IBI - Chapter 1, IBI - Chapter 3, IBI - Chapter 2, IBI - Chapter 4
. Internal stakeholders: A. are individuals or groups who work for or own the business. B. do not have any claim on a firm or its activities. C. typically comprise customers, suppliers, lenders, governments, unions, etc. D. are individuals, except employees, board of directors, and stockholders that have some claim on the firm.
A
A _____ is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime. A. caste system B. class system C. social system D. culture system
A
A document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved is BEST known as a: A. contract. B. business letter. C. memorandum. D. civil code.
A
A state where political power is monopolized by a party, group, or individual that governs according to religious principles is best described as following: A. theocratic totalitarianism. B. tribal totalitarianism. C. right-wing totalitarianism. D. communist totalitarianism.
A
A theocratic law system is: A. one in which the law is based on religious teachings. B. based on tradition, precedent, and custom. C. based on a detailed set of laws organized into codes. D. the body of law that governs contract enforcement.
A
According to Islam, those who hold property are regarded as: A. trustees. B. owners. C. tenants. D. speculators.
A
The _____ was created in 1944 by 44 nations that met in Breton Woods, New Hampshire to promote economic development. A. World Bank B. International Trade Center C. World Trade Organization D. United Nations
A
According to John Rawls: A. each person should be permitted the maximum amount of basic liberty compatible with a similar liberty for others. B. freedom of speech and assembly is the single most important component in a justice system. C. equal basic liberty is only possible in a pure market economy. D. inequalities in a justice system are not to be tolerated under any circumstance.
A
Any person or institution that is capable of moral action such as a government or corporation is a(n): A. moral agent. B. utilitarian. C. righteous moralist. D. naive immoralist.
A
Cultural relativism suggests that: A. ethics are nothing more than the reflection of culture and that a firm should adopt the ethics of the culture in which it is operating. B. the only social responsibility of business is to increase profits. C. managers of a firm should not make decisions regarding social investments. D. a multinational's home-country standards of ethics are always appropriate to follow in foreign countries.
A
During the 1960s and 1970s, class divisions in _____ raised the cost of doing business there, relative to other European countries. A. Great Britain B. Switzerland C. Norway D. Germany
A
Ethical systems are: A. a set of moral principles, or values, that are used to guide and shape behavior. B. shared beliefs and rituals that are concerned with the realm of the sacred. C. routine conventions of everyday life. D. social rules that govern peoples' actions toward each other.
A
Facilitating payments are: A. permitted under the amended Foreign Corrupt Practices Act. B. a direct violation of the Foreign Corrupt Practices Act. C. permitted so long as they designed only to gain exclusive preferential treatment. D. used to secure contracts that would otherwise not be secured.
A
Hofstede's dimension of Confucian dynamism: A. captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors. B. focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities. C. explores the relationship between the individual and his/her fellows. D. looks at the relationship between gender and the ability to accept ambiguous situations.
A
Hofstede's uncertainty avoidance dimension considered: A. the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. B. the relationship between gender and work roles. C. how a society deals with the fact that people are unequal in physical and intellectual capabilities. D. the relationship between the individual and his or her fellows.
A
Identify the correct statement about the rights theories. A. Human beings have fundamental rights and privileges that transcend national boundaries. B. The moral worth of actions or practices is determined by their consequences. C. People should be treated as ends never purely as means to the ends of others. D. Minimum levels of morally acceptable behavior should be established
A
Identify the incorrect statement pertaining to a country's political economy. A. It is independent of the culture of a nation. B. It is a combination of interdependent political, economic, and legal systems. C. Its various systems interact and influence each other. D. Its interacting systems affect the level of economic well-being.
