INTERNATIONAL MGT TEST 1
A country's legal system can affect the attractiveness of a country as an investment site and/or market.
TRUE
According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950.
TRUE
Facilitating payments are also known as speed money or grease payments.
TRUE
Folkways include rituals and symbolic behavior.
TRUE
Judges under a civil law system have less flexibility than those under a common law system.
TRUE
Myanmar has one of the worst human rights records in the world
TRUE
One of the UN central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development.
TRUE
The Foreign Corrupt Practices Act outlawed the paying of bribes to foreign government officials to gain business.
TRUE
The bow that is given by a Japanese business executive to another business executive is an example of symbolic behavior.
TRUE
The most global markets currently are markets for industrial goods and materials that serve a universal need the world over.
TRUE
The number of command economies has fallen dramatically since the demise of communism in the late 1980s.
TRUE
The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation
TRUE
Underlying the trend towards greater globalization is technological change and a decline in barriers to the free flow of goods, services, and capital.
TRUE
Values are abstract ideas about what a group believes to be right, good, and desirable.
TRUE
If four firms control 80 percent of a domestic market, then _____ exists. A. an oligopoly B. a monopoly C. an oligarchy D. vertical integration
A
A central value of Japanese culture is the importance attached to: A. the individual. B. group membership. C. individual achievement. D. personal accomplishments.
B
A _____ system is based on a very detailed set of laws organized into codes. A. democratic law B. theocratic law C. civil law D. common law
C
According to sociologists, which of the following branches of Christianity has the most important economic implications? A. Catholic B. Orthodox C. Protestant D. Mormon
C
Safety standards to which a product must adhere are set by: A. safety certifications. B. the government standards department. C. product safety laws. D. product liability laws.
C
The _____ was established to remove barriers to the free flow of goods, services, and capital between nations. A. UN B. IMF C. GATT D. IDA
C
The social organization of Western society tends to emphasize on: A. a group orientation. B. the family. C. individual achievement. D. work groups.
C
Which of the following is not likely to lead to unethical behavior? A. An organizational culture that deemphasizes business ethics. B. A process that does not incorporate ethical considerations into business decision making. C. A strong personal ethical code governing the conduct of an individual. D. Pressure from the parent company to meet unrealistic performance goals.
C
A _____ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention. A. copyright B. trademark C. contract D. patent
D
Culture is static.
FALSE
In democratic states where individualism is the dominant political philosophy, states tend to enact laws that severely restrict private enterprise.
FALSE
International businesses cannot gain economic advantages by making payments to corrupt government officials.
FALSE
Nearly all developing nations have substantial regulations governing the emission of pollutants, the dumping of toxic chemicals, the use of toxic materials in the workplace, and so on.
FALSE
A _____ 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. A. caste system B. class system C. social system D. culture system
A
A document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved is BEST known as a: A. contract. B. business letter. C. memorandum. D. civil code.
A
A greenfield investment: A. is a form of FDI that involves the establishment of a new operation in a foreign country. B. involves a 7 percent stock in an acquired foreign business entity. C. involves a merger with a foreign business. D. occurs when a firm acquires another company in a foreign country.
A
A state where political power is monopolized by a party, group, or individual that governs according to religious principles is best described as following: A. theocratic totalitarianism. B. tribal totalitarianism. C. right-wing totalitarianism. D. communist totalitarianism.
A
A theocratic law system is: A. one in which the law is based on religious teachings. B. based on tradition, precedent, and custom. C. based on a detailed set of laws organized into codes. D. the body of law that governs contract enforcement.
A
According to the internalization theory, all of the following are drawbacks of licensing as a strategy for exploiting foreign market opportunities except: A. licensing does not grant control over manufacturing, marketing, and strategy is granted to a licensee in return for a royalty fee. B. licensing may result in a firm's giving away its know-how to a potential foreign competitor. C. licensing does not give the firm the tight control over manufacturing, marketing, and strategy that may be required to profitably exploit its advantage. D. a firm's capabilities such as management, marketing, and manufacturing are often not amenable to licensing
A
Any person or institution that is capable of moral action such as a government or corporation is a(n): A. moral agent. B. utilitarian. C. righteous moralist. D. naive immoralist.
A
Cultural relativism suggests that: A. ethics are nothing more than the reflection of culture and that a firm should adopt the ethics of the culture in which it is operating. B. the only social responsibility of business is to increase profits. C. managers of a firm should not make decisions regarding social investments. D. a multinational's home-country standards of ethics are always appropriate to follow in foreign countries.
