MGT 6670 -midterm

In the context of Hofstede's original four dimensions, power distance is "the extent to which less powerful members of institutions and organizations accept that power is distributed unequally."

True

In the context of the important values in the Japanese culture, paternalism is often measured by a manager's involvement in both personal and off-the-job problems of subordinates.

True

Monopolies are a danger to the market economy system because they tend to stifle economic growth.

True

One Percent for the Planet is an international nonprofit dedicated to philanthropy for environmental organizations cofounded by the founder of Patagonia.

True

Organizational climate refers to the overall atmosphere of an enterprise.

True

Organizational cultures of MNCs are shaped by a number of factors, including the cultural preferences of the leaders and employees

True

Singapore has emerged as an urban planner's ideal model and the leader and financial center of Southeast Asia.

True

Socialism is a broad political movement, and in modern times, it branched off into two extremes: communism and social democracy.

True

Tesla has collaborated with several other researchers and car manufacturers to produce greener automobiles to achieve its secondary goal of inspiring sustainability across the entire automobile industry.

True

The Brazilian economy outweighs that of any other South American country with an economic output comparable to that of France.

True

The most common form of totalitarian government is communist totalitarianism.

True

The protective principle is a jurisdictional principle that holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country.

True

The study of morality and standards of conduct is referred to as ethics.

True

The word culture comes from the Latin cultura, which is related to cult or worship.

True

There often are substantial differences between the organizational cultures of different subsidiaries.

True

To manage a global team, international managers must take into consideration three factors: culture, communication, and trust.

True

Universalism is the belief that ideas and practices can be applied everywhere without modification.

True

Utilitarianism favors the greatest good for the greatest number of people under a given set of constraints.

True

When conducting business in Russia, it is important to build personal relationships with partners.

True

When depicting cultural diversity through visually separating its components by using concentric circles, the middle ring contains the norms and values of society.

True

When setting out to manage a culturally diverse team, managers should select team members for their task-related abilities and not solely based on ethnicity.

True

A(n) ________ culture is one in which people are accorded status based on how well they perform their functions. diffuse specific ascription achievement

achievement

Under the ________, all acts of other governments are considered to be valid by U.S. courts, even if such acts are inappropriate in the United States. act of international civility act of judicial sovereignty act of international understanding act of state doctrine

act of state doctrine

The People's Republic of China had a long tradition of isolation until Deng Xiaoping opened his country to the world in ________. 1932 1947 1989 1979

1979

The seventeen Sustainable Development Goals constitute an ambitious agenda to significantly improve the human condition by ________. 2040 2050 2020 2030

2030

In the context of Xiaomi's unconventional approach to design, which of the following is used as a key element of its strategy? Patent-protected technology Personal excellence Long-term inventory holding Crowd-sourcing

Crowd-sourcing

________ can be defined as acquired knowledge that people use to interpret experience and generate social behavior. Edification Culture Cognition Symbol

Culture

In the ________ culture, jobs are well defined, employees know what they are supposed to do, and everything is coordinated from the top. guided missile family incubator Eiffel Tower

Eiffel Tower

The ________ culture is characterized by a strong emphasis on hierarchy and orientation to the task. guided missile Eiffel Tower family incubator

Eiffel Tower

In the context of e-business, the term e-cash stands for ________. Easy cash Electronic cash Export cash Exchange cash

Electronic cash

Which of the following is not one of the seventeen U.N. Sustainable Development Goals? Ensuring environmental sustainability Ensuring free vaccinations for women Eradicating discrimination against women Reducing poverty

Ensuring free vaccinations for women

Which of the following predispositions is most likely to have a top-down governance? Regiocentric predisposition Polycentric predisposition Ethnocentric predisposition Geocentric predisposition

Ethnocentric predisposition

All of the following regions are associated with "crony capitalism" except ________. Africa Europe Latin America Asia

Europe

________ can be best defined as an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability. Corporate governance Fair trade Trade union Nongovernmental organization activism

Fair trade

A form of totalitarianism, sometimes referred to as "right-wing," allows for both economic and political freedoms.

False

Eastern perspectives attempt to describe and categorize the universe from a detached, objective viewpoint.

False

Foreign direct investment has been falling alarmingly since the global recession of 2009 in most regions of the world.

False

Internationalization is the vision of creating one world unit, a single market entity.

False

It is necessary for today's organizations to do business in another country to encounter people with diverse cultural backgrounds.

False

Nationalization is an ideal in and of itself whereby an individual is completely loyal to his or her nation.

False

North American Free Trade Agreement (NAFTA) members are better integrated as a single market than the European Union (EU) or the allied Asian countries.

False

One of the factors that contributed to the early success of the Japanese economy is the presence of chaebols.

False

Patagonia shows that a company that transforms its corporate strategy to emphasize "doing good" socially and environmentally cannot do well economically.

False

Sustainability involves development that meets humanity's needs by harming future generations.

False

The United States has considerable foreign direct investment in Germany, more than in any other country.

False

The existence of equal opportunity in French and German law guarantees that equal opportunity initiatives will be implemented.

False

When conducting business in China, one must realize that individualism is highly prized.

False

When doing business in Arab countries, it is mandatory for the other party to bring an expensive gift for the Arab businesspeople.

False

________ is the term used by Hofstede to describe "a situation in which the dominant values in society are caring for others and the quality of life." Femininity Masculinity Individualism Collectivism

Femininity

An act that makes it illegal to influence foreign officials through personal payment or political contributions is referred to as the ________. Global Ethics Act Fair Treatment of Foreign Citizens Act Fairness in International Affairs Act Foreign Corrupt Practices Act

Foreign Corrupt Practices Act

Advertising in ________ is predominantly emotional, dramatic, and symbolic. Japan Germany China France

France

In ________, one's social class is very important and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle, and the lower. The United States India France Great Britain

France

In ________, spots are viewed as cultural events and reviewed as if they were literature or films. China Germany India France

France

To unite a diverse set of employees in a pharmaceutical company under a common corporate culture, AstraZeneca's Global Steering Group has focused on three universal cultural pillars. Which of the following is not one of those pillars? Transparency in Talent Management and Career Progression Leadership and Management Capability Work/Life Challenges Insight Exchange

Insight Exchange

________ is the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments. International management Strategic management Globalization Internationalization

International management

Identify a true statement about civil law. It comes from English law and is found in nonsocialist countries. It is found in most Islamic countries in the Middle East and Central Asia. It is derived from Roman law and is found in the non-Islamic and nonsocialist countries. It is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and other nations.

It is derived from Roman law and is found in the non-Islamic and nonsocialist countries

Identify a potential problem associated with diversity. It limits idea generation. It tends to cause a lack of cohesion. It deteriorates customer relationships. It tends to increase groupthink.

It tends to cause a lack of cohesion

Which of the following statements about the Transparent Agents Against Contracting Entities (TRACE) is incorrect? It was developed after a review of the practices of 34 companies. It applies to business intermediaries. It was developed as a way to prevent the shifting of corrupt practices to suppliers and intermediaries. It was established by Latin American companies.

It was established by Latin American companies

In the context of emerging and developing economies in Central and Eastern Europe, which of the following is a pervasive challenge in Russia? Expansion of the middle class Lack of public security Dismantling of Russian price controls Privatization

Lack of public security

Latin American countries have established the ________ Inter-American Convention Against Corruption, which entered into force in March 1997. FCPA OECD OAS TRACE

OAS

All of the following are examples of NGOs except ________. CARE OECD Save the Children Oxfam

OECD

________ is the process by which companies undertake some activities at offshore locations instead of in their countries of origin. Offshoring Homesourcing Globalization Insourcing

Offshoring

________ is the tendency to view the world through one's own eyes and perspectives. Symbolism Simplification Nationalism Parochialism

Parochialism

Which of the following is already being used by the Japanese and is currently being employed by the Americans? Hiring process designed to help identify individuals who will do the best job over the long run Manager-subordinate performance appraisal Participative management and autonomous work teams Cross-training and formal authority

Participative management and autonomous work teams

________ is the belief that circumstances dictate how ideas and practices should be applied. Individualism Universalism Communitarianism Particularism

Particularism

Which of the following statements is true about restrained societies? People are less likely to give importance to law and order. People are more likely to remember positive emotions. People give importance to freedom of speech. People experience a perception of helplessness.

People experience a perception of helplessness

The Trans-Pacific Partnership (TPP) is a trade agreement among 12 Pacific Rim countries, including: India, Canada, and Australia. Peru, the United States, and Vietnam. Singapore, Russia, and Chile. Great Britain, New Zealand, and China.