A
Identify the incorrect statement regarding individualism. A. It advocates for a socialist political system B. It promotes free market economics C. It creates a pro-business environment D. It translates into an advocacy for democratic political systems
A
Identify the incorrect statement regarding the former Communist nations of Europe and Asia. A. The economies of most of the former Communist states are very strong and developed. B. Many of the former Communist nations of Europe and Asia share a commitment to free market economies. C. As a result of disturbing signs of growing unrest and totalitarian tendencies, the risks involved in doing business in these countries is very high. D. For about half a century these countries were essentially closed to Western international business.
A
In a pure command economy: A. all productive activities are owned by the state. B. all productive activities are privately owned. C. the goods and services that a country produces are not planned by anyone. D. production is determined by the interaction of supply and demand.
A
Individualism can best be described by which of the following statements? A. It as a philosophy suggests that an individual should have freedom over his/her economic and political pursuits. B. It is a political system in which government control over all factors of production is in entirety. C. It is a political system that stresses the primacy of collective goals over individual goals. D. It is a form of government in which one person or political party exercises absolute control over all spheres of human life.
A
Mores are: A. the norms that are seen as central to the functioning of a society and its social life B. the routine conventions of everyday life. C. abstract ideas about what a group believes to be right, good, and desirable. D. the social rules and guidelines that prescribe appropriate behavior in particular situations
A
Social democracy: A. as an ideology may prove to be more enduring than communism. B. has perhaps had its greatest influence in a number of democratic Asian countries. C. has had no influence in any democratic Western nation. D. had greatest influence in Eastern European nations like Poland, Czechoslovakia, and Hungary.
A
Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as: A. norms. B. values. C. culture. D. society.
A
The HDI is based on all of the following measures except: A. political freedom. B. life expectancy at birth. C. educational attainment. D. whether average incomes are sufficient to meet the basic needs of life.
A
The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities. A. power distance B. individualism vs. collectivism C. uncertainty avoidance D. masculinity vs. femininity
A
The _____ occurs when a resource is shared by all, but owned by no one, is overused by individuals, resulting in its degradation. A. tragedy of the commons B. noblesse oblige C. ethical dilemma D. Friedman system
A
The belief in the superiority of one's own culture is known as: A. ethnocentrism. B. egocentrism. C. polycentrism. D. theocentricism.
A
The emergence of class consciousness in Great Britain can be attributed to: A. the relative lack of class mobility. B. a high degree of social mobility. C. an extreme emphasis on individualism. D. most of the population perceiving itself to be middle class.
A
The growing integration of the world economy is: A. increasing the intensity of competition in a wide range of manufacturing and service industries. B. decreasing the intensity of competition in manufacturing industries, and increasing the intensity of competition in services. C. increasing the intensity of competition in manufacturing industries, and decreasing the intensity of competition in services. D. narrowing the scope of competition in a wide range of service, commodity, and manufacturing industries
A
The institution, created in 1944 at Bretton Woods, responsible for maintaining order in the international monetary system is the A. IMF. B. WTO. C. UN. D. UNESCO
A
This is an Islamic banking method where banks lend money to a business, and rather than charging that business interest on the loan, they take a share in the profits that are derived from the investment. A. Mudarabah B. Murabaha C. Maysir D. Mudarib
A
Totalitarianism: A. is a form of government in which one person or political party exercises absolute control over all spheres of human life. B. refers to a political system in which government is by the people, exercised either directly or through elected representatives. C. is based on a belief that citizens should be directly involved in decision making. D. is based on the idea that the welfare of society is best served by letting people pursue their own economic self-interests.
A
Under the veil of ignorance, everyone is imagined to be ignorant of: A. all of his/her particular characteristics. B. fundamental rights and privileges. C. the moral worth of actions or practices. D. the minimum levels of morally acceptable behavior.
