IBM part 1 MC

When nations and corporations were ranked by GNI and total sales, respectively, for 2016, how many had GNI greater than the total annual sales of Walmart Stores? A) 73B) 32C) 24D) 59

24

What percentage of global output is now bound for international trade? A) 10 percent B) Less than 5 percent C) almost 50 percent D) 60 percent

60 percent

Who is credited with being the first person to coin the term "globalization?" A) John Keynes B) Theodore Levitt C) Sigmund Freud D) James Wolfensohn

Theodore Levitt

Overall, what has occurred with the dollar volume of service exports worldwide? A) The dollar volume of exports has maintained a low, but consistent, rate. B) Service exports have decreased with the advent of competition. C) There has been an absolute increase. D) There has been no change.

There has been an absolute increase.

An international manager has three choices when deciding how to employ a technique used in domestic operations to an international operation: transfer it intact, not use it, or A) provide it to the competition. B) adapt it to customization. C) produce it in mass quantities. D) adapt it to local conditions.

A) provide it to the competition. B) adapt it to customization. C) produce it in mass quantities. D) adapt it to local conditions.

Which group of renewable fuels is derived from organic materials whose energy is supplied by photosynthesis? A) biomass B) geothermal C) solar photovoltaic D) shale

biomass

The national defense argument for trade restrictions has been used in the United States by the Trump administration for imposing tariffs on A) subway cars. B) uniforms. C) steel. D) ethanol.

steel.

Nationalization and privatization are implemented by A) big business. B) the government. C) international affiliates. D) consumers

the government.

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

10 percent

What is an argument presented by opponents of globalization? A) A report by the Labor Secretariat for the North American Free Trade Agreement (NAFTA) reported that more than half of firms surveyed used threats to close U.S. operations as a tool to fight union-organizing efforts. B) Although labor standards in developing countries are usually lower than in industrialized countries, they are rising. C) Multinationals investing in host nations pay higher wages, create new jobs at a faster rate, and spend more on R&D than do local firms. D) Developing countries may feel that lower-cost labor constitutes their competitive advantage and that if they are forced to implement more stringent labor standards, it may damage their prospects for improved economic development.

A report by the Labor Secretariat for the North American Free Trade Agreement (NAFTA) reported that more than half of firms surveyed used threats to close U.S. operations as a tool to fight union-organizing efforts.

Who advocated the early attempt to develop an international trade theory in response to the practice of mercantilism? A) David Ricardo B) Raymond Vernon C) Stefan Linder D) Adam Smith

Adam Smith

Inland waterways provide inexpensive access to interior markets and are significant in every continent except A) Australia. B) North America. C) Africa. D) Asia.

Australia.

Which countries have become more important trading partners to the United States as suppliers of electronic products? A) Canada and Mexico. B) China and Canada. C) Germany and the United Kingdom D) China and Malaysia

China and Malaysia

Rapid urbanization of populations combined with industrialization in the emerging markets is quickly shifting the world's economic center of gravity from A) the United States to South America. B) the Americas and Europe to Asia .C) Europe and Asia to Africa .D) China to India.

China to India.

The three nations that exported the largest amount of goods to the United States in 2017 were A) China, Canada, and Mexico. B) China, Mexico, and the United Kingdom. C) China, Japan, and Saudi Arabia. D) Canada, Mexico, and Japan.

China, Canada, and Mexico

The three largest markets for American exports of goods in 2017 were A) Japan, the United Kingdom, and China. B) Japan, Mexico, and the United Kingdom. C) Canada, Mexico, and China. D) Canada, Japan, and the United Kingdom.

Canada, Mexico, and China

Which country currently exports the most to the United States? A) Indonesia B) Canada C) Mexico D) China

China

Which country has the highest percentage of the world's capacity of wind power? A) China B) the United States C) Germany D) India

China

Which country ranked the highest in 2016 in terms of merchandise exports? A) United Kingdom B) India C) China D) United States

China

________ was the world's leading manufacturing country for about 1,800 years, until it was replaced by Britain in about 1840. A) The United States B) Germany C) India D) China

China

What is the correlation between population density and bodies of water? A) The larger the body of water, the lower the population level. B) There is no correlation between bodies of water and population density. C) Densely populated regions coincide with rivers, lakes, and seacoasts. D) Populations tend to cluster around lakes and rivers more than oceans.

Densely populated regions coincide with rivers, lakes, and seacoasts

What company was the first to issue stock and is often identified as the world's first multinational corporation? A) Dutch East India Compan yB) Ford Motor Company C) Ottoman Empire D) Singer Sewing Machine

Dutch East India Company

If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according to trade theory A) Ecuador should focus production on coffee and trade for other goods. B) Ecuador would do well to produce its own wheat rather than import it from Bolivia. C) Argentina should focus on producing coffee and trade for wheat. D) there will be a perfect trade balance between the two countries.

Ecuador should focus production on coffee and trade for other goods

How are exchange rates used in international trade? A) Exchange rates are used to convert from foreign to domestic currency. 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 set the costs of labor.

Exchange rates are used to convert from foreign to domestic currency.

________ refers to the transportation of any domestic good or service to a destination outside a country or region. A) Importing B) Foreign direct investment C) Exporting D) International business

Exporting

When examining the volume of international trade, how are goods and services currently represented? A) Exports of goods and services quadrupled between 1990 and 2013. B) Exports of services grew faster than trade in merchandise for the last 20 years. C) There are fewer goods traded than services. D) Goods and services have reached equal levels of trading volumes.

Exports of services grew faster than trade in merchandise for the last 20 years.

What is the second stage in the international product life cycle theory? A) The United States innovates and exports. B) Foreign competition appears in export markets. C) Import competition appears in the United States. D) Foreign production begins

Foreign production begins

What is one argument in support of globalization? A) Environmental issues are lessened through globalization. B) Globalization enhances access to health care for participants. C) Free trade enhances socioeconomic development .D) The process of globalization has enhanced the equalization of countries in terms of political and social economy.

Free trade enhances socioeconomic development.

________ refers to the transportation of any domestic good or service to a destination inside a country or region, from a foreign origination point. A) Importing B) Investing C) Exporting D) Divesting

Importing

What is the current status of nuclear power? A) It is growing insignificantly, except in developing countries. B) It has been growing. C) It has been rejected by France. D) It has been abandoned by all nations.

It has been growing

Tropical rain forests are A) a barrier to economic development. B) an important source of agriculture, due to their fertile soil. C) the equivalent of marshes along coasts. D) locations of significant rural population centers due to their bodies of water.

a barrier to economic development

Mercantilists believed that A) merchants should import goods to raise the level of living. B) governments should lower import duties. C) a nation should have an export surplus in order to accumulate precious metals. D) a nation should produce goods for which there is a comparative advantage.

a nation should have an export surplus in order to accumulate precious metals.

The capability of one nation to produce more of a good or service than another country for the same or lower cost of inputs is a(n) A) comparative advantage. B) absolute advantage. C) mercantilist advantage. D) trade surplus.

absolute advantage

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

accumulation of precious metals is an activity essential to a nation's welfare.

At Kaiser Manufacturing, the company pays import duties that are a stated percentage of the invoice value of the product. Which type of tariff does this company pay? A) countervailing B) specific C) compound D) ad valorem

ad valorem

The music and folklore associated with a society are one way to communicate a culture's A) ethnocentrism. B) polychronic time. C) uncertainty avoidance. D) aesthetics.

aesthetics.

Timmerson Corp. was frustrated to learn that it would have to pay the same import duty on shipments worth $100 as it did for shipments costing $2,000. What does the government have in place that creates this situation for Timmerson Corp.? A) an official price B) an embargo C) an ad valorem duty D) an absolute quota

an official price

An industry that has a limited number of competing firms, such as the U.S. mobile phone market in which four firms controlled 98 percent of the market in 2018, is known as A) perfect competition. B) a monopoly. C) an oligopolistic industry. D) deregulated.

an oligopolistic industry

Trompenaars's achievement versus ascription dimension describes social status based on what one does or who one is. In the United States, where people build who they are through work, social status tends to be A) based on achievement. B) ignored because the United States does not have classes. C) based on ascription. D) a subtle form of prejudice.

based on achievement

Culture exerts an influence on all business disciplines A) except accounting, which is objective. B) because they all aspire to be culturally central. C) because they exist in a social world in which culture operates. D) except finance and accounting, which are quantitative.

because they exist in a social world in which culture operates

Petroleum, a relatively cheap nonrenewable energy source, is A) in abundant supply but is not environmentally clean. B) being increasingly depleted and is expected to become extinct in 80 years. C) clean, cheap, and available, but most of the reserves are located in countries whose leadership is critical of the industrialized world. D) expected to run out in another 10 years and needs to be replaced with renewable energy sources quickly.

being increasingly depleted and is expected to become extinct in 80 years.

According to the theory of comparative advantage, trade can benefit A) the exporting country involved in a trade. B) neither country involved in a trade. C) both countries involved in a trade. D) the importing country involved in a trade.

both countries involved in a trade.

Cradle-to-cradle (C-2-C) design A) identifies differing levels of success among the national players in world markets. B) builds on endowment factor differentials. C) measures the impact of climate on development. D) closes the production loop so there is no waste.

closes the production loop so there is no waste

What is Hall's high- and low-context framework based on? A) communication styles B) level of industrialization C) presence of power in society D) scientific data

communication styles

A nation having absolute disadvantages in the production of two goods with respect to another nation has a(n) ___________ in the production of the good in which its absolute disadvantage is less. A) comparative advantage B) absolute advantage C) mercantilist advantage D) competitive advantage

comparative advantage

The automobile manufacturer decided it had 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 indicating internationalization for the manufacturer? A) political B) market C) cost D) competitive

competitive

Some countries impose both an ad valorem duty and a specific duty on a single import. What type of duty are these countries using? A) compound B) duplex C) secondary D) elite

compound

The trend for firms in regard to country risk assessment (CRA) is to A) avoid it as an added cost in competitive markets. B) concentrate much more on CRA in making decisions about foreign activities. C) use CRA in obviously dangerous locations, but only in those situations, to control costs. D) hire consultants to reduce CRA insurance costs.

concentrate much more on CRA in making decisions about foreign activities.

