intern business ch1-5

Which of the following statements about individualism is true? Individualism promotes state ownership of the basic means of production, distribution, and exchange. Individualism creates an antibusiness environment. Individualism promotes globalization. Individualism and democracy go hand in hand.

Individualism and democracy go hand in hand.

Identify the incorrect statement about environmental regulations. Developed nations have substantial regulations governing the emission of pollutants, the dumping of toxic chemicals, and so on. Environmental regulations are often lacking in developing nations. Inferior environmental regulations in host nations, as compared to the home nation, can lead to ethical issues. Environmental regulations are similar across developed and developing nations.

Inferior environmental regulations in host nations, as compared to the home nation, can lead to ethical issues.

________ occurs when a firm exports goods or services to consumers in another country. Foreign direct investment Inward investment Outsourcing International trade

International trade

Which of the following is the most widely practiced theocratic legal system in the world today? Sikh law Islamic law Hindu law Jewish law

Islamic law

_____ are the handicaps that late entrants to a market might suffer. Government regulations Purchasing power disparity Black economy Late-mover disadvantages

Late-mover disadvantages

Which of the following statements about the use of spoken language is true? Most people prefer to converse in their own language rather than English. The language of a society does not direct the attention of its members to certain features of the world rather than others. Countries with more than one language often only have one culture. The nature of a language has no effect on the way we perceive the world

Most people prefer to converse in their own language rather than English.

Max Weber theorized that there was a relationship between Protestantism and the emergence of modern capitalism because? a)Protestantism promotes the hierarchical domination of religious and social life. b)Protestantism promotes blind loyalty to employers. c)Protestantism states that spiritual growth is more important than material wealth. d)Protestant ethics emphasize the importance of hard work and wealth creation and frugality.

Protestant ethics emphasize the importance of hard work and wealth creation and frugality.

The local grocery in a small southern city is the only option for the residents, so it has a monopoly on the grocery business there. When the population of the city grows and demand for groceries increases, what is the grocery store most likely to do? Increase output and keep prices constant. Increase output to drive prices down. Restrict output and let prices rise. Restrict output to drive prices down.

Restrict output and let prices rise.

_____ recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures. Cultural relativists Utilitarians Rights theories Kantian ethics

Rights theories

Political scientist _____ predicts that there will be a world that is split into different civilizations, each of which has its own value systems and ideology. Francis Fukuyama Samuel Huntington Hernando de Soto Amartya Sen

Samuel Huntington

Which of the following statements is true about a class system? In a class system, social position is determined at birth and cannot be changed during an individual's lifetime. Social mobility within a class system varies from society to society. A class system is a more rigid form of social stratification, compared to a caste system. A class system is a closed form of stratification.

Social mobility within a class system varies from society to society.

_____ is required for a business environment to be conducive to innovation and entrepreneurial activity. Government regulation of the market Strong legal protection of property rights State ownership of means of production Barriers to foreign trade and investment

Strong legal protection of property rights

Which of the following observations about the Foreign Corrupt Practices Act is true? There is enough evidence that it put U.S. firms at a competitive disadvantage. The act outlawed the paying of bribes to foreign government officials to gain business. The Nike case was the impetus for the 1977 passage of this act. The act originally allowed for "facilitating payments."

The act outlawed the paying of bribes to foreign government officials to gain business.

Managing an international business is different from managing a purely domestic business for which of the following reasons? International businesses have an added layer of U.N. regulations. International transaction Countries prefer to keep business transactions between domestic partners. The range of problems confronted is wider and more complex.

The range of problems confronted is wider and more complex.

Which of the following is true of the supporters of debt relief for HIPCs? They argue that new democratic governments should be forced to honor debts incurred by previous corrupt predecessors. They are working against the policies of the IMF and World Bank. They argue that free trade alone is sufficient to bring HIPCs out of poverty. They include Bono, the Dalai Lama, and Jeffrey Sachs among their ranks.

They include Bono, the Dalai Lama, and Jeffrey Sachs among their ranks.

