International business test 1
Copyright
A composer can protect an original musical score from being copied and sold by someone by acquiring what?
Supranational organizations such as the World trade organizations
A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward what?
cannot pay or charge interest.
A major distinction between a conventional bank and an Islamic bank is that Islamic banks: - cannot accept private deposits. - are allowed to charge higher interest rates on loans. - are not subject to any form of law. - cannot pay or charge interest. - are supposed to refrain from making a profit through any source.
emphasizing the importance of hard work and wealth creation for the glory of God and frugality.
According to Max Weber, Protestantism encouraged capitalism's development by: - emphasizing the importance of hard work and wealth creation for the glory of God and frugality. - limiting an individual's religious freedom. - believing that salvation occurred in the next world, rather than this world. - adhering to the hierarchical domination of religious and social life that characterized the Catholic Church. - encouraging the consumption of accumulated wealth by indulging in worldly pleasures.
humanity's ideological evolution.
According to the author Francis Fukuyama, the world is most likely witnessing the end of: - liberal democracies. - free market economies. - privatization. - capitalism. - humanity's ideological evolution.
The naive immoralist
An American manager of a multinational company who is working in one of the company's production plants located in the country of Cadmia employs child labor at the manufacturing unit he is in charge of. On being criticized as unethical, the manager argues that such actions are ethically defensible because everyone in Cadmia is doing it. Which of the following straw men approaches to ethics is most likely demonstrated by the manager? - The naive immoralist - The righteous moralist - Ethnocentrism - Utilitarianism - Kantian ethics
drive the global economy toward greater prosperity.
An argument in support of the falling barriers to international trade and investment is that the falling barriers: - prohibit countries from specializing in the production of goods and services. - drive the global economy toward greater prosperity. - reduce attacks from foreign competitors. - reduce the need to export jobs overseas. - increase the bargaining power of business firms by decreasing the incomes of consumers.
Active bartering
As a result of which of the following, large amounts of economic activity in India are unrecorded and the official GDP figures of the country fail to tell the entire story of the economy? - Active bartering - A large population - Deregulation - Nationalization - Closed totalitarianism
Gold Fire Inc. made a small payment of $20 to speed up some paperwork related to tax returns in a less developed country.
As per the U.S. law and OECD convention, which of the following is most likely to be considered as a grease payment? - Gold Fire Inc. made an unrecorded payment to one of its accountants in return for window dressing the company's accounts. - Gold Fire Inc. made a small payment of $20 to speed up some paperwork related to tax returns in a less developed country. - Gold Fire Inc. gave gift vouchers to all its product wholesalers in order to promote the product. - The proprietor of Gold Fire Inc. made payments to the Mafia as a protection against violent retribution. - Gold Fire Inc. paid a fine of $2500 for violating the labor laws in a foreign country.
Significant differences still exist among national markets.
Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that: A.cultural diversity has been replaced by global uniformity. B. only multinational giants can benefit from the globalization of markets. C. the social norms in a country do not affect purchase decisions of consumers. D. significant differences still exist among national markets. E. the global market is less complex than national markets.
a first-mover advantage.
Capricorn Creative Inc., a U.S.-based advertising firm, was the first in the advertising industry to identify the growth potential of Brazil and to make huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. In the language of business strategy, Capricorn Creative has typically benefited from: - forward integration. - technology transfer. - lateral diversification. - unrelated differentiation. - a first-mover advantage.
greater collectivism.
Ceria Republic is a country that has achieved rapid economic growth and prosperity over the last couple of decades as a result of globalization. Hence, the country is most likely to see a cultural shift away from: - greater collectivism. - greater economic freedom. - secular rational values. - well-being values. - cultural convergence.
Developing nations of the world such as China, India, and Brazil.
Due to the changing economic geography, many of tomorrows economic opportunities are most likely to be found in the:
economically advanced countries.
Generally, the costs and risks associated with doing business in a foreign country are typically lower in: - totalitarian states. - less developed countries. - countries with high inflation and falling living standards. - economically advanced countries. - countries that lack intellectual property rights.
wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted.
Growing income inequality between the skilled and unskilled workers in advanced nations, such as the United States, is a result of the: - wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted. - decrease in the outsourcing of low-wage manufacturing jobs offshore and a corresponding increase in demand for unskilled workers. - increasing wage gap between developing and developed nations. - shift within advanced economies toward jobs where the only qualification is the willingness to turn up for work every day. - shortage of unskilled workers and an excess supply of highly skilled workers.
spiritual progression and reincarnation.