Trade barriers create costs that are paid ultimately by the A) government erecting the barrier. B) consumer. C) country exporting the goods. D) exporter.

consumer.

Hall's high and low context is based on communication styles, and specifically on the role of A) feedback. B) nonverbal behavior. C) the communication channel. D) context.

context.

According to Trompenaars, a culture's attitude toward the environment can range from A) peaceful to war-like. B) overwhelmed by aesthetics to dominating the environment. C) control over the environment to harmony with it. D) submission to atheism.

control over the environment to harmony with it.

Environment as used in the textbook involves the forces surrounding and influencing the life and development of the firm and is classified as A) primary and secondary. B) controllable and uncontrollable. C) domestic and foreign. D) representative and democratic.

controllable and uncontrollable.

When Corinne was introduced to the manager from the overseas office, she noticed he tended to lean in as he spoke with her. This made her uncomfortable, so she did her best to put some space between them during the meeting. What is causing Corinne to feel uncomfortable? A) aesthetics B) conversational distance C) material artifacts D) polychronic time constraints

conversational distance

What is the basic unit of institutions based on kinship? A) education B) wealth C) corporation D) family

corporation

A business that decides to increase sales by entering the international market may do so in order to create economy of scale. This would be an example of which driver of internationalization? A) political B) market C) competitive D) cost

cost

Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called the self-reference A) culture. B) values. C) criterion. D) customs.

criterion

Which element is included in Porter's diamond model of national advantage? A) demand conditions B) export conditions C) social conditions D) supply conditions

demand conditions

Tariffs often are set to A) encourage local input. B) decrease the import costs. C) stimulate imports. D) decrease consumer costs.

encourage local input

Since 1983, the proportion of world trade coming from the United States has A) increased by 20 percent .B) tripled. C) decreased overall. D) not changed.

decreased overall.

The sectors most frequently attacked by cybercriminals include A) defense, energy and utilities, and finance. B) retail. C) oil and gas. D) the auto industry

defense, energy and utilities, and finance.

79) Which of the elements in Porter's diamond model of national advantage takes into consideration the sophistication of a company's customers? A) export conditions B) factor conditions C) demand conditions D) government

demand conditions

From a business perspective, bodies of water often coincide with A) densely populated areas along seacoasts, lakes, and rivers. B) reduced manufacturing and increased tourism. C) higher levels of pollution. D) reduced levels of temperate climates.

densely populated areas along seacoasts, lakes, and rivers

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) deficit. C) customization. D) devaluation

devaluation

A major portion of the exports from developing countries go to ________ countries, and this proportion has been ________. A) developed; increasing B) developing; increasing C) developed; d) developing; decreasing

developed; decreasing

The North-South divide draws on climatic differences to explain A) political differences. B) trade patterns. C) differences in human development. D) cultural differences.

differences in human development.

The two components of foreign investment include portfolio investment and A) exporting. B) importing. C) government tariffs. D) direct investment.

direct investment.

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) subtle, nuanced and indirect: Meaning accrues through not exactly what is said or done. C) unprepared and wary: The message is in the context. D) ready to act: Communication will happen regardless of cultural differences.

direct, unsubtle, and unambiguous: What you say is what you mean

Customs procedures in many countries often A) are transparent and fair. B) discriminate against imports or favor exports. C) are online and impersonal. D) aid importers and exporters in estimating their total costs.

discriminate against imports or favor exports

When gross national income rates drop significantly, it affects a company's environment. Which type of external force does this represent? A) technological lB) legal lC) physical lD) economic

economic

Environmental sustainability is both local and global because A) environmental conditions do not recognize national borders. B) governments are not prepared to address environmental issues beyond the UN. C) business has become global, so sustainability must follow the trend. D) it is a political issue as well as an academic one.

environmental conditions do not recognize national borders

One argument against globalization is that it creates a decline in A) socioeconomic development. B) better jobs. C) professional development. D) environmental conditions.

environmental conditions.

"Express kidnapping" targets A) expatriates. B) legislators. C) home country nationals. D) domestic affiliates

expatriates.

When considering where to export, advantages to managers of focusing on a nation that is already a sizable purchaser of goods coming from the home country include the fact that A) the cultures of the two countries should be relatively similar and compatible. B) the climate for foreign direct investment in the importing nation is relatively favorable. C) export and import regulations are not insurmountable. D) the two countries are part of the same regional trade agreement.

export and import regulations are not insurmountable.

Nations encounter a trade surplus when the value of A) exports exceeds the value of imports. B) imports and exports doesn't change. C) imports exceeds the value of exports. D) imports and exports is balanced

exports exceeds the value of imports

Trompenaars's neutral vs. affective dimension is used to determine how a culture A) regulates behaviors. B) respects individual or group behaviors. C) expresses emotions. D) values work over social life

expresses emotions

Gabriel Industries is located near a port city which allows it to ship products easily overseas to its international customers. The geographic location of the company is an example of a(n) A) sociocultural commodity .B) labor standard .C) external force .D) internal force.

external force.

Governments nationalize private firms in order to A) extract money from the firms when the firms are suspected of concealing profits. B) decrease exports to balance the balance of payments. C) learn about business development experientially. D) assist firms in making greater profits to boost the economy

extract money from the firms when the firms are suspected of concealing profits.

When governments nationalize a firm, they don't seek to A) extract more money from the firm. B) increase the firm's profitability. C) preserve jobs. D) sell the firm to foreign investors

extract more money from the firm

Which element in Porter's diamond model of national advantage distinguishes between the land a company owns and the transportation systems available for it to use? A) competitive conditions B) export conditions C) factor conditions D) supply conditions

factor conditions

The cybercrime context is described as A) fluid, so the learning process is ongoing, because cyber criminals are bright and quick. B) relatively static, so a firewall can be effective for a good six months in this environment. C) rapidly evolving, so that cybercrime will soon be eliminated. D) increasingly competitive, with switchovers between security personnel and criminals.

fluid, so the learning process is ongoing, because cyber criminals are bright and quick.

Real Country Boots was surprised when its marketing campaign featuring a cowboy fell flat in some South American countries but prospered in the United States. They later determined that a cowboy was considered "just another job" in parts of South America so it held little appeal to consumers. In this instance, the company used what aspect of aesthetics incorrectly? A) gift-giving B) nonverbal communication C) folklore D) art

folklore

In 2016, what was the included in the five largest categories of U.S. goods imported from China? A) aircraft B) grains C) automobiles D) footwear

footwear

Which of the environments associated with a company refers to the uncontrollable forces originating outside the home country? A) domestic B) foreign C) international D) national

foreign

Harrison Manufacturing, based in Toledo, 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) intrastate commerce .B) economies of scale. C) importing and exporting. D) foreign direct investment.

foreign direct investment.

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?

foreign, domestic, international

The total level of outward FDI worldwide increased about ________ between 1990 and 2018. A) threefold B) fivefold C) ninefold D) fourteenfold

fourteenfold

According to opponents of the globalization of trade and investment, A) free trade benefits all nations and workers .B) globalization has caused a dramatic decline in both the proportion and the absolute number of destitute people in the world .C) globalization has contributed to a decline in environmental and health conditions .D) globalization enhances preservation of the uniqueness of different cultures.

globalization has contributed to a decline in environmental and health conditions.

In 2016, what was included in the five largest categories of U.S. goods exported to China? A) furniture B) grains C) toys D) soft goods

grains

Unconventional sources of petroleum such as oil sands and shale are often grouped together and referred to as A) nonrenewable hopes. B) new sources. C) peak sources. D) heavy oil.

heavy oil

Map-Bridge-Integrate is a useful tool to A) build team-based groups. B) help figure out what matters when working across cultures. C) combat cultural diversity so a diverse group can be task focused. D) plan escape routes when the strategic plan fails.

help figure out what matters when working across cultures.

Understanding a person's body language and facial expressions would be especially important during business conversations in which type of culture? A) low context B) high context C) polychronic D) monochronic

high context

Hall suggests that communication tends to be implicit and indirect in A) the United States. B) high-context cultures. C) low-context cultures. D) Australia.

high-context cultures.

In Trompenaars's ascription culture, a person's identity is based on A) socioeconomic norms. B) his or her work achievements. C) his or her family lineage. D) educational diversity

his or her family lineage

Which nonrenewable energy source comes from shale? A) nuclear energy B) natural gas C) hydropower D) oil

hydropower

Agricultural trade restrictions are typically found A) in most countries. B) only in centralized economies. C) only in developing economies. D) exclusively in free market economies.

in most countries.

Shondra 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) indulgence vs. restraint B) pragmatic vs. normative C) masculinity vs. femininity D) uncertainty avoidance

indulgence vs. restraint

An LCA conducted for a T-shirt convinced Patagonia that A) recycled plastics were ecological choices for packing materials. B) industrially produced cotton used excessive amounts of water compared to organic cotton. C) South Africa provided a good source of raw materials. D) too many T-shirts were sold, and instead, should be recycled

industrially produced cotton used excessive amounts of water compared to organic cotton.

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

instability.

Two basic ways to understand the role of leadership are to provide direction for a collection of individuals or to A) limit the freedom of individual group members. B) integrate a group. C) link top management with workers. D) organize workers for production

integrate a group

After Nike built a plant in a rural area, it discovered that families were taking their children out of school to work in these plants. Instead of getting an education, these children were put to work which wasn't Nike's intent. Which characteristic of environmentally sustainable businesses does this demonstrate? A) alignment of relative industries B) equity in distribution within the supply chain C) limits on the Earth's resources D) interdependence of ecological, social, and economic systems

interdependence of ecological, social, and economic systems

The relationships among ecological, social, and economic systems in sustainable environments need to be A) discreet. B) renewable. C) positive. D) interdependent.

interdependent.

