IBA Exam #1
The initial phase of globalization was triggered by the introduction of the railroads and ocean transport.
True
Which cultural dimension relates to personal motivations and behaviors?
Values
In ________, people are primarily concerned with their own self-interest, and ties among individuals are fairly loose.
individualistic societies
From the trade theories perspective, the main reason that firms internalize value-chain activities is to ________.
gain and sustain competitive advantage
________ is a religion that is not associated with one particular prophet. It is an open-hearted faith that fully accepts other faiths and is inspired by central concepts called dharma and karma.
Hinduism
________ involves the allocation of assets to another country or the attainment of assets in that particular country.
International investment
________ involves the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns.
International portfolio investment
Which term refers to the trend of corporations to methodically expand their worldwide business activities? 1
Internationalization
Sierra's religion is based on a holy book called the Qur'an. She participates in daily ritual prayers, fasts during certain times of the year, and gives to charities. Her religion prohibits the consumption of alcohol or wearing revealing clothing. What religion does Sierra practice?
Islam
Which element in Porter's diamond model describes a nation's position in terms of labor, natural resources, wealth, technology, entrepreneurship, and know-how?
Factor conditions
English is the most common primary language in the world.
False
Which of the following refers to the absence of restrictions to the movement of goods and services among countries?
Free trade
What is the most complex entry strategy for engaging in global business?
Foreign direct investment
Which of these describes a strategy that involves a firm's establishing a presence overseas by acquiring productive assets such as land, plants, equipment, capital, and technology?
Foreign direct investment
Which principle or theory describes how two different countries can benefit through trade only if one of those countries is moderately more effective at producing a product needed by the other?
Comparative advantage principle
Which of the following represents the trend of economic disaster spreading from one country to another?
Contagion
________ refers to the system of procedures and processes by which corporations are managed, directed, and controlled.
Corporate governance
Which of the following best describes culture?
Culture is relative.
Which of the following would be a cross-cultural risk in internationalization?
Different Languages
________ describes using one's own culture as a basis for judging other cultures.
Ethnocentric orientation
Freedom Shoes (Scenario) Freedom Shoes Inc., a sports shoe company, is considering entering into a contract with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be the most attractive in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions. Sean, a senior manager in Freedom, adheres to the relativist view regarding ethical standards. He goes by the rule, "When in Rome, do as the Romans do." Sean is most likely to agree strongly with which of the following views?
Freedom should passively accept the practices that prevail in countries where it does business.
Which term refers to an expression whose symbolic meaning differs from the literal meaning?
Idiom
Nigeria's telecom infrastructure has increased telephone usage to over 30 million cellular subscribers. What is the most likely benefit Nigeria will realize from addingtelephones?
Improved living standards
Culture is not ________.
Inherited
________ involves the allocation of assets to another country or the attainment of assets in that particular country.
International Investment
Which of the following is NOT a limitation of the absolute and comparative advantage theories?
Large-scale production provides economies of scale.
Acme Ethical Standards (Scenario) Four senior managers of Acme International meet to discuss strategies for improving ethical practices in the company's worldwide operations. Jang heads the company's manufacturing division in China, while Luis and Marta are based in the Finland and U.S. sales divisions, respectively. Geoff manages the research and development office, based in Brazil. The managers discuss various ethical problems commonly encountered in their local territories. Who among the following managers is most likely to raise concern over the ban on advertising directed at children in his/her country?
Luis
What technology has had the greatest effect in developing economies?
Mobile Phones
What is the most likely reason that Nestlé sells its food and beverage products worldwide?
Nestlé wants to earn profits in international markets.
Which of the following is a societal consequence of globalization?
Offshoring and the flight of jobs
ABC Enterprises transferred some of its manufacturing and other value-chain activities to a more cost-effective location in China five years ago. Recently, ABC Enterprises has undergone a change in management, and the new manager has decided to move those value-chain and manufacturing activities back to the home country. In which of the following is ABC participating?
Reshoring
Japanese Supercenter (Scenario) The Tag-Mart chain of discount superstores is nearing completion of its new supercenter in Tokyo. The Tokyo store is the first foreign store for the large U.S.-based company. Tag-Mart offers a large variety of products at virtually unbeatable prices. A group of Tag-Mart representatives has traveled to Tokyo to inspect the new store and hire a store manager. The top two contenders for the position are Hisako Aoki and Takematsu Sato. Aoki has 25 years of experience managing a local department store renowned for its customer service. Sato, born and raised in Japan, earned a college degree in the U.S. before working six years as a manager at a Texas Tag-Mart. Which of the following best supports the selection of Sato over Aoki?
Sato is familiar with both Tag-Mart operations as well as the local customs in Japan.
________ is the tendency to view other cultures through the lens of one's own culture.
Self-reference criterion
Sally, a recent business school graduate, loves adventure, so she is seeking a job in a foreign country to expand her sense of the world of business. She is being recruited by a company that has 50 employees and is looking to hire additional personnel to oversee the firm's exporting branch in Vietnam. What type of international business is recruiting Sally?
Small enterprise
The technology for television sets was invented in the United States, and production began in the 1940s. Sales grew until TVs became standardized. Then production shifted overseas, and now the United States imports its television sets. This is an example of ________.
The international product life cycle
_______ is defined as the ability to accept uncertainty and a lack of clarity in the thinking and actions of others.
Tolerance for ambiguity
Which of the following is NOT an economic integration bloc?
World Trade Organization (WTO)
The sequence of activities implemented by a company in the course of creating, manufacturing, promoting, and servicing a product is known as ________.
a value chain
Acculturation refers to the process of ________.
adapting to a culture other than one's original culture
The MNEs that are the most active in FDI are in the ________, ________, and ________ industries.
automotive; oil; telecommunications
Established in 2010, Instagram quickly found an international market for its photo- site. Currently, only a small fraction of Instagram's customers are from the United States. Instagram is an example of a(n) ________.
born global firm
Advances in ________ have resulted in an expansion of the global marketplace for small- and medium-sized enterprises (SMEs).
communications
Johnson & Johnson created alcohol-free Listerine Zero for Muslim countries, where spirits are forbidden, and Green Tea Listerine for Asian markets. This example shows that ________.
cultural differences necessitate the tailoring of marketing activities to target markets
A(n) ________ is a form of collaboration between two or more firms to create a new enterprise.
joint venture
When a company transfers its value-chain activities by launching a subsidiary in a foreign country, it is called ________.
offshoring
Societies that score low on uncertainly avoidance ________.
take risks and make decisions quickly
The greatest significance of globalization is reflected directly in a company's ________.
value chain
Amy is employed in an American investment firm and is currently working with some South African clients on a new project. She uses a lot of hand gestures during meetings which his clients find very distracting and rude. This has also led to many misunderstandings between Amy and her South African clients in the recent past. Which of the following best describes such a situation?
Cross-cultural risk
What is the second stage of the internationalization process model?
Pre-export
Tori believes that business contracts should be very exactly worded. Because of bad experiences, she does not trust agreements based on assumptions, handshakes, or unspoken understandings. Tori trusts extensive verbal explanations and spoken words more than relationships. She is from a ________ culture.
low-context