Peru, the United States, and Vietnam

Russia, ________ receive the most media coverage and are among the largest of the former communist countries. Poland, Hungary, and the Czech Republic Hungary, Romania, and Albania Romania, Poland, and Bulgaria Czech Republic, Bulgaria, and Poland

Poland, Hungary, and the Czech Republic

Identify a characteristic of a market economy. The state reserves the right to monitor the production and distribution of goods and services. Private enterprises reserve the right to own property. Monopolies boost economic growth. Competition is discouraged because it hinders penetration into niche markets.

Private enterprises reserve the right to own property

Which of the following describes the ways of thinking and learning in the guided missile culture? Process-oriented, creative, ad hoc, and inspirational Logical, analytical, vertical, and rationally efficient Problem centered, professional, practical, and cross-disciplinary Intuitive, holistic, lateral, and error correcting

Problem centered, professional, practical, and cross-disciplinary

In the context of the smartphone industry, which of the following helps Apple differentiate itself from its competitors? Low-cost strategy Group achievement Product innovation Collective approach to design

Product innovation

The seventeen Sustainable Development Goals include ________. reduction of poverty institutional reform enhanced college education accelerated industrialization

Reduction of poverty

In the context of sustainability in operations and products, Nestlé encourages ________. long-distance shipping of raw materials resource efficiency compensation benefits use of industrial refrigerants

Resource efficiency

In the context of human rights, which country has experienced widespread human trafficking that has accelerated in recent years? Russia India South Africa China

Russia

Which of the following scenarios best exemplifies a glass ceiling effect? Elena asks her team to contribute toward a green economy. Roger asks his senior manager to standardize compensation packages at the top level. Keith is not considered for the role of a factory worker because he is a child. Sheba is not considered for the role of a senior manager because she is a woman.

Sheba is not considered

Which of the following is a characteristic of low-context cultures? Insiders and outsiders are easily distinguishable. Relationships between people are relatively long lasting. People in authority are personally responsible for the actions of their subordinates. Authority is diffused throughout the bureaucratic system.

Authority is diffused throughout the bureaucratic system.

The most popular form of e-business is for ________. B2B dealings B2C dealings financial dealings e-retailing

B2B Dealings

At Deloitte, training employees to trust and harness the benefits of global, diverse teaming starts at the intern level.

True

Being consciously aware of the way that teammates communicate can increase the chances of success for the team.

True

In the context of cultural diversity, a supplemental way of understanding cultural differences is to compare culture as a normal distribution and then to examine it in terms of stereotyping.

True

In the context of the emerging markets of Asia, India is attractive to multinationals, especially U.S. and British firms.

True

In the context of the values in transition, China is moving away from a collectivist culture.

True

In November 2015, on the opening day of the United Nations climate summit in Paris, which of the following MNCs announced that it would no longer provide financing to coal-mining companies in both the developed and developing world? JPMorgan Chase Merrill Lynch Wells Fargo HSBC

Wells Fargo

A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in Germany should ________. tap large pool of labor cities and be prepared that lax labor laws may become more stringent be prepared for high wages and short workweek and expect high productivity from unionized workers understand changing German labor law and prepare for increasing unionization of labor treat unions as partners and allow time for negotiations

be prepared for high wages and short workweek and expect high productivity from unionized workers

A ________ group is a group in which two or more members represent each of two distinct cultures, such as four Mexicans and four Canadians who have formed a team to investigate the possibility of investing in Russia. multicultural bicultural token homogeneous

bicultural

Global firms need: neither an internal nor an external diversity focus. an internal but not an external diversity focus. both an internal and an external diversity focus. an external but not an internal diversity focus.

both an internal and an external diversity focus

Critics of the Foreign Corrupt Practices Act feared the loss of sales to foreign competitors, especially in those countries where: customs are rigidly followed. bribery is an accepted way of doing business. common law is applicable. political stability exists.

bribery is an accepted way of doing business

Culturally, a German can be expected to have a ________ handshake. light and quick long and involved gentle brusque and firm

brusque and firm

NGOs that seek to promote ethical and socially responsible business practices are generating substantial changes in all of the following areas except ________. business development corporate management corporate governance strategy

business development

Corporate governance: can be defined as the system by which business corporations are directed and controlled. seeks to serve society's interests by focusing on social, political, and economic issues such as poverty, social justice, education, health, and the environment. can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm. can be defined as development that meets humanity's needs without harming future generations.

can be defined as the system by which business corporations re directed and controlled

A ________ is comparable to a monopoly in the sense that an organization, in this case the government, has explicit control over the price and supply of a good or service. market economy mixed economy command economy socialist economy

command economy

The United Kingdom's corporate characteristic is: commercial. pragmatic. industrial. administrative.

commercial

The Hong Kong office of Salomon Brothers, a U.S. investment bank, estimates that to meet the expanding demand for telecommunication service in Asia, companies will need ________. cheaper technology cheap and efficient labor considerable increase in investment cheaper service providers

considerable increase in investment

When depicting cultural diversity through visually separating its components by using concentric circles, the inner circle: consists of food and buildings. contains the norms, beliefs, dimensions, and values of society. contains the implicit, basic assumptions that govern behavior. consists of language and art.

contains the implicit, basic assumptions that govern behavior

In the action stage of team development, the focus shifts to: decision making and implementation. building trust and developing team cohesion. analyzing an assigned task. describing a problem.

decision making and implementation

A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Japan should ________. develop trusting relationship with recruit use expatriates sparingly and recruit home country nationals at U.S. colleges obtain skilled labor from government subsidized apprenticeship program encourage use of sophisticated selection procedures based on recent public policy shifts

develop trusting relationships with recruit

Dirigiste" is used to describe the ________ dimension of France. economic philosophical structural cultural

economic

The ultimate objective of the European Union is to: eliminate all trade barriers among member countries. develop separate custom duties for member countries. increase imports into European Union countries. have a single government that represents all European Union countries.

eliminate all trade barriers among member countries

In the ________ stage of group development, the focus should be on building trust and developing team cohesion. entry reflection work action

entry

A company with a(n) ________ predisposition allows the values and interests of the parent company to guide strategic decisions. ethnocentric geocentric regiocentric polycentric

ethnocentric

In the context of the trends in technology, the open-source model restricts free and legal sharing of software and code to prevent underdeveloped countries from gaining competitive advantage while minimizing costs.

false

The ________ culture is characterized by a strong emphasis on hierarchy and orientation to the person. guided missile family incubator Eiffel Tower

family

When it works well, the ________ culture can catalyze and multiply the energies of the personnel and appeal to their deepest feelings and aspirations. Eiffel Tower guided missile family incubator

family

Change in the incubator culture is: almost nonexistent. fast and spontaneous. slow and calculated. moderate and methodological.

fast and spontaneous

According to the priorities of cultural values of the United States, Japan, and Arab countries, the most important cultural value in the United States is ________. family security freedom belonging cooperation

freedom

A company with a(n) ________ predisposition tries to integrate a global systems approach to decision making. regiocentric ethnocentric geocentric polycentric

geocentric

Firms with a geocentric predisposition have a ________ culture. global host country regional home country

global

A diffuse culture is one in which individuals: greet each other with a great deal of enthusiasm. have a large public space and a small private space. are direct and extroverted. guard their public space carefully.

guard their public space carefully

The ________ culture is a project-oriented culture. incubator guided missile family Eiffel Tower

guided missile

The ________ culture is characterized by a strong emphasis on equality in the workplace and orientation to the task. guided missile family incubator Eiffel Tower

guided missile

In the context of established economies, the European Union:

has largely achieved the reality of a single currency and a regional central bank

The five criteria in the acronym HAIRL stood for ________. helicopter, action, interest, reality, and leadership hierarchy, action, ingenuity, reverie, and leadership helicopter, analysis, imagination, reality, and leadership hierarchy, awareness, ingenuity, reverie, and leadership

helicopter, analysis, imagination, reality, and leadership

Malaysia has what could be called a ________. variable-context culture moderate-context culture low-context culture high-context culture

high-context culture

Most French organizations tend to be ________. highly decentralized and have rigid structures highly decentralized and have lose structures highly centralized and have rigid structures highly centralized and have lose structures

highly centralized and have rigid structures

A ________ group is characterized by members who share similar backgrounds and who generally perceive, interpret, and evaluate events in similar ways. bicultural multicultural homogeneous token

homogeneous

The ________ culture is characterized by a strong emphasis on equality and personal orientation. guided missile family Eiffel Tower incubator

incubator

________ cultures often create environments where participants thrive in an intense, emotional commitment to the nature of the work. Family Incubator Guided missile Eiffel Tower

incubators

The guided missile culture is characterized by ________. a paternal relationship with management a formal hierarchy individual expertise personal orientation

individual expertise

Philosophers such as David Hume, Adam Smith, and Aristotle contributed to the ideology of ________. socialism communism individualism collectivism

individualism

Hofstede's ________ dimension focused on the tendency of people to look after themselves and their immediate family rather than the tendency to belong to groups to look after each other in exchange for loyalty. power distance uncertainty avoidance masculinity versus femininity individualism versus collectivism

individualism vs collectivism

Which of the following dimensions measures the freedom to satisfy one's natural needs and desires within a society? Achievement versus ascription Universalism versus particularism Indulgence versus restraint Specific versus diffuse

indulgence versus restraint

Which of the following industries would constitute the white-collar service industries? Steel and autos Insurance only Agriculture Insurance and banks

insurance and banks

In the context of offshoring, some informed observers note that technology already has eliminated much and in the future will eliminate even more of the work being done by: line employees and service staff. middle managers and white-collar staff. maintenance workers. top level managers.