Corporations can contribute to the global tragedy of the commons by pumping pollutants into the atmosphere or dumping them in oceans or rivers in locations with weak environmental standards. True False

True

For privatization to work, it must also be accompanied by a more general deregulation and opening of the economy. True False

True

Upon meeting a foreign business executive, a Japanese executive will hold his business card in both hands and bow while presenting the card to the foreigner. This is an example of ritual behavior. True False

True

Often, the code of ethics draws heavily upon documents such as the _____, which itself is grounded in Kantian and rights-based theories of moral philosophy. Foreign Corrupt Practices Act UN Universal Declaration of Human Rights Convention on International Business Transactions Convention on Combating Bribery of Foreign Public Officials

UN Universal Declaration of Human Rights

The _____ was established on October 24, 1945, by 51 countries committed to preserving peace through international cooperation and collective security. World Trade Organization G20 World Bank United Nations

United Nations

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states. International Court of justice International Development Association World Trade Organization World Bank

World Trade Organization

Which of the following is an example of intellectual property? a theater a music score a software business a laser-tag game

a music score

Ethical systems are? a set of moral principles, or values, that are used to guide and shape behavior. shared beliefs and rituals that are concerned with the realm of the sacred. routine conventions of everyday life. social rules that govern people's actions toward each other.

a set of moral principles, or values, that are used to guide and shape behavior.

Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects a)the increasing internationalization of business corporations. b)the increasing share of the United States in the total FDI stock. c)a slowdown in global economic activity. d)the decline in cross-border flows of foreign direct investment.

a)the increasing internationalization of business corporations.

Which of the following is a step involved in the deregulation of a command economy? adding price controls increasing restrictions on direct investment by foreign enterprises abolishing laws regulating the establishment and operation of private enterprises temporarily restricting international trade

abolishing laws regulating the establishment and operation of private enterprises

According to political scientist Samuel Huntington, the rise of Islamic fundamentalism is a response to the alienation produced by modernization. restricted access to formal education. restrictions associated with totalitarian regimes. corruption prevalent in planned economies.

alienation produced by modernization.

Under the veil of ignorance, everyone is imagined to be ignorant of the minimum levels of morally acceptable behavior. the moral worth of actions or practices. all of his or her particular characteristics. fundamental rights and privileges.

all of his or her particular characteristics.

The overall attractiveness of a country as a potential market or investment site for an international business depends on whether the government can be greased. whether the company can be the first mover in the market. balancing the benefits, costs, and risks associated with doing business in that country. if the country has a high gross national income.

balancing the benefits, costs, and risks associated with doing business in that country.

Cross-cultural literacy refers to? a)abstract ideas about what a group believes to be good, right, and desirable. b)the phenomenon of merging and converging cultures. c)an understanding of how cultural differences can affect business. d)an individual's self-concept derived from perceived membership in a relevant social group.

c)an understanding of how cultural differences can affect business.

Which of the following areas of international trade is regulated by the Foreign Corrupt Practices Act? a)establishing a set of safety standards to which a new product must adhere b)preventing bribery and unethical acts in the conduct of international business c)controlling the mafia activity that hinders trade in Russia, Japan, and the United States d)making and performance of commercial contracts in international trade

c)controlling the mafia activity that hinders trade in Russia, Japan, and the United States

While the hump-shaped relationship between income levels and pollution levels seems to hold across a wide range of pollutants, _____ represent an important exception. carbon dioxide emissions lead concentrations water quality standards sulfur dioxide emissions

carbon dioxide emissions

Since the 1980s, there has been a transformation from _____ economies to _____ economies. mixed; market-based centrally planned command; mixed centrally planned command; market-based market-based; centrally planned command

centrally planned command; market-based

A _____ law system is based on a very detailed set of laws organized into codes. traditional common civil theocratic

civil

A law system that is based on a detailed set of laws organized into codes is civil common contract municipal

civil

A _____ is a less rigid form of social stratification in which social mobility is possible. caste system normative system religious system class system

class system

A political system that prioritizes the needs of the society over individual freedoms is called totalitarianism collectivism egalitarianism capitalism

collectivism

In a(n) _____ economy, the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold. market laissez-faire open command

command

The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines value systems society principles culture

culture

The connection between _____ and _____ has important implications for the choice of countries in which to locate production facilities and do business? culture; competitive advantage values; norm class system; society moral principles; values

culture; competitive advantage

Which of the following is an example of an external stakeholder? employees stockholders the board of directors customers

customers

A common law system is different from a civil law system because a)in a common law system a judge relies on legal codes to make rulings, while in a civil law system a judge relies on his intuition and moral reasoning to make judgments. b)a common law system is very rigid, while a civil law system tends to be more flexible. c)a common law system is based on religious teachings, while a civil law system is based on cultural traditions. d)in a common law system a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law.

