MGT 6670 -midterm
In the context of Hofstede's original four dimensions, power distance is "the extent to which less powerful members of institutions and organizations accept that power is distributed unequally."
True
In the context of the important values in the Japanese culture, paternalism is often measured by a manager's involvement in both personal and off-the-job problems of subordinates.
True
Monopolies are a danger to the market economy system because they tend to stifle economic growth.
True
One Percent for the Planet is an international nonprofit dedicated to philanthropy for environmental organizations cofounded by the founder of Patagonia.
True
Organizational climate refers to the overall atmosphere of an enterprise.
True
Organizational cultures of MNCs are shaped by a number of factors, including the cultural preferences of the leaders and employees
True
Singapore has emerged as an urban planner's ideal model and the leader and financial center of Southeast Asia.
True
Socialism is a broad political movement, and in modern times, it branched off into two extremes: communism and social democracy.
True
Tesla has collaborated with several other researchers and car manufacturers to produce greener automobiles to achieve its secondary goal of inspiring sustainability across the entire automobile industry.
True
The Brazilian economy outweighs that of any other South American country with an economic output comparable to that of France.
True
The most common form of totalitarian government is communist totalitarianism.
True
The protective principle is a jurisdictional principle that holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country.
True
The study of morality and standards of conduct is referred to as ethics.
True
The word culture comes from the Latin cultura, which is related to cult or worship.
True
There often are substantial differences between the organizational cultures of different subsidiaries.
True
To manage a global team, international managers must take into consideration three factors: culture, communication, and trust.
True
Universalism is the belief that ideas and practices can be applied everywhere without modification.
True
Utilitarianism favors the greatest good for the greatest number of people under a given set of constraints.
True
When conducting business in Russia, it is important to build personal relationships with partners.
True
When depicting cultural diversity through visually separating its components by using concentric circles, the middle ring contains the norms and values of society.
True
When setting out to manage a culturally diverse team, managers should select team members for their task-related abilities and not solely based on ethnicity.
True
A(n) ________ culture is one in which people are accorded status based on how well they perform their functions. diffuse specific ascription achievement
achievement
Under the ________, all acts of other governments are considered to be valid by U.S. courts, even if such acts are inappropriate in the United States. act of international civility act of judicial sovereignty act of international understanding act of state doctrine
act of state doctrine
The People's Republic of China had a long tradition of isolation until Deng Xiaoping opened his country to the world in ________. 1932 1947 1989 1979
1979
The seventeen Sustainable Development Goals constitute an ambitious agenda to significantly improve the human condition by ________. 2040 2050 2020 2030
2030
In the context of Xiaomi's unconventional approach to design, which of the following is used as a key element of its strategy? Patent-protected technology Personal excellence Long-term inventory holding Crowd-sourcing
Crowd-sourcing
________ can be defined as acquired knowledge that people use to interpret experience and generate social behavior. Edification Culture Cognition Symbol
Culture
In the ________ culture, jobs are well defined, employees know what they are supposed to do, and everything is coordinated from the top. guided missile family incubator Eiffel Tower
Eiffel Tower
The ________ culture is characterized by a strong emphasis on hierarchy and orientation to the task. guided missile Eiffel Tower family incubator
Eiffel Tower
In the context of e-business, the term e-cash stands for ________. Easy cash Electronic cash Export cash Exchange cash
Electronic cash
Which of the following is not one of the seventeen U.N. Sustainable Development Goals? Ensuring environmental sustainability Ensuring free vaccinations for women Eradicating discrimination against women Reducing poverty
Ensuring free vaccinations for women
Which of the following predispositions is most likely to have a top-down governance? Regiocentric predisposition Polycentric predisposition Ethnocentric predisposition Geocentric predisposition
Ethnocentric predisposition
All of the following regions are associated with "crony capitalism" except ________. Africa Europe Latin America Asia
Europe
________ can be best defined as an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability. Corporate governance Fair trade Trade union Nongovernmental organization activism
Fair trade
A form of totalitarianism, sometimes referred to as "right-wing," allows for both economic and political freedoms.
False
Eastern perspectives attempt to describe and categorize the universe from a detached, objective viewpoint.
False
Foreign direct investment has been falling alarmingly since the global recession of 2009 in most regions of the world.
False
Internationalization is the vision of creating one world unit, a single market entity.
False
It is necessary for today's organizations to do business in another country to encounter people with diverse cultural backgrounds.
False
Nationalization is an ideal in and of itself whereby an individual is completely loyal to his or her nation.
False
North American Free Trade Agreement (NAFTA) members are better integrated as a single market than the European Union (EU) or the allied Asian countries.
False
One of the factors that contributed to the early success of the Japanese economy is the presence of chaebols.
False
Patagonia shows that a company that transforms its corporate strategy to emphasize "doing good" socially and environmentally cannot do well economically.
False
Sustainability involves development that meets humanity's needs by harming future generations.
False
The United States has considerable foreign direct investment in Germany, more than in any other country.
False
The existence of equal opportunity in French and German law guarantees that equal opportunity initiatives will be implemented.
False
When conducting business in China, one must realize that individualism is highly prized.
False
When doing business in Arab countries, it is mandatory for the other party to bring an expensive gift for the Arab businesspeople.
False
________ is the term used by Hofstede to describe "a situation in which the dominant values in society are caring for others and the quality of life." Femininity Masculinity Individualism Collectivism
Femininity
An act that makes it illegal to influence foreign officials through personal payment or political contributions is referred to as the ________. Global Ethics Act Fair Treatment of Foreign Citizens Act Fairness in International Affairs Act Foreign Corrupt Practices Act
Foreign Corrupt Practices Act
Advertising in ________ is predominantly emotional, dramatic, and symbolic. Japan Germany China France
France
In ________, one's social class is very important and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle, and the lower. The United States India France Great Britain
France
In ________, spots are viewed as cultural events and reviewed as if they were literature or films. China Germany India France
France
To unite a diverse set of employees in a pharmaceutical company under a common corporate culture, AstraZeneca's Global Steering Group has focused on three universal cultural pillars. Which of the following is not one of those pillars? Transparency in Talent Management and Career Progression Leadership and Management Capability Work/Life Challenges Insight Exchange
Insight Exchange
________ is the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments. International management Strategic management Globalization Internationalization
International management
Identify a true statement about civil law. It comes from English law and is found in nonsocialist countries. It is found in most Islamic countries in the Middle East and Central Asia. It is derived from Roman law and is found in the non-Islamic and nonsocialist countries. It is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and other nations.
It is derived from Roman law and is found in the non-Islamic and nonsocialist countries
Identify a potential problem associated with diversity. It limits idea generation. It tends to cause a lack of cohesion. It deteriorates customer relationships. It tends to increase groupthink.
It tends to cause a lack of cohesion
Which of the following statements about the Transparent Agents Against Contracting Entities (TRACE) is incorrect? It was developed after a review of the practices of 34 companies. It applies to business intermediaries. It was developed as a way to prevent the shifting of corrupt practices to suppliers and intermediaries. It was established by Latin American companies.