Hindus see mobility between castes as something that can be achieved through: - appropriate schooling and occupation. - spiritual progression and reincarnation. - offering prayer five times a day, and by refraining from the payment or receipt of interest. - individual economic achievements over the course of one's lifetime. - hard work that results in gradual upward mobility over generations.
It provides incentives to new private owners to search for increases in productivity and to enter new markets.
How does privatization help stimulate gains in economic efficiency? - It results in reservation of heavy industry for state ownership and the increase of import tariffs. - It allows newly privatized firms to gain monopoly position in a particular industry. - It encourages state control over price and production output. - It raises barriers to direct investment by foreign enterprises. - It provides incentives to new private owners to search for increases in productivity and to enter new markets.
cost of living was lower in China.
In 2012, if the PPP per capita of China was $9,040 and the PPP per capita of the United States was $52,340, this means that the: - percent of goods and services consumed in the United States was lower. - annual average GDP growth rate was lower in China. - GNI per capita was greater in China. - standard of living in China was better. - cost of living was lower in China.
reciprocated by the superiors by bestowing blessings on them
In a Confucian culture, loyalty of the subordinates to their superiors should be: - reciprocated by the superiors by bestowing blessings on them. - blind in nature. - based on the superiors' spiritual achievements. - free of expectations of reward and personal gain. - aimed at attaining spiritual perfection.
fail to take into account the ethical dimension of business decisions.
In a business setting, managers sometimes do not realize they are behaving unethically, primarily because they: - have a strong system of personal ethics. - fail to take into account the ethical dimension of business decisions. - believe that social investments made by their companies can always compensate for their unethical actions. - abide by the concept of noblesse oblige. - ignore business variables such as cost, delivery, and product quality.
Making sure that key business decisions make good economic sense irrespective of their social costs and risks
In a business setting, which of the following practices is most likely to be considered as unethical? - Making sure that key business decisions make good economic sense irrespective of their social costs and risks - Hiring independent auditors to ensure that subcontractors used by the company are living up to its code of conduct - Promoting employees who engage in ethical behavior and penalizing those who do not - Allowing managers within a company to act in accordance with rights theories - Informing prospective employees about the ethical climate in the organization
Norms
In a society, actions of people directed toward one another are governed by a set of social rules called: - structures. - manifestoes. - dialects. - norms. - scriptures.
dynamism and innovation.
In comparison to market economies, command economies lack:
Nationalized
In mixed economies, governments sometimes tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests. Once a government takes into state ownership such troubled firms, they are said to be: - privatized. - decentralized. - deregulated. - liberalized. - nationalized.
speed money.
In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made legal payments to the government officials of a host nation. Such payments are typically referred to as: - preferred dividends. - customs duties. - speed money. - excise taxes. - bribes.
Kantian ethics.
In stating that all human beings are born free and equal in dignity and rights and that they are endowed with reason and conscience and should act toward one another in a spirit of brotherhood, Article 1 of the Universal Declaration of Human Rights echoes: - the Friedman doctrine. - naive immoralism. - Kantian ethics. - cultural relativism. - teleological theory.
Deregulation of economies
In the context of global economy, which of the following has been widely accepted since the late 1980s? - Nationalization of private property - Mixed economy - Deregulation of economies - Authoritarian regime - Centrally planned command economy
Democracy
In the context of political economy, one notable development of the past 20 years has been the spread of: - democracy. - communism. - totalitarian governments. - mixed economies. - centrally planned economies.
Private action
In the context of property rights, which of the following refers to theft, piracy, blackmail, and the like by private individuals or groups? - Privacy violation - Private consumption - Private practice - Privacy tort - Private action
social stratification.
In the context of social structure, American society is characterized by a low degree of: - dynamism and innovation. - mobility between strata. - social stratification. - managerial mobility. - entrepreneurial activity.
adhering to labor and environmental regulations significantly increases the costs of manufacturing enterprises.
In the context of the environment, globalization critics argue that: - adhering to labor and environmental regulations significantly increases the costs of manufacturing enterprises. - as countries get richer, they relax their environmental and labor regulations. - free trade discourages firms from advanced nations to move manufacturing facilities to less developed countries. -while pollution levels are rising in the world's richer countries, they have been falling in developing nations. - manufacturing enterprises are put at a competitive disadvantage by moving their production facilities to nations that do not have burdensome regulations.
caste system
In the country of Burnada, the citizens are restricted from moving out of the strata they are born into. Also, individuals are allowed to engage only in the occupation associated with their particular strata. The system of social stratification being practiced in Burnada can be identified as a: - bureaucracy-based system. - merit-based system. - caste system. - class system. - cluster system.
