International Business Exam 1

What is the beginning of the video's timeline?

Beginning of the 20th century- At the start of the 20th century, Hayek and Keynes had witnessed the first age of globalization. Everyday life was being transformed everywhere. Technologies like the telegraph and the telephone revolutionized communications. Steamships and railways made the world a smaller place. Tens of millions migrated without the need for passports.

Conrad follows a religion that does not propagate the caste system. Also, his religion emphasizes right seeing, thinking, speech, action, living, effort, mindfulness, and meditation as a route for spiritual transformation. According to this information, Conrad can be considered a

Buddhist.- Buddhism was founded in India in the sixth century B.C. by Siddhartha Gautama, an Indian prince who renounced his wealth to pursue an ascetic lifestyle and spiritual perfection. Siddhartha offered the Noble Eightfold Path as a route for transformation. This emphasizes right seeing, thinking, speech, action, living, effort, mindfulness, and meditation. Unlike Hinduism, Buddhism does not support the caste system.

Which of the following statements is true of mores?

Certain mores have been enacted into law. - In many societies, certain mores have been enacted into law. Thus, all advanced societies have laws against theft, incest, and cannibalism.

What are the two main contradicting ideas presented in the video?

Command Economy vs. Market Economy - While there are many factors associated with these ideas, the main focus of the video is the tension between market and command economies in world history.

Which of the following is an ethical system that has influenced behavior and shaped culture in parts of Asia and is not considered a religion?

Confucianism - Confucianism and Confucian ethics influence behavior and shape culture in parts of Asia, yet it is incorrect to characterize Confucianism as a religion.

Which of the following statements is true about political systems?

It is possible to have totalitarian societies that are not collectivist. - It is possible to have democratic societies that emphasize a mix of collectivism and individualism. Similarly, it is possible to have totalitarian societies that are not collectivist.

Modern socialism traces its intellectual roots to

Karl Marx. Modern socialism traces its intellectual roots to Karl Marx (1818-83), although socialist thought clearly predates Marx.

In the video, what is defined as the "Commanding Heights" of the economy?

Steel, railroads, coal, and other heavy industries. - Lenin decided that the government would control the overall economy: steel, railroads, coal, the heavy industries -- what he called the "commanding heights" of the economy.

China Innovation Inc. is a devout follower of Confucian ethics. Hence, it hires people who live by similar principles. Which of the following is most likely to be a characteristic of this company?

The cost of doing business will be low for those companies that enter into a business with it. - A concept found in Confucian ethics is the importance attached to honesty. When companies adhere to Confucian ethics, they can trust each other not to violate the terms of cooperative agreements. When companies can trust each other not to break contractual obligations, the costs of doing business are lowered.

What is one example from the video that exemplifies the boom of the U.S. economy in the 1920s?

The stock Market - During the 1920s, while Europe was continuing to suffer the wounds of the first world war, in American cities, at least, it was a boom time. The stock market, the New York Stock Exchange, had become a national pastime.

Which of the following statements is true about most Western societies?

The value systems of many Western societies emphasize individual achievement. - The value systems of many Western societies, for example, emphasize individual achievement. The social standing of individuals is not so much a function of who they work for as of their individual performance in whatever work setting they choose.

By adopting the Contracts for the International Sale of Goods (CIGS), a nation signals to other adopters that it will treat the convention's rules as part of its law.

True - By adopting the CIGS, a nation signals to other adopters that it will treat the convention's rules as part of its law. The CIGS applies automatically to all contracts for the sale of goods between different firms based in countries that have ratified the convention.

Like Christianity and Judaism, Islam is a monotheistic religion.

True - Like Christianity and Judaism, Islam is a monotheistic religion. The central principle of Islam is that there is but the one true omnipotent God (Allah).

In a totalitarian country, all the constitutional guarantees on which representative democracies are built—an individual's right to freedom of expression and organization, a free media, and regular elections—are denied to the citizens.

True- In a totalitarian country, all the constitutional guarantees on which representative democracies are built—an individual's right to freedom of expression and organization, a free media, and regular elections—are denied to the citizens.

People who cannot take food or safety for granted tend to have authoritarian tendencies, and believe that men make better political leaders than women.

True- One of the categories in the World Values Survey is quality of life attributes. At one end of this spectrum are "survival values," the values people hold when the struggle for survival is of paramount importance. These values tend to stress that economic and physical security are more important than self-expression. People who cannot take food or safety for granted tend to be xenophobic, are wary of political activity, have authoritarian tendencies, and believe that men make better political leaders than women.

What world event ended the "first age of globalization"?

WW1 - The murder of an Austrian archduke by a terrorist triggered a world war. It would be almost 80 years before there was once again a truly global economy.

John Smith, a U.S. based businessman, paid the equivalent of $20 to an official of the country of Murundi to expedite the overnight delivery of critical documents. When questioned, John Smith claimed this was not a bribe. The $20 is an example of

a grease payment.

Which of the following is a feature of representative democracy?

a nonpolitical police force and armed service - To guarantee that elected representatives can be held accountable for their actions by the electorate, an ideal representative democracy has a number of safeguards that are typically enshrined in constitutional law. This includes a nonpolitical state bureaucracy, police force, and armed service.

