International bus. test 1
The overall attractiveness of a country as a potential market or investment site for an international business depends on
Balancing the benefits, costs, and risks associated with doing business in that country
When _____ is emphasized, an individual right to do something may be restricted on the grounds that it runs counter to "the good of society"
Collectivism
Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors in its subsidiary, even though it is against the multinational's home-country ethics. Which of the following approaches to business ethics would justify the actions of the multinational company?
Cultural relativism
A major difference between Buddhism and Hinduism is that unlike Hinduism, Buddhism
Does not support a caste system
Why is the European Council said to be the ultimate controlling authority within the EU?
Draft legislation from the commission can become EU law only if the council agrees
Which is the most enduring free trade area in the world?
European Free Trade Association (EFTA)
Which of the following is a legal means by which the state can expropriate the profits from innovations?
Excessive Taxation
A Japanese executives ritual of presenting a business card to foreign business executive is an example of
Folkways
The G20 was originally established to
Formulate a coordinated policy response to financial crises in developing nations
From least integrated to most integrated, the levels of economic integration are a:
Free trade area, a customs union, a common market, an economic union, and a political union
________ arguments suggest that improving working conditions beyond the level required by the law and necessary to maximize employee productivity will reduce profits and are therefore not appropriate.
Friedman's
A ________ is an association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about each other's behavior.
Group
The Volume of the world trade in merchandised goods has been
Growing faster than world GDP
Which of the following persons believed that people should be treated as ends and never purely as means to the ends of others?
Immanuel Kant
Which of the following is a consequence of globalization?
Increasing outsourcing of services
A civil law system tends to be less adversarial than a common law system because the
Judges decisions are based on detailed legal codes
In some countries, the official GNI per capita measured at PPP data does not reflect the actual total annual income because
Large amounts of economic activity may be in the form of barter agreements
Globalization of markets results in markets becoming
Less Diverse
Which of the following established the second largest currency zone in the world?
Maastricht Treaty
Early Outsourcing efforts were primarily confined to
Manufacturing activities
In which of the following economies would the government be most likely to take into state ownership troubled firms whose continued operation is thought to be vital to national interests?
Mixed Economies
Which of the following factors hinders globalization of consumer goods market
National differences in tastes and preferences
Which of the following is a reason the European Union is considered an imperfect economic union?
Not all members of the union have adopted the Euro
Without a strong legal system in a market economy
Private and public entities can expropriate the profits generated by the efforts of private-sector entrepreneurs
In several western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to
Privatization
The finance minister of a country considers several large, state-owned Iron manufacturing units to be inefficient and a source of corruption. To generate resources for public expenditure and promote growth, the government decides to auction an entire iron manufacturing plant to sell it to a strategic investor. This process exemplifies
Privatization
In a pure market economy
Production is determined by the interaction of supply and demand
Max Weber theorized that there was a relationship between Protestantism and the emergence of modern capitalism because
Protestant ethics emphasize the importance of hard work and wealth creation and frugality
What term is used to determine a state in which authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties?
Pseudo-democracies
Six dimensions of culture
Religion, Social structure, Language, Education, political philosophy, economic philosophy
Which system of government generally permits some individual economic freedom but restricts freedom, frequently on the grounds that it would lead to the rise of communism?
Right-wing totalitarian
Which of the following adopted by the member nation of the European Community in 1987, committed member countries to work towards the establishment of a single market by December 31st, 1992?
Single European Act
On average, studies indicate the NAFTA's overall impact has been
Small but positive
According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship
Strong property rights
Which of the following is true regarding international businesses?
All MNE's are international businesses
Which of the following is an example of ethnocentrism?
An American manager criticizes the cultural practices of Saudi Arabia, when he is sent there on business, because it differs from his own cultural norms.
Which of the following was designed to allow GM to operate ethically in South Africa as long as the company did not obey the apartheid laws in its own South African operations?
Sullivan principles
Which of the following is a reason that command economies tend to stagnate?
The abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs
Which of the following observations is correct? a. The economic principles established in the Koran are against free enterprise. b. The economic principles of Islam prohibit the payment or receipt of interest. c. The Koran speaks disapprovingly of earning legitimate profit through trade and commerce. d. Protection of the right to private property is not embedded within Islam.
The economic principles of Islam prohibit the payment or receipt of interest.
Which of the following is correct? a. Protection of the right to private property is not acceptable within Islam b. The economic principles of Islam prohibit the payment or receipt on interest c. The Koran speaks disapprovingly or earning legitimate profit through trade and commerce d. The economic principles established in the Koran are against free enterprise
The economic principles of Islam prohibit the payment or receipt on interest
Since the 1960's, which of the following has been a notable trend in the demographics of the multinational enterprise
The growth of multi-nationals
Managing an international business is different from managing a purely domestic business for which of the following reasons?
The range of problems confronted is wider and more complex
GNI per person figures can be misleading because
They don't consider differences in the cost of living.
Systems that emphasize collectivism tend toward
Totalitarianism
Country A and Country B entered into a free trade agreement recently. After this, Country A starts importing heavy machinery from country B. Country A previously imported such machinery at lower rates from another country. Which of the following has occurred in this scenario?
Trade diversion
A British firm that sets up production units in China is accused of releasing untreated chemical waste into water bodies. The manager of the firm defends the firm stating that, factories in China set up by French and American firms also release untreated chemical waste into water bodies. What approach to business ethics is the manager using?
naive immoralist
________ approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate ethical decision making in a multinational enterprise.
straw man
______ argued that individual diversity and private ownership are desirable
Aristotle
The products of Carmen Stores, an international sports apparel chain, are manufactured in sweatshop factories in China. According to the company president, using sweatshop labor offers a means of livelihood to children and young adults, as well as supplies good quality apparel to customers at a lower cost. She asserts that the actions of the company are justified because it results in the benefit of the maximum number of people. The company president's argument is based on which of the following ethical viewpoints?
utilitarian approach to business ethics
An international U.S.-based company sets up a production unit in a developing country with poor environmental regulations. This contributes to the
global tragedy of the commons.
Hindus believe
in reincarnation, or rebirth into a different body, after death
Which feature of an economic union differentiates it from a common market?
A common monetary and fiscal policy
Which of the following is a step involved in the deregulation of a command economy?
Abolishing laws regulating the establishment and operation of private enterprises
Which of the following explains why economic integration has never been easy to achieve or sustain, despite the strong economic and political arguments in support?
While a nation as a whole may benefit significantly, certain groups may lose
The ________ is primarily responsible for policing the world trading system and making sure nation states adhere to the rules laid down by treaties signed by member states
World Trade Organization
An upper-middle-class manager tends to have hostile relationship with the working-class employees in the firm because of his tendency to perceive himself as superior to them based on his class background. In this example, the manager exhibits:
class consciousness
According to Amartya Sen, development should be
seen as a process of expanding the real freedoms that people experience.
Which of the following statements is true about a class system?
social mobility within a class system varies from society to society.