Triple-bottom-line (3BL) accounting is not a framework for sustainability because A) its measures are not standardized and therefore not comparable. B) it does not take into account social factors. C) Wall Street has not approved its use. D) foreign and domestic factors affect its use.

its measures are not standardized and therefore not comparable.

A business would obtain KRE insurance to cover losses associated with A) kidnapping situations associated with a foreign involvement. B) unpredictable international real estate investments. C) manufacturing operations that do not meet host country standards. D) higher tariffs when exporting to developing countries.

kidnapping situations associated with a foreign involvement

Brennan Audio Inc. is struggling in the industry because it doesn't have the staff with the right skills for the job. Which category of external forces does this represent? A) laborB) legalC) physicalD) technological

labor

What is an example of a resource endowment that a nation possesses? A) government B) land C) religion D) universities

land

The most obvious cultural distinction a company must take into account when deciding to undertake international business is A) religion. B) language. C) aesthetics. D) finance.

language

Culture is a group of shared worldviews, social rules, and interpersonal dynamics that is A) chosen consciously by each group to set themselves apart from other groups. B) learned, interrelated, and shared. C) used as a way to separate economic classes. D) a collection of noble pursuits including opera, art, ballet, and classical music

learned, interrelated, and shared

Geographical proximity contributes to A) limited knowledge of the country by its neighbors. B) standardized freight costs. C) the likelihood of trade relationships. D) distrust and contempt.

limited knowledge of the country by its neighbors

Quotas are a quantitative barrier that set A) limits, established by the importer. B) goals, established by the exporter. C) specific quantities of imports or exports, based on price. D) expectations on domestic and foreign sales.

limits, established by the importer.

The three characteristics of evolving sustainable business practices are A) local, global, and improving quality of life. B) environmental sustainability, quality of life sustainability, and triple bottom-line accounting. C) limits, interdependence, and equity. D) being green, centering on the customer's needs, and demonstrating simple kindness.

limits, interdependence, and equity

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

Adam Smith argued against mercantilism by claiming that A) governments, not market forces, should determine the directions, volume, and composition of international trade. B) a nation could trade advantageously if it had a comparative advantage. C) market forces, not government controls, should determine direction, volume, and the composition of international trade. D) customers' tastes are affected by income levels.

market forces, not government controls, should determine direction, volume, and the composition of international trade

The focus group participants were asked if they liked the website for Welby Appliance Corp. The majority responded that they did. Months later, the manufacturer was surprised when people in certain parts of the world were angry that no instructions came with the appliance they purchased and were told they could find them on the website. However, these particular customers didn't have access to a computer. In this instance, what department of Welby Appliance failed to take into account culture? A) finance B) marketing C) production D) human resources

marketing

Triple-bottom-line accounting is a good way for a business to A) measure its sustainability activities and share the results with stakeholders. B) compare its sustainability results with other firms in the same sector. C) receive government assistance for environmental issues. D) share evidence with its publics that sustainability is a costly endeavor.

measure its sustainability activities and share the results with stakeholders

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

measures low on the power distance dimension

Decision making in the international environment is considered ________ it is in a purely domestic environment. A) less complex than B) less demanding than C) more complex than D) exactly the same as

more complex than

Due to the expanding importance of foreign-owned firms in local economies, host governments have made their policies toward these companies A) more strict .B) more liberal .C) extremely conservative. D) inflexible.

more liberal.

When a government transfers the assets of a company from the public sector to the private sector, it is an example of A) privatization. B) isolationism. C) expansionism. D) nationalization.

nationalization.

The land, air, water, living organisms, and our ecosystem's formations that provide us with the goods and services on which our survival depends comprises our A) natural capital. B) national endowment. C) topography. D) national birthright.

natural capital

What is the cleanest of the nonrenewable fuel sources, and has become a substitute for oil? A) natural gas B) diesel C) nuclear D) kerosene

natural gas

Hydraulic fracking is associated with which nonrenewable energy source? A) wind power B) oil C) solar power D) nuclear energy

oil

One danger of using the culture frameworks introduced in Module 3 is that of applying them prescriptively because A) we'll be able to understand too much detail of a culture, and this will slow down decision making. B) we'll enrich our perceptions. C) our perceptions will become stereotypes, however sophisticated. D) our understanding of culture will be complex and obstruct decision making.

our perceptions will become stereotypes, however sophisticated

21) A basic cultural concept is A) our way is the best way. B) our way is not the only way. C) Western culture leads others. D) power goes to those who take it.

our way is not the only way.

The forces in the foreign environment differ from the domestic environment in that they originate A) concurrently in the home and host country .B) in the firm's home country. C) in only the host country .D) outside the firm's home country.

outside the firm's home country

Culture frameworks are helpful, but their use may A) oversimplify and limit our understanding and learning after a point. B) give too much emphasis on culture. C) result in too much empathy for a different culture. D) lead to further frameworks and further complication.

oversimplify and limit our understanding and learning after a point

Dunning's eclectic theory of international production states that if a firm is going to invest in production facilities abroad, it must have the following kinds of advantages: A) ownership-specific, location-specific, and internationalization. B) strategic, organizational, and technological. C) ownership-specific, location-specific, and internalization. D) technological, financial, and human resource.

ownership-specific, location-specific, and internalization

Ethnocentricity gets in the way of communication across cultural borders because A) it provides a channel for active listening. B) people with inferior cultures will not want to communicate. C) cultural borders promote an ethnocentric approach. D) people living in their own culture are often unaware of its influence on them.

people living in their own culture are often unaware of its influence on them

A market situation in which there is a sufficiently large number of well-informed buyers and sellers of a homogeneous product such that no individual participant has enough power to determine the price of the product, resulting in a marketplace that is efficient in production and allocation of products is known as A) absolute advantage. B) mercantilism. C) trade deficit. D) perfect competition.

perfect competition

Government stability has to do with A) policies that are permanent or change gradually. B) democratic processes and free elections. C) a commitment to military strength. D) leadership that listens to citizens and responds to their needs.

policies that are permanent or change gradually

Honest Yogurt Company of Denver, Colorado, was relieved when trade barriers on dairy products were lifted in Europe and the company could sell its products there. Which type of driver was affecting the company's ability to do business in Europe? A) political B) social C) technological D) market

political

What is one of the five major drivers of globalization? A) political B) social C) cultural D) economic

political

When a government sees that local industry is threatened by imports, it can threaten to erect import barriers to stop or reduce these imports. This is an example of a ________ driver of international business activity. A) technological B) market C) political D) cost

political

Greenpeace and other environmental groups oppose oil shale projects because they lead to A) polluted wastewater. B) ravaged rainforests. C) the greenhouse effect. D) over-developed deserts

polluted wastewater.

Holly is a multitasker and prefers to work on more than one project at a time at work. Edward Hall would say that Holly favors which approach to time? A) monochronic B) mnemonic C) polychronic D) ionic

polychronic

Henson Electronics Corp. decided to lower its export price in order to force the domestic producers in the importing nationsout of business. Once these competitors are gone, Henson Electronics plans to raise its prices. What is this an example of? A) social dumping B) subsidies C) predatory dumping D) greenfield investments

predatory dumping

The trend toward unification and socialization of the global community is illustrated by which of the following? A) progressive increases in barriers to foreign investment by most governments B) preferential trading arrangements that group several nations into a single market C) increased public ownership of much of the industry in formerly communist nations D) expanded barriers to trade by most governments

preferential trading arrangements that group several nations into a single market

According to supporters of the globalization of trade and investment, free trade A) creates more and better jobs. B) benefits all nations and workers. C) does not cause the loss of high-paying jobs. D) preserves the individuality of different cultures

preserves the individuality of different cultures

An example of political drivers of globalization would be A) privatization of industries. B) increased communication created by advanced communication technologies. C) globalizing product lines to decrease costs of production. D) the introduction of competitor firms.

privatization of industries.

Natalie purchases Open Source bottled water from France because it is derived from natural springs and the store brand doesn't say where it comes from. What is influencing Natalie's purchase decision? A) a trade surplus B) product differentiation C) overlapping demand D) economies of scale

product differentiation

The assembly line found in automobile manufacturing facilities is an example of how culture affects A) accounting. B) marketing. C) procurement. D) production.

production

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

promoted a search for sea routes from Europe to Asia.

Until just a few years ago, the United States levied a 54-cents-a-gallon import duty on foreign produced ethanol. Which of the reasons for restricting trade does this represent? A) impose sanctions B) protect an infant industry C) ensure fair competition D) provide for national defense

protect an infant industry

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

protect domestic industry from foreign, lower-cost producers.

One reason a government chooses to restrict trade would be to A) to eliminate domestic jobs. B) foster relations with other nations. C) to indicate an isolationist stance. D) protect domestic infant industries.

protect domestic infant industries.

Stakeholder theory pushes managers to be clear about how they want to do business, so it forces a business to A) recognize underlying values and principles. B) discuss profit center margins. C) strategize development from the top down. D) create decisive management.

recognize underlying values and principles.

80) 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) related and supporting industries B) demand conditions C) firm strategy, structure, and rivalry D) factor conditions

related and supporting industries

Historically, international business as a business practice is considered A) relatively new. B) to have existed before the Roman Empire. C) to have begun in China. D) a result of the rise of the Ottoman Empire.

relatively new.

In a low power distance culture, A) people will want direction, so top-down leadership styles are appropriate. B) seniority, rank, and title are important. C) first names are likely to be used in the office because the ideal is equality. D) relatives will be welcomed into the workforce

relatives will be welcomed into the workforce

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) absolute advantage C) mercantilist advantage D) resource endowments

resource endowments

In Trompenaars's affective culture, emotions are seen as A) responses to be freely displayed. B) private, and therefore, not displayed. C) a weakness, and therefore hidden. D) appropriate to share with family members only.

responses to be freely displayed.