Sold State owned enterprises to private investors
In the past two decades, the majority of Latin American countries have: A. sold state-owned enterprises to private investors. B. discouraged both democracy and free market reforms. C. experienced a decline in the health of their economies. D. been characterized by low growth, high debt, and hyperinflation. E. restricted investment by foreign firms.
Mixed Command
In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning? - Centrally planned - Pure market - Laissez-faire - Mixed Command
Righteous moralism
Jonathan is the manager of his company's facilities in the Philippines. He believes in ensuring the exact same standards of working conditions, wages, and labor management in the Philippines as practiced by the company's corporate office in its home country, the United States. His policy does not always lead to profits because of the vast cultural differences between the two nations. Which of the following straw men approaches to ethics is most likely being adopted by Jonathan? - Sullivan principles - Cultural relativism - Righteous moralism - Just distribution - Naive immoralism
the attainment of fair and equitable distribution of economic goods and services.
Justice theories primarily focus on: - protecting multinationals in case they violate fundamental human rights. - the attainment of maximum business profits. - the attainment of fair and equitable distribution of economic goods and services. - minimizing the amount of economic freedom permitted to each person. - minimizing the amount of political liberty permitted to each person.
Economic
Lamboria Republic is facing a high rate of inflation, and the government debt in the country is also high. As a result, the country's business environment is beginning to deteriorate, and the profits of the business enterprises are hurt. According to this information, Lamboria Republic is facing which of the following type of risk? - Ethnographic - Ethical - Demographic - Economic - Legal
Hinduism
Max Weber argued that the ascetic principles embedded in which of the following do not encourage entrepreneurial activity in pursuit of wealth creation because it is perceived that such activities make the attainment of nirvana more difficult? - Capitalism - Hinduism - Islam - Protestantism - Confucianism
Karl Marx.
Modern socialism traces its intellectual roots to:
Buddhist
Mr. X follows a religion that does not propagate the caste system. Also, his religion emphasizes right seeing, thinking, speech, action, living, effort, mindfulness, and meditation as a route for spiritual transformation. According to this information, Mr. X can be considered a: - Buddhist. - Hindu. - Muslim. -Sikh. - Confucian.
Islamic banking methods.
Mudarabah and the murabaha are: - Islamic banking methods. - banking practices that are prohibited by Islam. - laws limiting the right to private property. - laws governing international trade and commerce in Islamic countries. - Arabic words for interest and profit, respectively.
The business units of Neon Synergy will be empowered to adopt the standards of ethics followed in their respective host nations.
Neon Synergy Inc. operates in three different countries, and is headed by a CEO who believes that the best approach to ethics is cultural relativism. In this context, which of the following statements is most likely to be true regarding Neon Synergy? - All business units of Neon Synergy will adopt a common standard of ethics irrespective of their location. - Business decisions made by managers of Neon Synergy will be solely based on the goal of maximization of societal good. - Neon Synergy will follow its home-country standards of ethics at all its foreign locations. - Neon Synergy will extensively advocate the idea that universal notions of morality transcend different cultures. - The business units of Neon Synergy will be empowered to adopt the standards of ethics followed in their respective host nations.
Intellectual
Patents, copyrights, and trademarks establish ownership rights over what type of property? - Intellectual - Tangible - Stolen - Non-performing - Real
Representative democracy
People in the West tend to associate which of the following with a free market system, strong property rights protection, and economic progress? - Communist state - Anarchist state - Representative democracy - Command economy - Planned economy
righteous moralist.
Silver Meteorite Inc. is a multinational company whose home country, Palumbia Republic, considers grease payments as both illegal and unethical. Hence, the company has a zero-tolerance approach toward grease payments irrespective of any of its host nations' perspectives toward such payments. In this context, Silver Meteorite Inc. is following the approach to ethics known as: - naive immoralist. - ethnocentric. - cultural relativist. - righteous moralist. - cultural pluralist.
moral emotions and sentiments
Some contemporary moral philosophers view Kant's ethical philosophy as incomplete because his system has no place for: - the moral worth of actions. - just and fair treatment of a minority. - moral emotions and sentiments. - basic human rights. - human dignity.
Globalization of production
Sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor, energy, land , and capital.
where politicians are held accountable by the electorate.