It was established by Latin American companies
In the context of emerging and developing economies in Central and Eastern Europe, which of the following is a pervasive challenge in Russia? Expansion of the middle class Lack of public security Dismantling of Russian price controls Privatization
Lack of public security
Latin American countries have established the ________ Inter-American Convention Against Corruption, which entered into force in March 1997. FCPA OECD OAS TRACE
OAS
All of the following are examples of NGOs except ________. CARE OECD Save the Children Oxfam
OECD
________ is the process by which companies undertake some activities at offshore locations instead of in their countries of origin. Offshoring Homesourcing Globalization Insourcing
Offshoring
________ is the tendency to view the world through one's own eyes and perspectives. Symbolism Simplification Nationalism Parochialism
Parochialism
Which of the following is already being used by the Japanese and is currently being employed by the Americans? Hiring process designed to help identify individuals who will do the best job over the long run Manager-subordinate performance appraisal Participative management and autonomous work teams Cross-training and formal authority
Participative management and autonomous work teams
________ is the belief that circumstances dictate how ideas and practices should be applied. Individualism Universalism Communitarianism Particularism
Particularism
Which of the following statements is true about restrained societies? People are less likely to give importance to law and order. People are more likely to remember positive emotions. People give importance to freedom of speech. People experience a perception of helplessness.
People experience a perception of helplessness
The Trans-Pacific Partnership (TPP) is a trade agreement among 12 Pacific Rim countries, including: India, Canada, and Australia. Peru, the United States, and Vietnam. Singapore, Russia, and Chile. Great Britain, New Zealand, and China.
Peru, the United States, and Vietnam
Russia, ________ receive the most media coverage and are among the largest of the former communist countries. Poland, Hungary, and the Czech Republic Hungary, Romania, and Albania Romania, Poland, and Bulgaria Czech Republic, Bulgaria, and Poland
Poland, Hungary, and the Czech Republic
Identify a characteristic of a market economy. The state reserves the right to monitor the production and distribution of goods and services. Private enterprises reserve the right to own property. Monopolies boost economic growth. Competition is discouraged because it hinders penetration into niche markets.
Private enterprises reserve the right to own property
Which of the following describes the ways of thinking and learning in the guided missile culture? Process-oriented, creative, ad hoc, and inspirational Logical, analytical, vertical, and rationally efficient Problem centered, professional, practical, and cross-disciplinary Intuitive, holistic, lateral, and error correcting
Problem centered, professional, practical, and cross-disciplinary
In the context of the smartphone industry, which of the following helps Apple differentiate itself from its competitors? Low-cost strategy Group achievement Product innovation Collective approach to design
Product innovation
The seventeen Sustainable Development Goals include ________. reduction of poverty institutional reform enhanced college education accelerated industrialization
Reduction of poverty
In the context of sustainability in operations and products, Nestlé encourages ________. long-distance shipping of raw materials resource efficiency compensation benefits use of industrial refrigerants
Resource efficiency
In the context of human rights, which country has experienced widespread human trafficking that has accelerated in recent years? Russia India South Africa China
Russia
Which of the following scenarios best exemplifies a glass ceiling effect? Elena asks her team to contribute toward a green economy. Roger asks his senior manager to standardize compensation packages at the top level. Keith is not considered for the role of a factory worker because he is a child. Sheba is not considered for the role of a senior manager because she is a woman.
Sheba is not considered
Which of the following is a characteristic of low-context cultures? Insiders and outsiders are easily distinguishable. Relationships between people are relatively long lasting. People in authority are personally responsible for the actions of their subordinates. Authority is diffused throughout the bureaucratic system.
Authority is diffused throughout the bureaucratic system.
The most popular form of e-business is for ________. B2B dealings B2C dealings financial dealings e-retailing
B2B Dealings
At Deloitte, training employees to trust and harness the benefits of global, diverse teaming starts at the intern level.
True
Being consciously aware of the way that teammates communicate can increase the chances of success for the team.
True
In the context of cultural diversity, a supplemental way of understanding cultural differences is to compare culture as a normal distribution and then to examine it in terms of stereotyping.
True
In the context of the emerging markets of Asia, India is attractive to multinationals, especially U.S. and British firms.
True
In the context of the values in transition, China is moving away from a collectivist culture.
True
In November 2015, on the opening day of the United Nations climate summit in Paris, which of the following MNCs announced that it would no longer provide financing to coal-mining companies in both the developed and developing world? JPMorgan Chase Merrill Lynch Wells Fargo HSBC
Wells Fargo
A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in Germany should ________. tap large pool of labor cities and be prepared that lax labor laws may become more stringent be prepared for high wages and short workweek and expect high productivity from unionized workers understand changing German labor law and prepare for increasing unionization of labor treat unions as partners and allow time for negotiations
be prepared for high wages and short workweek and expect high productivity from unionized workers
A ________ group is a group in which two or more members represent each of two distinct cultures, such as four Mexicans and four Canadians who have formed a team to investigate the possibility of investing in Russia. multicultural bicultural token homogeneous
bicultural
Global firms need: neither an internal nor an external diversity focus. an internal but not an external diversity focus. both an internal and an external diversity focus. an external but not an internal diversity focus.
both an internal and an external diversity focus
Critics of the Foreign Corrupt Practices Act feared the loss of sales to foreign competitors, especially in those countries where: customs are rigidly followed. bribery is an accepted way of doing business. common law is applicable. political stability exists.
bribery is an accepted way of doing business
Culturally, a German can be expected to have a ________ handshake. light and quick long and involved gentle brusque and firm
brusque and firm
NGOs that seek to promote ethical and socially responsible business practices are generating substantial changes in all of the following areas except ________. business development corporate management corporate governance strategy
business development
Corporate governance: can be defined as the system by which business corporations are directed and controlled. seeks to serve society's interests by focusing on social, political, and economic issues such as poverty, social justice, education, health, and the environment. can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm. can be defined as development that meets humanity's needs without harming future generations.
can be defined as the system by which business corporations re directed and controlled
A ________ is comparable to a monopoly in the sense that an organization, in this case the government, has explicit control over the price and supply of a good or service. market economy mixed economy command economy socialist economy
command economy
The United Kingdom's corporate characteristic is: commercial. pragmatic. industrial. administrative.
commercial
The Hong Kong office of Salomon Brothers, a U.S. investment bank, estimates that to meet the expanding demand for telecommunication service in Asia, companies will need ________. cheaper technology cheap and efficient labor considerable increase in investment cheaper service providers
considerable increase in investment
When depicting cultural diversity through visually separating its components by using concentric circles, the inner circle: consists of food and buildings. contains the norms, beliefs, dimensions, and values of society. contains the implicit, basic assumptions that govern behavior. consists of language and art.
contains the implicit, basic assumptions that govern behavior
In the action stage of team development, the focus shifts to: decision making and implementation. building trust and developing team cohesion. analyzing an assigned task. describing a problem.
decision making and implementation
A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Japan should ________. develop trusting relationship with recruit use expatriates sparingly and recruit home country nationals at U.S. colleges obtain skilled labor from government subsidized apprenticeship program encourage use of sophisticated selection procedures based on recent public policy shifts
develop trusting relationships with recruit
Dirigiste" is used to describe the ________ dimension of France. economic philosophical structural cultural
economic
The ultimate objective of the European Union is to: eliminate all trade barriers among member countries. develop separate custom duties for member countries. increase imports into European Union countries. have a single government that represents all European Union countries.
eliminate all trade barriers among member countries
In the ________ stage of group development, the focus should be on building trust and developing team cohesion. entry reflection work action
entry
A company with a(n) ________ predisposition allows the values and interests of the parent company to guide strategic decisions. ethnocentric geocentric regiocentric polycentric
ethnocentric
In the context of the trends in technology, the open-source model restricts free and legal sharing of software and code to prevent underdeveloped countries from gaining competitive advantage while minimizing costs.