A
Which of the following does not help create an economic system that is favorable to international business? A. Decreased privatization B. Widespread deregulation C. Open markets D. Falling trade and investment barriers
A
Which of the following is not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe? A. Reduced transportation costs. B. Government regulations. C. Issues associated with economic and political risk. D. Barriers to foreign direct investment
A
Which of the following is not characteristic of globalization? A. National economies are turning into independent economic systems. B. Material culture is starting to look similar the world over. C. Perceived distance is shrinking due to advances in transportation and telecommunications. D. Barriers to cross-border trade and investment are declining
A
Which of the following is not true regarding culture? A. Culture is static B. Culture is evolving C. It is a system of values and norms that are shared among a group of people D. It involves the knowledge and beliefs of people
A
Which of the following observations about the Foreign Corrupt Practices Act is true? A. The act outlawed the paying of bribes to foreign government officials to gain business. B. There is enough evidence that it put U.S. firms at a competitive disadvantage. C. The act originally allowed for "facilitating payments." D. The Nike case was the impetus for the 1977 passage of this act.
A
Which of these statements pertaining to cross-border FDI flows is true? A. The growth of FDI resumed in 2004 and continued through 2006. B. A surge in FDI from 1995 to 1997 was followed by a slump from 1998 to 2000. C. Among developing nations, the largest recipient of FDI has been Russia. D. The dramatic increase in FDI reflects the decreasing internationalization of business corporations.
A
_____ are the routine conventions of everyday life. A. Folkways B. Mores C. Rites D. Beliefs
A
_____ occur(s) when a firm exports goods or services to consumers in another country. A. International trade B. Foreign direct investment C. Inward investment D. Merger and acquisitions
A
. Identify the incorrect statement about environmental regulations. A. Environmental regulations are often lacking in developing nations. B. Environmental regulations are similar across developed and developing nations. C. Developed nations have substantial regulations governing the emission of pollutants, the dumping of toxic chemicals, etc. D. Inferior environmental regulations in host nations, as compared to home nation, can lead to ethical issues.
B
A central value of Japanese culture is the importance attached to: A. the individual. B. group membership. C. individual achievement. D. personal accomplishments.
B
A group of people who share a common set of values and norms form a: A. culture. B. society. C. country. D. caste.
B
All of the following are reasons that would account for the spread of democracy except: A. totalitarian regimes failing to deliver economic progress to the vast bulk of their populations. B. the unchallenged pressure of entrepreneurs and other business leaders for less accountable and closed governments. C. the economic advances of the past quarter century leading to the emergence of increasingly prosperous middle and working classes pushing for democratic reforms. D. new information and communication technologies reducing the state's ability to control access to uncensored information.
B
An act, as simple as shaking hands when meeting new people is an example of: A. values. B. symbolic behavior. C. mores. D. social stratification.
B
Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors in its subsidiary, even though it is against the multinational's home-country ethics. Which of the following approaches to business ethics would justify the actions of the multinational company? A. Righteous moralist B. Cultural relativism C. The justice theory D. The rights theory
B
Critics of globalization maintain that the apparent decline in real wage rates of unskilled workers A. owes far more to a technology-induced shift within advanced economies toward jobs that require significant education and skills. B. is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers. C. has been impacted most by technological change. D. can be checked by increasing society's investment in education to reduce the supply of unskilled workers
B
Firms based in _____ accounted for 14.7 percent of the stock of foreign direct investment in 2007, up from only 1.1 percent in 1980. A. Asia B. developing countries C. United Kingdom D. NAFTA region
B
Grease payments: A. are not the same as facilitating payments or speed money. B. are facilitating payments made to expedite routine government action. C. are payments to gain exclusive preferential treatments. D. can be used to secure contracts that would otherwise not be secured.
B
Hofstede's masculinity vs. femininity dimension examined: A. the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. B. the relationship between gender and work roles. C. how a society deals with the fact that people are unequal in physical and intellectual capabilities. D. the relationship between the individual and his or her fellows.
B
Identify the incorrect statement pertaining to foreign multinationals doing business in countries with repressive regimes. A. Inward investment by multinationals can be a force for economic, political, and social progress that ultimately improves the rights of people in repressive regimes. B. No multinational does business with nations that lack the democratic structures and human rights records of developed nations. C. Multinational investment cannot be justified on ethical grounds in some regimes due to their extreme human rights violations. D. Multinationals adopting an ethical stance can, at times, improve human rights in repressive regimes.