d)in a common law system a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law.

In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for ________; this contributed to a wave of democratic revolutions during the late 1980s and early 1990s. state ownership of productive resources regulated markets planned economies democratic reforms

democratic reforms

Rawls' philosophy that inequalities are justified if they benefit the position of the least-advantaged person is known as the ignorance veil principle inequality principle difference principle equity principle

difference principle

According to John Rawls, freedom of speech and assembly is the single most important component in a justice system. ethics is culturally determined. equal basic liberty is impossible in a pure market economy. each person should be permitted the maximum amount of basic liberty compatible with a similar liberty for others.

each person should be permitted the maximum amount of basic liberty compatible with a similar liberty for others.

One visible indicator of _____ tends to be a country's inflation rate. low HDI political risks high GNI economic mismanagement by Central Bank

economic mismanagement by Central Bank

Which of the following is a legal means by which the state can expropriate the profits from business activity? enforcing property rights expropriation excessive taxation demands for money to grant a license

excessive taxation

Company Zee has been found guilty of manufacturing a product that caused harm to its users, violating criminal liability laws. Which of the following is the most likely outcome for Company Zee? more severe punishment if Company Zee is outside the United States nothing if it was Company Zee's first offense payment and monetary damages fines or imprisonment

fines or imprisonment

A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of mores attitudes folkways values

folkways

When Jana visits her mother, she takes great pains to watch her language and use good manners because that is what her mother expects of her.This demonstrates the concept of folkways beliefs rites mores

folkways

Based on several studies, the data suggest that real wages? for unskilled workers have decreased while real wages for skilled workers have increased. for unskilled workers have increased while real wages for skilled worker have decreased. for both skilled and unskilled labor have increased. for both skilled and unskilled labor have decreased.

for unskilled workers have decreased while real wages for skilled workers have increased.

ABC Global has decided to invest resources in business activities outside its home country. This is called direct international investment (DII) foreign direct investment (FDI) international trade (IT foreign direct production (FDP)

foreign direct investment (FDI)

Which of the following is a risk associated with globalization? global financial contagion restrictions on competition excessive market regulation differentiation of markets

global financial contagion

Several studies have shown that economic advancement and _____ are important factors in societal change. individualism globalization and information collectivism culture

globalization and information

Which of the following is a feature of a democracy? exercise of absolute control by one person or political party prohibition of entry to opposing political parties complete restriction of individual political freedom governance by people or elected representatives

governance by people or elected representatives

Which of the following is a consequence of globalization? increasing outsourcing decreasing interdependence between national economies differentiating of material culture increasing barriers to cross-border trade

increasing outsourcing

One of the reasons for the spread of democracy is the emergence of _____ who have pushed for democratic reforms. a desperate urban poor a more vocal working poor increasingly prosperous middle and working classes better educated lower classes

increasingly prosperous middle and working classes

In 2009, the financial crisis in the United States was triggered by liberal lending policies by U.S. banks to homeowners. the global hike in the price of crude oil. the artificial fixing of the currency rate by China. the slowdown in U.S. imports, due to political pressure.

liberal lending policies by U.S. banks to homeowners.

The costs of doing business in a country tend to be greater if? local laws set strict standards with regard to environmental pollution. there are limits or caps on damage awards. political payoffs are not required to gain market access. supporting infrastructure is sponsored by government.

local laws set strict standards with regard to environmental pollution.