middle managers and white-collar staff

Low-uncertainty-avoidance societies have organization settings with: more written rules. less risk taking by managers. lower labor turnover. more ambitious employees.

more ambitious employees

In the context of technological advancements, emerging information technology has made work ________. more risky more complicated more portable more tedious

more portable

In the context of offshoring, which of the following factors has placed pressure on multinational corporations to outsource production? Lack of cheap and expert labor Global and internal competition Profit expectation by governments Mounting cost pressure

mounting cost pressure

A ________ group is a group in which there are individuals from three or more different ethnic backgrounds, such as three U.S., three German, three Uruguayan, and three Chinese managers who are looking into mining operations in Chile. homogeneous token bicultural multicultural

multicultural

Firms with a polycentric predisposition have a strategy of ________. global integration and national responsiveness global integration regional integration and national responsiveness national responsiveness

national responsiveness

In practice, guanxi resembles ________. parochialism individualism commercialism nepotism

nepotism

The Eiffel Tower culture is most commonly found in: northeastern Asian countries, such as Taiwan, South Korea, and Japan. northwestern European countries, such as Germany, Denmark, and the Netherlands. North Atlantic countries, such as England, Ireland, and Canada. South American countries, such as Brazil, Argentina, and Chile.

northwestern European countries, such as Germany, Denmark and the Netherlands

According to Dutch researcher Geert Hofstede, there are four original dimensions of culture. These are: power distance, uncertainty avoidance, individualism, and masculinity. group orientation, uncertainty avoidance, aggressiveness, and masculinity. tolerance, group orientation, aggressiveness, and forwardness. tolerance, power distance, individualism, and aggressiveness.

power distance, uncertainty avoidance, individualism, and masculinity

Which of the following statements is true about totalitarianism?

power is often maintained by suppression of opposition, which can be violent

Countries that have high individualism and relatively low power distance: prefer others to do things for themselves. are collectivist in their approach. are not upset when others have more power than they do. are upset when others have more power than they do.

prefer others to do things for themselves

The Transparent Agents Against Contracting Entities (TRACE) standard was developed to: serve as a formal agreement by a host of industrialized nations to outlaw the practice of bribing foreign government officials. prevent multinationals from disguising personal payments as consulting fees. prevent the shifting of corrupt practices to suppliers and intermediaries. support and respect the protection of international human rights within their sphere of influence.

prevent the shifting of corrupt practices to suppliers and intermediaries.

As companies become what Alder calls "multinational firms," they often find that ________ tends to dominate all other considerations and the direct impact of culture may lessen slightly. durability price quality serviceability

price

The ________ holds that governments have the right to rule themselves as they see fit. principle of sovereignty protective principle territoriality principle nationality principle

principle of sovereignty

Confucianism, associated with China, does not emphasize: balance. harmony. profit. respect for authority.

profit

In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by all of the following opportunities except ________. earnings profit-sharing plans recognition advancement

profit-sharing plans

In the context of collectivism, the Greek philosopher Plato believed that: a classless society would help keep people focused on societal goals. property should be commonly owned. individual desires should be viewed as the most important. individual rights should be secured.

property should be commonly owned

A(n) ________ predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis. regiocentric ethnocentric geocentric polycentric

regiocentric

A firm with an ethnocentric orientation: redistributes profits globally. retains profits in host country. repatriates profits to home country. redistributes profits within region.

repatriates profits to home country

To qualify as a multinational corporation (MNC), a firm must meet all of the following criteria except: a mix of nationalities among managers and owners. sales of at least one million dollars per year. operations in more than one country. international sales.

sales of at least one million dollars per year

The way in which a manager working in the country of Batangonia interacts with a manager working in the country of Octavia is the same way in which he or she behaves when doing business with an executive working in the country of Cordia. This scenario exemplifies ________. simplification parochialism symbolism ethnocentrism

simplification

Cultures with a low masculinity place great importance on conservation of the environment and tend to favor ________. small-scale enterprises underdeveloped countries less developed countries third world countries

small-scale enterprises

Austria, the United Kingdom, the United States and Switzerland all are ________ cultures. emotional specific diffuse neutral

specific

In the context of the treatment and rights of aliens, countries have the legal right to refuse admission of foreign citizens and to impose special restrictions on all of the following except ________. conduct right of travel spending what business they may conduct

spending

According to Lee's research in Singapore on small Chinese family businesses, older generations tend to: stress strategies. focus on individual performance. strive for new horizons. stress hierarchies.

stress hierarchies

By 2017, foreign direct investment (FDI) is estimated to: experience a significant drop similar to the global recession of 2009. reach an all-time low due to political instability and uncertain markets. surpass the all-time high set a decade earlier in 2007. experience an insignificant rise due to a slow rate of increase of merchandise exports.

surpass the all-time high set a decade earlier in 2007

The ________ holds that every nation has the right of jurisdiction within its legal territory. territoriality principle sovereignty principle protective principle nationality principle

territoriality principle

Unlike Western perspectives, Eastern perspectives ________. provide an account of what character traits contribute to pursuing and realizing the good in concrete ways emphasize the greatest happiness principle as an individual's moral standard are based on a logic similar to an economic calculation of utility or cost-benefit typically hold that people are an intrinsic and inseparable part of the universe

typically hold that people are intrinsic and inseparable part of the universe

In the ________ stage of group development, attention may be directed more toward describing and analyzing the problem or task that has been assigned. action work entry reflection

work

According to Aristotelian virtue ethics, which of the following statements is true? A good, or virtuous, individual does what is right for the right reasons. A given act is morally correct if the ratio of benefit to harm is greater than the ratio resulting from an alternative act. The universe is described and categorized from a detached, objective viewpoint. Social and institutional arrangements play an insignificant role in the formation of good character in individuals.

A good, or virtuous, individual does what is right for the right reasons

Identify a characteristic of social democracy.

Achievement of goals through nonviolent revolution

Identify a characteristic of social democracy. Loyalty of an individual toward his or her nation Achievement of goals through nonviolent revolution Complete control over every facet of political and human life Transference of ownership of a business from individuals to a government

Achievement of goals through nonviolent revolution

Which of the following is likely to present an opportunity for MNCs to make a positive impact in developing countries? Lax environmental standards Underdeveloped infrastructure Low wage rates Adoption and exportation of best practices

Adoption and exportation of best practices

Which of the following is a characteristic of a high-context culture? Deep personal involvement with others is not valued greatly. Insiders and outsiders are not readily distinguishable. Individuals are taught from a very early age to say exactly what they mean. Agreements tend to be spoken rather than written.

Agreements tend to be spoken rather than written

If businesspeople in ________ commit themselves to a date in the future and fail to show up, they may feel no guilt or concern because they believe they have no control over time in the first place. France Arab countries China Great Britain

Arab countries

The Asian economic block, made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Cambodia, Myanmar, and Vietnam, is referred to as the: Southeast Asia Common Market. Southeast Asia Free Trade Agreement (SEAFTA). Asian Economic Union. Association of Southeast Asian Nations (ASEAN).

Association of Southeast Asian Nations (ASEAN)

The typical broad, self-deprecating ________ commercial amuses by mocking both the advertiser and consumer. British Chinese Japanese French

British

Which of the following cultural characteristics should be kept in mind when conducting business in Russia? Giving gifts to those with whom one wants to transact business is regarded as bribery. Building personal relationships with partners is important. Russian expatriates score high on business practices. Businesspeople should try and settle business deals quickly.

Building personal relationships with partners is important

Which of the following cultural characteristics should be kept in mind when conducting business in Russia? Giving gifts to those with whom one wants to transact business is regarded as bribery. Businesspeople should try and settle business deals quickly. Russian expatriates score high on business practices. Building personal relationships with partners is important.