B
Identify the incorrect statement pertaining to innovation and entrepreneurship. A. They are the engines of growth B. They require state ownership of all means of production C. They require a market economy D. They require strong property rights
B
Identify the incorrect statement pertaining to intellectual property rights. A. Its violation cost personal computer software firms revenues equal to $48 billion in 2007. B. The protection of intellectual property rights is more or less the same in all countries. C. The enforcement of its regulations has often been lax. D. Its violation has been very bad in China, where the piracy rate in 2007 ran at 82 percent.
B
In China, class divisions: A. have historically been of no importance. B. were strengthened during the high point of Communist rule. C. increased even during reforms of the late 1970s and early 1980s. D. were weakened because of a rigid system of household registration.
B
In a pure market economy: A. all productive activities are owned by the state. B. all productive activities are privately owned. C. the government plans the goods and services that a country produces. D. resources are allocated for "the good of society."
B
Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by encouraging all of the following except: A. privatizing state-owned enterprises. B. regulating markets. C. increasing competition. D. welcoming investment by foreign businesses.
B
The TRIPS agreement was designed to: A. exclude China from all intellectual property agreements. B. oversee a much stricter enforcement of intellectual property regulations. C. lobby for more lax intellectual property rights for poor countries. D. support traded software and recorded property among developed markets.
B
The benefits of doing business in a country are a function of all of the following except: A. the size of the market. B. its past growth. C. its present wealth. D. its future growth prospects.
B
The common law system: A. lacks the flexibility that other systems have. B. is based on tradition, precedent, and custom. C. gives judges the power only to apply the law. D. is based on a detailed set of laws organized into codes.
B
According to the _____ approach, the best decisions are those that produce the greatest good for the greatest number of people. A. naive immoralist B. Friedman doctrine C. utilitarian D. Kantian
C
The individualism vs. collectivism dimension of Hofstede's study explored: A. the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. B. the relationship between gender and work roles. C. how a society deals with the fact that people are unequal in physical and intellectual capabilities. D. the relationship between the individual and his/her fellows.
B
The righteous moralist suggests that: A. ethics are nothing more than the reflection of culture. B. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. C. the social responsibility of business is to increase profits, so long as the company stays within the rules of law. D. if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.
B
The share of the total FDI stock accounted for by which of the following countries increased markedly from 1980 to 2005? A. United States B. France C. United Kingdom D. Netherlands
B
The utilitarian approach to business ethics suggests that: A. people should be treated as ends and never purely as means to the ends of others. B. the moral worth of actions or practices is determined by their consequences. C. people have dignity and need to be treated as such. D. human beings have fundamental rights and privileges that transcend national cultures.
B
Three values central to the Confucian system of ethics have very important economic implications. Which of the following is not one among them? A. Loyalty B. Rule-based law C. Reciprocal obligations D. Honesty in dealings with others
B
To guard against abuse of employment practices in other nations, multinationals should do all of the following except: A. establish minimal acceptable standards that safeguard the basic rights and dignity of employees. B. adhere to working conditions of the host country if they are clearly inferior to those in a multinational's home nation. C. audit foreign subsidiaries and subcontractors on a regular basis to make sure established standards are met. D. take action to correct unacceptable behavior
B
Which Islamic banking method is the most widely used among the world's Islamic banks, primarily because it is the easiest to implement? A. Mudarib B. Murabaha C. Maysir D. Mudarabah
B
Which of the following enables managers to walk away from a decision that is profitable, but unethical? A. Noblesse oblige B. Moral courage C. The difference principle D. The Friedman doctrine
B
Which of the following observations is correct? A. None of the economic principles established in the Koran are pro-free enterprise. B. The Koran speaks approvingly of free enterprise. C. The Koran speaks disapprovingly of earning legitimate profit through trade and commerce. D. Protection of the right to private property is not embedded within Islam.
