International Mgt. Chap.1
Identify the trends that pertain to global demographics. Elderly populations will spend income on housing and other capitally financed purchases. According to the Wall Street Journal, the working-age population will contract by nearly 5 percent worldwide by 2050. According to the Wall Street Journal, China will see a 20 percent increase in its working-class population by 2050. The amount of spending on health care-related services will keep on increasing rapidly.
According to the Wall Street Journal, the working-age population will contract by nearly 5 percent worldwide by 2050. The amount of spending on health care-related services will keep on increasing rapidly.
Originally called Confucian Work Dynamism, time orientation is explained by Dutch researcher Geert Hofstede as Blank______. the tendency of people to look after themselves and their immediate family only dealing with ambiguous situations the extent to which less powerful members of institutions accept that power is distributed unequally dealing with society's search for virtue
dealing with society's search for virtue
The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural contexts is termed
international management
The process of completing activities effectively and efficiently with and through other people is known as expropriation management social loafing curbstoning
management
The ----- system refers to 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.
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 market economy command economy socialist economy
market economy
A firm that has operations in more than one country, international sales, and a mix of nationalities among managers and owners is called a(n) Blank______. C corporation multinational corporation (MNC) limited liability company (LLC) S corporation
multinational corporation (MNC)
A feature of a command economy is that Blank______. this model contains the least restriction as the allocation of resources is roughly determined by the law of demand the state simply supports competition and efficient practices of private firms the government has direct control over the price and supply of a good or service private enterprises reserve the right to monitor the production and supply of goods and services
the government has direct control over the price and supply of a good or service
Firms in a market economy must be as versatile as the individual consumer since Blank______. the government has explicit control over the price and supply of a good or service goods offered are determined by the theoretical advancement of society business practices are done in the best interest of the nation the interaction of the community and firms guide the system
the interaction of the community and firms guide the system
A feature of countries with a high masculinity index is that Blank______. they place great importance on a friendly atmosphere individuals are encouraged to be group decision makers achievement is defined in terms of layman contacts and the living environment they emphasize earnings, recognition, advancement, and challenge
they emphasize earnings, recognition, advancement, and challenge
An attribute of countries with a low masculinity index is that Blank______. they tend to emphasize cooperation, a friendly atmosphere, and employment security the school system is geared toward encouraging high performance the workplace is often characterized by high job stress they place great importance on earnings, recognition, advancement, and challenge
they tend to emphasize cooperation, a friendly atmosphere, and employment security
True or false: Managers from today's multinational corporations (MNCs) are required to learn to work effectively with those from many different countries.
true
True or false: The processes of offshoring and outsourcing have combined to dramatically intensify the effects of increasing global linkages.
true
Identify the attributes of countries with a low masculinity index. (Check all that apply.) The workplace is often characterized by high job stress. Individuals are urged to be group decision makers. Young men expect to have careers, and those who do not often view themselves as failures. Several women have higher-level jobs and do not find it necessary to be assertive. The school system is geared toward teaching social adaptation.
Individuals are urged to be group decision makers. Several women have higher-level jobs and do not find it necessary to be assertive. The school system is geared toward teaching social adaptation.
Identify an effect of the free-market-based economy of North America. It lets the government explicitly control decision-making processes of private firms. It allows for greater flexibility when compared with other forms of economic systems. It restricts Asian countries from investing in the U.S. market. It institutes trade barriers for other countries to establish business.
It allows for greater flexibility when compared with other forms of economic systems.
Which of the following is true of the G20? It operates with a permanent secretariat or staff. It consists of finance ministers and central bank governors of the 19 largest economies in the world. It consists of representatives from the International Monetary Fund and the World Bank. Its chair rotates quarterly among the members and is responsible for hosting the quarterly summit.
It consists of finance ministers and central bank governors of the 19 largest economies in the world.
An imbalance between supply and demand
It results in a fluctuation in the prices of goods or services.
A general balance between supply and demand
It sustains prices of goods or services.
