Intro to Int'l Business Exam #1 Review

While it might differ in other countries, in the United States the customary distance apart that should be used in a business discussion is

5-8 feet

Which of these companies has adopted unethical practices?

Tri-Land Auto sends its waste products for disposal to a developing nation becuase the pollution control laws in its home country are stricter than those in the developing nation

In the United States, the Foreign Corrupt Practices Act was passed during the 1970s following revelations that

US companies had bribed government officials in foreign countries in an attempt to win lucrative contracts

A country's national competitive advantage and its attractiveness as a location for international business are most influenced by

a well developed education system

Rawls would agree with the idea that inequalities can be justified if they

are used to the advantage of everyone

A shadow economy is in evidence when

citizens engage in barter agreements to avoid paying taxes.

What is one characteristic of a representative democracy?

citizens periodically elect individuals to act on their behalf

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

clash of value systems and ideology between civilizations

A __________ economy follows the principles of collectivism as resources are allocated based on "the common good."

command

Historically, communist countries focused on collectivist goals. The government planned production, fixed commodity prices, and also directed investments to ensure they benefitted the nation as a whole and not only a few individuals. What type of economy did this represent?

command

The United Nations created CISG in response to __________ that occur in international trade.

contract disputes

With increased economic progress, cultures across the world seem to be moving toward some universally accepted values and norms. This is known as the

convergence hypothesis

The system of values and norms that are shared among a group of people and together create a design for living is known as a

culture

A(n) __________ is considered an external stakeholder of an organization.

customer

The straw man approach of righteous moralism is typically associated with managers from

developed nations

Business __________ refers to accepted principles of right or wrong that govern the conduct of a businessperson, the members of a profession, or the actions of an organization.

ethics

A company pursuing a sustainable strategy would adopt business practices that degrade the environment.

false

A textbook author would apply for a trademark to obtain the exclusive legal rights associated with their written piece.

false

A textbook author would apply for a trademark to obtain the exclusive legal rights associated with their written piece. (T/F)

false

According to Geert Hofstede, high power distance cultures were found in societies that tended to play down inequalities of power and wealth.

false

Communist nations consistently practiced deregulation efforts.

false

If a nation has achieved economic freedom, it follows that it has also achieved political freedom.

false

In Japan today, office workers are still steadfastly adhering to the collectivist model.

false

In a planned economy, there is a great deal of freedom for entrepreneurial activity.

false

In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply.

false

In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply. (T/F)

false

Milton Friedman would agree that a business should undertake social expenditures even if it reduces profits

false

The Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until they relax the property rights offered by their legal systems.

false

The social rules that provide guidelines for appropriate behavior in a particular situation are known as attitudes.

false

When considering the violation of property rights, blackmail is a form of public action. (T/F)

false

While folkways are routine conventions, they represent deep moral significance in society.

false

"Facilitating payments" are payments to secure contracts that would not otherwise be secured.

fasle

Madeline is always late to meetings. She knows she needs to improve her time management because it is a typical expectation in the United States. This attitude toward time is an example of a

folkway

Within the context of the individual as the basic unit of a social organization, what is a manifestation of the emphasis on individualism in many Western societies?

high degree of managerial mobility between companies

Straw men approaches to ethics refer to those that are

inappropriate guidelines

Which concept laid the groundwork for the concepts expressed in the Declaration of Independence?

individualism

Products of the mind, such as computer software, a screenplay, a music score, or the chemical formula for a new drug, constitute

intellectual property

Which term best represents the relationship between the level of corruption and economic growth rate in a country?

inversely proportional

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

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

Which ethical approach typically focuses on the attainment of fair and equitable distribution of economic goods and services?

justice theories

The __________ system of a country encompasses the process through which redress for grievances is obtained.

legal

There are currently over 1.3 billion people living in India, which makes it a large market when measuring the number of potential consumers. However, India is still considered a smaller market in economic terms because of

limited purchasing power

In Denmark, the personal income tax rate is 55 percent. One of the reasons workers are willing to pay this is because they know they will reap the benefits later in the form of free health care and a universal pension in retirement. According to Geert Hofstede, what cultural dimension does this most illustrate?

