International Business

Which of these individuals can be considered an entrepreneur?

Shondra started a company that processes plastic bags into fabric used in automobiles.

Which of these individuals can claim product liability from the offender?

The back tire on Brian's motorcycle shredded when still under warranty and caused him to crash

Nations that limit the freedom of religious expression with laws based on religious principles follow the political system of:

Theocratic totalitarianism

Which statement is true of Confucianism?

Three values central to Confucianism are loyalty, reciprocal obligations, and honesty in dealing with others.

Which of these companies is demonstrating a first-mover advantage?

Tide-All Inc. has more than 50 percent market share in the telecom industry, because no other company has invested in this industry before Tide-All Inc.

In 2017, if the GNI per capita of India was $1,820 and its PPP per capita was $7,060, this means that the cost of living in India was lower than the cost of living in

United States

Countries that receive loans from the IMF are required to

adopt specific economic policies to attain stabilization

A country characterized with low uncertainty avoidance and low masculinity will

be less resistant to change and less distinguishing between men and women in the same job.

A major distinction between a conventional bank and an Islamic bank is that Islamic banks

cannot pay or charge interest.

A black economy occurs when

citizens engage in barter agreements to avoid paying taxes

In Samuel Huntington's thesis, global terrorism is a product of the

clash of value systems and ideology between civilizations

When Shari learned that Monica was from a poor neighborhood in the South, she decided to stop befriending her since her own family lives in a wealthy neighborhood along the beach. Shari's choice is an example of

class consciousness

On the Belif peninsula, citizens are restricted in how much land they can own if it creates opposition to the rule of the "common good." What is the political system of the Belif peninsula based on?

collectivism

The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on

collectivism.

Product safety and product liability laws are enforced to protect

consumers.

When compared to American society, Japanese society lacks

dynamism and entrepreneurship.

Jeremy reminded the board members that it is important to understand the inflation rate of a country before entering into business. Jeremy is concerned with the ________ risks of doing business

economic

Lamboria Republic is facing a high rate of inflation, and the government debt in the country is also high. As a result, the country's business environment is beginning to deteriorate, and the profits of the business enterprises are hurt. According to this information, Lamboria Republic is facing what type of risk?

economic

Generally, the costs and risks associated with doing business in a foreign country are typically lower in:

economically advanced countries

One result of the Uruguay Round was

enhanced protection for patents, trademarks, and copyrights.

Savvy Skin Care, a U.S.-based beauty products manufacturer, has set up a manufacturing plant in Hong Kong. This is an example of

foreign direct investment

In economic terms, the long-run monetary benefits of doing business in a country are based on the size of the market, the present purchasing power of consumers and the ________ of the country.

future consumer wealth

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice is an example of the

globalization of production.

When compared to the past, the gap between rich and poor nations today has

gotten bigger

When comparing the three broad types of economic systems, it can be said that

in a command economy, state-owned enterprises have little incentive to control costs and be efficient

Manuel, who works for a multinational company, is often put in teams consisting of people from different cultures. Manuel finds it difficult to function in these teams because, unlike the others, he comes from a culture where building his personal "brand" is emphasized. His culture emphasizes

individualism

The Greek philosopher Aristotle argued for diversity and private ownership. This laid the groundwork for:

individualism

what term is used to describe a society that allows relatively free gratification of basic human drives?

indulgence

When considering innovations and entrepreneurship, it can be said that

innovations in production and business processes lead to an increase in the productivity of labor and capital.

Michelle, an Italian fashion designer, sells her merchandise by exporting it to retail stores in the United States, United Kingdom, and Brazil. According to this information, Michelle is participating in

international trade

The common law system enjoys a degree of flexibility not found in other systems because

it is interpreted by the law courts with regard to tradition, precedent, and custom.