Which of the following is the United States' second largest free trade zone in Latin America after Mexico that was implemented on a rolling basis between 2006 and 2009? The Dominican Republic-Central American Free Trade Agreement export zone The Zonamerica Business and Technology Park, Uruguay The New Jubilee Agro-Industrial Economic Zone The Oshikango (Namibia-Angola) Border Export Processing Zone
The Dominican Republic-Central American Free Trade Agreement export zone
Which of the following countries were part of the North American Free Trade Agreement (NAFTA), that was replaced by the USMCA that has removed all barriers to trade among these countries and created a huge North American market? Panama The United States Canada Mexico The Dominican Republic
The United States Canada Mexico
Identify the countries that were identified by Dutch researcher Geert Hofstede as having a low long-term orientation index. (Check all that apply.) Indonesia China The United States of America The United Kingdom Spain
The United States of America The United Kingdom Spain
______ is the global association of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies. The Fair Trade Federation The International Workers' Association (IWA) The Commonwealth of Independent States The World Trade Organization (WTO)
The World Trade Organization (WTO)
______ is the global association of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies. The World Trade Organization (WTO) The Fair Trade Federation The Commonwealth of Independent States The International Workers' Association (IWA)
The World Trade Organization (WTO)
Which of the following is one of the reasons why the United States and other developed countries no longer dominate the global market the way they once did? The political policies of developed markets The ease of becoming a multinational corporation The increasing presence of new technologies The increasing price of products and services
The ease of becoming a multinational corporation
Identify the economic developments that have occurred in the countries that are part of the North American Free Trade Agreement (NAFTA). (Check all that apply.) Restrictions have been imposed on all agricultural products. The ease of travel between the countries has been increased. Tariffs and import and export quotas have been eliminated. The opportunity to make investments in each other's country has been reduced.
The ease of travel between the countries has been increased. Tariffs and import and export quotas have been eliminated.
Which of the following goals of the European Union (EU) has finally largely become a reality? The institution of the maquiladora system The elimination of all trade barriers among member countries The establishment of a single currency and a regional central bank The membership in the BRICS group of economies
The establishment of a single currency and a regional central bank
Cultures with high universalism
The focus is more on formal rules than on relationships.
Cultures with high particularism
The focus is more on relationships and trust than on formal rules.
Which of the following aspects of North America allows considerable liberty in decision-making processes of private firms? The command economy The focus on the theoretical advancement of society rather than consumer needs The explicit control of the government over the price and supply of a good or service The free-market-based economy
The free-market-based economy
Identify a change in global demographics by 2050. The working-age population will increase by nearly 5 percent worldwide. The working-age population in Germany and Italy will shrink by over 20 percent. The working-class population in Japan will double compared to nonworkers. The working-class population in China will increase by 20 percent.
The working-age population in Germany and Italy will shrink by over 20 percent.
Restrained societies
There are a higher number of police officers per 100,000 population, and leisure is given lower importance.
In a close but decisive vote as part of a referendum in June 2016, the citizens of Blank______ became the first to vote to dissolve their membership in the European Union. the Czech Republic Norway Bulgaria the United Kingdom
United Kingdom
What are the features of countries with a high masculinity index? (Check all that apply.) Individuals are encouraged to be group decision makers, and achievement is defined in terms of layman contacts and the living environment. Young men expect to have careers, and those who do not often consider themselves failures. These countries prefer small-scale enterprises and place great importance on conservation of the environment. The school system is geared toward fostering high performance. The workplace involves high job stress, and many managers think that their employees dislike work and must be kept under some degree of control.
Young men expect to have careers, and those who do not often consider themselves failures. The school system is geared toward fostering high performance. The workplace involves high job stress, and many managers think that their employees dislike work and must be kept under some degree of control.
Very large, family-held Korean conglomerates that have considerable political and economic power are called ----
chaebols
The economic bloc in the Southwest Pacific, made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Cambodia, Laos, Myanmar, and Vietnam, is referred to as the ______. South Asian Free Trade Area (SAFTA). Southwest Asia Common Market. Asian Economic Union Association of Southeast Asian Nations (ASEAN).
Association of Southeast Asian Nations (ASEAN).
Identify the countries that are part of the European Union (EU). Austria Croatia The Czech Republic Norway Latvia Liechtenstein
Austria Croatia The Czech Republic Latvia
What are the findings of Goldman Sachs' 2001 report on the economic growth projected to occur in the BRIC nations? BRIC's total weight in the world economy would rise from approximately 10 percent in 2004 to more than 20 percent by 2025 The BRIC economies will constitute only one of the top five most dominant economies by the year 2050. BRIC's total weight in the world economy would diminish from approximately 20 percent in 2004 to less than 10 percent in 2025. The BRIC economies' share of world growth could increase from 20 percent in 2003 to more than 40 percent in 2025.
BRIC's total weight in the world economy would rise from approximately 10 percent in 2004 to more than 20 percent by 2025 The BRIC economies' share of world growth could increase from 20 percent in 2003 to more than 40 percent in 2025.