false
The ________ culture is characterized by a strong emphasis on hierarchy and orientation to the person. guided missile family incubator Eiffel Tower
family
When it works well, the ________ culture can catalyze and multiply the energies of the personnel and appeal to their deepest feelings and aspirations. Eiffel Tower guided missile family incubator
family
Change in the incubator culture is: almost nonexistent. fast and spontaneous. slow and calculated. moderate and methodological.
fast and spontaneous
According to the priorities of cultural values of the United States, Japan, and Arab countries, the most important cultural value in the United States is ________. family security freedom belonging cooperation
freedom
A company with a(n) ________ predisposition tries to integrate a global systems approach to decision making. regiocentric ethnocentric geocentric polycentric
geocentric
Firms with a geocentric predisposition have a ________ culture. global host country regional home country
global
A diffuse culture is one in which individuals: greet each other with a great deal of enthusiasm. have a large public space and a small private space. are direct and extroverted. guard their public space carefully.
guard their public space carefully
The ________ culture is a project-oriented culture. incubator guided missile family Eiffel Tower
guided missile
The ________ culture is characterized by a strong emphasis on equality in the workplace and orientation to the task. guided missile family incubator Eiffel Tower
guided missile
In the context of established economies, the European Union:
has largely achieved the reality of a single currency and a regional central bank
The five criteria in the acronym HAIRL stood for ________. helicopter, action, interest, reality, and leadership hierarchy, action, ingenuity, reverie, and leadership helicopter, analysis, imagination, reality, and leadership hierarchy, awareness, ingenuity, reverie, and leadership
helicopter, analysis, imagination, reality, and leadership
Malaysia has what could be called a ________. variable-context culture moderate-context culture low-context culture high-context culture
high-context culture
Most French organizations tend to be ________. highly decentralized and have rigid structures highly decentralized and have lose structures highly centralized and have rigid structures highly centralized and have lose structures
highly centralized and have rigid structures
A ________ group is characterized by members who share similar backgrounds and who generally perceive, interpret, and evaluate events in similar ways. bicultural multicultural homogeneous token
homogeneous
The ________ culture is characterized by a strong emphasis on equality and personal orientation. guided missile family Eiffel Tower incubator
incubator
________ cultures often create environments where participants thrive in an intense, emotional commitment to the nature of the work. Family Incubator Guided missile Eiffel Tower
incubators
The guided missile culture is characterized by ________. a paternal relationship with management a formal hierarchy individual expertise personal orientation
individual expertise
Philosophers such as David Hume, Adam Smith, and Aristotle contributed to the ideology of ________. socialism communism individualism collectivism
individualism
Hofstede's ________ dimension focused on the tendency of people to look after themselves and their immediate family rather than the tendency to belong to groups to look after each other in exchange for loyalty. power distance uncertainty avoidance masculinity versus femininity individualism versus collectivism
individualism vs collectivism
Which of the following dimensions measures the freedom to satisfy one's natural needs and desires within a society? Achievement versus ascription Universalism versus particularism Indulgence versus restraint Specific versus diffuse
indulgence versus restraint
Which of the following industries would constitute the white-collar service industries? Steel and autos Insurance only Agriculture Insurance and banks
insurance and banks
In the context of offshoring, some informed observers note that technology already has eliminated much and in the future will eliminate even more of the work being done by: line employees and service staff. middle managers and white-collar staff. maintenance workers. top level managers.
middle managers and white-collar staff
Low-uncertainty-avoidance societies have organization settings with: more written rules. less risk taking by managers. lower labor turnover. more ambitious employees.
more ambitious employees
In the context of technological advancements, emerging information technology has made work ________. more risky more complicated more portable more tedious
more portable
In the context of offshoring, which of the following factors has placed pressure on multinational corporations to outsource production? Lack of cheap and expert labor Global and internal competition Profit expectation by governments Mounting cost pressure
mounting cost pressure
A ________ group is a group in which there are individuals from three or more different ethnic backgrounds, such as three U.S., three German, three Uruguayan, and three Chinese managers who are looking into mining operations in Chile. homogeneous token bicultural multicultural
multicultural
Firms with a polycentric predisposition have a strategy of ________. global integration and national responsiveness global integration regional integration and national responsiveness national responsiveness
national responsiveness
In practice, guanxi resembles ________. parochialism individualism commercialism nepotism
nepotism
The Eiffel Tower culture is most commonly found in: northeastern Asian countries, such as Taiwan, South Korea, and Japan. northwestern European countries, such as Germany, Denmark, and the Netherlands. North Atlantic countries, such as England, Ireland, and Canada. South American countries, such as Brazil, Argentina, and Chile.
northwestern European countries, such as Germany, Denmark and the Netherlands
According to Dutch researcher Geert Hofstede, there are four original dimensions of culture. These are: power distance, uncertainty avoidance, individualism, and masculinity. group orientation, uncertainty avoidance, aggressiveness, and masculinity. tolerance, group orientation, aggressiveness, and forwardness. tolerance, power distance, individualism, and aggressiveness.
power distance, uncertainty avoidance, individualism, and masculinity
Which of the following statements is true about totalitarianism?
power is often maintained by suppression of opposition, which can be violent
Countries that have high individualism and relatively low power distance: prefer others to do things for themselves. are collectivist in their approach. are not upset when others have more power than they do. are upset when others have more power than they do.
prefer others to do things for themselves
The Transparent Agents Against Contracting Entities (TRACE) standard was developed to: serve as a formal agreement by a host of industrialized nations to outlaw the practice of bribing foreign government officials. prevent multinationals from disguising personal payments as consulting fees. prevent the shifting of corrupt practices to suppliers and intermediaries. support and respect the protection of international human rights within their sphere of influence.
prevent the shifting of corrupt practices to suppliers and intermediaries.
As companies become what Alder calls "multinational firms," they often find that ________ tends to dominate all other considerations and the direct impact of culture may lessen slightly. durability price quality serviceability
price
The ________ holds that governments have the right to rule themselves as they see fit. principle of sovereignty protective principle territoriality principle nationality principle
principle of sovereignty
Confucianism, associated with China, does not emphasize: balance. harmony. profit. respect for authority.
profit
In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by all of the following opportunities except ________. earnings profit-sharing plans recognition advancement
profit-sharing plans
In the context of collectivism, the Greek philosopher Plato believed that: a classless society would help keep people focused on societal goals. property should be commonly owned. individual desires should be viewed as the most important. individual rights should be secured.
property should be commonly owned
A(n) ________ predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis. regiocentric ethnocentric geocentric polycentric
regiocentric
A firm with an ethnocentric orientation: redistributes profits globally. retains profits in host country. repatriates profits to home country. redistributes profits within region.
repatriates profits to home country
To qualify as a multinational corporation (MNC), a firm must meet all of the following criteria except: a mix of nationalities among managers and owners. sales of at least one million dollars per year. operations in more than one country. international sales.
sales of at least one million dollars per year
The way in which a manager working in the country of Batangonia interacts with a manager working in the country of Octavia is the same way in which he or she behaves when doing business with an executive working in the country of Cordia. This scenario exemplifies ________. simplification parochialism symbolism ethnocentrism
simplification
Cultures with a low masculinity place great importance on conservation of the environment and tend to favor ________. small-scale enterprises underdeveloped countries less developed countries third world countries
small-scale enterprises
Austria, the United Kingdom, the United States and Switzerland all are ________ cultures. emotional specific diffuse neutral
specific
In the context of the treatment and rights of aliens, countries have the legal right to refuse admission of foreign citizens and to impose special restrictions on all of the following except ________. conduct right of travel spending what business they may conduct
spending
According to Lee's research in Singapore on small Chinese family businesses, older generations tend to: stress strategies. focus on individual performance. strive for new horizons. stress hierarchies.