A
During the 1960s and 1970s, class divisions in _____ raised the cost of doing business there, relative to other European countries. A. Great Britain B. Switzerland C. Norway D. Germany
A
Ethical systems are: A. a set of moral principles, or values, that are used to guide and shape behavior. B. shared beliefs and rituals that are concerned with the realm of the sacred. C. routine conventions of everyday life. D. social rules that govern peoples' actions toward each other.
A
Facilitating payments are: A. permitted under the amended Foreign Corrupt Practices Act. B. a direct violation of the Foreign Corrupt Practices Act. C. permitted so long as they designed only to gain exclusive preferential treatment. D. used to secure contracts that would otherwise not be secured.
A
Hofstede's uncertainty avoidance dimension considered: A. the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. B. the relationship between gender and work roles. C. how a society deals with the fact that people are unequal in physical and intellectual capabilities. D. the relationship between the individual and his or her fellows.
A
Identify the correct statement about the rights theories. A. Human beings have fundamental rights and privileges that transcend national boundaries. B. The moral worth of actions or practices is determined by their consequences. C. People should be treated as ends never purely as means to the ends of others. D. Minimum levels of morally acceptable behavior should be established.
A
Identify the incorrect statement pertaining to a country's political economy. A. It is independent of the culture of a nation. B. It is a combination of interdependent political, economic, and legal systems. C. Its various systems interact and influence each other. D. Its interacting systems affect the level of economic well-being.
A
Identify the incorrect statement regarding the direction of FDI. A. Historically, most FDI has been directed at the developing nations of the world. B. During the 1980s and 1990s, the United States was often the favorite target for FDI inflows. C. The developed nations of the EU have received significant FDI inflows. D. Recent inflows into developing nations have been targeted at the emerging economies of South, East, and Southeast Asia.
A
Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets. A. Internalization theory B. Internationalization theory C. Perfect markets theory D. Small markets theory
A
In a licensing arrangement, the _____ bears the risk and cost of opening a foreign market. A. licensee B. licensor C. acquiring firm D. greenfield investor
A
In a pure command economy: A. all productive activities are owned by the state. B. all productive activities are privately owned. C. the goods and services that a country produces are not planned by anyone. D. production is determined by the interaction of supply and demand.
A
In the U.S., _____ percent of firms that export are small companies employing fewer than 100 people. A. 90 B. 75 C. 50 D. 30
A
Individualism can best be described by which of the following statements? A. It as a philosophy suggests that an individual should have freedom over his/her economic and political pursuits. B. It is a political system in which government control over all factors of production is in entirety. C. It is a political system that stresses the primacy of collective goals over individual goals. D. It is a form of government in which one person or political party exercises absolute control over all spheres of human life.
A
Internal stakeholders: A. are individuals or groups who work for or own the business. B. do not have any claim on a firm or its activities. C. typically comprise customers, suppliers, lenders, governments, unions, etc. D. are individuals, except employees, board of directors, and stockholders that have some claim on the firm.
A
Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as: A. norms. B. values. C. culture. D. society.
A
The Cold War was essentially a war between _____, championed by the now-defunct Soviet Union, and _____, championed by the United States. A. collectivism; individualism B. democracy; socialism C. totalitarianism; socialism D. individualism; collectivism
A
The U.S. has been an attractive target for FDI because of all of the following reasons except: A. its small and wealthy domestic markets. B. its dynamic and stable economy. C. its favorable political environment. D. its openness to FDI.
A
The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities. A. power distance B. individualism vs. collectivism C. uncertainty avoidance D. masculinity vs. femininity
A
The _____ occurs when a resource is shared by all, but owned by no one, is overused by individuals, resulting in its degradation. A. tragedy of the commons B. noblesse oblige C. ethical dilemma D. Friedman system
A
The _____ tracks the export and import of goods and services. A. current account B. debit account C. surplus account D. capital account
A
The _____ was created in 1944 by 44 nations that met in Breton Woods, New Hampshire to promote economic development. A. World Bank B. International Trade Center C. World Trade Organization D. United Nations
A
The belief in the superiority of one's own culture is known as: A. ethnocentrism. B. egocentrism. C. polycentrism. D. theocentricism.