B
Which of the following provides exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit? A. Patents B. Copyrights C. Trademarks D. Licenses
B
Which of the following refers to the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource? A. Theocratic right B. Property right C. Trade right D. Financial right
B
Which of the following statements regarding cross-border trade and investment is not true? A. "Protection" from foreign competitors has been, at times, demanded by the United States. B. Forecasts indicate a return to the restrictive trade policies of the 1920s and 30s. C. If trade barriers decline no further they will put a brake upon the globalization of both markets and production. D. It is not clear whether the political majority in the industrialized world favors further reductions in trade barriers
B
Which of the following was designed to allow GM to operate ethically in South Africa as long as the company did not obey the apartheid laws in its own South African operations? A. The righteous moral system B. Sullivan principles C. Noblesse oblige D. Cultural relativism
B
Which system of government generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism? A. Tribal totalitarianism B. Right-wing totalitarianism C. Left wing totalitarianism D. Theocratic totalitarianism
B
____ is consistent with the notion that an individual's right to do something may be restricted because it runs counter to "the good of society" or "the common good." A. Entrepreneurship B. Collectivism C. Free enterprise D. Capitalism
B
_____ is/are best defined as shared assumptions about how things ought to be. A. Norms B. Values C. Society D. Culture
B
A ___ system is based on a very detailed set of laws organized into codes. A. democratic law B. theocratic law C. civil law D. common law
C
A class system: A. is the same as a caste system. B. is a rigid form of social stratification that does not permit social mobility. C. allows an individual to change his/her position via personal achievements. D. is more rigid than the caste system.
C
According to sociologists, which of the following branches of Christianity has the most important economic implications? A. Catholic B. Orthodox C. Protestant D. Mormon
C
According to the Friedman doctrine: A. ethics are nothing more than the reflection of culture. B. a multinational's home-country standards of ethics are inappropriate to follow in foreign countries. C. businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business. D. if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.
C
Design and names by which merchants or manufacturers designate and differentiate their products are known as: A. patents. B. copyrights. C. trademarks. D. licenses.
C
Ethical dilemmas exist because of all of the following reasons except: A. many real-world decisions are complex and difficult to frame. B. decisions may involve first, second, and third-order consequences that are hard to quantify. C. doing the right thing, or knowing what the right thing might be, is often far too easy. D. they are situations in which none of the available alternatives seem ethically acceptable
C
External stakeholders: A. are individuals or groups who own the business. B. include all employees, the board of directors, and stockholders. C. typically comprise customers, suppliers, lenders, etc. D. are individuals or groups who work for the business.
C
Globalization has _____ the opportunities for a firm to expand its revenues by selling around the world and _____ its costs by producing in nations where key inputs are cheap A. reduced, reduced B. increased, increased C. increased, reduced D. reduced, increased
C
Identify the incorrect statement concerning globalization. A. It has been blamed for unemployment in developed nations, environmental degradation and the Americanization of popular culture. B. It has created new threats for businesses accustomed to dominating their domestic markets. C. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition. D. According to most economists it is a very beneficial process where gains outweigh the losses by a wide margin
C
Identify the incorrect statement pertaining to the World Wide Web. A. It makes it much easier for buyers and sellers to find each other. B. Viewed globally, it is emerging as an equalizer. C. It rolls back all of the constraints of location, scale, and time zones. D. It allows businesses to expand their global presence at a lower cost than ever before.
C
Identify the incorrect statement regarding ethical issues in international business. A. They are often rooted in the fact that political systems, law, economic development, and culture of nations vary significantly. B. Human rights and environmental regulations are some of the common ethical issues. C. Ethical practices of all nations are similar in nature. D. Managers in multinational firms need to be particularly sensitive to differences in business practices because they work across national borders.