Identify the reasons why Mexican firms are now able to produce products at highly competitive prices. Because of the decline of the maquiladora system Because of the availability of low-cost labor Because the Mexican market is close to the American market Because Mexico is a member of the Group of Seven (G7) economies
Because of the availability of low-cost labor Because the Mexican market is close to the American market
Identify the BRIC nations. Brazil China Ireland Canada India Russia
Brazil China India Russia
A subset of European countries has adopted a unified currency called the euro. What are the effects of this action? Business companies can reduce their costs by conducting business in one uniform legal tender. Large multinational corporations (MNCs) can achieve the operational scale necessary to eliminate social services. Customers are allowed to compare prices between most countries. The European Union and Russia signed the Transatlantic Trade and Investment Partnership (T-TIP).
Business companies can reduce their costs by conducting business in one uniform legal tender. Customers are allowed to compare prices between most countries.
Which of the following primarily exhibit a high long-term orientation? (Check all that apply.) The United Kingdom China Indonesia Spain Japan
China Indonesia Japan
According to the United Nations' World Population Prospects: the 2015 Revision, Blank______ will be the most populous countries in the world in 2050. Russia and Canada Iran and Brazil Turkey and Algeria China and India
China and India
Based on the data on purchasing power parity (PPP), Blank______ would exceed the United States as the largest world economic power by 2050. China and India Turkey and Germany Russia and Indonesia Spain and Qatar
China and India
Identify a true statement about the voting of the United Kingdom to dissolve its membership in the European Union (EU) as part of a referendum in June 2016. It was led by then Prime Minister Gordon Brown. Citizens voted to dissolve their membership in the bloc. It established the five-year withdrawal procedure for countries wishing to exit the EU. It is legally binding according to the Treaty on European Union (TEU).
Citizens voted to dissolve their membership in the bloc.
Which of the following refers to the practices in a market economy? Competition is intensely promoted to foster innovation, economic growth, high quality, and efficiency. The particular goods and services offered are determined by the theoretical advancement of society. Management of an organization ignores demographic information. Businesses ensure that investments are in the best interest of the nation.
Competition is intensely promoted to foster innovation, economic growth, high quality, and efficiency.
Asian-facing countries have negotiated an ambitious, next-generation, Asia-Pacific trade agreement under the -------- for Trans-Pacific Partnership (CPTPP).
Comprehensive and Progressive Agreement
Short-term-oriented cultures
Students attribute success and failure to luck, and traditions are sacrosanct.
Which of the following countries are part of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)? Saint Barthélemy El Salvador The United States Honduras Greenland Nicaragua
El Salvador The United States Honduras Nicaragua
Long-term-oriented cultures
Family life is led by shared tasks, and what are good and evil depend on the circumstances.
Which of the following are true about businesses in a command economy? Firms give high importance to demographic information to create business opportunities. Firms have the least restriction as the allocation of resources is roughly determined by the law of demand. Firms are owned by the government to ensure that business practices are done in the best interest of the nation. Government subsidies provide firms with enough security, so they cannot go out of business.
Firms are owned by the government to ensure that business practices are done in the best interest of the nation. Government subsidies provide firms with enough security, so they cannot go out of business.
Nations are increasingly connected by trade, technology and economic trends. Which of these set of developments influenced an increase in globalization? Big government, increased income tax and trade offices Protectionism, subsidies and industry cluster planning Tariffs, export taxes and business incubators Freetrade agreements, express shipping and broadband
Freetrade agreements, express shipping and broadband
Which of the following are true about the countries that were identified by Dutch researcher Geert Hofstede as having a low long-term orientation index? (Check all that apply.) Gift giving and greetings are shared and reciprocated. Traditional approaches are respected, and feedback cycles tend to be short. People believe that there are multiple truths to issues that arise. Relationships tend to be ordered by status, which can affect the way that situations are handled. Individuals believe in absolutes, value stability and leisure time, and spend money freely.
Gift giving and greetings are shared and reciprocated. Traditional approaches are respected, and feedback cycles tend to be short. Individuals believe in absolutes, value stability and leisure time, and spend money freely.
Which of the following are included in the chaebols of South Korea? Hyundai Kia Telfos Holdings The LG Group Suzuki Samsung
Hyundai The LG Group Samsung
Antiglobalization activists
If corporations are free to locate anywhere in the world, the world's poorest countries will relax or remove environmental standards and social services to attract first-world investment and the accompanying jobs and wealth.