stress hierarchies
By 2017, foreign direct investment (FDI) is estimated to: experience a significant drop similar to the global recession of 2009. reach an all-time low due to political instability and uncertain markets. surpass the all-time high set a decade earlier in 2007. experience an insignificant rise due to a slow rate of increase of merchandise exports.
surpass the all-time high set a decade earlier in 2007
The ________ holds that every nation has the right of jurisdiction within its legal territory. territoriality principle sovereignty principle protective principle nationality principle
territoriality principle
Unlike Western perspectives, Eastern perspectives ________. provide an account of what character traits contribute to pursuing and realizing the good in concrete ways emphasize the greatest happiness principle as an individual's moral standard are based on a logic similar to an economic calculation of utility or cost-benefit typically hold that people are an intrinsic and inseparable part of the universe
typically hold that people are intrinsic and inseparable part of the universe
In the ________ stage of group development, attention may be directed more toward describing and analyzing the problem or task that has been assigned. action work entry reflection
work
According to Aristotelian virtue ethics, which of the following statements is true? A good, or virtuous, individual does what is right for the right reasons. A given act is morally correct if the ratio of benefit to harm is greater than the ratio resulting from an alternative act. The universe is described and categorized from a detached, objective viewpoint. Social and institutional arrangements play an insignificant role in the formation of good character in individuals.
A good, or virtuous, individual does what is right for the right reasons
Identify a characteristic of social democracy.
Achievement of goals through nonviolent revolution
Identify a characteristic of social democracy. Loyalty of an individual toward his or her nation Achievement of goals through nonviolent revolution Complete control over every facet of political and human life Transference of ownership of a business from individuals to a government
Achievement of goals through nonviolent revolution
Which of the following is likely to present an opportunity for MNCs to make a positive impact in developing countries? Lax environmental standards Underdeveloped infrastructure Low wage rates Adoption and exportation of best practices
Adoption and exportation of best practices
Which of the following is a characteristic of a high-context culture? Deep personal involvement with others is not valued greatly. Insiders and outsiders are not readily distinguishable. Individuals are taught from a very early age to say exactly what they mean. Agreements tend to be spoken rather than written.
Agreements tend to be spoken rather than written
If businesspeople in ________ commit themselves to a date in the future and fail to show up, they may feel no guilt or concern because they believe they have no control over time in the first place. France Arab countries China Great Britain
Arab countries
The Asian economic block, made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Cambodia, Myanmar, and Vietnam, is referred to as the: Southeast Asia Common Market. Southeast Asia Free Trade Agreement (SEAFTA). Asian Economic Union. Association of Southeast Asian Nations (ASEAN).
Association of Southeast Asian Nations (ASEAN)
The typical broad, self-deprecating ________ commercial amuses by mocking both the advertiser and consumer. British Chinese Japanese French
British
Which of the following cultural characteristics should be kept in mind when conducting business in Russia? Giving gifts to those with whom one wants to transact business is regarded as bribery. Building personal relationships with partners is important. Russian expatriates score high on business practices. Businesspeople should try and settle business deals quickly.
Building personal relationships with partners is important
Which of the following cultural characteristics should be kept in mind when conducting business in Russia? Giving gifts to those with whom one wants to transact business is regarded as bribery. Businesspeople should try and settle business deals quickly. Russian expatriates score high on business practices. Building personal relationships with partners is important.
Building personal relationships with partners is important
In the context of established economies, the United States has considerable foreign direct investment in ________. Canada the Netherlands the United Kingdom Mexico
Canada
________ is the United States' largest trading partner, a position it has held for many years. Japan England Mexico Canada
Canada
Which of the following economies is projected to become the largest by 2050 using market exchange rates? China Australia India Brazil
China
Guanxi is an important dimension of the ________ culture. Arabian Brazilian Chinese Russian
Chinese
In early 2010, the issue of relatively low wages paid by ________ subcontractors made the headlines after a number of suicides by workers at factories run by Foxconn. Vietnamese Chinese Mexican Malaysian
Chinese
________ comes from English law and is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and others. Civil or code law Common law Socialist law Islamic law
Common law
________ can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm. Corporate social responsibility Law Governance Ethics
Corporate social responsibility
Which of the following is one of the biggest problems in Russia and in other transition economies? Social democracy Nationalization Corruption Privatization
Corruption
According to the latest corruption index of countries around the world, the country with the lowest level of perceived corruption is ________. Mexico Brazil Denmark Hong Kong
Denmark
Which of the following describes the relationships between employees in the family culture? Specific tasks in cybernetic system targeted on shared objectives Diffuse, spontaneous relationships growing out of shared creative process Specific role in mechanical system of required interaction Diffuse relationships to organic whole to which one is bonded
Diffuse relationships to organic whole to which one is bonded
The ________ holds that there must be mutual respect for the laws, institutions, and the government of other countries in the matter of jurisdiction over their own citizens. doctrine of protectionism doctrine of comity doctrine of civility doctrine of mutual understanding
Doctrine of comity
In the context of international corporation evolution, which of the following corporations has an ethnocentric perspective? International corporations Global corporations Domestic corporations Multinational corporations
Domestic corporations
Which of the following views the individual as part of, rather than separate from, nature? Aristotelian virtue ethics Utilitarianism Kantian philosophical traditions Eastern philosophy
Eastern philosophy
________ can be best defined as an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability. Trade union Fair trade Nongovernmental organization activism Corporate governance
Fair trade
According to a study conducted by the World Economic Forum, an international nonprofit organization that measured the economic opportunities and political empowerment of women by nation in 2015, Japan occupied the first rank in the "gender gap index."
False
According to the priorities of cultural values of the United States, Japan, and Arab countries, independence is the top cultural priority in Japan.
False
Among international firms, which focus on exporting and producing abroad, cultural diversity has a relatively weak impact on their external relationships with potential buyers and foreign employees.
False
An ethnocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.
False
As the diversity of a group increases, the likelihood of all members perceiving things in the same way increases sharply.
False
At Deloitte, employees are trained to adapt to the cultural differences that their globally located leaders exhibit.
False
At Xiaomi, individual achievement is highly regarded.
False
Biotech companies mainly manufacture drugs through a process similar to that of organic chemistry and are unable to discover genetic abnormalities.
False
Collectivism emerged in Poland and France as "national socialism."
False
Common law is derived from Roman law and is found in non-Islamic and nonsocialist countries such as France, some countries in Latin America, and even Louisiana in the United States.
False
Communism is an authoritarian political ideology that considers individual and other societal interests inferior to the needs of the state.
False
Fascism is an extreme form of socialism that was realized through violent revolution and was committed to the idea of a worldwide communist state..
False
Hofstede found that wealthy countries have higher collectivism scores and poorer countries higher individualism scores.
False
Hungary's economy was the only economy in the EU to continue to grow during the global recession of 2008-2009.
False
In Japan, compensation levels are determined by using skill, ability, and performance.
False
In Japan, people often are hired based on what they can do for the firm in the short run because many of them eventually will quit or be downsized.
