JACKIE EXAM # 1

When nations and corporations were ranked by GNI and total sales, respectively, for 2020, how many had GNI greater than the total annual sales of Walmart Stores?

23

Factors driving globalizatiion include which, if any, of the following?

All of the above.

In class, an emphasis was made to "culture" consisting of which, if any, of the following?

All of the above.

The direction of trade is favored among major trading partners (economically integrated) when which of the following, if any, is (are) present?

All of the above.

Which, if any, of the following are more closely related with Economic Integration and Sovereignty?

All of the above.

A company that decides to engage in exporting as a way to increase economies of scale is basing this decision on which driver of international business activity?

COST

Which factor disrupted trade volumes significantly in the second quarter of 2020?

COVID-19 pandemic

What is the correlation between population density and bodies of water?

Densely populated regions coincide with rivers, lakes, and seacoasts.

If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according to trade theory

Ecuador should focus production on coffee and trade for other goods.

Anthropologist E. T. Hall suggests that there are hundreds of ways managers can learn the characteristics of other cultures. Group starts

FALSE

As presented in class, the concept of a "Nation-State" and Sovereignty are not directly linked to the concept of Economic Integration.

FALSE

Basic threats to environmental sustainability include rich nation consumerism and developing country economic growth because world population growth has slowed considerably, it is not longer a problem.

FALSE

Bodies of water, much like deserts and mountains, also serve as barriers to trade.

FALSE

In the textbook "International Business" by Geringer, the author proposes that culture is a learned behavior transmited across generations to solve societal problems.

FALSE

Internalization theory suggests that when an organization has superior knowledge, it may obtain a better price by selling it to the open market.

FALSE

Lobbyists who advocate for new laws that will affect the production standards of a business are an example of an internal force.

FALSE

Mountain ranges facilitate global markets and the process of internationalization.

FALSE

The 17th and 18th centuries have frequently been termed the age of industrialism because this was the period when industrialization was advanced to the masses.

FALSE

The majority of the world's outward FDI has been in the form of imports and exports.

FALSE

The predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases is known as the experience curve.

FALSE

Which of the following statements best describes "the carbon market"?

Firms trade carbon credits with other firms in exchange for less compliance with the cap.

The domestic environment is composed of all the uncontrollable forces originating in the ________ that surround and influence the life and development of the firm.

HOME country

As articulated by Edward Hall, which, if any, of the following is (are) correct?

High context correlates with Emotions.

Many opponents of globalization believe that the gap between rich and poor has

INCREASED

Which of the following statements about economic integration is true?

It has been associated in class with "non-equilibrium thermodynamics"

What is the current status of nuclear power?

It has been growing.

Why is it predicted that the use of coal as an energy source will decline?

It produces heavy pollution.

When a supplier to an original equipment manufacturer (e.g., a battery manufacturer supplying an automobile producer) follows its major customer to a new country, it is an example of a _________ driver of international business activity.

MARKET

Due to the expanding importance of foreign-owned firms in local economies, host governments have made their policies toward these companies

MORE LIBERAL

What is the main challenge associated with harnessing the benefits of global interconnection?

Managing risks from interdependency

Trompenaars's dimension of internal vs. external direction is similar to Kluckhohn and Strodtbeck's relationship to

NATURE

According to the provided data, which category of manufactured goods saw positive year-on-year growth in trade during 2021?

Pharmaceuticals

In high-context cultures, direct conversations that "tell it like it is" would be viewed as

RUDE

What is a significant economic consequence of the conflict in Ukraine on global trade?

Rise in commodity prices

How has the conflict in Ukraine affected commercial services trade between Russia and the EU?

Russia's services exports to the EU decreased.

From a cultural perspective, management's objectives and aspirations are associated with:

Security and mobility; Personal life, Affiliation and Social Acceptance, Power and Achievement

"Born global" is best defined as engaging in export activities from the very beginning of a firm´s existence.

TRUE

A business with tight accounting controls suggests a culture with low levels of trust.