C
In the 1970s, many Japanese firms invested in North America and Europe A. to avoid a highly competitive domestic market. B. to exploit high domestic tariff barriers. C. as a hedge against unfavorable currency movements. D. to take advantage of low labor costs
C
It has been argued that the success of Japanese enterprises in the global economy has been based partly on all of the following except: A. the diffusion of self-managing work teams. B. the close cooperation among different functions within Japanese companies. C. the high degree of managerial mobility between companies. D. the cooperation between a company and its suppliers on issues such as design, quality control, and inventory reduction.
C
Rawls' philosophy that inequalities are justified if they benefit the position of the least-advantaged person is known as the: A. inequality principle. B. equity principle. C. difference principle. D. indifference principle.
C
Religion may be defined as: A. routine conventions of everyday life. B. social rules that govern peoples' actions toward each other. C. shared beliefs and rituals that are concerned with the realm of the sacred. D. a set of moral principles, or values, that are used to guide and shape behavior.
C
Safety standards to which a product must adhere are set by: A. safety certifications. B. the government standards department. C. product safety laws. D. product liability laws.
C
Since 1980, the world's containership fleet has more than _____, reflecting in part the growing volume of international trade. A. doubled B. tripled C. quadrupled D. quintupled
C
The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes: A. speed payments to secure contracts that would otherwise not be secured. B. grease payments to gain exclusive preferential treatment. C. facilitating payments made to expedite routine government action. D. payments to government officials for special privileges
C
The Kantian approach to ethics suggests that: A. human beings have fundamental rights and privileges that transcend national boundaries. B. the moral worth of actions or practices is determined by their consequences. C. people should be treated as ends and never purely as means to the ends of others. D. ethics are nothing more than the reflection of culture.
C
The United Nations' Universal Declaration of Human Rights, related to employment, upholds all of the following except: A. just and favorable work conditions. B. equal pay for equal work. C. prohibition of trade unions. D. protection against unemployment.
C
The _____ was established to remove barriers to the free flow of goods, services, and capital between nations A. UN B. IMF C. GATT D. IDA
C
The emphasis on individualism in the United States results in all of the following disadvantages except: A. managers tend to develop good general skills but lack the company-specific experience. B. difficulty in building teams within an organization to perform collective tasks. C. executives are not exposed to different ways of doing business. D. difficulty to achieve cooperation both within a company and between companies.
C
The reduction in the average tariff rates on manufactured products since 1950 implies all of the following except that A. firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality. B. the economies of the world's nation states are becoming more intertwined. C. nations are becoming increasingly independent of each other for important goods and services. D. the world has become significantly wealthier since 1950
C
The social organization of Western society tends to emphasize on: A. a group orientation. B. the family. C. individual achievement. D. work groups.
C
These strata are typically defined on the basis of characteristics such as family background, occupation, and income. A. Demographic strata B. Economic strata C. Social strata D. Cultural strata
C
This refers to a political system in which government is by the people, exercised either directly or through elected representatives. A. Totalitarianism B. Authoritarianism C. Democracy D. Dictatorship
C
What is the total cumulative value of foreign investments best referred to as? A. Accumulation of foreign shares B. Portfolio investments C. Stock of foreign direct investments D. Stock market investments
C
When a company "exports jobs" overseas, the company is: A. helping domestic workers by pushing up wage rates. B. increasing the demand of qualified domestic workers. C. taking advantage of lower wages in foreign markets. D. deceiving the supporters of globalization.