Star Volans Inc. is planning on expanding its business globally. In terms of the costs involved in conducting business in a country, it will be most economical for the company if it chooses a country: - where laws regarding product safety, safety in the workplace, and environmental pollution are extremely stringent. - with a closed totalitarian political system. - with no local laws to protect intellectual property. - where politicians are held accountable by the electorate. - where the company will have to provide its own infrastructure and supporting business
theocratic totalitarianism
States that limit the freedom of religious expression with laws based on religious principles most likely follow the political system of: - communist totalitarianism. - representative democracy. - right-wing totalitarianism. - pure democracy. - theocratic totalitarianism
Free trade of goods and services
Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off. Which of the following is being justified in this case?
was not sufficient to ethically justify the existence of Western businesses in South Africa.
Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan concluded that following his principles: - was the most ethical way of doing business in South Africa. - was not sufficient to ethically justify the existence of Western businesses in South Africa. - would safeguard the citizens and businesses in South Africa from Western businesses. - had led international companies to successfully combat the apartheid regime in South Africa. - would be effective only when companies opposed democracy in South Africa.
organizational leadership.
The CEO of Gold Chip Software engages in corruption and uses his power in the company to enrich himself and his family members. Consequently, his employees also engage in the same behavior. In this case, the roots of unethical behavior can be traced to: - varying ethical standards in different cultures. - noblesse oblige and social responsibility. - geographical distance between employees and the parent company. - unrealistic performance expectations. - organizational leadership.
does not consider facilitating payments a criminal offense.
The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions: - considers payment of speed money to be moral, but illegal. - makes grease payments mandatory in order to obtain exclusive preferential treatment in a host nation. - does not consider facilitating payments a criminal offense. - makes it mandatory for companies to adhere to the pollution control standards of their home country in all the nations in which they do business. - makes it obligatory for companies to adopt a zero-tolerance approach toward grease payments.
ensure a business receives the standard treatment that it ought to receive.
The Foreign Corrupt Practices Act was subsequently amended to allow for speed money or grease payments, which are payments made to: - obtain exclusive preferential treatment in a foreign market. - ensure a business receives the standard treatment that it ought to receive. - secure monopoly rights in less developed countries. - secure contracts that would not otherwise be secured. - influence foreign bureaucrats in the company's favor.
Adopting the Contracts for the International Sale of Goods (CIGS)
The Republic of Marwa has decided to open its economy to globalization. Which of the following will facilitate this decision of Marwa? - A strong presence of private action in the nation - Adopting the Contracts for the International Sale of Goods (CIGS) - Breaking the rule of law - A strong commitment to communism - Creating a national environment that promotes public action
Free markets
The United Nation of Amberia, a Western European country, fought on the winning side of the Cold War. Which of the following was most likely being propagated by the country by participating in the Cold War? - Totalitarian dictatorships - Communist ideologies - Free markets - Strong business regulations - Command economies
Deregulation
The United Nation of Zorwaya has strict restrictions on direct investment by foreign enterprises, and it opposes the establishment and operation of private enterprises. The highest authority in the country enforces tight control over prices and production output. According to this information, the United Nation of Zorwaya most likely opposes: - command economies. - totalitarian ideologies. - deregulation. - socialism. - nationalization of private assets.
it is interpreted by the law courts with regard to tradition, precedent, and custom.
The common law system enjoys a degree of flexibility not found in other systems because: - it is usually found in democratic republics. - it originated from Great Britain and can be found in almost all of its former colonies. - it is based on a detailed set of laws organized into codes. - it is interpreted by the law courts with regard to tradition, precedent, and custom. - it has originated recently—just a decade ago.
Economic
The government of Ugania had been extending huge amounts of loans to the business enterprises in the country. However, the borrowers failed to generate the profits necessary to repay their debts. As a result, national banks in Ugania had a lot of nonperforming assets on their books, and the Uganian currency was devalued. In this context, the business enterprises in Ugania are most likely to face which of the following type of risk? - Economic - Sociological - Ethical - Legal - Technological
until property rights are better defined and protected.
The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism: - until they adopt communism. - if they encourage innovation and entrepreneurship. - if they adopt free market economies. - until property rights are better defined and protected. - until their governments monopolize all means of production in their countries.
faces frequent changes in government and government policy.
The risks of doing business are most likely to be the highest in a country that: - has low inflation rates. - protects intellectual property. - supports high living standards. - faces frequent changes in government and government policy. - has only one ethnic nationality.
Privatization
The sale of state-owned enterprises to independent, nonpublic investors is referred to as: - nationalization. - communalism. - public action. - privatization. - collectivism.
Education
The work by Jeffrey Sachs suggests that investments in which of the following help explain why some countries in Southeast Asia have been able to overcome the disadvantages associated with their tropical geography and grow far more rapidly than tropical nations in Africa and Latin America? - Terrorist activities - Nationalization of private properties - Education - Active bartering - Nuclear weapons
social democrats.