TRUE

After Simone was transferred from the U.S. home office to the French satellite office, she was frustrated that most of her workers took the month of August off for vacation. She believed they would work the extra hours if she offered them bonus pay, but they weren't interested. In misunderstanding her workforce's motivations, Simone is exhibiting a self-reference criterion.

TRUE

Because it is a high polluter, coal is expected to decline as an energy source.

TRUE

Cultural Distance" refers to, among other factors, the distance a culture is geographically distant from the United States. And the linguistic distance from English.

TRUE

Mountains tend to impede trade, whereas flat areas tend to facilitate trade relationships.

TRUE

Rapid growth in world exports since 1980 presents positive and negative econsequences. It demonstrates that increasing sales through exporting is a viable growth strategy and creates jobs in exporting nations. In addition it acts as a warning to managers that they must be prepared to meet increased competion from exports in their own domestic markets.

TRUE

The initial introduction to the course suggests that "international business" may best be characterized as a complex, dynamic "system".

TRUE

The mobility of capital, labor and the transfer of knowledge have been described as the drivers of globalization.

TRUE

The plague known as the Black Death moved west and affected more people as the international trading system expanded.

TRUE

When company A in the UK signed a long-term contract to supply essential parts to company B in the U.S., company A decided to move its operations to the U.S. to discourage competitors from taking away the business. This is an example of a market driver.

TRUE

What is one of the reasons suggested by economist Alfred Marshall for why firms tend to cluster together on a geographic basis?

Technological information can be readily shared.

What factor is the most relevant for businesses when comparing population densities among countries?

Where does the population density occur within countries?

Tropical rain forests are

a barrier to economic development.

In England, mercantilists believed that

a nation should have an export surplus in order to accumulate precious metals.

The United States can produce more wheat for the same or lower costs than many other countries. This is an example of

absolute advantage.

Stakeholder theory pushes managers to be clear about how they want to do business, so it forces a business to

address underlying values and principles of managers and stakeholders.

The marketing team decided to develop two promotional campaigns: one featuring slender female models and the other using curvier female models to address the cultural differences of their audience. With what aspect of culture is the marketing team concerned?

aesthetics

In 2019, what was the included in the five largest categories of U.S. goods imported from China?

apparel

Culture frameworks are helpful, but their use may

apply outdated and oversimplified cultural views.

Trompenaars's achievement versus ascription dimension describes social status based on what one does or who one is. In the United States, where people build who they are through work, social status tends to be

based on achievement.

Cradle-to-cradle (C-2-C) design

closes the production loop so there is no waste.

A nation having absolute disadvantages in the production of two goods with respect to another nation has a(n) _________blank in the production of the good in which its absolute disadvantage is less.

comparative advantage

An automobile manufacturer decided to enter the European market because if it didn't, then all of the other car companies that were already there would get the business. Which driver is causing internationalization for the manufacturer?

competitive

According to Trompenaars, a culture's attitude toward the environment can range from

control over the environment to harmony with it.

When Cyra was introduced to the manager from the overseas office, she noticed he tended to lean in as he spoke with her. This made her uncomfortable, so she did her best to put some space between them during the meeting. What is causing Cyra to feel uncomfortable?

conversational distance

American Canine wanted to expand its market into Europe, so it purchased a dog supply company in France and merged it with American Canine. What type of federal direct investment did American Canine choose?

cross-border acquisition

The two components of foreign investment include portfolio investment and

direct investment.

Environmental sustainability is both local and global because

environmental conditions do not recognize national borders.

When considering where to export, advantages to managers of focusing on a nation that is already a sizable purchaser of goods coming from the home country include the fact that

export and import regulations are not insurmountable.

Trompenaars's neutral vs. affective dimension is used to determine how a culture

expresses emotions.

An opponent of globalization would state that

globalization has had harmful effects on labor and labor standards.

The traditional model of business with its focus on profitability is still widely used because it

highlights the economic benefits in the business context.