C
Which of the following refers to the extent to which individuals can move out of the strata into which they are born? A. Caste stratification B. Class system C. Social mobility D. Individual potential
C
Which of the following refers to the values and norms that the employees of an organization share? A. Vision statement B. Cultural relativism C. Organization culture D. Power orientation
C
Which of the following statement pertaining to changes in the global economy of the 21st century is not true? A. Barriers to the free flow of goods, services, and capital have been coming down. B. Volume of cross-border trade and investment has been growing more rapidly than global output. C. National economies are becoming more independent and moving away from the global economic system. D. As economies advance, more nations are joining the ranks of the developed world
C
Which of the following statements about socialism is false? A. Modern socialists' intellectual roots can be traced to Karl Marx. B. Elements of socialist thought can be traced to Plato. C. Socialist ideology is split into two camps—communists and individualists. D. Socialism advocates for state ownership of the means of production
C
Which of the following statements about the legal systems of countries is false? A. They can affect the attractiveness of a country as an investment site or market. B. They are influenced by the prevailing political system of the country. C. They are almost the same for all countries. D. They are of immense importance to international business.
C
Which of the following statements about the trade-related aspects of intellectual property rights agreement is false? A. It was designed to oversee enforcement of much stricter intellectual property regulations, beginning in 1995. B. It obliged WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years. C. It directed rich countries to comply with its rules of intellectual property protection within five years. D. It provided the very poorest countries 10 years to comply with its rules of intellectual property protection.
C
___ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate. A. A product law B. Trade certification C. Deregulation D. A liability law
C
_____ means standing in the shoes of a stakeholder and asking how a proposed decision might impact that stakeholder. A. Veil of ignorance B. Difference principle C. Moral imagination D. Noblesse oblige
C
80. In all of the following scenarios, the costs of doing business in a country tend to be greater, except where: A. political payoffs are required to gain market access. B. supporting infrastructure is lacking. C. adhering to local laws and regulations is costly. D. there is a highly developed infrastructural support.
D
A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of: A. mores. B. values. C. attitudes. D. folkways.
D
A ___ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention. A. copyright B. trademark C. contract D. patent
D
A condition where people tend to perceive themselves in terms of their class background and this shapes their relationships with members of other classes is known as: A. economic classification. B. social mobility. C. class mobility. D. class consciousness.
D
A study by the OECD, whose members include the 20 richest economies in the world, noted all of the following except: A. the gap between the poorest and richest segments of society in some OECD countries widened. B. in almost all countries real income levels rose over the 20-year period studied. C. falling unemployment rates brought gains to low-wage workers and fairly broad-based wage growth. D. the gap between rich and poor had narrowed in all OECD countries
D
According to Max Weber: A. principles embedded in Hinduism encourage high levels of entrepreneurial activity. B. Hindu values emphasize that individuals should be judged by their material achievements. C. pursuit of material well-being makes the attainment of nirvana easier. D. devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants.
D
According to World Bank numbers, A. developing nations currently account for more than 60 percent of world economic activity. B. rich nations currently account for more than 70 percent of world economic activity. C. today's rich nations may account for 55 percent of world economic activity by 2020. D. today's developing nations may account for more than 60 percent of world economic activity by 2020.
D
According to _____, the social responsibility of business is to increase profits, so long as the company stays within the rules of law. A. the naive immoralist B. the righteous moralist C. cultural relativism D. the Friedman doctrine
D
According to the naive immoralist: A. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. B. the social responsibility of business is to increase profits, so long as the company stays within the rules of law. C. ethics are nothing more than the reflection of a culture. D. if firms in a host nation do not follow ethical norms then the manager of a multinational should also not follow ethical norms there
D
Antitrust laws in the United States are designed to: A. encourage business practices designed to monopolize a market. B. discourage private ownership. C. restrict privatization. D. outlaw monopolies.
D
Article 1 of the United Nations' Universal Declaration of Human Rights states: "All human beings are born free and equal in dignity and rights." This best echoes: A. cultural relativism. B. Friedman doctrine. C. the righteous moralist approach. D. Kantian ethics.