Building personal relationships with partners is important

In the context of established economies, the United States has considerable foreign direct investment in ________. Canada the Netherlands the United Kingdom Mexico

Canada

________ is the United States' largest trading partner, a position it has held for many years. Japan England Mexico Canada

Canada

Which of the following economies is projected to become the largest by 2050 using market exchange rates? China Australia India Brazil

China

Guanxi is an important dimension of the ________ culture. Arabian Brazilian Chinese Russian

Chinese

In early 2010, the issue of relatively low wages paid by ________ subcontractors made the headlines after a number of suicides by workers at factories run by Foxconn. Vietnamese Chinese Mexican Malaysian

Chinese

________ comes from English law and is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and others. Civil or code law Common law Socialist law Islamic law

Common law

________ can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm. Corporate social responsibility Law Governance Ethics

Corporate social responsibility

Which of the following is one of the biggest problems in Russia and in other transition economies? Social democracy Nationalization Corruption Privatization

Corruption

According to the latest corruption index of countries around the world, the country with the lowest level of perceived corruption is ________. Mexico Brazil Denmark Hong Kong

Denmark

Which of the following describes the relationships between employees in the family culture? Specific tasks in cybernetic system targeted on shared objectives Diffuse, spontaneous relationships growing out of shared creative process Specific role in mechanical system of required interaction Diffuse relationships to organic whole to which one is bonded

Diffuse relationships to organic whole to which one is bonded

The ________ holds that there must be mutual respect for the laws, institutions, and the government of other countries in the matter of jurisdiction over their own citizens. doctrine of protectionism doctrine of comity doctrine of civility doctrine of mutual understanding

Doctrine of comity

In the context of international corporation evolution, which of the following corporations has an ethnocentric perspective? International corporations Global corporations Domestic corporations Multinational corporations

Domestic corporations

Which of the following views the individual as part of, rather than separate from, nature? Aristotelian virtue ethics Utilitarianism Kantian philosophical traditions Eastern philosophy

Eastern philosophy

________ can be best defined as an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability. Trade union Fair trade Nongovernmental organization activism Corporate governance

Fair trade

According to a study conducted by the World Economic Forum, an international nonprofit organization that measured the economic opportunities and political empowerment of women by nation in 2015, Japan occupied the first rank in the "gender gap index."

False

According to the priorities of cultural values of the United States, Japan, and Arab countries, independence is the top cultural priority in Japan.

False

Among international firms, which focus on exporting and producing abroad, cultural diversity has a relatively weak impact on their external relationships with potential buyers and foreign employees.

False

An ethnocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.

False

As the diversity of a group increases, the likelihood of all members perceiving things in the same way increases sharply.

False

At Deloitte, employees are trained to adapt to the cultural differences that their globally located leaders exhibit.

False

At Xiaomi, individual achievement is highly regarded.

False

Biotech companies mainly manufacture drugs through a process similar to that of organic chemistry and are unable to discover genetic abnormalities.

False

Collectivism emerged in Poland and France as "national socialism."

False

Common law is derived from Roman law and is found in non-Islamic and nonsocialist countries such as France, some countries in Latin America, and even Louisiana in the United States.

False

Communism is an authoritarian political ideology that considers individual and other societal interests inferior to the needs of the state.

False

Fascism is an extreme form of socialism that was realized through violent revolution and was committed to the idea of a worldwide communist state..

False

Hofstede found that wealthy countries have higher collectivism scores and poorer countries higher individualism scores.

False

Hungary's economy was the only economy in the EU to continue to grow during the global recession of 2008-2009.

False

In Japan, compensation levels are determined by using skill, ability, and performance.

False

In Japan, people often are hired based on what they can do for the firm in the short run because many of them eventually will quit or be downsized.

False

In a command economy, a general balance between supply and demand sustains prices, while an imbalance creates a price fluctuation.

False

In a high-context culture, relationships between individuals are relatively short in duration.

False

In a low-context culture, insiders and outsiders are readily distinguished.

False

In the United States, companies tend to reach out to the government for assistance when finances are pressured.

False

In the context of Dutch researcher, Fons Trompenaars's relationship orientations, cultures with high universalism focus more on relationships and trust than on formal rules.

False

In the context of Dutch researcher, Fons Trompenaars's relationship orientations, people in high-communitarianism societies stress personal and individual matters.

False

In the context of Hofstede's original four dimensions, countries with low-uncertainty-avoidance cultures have a great deal of structuring of organizational activities, more written rules, less risk taking by managers, lower labor turnover, and less ambitious employees.

False

In the context of corporate governance, the U.K. and U.S. systems have been termed insider systems because ownership tends to be much more concentrated, with shares often being owned by holding companies, families, or banks.

False

In the context of corruption, it was observed that when U.S. multinationals stopped influencing foreign officials through personal payments or political contributions, they were unable to sell in that particular market.

False

In the context of organizational cultures, the Eiffel Tower culture is characterized by a strong emphasis on equality in the workplace and orientation to the person.

False

In the context of the changing global demographics, elderly populations spend money on housing and other capitally financed purchases.

False

In the context of the characteristics of culture, transgenerational means that culture has structure and is integrated; a change in one part will bring changes in another.

False

In the context of values in transition, collectivism is on the rise in Japan.

False

In the work stage of team development, attention may be directed toward decision making and implementation.

False

Kantian moral analysis accepts consequences (either conceivable or likely) as morally irrelevant when evaluating the choice of an agent.

False

Kirkman and colleagues concluded that "working virtually increases team process losses associated with stereotyping."

False

Many NGOs recognize that MNCs fail to adhere to high standards of social and environmental responsibility in host countries' markets.

False

Multicultural teams are most effective when they are assigned to routine tasks.

False

The doctrine of civility holds that there must be mutual respect for the laws, institutions, and governments of other countries in the matter of jurisdiction over their own citizens.

False

The economy of Argentina outweighs that of any other South American country with an economic output comparable to that of France and has become a worldwide presence.

False

According to Hofstede's time orientation dimension, which of the following statements is true about long-term-oriented societies? Traditions are sacrosanct. Service to others is an important goal. Family life is guided by shared tasks. Students attribute success and failure to luck.

Family life is guided by shared tasks

________ is the term used to indicate the amount invested in property, plant, and equipment in another country. Exporting Importing Trade imperfection Foreign direct investment

Foreign direct investment

Many in the United States believe that it is more difficult to get along with the ________ than with other Europeans. Germans Austrians French Spanish

French

Statistics show that on average, ________ workers have the longest vacations in the world, four to five weeks annually. Indian French Chinese Arabian

French

Identify the country in which Shell's operating company prioritized the HAIRL appraisal system by putting leadership at the top of the list and helicopter at the bottom. France The Netherlands Germany Britain

Germany

Which of the following countries prefers advertising that is factual and rational? France China India Germany

Germany

In the context of human rights, identify a true statement about women's rights and gender equity. Germany has seen an increase in the number of women both in the workforce and in management positions. Japan has equal opportunity initiatives, whether they are guaranteed by law or are represented by growing social groups. Many women college graduates in Great Britain are still offered only secretarial or low-level jobs. Two-thirds of businesses in France have no female members on their senior leadership teams.

Germany has seen an increase in the number of women both in the workforce and in management positions

Which of the following cultures is characterized by a universal method of greeting an equal by pressing one's palms together in front of the chest and saying, "namaste"? The Arabian culture The Indian culture The Russian culture The Brazilian culture

Indian culture

In general, French employees give utmost importance to quality of life and do not derive much motivation from professional accomplishment.

True

________ is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness. International complacency Globalization imperative Worldwide indifference Cross-cultural contentment

Globalization imperative

In the context of bureaucratization, which of the following statements is true of Japan? Parochial actions are highly unlikely to create problems for multinational corporations trying to do business. Government controls are inefficient and need to be corrected to encourage multinational corporations to do business. Politicians are more interested in the long-term well-being of the nation as a whole than in the well-being of their own districts. The banking system is expansionary, and there is very little room for reformation.

Government controls are inefficient and need to be corrected to encourage multinational corporations to do business

Which of the following fundamental questions is not included in the specific objectives of the GLOBE project? Are there leader behaviors, attributes, and organizational practices that are accepted and effective in only some cultures? What is the effect of violating cultural norms that are relevant to leadership and organizational practices? What is the relative standing of each of the cultures studied on each of the nine core dimensions of culture? How do attributes of societal and organizational cultures affect the behaviors of lower-level workers in an organization?

How do attributes of societal and organizational cultures affect the behaviors of lower-level workers in an organization

All of the following companies have been criticized by NGOs for actions portraying lack of social responsibility in developing countries except ________. Levi's Nike Chiquita Hewlett-Packard

Hwelett-Packard

In the context of the changing global demographics, identify a change that will be seen in developed nations. In South Korea, the immigration policy will ease by 2050. In Japan, the number of nonworkers will be nearly equal to that of workers by 2050. In Germany, there will be a removal of restrictions on agricultural products, auto parts, and energy goods. Developed Asian nations will be able to easily replace the retiring, aging population.