Those who attempt to achieve the same ideologies as that of the communists without violent revolution and totalitarian dictatorship are: - aristocrats. - anarchists. - social democrats. - pure capitalists. - individualists.
particular characteristics such as race, sex, and nationality
Under John Rawls' concept of veil of ignorance, people are imagined to be ignorant of their: - social responsibilities. - fundamental duties. - fundamental rights. - particular characteristics such as race, sex, and nationality. - political and economic freedom.
mini-multinational firm.
Universal Lingo, a U.K.-based language translation company employing just 65 people worldwide, has an annual turnover of $1.5 million. In this context, Universal Lingo is most likely to be classified as a(n): - large domestic firm. - greenfield firm. - foreign firm. - mini-multinational firm. - multinational giant.
Trademark
What protects the Nike Swoosh logo from being used by another manufacturer?
cross-cultural literacy.
When Shop Smart opened its first super market in China it was unable to generate any sales. After conducting a research, it was understood that the local sales personnel found it difficult to communicate with the American store managers. In addition, Chinese consumers found it difficult to shop in the American way. Shop Smart's failure in China can be attributed to the lack of: - cross-cultural literacy. - a first-mover advantage. - ethnocentrism. - Confucian dynamism. - class consciousness.
Political
When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing which of the following type of risk? - Technological - Demographic - Physiological - Political - Ethical
Reciprocal obligations
Which of the following Confucian ethics is central to the Chinese concept of guanxi? - Holding all material possessions in trust for God - Individual progress - Renunciation of the material world - Reciprocal obligations - Devoting life to a spiritual quest
Javier purchased an invention of his friend to start a company that processes plastic bags into synthetic cloth.
Which of the following best exemplifies an entrepreneur? - Ryan invented an anti-aging formulation and sold it to a major pharmaceutical firm. - Javier purchased an invention of his friend to start a company that processes plastic bags into synthetic cloth. - Joe recycles old household articles to build phones, radios, and other things for his personal use. - Max makes his living by investing in small companies that have the potential to grow. - Sam, an employee at a supermarket, is solely responsible for all the purchases and sales at the grocery department.
Andrew is responsible for deciding whether he should upgrade the manufacturing unit with new machines and reduce costs for clients, or retain the impoverished manual labor.
Which of the following best exemplifies an ethical dilemma? - Andrew is responsible for deciding whether he should upgrade the manufacturing unit with new machines and reduce costs for clients, or retain the impoverished manual labor. - The manager at Almas Inc. has to make a vendor choice between his underqualified cousin and a highly experienced, trusted supplier. - After seeing a whole new collection of phones at a store, Max is regretting the purchase of an outdated phone he made last month. - Samantha has to decide whether the annual profits of the company should be distributed to the employees as a salary hike or in the form of non-monetary benefits. - Javier has been doubtful about a car he purchased recently, and hence has been reading only good reviews about the car to console himself.
Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.
Which of the following best exemplifies foreign direct investment (FDI)? - Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia, Philippines, and Australia. - Yin and Yang Inc., a Chinese firm, supplies buttons and zippers to major denim brands in the United Kingdom. - Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market. - Delicate Love, a reputable florist company in Holland, exports tulips and roses throughout the globe. - Samantha started an Italian restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Italy.
Multinational corporations funding schools, universities, and hospitals in developing countries
Which of the following best exemplifies noblesse oblige? - Multinational corporations altering the laws of a host country to suit their businesses - Multinational corporations moving production to developing countries to exploit their lower employment standards - Multinational corporations gaining monopoly rights in developing countries in order to weaken the local competition - Multinational corporations bribing poorly paid government officials in a foreign market - Multinational corporations funding schools, universities, and hospitals in developing countries
Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic.
Which of the following best exemplifies public action? - The mafia in Cedia Republic demands "protection money" from successful domestic business owners. - Cedian proprietors in the hospitality industry often complain about protection rackets by criminal groups. - The Cedian government has been criticized for its inability to curb theft of trade secrets of international businesses by private domestic owners. - Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic. - To promote the Cedian culture, the government has made Cedian movies, which are based on Cedian history, tax-free.
A firm dumping its chemical wastes directly into an ocean
Which of the following best exemplifies the global tragedy of the commons? - A country denying its citizens basic human rights - A firm exploiting the weak employment standards in a host nation - A firm exploiting the weak intellectual property rights in a developing nation - A firm dumping its chemical wastes directly into an ocean - A neighboring country opposing the introduction of a free trade area
Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process.
