International Business: Final Exam (TRUE/FALSE)
A production process would create just one defect per six thousand products at Six Sigma.
False
A wholly owned subsidiary limits a firm's control over operations in different countries.
False
Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople.
False
Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad.
False
Firms based in less-developed nations tend to build a lot of extra performance attributes into their product.
False
In today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist.
False
Markets can be segmented in only one way: by socio-cultural factors.
False
Most international businesses require all budgets and performance data within the firm to be expressed in the currencies of the countries where its subunits are located.
False
Norms and abstract ideas about what a group believes to be good, right, and desirable.
False
Outsourcing is a process that is limited to manufacturing enterprises
False
The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
False
The ethical obligations of a multinational corporation toward employment conditions, human rights, environmental pollution, and the use of power are always clear-cut.
False
The most attractive staffing policy is the ethnocentric approach.
False
The standards of U.S. Financial Accounting Standards Board and IASM are vastly different.
False
The theories of Smith and Ricardo show that countries should not engage in international trade for products that it is able to produce for itself.
False
GNI allows a more direct comparison of living standards in different countries.
False.
Privatization refers to the process of hiring private management consultancy firms to manage state-owned enterprises.
False.
Products such as electronic components and pharmaceuticals have low value-to-weight rations.
False.
Support activities are always less important than the primary activities in achieving a competitive advantage.
False.
The World Bank has focused on policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties.
False.
The communists believed that socialism could be achieved by democratic means, and turned their backs on violent revolution and dictatorship.
False.
Cultural myopia refers to a firm's failure to understand host-country cultural differences that require different approaches to marketing and management
True
Heckscher-Ohlin theory supports the case for unrestricted free trade between nations.
True
If a country's economy is to sustain long-run economic growth, the business environment must be conductive to innovations and entrepreneurial activity.
True
Most modern democratic states practice representative democracy.
True
Social responsibility refers to the idea that businesspeople should have favor decisions that have both good economic and social consequences.
True
The set of choices the firms offers to its targeted markets is known as the marketing mix.
True
What is considered normal business practice in one country may be considered unethical in other countries.
True
A theocratic law system is one in which the law is based on religious teachings.
True.
Folkways include rituals and symbolic behavior.
True.
Lowering the costs is one of the objectives of the production and logistics function of an international firm.
True.
Products sell well when their attributes match consumer needs.
True.
The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.
True.
The skills within the firm that a competition cannot easily match or imitate are known as core competence.
True.
A company does not need a large size to facilitate, and benefit from, the globalization of markets.
True
A firm's strategy can be defined as the actions that managers take to attain the goals of the firms.
True
According to Max Weber, Protestantism encouraged capitalism's development by emphasizing the importance of wealth creation and frugality.
True
According to Porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more.
True
Accounting information is the means by which firms communicate their financial position to the providers of capital.
True
An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.
True