A
The emergence of class consciousness in Great Britain can be attributed to: A. the relative lack of class mobility. B. a high degree of social mobility. C. an extreme emphasis on individualism. D. most of the population perceiving itself to be middle class
A
The growing integration of the world economy is: A. increasing the intensity of competition in a wide range of manufacturing and service industries. B. decreasing the intensity of competition in manufacturing industries, and increasing the intensity of competition in services. C. increasing the intensity of competition in manufacturing industries, and decreasing the intensity of competition in services. D. narrowing the scope of competition in a wide range of service, commodity, and manufacturing industries.
A
The institution, created in 1944 at Bretton Woods, responsible for maintaining order in the international monetary system is the A. IMF. B. WTO. C. UN. D. UNESCO.
A
The total amount of capital invested in factories, stores, office buildings, and the like is summarized by: A. gross fixed capital formation. B. total investment capital. C. total tangible investment. D. gross depreciable investments.
A
Totalitarianism: A. is a form of government in which one person or political party exercises absolute control over all spheres of human life. B. refers to a political system in which government is by the people, exercised either directly or through elected representatives. C. is based on a belief that citizens should be directly involved in decision making. D. is based on the idea that the welfare of society is best served by letting people pursue their own economic self-interests.
A
Under the veil of ignorance, everyone is imagined to be ignorant of: A. all of his/her particular characteristics. B. fundamental rights and privileges. C. the moral worth of actions or practices. D. the minimum levels of morally acceptable behavior.
A
When strategic assets such as brand loyalty, customer relationships, or distribution systems are important, _____ investments are more appropriate. A. merger and acquisition B. greenfield C. portfolio D. new construction
A
Which of the following does not help create an economic system that is favorable to international business? A. Decreased privatization B. Widespread deregulation C. Open markets D. Falling trade and investment barriers
A
Which of the following is not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe? A. Reduced transportation costs. B. Government regulations. C. Issues associated with economic and political risk. D. Barriers to foreign direct investment.
A
Which of the following is not characteristic of globalization? A. National economies are turning into independent economic systems. B. Material culture is starting to look similar the world over. C. Perceived distance is shrinking due to advances in transportation and telecommunications. D. Barriers to cross-border trade and investment are declining.
A
Which of the following is not true regarding culture? A. Culture is static B. Culture is evolving C. It is a system of values and norms that are shared among a group of people D. It involves the knowledge and beliefs of people
A
Which of the following observations about the Foreign Corrupt Practices Act is true? A. The act outlawed the paying of bribes to foreign government officials to gain business. B. There is enough evidence that it put U.S. firms at a competitive disadvantage. C. The act originally allowed for "facilitating payments." D. The Nike case was the impetus for the 1977 passage of this act.
A
Which of the following statements pertaining to the changing demographics of world GDP and trade from 1963 to 2006 is not true? A. As emerging economies continue to grow, a relative decline in the share of world output and world exports accounted for by the U.S. seems unlikely. B. Forecasts predict a rapid rise in the share of world output accounted for by some developing nations. C. A decline in the share enjoyed by rich industrialized countries such as Great Britain, Germany, Japan, and the U.S. is likely. D. If current trends continue, the Chinese economy could be larger than that of the U.S. on a purchasing power parity basis.
A
_____ are the routine conventions of everyday life. A. Folkways B. Mores C. Rites D. Beliefs
A
_____ occur(s) when a firm exports goods or services to consumers in another country. A. International trade B. Foreign direct investment C. Inward investment D. Merger and acquisitions
A
A group of people who share a common set of values and norms form a: A. culture. B. society. C. country. D. caste.
B
According to Knickerbocker: A. the firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in a foreign market. B. when a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments. C. combining location-specific assets or resource endowments and the firm's own unique assets often requires FDI. D. impediments to the sale of know-how increase the profitability of FDI relative to licensing.
B
According to _____, socialism can only be achieved through violent revolution. A. capitalists B. communists C. social democrats D. democrats
B
An act, as simple as shaking hands when meeting new people is an example of: A. values. B. symbolic behavior. C. mores. D. social stratification.
B
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? A. Righteous moralist B. Cultural relativism C. The justice theory D. The rights theory
B
Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because of all of the following reasons except: A. they are away from their ordinary social context and supporting culture. B. they are psychologically and geographically closer to the parent company. C. they may be based in a culture that does not place the same value on ethical norms important in the manager's home country. D. they may be surrounded by local employees who have less rigorous ethical standards.