In Japan, the number of nonworkers will be nearly equal to that of workers by 2050

Identify an accurate statement about the link between cultural clusters and compensation strategies. In countries that have a high individualism index, profit-sharing plans are highly effective. In Pacific Rim countries, incentive plans should be individual-based. In Great Britain, managers value collectivism. In high-masculinity cultures, high salaries should be paid to senior-level managers.

In high-masculinity cultures, high salaries should be paid to senior-level managers

In the context of emerging and developing economies, identify a true statement about India. Indians are known for their advanced information technology expertise. Its political instability is pervasive, which generates substantial risks for foreign investors. Indian government is unable to provide funds for economic development. The overwhelmingly diverse people of India mostly speak tribal languages and dialects.

Indians are known for their advanced information technology expertise

Which of the following statements is true about utilitarianism? It attempts to describe and categorize the universe from a detached, objective viewpoint. It is an attractive perspective for business decision making. It emphasizes the formation of good character in individuals. It is aimed at minimizing utility and maximizing morality.

It is an attractive perspective for business decision making

Which of the following statements is incorrect about the treaty that initially included 29 nations that belong to the Organization for Economic Cooperation and Development (OECD) and marked a victory for the United States?

It outlaws most payments to political party leaders.

In the context of established economies, despite setbacks, ________ remains a formidable international competitor and is well poised in all three major economic regions: the Pacific Rim, North America, and Europe.

Japan

Paternalism, measured by a manager's involvement in both personal and off-the-job problems of subordinates is very important in ________. Australia Japan France the United States

Japan

According to a cross-cultural study of differences in work values, ________ managers placed a high value on deference to superiors, company commitment, and the cautious use of aggressiveness and control. German French Japanese U.S.

Japanese

In the context of product focus in the smartphone industry, which of the following approaches is used by Apple to achieve success? Imitating patent-protected technology Maintaining first-mover advantage Adjusting production to meet demand Celebrating collaboration between employees and the public

Maintaining first-mover advantage

Which of the following statements is true about women's rights and gender equity in Japan?

Many women college graduates are still offered only secretarial or low-level jobs

By the early 1990s ________ had recovered from its economic problems of the previous decade and had become the strongest economy in Latin America. Chile Brazil Mexico Argentina

Mexico

Which of the following countries was not among the world's 10 most competitive nations in 2015? Mexico Germany Singapore Norway

Mexico

Which of the following cultural characteristics should be kept in mind when doing business in Arab countries? Destiny depends on the behavior of individuals. Social status is largely determined by accomplishments. It is necessary to bring an expensive gift for Arab businesspeople. Mutual respect is required at all times.

Mutual respect is required at all times

The ________ is a free-trade agreement among the United States, Canada, and Mexico that has removed most barriers to trade and investment. NAFTA . . CAFTA . . AFTA EFTA

NAFTA

Identify a statement about NGOs that is false. Large global NGOs are active in all parts of the world. NGO activism has been responsible for minor changes in corporate behavior and governance. NGOs are regarded as a counterweight to business and global capitalism by some observers. The force of NGOs has been felt in a range of major public policy debates.

NGO activism has been responsible for minor changes in corporate behavior and governance

The ________ holds that every country has jurisdiction (authority or power) over its citizens no matter where they are located

Nationality principle

The United States, Canada, and Mexico make up the ________, which in essence has removed all barriers to trade among these countries and created a huge North American market. General Agreement on Tariffs and Trade North American Trade Union North American Common Market North American Free Trade Agreement

North American Free Trade Agreement

________ is a pattern of basic assumptions that is developed by a group as it learns to cope with problems of external adaptation and internal integration and is taught to new members as the correct way to perceive, think, and feel in relation to these problems. Organizational learning Organizational change Organizational structure Organizational culture

Organizational culture

Identify a true statement about the different approaches identified by Dutch researcher, Fons Trompenaars to describe the ways in which people deal with the concept of time. People in Mexico often build slack into their schedules to allow for interruptions. People in the United States operate under more of a synchronous-time orientation. People in the United States adjust their approach because of factors that are beyond their control. People in Mexico give utmost importance to the particular path or sequence used to reach an end.

People in Mexico often build slack into their schedules to allow for interruptions

Which of the following statements is true about cultures with high communitarianism? People jointly assume responsibility. Negotiations are typically made on the spot by a representative. Entrepreneurial spirit is most likely high. People give more importance to personal and individual matters.

People jointly assume responsibility

In the context of how people deal with the concept of time, which of the following statements is true about the sequential approach identified by Dutch researcher, Fons Trompenaars? Schedules are subordinate to relationships. People show a strong preference for following plans but are likely to deviate. Appointments are approximate and may be changed at a moment's notice. People tend to do only one activity at a time.

People tend to do only one activity at a time

Which of the following statements is true about the economy of Poland? The consensus decision-making system of Poland turns out to be too time-consuming in the new speed-based economy. During the 1970s and 1980s, Poland's economic success had been without precedent. Poland's economy was the only economy in the European Union to grow during the global recession of 2008-2009. Poland is among the largest of the former communist countries that receive the least media coverage.

Poland's economy was the only economy in the European Union to grow during the global recession of 2008-2009

Which of the following statements is true of the Eiffel Tower culture? It is well equipped to handle changes. Job assignments are flexible, and personnel do whatever it takes to get the job done. Replacing the person holding the top position affects work of the organization members. Relationships are specific, and status remains with the job.

Relationships are specific, and status remains with the job

According to the latest corruption index of countries around the world, the country with the highest level of perceived corruption is ________. Ukraine Somalia Chile Poland

Somalia

In addition to Japan and China, the important economies in Asia are: Singapore, South Korea, Indonesia, and Thailand. Thailand, South Korea, Indonesia, and Hong Kong. Indonesia, South Korea, Japan, and Taiwan. South Korea, Hong Kong, Singapore, and Taiwan.

South Korea, Hong Kong, Singapore, and Taiwan

According to the GLOBE Cultural Variable Results, which of the following countries were the most assertive? Ireland and Sweden Egypt and the United States Spain and the United States Spain and Ireland

Spain and the United States

In the context of Hofstede's original four dimensions, cultures with a high masculinity index tend to favor earnings, advancement, and challenge.

True

Which of the following describes the attitude toward authority in the Eiffel Tower culture? Status is achieved by project group members who contribute to a targeted goal. Status is achieved by individuals exemplifying creativity and growth. Status is ascribed to parent figures that are close and powerful. Status is ascribed to superior roles that are distant yet powerful.

Status is ascribed to superior roles that are distant yet powerful

In the context of corruption, the ________ standard was developed as a way to prevent the shifting of corrupt practices to suppliers and intermediaries.

TRACE

Which of the following statements is true according to the reports that were released in 2004 and 2011 by the Goldman Sachs global economics team? The economies of Indonesia, Mexico, and Turkey could expand significantly in the coming decades. The BRIC (Brazil, Russia, India, and China) economies' share of world growth could rise significantly from 2003 to 2025. The E7 (Brazil, China, India, Indonesia, Mexico, Russia, and Turkey) economies would mature and slow down in terms of market exchange rates. The economies of Russia and Brazil would remain unaffected by the low prices for oil and other commodities in the years 2015 and 2016.

The BRIC (Brazil, Russia, India, and China) economies' share of world growth could rise simnifically from 2003 to 2025

In which of the following cultures punctuality is a strong suit? The Brazilian culture The Chinese culture The Arabian culture The Indian culture

The Chinese culture

According to the World Bank, which of the following economies does not rank high on the ease-of-doing-business index?

The Philippines

Which of the following statements is true about the adage "When in Rome, do as the Romans do"? The adage is derived from the idea of cultural relativism. Its logic is similar to an economic calculation of utility or cost-benefit. The adage assumes that an individual is distinct from the entire universe. It is derived from the idea that a virtuous individual derives utmost satisfaction from his or her good actions.

The adage is derived from the idea of cultural relativism

Which of the following types of organizational cultures is power-oriented and headed by a leader who is regarded as a caring parent? The family culture The incubator culture The Eiffel Tower culture The guided missile culture

The family culture

Which of the following statements is true of democracy? Impartial public service restricts freedom of expression and assembly. Once elected, a representative cannot be reelected. The government is controlled by the citizens either directly or through elections. Once elected, a representative can no longer be held accountable for his or her actions.

The government is controlled by the citizens either directly or through elections

Which of the following types of organizational cultures is most likely egalitarian and project-oriented? The Eiffel Tower culture The guided missile culture The incubator culture The family culture

The guided missile culture

In which of the following types of organizational cultures are organizations typically entrepreneurial and provide an environment for the self-expression and self-fulfillment of their members? The incubator culture The guided missile culture The Eiffel Tower culture The family culture

The incubator culture

Which of the following types of organizational cultures can be considered a fulfillment-oriented culture? The family culture The Eiffel Tower culture The guided missile culture The incubator culture

The incubator culture

Which of the following constitutes an ambitious agenda to significantly improve the human condition by 2030? The Human Rights Act 1993 The Foreign Corrupt Practices Act The NAFTA The seventeen Sustainable Development Goals

The seventeen Sustainable Development Goals

In the context of Hofstede's original four dimensions, organizations in high-power-distance countries will tend to be centralized and have tall organization structures.