False
In a command economy, a general balance between supply and demand sustains prices, while an imbalance creates a price fluctuation.
False
In a high-context culture, relationships between individuals are relatively short in duration.
False
In a low-context culture, insiders and outsiders are readily distinguished.
False
In the United States, companies tend to reach out to the government for assistance when finances are pressured.
False
In the context of Dutch researcher, Fons Trompenaars's relationship orientations, cultures with high universalism focus more on relationships and trust than on formal rules.
False
In the context of Dutch researcher, Fons Trompenaars's relationship orientations, people in high-communitarianism societies stress personal and individual matters.
False
In the context of Hofstede's original four dimensions, countries with low-uncertainty-avoidance cultures have a great deal of structuring of organizational activities, more written rules, less risk taking by managers, lower labor turnover, and less ambitious employees.
False
In the context of corporate governance, the U.K. and U.S. systems have been termed insider systems because ownership tends to be much more concentrated, with shares often being owned by holding companies, families, or banks.
False
In the context of corruption, it was observed that when U.S. multinationals stopped influencing foreign officials through personal payments or political contributions, they were unable to sell in that particular market.
False
In the context of organizational cultures, the Eiffel Tower culture is characterized by a strong emphasis on equality in the workplace and orientation to the person.
False
In the context of the changing global demographics, elderly populations spend money on housing and other capitally financed purchases.
False
In the context of the characteristics of culture, transgenerational means that culture has structure and is integrated; a change in one part will bring changes in another.
False
In the context of values in transition, collectivism is on the rise in Japan.
False
In the work stage of team development, attention may be directed toward decision making and implementation.
False
Kantian moral analysis accepts consequences (either conceivable or likely) as morally irrelevant when evaluating the choice of an agent.
False
Kirkman and colleagues concluded that "working virtually increases team process losses associated with stereotyping."
False
Many NGOs recognize that MNCs fail to adhere to high standards of social and environmental responsibility in host countries' markets.
False
Multicultural teams are most effective when they are assigned to routine tasks.
False
The doctrine of civility holds that there must be mutual respect for the laws, institutions, and governments of other countries in the matter of jurisdiction over their own citizens.
False
The economy of Argentina outweighs that of any other South American country with an economic output comparable to that of France and has become a worldwide presence.
False
According to Hofstede's time orientation dimension, which of the following statements is true about long-term-oriented societies? Traditions are sacrosanct. Service to others is an important goal. Family life is guided by shared tasks. Students attribute success and failure to luck.
Family life is guided by shared tasks
________ is the term used to indicate the amount invested in property, plant, and equipment in another country. Exporting Importing Trade imperfection Foreign direct investment
Foreign direct investment
Many in the United States believe that it is more difficult to get along with the ________ than with other Europeans. Germans Austrians French Spanish
French
Statistics show that on average, ________ workers have the longest vacations in the world, four to five weeks annually. Indian French Chinese Arabian
French
Identify the country in which Shell's operating company prioritized the HAIRL appraisal system by putting leadership at the top of the list and helicopter at the bottom. France The Netherlands Germany Britain
Germany
Which of the following countries prefers advertising that is factual and rational? France China India Germany
Germany
In the context of human rights, identify a true statement about women's rights and gender equity. Germany has seen an increase in the number of women both in the workforce and in management positions. Japan has equal opportunity initiatives, whether they are guaranteed by law or are represented by growing social groups. Many women college graduates in Great Britain are still offered only secretarial or low-level jobs. Two-thirds of businesses in France have no female members on their senior leadership teams.
Germany has seen an increase in the number of women both in the workforce and in management positions
Which of the following cultures is characterized by a universal method of greeting an equal by pressing one's palms together in front of the chest and saying, "namaste"? The Arabian culture The Indian culture The Russian culture The Brazilian culture
Indian culture
In general, French employees give utmost importance to quality of life and do not derive much motivation from professional accomplishment.
True
________ is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness. International complacency Globalization imperative Worldwide indifference Cross-cultural contentment
Globalization imperative
In the context of bureaucratization, which of the following statements is true of Japan? Parochial actions are highly unlikely to create problems for multinational corporations trying to do business. Government controls are inefficient and need to be corrected to encourage multinational corporations to do business. Politicians are more interested in the long-term well-being of the nation as a whole than in the well-being of their own districts. The banking system is expansionary, and there is very little room for reformation.
Government controls are inefficient and need to be corrected to encourage multinational corporations to do business
Which of the following fundamental questions is not included in the specific objectives of the GLOBE project? Are there leader behaviors, attributes, and organizational practices that are accepted and effective in only some cultures? What is the effect of violating cultural norms that are relevant to leadership and organizational practices? What is the relative standing of each of the cultures studied on each of the nine core dimensions of culture? How do attributes of societal and organizational cultures affect the behaviors of lower-level workers in an organization?
How do attributes of societal and organizational cultures affect the behaviors of lower-level workers in an organization
All of the following companies have been criticized by NGOs for actions portraying lack of social responsibility in developing countries except ________. Levi's Nike Chiquita Hewlett-Packard
Hwelett-Packard
In the context of the changing global demographics, identify a change that will be seen in developed nations. In South Korea, the immigration policy will ease by 2050. In Japan, the number of nonworkers will be nearly equal to that of workers by 2050. In Germany, there will be a removal of restrictions on agricultural products, auto parts, and energy goods. Developed Asian nations will be able to easily replace the retiring, aging population.
In Japan, the number of nonworkers will be nearly equal to that of workers by 2050
Identify an accurate statement about the link between cultural clusters and compensation strategies. In countries that have a high individualism index, profit-sharing plans are highly effective. In Pacific Rim countries, incentive plans should be individual-based. In Great Britain, managers value collectivism. In high-masculinity cultures, high salaries should be paid to senior-level managers.
In high-masculinity cultures, high salaries should be paid to senior-level managers
In the context of emerging and developing economies, identify a true statement about India. Indians are known for their advanced information technology expertise. Its political instability is pervasive, which generates substantial risks for foreign investors. Indian government is unable to provide funds for economic development. The overwhelmingly diverse people of India mostly speak tribal languages and dialects.
Indians are known for their advanced information technology expertise
Which of the following statements is true about utilitarianism? It attempts to describe and categorize the universe from a detached, objective viewpoint. It is an attractive perspective for business decision making. It emphasizes the formation of good character in individuals. It is aimed at minimizing utility and maximizing morality.
It is an attractive perspective for business decision making
Which of the following statements is incorrect about the treaty that initially included 29 nations that belong to the Organization for Economic Cooperation and Development (OECD) and marked a victory for the United States?
It outlaws most payments to political party leaders.
In the context of established economies, despite setbacks, ________ remains a formidable international competitor and is well poised in all three major economic regions: the Pacific Rim, North America, and Europe.
Japan
Paternalism, measured by a manager's involvement in both personal and off-the-job problems of subordinates is very important in ________. Australia Japan France the United States
Japan
According to a cross-cultural study of differences in work values, ________ managers placed a high value on deference to superiors, company commitment, and the cautious use of aggressiveness and control. German French Japanese U.S.
Japanese
In the context of product focus in the smartphone industry, which of the following approaches is used by Apple to achieve success? Imitating patent-protected technology Maintaining first-mover advantage Adjusting production to meet demand Celebrating collaboration between employees and the public
Maintaining first-mover advantage
Which of the following statements is true about women's rights and gender equity in Japan?