B
FDI has been rising for all of the following reasons except: A. the globalization of the world economy. B. the general increase in trade barriers over the past 30 years. C. firms are trying to circumvent trade barriers. D. there is a shift toward democratic political institutions and free market economies.
B
Grease payments: A. are not the same as facilitating payments or speed money. B. are facilitating payments made to expedite routine government action. C. are payments to gain exclusive preferential treatments. D. can be used to secure contracts that would otherwise not be secured.
B
Hofstede's masculinity vs. femininity dimension examined: A. the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. B. the relationship between gender and work roles. C. how a society deals with the fact that people are unequal in physical and intellectual capabilities. D. the relationship between the individual and his or her fellows.
B
Identify the incorrect statement about environmental regulations. A. Environmental regulations are often lacking in developing nations. B. Environmental regulations are similar across developed and developing nations. C. Developed nations have substantial regulations governing the emission of pollutants, the dumping of toxic chemicals, etc. D. Inferior environmental regulations in host nations, as compared to home nation, can lead to ethical issues.
B
Identify the incorrect statement pertaining to foreign multinationals doing business in countries with repressive regimes. A. Inward investment by multinationals can be a force for economic, political, and social progress that ultimately improves the rights of people in repressive regimes. B. No multinational does business with nations that lack the democratic structures and human rights records of developed nations. C. Multinational investment cannot be justified on ethical grounds in some regimes due to their extreme human rights violations. D. Multinationals adopting an ethical stance can, at times, improve human rights in repressive regimes.
B
Identify the incorrect statement pertaining to intellectual property rights. A. Its violation cost personal computer software firms revenues equal to $48 billion in 2007. B. The protection of intellectual property rights is more or less the same in all countries. C. The enforcement of its regulations has often been lax. D. Its violation has been very bad in China, where the piracy rate in 2007 ran at 82 percent.
B
In a pure market economy: A. all productive activities are owned by the state. B. all productive activities are privately owned. C. the government plans the goods and services that a country produces. D. resources are allocated for "the good of society."
B
Most cross-border investment is: A. in the form of greenfield investments. B. made via mergers and acquisitions. C. between American and Japanese companies. D. involved in building new facilities.
B
Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by encouraging all of the following except: A. privatizing state-owned enterprises. B. regulating markets. C. increasing competition. D. welcoming investment by foreign businesses.
B
The common law system: A. lacks the flexibility that other systems have. B. is based on tradition, precedent, and custom. C. gives judges the power only to apply the law. D. is based on a detailed set of laws organized into codes.
B
The righteous moralist suggests that: A. ethics are nothing more than the reflection of culture. B. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. C. the social responsibility of business is to increase profits, so long as the company stays within the rules of law. D. if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.
B
The rise in FDI in the services sector is a result of all of the following except: A. the general move in many developed countries away from manufacturing and toward services. B. accelerating regulations of services. C. many services cannot be traded internationally. D. many countries have liberalized their regimes governing FDI in services.
B
The stock of FDI is: A. the amount of FDI undertaken over a given period of time. B. the total accumulated value of foreign-owned assets at a given time. C. the flow of FDI out of a country. D. the flow of FDI into a country.
B
The utilitarian approach to business ethics suggests that: A. people should be treated as ends and never purely as means to the ends of others. B. the moral worth of actions or practices is determined by their consequences. C. people have dignity and need to be treated as such. D. human beings have fundamental rights and privileges that transcend national cultures.
B
Three values central to the Confucian system of ethics have very important economic implications. Which of the following is not one among them? A. Loyalty B. Rule-based law C. Reciprocal obligations D. Honesty in dealings with others
B
To guard against abuse of employment practices in other nations, multinationals should do all of the following except: A. establish minimal acceptable standards that safeguard the basic rights and dignity of employees. B. adhere to working conditions of the host country if they are clearly inferior to those in a multinational's home nation. C. audit foreign subsidiaries and subcontractors on a regular basis to make sure established standards are met. D. take action to correct unacceptable behavior.
B
When a company brings capital and/or technology to a host country, the host country benefits from the: A. competitive effect of FDI. B. resource-transfer effect of FDI. C. balance-of-payments effect of FDI. D. effect on competition and economic growth.