An achievement culture is one in which members are A) rewarded with social status for who they are in a spiritual sense. B) rewarded for what they do, what they have accomplished, so what they are. C) not rewarded at all because achievement is a doing mentality. D) rewarded for their lineage.

rewarded for what they do, what they have accomplished, so what they are.

Densely populated areas coincide with A) rivers, lakes, and seacoasts. B) inland waterways. C) rich mineral reserves and rare earth deposits. D) low levels of environmental awareness.

rivers, lakes, and seacoasts.

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

sanctions seldom achieve their goal of forcing change in the offending country.

Foreign subsidiaries must obey the local laws. If they don't, they could be subject to A) legal action by the United Nations .B) legal action by the country of the parent company .C) seizure by the host government. D) reciprocal behavior by competitor companies.

seizure by the host government

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

selling a product abroad for less than its production cost or cost in the home market.

What material, when heated, will yield up to 25 liters or more of liquid hydrocarbons per ton of input? A) shale B) biomass C) natural gas D) light petroleum

shale

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

should produce the goods for which its absolute disadvantage is less.

The national defense argument for trade restrictions suggests that A) some industries, even if they are not competitive, may need protection from imports. B) the military is an area that can be exempted from import restrictions. 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, may need protection from imports

When Maddie got to her manager's office, she noticed the door was closed and decided the manager was busy so she should come back later. What aspect of culture is affecting her decision to return later? A) ethnocentric values B) spatial relationships C) performance issues D) conversational distance

spatial relationships

A country ________ when it decides to use its resources to produce only the product in which it has an absolute advantage. A) monopolizes B) specializes C) rejects trade D) globalizes

specializes

The theory suggesting that rivalry between firms in an oligopolistic industry will result in firms closely following and imitating each other's international investments in order to keep a competitor from gaining an advantage is known as A) internalization theory. B) internationalization theory. C) strategic behavior theory. D) competitive imitation theory.

strategic behavior theory.

Stakeholder theory is an understanding of how business works when it A) takes into account culture and environmentalism. B) rejects the importance of the bottom line. C) emphasizes planning. D) takes into account all identifiable interest holders.

takes into account all identifiable interest holders.

Jensen 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) technological D) competitive

technological

Relatively inexpensive international communication enables firms to "body shop," that is, transmit computer-oriented tasks worldwide to a cheap but skilled labor force. This is an example of a ________ driver of international business activity. A) political technological B) market C) technologically D) cost

technological

Sanjay is the director of operations for Fresh Farm 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 Sanjay's company internationalize? A) technological B) cost C) market D) political

technological

Accounting controls directly relate to a culture's assumptions about A) the basic nature of people. B) inventory policy. C) efficiency. D) leadership.

the basic nature of people

The consumption of natural gas is increasing because it is A) the least expensive of the fossil fuels. B) a nonrenewable energy source. C) comparable to oil-producing shale. D) the cleanest-burning of the fossil fuels.

the cleanest-burning of the fossil fuels.

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

the context carries much of the communication

The theory of overlapping demand explains A) how international trade in manufactured goods will be linked to gross national income. B) why companies will add excess capacity to their production systems. C) the existence of similar preferences and demands among countries with similar income levels. D) where competitive clusters will occur.

the existence of similar preferences and demands among countries with similar income levels.

Monochronic time is best illustrated by A) the flight schedule at an airport. B) a rock concert. C) the multitude of activities required by new parents. D) individual sleep patterns.

the flight schedule at an airport

The North-South divide is a faulty explanation of A) the intellectual and economic development that has excelled in northern areas. B) the U.S. Civil War. C) why urban populations tend to be richer than rural populations. D) the social forces that support agricultural development in developing economies

the intellectual and economic development that has excelled in northern areas.

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

the judgment of something depends on the situation

Counterarguments to the "protect domestic jobs from cheap foreign labor" argument include that A) the labor rate is not all of the labor cost. B) wage rates are incidental. C) cheap foreign labor is a natural occurrence. D) comparative advantage recognizes cheap labor as a competitive right.

the labor rate is not all of the labor cost

The experience curve refers to A) the rising scale on which efficiency improves as a result of cumulative experience and learning. B) the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases. C) the stage in the product life cycle where companies export products for the first time. D) the lack of a suitable workforce to complete a task.

the rising scale on which efficiency improves as a result of cumulative experience and learning.

The kinds of forces in the foreign environment are ________ those in the domestic environment except that they occur in foreign nations. A) different from B) the same as C) less demanding than D) more stringent than

the same as

The most common form of direct government participation in trade is A) the subsidy. B) shipping on national vessels. C) import duties. D) export quotas.

the subsidy

Kinship and free association are examples of A) choices people make about their friendships. B) the two basic types of social institutions. C) social clubs that operate as microcosmic cultures. D) ethnocentric forms of communication

the two basic types of social institutions

Studies conducted by the World Bank indicate that tropical climates allow for A) the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites. B) the lack of need to provide heat and shelter that is present in northern climates. C) unparalleled trade. D) cultivation of citrus and four crops per year.

the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.

Trompenaars's diffuse cultures are called diffuse because A) their differentiation between public and private life is spread out freely (diffused). B) specific responsibilities are spread over a wide area, that is, nonhierarchical. C) they extend the concept of culture to religion and other institutions. D) diffusion exists to moderate cultural differences.

their differentiation between public and private life is spread out freely (diffused)

When companies rely on concentrating solar thermal power, what are they using to collect sunlight? A) water tanks B) mirrors C) buckets D) farmland

water tanks

Some nontariff barriers are difficult to discourage because A) they consist of government subsidies and standards. B) their development has been supported by local politicians. C) they build on nationalism and patriotism. D) they are established by consumers.

they consist of government subsidies and standards

Country risk assessment is a measure of the A) threat of nationalization. B) threat of losing an investment or not being paid. C) kidnapping rate. D) rate of unfunded exposures

threat of losing an investment or not being paid

Traditional approaches to business focus on the goal of creating profits, while the stakeholder approach forces a business A) to address its underlying values and principles. B) into a dialogue with unions and environmentalists. C) to dialogue with banks to establish community policies. D) to lay claim to territories of expertise.

to address its underlying values and principles

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

to protect their assets, including people and property.

When the value of imports into a nation exceeds the value of its exports, that nation is experiencing a(n) A) economy of scale. B) fixed market. C) competitive advantage. D) trade deficit.

trade deficit.

Some countries send out buying missions to other countries in order to find products to import because their exports are exceeding the value of their imports. In other words, the nations are experiencing a(n) A) economy of scale. B) absolute advantage. C) trade surplus. D) product differentiation

trade surplus

A country's location influences its trade relationships because A) trade tends to occur with neighbors, often in subtle ways. B) proximity breeds contempt, a phenomenon that influences trade. C) southern countries have to trade with northern ones, due to climactic realities in the South. D) competitive advantage dictates that no contiguous countries can have the same levels of trade.

trade tends to occur with neighbors, often in subtle ways

After college, Thomas moved from California to take a job overseas. He was surprised to find that the city he moved to had strict curfew laws and all the shops and restaurants closed by 10 pm. The culture he moved into seems to want to minimize unpredictable situations which reflects which of Hofstede's dimensions? A) uncertainty avoidance B) masculinity-femininity C) power distance D) individualism-collectivism

uncertainty avoidance

Hamlin Millworks is frustrated with the lobbyists who are currently trying to influence Congress to raise taxes for all corporations in the wood products industry. In the environment of Hamlin Millworks, these lobbyists are an example of A) a foreign environment. B) controllable forces. C) a domestic environment. D) uncontrollable forces.

uncontrollable forces

Product differentiation refers to the A) availability of a variety of goods in a single product category. B) the ability of one country to produce a product that another country cannot produce. C) the existence and demand for similar products among nations. D) unique differences companies build into their products.

unique differences companies build into their products.

According to Trompenaars's seven dimensions, which type of culture tends to be rule-based? A) universalist B) particularist C) individualist D) collectivist

universalist

Climate is probably the most important element of the physical forces as it sets the limits on A) annual rainfall, thus water supply. B) population growth patterns. C) what people can do physically and economically. D) expected FDI.

what people can do physically and economically

International business really began A) with the East India Company chartered in 1600. B) when Singer Sewing Machine put up a factory in Scotland in 1868. C) when Phoenician and Greek merchants sent representatives abroad to sell goods. D) when Colt Fire Arms set up a plant in England.

when Phoenician and Greek merchants sent representatives abroad to sell goods.

Trompenaars's universalism-particularism dimension addresses A) a culture's inclination to have a global foreign policy. B) whether rules or relationships regulate behavior. C) the degree to which the individual (particularist) is the focus of social attention. D) which matters most to people in the society, universal goodness or particularist emotions.

whether rules or relationships regulate behavior

World trade consists mostly of exchanges A) among nonbordering countries. B) between geographic regions. C) between state-owned enterprises .D) within geographic regions.

within geographic regions

At the beginning of 2018, the value of the outstanding stock of foreign direct investment of all nations totaled more than A) $3.4 billion. B) $8.7 trillion. C) $19.2 trillion. D) $30.8 trillion.

$30.8 trillion.

The volume of international trade in services exports in 2017, worldwide, was A) $5.4 trillion .B) $8.5 trillion. C) $12.3 trillion .D) $18.8 trillion.

$5.4 trillion

Jay-yeong is the finance director of a firm in Seattle. He often attends meetings for work and it is not uncommon for these meetings to overlap one another so he is finishing up with one while he should be at another. Trompenaars would say that Jay-yeong works at a company that reflects what dimension of time? A) ethnocentric B) polychronic C) theocentric D) monochronic

) polychronic

The marketing team decided to develop two promotional campaigns: one featuring slender models and the other using curvier models to address the cultural differences of their audience. With what aspect of culture is the marketing team concerned? A) artifacts B) gift-giving C) aesthetics D) verbal communication

aesthetics

The monopolistic advantage theory states that A) a firm that has a monopoly has a major advantage in overseas investment. B) FDI is made by firms in oligopolistic industries possessing technical advantages over local companies. C) a firm that has a monopoly domestically will have no competition making overseas investments. D) the firm making the overseas investment first has a monopolistic advantage.