Many women college graduates are still offered only secretarial or low-level jobs
By the early 1990s ________ had recovered from its economic problems of the previous decade and had become the strongest economy in Latin America. Chile Brazil Mexico Argentina
Mexico
Which of the following countries was not among the world's 10 most competitive nations in 2015? Mexico Germany Singapore Norway
Mexico
Which of the following cultural characteristics should be kept in mind when doing business in Arab countries? Destiny depends on the behavior of individuals. Social status is largely determined by accomplishments. It is necessary to bring an expensive gift for Arab businesspeople. Mutual respect is required at all times.
Mutual respect is required at all times
The ________ is a free-trade agreement among the United States, Canada, and Mexico that has removed most barriers to trade and investment. NAFTA . . CAFTA . . AFTA EFTA
NAFTA
Identify a statement about NGOs that is false. Large global NGOs are active in all parts of the world. NGO activism has been responsible for minor changes in corporate behavior and governance. NGOs are regarded as a counterweight to business and global capitalism by some observers. The force of NGOs has been felt in a range of major public policy debates.
NGO activism has been responsible for minor changes in corporate behavior and governance
The ________ holds that every country has jurisdiction (authority or power) over its citizens no matter where they are located
Nationality principle
The United States, Canada, and Mexico make up the ________, which in essence has removed all barriers to trade among these countries and created a huge North American market. General Agreement on Tariffs and Trade North American Trade Union North American Common Market North American Free Trade Agreement
North American Free Trade Agreement
________ is a pattern of basic assumptions that is developed by a group as it learns to cope with problems of external adaptation and internal integration and is taught to new members as the correct way to perceive, think, and feel in relation to these problems. Organizational learning Organizational change Organizational structure Organizational culture
Organizational culture
Identify a true statement about the different approaches identified by Dutch researcher, Fons Trompenaars to describe the ways in which people deal with the concept of time. People in Mexico often build slack into their schedules to allow for interruptions. People in the United States operate under more of a synchronous-time orientation. People in the United States adjust their approach because of factors that are beyond their control. People in Mexico give utmost importance to the particular path or sequence used to reach an end.
People in Mexico often build slack into their schedules to allow for interruptions
Which of the following statements is true about cultures with high communitarianism? People jointly assume responsibility. Negotiations are typically made on the spot by a representative. Entrepreneurial spirit is most likely high. People give more importance to personal and individual matters.
People jointly assume responsibility
In the context of how people deal with the concept of time, which of the following statements is true about the sequential approach identified by Dutch researcher, Fons Trompenaars? Schedules are subordinate to relationships. People show a strong preference for following plans but are likely to deviate. Appointments are approximate and may be changed at a moment's notice. People tend to do only one activity at a time.
People tend to do only one activity at a time
Which of the following statements is true about the economy of Poland? The consensus decision-making system of Poland turns out to be too time-consuming in the new speed-based economy. During the 1970s and 1980s, Poland's economic success had been without precedent. Poland's economy was the only economy in the European Union to grow during the global recession of 2008-2009. Poland is among the largest of the former communist countries that receive the least media coverage.
Poland's economy was the only economy in the European Union to grow during the global recession of 2008-2009
Which of the following statements is true of the Eiffel Tower culture? It is well equipped to handle changes. Job assignments are flexible, and personnel do whatever it takes to get the job done. Replacing the person holding the top position affects work of the organization members. Relationships are specific, and status remains with the job.
Relationships are specific, and status remains with the job
According to the latest corruption index of countries around the world, the country with the highest level of perceived corruption is ________. Ukraine Somalia Chile Poland
Somalia
In addition to Japan and China, the important economies in Asia are: Singapore, South Korea, Indonesia, and Thailand. Thailand, South Korea, Indonesia, and Hong Kong. Indonesia, South Korea, Japan, and Taiwan. South Korea, Hong Kong, Singapore, and Taiwan.
South Korea, Hong Kong, Singapore, and Taiwan
According to the GLOBE Cultural Variable Results, which of the following countries were the most assertive? Ireland and Sweden Egypt and the United States Spain and the United States Spain and Ireland
Spain and the United States
In the context of Hofstede's original four dimensions, cultures with a high masculinity index tend to favor earnings, advancement, and challenge.
True
Which of the following describes the attitude toward authority in the Eiffel Tower culture? Status is achieved by project group members who contribute to a targeted goal. Status is achieved by individuals exemplifying creativity and growth. Status is ascribed to parent figures that are close and powerful. Status is ascribed to superior roles that are distant yet powerful.
Status is ascribed to superior roles that are distant yet powerful
In the context of corruption, the ________ standard was developed as a way to prevent the shifting of corrupt practices to suppliers and intermediaries.
TRACE
Which of the following statements is true according to the reports that were released in 2004 and 2011 by the Goldman Sachs global economics team? The economies of Indonesia, Mexico, and Turkey could expand significantly in the coming decades. The BRIC (Brazil, Russia, India, and China) economies' share of world growth could rise significantly from 2003 to 2025. The E7 (Brazil, China, India, Indonesia, Mexico, Russia, and Turkey) economies would mature and slow down in terms of market exchange rates. The economies of Russia and Brazil would remain unaffected by the low prices for oil and other commodities in the years 2015 and 2016.
The BRIC (Brazil, Russia, India, and China) economies' share of world growth could rise simnifically from 2003 to 2025
In which of the following cultures punctuality is a strong suit? The Brazilian culture The Chinese culture The Arabian culture The Indian culture
The Chinese culture
According to the World Bank, which of the following economies does not rank high on the ease-of-doing-business index?
The Philippines
Which of the following statements is true about the adage "When in Rome, do as the Romans do"? The adage is derived from the idea of cultural relativism. Its logic is similar to an economic calculation of utility or cost-benefit. The adage assumes that an individual is distinct from the entire universe. It is derived from the idea that a virtuous individual derives utmost satisfaction from his or her good actions.
The adage is derived from the idea of cultural relativism
Which of the following types of organizational cultures is power-oriented and headed by a leader who is regarded as a caring parent? The family culture The incubator culture The Eiffel Tower culture The guided missile culture
The family culture
Which of the following statements is true of democracy? Impartial public service restricts freedom of expression and assembly. Once elected, a representative cannot be reelected. The government is controlled by the citizens either directly or through elections. Once elected, a representative can no longer be held accountable for his or her actions.
The government is controlled by the citizens either directly or through elections
Which of the following types of organizational cultures is most likely egalitarian and project-oriented? The Eiffel Tower culture The guided missile culture The incubator culture The family culture
The guided missile culture
In which of the following types of organizational cultures are organizations typically entrepreneurial and provide an environment for the self-expression and self-fulfillment of their members? The incubator culture The guided missile culture The Eiffel Tower culture The family culture
The incubator culture
Which of the following types of organizational cultures can be considered a fulfillment-oriented culture? The family culture The Eiffel Tower culture The guided missile culture The incubator culture
The incubator culture
Which of the following constitutes an ambitious agenda to significantly improve the human condition by 2030? The Human Rights Act 1993 The Foreign Corrupt Practices Act The NAFTA The seventeen Sustainable Development Goals
The seventeen Sustainable Development Goals
In the context of Hofstede's original four dimensions, organizations in high-power-distance countries will tend to be centralized and have tall organization structures.