Katerina grew up in eastern Europe but moved to New York after college. Compared to her friends that stayed in Europe, she enjoys much more freedom with her time and is able to enjoy leisure activities and be active in her career. Which of Hofstede's dimensions does this demonstrate?

indulgence vs. restraint

The stakeholder model requires businesses to think about

input from all stakeholders.

Rhonda grew up in the U.S. and had never really given much thought to climate change, assuming that people could control nature. But then she moved to Sweden, a country that is leading the way in global climate change rankings. Now she believes that it is important to work with the environment, not try to control it. Which of Trompenaars's seven dimensions is described?

internal vs. external direction

Dunning's eclectic theory of international production states that if a firm is going to invest in production facilities abroad, it must have one of 3 kinds of advantages. Which one relates to firms having various alternatives to entering foreign markets, ranging from making arm's-length market transactions to operating wholly owned subsidiaries?

internalization

The theory of overlapping demand suggests that

international trade in manufactured goods will be more common between countries with similar levels of income.

When interacting with an international affiliate, business professionals should remember that ethnocentrism

is detrimental and noninclusive.

Uncertainty avoidance describes the search for truth, according to Hofstede, because

it describes how comfortable the culture's members feel in an unstructured situation.

Bernardo's Audio Incorporated is struggling in the industry because average salaries are too high in its urban location. What external force is impacting the company's ability to hire?

labor force

An advertising company based in Toronto decided to establish an operation in France because it was concerned that its competition would try to take over its clients in Europe, which represents 65 percent of its business. Which type of driver is responsible for this decision to go international?

market

Triple-bottom-line (3BL) accounting is not comparable across companies because

measurements are not standardized.

Compared to 1980, service exports in 2017 can best be described as

more than 15 times larger

A company that allows its affiliates to formulate their own local strategies has a(an) __________ strategy.

multidomestic

The 17th and 18th centuries have frequently been termed the "Age of Mercantilism" because

national power depended on the sponsorship and control of merchant capital.

Industrialized nations invest primarily in_________, and they trade more with _________.

one another; one another

An example of a political driver of globalization is

privatization of industries.

The assembly line found in automobile manufacturing facilities is an example of how culture affects

production.

In 2019, what product was included in the five largest categories of U.S. goods exported to China?

soybeans

When Melissa got to her manager's office, she noticed the door was closed and decided the manager was busy so she should come back later. What aspect of culture is affecting her decision to return later?

spatial relationships

Jannine prefers to keep her work life and home life separate. She doesn't socialize with her work associates after work and doesn't discuss her family when she is at work. Which of Trompenaars's dimensions does this exemplify?

specific vs. diffuse

The World Trade Organization was originally founded as

the General Agreement on Tariffs and Trade

Monochronic time is best illustrated by

the flight schedule at an airport.

Parry told the members of the management team that the topography of North Carolina did not lend itself to their needs for the new manufacturing facility. What is Parry referring to?

the physical features of the area

The kinds of forces in the foreign environment are ________blank those in the domestic environment except that they occur in foreign nations.

the same as

Studies conducted by the World Bank indicate that tropical climates allow for

the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.

After college, Tomas moved from California to take a job overseas. He was surprised to find that the city he moved to had strict curfew laws and all the shops and restaurants closed by 10 pm. The culture he moved into seems to want to minimize unpredictable situations which reflects which of Hofstede's dimensions?

uncertainty avoidance

Latrell decided not to take the overseas management position because he knew managers worked alongside their staff and did not have private offices in this particular international culture. He thought this made managers look less important and inconsequential. What aspect of culture is he concerned with?

unspoken languageCorrect

Which statement about ethanol is most accurate?

The use of ethanol as fuel reduces corn availability as a food source.

Overall, what has occurred with the dollar volume of service exports worldwide?

There has been an absolute increase.

What are economies of scale?

They are the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.

Mexico and Canada are major U.S. trading partners because they have the benefit of lower freight charges and shorter delivery times. Why do these benefits exist for these two nations?

They share a border with the United States.

Traditional approaches to business focus on the goal of creating profits, while the stakeholder approach forces a business

To address its underlying values and principles.