Which of the following best illustrates the globalization of production? - Uncle Crab, a U.K. fast food chain, has been serving customers worldwide through its franchises. - Silver Unicorn Inc. uses sales personnel from the respective host country to sell its products and services. - Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in China to serve the Asian market. - Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers. - Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process.
The signs of growing unrest and totalitarian tendencies seen in these countries
Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former communist nations of East Europe and central Asia? - Low returns involved in doing business in these countries - The high levels of economic development in these countries - A strong commitment to market-based economic systems seen in these countries - The collapse of communism in these countries - The signs of growing unrest and totalitarian tendencies seen in these countries
United States
Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012? A. United States B. South Korea C. Thailand D. Japan
Privatization
Which of the following creates an environment that is conducive to product and process innovations and to entrepreneurial activity? - Communism - Command economy - Lack of strong property rights - Privatization - Centrally planned economy
State monopoly in production
Which of the following creates an unfavorable environment for innovations and entrepreneurship? - Economic freedom - Privatization - Market economy - Strong legal protection of property rights - State monopoly in production
Grease payments or speed money
Which of the following does the U.S. law and OECD convention allow as an exception? - Bribing a foreign government official to obtain a contract - Private action - Breach of the rule of law - Failure to keep records that would reveal if a violation of the Foreign Corrupt Practices Act has occurred - Grease payments or speed money
Failing to greet a person you know
Which of the following exemplifies violation of folkways best? - Murdering a business partner - Committing a financial fraud - Failing to greet a person you know - Practicing cannibalism under the belief that it leads to superpowers - Stealing an author's or an inventor's intellectual property
The presence of more than one ethnic nationality
Which of the following factors in a country is most likely to cause political risk for an international business? - Low inflation rate - Low level of government debt - Infrequent changes in government and government policy - The presence of more than one ethnic nationality - High living standards
Right-wing totalitarianism
Which of the following generally permits individual economic freedom, but restricts individual political freedom on the grounds that it would lead to the rise of communism? - Representative democracy - Right-wing totalitarianism - Communist totalitarianism - Pure democracy - Free market capitalism
The share of world output accounted for by developing nations
Which of the following has seen a positive change from 1960 to 2012? - Growth of the centrally planned economies of the communist world - The share of world output accounted for by developing nations - Prevalence of independent and self-contained national economies - U.S. position in the world economy and world trade picture - The share of world output enjoyed by rich industrialized countries such as Great Britain, Germany, and Japan
The degree to which the society is stratified into classes or castes
Which of the following is a dimension of social structure that is particularly important when explaining differences between cultures? - The extent to which work is viewed as more important than family - The average income of the people who belong to a particular culture - The degree to which the society is stratified into classes or castes - The dominant race and the gender in the society - The degree to which a society supports multiple subcultures
Dramatic developments in information processing and other technologies
Which of the following is a macro factor underlying the trend toward greater globalization? - Increase in trade regulations across the globe - Increase in diversity in consumer tastes and preferences - Increase in nationalization of private organizations - Rise of communism across the globe - Dramatic developments in information processing and other technologies
Islam
Which of the following is a religion that prohibits the payment or receipt of interest, as it is considered to be usury? - Buddhism - Hinduism - Islam - Confucianism - Christianity
Lack of company-specific experience, knowledge, and a network of contacts among managers
Which of the following is an implication of high degree of managerial mobility in societies that emphasize individualism? - Reduced costs of doing business - Lack of exposure among employees to different ways of doing business - Increased managerial loyalty and commitment to an individual company - Inability to apply good practices and techniques developed in one firm to other firms - Lack of company-specific experience, knowledge, and a network of contacts among managers
Human Development Index
Which of the following is based on three measures: life expectancy at birth, educational attainment, and average incomes based on PPP estimates? - Gross Domestic Product - Cash Reserve Ratio - Human Development Index - Cost of Living Index - Gross National Income
Selling state-owned enterprises to private investors
Which of the following is inconsistent with Marxist philosophy? - Substantial limits on individual political freedom - Concern over public good rather than private profit - Selling state-owned enterprises to private investors - Monopoly of state-owned companies in certain industries - Opposing the ideologies of capitalist societies
The retail sector in Erbia has been opened for foreign direct investment
Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation? - Erbia ranks the lowest among the countries that grant both political and economic freedoms to its citizens. - The Erbian government exercises tight control over the prices of food grains. - The retail sector in Erbia has been opened for foreign direct investment. - The Erbian government has been criticized for its inability to introduce a legal system to safeguard property rights. - The establishment of private enterprises in steel industry is prohibited by the Erbian government.