According to Geert Hofstede's study, which of the following cultural dimensions would be characterized by a greater readiness to take risks and less emotional resistance to change? low power distance cultures low uncertainty avoidance high collectivism high power distance cultures

low uncertainty avoidance

In a _____, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more. market economy command economy mixed economy collectivist economy

market economy

Which of the following factors is likely to make a country a more attractive location for international business? government ownership of production methods planned economies market-based economic policies totalitarian regimes

market-based economic policies

In 2008, the U.S. government took an 80 percent stake in AIG to stop that financial institution from collapsing, the theory being that if AIG did collapse, it would have very serious consequences for the entire financial system. What type of economy is this an example of? capitalistic mixed market command

mixed

Which of the following enables managers to walk away from a decision that is profitable, but unethical? noblesse oblige the difference principle the Friedman doctrine moral courage

moral courage

Brad has been in trouble his whole life. He stole from the local hardware store when he was 12, and as an adult he didn't feel the need to be faithful to his wife. Brad is guilty of violating values ethics folkways mores

mores

An international business, unlike a multinational enterprise, a)need not invest directly in operations in other countries. b)need not customize its products to the requirements of national markets. c)needs to manufacture products or provide services that target a global market. d)needs to have manufacturing units in at least two foreign nations.

needs to manufacture products or provide services that target a global market.

Which of the following, in a business setting, is taken to mean benevolent behavior that is the responsibility of successful enterprises? noblesse oblige ethical dilemma Sullivan's principles tragedy of the commons

noblesse oblige

A _____ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention for 20 years. contract copyright trademark patent

patent

The research and development division of a company has recently designed a new coffee vending machine that is likely to sell very well in the market. It is compact, user-friendly, and provides unprecedented efficiency in terms of cost per cup. Consequently, the company fears that its competitors would soon mimic the design of its product. To protect its product, the company is now seeking a trademark certification copyright patent

patent

The Kantian approach to ethics suggests that the moral worth of actions or practices is determined by their consequences. people should be treated as ends and never purely as means to the ends of others. human beings have fundamental rights and privileges that transcend national boundaries. ethics are nothing more than the reflection of culture.

people should be treated as ends and never purely as means to the ends of others.

The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities. uncertainty avoidance masculinity versus femininity power distance individualism versus collectivism

power distance

The sale of state assets through an auction is most likely to lead to nationalization privatization trade certification market regulation

privatization

Since the collapse of communism over a quarter of a century ago, formerly communist nations have transformed their economies by globalizing their markets. This involves decreasing competition reducing foreign investment privatizing state-owned enterprises regulating markets

privatizing state-owned enterprises

Which of the following is a reason managers working abroad in multinational firms may behave in a manner that is unethical? confusion between personal ethics and business ethics psychological, cultural, and geographical distances of a foreign subsidiary from the home office incorporating ethical issues into strategic and operational decision making pressure from an ethical leader

psychological, cultural, and geographical distances of a foreign subsidiary from the home office

GNI per capita can be adjusted by _____ to account for differences in the cost of living. gross domestic product the total value of goods and services produced gross values added purchasing power

purchasing power

A theocratic law system is one in which the law is based on religious teachings cultural and social norms tradition, precedent, and custom a detailed set of laws organized into codes

religious teachings

The World Trade Organization has estimated that the developed nations of the world can raise global economic welfare by $128 billion by increasing outsourcing of manufacturing processes. removing subsidies given to their agricultural producers. reducing defense expenditure. increasing tariff barriers to trade in agriculture.

removing subsidies given to their agricultural producers.

According to Amartya Sen, development should be seen as a nonpolitical concept that focuses on the net income of a country. viewed as a purely economic process. ssessed by material output measures such as GNI per capita. seen as a process of expanding the real freedoms that people experience.

seen as a process of expanding the real freedoms that people experience.

Which of the following refers to the extent to which individuals can move out of the strata into which they are born? class system social mobility caste stratification individual potential

social mobility

The term _____ refers to a group of people sharing a common set of values and norms. folkway mores culture society

society

Hofstede's uncertainty avoidance dimension considered? the relationship between gender and work roles. the relationship between the individual and his or her fellows. how a society deals with the fact that people are unequal in physical and intellectual capabilities. the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty.

the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty.

