International Business

Which of the following statements is TRUE of attitudes?

They are learned from role models.

Which of the following political ideologies states that every aspect of people's lives must be controlled for a nation's political system to be effective?

Totalitarianism

Olive oil prepared in a small Italian oil press factory and sold by large supermarkets in the United States is an example of a ________.

US import

Both Pat and Terry believe that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. Which of the following statements proves that Pat is a communist and Terry is a socialist?

Unlike Pat, Terry does not believe in the elimination of political opponents.

Which of the following approaches to ethical standards for corporate governance reflects the view that the best ethical action is the one that provides the best or the least harm?

Utilitarianism

Which of the following is considered the primary problem for MNCs attempting to define their corporate-wide ethics?

Variations in ethical standards around the world

The ________ is an agency created to provide financing for national economic development efforts.

World Bank

Under the WTO agreement, __

a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures

According to Hofstede's framework, managers should be more precise in their directions to subordinates when _

uncertainty avoidance is high

Behavior that fails to conform to generally accepted social norms is considered _______

unethical

The French Government has placed many restrictions upon the use of the English language within their borders. They argue that the inflow of English movies, music, and literature is responsible for the dilution of their rich culture. Which of the following statements, if TRUE, strengthens their argument?

The sales of English novels have risen sharply, while those of French novels have declined to a corresponding extent.

Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following?

Observe the behavior of people who have gained respect within that cultural environment

As part of opening manufacturing units abroad, a U.S. medical device manufacturer decided to send its production coordinator Chris to Bangladesh. Chris is distressed that people don't come to meetings on time and finds it disrespectful when his team members stand too close to him. Chris may trigger a cross-cultural risk by a(n) _

ethnocentric orientation

Certain attitudes can link groups, such as managers, from different nations more closely than managers within a given nation. As a result, international businesspeople should most likely ___

examine relevant groups when comparing nations

Globalization is criticized because it _

exploits workers in low-wage nations

Apple's product assembly facilities abroad that produce its iPhone are best described as __

foreign direct investment

The trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies is known as __

globalization

The trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.is known as ___

globalization

The value of all goods and services produced by a country's domestic and international activities during a one-year period is the country's __

gross national product (GNP)

The buying of products made in other countries for use or resale in one's own country is an example of ________.

importing

Goods and services purchased abroad and brought into a country are called ___

imports

If MNCs want to take the lead in dealing with ecological interdependence, then they most likely need to __

incorporate sustainability goals into strategic planning

According to Hofstede's framework, a culture with large power distance tends to be characterized by __

inequality between superiors and subordinates

The term ________ refers to entities cooperating across national boundaries.

internationalization

Which theory describes a society of free citizens who have equal basic rights and who cooperate within an egalitarian economic system?

justice theory

Lingua franca means ____

link language

According to Hofstede's framework, cultures that score high on ________ value respect for tradition, thrift, and perseverance, and have strong work ethics.

long-term orientation

Sunny Dew, an American soda company, opened a number of manufacturing units in a developing country. It employed people from the host country to work in the new units. This move radically lowered the poverty rate in the developing country. In this scenario, Sunny Dew is __

making a foreign investment

A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a ________.

multinational corporation

Cultures emphasizing collectivism are more likely to emphasize ________.

nepotism

Which of the following is a cultural component that implies gauging the beauty and appeal of artwork?

Aesthetics

Opponents argue that globalization

eliminates manufacturing jobs in developed nations

is the ability of individuals to move from one stratum of society to another.

Social mobility

Which of the following terms refers to an economic system in which the government owns and controls all types of economic activity?

Socialism

What do communists and socialists have in common?

Both believe that the government should control all types of economic activity.

Which of the following terms is used to refer to the departure of highly educated people from one profession, geographic region, or nation to another?

Brain Drain

Which of the following is a business benefit from corporate social responsibility?

Brand equity

Which of the following is TRUE regarding bribery?

Bribery promotes a culture of dishonesty and immorality.

Which of the following is TRUE about the rights theory?

It is based on the belief that, every human being has rights, and all governments are obligated to protect them

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses?

Capitalism

_ is the environmental impact of greenhouse gases measured in units of carbon dioxide that are emitted by human activity.

Carbon footprint

Which of the following is the most common form of social stratification in the world today?

Class system

Which of the following is the underlying principle of socialism?

Collective welfare of people outweighs the welfare of the individual.

Which of the following statements referring to intellectual property rights and violations is INCORRECT?

Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO).

Which of the following do governments impose upon people to help pay for the consequences of using a particular product?

Consumption taxes

The French Government has placed many restrictions upon the use of the English language within their borders. They argue that the inflow of English movies, music, and literature is responsible for the dilution of their rich culture. Which of the following statements, if TRUE, weakens their argument?

Contemporary French artists have failed to come up with original songs.

_ refers to the replacement of one culture's traditions, folk heroes, and artifacts with equivalents from another.

Cultural imperialism

__ consists of specific learned norms based on attitudes, values, and beliefs of a group of people.

Culture

Which of the following terms is used to refer to habits or ways of behaving in specific circumstances that are passed down through generations?