B
When jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by employees of the MNE, the MNE has a(n) _____ effect on employment. A. direct B. indirect C. inward D. outward
B
Which of the following countries has had the maximum relative decline in its share of world output since 1963? A. Canada B. United States C. Japan D. Germany
B
Which of the following enables managers to walk away from a decision that is profitable, but unethical? A. Noblesse oblige B. Moral courage C. The difference principle D. The Friedman doctrine
B
Which of the following statements regarding cross-border trade and investment is not true? A. "Protection" from foreign competitors has been, at times, demanded by the United States. B. Forecasts indicate a return to the restrictive trade policies of the 1920s and 30s. C. If trade barriers decline no further they will put a brake upon the globalization of both markets and production. D. It is not clear whether the political majority in the industrialized world favors further reductions in trade barriers.
B
_____ involves granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold. A. Horizontal FDI B. Licensing C. Vertical FDI D. Greenfield investment
B
_____ is also known as the market imperfections theory. A. Internationalization theory B. Internalization theory C. Perfect markets theory D. Small markets theory
B
_____ is consistent with the notion that an individual's right to do something may be restricted because it runs counter to "the good of society" or "the common good." A. Entrepreneurship B. Collectivism C. Free enterprise D. Capitalism
B
_____ is/are best defined as shared assumptions about how things ought to be. A. Norms B. Values C. Society D. Culture
B
According to the Friedman doctrine: A. ethics are nothing more than the reflection of culture. B. a multinational's home-country standards of ethics are inappropriate to follow in foreign countries. C. businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business. D. if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.
C
According to the _____ approach, the best decisions are those that produce the greatest good for the greatest number of people. A. naive immoralist B. Friedman doctrine C. utilitarian D. Kantian
C
Africa is not a popular destination for FDI because of all of the following reasons except: A. political unrest in the region. B. armed conflict in the region. C. liberalization of FDI regulations. D. frequent policy changes in the region.
C
By 2006 some 24 of the world's 100 largest non-financial multinationals were: A. Chinese enterprises. B. British enterprises. C. U.S. enterprises. D. Japanese enterprises.
C
Design and names by which merchants or manufacturers designate and differentiate their products are known as: A. patents. B. copyrights. C. trademarks. D. licenses.
C
Double taxation is: A. charging double taxes in the home country. B. charging double taxes in the host country. C. taxation of income in both home and host country. D. paying income taxes at twice the normal rate.
C
Ethical dilemmas exist because of all of the following reasons except: A. many real-world decisions are complex and difficult to frame. B. decisions may involve first, second, and third-order consequences that are hard to quantify. C. doing the right thing, or knowing what the right thing might be, is often far too easy. D. they are situations in which none of the available alternatives seem ethically acceptable.
C
External stakeholders: A. are individuals or groups who own the business. B. include all employees, the board of directors, and stockholders. C. typically comprise customers, suppliers, lenders, etc. D. are individuals or groups who work for the business.
C
Globalization has _____ the opportunities for a firm to expand its revenues by selling around the world and _____ its costs by producing in nations where key inputs are cheap. A. reduced, reduced B. increased, increased C. increased, reduced D. reduced, increased
C
Historically, most FDI has been directed at the _____ nations of the world as firms based in advanced countries invested in: A. underdeveloped; underdeveloped countries. B. developed; underdeveloped countries. C. developed; each other's markets. D. underdeveloped; each other's markets
C
Identify the incorrect statement concerning globalization. A. It has been blamed for unemployment in developed nations, environmental degradation and the Americanization of popular culture. B. It has created new threats for businesses accustomed to dominating their domestic markets. C. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition. D. According to most economists it is a very beneficial process where gains outweigh the losses by a wide margin.
C
Identify the incorrect statement pertaining to the World Wide Web. A. It makes it much easier for buyers and sellers to find each other. B. Viewed globally, it is emerging as an equalizer. C. It rolls back all of the constraints of location, scale, and time zones. D. It allows businesses to expand their global presence at a lower cost than ever before.
C
Identify the incorrect statement regarding ethical issues in international business. A. They are often rooted in the fact that political systems, law, economic development, and culture of nations vary significantly. B. Human rights and environmental regulations are some of the common ethical issues. C. Ethical practices of all nations are similar in nature. D. Managers in multinational firms need to be particularly sensitive to differences in business practices because they work across national borders.
C
If General Electric, a U.S. based corporation, purchased a 50 percent interest in a company in Italy, that purchase would be an example of a(n): A. minority acquisition. B. outright stake. C. majority acquisition. D. greenfield investment.
