INB study Guide UNCW Midterm

The widening set of interdependent relationships among people from different parts of the world is known as ________. A) globalization B) offshoring C) franchising D) outsourcing

A) globalization

In polychronic cultures, ________. A) members are easily distracted and are inclined to do many tasks at once B) people view time as linear and punctuality as a virtue C) managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities D) managers and investors are impatient and want quick returns

A) members are easily distracted and are inclined to do many tasks at once

Which of the following refers to the extent to which people can tolerate risk in their lives? A) uncertainty avoidance B) long-term versus short-term orientation C) power distance D) individualism

A) uncertainty avoidance

1. Which of the following would NOT be considered an example of foreign direct investment (FDI)? A) cross-border purchase of a textile plant B) cross-border purchase of stocks C) purchase of capital assets of a foreign company D) purchase of foreign land for business operations

B) cross-border purchase of stocks

Globalization is characterized by ________. A) the demise of democracy within a nation B) national boundaries becoming less relevant C) the fortification of trade barriers D) rigid foreign relations policies

B) national boundaries becoming less relevant

________ consists of specific learned norms based on attitudes, values, and beliefs of a group of people. A) Ethnology B) Civilization C) Culture D) Doctrine

C) Culture

________ are purchases of foreign financial assets for a purpose other than control and give relatively short term interest. A) Foreign direct investments B) Global business investments C) Foreign portfolio investments D) Indirect investments

C) Foreign portfolio investments

2. Which of the following is NOT an example of a cross-cultural risk factor? A) negotiation patterns B) decision-making styles C) costs of production D) ethical practices

C) costs of production

Fluctuating exchange rates are an example of which of the following? A) country risk B) political risk C) currency risk D) cross-cultural risk

C) currency risk

A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a ________. A) dummy corporation B) shell corporation C) multinational corporation D) domestic corporation

C) multinational corporation

Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other? A) to attack problems jointly that one country acting alone cannot solve B) to deal with issues that lie outside the territory of any nation C) to gain reciprocal advantages D) to establish a common language

D) to establish a common language

A culture in which people prefer to handle tasks sequentially is a polychronic culture.

False

In a democracy, ________. A) citizens have the right to participate in the decision-making process B) the opportunity to truly participate in the political process is restricted to a select few C) the court system is directly supervised by the political system D) the rights of the individual are merged with the state

citizens have the right to participate in the decision-making process

Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges? A) collectivism B) democracy C) individualism D) anarchy

individualism

A(n) ________ is a type of trade penalty imposed on one or more countries by one or more other countries. A) confiscation B) expropriation C) subsidy D) sanction

sanction

Which of the following would most likely be used in a totalitarian system to promote unconditional support for the official ideology? A) privately owned media outlets B) a parliamentary system C) state control of the education system D) a representative legislative body

state control of the education system

Currency risk refers to the risk posed by adverse fluctuations in exchange rates.

true

Where future orientation is high, people are more willing to delay gratification by investing.

true

Which of the following statements would most likely be made by a SUPPORTER of globalization? A) Globalization encourages the adoption of uniform and superior standards for combating environmental problems. B) Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources. C) Global competition discourages resource-saving technologies, which are costly. D) Air pollution and toxic runoff problems increase with global economic growth.

A) Globalization encourages the adoption of uniform and superior standards for combating environmental problems.

Managers with a geocentric view of the world ________. A) are generally better at understanding and accommodating similarities and differences among cultures B) ritually avoid analyzing awkward situations in cross-cultural encounters C) have a strong preference for ambiguity D) tend to view other cultures through the lens of his/her own culture

A) are generally better at understanding and accommodating similarities and differences among cultures

Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. Topsy Turvey Toys buying its merchandise from Ureshi Toys is an example of ________. A) importing B) exporting C) outsourcing D) insourcing

A) importing

Feminine cultures tend to emphasize ________. A) interdependence among people B) accumulation of wealth C) ambition D) competitiveness

A) interdependence among people

Dan discusses an investment opportunity that involves the purchase of selected securities from the Chinese stock market. This opportunity represents which type of international investment? A) indirect production B) international portfolio investment C) foreign direct D) domestic securities

B) international portfolio investment

Which of the following managers portrays high uncertainty avoidance? A) Greg manages the market development fund team for a leading computer manufacturing firm. He is entrepreneurial and makes decisions quickly under tough situations. B) James is the business head of marketing in a leading automobile manufacturing company. He coaches his team members to become accustomed to risk and organizational change. C) Henry is the managing editor at Paes publications. He emphasizes careful evaluation of all options and ensuring they are consistent with company policies, which often slows down the progress. D) David manages the technical team at TR Solutions. He is open to different opinions from team members and is not threatened by differing opinions.

C) Henry is the managing editor at Paes publications. He emphasizes careful evaluation of all options and ensuring they are consistent with company policies, which often slows down the progress.

Which of the following is true about low-context cultures? A) People belonging to low-context cultures do not prefer explicit communications. B) Low-context cultures emphasize an indirect and polite face-saving style of communication. C) Low-context cultures rely on elaborate verbal explanations, putting much emphasis on spoken words. D) People belonging to low-context cultures view communication as a means to promote smooth, harmonious relationships.

C) Low-context cultures rely on elaborate verbal explanations, putting much emphasis on spoken words

Olive oil prepared in a small Italian oil press factory and sold by large supermarkets in the United States is an example of a ________. A) net national product B) U.S. export C) U.S. import D) gross domestic product

C) U.S. import

High power-distance countries are characterized by ________. A) organizations that grant a high degree of autonomy to lower-level employees B) a strong desire to minimize gaps between the powerful and the weak C) a relative indifference toward social inequalities D) a relative equality in terms of income and power

C) a relative indifference toward social inequalities

Black and Decker produces tools at a plant in North Carolina and ships the tools to retailers in England. This is an example of which type of international business activity? A) merchandising B) importing C) exporting D) trading

C) exporting

Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification. Ureshi Toys selling its products to Topsy Turvey Toys is an example of ________. A) outsourcing B) insourcing C) exporting D) importing

C) exporting

________ is the seizure of corporate assets without compensation. A) Confiscation B) Expropriation C) Embargo D) Sanction

Confiscation

An ethnocentric orientation positively impacts the ability of managers to manage business projects and new business practices abroad.

False

In societies with low uncertainty-avoidance, companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity

False

________ is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return. A) Governmental risk B) Operating risk C) Transaction risk D) Political risk

Political risk

Exporting is an entry strategy involving the sale of products or services to customers located abroad.

True

Firms are sometimes motivated to enter new markets because of unfavorable conditions in the home market, such as regulation or declining local industry sales.

True

Governments have facilitated economic integration by lowering barriers to international trade and investment, harmonizing their monetary and fiscal policies within regional economic integration blocs.

True

In cultures with a monochronic view of time, people view time as linear, managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities.

True

In deal-oriented cultures, managers focus on the task at hand and prefer getting down to business.

True

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens. A) customary B) common C) civil D) theocratic

civil

A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution. A) theocratic B) common C) customary D) civil

common

International business today is predominantly the domain of large, multinational companies.

false

The term "________ culture" describes a country in which the norm is a money-and-things orientation and a belief that it's better to "live to work" than to "work to live." A) high masculinity B) physiological C) non-fatalistic D) high-femininity

high masculinity

The ________ of a country specifies the rules that regulate behavior, the processes by which laws are enforced, and the procedures used to resolve grievances. A) political system B) political philosophy C) philosophical orientation D) legal system

legal system