Free trade alone, some argue, is a necessary but not sufficient prerequisite to help "highly indebted poorer countries" (HIPCs) bootstrap themselves out of poverty. They also recommend implementing

large-scale debt relief

A(n) _____ risk occurs when a trading partner opportunistically breaks a contract or expropriates property rights.

legal

A country where "saving face" is valued is an example of which of Hofstede's dimensions?

long term vs short term orientation

Royal Teas, a U.K.-based company employing just 30 people worldwide, generates $1.5 million in revenues of which 60 percent comes from exports to Asian countries. Royal Teas is most likely classified as a

mini-multinational firm

If a country wants to improve its attractiveness as a place for doing business and as an investment site, it should:

move toward a market-based system

Bryan has been asked by his manager to directly contact the CEO of the foreign company they are trying to do business. However, Bryan knows that this is not a socially acceptable practice there, and it is better to wait for the company to contact him. Which aspect of culture is guiding Bryan's decision?

norms

Amartya Sen believed that ________ should also be a factor in the human development index

political freedom

Jonah is a lawyer representing a company in a lawsuit. During the trial, Jonah referred to a court case from ten years ago and asked the witness if she felt her company had acted in a similar manner as the company in the previous case. When Jonah referred to the previous court case, he was relying on ________ to make his case.

precedent

Kendra has red patches on her face after using a protein-based lotion manufactured by Today's Skin Research Lab. She learned that the lotion's steroid levels were beyond the standard levels permitted by the government and the damage caused by the lotion was irreversible. Which standards will address Kendra's grievances?

product liability laws

According to the human development index, average income adjusted for PPP should be sufficient to

provide basic needs such as food and shelter

The main goal of GATT was to

reduce trade barriers

Sun-Jun is a representative for a Chinese company that is based in Confucian culture. When Sun-Jun mentions to his staff that guanxi should be taken into consideration, what is he referring to?

relationships or connections the business has

Theocratic law systems are based on

religious teachings.

Confucianism is based on the idea that personal salvation can be achieved through

right action

A positive economic change from 1960 to 2018 was seen in the

share of world output accounted for by developing nations.

The nation of Gren recently began privatization efforts; however, as a way to protect newly privatized firms, the government imposed strong tariffs on imports from foreign competitors. This has resulted in little competition for these newly privatized firms and essentially created

state monopolies

Those who support globalization recognize that while some concessions occur during the process of globalization, ultimately, it still works because

the benefits outweigh the costs

In contemporary Japanese society, a group is associated with

the company a person works for.

The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in

the lack of incentive to engage in economic activity.

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, while laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that

the legal framework of a country reflects the rulers' dominant political ideology.

The stock of foreign direct investment refers to

the total cumulative value of foreign investments as a percentage of a country's GDP.

The Wilson logo can only be used on sports equipment produced by the Wilson Sporting Goods company. What protects the Wilson logo from being used by another manufacturer?

trademark

While he was shopping for new clothes, Manuel noticed there was a sale on shirts by Ralph Lauren. The Ralph Lauren name is an officially registered ________ in menswear clothing.

trademark

Greta felt very uncomfortable while talking to the store manager because she moved so close to Greta until her face was just inches away. What aspect of the situation was bothering Greta?

unspoken language

Which statement is a general implication of globalization?

As a result of globalization, a severe crisis in one region of the world can affect the entire globe. Globalization is inevitable.

Econometric studies show a hump-shaped relationship between income levels and pollution levels. Which of these statements reflects that relationship?

As an economy grows and income levels rise, initially pollution levels also rise.

What is the common aspect of the teachings of Hinduism and Buddhism?

Both stress the afterlife and spiritual achievement rather than material progress

Which scenario best exemplifies ethnocentrism?

Bryan's belief in the superiority of his culture has resulted in conflicts with his colleagues from different countries.

Which of these companies is taking advantage of the globalization of production?

Daily Diamonds, an American jewelry manufacturer, buys diamonds from South Africa and exports them to India for the cutting process.