Long-term-oriented cultures
Students attribute success to effort and failure to lack of effort, and traditions are adaptable to changed circumstances.
As a result of a public health crisis, the United Nations passed a resolution calling on its members to maintain open borders, and to support the efforts by helping the affected countries. The resolution urged member nations to collaborate with other multilateral organizations to provide humanitarian, economic, and technical support. What is a consequence of a member nation that does not participate as requested? Economic sanctions from the affected countries. Reduced participation in World Economic Forum. Trade restrictions from central bank governors. Correct! Loss of positive reputation in global community.
Loss of positive reputation in global community.
Indulgent societies
Maintaining order in the nation is not given a high priority, and leisure is given higher importance.
Which of the following refers to the economy of Mexico? Mexico is the United States' largest trading partner. More than 90 percent of Mexico's trade takes place under free-trade agreements. Mexico has free-trade agreements only with the United States and Canada. Mexico is one of the Group of Seven (G7) economies.
More than 90 percent of Mexico's trade takes place under free-trade agreements.
What percentage of Mexico's trade occurs under free trade agreements? 50% Under 30% More than 90% 75%
More than 90%
Identify a true statement about foreign direct investment (FDI). Most of the decrease in FDI investment is happening among developed economies. FDI has increased drastically in recent years. Reducing FDI suggests that African countries could constitute the next wave of dynamic emerging markets. Most of the decrease in FDI investment is happening among countries like India.
Most of the decrease in FDI investment is happening among developed economies.
Which of the following countries are represented by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)? India Romania New Zealand Japan Peru
New Zealand Japan Peru
What are the arguments put forward by the proponents of globalization? Offshoring boosts the competitiveness of American firms and increases the size of the overall economic pie. Job losses are a natural outcome of economic and technological change as part of globalization. The main winners of globalization are company executives. Growing trade deficits and slow wage growth continue to improve economies worldwide because of globalization.
Offshoring boosts the competitiveness of American firms and increases the size of the overall economic pie. Job losses are a natural outcome of economic and technological change as part of globalization.
Restrained societies
People are less likely to remember positive emotions and give lower importance to leisure.
Identify the true statements about cultures that primarily show long-term orientation in comparison with those that show short-term orientation. (Check all that apply.) People are more likely to believe that there are multiple truths to issues that arise. Individuals believe in absolutes and value stability and leisure time. Relationships are likely to be ordered by status, which can affect the way situations are handled. People are persistent, thrifty with their money, and highly adaptable to unexpected circumstances. Traditional approaches are respected, and feedback cycles tend to be short.
People are more likely to believe that there are multiple truths to issues that arise. Relationships are likely to be ordered by status, which can affect the way situations are handled. People are persistent, thrifty with their money, and highly adaptable to unexpected circumstances.
Indulgent societies
People are more likely to remember positive emotions and give higher importance to leisure
Countries that show a high indulgence index
People take part in more sports and activities, see themselves as being in control of their own destiny, and express happiness freely.
Proponents of globalization
Protectionist policies, not trade and investment liberalization, lead to environmental and social damage within the developing world.
In 2010, the BRIC leaders of the founding members agreed to admit Blank______ to the group, making it the BRICS. Saudi Arabia Sri Lanka South Africa Singapore
South Africa
In_________, chaebols are very large, family-held conglomerates that have considerable political and economic power. South Korea China Japan Thailand
South Korea
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 the decision-making processes of private firms. The command economy of this region allows for higher flexibility with decisions and low barriers for other countries to establish business. The command economy of this region allows competition to strive while the government can extend assistance to individuals or companies
The free-market-based economy of this region allows considerable freedom in the decision-making processes of private firms.
Offshoring
The process by which companies undertake some activities at foreign locations instead of in their countries of origin
Globalization
The process that primarily deals with the vision of building one world unit, a single market entity
Internationalization
The process that primarily includes a business crossing national and cultural borders
Which of the following helps promote trade between the United States and Canada? The command economy of both the United States and Canada The explicit government control of decision-making processes of private firms in Canada and the United States The trade barriers established by the United States in the market of BRIC nations The similarity between the legal and business environments in Canada and the United States
The similarity between the legal and business environments in Canada and the United States
Which of the following helps promote trade between the United States and Canada? The explicit government control of decision-making processes of private firms in Canada and the United States The similarity between the legal and business environments in Canada and the United States The trade barriers established by the United States in the market of BRIC nations The command economy of both the United States and Canada
The similarity between the legal and business environments in Canada and the United States
Outsourcing
The subcontracting or contracting out of activities to endogenous organizations that had previously been performed by a firm
Short-term-oriented cultures
There is personal steadiness and stability, and service to others is an important objective.