FDI is made by firms in oligopolistic industries possessing technical advantages over local companies

A government protects its citizens when they are abroad in what way? A) A powerful country can send in the marines to protect citizens. B) A government can assert the rights of its citizens and that its laws follow its citizens, no matter where they are (extraterritoriality). C) Politicians can influence how a foreign country's rules are applied to its own nationals. D) Government embassies can provide information and emergency assistance, monitor and where appropriate, make protests

Government embassies can provide information and emergency assistance, monitor and where appropriate, make protests.

This country engaged in many privatizations in the aftermath of the 2008‒2009 financial crisis. A) Greece B) Germany C) the United Kingdom D) Portugal

Greece

Which cultural framework is based on communication styles? A) Trompenaars's dimensions B) the Globe study C) Hall's (high and low context) D) Hofstede's dimensions

Hall's (high and low context)

What is an example of an external force that represents financial factors affecting a business? A) consumer opinionB) geographic locationC) Interest ratesD) domestic laws

Interest rates

Easy Play Audio/Video Corp. has been selling audio and video equipment to the international market for six years. Recently, the company decided to drop its line of televisions because the United States is importing televisions at a lower cost than the company can make their television. Which stage of the product life cycle theory is the company currently in? A) Stage 1 B) Stage 2 C) Stage 3 D) Stage 4

Stage 4

How does climate affect the population of a region? A) It is the basis for intelligence and energy levels, per the North-South divide. B) It affects what people can do, physically and economically. C) It is an indicator of education and security. D) It allows for adjustment and motivation.

It affects what people can do, physically and economically

How has the United States responded to the activity of dumping? A) It only enacted antidumping measures in 2006. B) It enacted antidumping measures for its exporting companies as early as 1856. C) It became the first country to prohibit dumping into its own market in 1916. D) It welcomes dumping activity to boost tariffs.

It became the first country to prohibit dumping into its own market in 1916.

What is a characteristic of renewable energy? A) It will replace fossil fuels, due to price, depletion, or carbon emissions, within 10 years. B) It is essentially a political issue in developed economies. C) It is not actually renewable long term. D) It has outpaced growth in the nonrenewable sector in the United States.

It has outpaced growth in the nonrenewable sector in the United States.

What is the role of the home country in risk assessment? A) It has no role. What matters is the country in which the business is conducted. B) It is a significant consideration. C) It is used initially, but then more micro issues become the focus of CRA. D) Country risk does not involve political considerations at all.

It is a significant consideration

Why is it predicted that the use of coal as an energy source will decline? A) It is considered too new and unknown. B) It pollutes heavily. C) It creates additional tariff barriers. D) It is rejected by consumers but accepted by industry.

It pollutes heavily.

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

It prevents an imported good from being priced lower than the domestic good.

Why is sustainable business local and global simultaneously? A) It requires a simultaneous focus inside the business and widely outside it. B) Because all business is global, and all business requires a local presence. C) Managers of a global business encounter the exact same problems as managers of a local business. D) Because we have no global businesses that are sustainable unless they are also local.

It requires a simultaneous focus inside the business and widely outside it.

Which characteristic would be typical in a feminine culture? A) People live in order to work. B) Quality of work life is important. C) Environmental matters are a personal, not a business, concern. D) Strong variation between male and female roles.

Quality of work life is important

Which characteristic of environmental stability is a Peterson Mining Corp. taking into account when it installs special filters that promote clean air for the surrounding community? A) Resources are limited. B) Systems are interdependent. C) Equity in distribution must prevail. D) Free enterprise and buyer beware are sufficient monitors.

Resources are limited

Oomph Beauty Inc. is being scrutinized by the federal government for failing to control emissions from their plant that could damage the ozone layer. Which characteristic of an environmentally sustainable business is the company ignoring? A) Profit sharing is divisible. B) Supply chain equity is inevitable. C) Resources are limited. D) Stakeholders can vary in attitudes.

Resources are limited.

Green Fields Coffee Co. introduced its line of herbal coffees to the international market two years ago. They were well received and now foreign competitors are starting to appear. Which stage of the product life cycle theory is the company currently in? A) Stage 1 B) Stage 2 C) Stage 3 D) Stage 4

Stage 3

Nations whose mountains divide them into smaller regional areas include A) the United States, Mexico, and Canada. B) Switzerland, Afghanistan, China, and Colombia. C) Luxembourg, France, and Romania. D) Estonia, Latvia, and Lithuania.

Switzerland, Afghanistan, China, and Colombia.

What is one of the reasons suggested by Alfred Marshall for why firms tend to cluster together on a geographic basis? A) Production costs decline as facilities get larger. B) Efficiency improves as the result of cumulative experience. C) Competition will not enter the market. D) Technological information can be readily shared.

Technological information can be readily shared.

The international environment consists of which group of interactions? A) The domestic environmental forces and global environmental forces. B) The foreign uncontrollable forces and the domestic uncontrollable forces. C) The domestic environmental forces and the foreign environmental forces, as well as the foreign environmental forces of two countries when an affiliate in one country does business in another country. D) The domestic environmental forces and the foreign environmental forces, as well as the foreign environmental forces of all other countries.

The domestic environmental forces and the foreign environmental forces, as well as the foreign environmental forces of two countries when an affiliate in one country does business in another country

What is an example of an external force that can affect a company's environment? A) The marketing department decides that online advertising will work best for a new product introduction . B) The manufacturing plant purchases new equipment to automate a process. C) The newly-elected governor decides to raise property taxes. D) A human resource professional meets with staff to discuss hiring temporary help

The newly-elected governor decides to raise property taxes.

How does the Canadian Shield benefit or hurt Canada's potential for international business? A) The topography associated with this area does not support populations which means it would cost companies more to manufacture there. B) This is an indication of government protection in terms of lower export taxes. C) This is a guarantee to all Canadian consumers that imports will be limited to enhance existing manufacturing efforts. D) This refers to a core group of five companies that dominate production in the country.

The topography associated with this area does not support populations which means it would cost companies more to manufacture there.

Why is every western coast between 20 and 30 degrees north or south of the equator dry? A) The winds blow away from the land, carrying moisture with them. B) This is coincidental. Egypt, which has a source of water, can support a large population. C) The equator is a tropical area, and the heat leads to evaporation. D) Western coasts are not dry; it is the interior of continents that becomes arid desert.

The winds blow away from the land, carrying moisture with them.

Which statement describes economies of scale? A) They refer to the rising scale on which efficiency improves as a result of cumulative experience and learning. B) They are the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases. C) They are only relevant to manufacturing industries. D) They occur due to the presence of abundance resource endowments within a nation.

They are the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.

How do barriers to trade affect the citizens of a country? A) They are a political issue, but don't affect the cost of imports except marginally. B) They cost consumers billions of dollars per year. C) They save jobs in unprotected industries at $231,289 per job per year. D) They affect corporations but not citizens directly.

They cost consumers billions of dollars per year

How do the dimensions of Kluckhohn and Strodtbeck's framework help us to better understand other cultures? A) They are meant to help us decode kinship patterns. B) They present choices that cultural members make when they act. C) They help us decode evil. D) They help us to further understand beliefs and actions in other cultures.

They help us to further understand beliefs and actions in other cultures.

Deserts and tropical forests seem to be opposites, but have what trait in common? A) They are good vacation spots so are an economic stimulator. B) They have small populations on their edges. C) They separate markets, thereby increasing transportation costs. D) They are hospitable to insects.

They separate markets, thereby increasing transportation costs.

Mexico and Canada are major U.S. trading partners because they have the benefit of lower freight charges and shorter delivery times. Why do these benefits exist for these two nations? A) They established these parameters in the NAFTA agreement. B) They share a border with the United States. C) They source production materials from China. D) They have established economies of scale for goods and services.

They share a border with the United States

The governments of some countries may decide they want to extract more money from businesses. What measure might they take to achieve this? A) They would nationalize businesses. B) They would enact isolationism. C) They would privatize businesses. D) They would enact expansionism.

They would nationalize businesses

Why would companies that don't have any foreign operations still need to acquire a global perspective? A) This will help the company provide more efficient domestic services. B) This would help the companies be more aware of new foreign competitors. C) This would help companies manufacture products more efficiently. D) This will help the company create more job opportunities.

This would help the companies be more aware of new foreign competitors.

Which type of subsidies are currently the focus of the World Trade Organization? A) agricultural B) health care C) industrial D) educational

agricultural

Material culture includes A) only things that are used in production processes. B) the makers of things but not those who use them. C) all human-made objects. D) all textiles and fabrics

all human-made objects.

The increased internationalization of business requires ________ to have a basic knowledge of international business. A) all managers B) managers of multinationals C) managers of transnationals D) managers of purely domestic operations

all managers

When considering whether or not to give a gift in a new cultural business situation, the first practical question you should ask is A) What is an acceptable gift? B) When should I give the gift? C) How many gifts should I get? D) Should I wrap the gift?

What is an acceptable gift

What is an example of the competitive driver of international business activity? A) a manufacturing company that lobbies its home country government for protection against imports B) a company that expands its local manufacturing facility in a foreign country in order to qualify for tax rebates C) a company that searches for markets with rising gross domestic product per capita and population growth D) a company that enters a foreign market to distract companies with similar products or services

a company that enters a foreign market to distract companies with similar products or services

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

a lifetime in the other culture

The stakeholder theory operates on A) a network of tensions—the competing internal and external demands that form the business context. B) the assumption that hierarchical decisions and command and control are best. C) a socialist premise that business has obligations to society at large. D) the cooperation of all who have a vested interest in the success of the business.

a network of tensions—the competing internal and external demands that form the business context.