C
It has been argued that the success of Japanese enterprises in the global economy has been based partly on all of the following except: A. the diffusion of self-managing work teams. B. the close cooperation among different functions within Japanese companies. C. the high degree of managerial mobility between companies. D. the cooperation between a company and its suppliers on issues such as design, quality control, and inventory reduction.
C
Managers of international business can do all of the following to make sure ethical issues are considered in business decisions except: A. favor hiring and promoting people with a well-grounded sense of personal ethics. B. build an organizational culture that places a high value on ethical behavior. C. make sure that leaders within the business do not articulate the rhetoric of ethical behavior. D. develop moral courage.
C
Religion may be defined as: A. routine conventions of everyday life. B. social rules that govern peoples' actions toward each other. C. shared beliefs and rituals that are concerned with the realm of the sacred. D. a set of moral principles, or values, that are used to guide and shape behavior.
C
Since 1980, the world's containership fleet has more than _____, reflecting in part the growing volume of international trade. A. doubled B. tripled C. quadrupled D. quintupled
C
The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes: A. speed payments to secure contracts that would otherwise not be secured. B. grease payments to gain exclusive preferential treatment. C. facilitating payments made to expedite routine government action. D. payments to government officials for special privileges.
C
The Kantian approach to ethics suggests that: A. human beings have fundamental rights and privileges that transcend national boundaries. B. the moral worth of actions or practices is determined by their consequences. C. people should be treated as ends and never purely as means to the ends of others. D. ethics are nothing more than the reflection of culture.
C
The United Nations' Universal Declaration of Human Rights, related to employment, upholds all of the following except: A. just and favorable work conditions. B. equal pay for equal work. C. prohibition of trade unions. D. protection against unemployment.
C
The reduction in the average tariff rates on manufactured products since 1950 implies all of the following except that A. firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality. B. the economies of the world's nation states are becoming more intertwined. C. nations are becoming increasingly independent of each other for important goods and services. D. the world has become significantly wealthier since 1950.
C
These strata are typically defined on the basis of characteristics such as family background, occupation, and income. A. Demographic strata B. Economic strata C. Social strata D. Cultural strata
C
This refers to a political system in which government is by the people, exercised either directly or through elected representatives. A. Totalitarianism B. Authoritarianism C. Democracy D. Dictatorship
C
When a company "exports jobs" overseas, the company is: A. helping domestic workers by pushing up wage rates. B. increasing the demand of qualified domestic workers. C. taking advantage of lower wages in foreign markets. D. deceiving the supporters of globalization.
C
When two or more enterprises encounter each other in different regional markets, national markets, or industries, there is: A. vertical integration. B. horizontal integration. C. multipoint competition. D. monopolistic competition.
C
Which of the following is not a reason why firms prefer to acquire existing assets rather than undertake greenfield investments? A. Foreign firms are acquired because those firms have valuable strategic assets. B. Firms make acquisitions because they believe they can increase the efficiency of the acquired unit by transferring capital, technology, or management skills. C. Even though greenfield investments are comparatively less risky for a firm, acquisitions always yield higher profits. D. Mergers and acquisitions are quicker to execute than greenfield investments.
C
Which of the following refers to the extent to which individuals can move out of the strata into which they are born? A. Caste stratification B. Class system C. Social mobility D. Individual potential
C
Which of the following refers to the values and norms that the employees of an organization share? A. Vision statement B. Cultural relativism C. Organization culture D. Power orientation
C
_____ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate. A. A product law B. Trade certification C. Deregulation D. A liability law
C
A _____ keeps track of a country's payments to and its receipts from other countries. A. federal payments ledger B. current accounting system C. checks-and-balances account D. balance-of-payments account
D
According to Max Weber: A. principles embedded in Hinduism encourage high levels of entrepreneurial activity. B. Hindu values emphasize that individuals should be judged by their material achievements. C. pursuit of material well-being makes the attainment of nirvana easier. D. devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants.
D
According to _____, the social responsibility of business is to increase profits, so long as the company stays within the rules of law. A. the naive immoralist B. the righteous moralist C. cultural relativism D. the Friedman doctrine
D
According to the naive immoralist: A. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. B. the social responsibility of business is to increase profits, so long as the company stays within the rules of law. C. ethics are nothing more than the reflection of a culture. D. if firms in a host nation do not follow ethical norms then the manager of a multinational should also not follow ethical norms there
D
Article 1 of the United Nations' Universal Declaration of Human Rights states: "All human beings are born free and equal in dignity and rights." This best echoes: A. cultural relativism. B. Friedman doctrine. C. the righteous moralist approach. D. Kantian ethics.