Auditing of decisions
Which of the following is the last step in ethical decision making? - Engaging in ethical behavior - Establishing moral intent - Auditing of decisions - Judging the ethics of the proposed decision - Identifying the stakeholders a decision would affect
English
Which of the following is the most widely spoken language in the world, and is increasingly becoming the language of international business? - German - French - English - Spanish - Chinese
The government of a country defines the legal framework within which firms do business
Which of the following is true about legal systems? - The attractiveness of a country as an investment site or market is unaffected by its legal system. - The government of a country defines the legal framework within which firms do business. - All countries have the same, uniform legal environment. - Collectivist-inclined totalitarian states tend to enact laws that are pro-private enterprise. - Unlike the economic system of a country, the legal system is independent of the country's political system.
Common Law
Which of the following legal systems is most likely to be based on tradition, precedent, and custom? - Monarchy law - Civil law - Common law - Universal law - Autocracy law
Cross-cultural literacy
Which of the following means an understanding of how cultural differences across and within nations can affect the way business is practiced? - Pan-culture integration - Cross-cultural literacy - Cultural capitalism - Cultural lag - Ethnocentrism
The tragedy of the commons
Which of the following occurs when a resource held jointly by all, but owned by no one, is overused by individuals, resulting in its degradation? - Capital deepening -The tragedy of the commons - Social loafing - Cultural relativism - A deadweight loss
Kantian ethics
Which of the following philosophies of ethics holds that people should be treated as ends and never purely as means to the ends of others? - Cultural relativism - Naive immoralism - Kantian ethics - Righteous moralism - The Friedman doctrine
Countries progressively raising trade barriers against each other
Which of the following reasons contributed to the Great Depression of the 1930s? - Inability to meet the increasing world demand for products - Increasing attack from foreign competitors on domestic industries - Several countries accepting General Agreement on Tariffs and Trade - Privatization of state-owned organizations - Countries progressively raising trade barriers against each other
contracts
Which of the following refers to documents that specify the conditions under which an exchange is to occur and detail the rights and obligations of the parties involved? - White papers - Manifestoes - Contracts - Minutes - Memoranda
Hinduism
Which of the following religions does not owe its founding to any one particular individual? - Hinduism - Islam - Confucianism - Buddhism - Christianity
Delivering closing arguments for a lawsuit
Which of the following services CANNOT be outsourced to foreign nations? - Delivering closing arguments for a lawsuit - Transcribing medical files - Debugging software - Interpreting MRI scans - Handling consumer queries
As a result of globalization, a severe crisis in one region of the world can affect the entire globe.
Which of the following statements is a general implication of globalization? - As a result of globalization, a severe crisis in one region of the world can affect the entire globe. - From a purely economic perspective, globalization is all good. - Globalization is inevitable. - Globalization has reduced the risks associated with global financial contagion. - Globalization has no negative impacts on the economies of the developed world
In ethical decision making, managers need to ensure that a proposed decision does not violate the fundamental rights of any stakeholders.
Which of the following statements is true about ethical decision making? - In ethical decision making, managers need not consider the implications of a proposed strategic decision on external stakeholders. - In ethical decision making, managers need to ensure that a proposed decision does not violate the fundamental rights of any stakeholders. - In ethical decision making, it is illegal to apply the moral principles articulated in any company document other than the code of ethics. - Companies should place their narrow economic interests before the interests of stakeholders. - Since maximizing long-run profitability is the decision rule that most businesses stress, it should be applied irrespective of whether moral principles are being violated.
It is possible to have totalitarian societies that are not collectivist.
Which of the following statements is true about political systems? - It is not possible to have democratic societies that emphasize a mix of collectivism and individualism. - The political system of a country is independent of its economic and legal systems. - The societal culture of a country does not influence its political system. - The political system of a country is of no importance to international business. - It is possible to have totalitarian societies that are not collectivist.
They promoted the abolition of apartheid laws
Which of the following statements is true about the Sullivan principles? - They promoted the abolition of apartheid laws. - They were against the introduction of democratic elections in South Africa. - It has been argued that they led to the violation of human rights in South Africa. - They were widely opposed by U.S. firms, such as General Motors, operating in South Africa. - Western businesses that followed them were considered unethical.
Successful individuals from humble origins are highly respected in American society.
Which of the following statements is true about the class system in the United States when compared to the British class system? - The class system in the United States is more pronounced than in Britain. - Class membership in the United States is mainly determined by an individual's background and schooling. - Successful individuals from humble origins are highly respected in American society. - In the United States, upward social mobility cannot normally be achieved in one generation. - In American society, the extreme emphasis on individualism increases the impact of class background on business operations.