True

Which of the following is associated with the dimension of pragmatic conduct? To pursue clear aims and objectives To comply with clear and definite systems To put the demands and expectations of the customers first To put the expertise and standards of the employing organization first

To put the demands and expectations of the customer first

In the context of Arab countries, what is meant by the expression Bukra insha Allah? Tomorrow if God wills Good connections Time is money Greetings to you

Tomorrow if God wills

Identify a true statement about the Development Round in which the members of the World Trade Organization (WTO) met and launched a round of negotiations at Doha, Qatar in November 2011. There was a lack of consensus among WTO members regarding unbalanced population pyramids. The WTO members agreed upon the issues of competition. The WTO members agreed upon the opening of government procurement markets to companies in the developed nations. There was a lack of consensus among WTO members regarding agricultural subsidies.

There was a lack of consensus among WTO members regarding agricultural subsidies

Which of the following statements is true about Kantian philosophical traditions? They state that rational beings are incapable of evaluating their choices through the lens of a universal law or the "categorical imperative." They ask to accept consequences, either conceivable or likely, as morally relevant when evaluating the choice of an agent. They argue that individuals have responsibilities based on a core set of moral principles that go beyond those of narrow self-interest. They argue that what is distinctive about rational behavior is the fact that it is self-interested and purpose driven.

They argue that individuals have responsibilities based on a core set of moral principles that go beyond those of narrow self interests

Which of the following statements is true about stateside Japanese managers? They perceived obedience and conformity to be very important. They believed that job security was important. They accepted the idea that one should not question a superior. They believed that unconditional tenure in one organization is of major importance.

They believed that job security was important

Which of the following statements is true about French workers? They have a reputation for high productivity. They derive motivation from professional accomplishment. They are known to have an intense work ethic. They are willing to sacrifice their leisure time.

They have a reputation for high productivity

Which of the following is the identity dimension of corporate culture? To identify with and uphold the expectations of the employing organizations To strive for accuracy and attention to detail To put the demands of the job before the needs of the individual To put the needs of the individual before the needs of the job

To identify with and uphold the expectations of employing organizations

A firm with an ethnocentric predisposition may find it difficult to implement a geocentric strategy because it is unaccustomed to using global integration.

True

A major benefit of culturally diverse groups is that they can prevent groupthink.

True

A neutral culture is one in which emotions are held in check.

True

A vast network of fiber-optic cables that are used for almost all transoceanic communication lead to a great deal of system vulnerability.

True

About 46 percent of employees in both the United States and Russia would prefer a work schedule that fluctuates between work and leisure, mirroring a pattern of recurring sabbaticals.

True

An increase in the ease of travel between countries is an important development that has occurred because of the North American Free Trade Agreement (NAFTA).

True

Andre Laurent's research found that cultural differences actually are more pronounced among foreign employees working within the same multinational organization than among personnel working for firms in their native lands.

True

Both domestic and international political environments have a major impact on multinational corporations.

True

China remains a major risk for investors because they are required to maintain a delicate balance between the country's communist and capitalist systems.

True

Corporate social responsibility includes the actions of a firm that go beyond the requirements of the law and the direct interests of the firm.

True

Despite being unable to take full advantage of globalization, there is still hope in the future for Africa because the potential of African countries remains virtually untapped.

True

Diverse and global teams are one of the most consistent sources of competitive advantage for any organization.

True

Essentially, every citizen should be involved in decision-making processes in a democratic system

True

General Electric (GE) has strategically leveraged social media to improve its long-term brand image.

True

In America, authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down.

True

In Arab countries, initial meetings typically are used to get to know the other party.

True

In China, Confucianism, which was overshadowed, is slowly gaining popularity once again, emphasizing respect for authority, concern for others, balance, harmony, and overall order.

True

In Japan, women in the workforce still experience the effects of a "glass ceiling."

True

In November 2015, Morgan Stanley stated that it has a responsibility to guide the global community toward a low-carbon economy as a financier.

True

A survey of businesspeople from Argentina, Brazil, Chile, Columbia, and Venezuela found that the ________ market, on average, was more important for their economic well-being than any other market. European Union U.S. Mexican Japanese

U.S.

According to a cross-cultural study of differences in work values, ________ managers placed a high value on the tactful acquisition of influence and on regard for others. French U.S. German Chinese

U.S.

The United Nations has a division dedicated to the education, promotion, facilitation, and advocacy of sustainable practices and environmentally sound concerns called the ________. UNIFEM UNODC UNRWA UNEP

UNEP

________ is the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. Masculinity versus femininity Individualism versus collectivism Uncertainty avoidance Power distance

Uncertainty avoidance

Which of the following is critical to doing business in India? Communicating in local languages Understanding Indian values and beliefs Shaking hands while greeting Adopting local dress codes

Understanding Indian values and beliefs

In the context of human rights, which of the following best reflects a glass ceiling effect? Reduction of child labor Sexual harassment at workplace Standardized compensation packages Unequal managerial opportunities

Unequal managerial opportunities

________ are basic convictions that people have regarding what is right and wrong, good and bad, and important or unimportant. Edicts Tenets Values Norms

Values

The ________ is the global organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies. WIPO WTO NAFTA ITO

WTO

In the context of technological advancements, outsourcing, and offshoring, identify a way in which the new technological environment impacts multinational corporations and societies as a whole. Elimination of higher-priced labor Price rise due to cost of equipment Replacement of employees by machines A decline in the cost of doing business worldwide

a decline in the cost of doing business worldwide

The challenge for the future of the European Union is to: absorb its eastern neighbors. have common custom duties. have unified industrial and commercial policies. be able to manufacture high-quality, low-cost goods.

absorb its eastern neighbors

As firms begin exporting to foreign clients and become what Adler calls "international corporations," they must: adapt their approach but not their products to those of the local market. adapt their approach and products to those of the local market. increase the standardization of products and services. adapt their products but not their approach to those of the local market.

adapt their approach and products to those of the local market

In the context of the trends in technology, communication, and innovation, the creation of a digital framework: made the microprocessor obsolete. required satellites for all forms of communication. made business communication vastly more expensive. allowed high-power computer performance at low cost.

allowed high-power computer performance at low cost

Unlike a market economy, a command economy is characterized by: an ignorance of demographic information by management. private ownership of businesses. an appropriate response to consumers' stated needs and desires. insufficient security provided by government subsidies.

an ignorance of demographic information by management

In the context of the shifting balance of economic power in the global economy, which of the following factors has helped boost incomes and wealth in the African continent between 2000 and 2015? An easy immigration process for workers An increase in the price of agricultural products A one-child policy An increase in the size of the elderly population

an increase in the price of agricultural products

In the context of globalization and ethical obligations of MNCs, the transfer of the labor force overseas creates: an ideal environment for women to work in. a general ambiance of nondiscriminatory practices. equal employment opportunities for both men and women. an interesting dynamic in the scope of ethics and corporate responsibility.

an interesting dynamic in the scope of ethics and corporate responsibility

A(n) ________ culture accords status based on age, gender, or social connections. diffuse achievement ascription specific

ascription

Kirkman and colleagues discovered that, to build trust among virtual team members, managers should: build a shared mythology. encourage lapses in unilateral priority shifts. keep the door open except when on private calls. avoid long lags in responding.

avoid long lags in responding

According to most scholars of culture, culture is: inherited or biologically based. specific to single individuals. based on the genetically driven adaptive process of animals. based on the human capacity to symbolize.

based on the human capacity to symbolilze

In a business context, individualism is synonymous with ________. collectivism totalitarianism capitalism socialism

capitalism

In the context of telecommunications, governments are accepting the belief that the only way to attract foreign investment and know-how in telecommunications is to: cede control to private industry. get cheap and efficient labor. get cheaper service providers. get private partners.