In a social context, the term values is used to describe the

abstract ideas about what a group believes to be good, right, and desirable. - Values are meant to describe abstract ideas about what a group believes to be good, right, and desirable. Put differently, values are shared assumptions about how things ought to be.

When firms do not wish to accept the rules of the CIGS, what do they often opt for to settle contract disputes?

arbitration - When firms do not wish to accept the CIGS, they often opt for arbitration by a recognized arbitration court, like the International Court of Arbitration of the International Chamber of Commerce in Paris, to settle disputes.

When schools emphasize respect for others, obedience to authority, honesty, neatness, being on time, and use a grading system, they are

indirectly teaching cultural values and norms - Values and norms are taught both directly and indirectly. Schools generally teach basic facts about the social and political nature of a society. They also focus on the fundamental obligations of citizenship. Cultural norms are also taught indirectly at school. Respect for others, obedience to authority, honesty, neatness, being on time, and so on, are all part of the hidden curriculum of schools.

Chinese is the mother tongue of the largest number of people, but English is the most widely spoken language in the world. This indicates that

many people speak English as a second language. - Chinese is the mother tongue of the largest number of people. However, the most widely spoken language in the world is English. That is, many people speak English as a second language.

When traveling to a foreign country on business, Jenner was shocked to find a male nurse. Back from where he came, nurses were always female. Jenner's home country culture displays a high degree of which of Hofstede's cultural dimensions?

masculinity - According to Geert Hofstede, in masculine cultures, sex roles were sharply differentiated.

Which of the following type of laws hold a firm and its officers responsible when a product causes injury, death, or damage?

product liability- Product liability involves holding a firm and its officers responsible when a product causes injury, death, or damage. Both civil and criminal product liability laws exist.

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s had adopted

right-wing totalitarianism.- The fascist regimes that ruled Germany and Italy in the 1930s and 1940s were right-wing totalitarian states.

Hindus see mobility between castes as something that can be achieved through

spiritual progression and reincarnation.- The concept of mobility between castes within an individual's lifetime makes no sense to traditional Hindus. Hindus see mobility between castes as something that is achieved through spiritual progression and reincarnation. An individual can be reborn into a higher caste in his or her next life if he or she achieves spiritual development in this life.

The distinctive culture of Wengiston has been losing its predominance among the citizens of the country. This is due to the fact that the people of Wengiston are extensively adopting certain universally accepted values and norms. This behavior of the people in Wengiston demonstrates

the convergence hypothesis - A steady convergence occurring across different cultures toward some universally accepted values and norms is known as the convergence hypothesis.

Hofstede's fifth dimension of Confucian dynamism captures

attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors.- In 1991 Hofstede expanded his original research to include a fifth dimension that he argued captured additional cultural differences. He said that in practical terms the dimension refers to a long-term versus short-term orientation and captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors.

Which of the following is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime?

caste - A caste system is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime.

The country of Maracon downplays individual goals and emphasizes the collective goals of the country. Maracon's political system is most likely an example of

collectivism - Collectivism refers to a political system that stresses the primacy of collective goals over individual goals. When collectivism is emphasized, the needs of society as a whole are generally viewed as being more important than individual freedoms.

A composer can protect an original musical score from being copied and sold by someone else by acquiring for the score a(n)

copyright. - Copyrights are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

Which of the following means an understanding of how cultural differences across and within nations can affect the way business is practiced?

cross-cultural literacy- Business success in a variety of countries requires cross-cultural literacy, which means an understanding of how cultural differences across and within nations can affect the way business is practiced.

Survival values typically stress the importance of

economic and physical security - A category in the World Values Survey is quality of life attributes. At one end of this spectrum are "survival values," the values people hold when the struggle for survival is of paramount importance. These values tend to stress that economic and physical security are more important than self-expression.

Buddhism has the highest number of adherents in the world today.

false - Among the thousands of religions in the world today, four dominate in terms of numbers of adherents: Christianity with roughly 2.2 billion adherents, Islam with around 1.6 billion adherents, Hinduism with 1.1 billion adherents (primarily in India), and Buddhism with 535 million adherents.

Which of the following does the U.S. law and OECD convention allow as an exception?

grease payments or speed money - Both the U.S. law and OECD convention include language that allows for exceptions known as facilitating or expediting payments (also called grease payments or speed money), the purpose of which is to expedite or to secure the performance of a routine governmental action.

The term patent refers to the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

False - Copyrights are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

The governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based economic reforms.

False - In many respects, the governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based economic reforms.

There is a strict one-to-one correspondence between a society and a nation-state.

False - There is not a strict one-to-one correspondence between a society and a nation-state. Nation-states are political creations. They may contain a single culture or several cultures.

In most democratic states, those who question the right of the rulers to rule find themselves imprisoned, or worse.

False- In most totalitarian states (not democratic states), political repression is widespread, free and fair elections are lacking, media are heavily censored, basic civil liberties are denied, and those who question the right of the rulers to rule find themselves imprisoned, or worse.

Which of the following religions does not owe its founding to any one particular individual?

Hinduism - Unlike Christianity, Islam, and Buddhism, the founding of Hinduism is not linked to a particular person.