Without a strong legal system in a market economy a)mechanisms for contract enforcement fall to private and corporate lawyers. b)private and public entities can expropriate the profits generated by the efforts of private-sector entrepreneurs. c)the incentive to engage in economic activity can be increased substantially. d)private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities.

the incentive to engage in economic activity can be increased substantially.

The World Trade Organization promotes? state ownership of major enterprises. the lowering of barriers to cross-border trade and investment. the regulation of national economies. the development of poor nations through low-interest loans.

the lowering of barriers to cross-border trade and investment.

The individualism versus collectivism dimension of Hofstede's study explored? the relationship between the individual and his or her fellows. the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. how a society deals with the fact that people are unequal in physical and intellectual capabilities. the relationship between gender and work roles.

the relationship between the individual and his or her fellows.

During the past two decades, change in Latin America has been characterized by the sale of state-owned enterprises to private investors hyperinflation an increase in debt protests against foreign investment

the sale of state-owned enterprises to private investors

The benefits of doing business in a country are a function of which of the following? its future plans for infrastructure development the size and purchasing power of the market its past wealth its past growth

the size and purchasing power of the market

Systems that emphasize collectivism tend toward totalitarianism capitalism privatization democracy

totalitarianism

The _____ occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation. moral ignorance noblesse oblige veil of ignorance tragedy of the commons

tragedy of the commons

What impedes firms from achieving the optimal dispersion of their productive activities to locations around the globe? reduction of barriers to foreign direct investment education of barriers to trade between countries transportation costs government deregulations

transportation costs

According to Islam, those who hold property are regarded as tenants trustees speculators owners

trustees

To be classified as an MNE, a company must have productive activities in at least ________ countries. four twenty three two

two

Hofstede's _____ dimension measured the extent to which different cultures socialized their members into accepting and tolerating ambiguity. long-term versus short-term orientation uncertainty avoidance power distance indulgence versus restraint

uncertainty avoidance

The _____ approaches to ethics hold that the moral worth of actions or practices is determined by their consequences. righteous moralist utilitarian naive immoralist cultural relativist

utilitarian

_____ argued that individual diversity and private ownership are desirable. Aristotle John Stuart Smith Karl Marx Plato

Aristotle

_____ are the accepted principles of right or wrong governing the conduct of businesspeople. Sustainable strategies Moral worth of actions Ethical strategies Business ethics

Business ethics

A country with a well-functioning market economy does not need laws protecting private property rights and providing mechanisms for contract enforcement. True False

False

A firm needs to become a multinational enterprise to engage in international business. True False

False

Cultural relativism suggests that even if slavery is culturally acceptable in a country, a foreign firm operating in that country should avoid using slave labor. True False

False

Judge Michaels operates in a country with a civil law system. This system has more flexibility than a common law system. True False

False

The Foreign Corrupt Practices Act was amended to allow "facilitating payments" to secure contracts that would not otherwise be secured. True False

False

The Republic of Elbow has a command economy, and as such, its objective is to encourage free and fair competition between private producers. True False

False

The _____ outlawed the paying of bribes to foreign government officials to gain business. Universal Declaration of Human Rights Foreign Corrupt Practices Act Convention on Combating Bribery of Foreign Public Officials Convention on International Business Transactions

Foreign Corrupt Practices Act

_____ arguments suggest that improving working conditions beyond the level required by the law and necessary to maximize employee productivity will reduce profits and are therefore not appropriate. Rawls' Kantian Friedman's Sullivan's

Friedman's

________ refers to the shift toward a more integrated and interdependent world economy International marketing Privatization Globalization Outsourcing

Globalization

Which of the following was developed by the United Nations to measure the quality of life in different nations? Human Development Index gross domestic product gross national income purchasing power parity

Human Development Index

Identify the correct statement about the rights theories. The only social responsibility of business is to increase profits, so long as the company stays within the rules of law. Human beings have fundamental rights and privileges that transcend national boundaries. People should be treated as ends never purely as means to the ends of others. The moral worth of actions or practices is determined by their consequences.

Human beings have fundamental rights and privileges that transcend national boundaries.