cede control to private industry

In the context of technological advancements, outsourcing, and offshoring, multinational corporations have moved certain production activities overseas to capitalize on ________. cheap labor resources increasing costs larger markets higher purchasing power

cheap labor resources

In the context of integrating the dimensions of culture, which of the following are very useful in depicting what countries appear similar in values and to what extent they differ from other country groupings? Cluster distribution Use of pie charts Normal distribution Use of concentric circles

cluster distribution

In the context of technological advancements, outsourcing, and offshoring, low-paid workers in India and Asian countries now are being given subcontracted work such as ________. code-writing jobs insurance jobs auto industry jobs labor-intensive hardware development jobs

code-writing jobs

The ________ specifies the distribution of rights and responsibilities among different participants in a corporation and spells out the rules and procedures for making decisions on corporate affairs. Rainforest Action Network nongovernmental organizations Foreign Corrupt Practices Act corporate governance structure

corporate governance structure

Many foreign governments applauded the investigations under the Foreign Corrupt Practices Act (FCPA) because it helped them: restrict the courts from fining and not imprisoning corrupt parties. reduce internal political problems for U.S. allies. reduce the risks associated with the derivatives activities of banks. crack down on corruption in their own country.

crack down on corruption in their own country

Rules that dictate the dos and don'ts of employee behavior relating to areas such as productivity, customer relations, and intergroup cooperation are characteristics associated with an organization's ________. culture structure ambience ethics

culture

A(n) ________ culture is one in which both public and private space are similar in size and individuals guard their public space carefully because entry into public space affords entry into private space as well. neutral emotional diffuse specific

diffuse

According to some critics, agreements like North American Free Trade Agreement (NAFTA) and Central American Free Trade Agreement (CAFTA): have been successful in ensuring environmental standards. do not go far enough in protecting property rights. have been successful in preventing the decline of the global working-age population. do not go far enough in ensuring worker rights.

do not go far enough in ensuring worker rights

The area of e-business that will most affect global customers is ________. e-marketing e-retailing and financial services retailing internet sales

e-retailing and financial services

An important dimension of Chinese culture is guanxi, which means ________.

good connections

In the context of socialism, Karl Marx believed that:

governments should own businesses

Which of the following is a characteristic of the Japanese culture? Group orientation Nonconformance to hierarchic position Balance between a group and a personal orientation Merit-based reward

group orientation

When ________ occurs, group participants believe that their ideas and actions are correct and that those who disagree with them are either uninformed or deliberately trying to sabotage their efforts. group reverse vigilance group cognitive inertia groupthink static decision making

groupthink

Critics of globalization believe that: when production moves to countries to take advantage of less-regulated environments, an upward pressure is created on wages and working conditions. the offshoring of business services jobs to lower-wage countries inherently creates greater opportunities at home. growing trade deficits and slow wage growth are damaging economies. the main winners of globalization are the low-wage workers.

growing trade deficits and slow wage growth are damaging economies

The most important dimension of the technological environment facing international management today is ________. improved service technologies transportation agricultural mechanization telecommunications

improved service technologies

According to Dutch researcher, Fons Trompenaars, it is important to play hardball, test the resilience of the opponent, win some objectives, and always lose from time to time when dealing with those from cultures that believe: in compromising. in dominating the environment. in caring for others. in letting things take their natural course.

in dominating the environment

Since the passage of the Foreign Corrupt Practices Act (FCPA), investigations reveal that: U.S. exports to "bribe prone" countries decreased significantly. individual executives started getting increasingly targeted apart from corporations. the act allowed the courts to fine but not imprison guilty parties. the act was unsuccessful in removing bribes as a key competitive tool from the Middle East.

individual executives started getting increasingly targeted apart from corportations

When compared with domestic law, international law is less coherent because: its sources embody only the treaties and conventions of individual countries concerned with any dispute. it is derived from the Marxist socialist system and is highly influenced by the regulations prevalent in former communist countries. it contains unwritten understandings that arise from repeated interactions among nations. its sources embody only the laws of individual countries concerned with disputes.

it contains unwritten understandings that arise from repeated interactions among nations

Identify a correct statement about cellular infrastructure. It cannot be installed easily and cost-efficiently in rural areas. It is expensive to install. It is quick and relatively inexpensive to install. It is relatively inexpensive to install but takes time.

it is quick and relatively inexpensive to install

According to the principles of the global compact, the elimination of discrimination with respect to employment and occupation falls under the category of ________. human rights environment anticorruption labor

labor

According to the principles of the global compact, the principle "Freedom of association and the effective recognition of the right to collective bargaining" applies to ________. environment anticorruption labor human rights

labor

Nations that are collectivist in their approach tend to be characterized by: large power distance and low individualism. low power distance and high individualism. large power distance and weak uncertainty avoidance. small power distance and weak uncertainty avoidance.

large power distance and low individualism

In the context of bureaucratization, Japanese businesses are becoming aware of the fact that: local consumers are paying a heavy price due to the bureaucratic red tape. government bureaucracy has created a true sense of security. they are heavily dependent on their local market for maximum number of goods and services. they are well prepared to face the harsh competitive realities of the international marketplace.

local consumers are paying a heavy price due to the bureaucratic red tape

According to a study by Ronald Lessen and Fred Neubauer, unlike Spanish negotiators, French negotiators: employ persuasion through emotional appeal. look for a meeting of minds. develop trust on the basis of frequent and warm interpersonal contact and transaction. give importance to social competence.

look for a meeting of minds

The United States has a ________. high-context culture variable-context culture low-context culture moderate-context culture

low-context culture

A factory, the majority of which are located in Mexican border towns, that imports materials and equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export is referred to as ________. a keiretsu a maquiladora a governmental agency a vertically integrated corporation

maquiladora

A ________ exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices. mixed economy socialist economy market economy

market economy

According to Hofstede, countries with a high ________ encourage individuals to be independent decision makers and to define achievement in terms of recognition and wealth. uncertainty avoidance power distance individualism score masculinity index

masculinity index

Hofstede's ________ dimension looked at the relationship between gender and work roles. power distance individualism versus collectivism masculinity versus femininity uncertainty avoidance

masculinity versus femininity

Dutch researcher, Fons Trompenaars, recommends that when people from specific cultures do business in diffuse cultures, they should ________. try to get to the point and be efficient learn to structure meetings with the judicious use of agendas not get impatient when people are being indirect or circuitous not acknowledge achievements or skills that are irrelevant to the issues being discussed

not get impatient when people are being indirect or circuitous

Agreements like NAFTA and CAFTA: do not include supplemental commitments like the FTAA does on labor and the environment to encourage countries to upgrade their working conditions and environmental protections. provide firms with enough security so they cannot go out of business, which simply encourages a lack of efficiency or incentive to monitor costs. not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights. rely exclusively on MNCs exporting or setting up operations locally rather than buying out a domestic firm.

not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights

Societal collectivism refers to the degree to which: organizational and societal institutional practices encourage and reward collective distribution of resources and collective action. individuals in organizations or societies encourage and reward individuals for being fair. individuals express pride, loyalty, and cohesiveness in their organizations or families. individuals in organizations or societies are confrontational.

organizational and societal institutional practices encourage and reward collective distribution of resources and collective action

In the context of corporate governance, the U.K. and U.S. systems have been termed ________ systems because of dispersed ownership of corporate equity among a large number of external investors. outsider cascade insider ethical

outsider

The subcontracting or contracting out of activities to external organizations that had previously been performed by a firm is called ________. insourcing outsourcing offshoring homesourcing

outsourcing

In the context of corporate governance, in an insider system, such as that in many continental European countries, ________. institutions have limited direct control institutional investor ownership is predominant corporate equity is largely dispersed among outside stakeholders ownership tends to be much more concentrated

ownership tends to be much more concentrated

In an attempt to achieve its secondary goal of inspiring sustainability across the entire automobile industry, Tesla ________. partnered with Mercedes to provide power train components for its electric models introduced a full-size SUV, named the Model X, as the latest addition to its fleet in late 2015 designed a high-performance sports car that could accelerate from zero to 60 in less than four seconds partnered with Toyota to design luxury sedans for the masses

partnered with Mercedes to provide power train components for its electric models

Adopters of individualism adhere to the philosophy that: communism in its extreme form is realized through violent revolution. people should be free to pursue economic and political endeavors without constraint. government interest should solely influence individual behavior. the needs and goals of society at large are more important compared to individual desires.

people should be free to pursue economic and political endeavors without constraint

An achievement culture is one in which people are accorded status based on their ________. gender age social connections performance

performance

Unlike the organizational culture in the United States, in the family culture, appointments to a high-level, sensitive position are most likely to be based on ________. technicality personal relationships personal accomplishments creativity

personal relationships

Firms with a(n) ________ predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates. regiocentric polycentric ethnocentric geocentric

polycentric

Countries in which people blindly obey the orders of their superiors have a high ________. power distance individualism index uncertainty avoidance masculinity index

power distance

U.S. laws require equality in the workplace for all employees. U.S. citizens who take a job in Germany cannot sue their German employer under the provisions of U.S. law for failure to provide equal opportunity for them. This exemplifies the: doctrine of comity. act of state doctrine. principle of sovereignty. nationality principle.

principle of sovereignty

A method that adjusts GDP to account for different prices in countries is called: purchasing power parity. nominal GDP. current currency exchange rate. cumulative distribution function.