long term vs short term orientation

A boom in product liability suits and awards in the United States resulted in a dramatic increase in the cost of liability insurance. Many business executives argue that this

makes American Business less competitive in the global marketplace

As democracy has spread since the 1980s, so has the development of more __________ economies.

market-based

__________ gives employees the integrity to blow the whistle on persistent unethical behavior in a company.

moral courage

The social rules and guidelines that prescribe appropriate behavior in particular situations are called

norms

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

political freedom

Several factors that are probably more important to an explanation of differential economic growth rates over time than culture include

political systems

What started in Great Britain in the early 1980s when Prime Minister Margaret Thatcher started to sell state-owned assets such as the British telephone company?

privatization

According to the Human Development Index, average income adjusted for PPP should be sufficient to

provide basic needs such as food and shelter

The state senator was found guilty of __________ when she tried to overcharge for licenses and permits from an international business that wanted to open a manufacturing plant in her state.

public action

In what type of economy are all businesses state-owned, the rationale being that the government can then direct them to make investments that are in the best interests of the nation as a whole rather than in the interests of private individuals?

pure command

Theocratic law systems are based on

religious teachings

Which philosophical approach claims that a multinational's home-country standards of ethics are the ones employees should follow even when working in foreign countries?

righteous moralism

When deregulation efforts are enacted, privatization tends to

sharply increase

Collin was born into a poor family, but he worked hard during high school and went on to receive his master's degree in business followed by a high-level job. Today, he is considered "upper middle class" and enjoys a comfortable lifestyle. Collin's journey is an example of

social mobility

The social strata evident in a society is primarily derived from

socioeconomic characteristics

An unfavorable environment for innovations and entrepreneurship is the result of

state monopoly in production

Gross national income figures should be carefully evaluated because they don't take into account differences in

the cost of living

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

the legal framework of a country is not influenced by the prevailing political system

Intellectual property laws protect

the originator of a new invention

What is one criticism regarding Geert Hofstede's research on cultural dimensions?

the research team consisted of only europeans and americans

Which statement accurately portrays the effect of the share of national income on skilled and unskilled labor?

the share of national income by skilled labor has increased

How have new information and communication technologies, including the Internet, affected the political economy in general?

they have reduced a states ability to control access to uncensored information

What political system has a government in which one political party exercises absolute control over all spheres of human life and doesn't allow opposing political parties to exist?

totalitarianism

A common law system is based on tradition and precedent.

true

A shadow economy refers to economic activity that might be in the form of unrecorded cash transactions, which are not reflected in the "official" figures reported by a country.

true

A totalitarian regime can promote economic growth if it commits to a market system and values strong protection of property rights.

true

An example of public action is when a government official extorts income.

true

Business leaders should use every relevant opportunity to stress the importance of business ethics and make sure that key business decisions not only make good economic sense but also are ethical.

true

Businesses in a command economy have little incentive to be efficient because they cannot go out of business.

true

Class membership in the United States is based on economic achievement rather than familial background and schooling.

true

Cultural norms, such as respect for others and neatness, are part of the "hidden curriculum" in schools.

true

In the United States, individuals who are born into a class system and are at the bottom of the social hierarchy can work their way up.

true

It may be more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses.

true

John Rawls argues that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.

true

One criticism of the righteous moralist approach to ethics is that adopting home-country standards isn't always appropriate.

true

One identifier of a democratic state is a nonpolitical police force.

true

The Cold War can be thought of as a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.

true

The OECD convention on bribery obliges member states and other signatories to make the bribery of foreign public officials a criminal offense.

true

The social democrats vowed to achieve socialism by turning their backs on revolution and dictatorship.

true

When a murabaha contract is used in Islamic banking, a company essentially pays the bank to purchase equipment, supplies, and other needs on behalf of the company.

true

the group is the typical unit of social organization found in non-western societies

true

Within organizational culture, __________ are abstract ideas about what a group thinks is good, right, and desirable.

values

In a nation that ensures strong legal protection of property rights, it is likely that the businesses and individuals will

want to invest more in innovations

Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan concluded that following his principles

was not sufficient to ethically justify the existence of western businesses in south Africa

Camron loves to invent new products but knows that in his country it is difficult for him to reap the rewards of innovations because they are quickly and legally copied by others after he releases them into the marketplace. As a result, Camron has decided to stop inventing. What is preventing Camron from doing what he loves?

weak property rights protection