The argument that free trade is the best strategy for advancing the world's economic development is considered A) one of the most contentious issues associated with economic globalization. B) one that has very little support in research studies. C) a proposition with which almost all economists agree. D) the basis for much protectionist legislation in emerging markets.

a proposition with which almost all economists agree.

Government administrations get concerned when the number and value of imports into the country are greater than the value of the country's exports. In other words, the administration is concerned about A) product differentiation. B) a trade deficit. C) absolute advantage. D) economies of scale.

a trade deficit

In some countries, when an import of a product reaches the government-specified amount, then no further imports of that product are allowed for the year. What type of quota does this represent? A) tariff-rate B) variable C) absolute D) allocated

absolute

The United States can produce more wheat for the same or lower costs than many other countries. This is an example of A) a trade surplus. B) economies of scale. C) absolute advantage. D) mercantilism.

absolute advantage

Joshua 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 Joshua taking into consideration? A) stereotypes B) spoken language C) gift-giving D) aesthetics

aesthetics

The domestic environment is composed of all the uncontrollable forces originating in the ________ that surround and influence the life and development of the firm. A) international arena B) host nation C) home country D) foreign country

home country

The U.S. government assigns specific amounts of sugar imports that can come from 40 nations. What type of quota does this represent? A) allocated B) absolute C) primary D) variable

allocated

The proportion of merchandise exports from Asia has ________ since 1983. A) increased by 20 percent B) tripled C) seen an overall decline D) almost doubled

almost doubled

Aesthetics is A) an area of psychology that deals with truth. B) a measurement used in the Middle East, similar to a hectare. C) an area of philosophy that deals with beauty. D) the area of medicine concerned with hygiene.

an area of philosophy that deals with beauty

Government protection of economic activities is A) an historical function of government. B) a recent responsibility of government. C) a socialist characteristic. D) stronger in democracies

an historical function of government

Australia's topography is A) an inland plain and desert, with population concentrated along the coasts. B) like North Africa's, with population along the water and then desert and mountains. C) desert except for the central highlands. D) similar to North America's, with dissecting rivers, mountains, and some desert area.

an inland plain and desert, with population concentrated along the coasts

A global mind-set is a set of skills that evidence 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.

an openness to diversity and an ability to work across cultural borders

The practice of terrorism contributes to A) an unstable environment that is detrimental to business. B) an increase in business opportunities. C) the warning signals on global values clashes. D) religious and political stability.

an unstable environment that is detrimental to business.

Natural resources are described as A) that which is alive in the natural world. B) anything provided by nature on which people depend. C) any raw material that becomes a component in a manufactured good. D) that which is used for food or fuel.

anything provided by nature on which people depend.

When we use frameworks to help us understand culture, it's important to remember that frameworks A) describe other cultures with precision. B) can't be used to describe our own cultures. C) are comparative, with our own culture the reference point. D) accurately describe reality.

are comparative, with our own culture the reference point

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

best learned about by observation of how it manifests itself

Foreign business denotes A) a business with operations in multiple nations. B) business conducted within a foreign country. C) an organization with multicountry affiliates. D) an organization that attempts to standardize operations worldwide.

business conducted within a foreign country.

An international business is defined as a(n) A) business whose activities involve crossing national borders. B) organization with multicountry affiliates. C) organization that attempts to standardize operations worldwide. D) organization engaged in domestic trade.

business whose activities involve crossing national borders

A company that decides to go abroad as a way to increase economies of scale is basing this decision on which driver of international business activity? A) cost B) political C) competitive D) market

cost

Social dumping occurs when an exporting country A) imposes an export tax on domestic businesses that export, to compensate for the opportunity cost to the domestic market. B) creates unfair competition based on lower costs because the exporting country provides little social support system to the worker. C) targets markets that consist of specific vulnerable groups in the importing country. D) exports goods that are not sellable in the domestic environment due to hazards and safety issues.

creates unfair competition based on lower costs because the exporting country provides little social support system to the worker

The purchase of an existing business in another nation is known as a A) cross-border acquisition. B) strategic alliance. C) greenfield investment. D) home country expansion.

cross-border acquisition.

What is one of the major groupings of nonquantitative nontariff barriers? A) ad valorem dutiesies B) customs C) quotas D) VERs

customs

Hofstede's masculinity-femininity dimension is a measure of a culture's A) distribution of roles between the sexes. B) inclination to be kind and caring or task-focused and linear. C) tolerance of gender-based workplace rules. D) commitment to work (masculine) or family (feminine).

distribution of roles between the sexes

Jameson Electronics Corp. 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? A) dumping B) VER C) quota D) sanctions

dumping

The theory that for a firm to successfully invest overseas, it must have not only ownership of unique knowledge or resources, but also the ability to dynamically create, sustain, and exploit these capabilities over time, is known as A) internalization theory. B) internationalization theory. C) strategic behavior theory. D) dynamic capabilities theory

dynamic capabilities theory.

The tendency toward an international integration of goods, technology, information, labor, and capital, or the process of making this integration happen, is called A) internationalization. B) international business. C) economic globalization. D) multinationalization.

economic globalization.

The traditional U.S. business model is A) economic. B) cultural. C) political. D) social.

economic.

Five years ago it cost Bernie's Bikes Inc. about $52 dollars to build a single bike. Today, it only costs the company about $31 because they have automated the process and are able to purchase component parts in larger quantities.What allowed the company to reduce the price to build a bike? A) product differentiation B) trade surplus C) economies of scale D) trade deficit

economies of scale

Keenan worked in his company's international office in Indonesia for many years. During his time there, political unrest caused many U.S. citizens, like Keenan, to have questions. What do governments put in place to represent their citizens in situations like this? A) legislatures B) justices C) embassies D) acquisitions

embassies

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 A) predatory dumping. B) social dumping. C) subsidy dumping. D) environmental dumping.

environmental dumping

Gwyn works for a paper manufacturer and recommended to the product development team that sourcing from recycled goods would help preserve the forests for future generations. What is Gwyn referring to? A) economies of scale B) environmental sustainability C) an absolute advantage D) a carbon disclosure project

environmental sustainability

One aspect of an environmentally stable business is to ensure that there are not vast differences in the distribution of gain. In other words, the business practices A) sovereignty. B) equity. C) susceptibility. D) intentionality.

equity.

A corporation would implement a country risk assessment in order to A) estimate the risk to business employees, property, and investment. B) predict risk of marketing errors, given cultural variables. C) predict responses of citizens to new product lines. D) analyze the impact of diversity in a country's workforce.

estimate the risk to business employees, property, and investment

When you assert that a certain aspect of your own culture is superior, you are probably exhibiting A) objective observation. B) ethnocentric behavior. C) your understanding of truth. D) material culture

ethnocentric behavior.

Molly has lived in Ireland her entire life and believes that the only way to do things is "the Irish way." This belief is an example of A) stereotyping. B) cultural adaptation. C) social hierarchy. D) ethnocentrism.

ethnocentrism

Some producers of goods use transshipping as a way to A) reduce shipping costs. B) avoid import administration. C) evade allocated quotas. D) evade local manufacture requirements.

evade allocated quotas

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) was less than 10 percent. B) was approximately 25 percent. C) exceeded 50 percent. D) was approximately one-third.

exceeded 50 percent

The cost of cybercrime to the perpetrator is A) exceedingly high, so as to be a deterrent. B) almost nonexistent, because few criminals are apprehended. C) difficult to determine, because security issues prohibit publication of trials. D) negligible, because few laws have been updated to include cybercrime.

exceedingly high, so as to be a deterrent

In high-context cultures, direct conversations that "tell it like it is" would be viewed as A) appropriate. B) expected. C) humorous. D) rude.

expected

The international product life cycle is used to A) explain how international trade in manufactured goods will be linked to gross national income. B) show that a nation will trade goods that can be produced with the production factor that is most abundant. C) explain the role of innovation in trade patterns. D) explain why mercantilism failed.

explain how international trade in manufactured goods will be linked to gross national income.

Low-context cultures such as the United States tend to have these kinds of communication patterns: A) subtle. B) nondirective. C) loudly voiced. D) explicit.

explicit

World Bank studies have shown that underdevelopment in tropical nations is often due to A) factors such as parasites and viruses that expand unchecked because of the lack of winter temperatures. B) mental slowness in people of the climates around the equator. C) socialist political regimes. D) lack of government investment in education.

factors such as parasites and viruses that expand unchecked because of the lack of winter temperatures

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

farmers

Hofstede's masculinity-femininity dimension suggests that, as an international manager, you might A) avoid feminine cultures because their production levels will lag. B) avoid highly masculine cultures because they violate EEOC standards. C) find men and women equally ready to assume leadership roles in a feminine culture. D) find women too competitive in a feminine culture.

find men and women equally ready to assume leadership roles in a feminine culture

A specific duty is a A) fixed sum charged for a specified number of units of the product. B) stated percentage of the invoice of the product. C) duty established for a given, articulated reason. D) rate charged in excess of a compound duty.

fixed sum charged for a specified number of units of the product.

The world's most important inland waterway system runs A) from the North Sea to the Black Sea. B) through the central United States along the Mississippi River to the Gulf of Mexico. C) into the center of South America along the Amazon. D) from the Gulf of Finland and St. Petersburg to Moscow.

from the North Sea to the Black Sea

Japan has been one of China's largest sources of imports, along with South Korea and the United States. Because there is still political enmity between China and Japan due to the Japanese occupation of parts of China during World War II, the best explanation for the present Japanese trade relationship with China is A) geographical proximity. B) Asian interdependence. C) that only Japan manufactures to Chinese standards. D) a common written language.

geographical proximity.