True
Which of the following is associated with the dimension of pragmatic conduct? To pursue clear aims and objectives To comply with clear and definite systems To put the demands and expectations of the customers first To put the expertise and standards of the employing organization first
To put the demands and expectations of the customer first
In the context of Arab countries, what is meant by the expression Bukra insha Allah? Tomorrow if God wills Good connections Time is money Greetings to you
Tomorrow if God wills
Identify a true statement about the Development Round in which the members of the World Trade Organization (WTO) met and launched a round of negotiations at Doha, Qatar in November 2011. There was a lack of consensus among WTO members regarding unbalanced population pyramids. The WTO members agreed upon the issues of competition. The WTO members agreed upon the opening of government procurement markets to companies in the developed nations. There was a lack of consensus among WTO members regarding agricultural subsidies.
There was a lack of consensus among WTO members regarding agricultural subsidies
Which of the following statements is true about Kantian philosophical traditions? They state that rational beings are incapable of evaluating their choices through the lens of a universal law or the "categorical imperative." They ask to accept consequences, either conceivable or likely, as morally relevant when evaluating the choice of an agent. They argue that individuals have responsibilities based on a core set of moral principles that go beyond those of narrow self-interest. They argue that what is distinctive about rational behavior is the fact that it is self-interested and purpose driven.
They argue that individuals have responsibilities based on a core set of moral principles that go beyond those of narrow self interests
Which of the following statements is true about stateside Japanese managers? They perceived obedience and conformity to be very important. They believed that job security was important. They accepted the idea that one should not question a superior. They believed that unconditional tenure in one organization is of major importance.
They believed that job security was important
Which of the following statements is true about French workers? They have a reputation for high productivity. They derive motivation from professional accomplishment. They are known to have an intense work ethic. They are willing to sacrifice their leisure time.
They have a reputation for high productivity
Which of the following is the identity dimension of corporate culture? To identify with and uphold the expectations of the employing organizations To strive for accuracy and attention to detail To put the demands of the job before the needs of the individual To put the needs of the individual before the needs of the job
To identify with and uphold the expectations of employing organizations
A firm with an ethnocentric predisposition may find it difficult to implement a geocentric strategy because it is unaccustomed to using global integration.
True
A major benefit of culturally diverse groups is that they can prevent groupthink.
True
A neutral culture is one in which emotions are held in check.
True
A vast network of fiber-optic cables that are used for almost all transoceanic communication lead to a great deal of system vulnerability.
True
About 46 percent of employees in both the United States and Russia would prefer a work schedule that fluctuates between work and leisure, mirroring a pattern of recurring sabbaticals.
True
An increase in the ease of travel between countries is an important development that has occurred because of the North American Free Trade Agreement (NAFTA).
True
Andre Laurent's research found that cultural differences actually are more pronounced among foreign employees working within the same multinational organization than among personnel working for firms in their native lands.
True
Both domestic and international political environments have a major impact on multinational corporations.
True
China remains a major risk for investors because they are required to maintain a delicate balance between the country's communist and capitalist systems.
True
Corporate social responsibility includes the actions of a firm that go beyond the requirements of the law and the direct interests of the firm.
True
Despite being unable to take full advantage of globalization, there is still hope in the future for Africa because the potential of African countries remains virtually untapped.
True
Diverse and global teams are one of the most consistent sources of competitive advantage for any organization.
True
Essentially, every citizen should be involved in decision-making processes in a democratic system
True
General Electric (GE) has strategically leveraged social media to improve its long-term brand image.
True
In America, authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down.
True
In Arab countries, initial meetings typically are used to get to know the other party.
True
In China, Confucianism, which was overshadowed, is slowly gaining popularity once again, emphasizing respect for authority, concern for others, balance, harmony, and overall order.
True
In Japan, women in the workforce still experience the effects of a "glass ceiling."
True
In November 2015, Morgan Stanley stated that it has a responsibility to guide the global community toward a low-carbon economy as a financier.
True
A survey of businesspeople from Argentina, Brazil, Chile, Columbia, and Venezuela found that the ________ market, on average, was more important for their economic well-being than any other market. European Union U.S. Mexican Japanese
U.S.
According to a cross-cultural study of differences in work values, ________ managers placed a high value on the tactful acquisition of influence and on regard for others. French U.S. German Chinese
U.S.
The United Nations has a division dedicated to the education, promotion, facilitation, and advocacy of sustainable practices and environmentally sound concerns called the ________. UNIFEM UNODC UNRWA UNEP
UNEP
________ is the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. Masculinity versus femininity Individualism versus collectivism Uncertainty avoidance Power distance
Uncertainty avoidance
Which of the following is critical to doing business in India? Communicating in local languages Understanding Indian values and beliefs Shaking hands while greeting Adopting local dress codes
Understanding Indian values and beliefs
In the context of human rights, which of the following best reflects a glass ceiling effect? Reduction of child labor Sexual harassment at workplace Standardized compensation packages Unequal managerial opportunities
Unequal managerial opportunities
________ are basic convictions that people have regarding what is right and wrong, good and bad, and important or unimportant. Edicts Tenets Values Norms
Values
The ________ is the global organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies. WIPO WTO NAFTA ITO
WTO
In the context of technological advancements, outsourcing, and offshoring, identify a way in which the new technological environment impacts multinational corporations and societies as a whole. Elimination of higher-priced labor Price rise due to cost of equipment Replacement of employees by machines A decline in the cost of doing business worldwide
a decline in the cost of doing business worldwide
The challenge for the future of the European Union is to: absorb its eastern neighbors. have common custom duties. have unified industrial and commercial policies. be able to manufacture high-quality, low-cost goods.
absorb its eastern neighbors
As firms begin exporting to foreign clients and become what Adler calls "international corporations," they must: adapt their approach but not their products to those of the local market. adapt their approach and products to those of the local market. increase the standardization of products and services. adapt their products but not their approach to those of the local market.
adapt their approach and products to those of the local market
In the context of the trends in technology, communication, and innovation, the creation of a digital framework: made the microprocessor obsolete. required satellites for all forms of communication. made business communication vastly more expensive. allowed high-power computer performance at low cost.
allowed high-power computer performance at low cost
Unlike a market economy, a command economy is characterized by: an ignorance of demographic information by management. private ownership of businesses. an appropriate response to consumers' stated needs and desires. insufficient security provided by government subsidies.
an ignorance of demographic information by management
In the context of the shifting balance of economic power in the global economy, which of the following factors has helped boost incomes and wealth in the African continent between 2000 and 2015? An easy immigration process for workers An increase in the price of agricultural products A one-child policy An increase in the size of the elderly population
an increase in the price of agricultural products
In the context of globalization and ethical obligations of MNCs, the transfer of the labor force overseas creates: an ideal environment for women to work in. a general ambiance of nondiscriminatory practices. equal employment opportunities for both men and women. an interesting dynamic in the scope of ethics and corporate responsibility.
an interesting dynamic in the scope of ethics and corporate responsibility
A(n) ________ culture accords status based on age, gender, or social connections. diffuse achievement ascription specific
ascription
Kirkman and colleagues discovered that, to build trust among virtual team members, managers should: build a shared mythology. encourage lapses in unilateral priority shifts. keep the door open except when on private calls. avoid long lags in responding.
avoid long lags in responding
According to most scholars of culture, culture is: inherited or biologically based. specific to single individuals. based on the genetically driven adaptive process of animals. based on the human capacity to symbolize.
based on the human capacity to symbolilze
In a business context, individualism is synonymous with ________. collectivism totalitarianism capitalism socialism
capitalism
In the context of telecommunications, governments are accepting the belief that the only way to attract foreign investment and know-how in telecommunications is to: cede control to private industry. get cheap and efficient labor. get cheaper service providers. get private partners.
