thanks to a new computer system that is specifically designed for businesses in the fresh food industry. Which driver helped Sankha's company internationalize? a) market b) cost c) technological d) political

technological Explanation: Technological drivers include advances in computers and communication technology that permit an increased flow of ideas and information across borders.

In Trompenaars's universalism-particularism dimension, people in particularist cultures a) tend to be rule-based. b) tend to be relationship-based. c) apply rules to all people at all times. d) rarely have misunderstandings about ethics.

tend to be relationship-based. Explanation: People in universalist cultures apply rules to all people at all times, without exception. People in particularist cultures consider the context before they apply the rule. They tend to be relationship-based.

Match each of the options above to the items below. extraterritoriality a) EU Competition Law (harm needs to be shown) b) France (language requirement) c) the United States and the European Union (antitrust or competition law) d) U.S. Tort Law (existence of damage or harm sufficient; no need to prove negligence) e) U.S. Competition Law (harm need not be shown) f) U.S. Product Liability Law (jury-awarded; may be large)

the United States and the European Union (antitrust or competition law)

Which country may apply punitive damages in product liability cases? the United Kingdom. Japan. the United States. Japan and the EU.

the United States.

Loose versus tight accounting controls directly relate to a culture's assumptions about a) efficiency. b) the basic nature of people.Correct c) inventory policy. d) leadership.

the basic nature of people. Explanation: Tight controls imply a low level of trust while looser controls imply a higher level of trust.

Referring to Hall's high- and low-context framework, in a high-context culture a) the context carries much of the communication. b) the context is irrelevant. c) communication is direct and focused on the topic. d) communication is explicit.

the context carries much of the communication. Explanation: In a high-context culture, context carries much of the communication, so the communication tends to be more subtle and indirect than in a low-context culture.

Trompenaars's particularist dimension describes a culture in which a) rules rather than relationships regulate behaviors. b) the judgment of something depends on the situation. c) all rules apply to all people at all times. d) rules never apply.

the judgment of something depends on the situation. Explanation: In particularist cultures, particular circumstances matter when rules are applied.

The rapid expansion of world exports in the last 40 years demonstrates that a) domestic businesses cannot compete with cheap imports. b) the opportunity to increase sales by exporting is a viable growth strategy. c) businesspeople can expect to meet lower levels of competition in their domestic markets. d) jobs will inevitably decline in developed countries due to import competition.

the opportunity to increase sales by exporting is a viable growth strategy. Explanation: The rapid expansion of world exports since 1980 demonstrates that the opportunity to increase sales by exporting is a viable growth strategy and one that can benefit the exporting nations by creating jobs for their citizens. At the same time, however, the growth of exports from individual nations should be a warning to managers that they must be prepared to meet increased competition from these exports in their own domestic markets.

The experience curve refers to a) the rising scale on which efficiency improves as a result of cumulative experience and learning. b) the plateau stage in the product life cycle where companies export products for the first time. c) the sloping curve that designates the end of the product life cycle. d) the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.

the rising scale on which efficiency improves as a result of cumulative experience and learning. Explanation: Experience curve refers to the rising scale on which efficiency improves as a result of cumulative experience and learning.

In Trompenaars's ascription culture, a person's identity is based on a) their family lineage, age, or other attributes. b) their work achievements. c) cultural norms. d) educational diversity.

their family lineage, age, or other attributes. Explanation: Ascription cultures consider a person's identity in terms of his or her family lineage, age, or other attributes.

One danger of using the culture frameworks introduced in Module 3 is applying them predictively because a) we'll enrich our perceptions. b) they ignore complexity and subtlety. c) we'll be able to understand too much detail of a culture, and this will slow down decision-making. d) our understanding of culture will be complex and obstruct decision-making.

they ignore complexity and subtlety. Explanation: The generalizations represented in the frameworks are at best sophisticated stereotype of the complex cultures we are trying to understand. They are useful as first guesses; as predictions, however, they can mislead because they ignore complexity and subtlety.

It is important to carefully listen to clients and ask questions -to be able to show them where they are wrong. -to make sure the client is not making a mistake. -to deeply understand what they are really trying to say. -to figure out what they do not understand in the business.

to deeply understand what they are really trying to say.

The concept of strict liability, as found in the U.S. legal system, applies to children harmed by products in both the United States and the EU. strictly to harm caused by the designer/manufacturer, so no penalties outside of damages can be awarded. to harm done within narrow limits, considering the design of the product. to harm done by the designer/manufacturer without the need to prove negligence.

to harm done by the designer/manufacturer without the need to prove negligence.

Why would a government not restrict trade? Multiple Choice to help big businesses increase their profits to provide for national defense to protect dying industry to protect domestic jobs to retaliate

to help big businesses increase their profits In some countries, national trade is protected by government intervention as part of their trade strategy. Trade has become a political issue for small groups who seek to protect domestic business from foreign competition.

Businesses that conduct country risk assessment do so because, much as with executive salaries, there is a herd mentality. as part of their legal profile. to protect their assets, including people and property. to satisfy their top management teams.

to protect their assets, including people and property. Country risk assessment (CRA) is an assessment of a country's economic situation and politics to determine how much risk to employees, property, and investment exists for the firm doing business there.

When the U.S. government assumed a controlling interest in General Motors after the financial crisis of 2008-2009, what was its primary goal? Multiple Choice a) to enforce a political ideology b) to make money c) to save jobs and support its recovery d) to gain control of the automotive industry

to save jobs and support its recovery Correct

Information that firms need in order to accurately assess a country's risks varies according to what two major factors? a) type of business and time needed to gain a satisfactory return on investment b) time needed for initial market entry and size of the anticipated workforce c) qualifications of workforce and type of government d) presence of competitors and presence of terrorist or criminal operations

type of business and time needed to gain a satisfactory return on investment Explanation: The types of information a firm will need to judge country risks vary according to the nature of its business and the length of time required for the investment, loan, or other involvement to yield a satisfactory return.

Trevor has worked for the same company for the past 15 years. During that time, the organization has stayed basically the same as when he started, and he has been told by others that management likes to keep things as they are and prefers to maintain the status quo. Which of Hofstede's dimensions does this choice reflect? Multiple Choice masculinity-femininity power distance individualism-collectivism uncertainty avoidance

uncertainty avoidance

Latrell decided not to take the overseas management position because he knew managers worked alongside their staff and did not have private offices in this particular international culture. He thought this made managers look less important and inconsequential. What aspect of culture is he concerned with? a) folklore b) verbal communication c) unspoken language d) aesthetics

unspoken language Explanation: Unspoken language includes spatial relationships, such as office size and location.

The Japanese government limits its automobile exports to the United States. This is an example of which type of trade barrier? tariff variable levy voluntary export restraints quotas

voluntary export restraints

Orderly marketing arrangements are greenfield investments. voluntary export restraints. absolute quotas. variable levies.

voluntary export restraints.