Heat sources that are drawn from steam reservoirs deep in the earth are known as A) nuclear power. B) hydropower. C) geothermal power. D) solar power.

geothermal power

The emissions released by burning coal are considered directly responsible for A) black holes. B) global warming. C) nuclear disasters. D) catastrophic illness

global warming

An opponent of globalization would agree 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.

According to opponents of the globalization of trade and investment A) globalization has contributed to an improvement in environmental and health conditions. B) globalization benefits all nations and workers. C) globalization has produced uneven results across nations and people. D) citizens from more globally integrated countries have lower levels of civil liberties and lower economic prosperity.

globalization has produced uneven results across nations and people.

The establishment of new facilities from the ground up is known as A) cross-border acquisition. B) exporting. C) greenfield investment. D) gray market trade.

greenfield investment

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

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

Among the cybercrimes that most often target businesses are A) hacking and data espionage. B) check kiting. C) prospecting and phishing. D) accessing unauthorized accounts.

hacking and data espionage.

Social dumping occurs when exporting producers A) have lower wage rates, social costs, and environmental regulations. B) allow for free migration, thereby exporting poverty. C) allow the import of environmentally sensitive waste. D) take knowing advantage of a social class system.

have lower wage rates, social costs, and environmental regulations

One motivation for government privatization is to A) have the businesses run more efficiently. B) punish corporate conglomerates. C) explore alternative revenues. D) exert increased government control

have the businesses run more efficiently.

Kya believes an annual review should be a reflection of an employee's accomplishments from the year while Marcus believes an annual review should be used to motivate an employee to work harder. Their beliefs are based on the culture in which they were raised. Which business function is being affected by culture in this scenario? A) marketing B) production C) human resources D) accounting

human resources

What is an example of an internal force that can affect a company's environment? A) economic downturn B) availability of natural resources C) international competitors D) human resources

human resources

Hudson Manufacturing prides itself on using a renewable energy source to run its plant. What is an example of a renewable energy source this company might use? A) petroleum B) coal C) nuclear power D) hydropower

hydropower

According to the text, personnel working in a foreign subsidiary are working in the international environment A) if they work and live in the foreign subsidiary's country. B) if they are responsible for the subsidiary's exports. C) if they are responsible for the management of the foreign subsidiary. D) if they are responsible for manufacturing activities within the foreign subsidiary.

if they are responsible for the subsidiary's exports.

Many firms are choosing to locate production close to available resources as a way to A) take advantage of factor endowments in overseas locations. B) increase transportation options. C) motivate employees. D) improve efficiency.

improve efficiency.

The monopolistic advantage theory suggests that firms in oligopolistic industries are likely to ________ foreign direct investment when they have technical and other advantages over indigenous firms. A) increase B) reduce C) ignore D) not change

increase

The main goal of tariffs is to A) increase the selling price of imported goods, thereby reducing competition for domestic producers. B) raise revenues for the importing government. C) reduce earnings for the exporting government, thereby creating a trade war. D) penalize importers for not buying domestic goods.

increase the selling price of imported goods, thereby reducing competition for domestic producers.

Since 1980, the United States proportion of world trade in commercial services has A) not changed. B) increased one-third. C) decreased overall. D) Increased more than fivefold.

increased one-third.

Many opponents of globalization believe that the gap between rich and poor has A) decreased .B) not been affected. C) disappeared. D) increased.

increased.

The forces over which the management does have some command are called A) domestic. B) external l.C) foreign D) internal.

internal

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) internalization theory. B) internationalization theory. C) strategic behavior theory. D) dynamic capabilities theory.

internalization theory.

Big Tire Bikes Inc. is headquartered in Maryland and does business within the United States, as well as within many countries in Europe and South America. This company is an example of a(n) A) domestic corporation. B) foreign subsidy. C) international affiliate .D) internationalbusiness.

international business

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) foreign-owned company. B) domestic affiliate. C) international affiliate. D) international business.

international business.

Jetson Manufacturing has manufacturing operations in the United States, Germany, Indonesia, and Brazil. Jetson Manufacturing is an example of a(n) A) state-owned corporation. B) distribution center. C) international affiliate. D) international company.

international company.

The theory of overlapping demand suggests that A) international trade in services will be more common between countries with high and low relative levels of labor costs. B) countries with similar geography will have similar demand traits. C) trade wars will usually occur between countries that have similar levels of income. D) international trade in manufactured goods will be more common between countries with similar levels of income

international trade in manufactured goods will be more common between countries with similar levels of income.

When interacting with an international affiliate, business professionals should remember that ethnocentrism A) can be beneficial to negotiations. B) is detrimental and noninclusive. C) is atypical behavior and uncommon in most cultures. D) should be practiced whenever possible.

is detrimental and noninclusive

One example of the effect of topography is A) isolated language groups, which require special marketing adjustments. B) regional metals markets. C) a unified China. D) equal distribution of populations

isolated language groups, which require special marketing adjustments.

Uncertainty avoidance describes the search for truth, according to Hofstede, because A) truth is primary to our human value system; everything else depends upon it. B) it describes how comfortable the culture's members feel in an unstructured situation. C) once you have truth, you can avoid change, which is always disruptive. D) truth describes reality.

it describes how comfortable the culture's members feel in an unstructured situation

Religion is a part of a group's culture because A) it is a symbol of worship. B) religion is culture. C) groups choose their religion, and culture is chosen. D) it influences behavior through attitudes and beliefs.

it influences behavior through attitudes and beliefs.

State-owned transnationals currently account for ________ of all transnational corporations. A) almost 15 percent B) nearly 100 percent C) about 50 percent D) less than 1 percent

less than 1 percent

Data have shown a clear and definitive link between A) protectionist legislation and enhanced economic welfare of a country. B) liberalization of trade and reduced disparity in personal income. C) government subsidies and the development of globally competitive industries. D) liberalization of trade and economic growth.

liberalization of trade and economic growth.

In high-context cultures, relationships tend to be A) short term. B) inconsistent. C) long term. D) pragmatic.

long term

Trading groups in close proximity would typically have the benefit of A) tariff barriers. B) lower freight costs. C) delayed deliveries. D) language differences.

lower freight costs.

In more dense populations, international managers can expect A) increased political discord. B) markets that respond well to word-of-mouth promotion. C) contrasting topographical features. D) lower marketing and distribution costs.

lower marketing and distribution costs

The Carbon Disclosure Project (CDP), unlike the Kyoto Protocol, a UN convention on climate change, is A) regulated by the EU. B) regulated by the U.S. C) controlled by the IMF. D) made up of corporate members.

made up of corporate members.

Government stability is a characteristic of a government that A) makes sudden radical policy changes. B) readily shifts alliances to maintain power. C) maintains predictability in fiscal, monetary, and political policies. D) maintains authoritarian rule over an extended period of time.

maintains predictability in fiscal, monetary, and political policies

Material culture includes A) manufactured goods. B) the services associated with marketable goods. C) objects of which the culture is proud. D) produced goods that affect the symbolism of a culture

manufactured goods.

Harman Advertising Agency, based in Toronto, decided to establish an operation in France because it was concerned that its competition would try to take over their clients in Europe, which represents 65 percent of their business. Which type of driver is responsible for this decision to go international? A) political B) technological C) cost D) market

market

What is identified in the text as being one of the five major drivers of globalization? A) monetary B) transportation C) cultural D) market

market

Estimates show there are ________ transnational corporations with hundreds of thousands of foreign affiliates. A) about 5,000B) fewer than 12,000C) more than 100,000D) nearly one million

more than 100,000

Compared to 1980, service exports in 2017 can best be described as A) decreasing due to more international corporations. B) struggling to flourish based on government restrictions. C) lower than they were in 1980.D) more than thirteen times larger.

more than thirteen times larger

Certain geologic structures have led to the development of separate languages within the same country. These barriers include A) political and cultural patterns. B) mountain barriers. C) linguistic tariffs. D) differentiating borders.

mountain barriers

The 17th and 18th centuries have frequently been termed the "Age of Mercantilism" because A) the merchant class was created during this time. B) the Americas were discovered. C) individual states were able to support themselves as more merchants were established. D) national power depended on the sponsorship and control of merchant capital.

national power depended on the sponsorship and control of merchant capital.

Trompenaars's dimension of internal vs. external direction is similar to Kluckhohn and Strodtbeck's relationship to A) religion. B) behaviors. C) nature. D) social life.

nature.

The level of merchandise exports worldwide were ________ larger in 2017 than they were in 1980. A) four times B) nearly six times C) two times D) nine times

nine times

Energy consumption by fuel type reveals that fuel use has been dominated since 2010 by A) renewable energy sources. B) nuclear energy and coal. C) nonrenewable energy sources. D) solar and wind power.

nonrenewable energy sources

Connor's manager told him not to make the "OK" sign with his hand when meeting with the representatives from France as that gesture is viewed as vulgar and inappropriate in their culture. Which aspect of culture is his manager referring to? A) spoken language B) material culture C) nonverbal communication D) religion

nonverbal communication

Instead of declining, which nonrenewable energy source, because of its lack of pollution and the rising price of oil, has seen significant growth? A) wind power B) nuclear power C) geothermal power D) petroleum

nuclear power

Tariffs on some products no longer serve their original purpose of protecting domestic producers but they are still levied by the government. What are these types of tariffs called? A) nuisance B) nontariff C) countervailing D) variable

nuisance

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

offset the effects of a subsidy

Heavy oil is considered A) oil that does not flow easily. B) the key to equalizing power in the oil industry. C) oil extracted from biomass that is reprocessed. D) Top grade oil drawn from wells.

oil that does not flow easily.

Trompenaars's specific-diffuse dimension has to do with A) social patterns for child-rearing. B) patterns for public and private life. C) regard for the individual or the collective. D) whether rules or relationships regulate behaviors.

patterns for public and private life

China's vast and mountainous terrain leads to A) many languages and dialects. B) political unity, as in Switzerland. C) economic disparities. D) population divergences.

political unity, as in Switzerland.