purchasing power parity

Dutch researcher, Fons Trompenaars, recommends that when individuals from achievement cultures do business in ascription cultures, they should: make sure that their group has knowledgeable people who can impress the other side. respect the status and influence of their counterparts in the other group. make sure that their group has sufficient data to convince the other group that they are proficient. respect the knowledge and information of their counterparts on the other team.

respect the status and influence of their counterparts in the other group

According to a study by the Diagnosing Organizational Culture for Strategic Application (DOCSA) group published in 1995, unlike Americans, Europeans: were seen as having a slight identification with their own organization. were perceived as being very open in their communications. saw themselves as somewhat pragmatic in their conduct. were viewed as preferring very loose control.

saw themselves as someone pragmatic in their conduct

When examining the effects of the U.S. environment on the cultural values of Japanese managers working for Japanese firms in the United States, researchers found that these managers: did not believe that job security was important. did not support the organizational values of group orientation and cooperation. perceived obedience and conformity to be very important. supported the concept of formal authority.

supported the concept of formal authority

Development that meets humanity's needs without harming future generations is termed ________. governance sustainability social responsibility corporate responsibility

sustainability

A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in China should ________. tap large pool of labor cities and be prepared that lax labor laws may become more stringent be prepared for high wages and short workweek and expect high productivity from unionized workers understand changing Chinese labor law and prepare for increasing unionization of labor treat unions as partners and allow time for negotiations

tap large pool of labor cities and be prepared that lax labor laws may become more stringent

Experienced travelers report that the primary criterion for doing business in China is ________. hard currency technical competence a persuasive top management savvy marketing

technical competence

A widely held belief that has not been found to be accurate is that organizational culture: tends to be affected by national culture. tends to erase the impact of national culture. cannot easily change the cultural values employees bring to the workplace. is different in different subsidiaries.

tends to erase the impact of national culture

U.S. firms maintain particularly dominant global positions in all of the following industries except: textiles. biotechnology. telecommunications. media.

textiles

U.S. multinational corporations always assumed that bribes were required to ensure contracts in ________. India Asia Pacific Eastern Europe the Middle East

the Middle East

Norms of an organization are reflected by: the way participants feel about the way they are treated by higher-level management. the amount of work to be done. the way employees and customers are treated. the rituals, common language, and terminology used.

the amount of work to be done

The three completed GLOBE phases explore the various elements of the dynamic relationship between ________ and ________. time; the environment political; economic systems physical; psychological well-being the culture; organizational behavior

the culture; organizational behavior

Dutch researcher, Fons Trompenaars's discussion of the dimension of ________ explores whether people believe in controlling outcomes (inner-directed) or letting things take their own course (outer-directed). ascription masculinity the environment time

the environment

Which of the following statements is true of the economic system of North America? The free-market-based economy of this region results in low trade barriers when attempting to move into other countries. The free-market-based economy of this region allows considerable freedom in decision-making processes of private firms. The command economy of this region allows competition to strive while the government can extend assistance to individuals or companies. The command economy of this region allows for high flexibility with decisions and low barriers for other countries to establish business.

the free-market-based economy of this region allows considerable freedom in decision-making processes of private firms

There are three aspects of organizational functioning that seem to be especially important in determining an MNC's organizational culture. They are: the general relationship between the employees and their organization; the hierarchical system of authority that defines the roles of managers and subordinates; and the general views that employees hold about the MNC's purpose, destiny, goals, and their places in them. the general views that employees hold about the MNC's purpose, destiny, goals, and their places in them; the age of the organization; and the degree of cultural diversity among the members of the organization. the degree of cultural diversity among the members of the organization, the age of the organization, and the strength of the organization's leadership. the general relationship between the managers and the rank-and-file employees in the organization, the degree of cultural diversity among the members of the organization, and the hierarchical system of authority that defines the roles of managers and subordinates.

the general relationship between the employees and their organization; the hierarchical system of authority that defines the roles of managers and subordinates; and the general views that employees hold about the MNC's purpose, destiny, goals, and their places in them.

A major development in South America is: the growth of intercountry trade, spurred on by the progress toward free-market policies. the elimination of all trade barriers among member countries. the implementation of a single currency and a regional central bank. the privatization of traditionally nationalized industries.

the growth of intercountry trade, spurred on by the progress toward free-market policies

Keith, a manager in the country of Bodonia, violates a Bodonian law while traveling abroad. He can still be found guilty in Bodonia. This scenario exemplifies ________. Islamic law socialist law the nationality principle the principle of sovereignty

the nationality principle

A firm in the country of Batangonia that sells secret government blueprints of the country of Cambrialand for a satellite system can be subjected to the Cambrialand laws. This scenario exemplifies ________. the nationality principle Islamic law socialist law the protective principle

the protective principle

In the context of the four foundations on which laws are based around the world, Islamic law is derived from: the Marxist socialist system. Roman law. the teachings of the Prophet Muhammad. the ideologies of the Greek philosopher Prophet Farooq.

the teachings of the Prophet Muhammad

A firm based in the country of Iskoolbia that sells a defective hair dryer in the country of Octavia can be sued under Octavian law even though the company is headquartered outside Octavia. This scenario exemplifies ________. the nationality principle Islamic law socialist law the territoriality principle

the territoriality principle

The Environmental Kuznets Curve (EKC) has an inverted U-shape partly because: the emission of wastes decreases with income at relatively low levels of income. working conditions are regularized at relatively low levels of income. compensation packages are standardized at relatively high levels of income. the use of natural resources increases with income at relatively low levels of income.

the use of natural resources increases with income at relatively low levels of income

In the context of human rights, one violation of human rights that resonated with MNCs and made them question whether to move operations into China was: the open discrimination against women in China since 1979. the dramatic increase in the use of death penalty in China. the violent June 1989 crackdown on student protesters in Beijing's Tiananmen Square. the imposition of restrictions on religious practices by foreigners in China in January 1994.

the violent June 1989 crackdown on student protesters in Beijing's Tiananmen Square

Organizational climate is reflected by: high product and service quality. the degree of cooperation between management and employees. the way employees interact with each other. common language, terminology, and rituals.

the way employees interact with each other

Social sustainability for the company Patagonia includes: third-party audits of factories that provide nonbiased assessments of the factories. permission to use formaldehyde in the manufacture of its clothing. the discretion of each factory to determine the percentage of each product that is recyclable. modification of its supply chain from an environmental viewpoint, leaving corporate social responsibility solely in the hands of each supplier.

third-party audits of factories that provide nonbiased assessments of the factories

A group in which all members but one have the same background is referred to as a ________. bicultural group homogeneous group multicultural group token group

token group

A team of employees looks into the benefits and shortcomings of setting up operations in the country of Bodonia. This team consists of a group of retailers from the country of Denebland and an attorney from the country of Altair. This team of employees exemplifies a ________. multicultural group homogeneous group bicultural group token group

token group

Political repression and denial of rights and civil liberties are dominant ideals of ________. totalitarianism collectivism a monarchy a socialist democracy

totalitarianism

Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

true

Cultures with low ________ have people who are more willing to accept that risks are associated with the unknown and that life must go on in spite of this. uncertainty avoidance power distance masculinity index individualism

uncertainty avoidance

In his early research, Dutch researcher, Fons Trompenaars, found that in countries such as the United States, Australia, Germany, Sweden and the United Kingdom, there was high ________. universalism communitarianism particularism individualism

universalism

A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Mexico should ________. use expatriates sparingly and recruit home country nationals at U.S. colleges obtain skilled labor from government subsidized apprenticeship program encourage use of sophisticated selection procedures based on recent public policy shifts prepare for a long process; ensure that your firm is "here to stay"; and develop trusting relationship with recruits

use expatriates sparingly and recruit home country nationals at U.S. colleges

In the context of human resource management (HRM) practices, unlike Americans, Japanese ________. hire people based on what they can do for a firm in the short run view unions in an adversarial manner use group performance appraisal tend to favor specialized training

use group performance appraisals

A partially completed contingency matrix for international human resource management for compensation shows that firms doing business in China should ________. use technical training as reward, recognize egalitarian values, and use "more work more pay" with caution consider all aspects of labor costs use recognition and praise as motivator and avoid pay for performance note high labor costs for manufacturing

use technical training as a reward, recognize egalitarian values, and use "more work more pay" with caution

After becoming part of the North American Free Trade Agreement (NAFTA) in 1994, Mexico: was able to take advantage of the U.S. market. experienced a significant increase in labor costs. experienced a tremendous increase in transportation costs. exhibited significant economic stability.

was able to take advantage of the U.S. market

"Crony capitalism" describes business practices in countries with ________. limited government interference weak corporate governance well-developed legal and institutional protections market-oriented economic systems

weak corporate governance