Customs

__ refers to a political system in which government is organized by and accountable to the people.

Democracy

Stephanie also expects participants to ask: "Are the Chinese as formal and business-oriented as Americans are?" Which of the following would most likely be Stephanie's response?

Don't overlook the importance of personal relationships; friendship comes before business.

___ in the workplace means that a company offers every employee and equal opportunity for work and advancement.

Equity

__ is the layer of corporate social responsibility whereby a company develops a code of conduct that it will follow in its global operations and agrees to operate with greater transparency.

Ethical responsibility

Black and Decker produces tools at a plant in North Carolina and ships the tools to retailers in England. This is an example of which type of international business activity?

Exporting

Crystal Inc. is a multifaceted company that deals with the mining, cutting, and selling of diamonds. It gives distributors and suppliers access to its database to place orders or restock inventories electronically and automatically. Which of the following is the network implemented in the company?

Extranet

Which of the following prohibits U.S. companies from making illegal payments or other gifts or political contributions to foreign government officials for the purposes of influencing them in business transactions?

Foreign Corrupt Practices Act

__ in the workplace means that a company welcomes every employee, whatever their identity, and helps them feel they are an integral part of the organization.

Inclusion

___ cultures value hard work and promote entrepreneurial risk taking.

Individualist

Which of the following is an advantage of conducting business in totalitarian nations?

International companies are less likely to face local political opposition to their activities.

Which of the following functions does a copyright perform?

It gives creators of original work the freedom to publish or dispose of them as they choose.

Which of the following is TRUE of a code of ethics?

It guides decision-making by all employees in the firm.

Konesia is a country with a number of offshore islands. Its landscape is characterized by deep valleys, rocky plains, and impassable mountains. Which of the following statements about the country is TRUE, keeping its topography in mind?

Konesia experiences a slow rate of cultural change.

__ is crucial in production facilities where nonnative managers supervise local employees.

Language proficiency

Which of the following is a characteristic of totalitarian governments?

Leaders rule without the explicit approval of the people.

Which of the following has been a major force increasing globalization in recent decades?

Liberalization of cross-border trade

is often used to measure the technological advancement of a nation's markets or industries.

Material culture

____ is the layer of corporate social responsibility whereby a corporation donates money and, perhaps, employee time toward a specific social cause.

Philanthropic responsibilities

_ is the belief that both private and public groups play important roles in a nation's political activities.

Pluralism

A ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives.

democracy

_ facilitate(s) the process of cultural imperialism.

Relaxed trade and investment barriers

_ measures the indirect carbon dioxide emissions from the whole life cycle of products—from their manufacture to eventual breakdown.

Secondary footprint

Which of the following would be considered an international business transaction?

Shipping finished products from one country to another for retail sale

_ is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage.

Situational management

Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture?

Subculture

Jeans Unlimited plans to set up new facilities that are designed specifically to reduce its impact on the environment. Management emphasizes recycling and reusing resources. What concept is the company emphasizing?

Sustainability

Which of the following statements is TRUE of developing countries that have embraced globalization?

The countries have experienced an increase in life expectancy.

Firms with global mindsets are characterized by ___

diversity in the international workforce

Firms with a strong social interest ___

aim to optimize work conditions and diversity in hiring

Sustainable firms ____

avoid emitting toxic wastes

Christopher, an accounts manager at a mid-sized health care firm, does not have any direct international responsibilities. However, Christopher would most likely benefit from studying international business issues so that he can ________.

better understand how foreign operations affect the company's competitive position

Grease money is considered ___

bribes

International business is best defined as ___

business transactions involving two or more countries

In a ________ government, the strongest political parties share power by dividing government responsibilities among themselves.

coalition

The primary reason for Apple's decision to locate its iPhone production facility in China was _

cost

The ________ view that says the morality of an act depends on how the act is perceived within that specific culture at the time of the act.

cultural relativism

A(n) ________ is anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts.

cultural trait

Critics of globalization say that global consumer-goods companies destroy ___

diversity of cultures

In a totalitarian political system, __

one agent monopolizes political power

A caste system is a system of social stratification in which ________.

people are born into a social ranking, with no opportunity for social mobility

Folk customs that spread by cultural diffusion to other regions develop into ________.

popular customs

According to Hofstede's framework, people generally prefer little consultation between superiors and subordinates in cultures where ________ is high.

power distance

The purpose of the General Agreement on Tariffs and Trade (GATT) was to _______

promote free trade

One of the primary complaints about the Foreign Corrupt Practices Act is that the legislation _

puts U.S. firms at a competitive disadvantage

Some nations encourage ________ because of recent resistance to worldwide trade agreements.

regional trade agreements

International businesspeople need to understand social stratification systems where they do business because __

such systems indicate who people in a given culture will likely respect more

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs is called _____

sustainability

Two major forces that underlie the expansion of globalization are falling barriers to trade and investment, and _

technological innovation

Most companies today operate in an environment of increased transparency and scrutiny regarding their business activities. This is due to ___

the rise of social media

Religion-based authoritarian states are called __

theocratic

The FCPA allows "grease" payments to facilitate business in a foreign country, if ____

those payments are lawful in that country