Governments provide stability by A) protecting business from unfair competition and from attacks and theft. B) pursuing open market values. C) fostering competition and enforcing nontariff barriers. D) supporting imports.

protecting business from unfair competition and from attacks and theft.

Government motivation for restricting trade includes A) protecting jobs, promoting defense, imposing sanctions, and protecting infant industries. B) increasing revenues through duties and tariffs. C) a desire for isolationism as a political strength. D) increasing domestic consumption and thereby domestic jobs.

protecting jobs, promoting defense, imposing sanctions, and protecting infant industries.

In a business setting, anthropologist Marcel Mauss viewed the ritual of gift-giving as a way to A) unfairly influence or bribe prospective customers/clients. B) obtain a huge advantage for international managers. C) show fondness. D) publicly acknowledge interrelationships and obligations

publicly acknowledge interrelationships and obligations.

The primary reason tariffs are put in place is to A) raise government revenue at the cost of importers. B) raise the price of imports, to protect domestic goods. C) punish countries over political issues. D) encourage foreign consumption.

raise the price of imports, to protect domestic goods.

Kendall was recently assigned to a management role in his company's overseas operation. He has been taken off guard several times when his employees responded negatively because they said he didn't take their culture into consideration when he made decisions. His employees are referring to a A) self-reference criterion. B) production orientation. C) self-fulfilling prophecy. D) marketing orientation.

self-reference criterion.

Peterson Soft Drink Corp. imports fruit flavors for use in its products. The company pays $0.86 per pound on every shipment. Which type of tariff does the company pay? A) ad valorem B) specific C) compound D) countervailing

specific

Jamie prefers to keep her work life and home life separate. She doesn't socialize with her work associates after-hours and doesn't discuss her family when she is at work. Which of Trompenaars's dimensions does this exemplify? A) achievement vs. ascription B) individualism vs. collectivism C) specific vs. diffuse D) universalism vs. particularism

specific vs. diffuse

A government that holds to predictable fiscal, monetary, and political policies is considered A) global. B) unstable. C) domestic. D) stable.

stable.

At Torno Manufacturing, the company identifies its purpose by having discussions with employees, vendors, community members, and other groups pertinent to the business. Which theory for a sustainable business does Torno Manufacturing follow? A) stakeholder theory B) footprinting C) limits theory. D) natural capital

stakeholder theory

What was Theodore Levitt referring to when he said that the future belonged to corporations that operated "as if the entire world were a single entity; [such an organization] sells the same things in the same way everywhere"? A) accommodation B) globalization C) standardization D) customization

standardization

The Food and Drug Administration in the United States works to protect citizens from harmful products and companies must meet the regulations it sets. Which classification of nonquantitative nontariff barrier does this represent? A) customs B) direct participation C) VER D) standards

standards

The theory of resource endowment explains A) why France sends cosmetics, wine, and clothing to Chile. B) that a nation will trade goods that can be produced with the production factor that is most abundant. C) why an automobile can be made either by hand or by a capital-intensive process. D) that a nation less efficient in producing a good has a comparative advantage.

that a nation will trade goods that can be produced with the production factor that is most abundant

In low-context cultures it is common to find A) subtlety and innuendo during conversations. B) that communication tends to be explicit. C) indirection is prized because it recognizes the ability of the other. D) leadership is mostly from behind, allowing the workgroup to self-direct.

that communication tends to be explicit

When considering the limits associated with sustainability, a company should address A) that environmental resources are exhaustible. B) the amount of renewable resources it takes to build the company's products. C) whether or not government approval is necessary when creating environmental controls. D) the best season or time of year in which to produce.

that environmental resources are exhaustible

Democratic nations that follow free-trade capitalism sometimes nationalize businesses, such as A) the U.S. bailout during the 2009 financial crisis, when the U.S. government took control of several large U.S. corporations. B) Canada's purchase of Hershey. C) The French purchase of Totale. D) the move from New York to Russia of a major sports team owned by a Russian.

the U.S. bailout during the 2009 financial crisis, when the U.S. government took control of several large U.S. corporations

An example of retaliatory trade restrictions is A) the U.S. response to the EU ban of hormone-treated beef. B) the EU restraint on Microsoft for bundling its product. C) the Japanese refusal to allow U.S. military equipment in Japan. D) China's tightening control of the export of rare earths.

the U.S. response to the EU ban of hormone-treated beef.

Examples of expropriation without compensation involve the following governments: A) the Unite States confiscated Iranian property in the United States and Cuba confiscated property during the Cuban revolution of the 1950s, and Zimbabwe confiscated land owned by white Zimbabwean citizens. B) China with Hong Kong and Japan with the Kuril Islands. C) the United Kingdom with the Falklands. D) Canada with northern Maine.

the Unite States confiscated Iranian property in the United States and Cuba confiscated property during the Cuban revolution of the 1950s, and Zimbabwe confiscated land owned by white Zimbabwean citizens.

According to the international product life cycle, which country has the largest population of high-income consumers and as a result, competition for patronage is intense? A) Canada B) China C) Japan D) the United States

the United States

Firms from __________ had the largest total outstanding stock of direct overseas investment at the beginning of 2018. A) Germany B) the United States C) the United Kingdom D) Japan

the United States

NAFTA and other treaties are the main reasons that most of Canada's exports go to A) Mexico. B) the European Union. C) Asia. D) the United States.

the United States

When considering where to export, advantages to managers of focusing on a nation that is already a sizable purchaser of goods coming from the home country include all of the following EXCEPT A) the business climate in these importing nations is already relatively favorable .B) import channel members (merchants, banks, and customs brokers) are experienced in handling import shipments from the exporter's area. C) satisfactory transportation facilities have already been established. D) the cultures of the two countries should be relatively similar and compatible.

the cultures of the two countries should be relatively similar and compatible.

Hofstede's individualism-collectivism measures A) the degree to which people in the culture are integrated into groups. B) the tendency to differentiate male roles. C) the degree to which social inequality is tolerated. D) the amount of social distance between relatives.

the degree to which people in the culture are integrated into groups

Unlike quotas, voluntary export restraints (VERs) are imposed by A) the importing country's government. B) the exporting country's government. C) either the importing or exporting country's government. D) the importing company.

the exporting country's government.

Hofstede's power distance dimension can be described as A) the expectation by individuals that uncertainty is possible. B) the expectation that power will be equally distributed amongst members of society. C) the extent to which society expects power to be distributed unequally. D) the expectation that uncertainty will be kept at a distance from society.

the extent to which society expects power to be distributed unequally

Foreign environmental forces often operate differently than domestic environmental forces because A) they typically carry the same value as domestic forces. B) they are easier to assess than domestic forces. C) the two forces do not affect each other. D) the forces are interrelated.

the forces are interrelated

The term globalization was first coined in a Harvard Business Review article in which the author maintained that A) new technologies were creating opportunities for creating mass customization of products. B) governments would be threatened by the emergence of global companies and would limit their development. C) the future belonged to global companies that sold the same things the same way, everywhere.D) increased differentiation of products would mean that costs of production would become a steadily declining proportion of the selling price.

the future belonged to global companies that sold the same things the same way, everywhere.

Kluckhohn and Strodtbeck's framework reveals that low-context cultures tend to focus on A) cultural traditions. B) the future. C) the collective. D) the past.

the future.

Ecologically sustainable businesses such as Patagonia recognize that doing business following the traditional approach, focusing on quarterly earnings, is not complete because it does not focus on A) the negative impact of the business, such as excessive water usage. B) the cost of environmental sustainability. C) consumer needs for green merchandise. D) triple bottom-line accounting.

the negative impact of the business, such as excessive water usage

The stakeholder model requires businesses to think about A) the stakeholders' interest in profitability. B) the network of tensions caused by competing demands. C) strategy in light of sustainability. D) the frequency of social issues faced by the stakeholders

the network of tensions caused by competing demands.

The rapid expansion of world exports since 1980 demonstrates that A) businesspeople can expect to meet lower levels of competition in their domestic markets. B) domestic business cannot compete with cheap imports. C) the opportunity to increase sales by exporting is a viable growth strategy. D) jobs will inevitably decline in developed countries due to import competition.

the opportunity to increase sales by exporting is a viable growth strategy

Topography, including mountains, deserts, plains, and bodies of water, greatly influence A) political relationships. B) the physical distribution of products and services. C) the local approach to education and health services. D) local attitudes toward industrially developed economies.

the physical distribution of products and services.

Parul told the members of the management team that the topography of North Carolina did not lend itself to their needs for the new manufacturing facility. What is Bethany referring to? A) the physical features of the area B) the availability of suppliers C) the number of competing firms in the area D) the available human resources

the physical features of the area

Kendrik decided not to take the overseas 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) verbal communication B) aesthetics C) unspoken language D) folklore

unspoken language

A way to measure a company's success in meeting its sustainable business goals is to A) examine the return on investment. B) use triple-bottom-line accounting. C) monitor the company in a social context. D) review the marketing materials.

use triple-bottom-line accounting.

According to Porter, the four variables he believes influence a firm's ability to gain a competitive advantage create a A) virtuous circle. B) consistent triangle. C) reliable square. D) redundant cone

virtuous circle.

Japan restricts the number of automobiles its manufacturers can export to the United States each year. What is this an example of? A) voluntary export restraint B) ad valorem tariff C) absolute quota D) sanction

voluntary export restraint

Examples of orderly marketing arrangements are A) voluntary export restraints. B) greenfield investments. C) variable levies. D) absolute quotas.

voluntary export restraints.

One of the problems associated with the "cheap foreign labor" argument for restricting trade is that A) wages don't account for all production costs. B) foreign competition will achieve an unfair advantage. C) inflicting economic damage might have reverse affects. D) the national defense must be kept at maximum levels

wages don't account for all production costs.

Henson Automotive wants to understand how much water the company is using when manufacturing its energy-efficient cars. What type of measure should the company take? A) water waste B) water footprint C) water pressure D) water emissions

water footprint