D
Establishing _____ involves a business' resolve to place moral concerns ahead of other concerns in cases where either the fundamental rights of stakeholders or key moral principles have been violated. A. a veil of ignorance B. a difference principle C. moral imagination D. moral intent
D
FDI occurs when a: A. domestic firm imports products and services from another country. B. firm ships its product from one country to another. C. firm invests in the stock of another company. D. firm invests directly in facilities to produce or market a product in a foreign country.
D
Interdependent political, economic, and legal systems of a country make up its: A. administrative agenda. B. socioeconomic fabric. C. economic environment. D. political economy.
D
Justice theories of business ethics focus on: A. the moral worth of actions or practices. B. minimum levels of morally acceptable behavior. C. fundamental rights and privileges that transcend national boundaries. D. the attainment of a just distribution of economic goods and services.
D
Technological innovations have facilitated all of the following except: A. globalization of production. B. globalization of markets. C. creation of electronic global marketplaces. D. creation of absolutely homogeneous consumer markets.
D
The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states. A. International Development Association B. World Bank C. International Court of justice D. World Trade Organization
D
The idea that businesspeople should consider the social consequences of economic actions when making business decisions and that there should be a presumption in favor of decisions that have both good economic and social consequences is known as: A. business ethics. B. noblesse oblige. C. ethical dilemma. D. social responsibility.
D
The idea that universal notions of morality transcend different cultures is implicitly rejected by: A. the righteous moralist. B. the naive immoralist. C. the Friedman doctrine. D. cultural relativism.
D
The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines: A. society. B. value systems. C. principles. D. culture.
D
This is a less rigid form of social stratification in which social mobility is possible. A. Social system B. Caste system C. Cultural system D. Class system
D
Which of the following countries has been the largest recipient of foreign direct investment and received about $70 billion a year in inflows in 2005 and 2006? A. Brazil B. Russia C. India D. China
D
Which of the following nation's world output has declined the least over the last 40 years? A. France B. United States C. United Kingdom D. Canada
D
Which of the following observations concerning Latin American countries is true? A. Complete restrictions on direct investment by foreign firms. B. Characterized by low growth, high debt, and hyperinflation. C. Debt and inflation are up compared to previous decades. D. Substantial opportunities exist, but are accompanied by substantial risks.
D
Which of the following statements about the use of spoken language is false? A. The nature of a language structures the way we perceive the world. B. The language of a society can direct the attention of its members to certain features of the world rather than others. C. Countries with more than one language often have more than one culture. D. Most people prefer to converse in English rather than their own language
D
Which of the following, in a business setting, is taken to mean benevolent behavior that is the responsibility of successful enterprises? A. Sullivan's principles B. Ethical dilemma C. Tragedy of the commons D. Noblesse oblige
D
_____ are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like. A. Values B. Beliefs C. Mores D. Folkways
D
A country is defined as a system of values and norms that are shared among a group of people and that when taken together constitute a design for living.
FALSE
A society is another name for a country.
FALSE
According to the United Nations most changes between 1992 and 2005 to laws governing FDI have resulted in a less favorable environment for FDI.
FALSE
Because international businesses are headquartered in different countries, a nation's legal system is usually of very little interest to international business managers.
FALSE
Because of their nature, service activities cannot be outsourced to other companies.
FALSE
Collectivist inclined totalitarian states tend to be pro-private enterprise and pro-consumer.
FALSE
Corporations can contribute to the global tragedy of the commons by not pumping pollutants into the atmosphere or dumping them in oceans or rivers.
FALSE
Outsourcing is a process that is limited to manufacturing enterprises.
FALSE
People who violate folkways are considered to be evil or bad.
FALSE
The Foreign Corrupt Practices Act originally allowed "facilitating payments" to secure contracts that would not otherwise be secured.
FALSE
The Sullivan principles mandated that GM could operate in South Africa as long as the company complied with the apartheid laws.
FALSE
The expansion of world trade implies that nations are becoming less dependent on each other for important goods and services.
FALSE
The majority of U.S. firms that export are large multinationals that employ 500 or more people.
FALSE