Firms in high-power-distance countries
They are likely to be centralized and have tall organization structures.
Long-term-oriented societies
They are likely to focus on the future.
Nations with low individualism
They are likely to have less support for the Protestant work ethic, less individual initiative, and promotions dependent on seniority.
Nations with high individualism
They are likely to have more support for the Protestant work ethic, greater individual initiative, and promotions dependent on market value
Firms in low-power-distance countries
They tend to be decentralized and have flatter organization structures.
Countries that show a low indulgence index
They tend to be located in Asia and Eastern Europe, including Egypt, Russia, India, and China.
Countries that show a high indulgence index
They tend to be located in the Americas and Western Europe, including the USA, Australia, Mexico, and Chile.
Short-term-oriented cultures
They tend to focus more on the past and present than on the future.
What is the ultimate objective of the European Union (EU)? To become a member of the BRICS group of economies To remove all trade barriers among member countries To become the United States' largest trading partner To facilitate the functioning of the maquiladora system
To remove all trade barriers among member countries
Arrange the events that were part of the progress in multilateral trade negotiations involving the World Trade Organization (WTO) until July 2008 in the correct order of occurrence. (Place the first event at the top.)
Trade talks at the WTO Misnetrial Conference in Seattle in 1999 were postponed Members of the WTO successfully started a round of negotiations at Doha, Qatar, called the "Development Round" The WTO meeting, held in Geneva, resulted in an impasse after 9 days of discussions
True or false: In recent years, Canadian companies have restricted their business to Canada.
false
According to Dutch researcher Geert Hofstede, a situation in which the dominant values in society are caring for others and the quality of life is called Blank______. masculinity universalism communitarianism femininity
femininity
------ (FDI) is the term used to indicate the amount invested in property, plant, and equipment in another country.
foreign direct investment
The process of social, political, economic, cultural, and technological integration among countries around the world is known as
globalization
Unlike antiglobalization activists, proponents of globalization believe that Blank______. the world's poorest countries will relax or eliminate environmental standards and social services in order to attract first-world investment and the wealth that comes with it globalization will urge higher-polluting countries such as China and India into an integrated global community that adopts responsible measures to protect the environment growing trade deficits and slow wage growth improve economies the main winners of globalization are company executives
globalization will urge higher-polluting countries such as China and India into an integrated global community that adopts responsible measures to protect the environment
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. growing trade deficits and slow wage growth are damaging economies. the main winners of globalization are the low-wage domestic workers. 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.
In contrast to its fellow BRIC partners, Blank______ continues to post strong figures and has surpassed China in annual gross domestic product (GDP) growth rate in recent years. India Romania Ireland Russia
india
In contrast to its fellow BRIC partners, Blank______ continues to post strong figures and has surpassed China in annual gross domestic product (GDP) growth rate in recent years. Ireland Russia India Romania
india
Agreements like NAFTA/USMCA and CAFTA-DR ______. -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. -not only reduce barriers to trade but also require additional domestic business and legal reforms in developing nations to protect property rights. -provide firms with enough security so they cannot go out of business, which simply encourages a lack of efficiency or incentive to monitor costs. -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 business and legal reforms in developing nations to protect property rights.
The subcontracting or contracting of activities which had previously been performed within the firm out to external organizations is called_________. homesourcing offshoring outsourcing insourcing
outsourcing
A market economy has the least restriction because Blank______. business practices are done in the best interest of the nation the particular goods and services offered are in response to the theoretical advancement of society resource allocation is roughly decided by the law of demand the government has explicit control over the price and supply of a good or service
resource allocation is roughly decided by the law of demand
Critics of globalization claim that Blank______. citizens in underdeveloped countries will reap the benefits of large amounts of capital flowing into those countries rising inequities in incomes as a result of economic globalization is a cause of concern job losses because of globalization are typically a natural consequence of economic and technological change offshoring improves the competitiveness of American companies
rising inequities in incomes as a result of economic globalization is a cause of concern
Critics of globalization claim that Blank______. rising inequities in incomes as a result of economic globalization is a cause of concern citizens in underdeveloped countries will reap the benefits of large amounts of capital flowing into those countries job losses because of globalization are typically a natural consequence of economic and technological change offshoring improves the competitiveness of American companies
rising inequities in incomes as a result of economic globalization is a cause of concern