Contracts drafted under a common law system tend to be longer than those drafted under a civil law system.
Which of the following statements is true about the difference between contracts in common law and civil law systems? - It is more expensive to draw up contracts in a civil law system than in a common law system. - Civil law systems have the advantage of greater flexibility and allow for judges to interpret a contract dispute in light of the prevailing situation but this feature is absent in common law systems. - Contracts drafted under a civil law system tend to be more specific than those drafted under a civil law system. - Correct Contracts drafted under a common law system tend to be longer than those drafted under a civil law system. - Resolving contract disputes tends to be less adversarial in common law systems than in civil law systems.
Certain mores have been enacted into law.
Which of the following statements is true of mores? - Mores do not differ among cultures. - Violation of mores is generally not a serious matter. - Mores are actions of little moral significance. - Certain mores have been enacted into law. - Social conventions regarding eating with the correct utensils is a good example of mores.
It recognizes that a business should pursue only those actions where the social benefits outweigh the costs.
Which of the following statements is true of the utilitarian approach to business ethics? - The best decisions, from a utilitarian perspective, are those that produce the greatest profits for businesses. - It asserts that managers should not follow ethical norms if they see that others firms are also not following them. - It recognizes that a business should pursue only those actions where the social benefits outweigh the costs. - It holds that an action is judged desirable if it leads to the maximization of stockholders' wealth. - It fails to consider the idea that actions have multiple consequences.
Members of high uncertainty avoidance cultures had a strong need for rules and regulations.
Which of the following statements is true with regard to Geert Hofstede's cultural dimensions? - Low power distance cultures were found in countries that let inequalities grow over time into inequalities of power and wealth. - Members of low uncertainty avoidance cultures placed a premium on job security, career patterns, and retirement benefits. - Members of high uncertainty avoidance cultures had a strong need for rules and regulations. - In masculine cultures, little differentiation was made between men and women in the same job. - In societies where collectivism was emphasized, the ties between individuals were loose.
International business is conducted not just by large firms but also by medium-size and small enterprises.
Which of the following statements reflects the trend in the changing nature of multinational enterprises? - The number of medium-size and small multinationals is decreasing continuously. - International business is conducted not just by large firms but also by medium-size and small enterprises. - The ranks of the world's largest 100 multinationals are dominated by firms from developing economies. - Global business activity is increasingly being dominated by large U.S. multinational corporations. - The Internet is increasing the barriers that small firms face in building international sales
Privatizing state-owned enterprises
Which of the following steps is most likely to be involved in the deregulation of an economy? - Opposing democracy by adopting communism - Abolishing laws related to the protection of property rights - Increasing restrictions on direct investment by foreign enterprises and international trade - Exercising a high degree of state control over production and pricing - Privatizing state-owned enterprises
Inversely proportional
Which of the following terms best defines the relationship between the level of corruption and economic growth rate in a country? - Positive correlation - Zero correlation - Independent - Directly proportional - Inversely proportional
Difference principle
Which of the following terms, developed by Rawls, indicates that inequalities are justified if they benefit the position of the least-advantaged members of society? - The theory of private equity - Laws of equivalent trade - Difference principle - The tragedy of the global commons - Unity of command
Limiting the use of antidumping laws
Which of the following was a part of the agenda of the Doha Round of talks launched by the WTO? - Abolishing the International Monetary Fund - Increasing tariffs on industrial goods, services, and agricultural products - Limiting the use of antidumping laws - Establishing GATT as a replacement for the WTO - Persuading member governments to cut defense spending
Socialism
Which of the following was advocated by Karl Marx? - Individualism - Capitalist society - Socialism - Selling state-owned enterprises to private investors - Private profit over public good
Buddhism
Which of the following was founded in India in the sixth century B.C. by Siddhartha Gautama, an Indian prince who renounced his wealth to pursue an ascetic lifestyle and spiritual perfection? - Judaism - Hinduism - Confucianism - Islam - Buddhism
Geert Hofstede
Who initially isolated four dimensions—power distance, uncertainty avoidance, individualism versus collectivism, and masculinity versus femininity—that he claimed summarized different cultures? - Geert Hofstede - Michael Porter - Max Weber - B. F. Skinner - Abraham Maslow
Finance ministers and central bank governors
Who, along with representatives from the European Union and the European Central Bank, represent the 19 largest economies in the world on the G20? - Finance ministers and central bank governors - Prime ministers and army chiefs - International trade ministers - Ministers of foreign affairs - Presidents and defense ministers