D
At the Doha Round of the WTO in late 2001, A. the WTO was established. B. GATT was extended to include services. C. world trade volume increased. D. an agenda was established to phase out subsidies to agricultural producers
D
Establishing _____ involves a business' resolve to place moral concerns ahead of other concerns in cases where either the fundamental rights of stakeholders or key moral principles have been violated. A. a veil of ignorance B. a difference principle C. moral imagination D. moral intent
D
Identify the United Nations body that establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations. A. IMF B. GATT C. WTO D. CIGS
D
If the critics of globalization are correct, all of the following things must be shown except: A. the share of national income received by labor, as opposed to the share received by the owners of capital should have declined in advanced nations. B. even though labor's share of the economic pie may have declined, living standards need not deteriorate if the size of the total pie has increased sufficiently to offset the decline in labor's share. C. the decline in labor's share of national income must be due to moving production to low-wage countries, as opposed to improving production technology and productivity. D. economic growth in developed nations has offset the fall in unskilled workers' share of national income, raising their living standards.
D
In a ____ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning. A. market B. private C. command D. mixed
D
Interdependent political, economic, and legal systems of a country make up its: A. administrative agenda. B. socioeconomic fabric. C. economic environment. D. political economy.
D
Justice theories of business ethics focus on: A. the moral worth of actions or practices. B. minimum levels of morally acceptable behavior. C. fundamental rights and privileges that transcend national boundaries. D. the attainment of a just distribution of economic goods and services.
D
Technological innovations have facilitated all of the following except: A. globalization of production. B. globalization of markets. C. creation of electronic global marketplaces. D. creation of absolutely homogeneous consumer markets
D
The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states. A. International Development Association B. World Bank C. International Court of justice D. World Trade Organization
D
The idea that businesspeople should consider the social consequences of economic actions when making business decisions and that there should be a presumption in favor of decisions that have both good economic and social consequences is known as: A. business ethics. B. noblesse oblige. C. ethical dilemma. D. social responsibility.
D
The idea that universal notions of morality transcend different cultures is implicitly rejected by: A. the righteous moralist. B. the naive immoralist. C. the Friedman doctrine. D. cultural relativism.
D
The most global markets currently are markets for: A. services. B. consumer goods. C. consumer durables. D. industrial goods.
D
The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines: A. society. B. value systems. C. principles. D. culture.
D
This is a less rigid form of social stratification in which social mobility is possible. A. Social system B. Caste system C. Cultural system D. Class system
D
Which of the following countries has been the largest recipient of foreign direct investment and received about $70 billion a year in inflows in 2005 and 2006? A. Brazil B. Russia C. India D. China
D
Which of the following observations concerning Latin American countries is true? A. Complete restrictions on direct investment by foreign firms. B. Characterized by low growth, high debt, and hyperinflation. C. Debt and inflation are up compared to previous decades. D. Substantial opportunities exist, but are accompanied by substantial risks.
D
Which of the following statements about political systems and their interrelated dimensions is false? A. Systems that emphasize collectivism tend toward totalitarianism. B. Systems that place a high value on individualism tend to be democratic. C. Democratic societies can emphasize a mix of collectivism and individualism. D. It is impossible to have totalitarian societies that are not collectivist.
D
Which of the following statements about the use of spoken language is false? A. The nature of a language structures the way we perceive the world. B. The language of a society can direct the attention of its members to certain features of the world rather than others. C. Countries with more than one language often have more than one culture. D. Most people prefer to converse in English rather than their own language.
D
Which of the following statements about values and norms of a culture is not true? A. The values and norms of a society do not emerge fully formed B. They are the evolutionary product of a number of factors C. They are influenced by religion D. They do not influence social structure
D
Which of the following, in a business setting, is taken to mean benevolent behavior that is the responsibility of successful enterprises? A. Sullivan's principles B. Ethical dilemma C. Tragedy of the commons D. Noblesse oblige
D
_____ are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like. A. Values B. Beliefs C. Mores D. Folkways
D
Managers of international business can do all of the following to make sure ethical issues are considered in business decisions except: A. favor hiring and promoting people with a well-grounded sense of personal ethics. B. build an organizational culture that places a high value on ethical behavior. C. make sure that leaders within the business do not articulate the rhetoric of ethical behavior. D. develop moral courage.
c