cede control to private industry
In the context of technological advancements, outsourcing, and offshoring, multinational corporations have moved certain production activities overseas to capitalize on ________. cheap labor resources increasing costs larger markets higher purchasing power
cheap labor resources
In the context of integrating the dimensions of culture, which of the following are very useful in depicting what countries appear similar in values and to what extent they differ from other country groupings? Cluster distribution Use of pie charts Normal distribution Use of concentric circles
cluster distribution
In the context of technological advancements, outsourcing, and offshoring, low-paid workers in India and Asian countries now are being given subcontracted work such as ________. code-writing jobs insurance jobs auto industry jobs labor-intensive hardware development jobs
code-writing jobs
The ________ specifies the distribution of rights and responsibilities among different participants in a corporation and spells out the rules and procedures for making decisions on corporate affairs. Rainforest Action Network nongovernmental organizations Foreign Corrupt Practices Act corporate governance structure
corporate governance structure
Many foreign governments applauded the investigations under the Foreign Corrupt Practices Act (FCPA) because it helped them: restrict the courts from fining and not imprisoning corrupt parties. reduce internal political problems for U.S. allies. reduce the risks associated with the derivatives activities of banks. crack down on corruption in their own country.
crack down on corruption in their own country
Rules that dictate the dos and don'ts of employee behavior relating to areas such as productivity, customer relations, and intergroup cooperation are characteristics associated with an organization's ________. culture structure ambience ethics
culture
A(n) ________ culture is one in which both public and private space are similar in size and individuals guard their public space carefully because entry into public space affords entry into private space as well. neutral emotional diffuse specific
diffuse
According to some critics, agreements like North American Free Trade Agreement (NAFTA) and Central American Free Trade Agreement (CAFTA): have been successful in ensuring environmental standards. do not go far enough in protecting property rights. have been successful in preventing the decline of the global working-age population. do not go far enough in ensuring worker rights.
do not go far enough in ensuring worker rights
The area of e-business that will most affect global customers is ________. e-marketing e-retailing and financial services retailing internet sales
e-retailing and financial services
An important dimension of Chinese culture is guanxi, which means ________.
good connections
In the context of socialism, Karl Marx believed that:
governments should own businesses
Which of the following is a characteristic of the Japanese culture? Group orientation Nonconformance to hierarchic position Balance between a group and a personal orientation Merit-based reward
group orientation
When ________ occurs, group participants believe that their ideas and actions are correct and that those who disagree with them are either uninformed or deliberately trying to sabotage their efforts. group reverse vigilance group cognitive inertia groupthink static decision making
groupthink
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. 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. the main winners of globalization are the low-wage workers.
growing trade deficits and slow wage growth are damaging economies
The most important dimension of the technological environment facing international management today is ________. improved service technologies transportation agricultural mechanization telecommunications
improved service technologies
According to Dutch researcher, Fons Trompenaars, it is important to play hardball, test the resilience of the opponent, win some objectives, and always lose from time to time when dealing with those from cultures that believe: in compromising. in dominating the environment. in caring for others. in letting things take their natural course.
in dominating the environment
Since the passage of the Foreign Corrupt Practices Act (FCPA), investigations reveal that: U.S. exports to "bribe prone" countries decreased significantly. individual executives started getting increasingly targeted apart from corporations. the act allowed the courts to fine but not imprison guilty parties. the act was unsuccessful in removing bribes as a key competitive tool from the Middle East.
individual executives started getting increasingly targeted apart from corportations
When compared with domestic law, international law is less coherent because: its sources embody only the treaties and conventions of individual countries concerned with any dispute. it is derived from the Marxist socialist system and is highly influenced by the regulations prevalent in former communist countries. it contains unwritten understandings that arise from repeated interactions among nations. its sources embody only the laws of individual countries concerned with disputes.
it contains unwritten understandings that arise from repeated interactions among nations
Identify a correct statement about cellular infrastructure. It cannot be installed easily and cost-efficiently in rural areas. It is expensive to install. It is quick and relatively inexpensive to install. It is relatively inexpensive to install but takes time.
it is quick and relatively inexpensive to install
According to the principles of the global compact, the elimination of discrimination with respect to employment and occupation falls under the category of ________. human rights environment anticorruption labor
labor
According to the principles of the global compact, the principle "Freedom of association and the effective recognition of the right to collective bargaining" applies to ________. environment anticorruption labor human rights
labor
Nations that are collectivist in their approach tend to be characterized by: large power distance and low individualism. low power distance and high individualism. large power distance and weak uncertainty avoidance. small power distance and weak uncertainty avoidance.
large power distance and low individualism
In the context of bureaucratization, Japanese businesses are becoming aware of the fact that: local consumers are paying a heavy price due to the bureaucratic red tape. government bureaucracy has created a true sense of security. they are heavily dependent on their local market for maximum number of goods and services. they are well prepared to face the harsh competitive realities of the international marketplace.
local consumers are paying a heavy price due to the bureaucratic red tape
According to a study by Ronald Lessen and Fred Neubauer, unlike Spanish negotiators, French negotiators: employ persuasion through emotional appeal. look for a meeting of minds. develop trust on the basis of frequent and warm interpersonal contact and transaction. give importance to social competence.
look for a meeting of minds
The United States has a ________. high-context culture variable-context culture low-context culture moderate-context culture
low-context culture
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 is referred to as ________. a keiretsu a maquiladora a governmental agency a vertically integrated corporation
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 socialist economy market economy
market economy
According to Hofstede, countries with a high ________ encourage individuals to be independent decision makers and to define achievement in terms of recognition and wealth. uncertainty avoidance power distance individualism score masculinity index
masculinity index
Hofstede's ________ dimension looked at the relationship between gender and work roles. power distance individualism versus collectivism masculinity versus femininity uncertainty avoidance
masculinity versus femininity
Dutch researcher, Fons Trompenaars, recommends that when people from specific cultures do business in diffuse cultures, they should ________. try to get to the point and be efficient learn to structure meetings with the judicious use of agendas not get impatient when people are being indirect or circuitous not acknowledge achievements or skills that are irrelevant to the issues being discussed
not get impatient when people are being indirect or circuitous
Agreements like NAFTA and CAFTA: 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. provide firms with enough security so they cannot go out of business, which simply encourages a lack of efficiency or incentive to monitor costs. not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights. 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 legal and business reforms in developing nations to protect property rights
Societal collectivism refers to the degree to which: organizational and societal institutional practices encourage and reward collective distribution of resources and collective action. individuals in organizations or societies encourage and reward individuals for being fair. individuals express pride, loyalty, and cohesiveness in their organizations or families. individuals in organizations or societies are confrontational.
organizational and societal institutional practices encourage and reward collective distribution of resources and collective action
In the context of corporate governance, the U.K. and U.S. systems have been termed ________ systems because of dispersed ownership of corporate equity among a large number of external investors. outsider cascade insider ethical
outsider
The subcontracting or contracting out of activities to external organizations that had previously been performed by a firm is called ________. insourcing outsourcing offshoring homesourcing
outsourcing
In the context of corporate governance, in an insider system, such as that in many continental European countries, ________. institutions have limited direct control institutional investor ownership is predominant corporate equity is largely dispersed among outside stakeholders ownership tends to be much more concentrated
ownership tends to be much more concentrated
In an attempt to achieve its secondary goal of inspiring sustainability across the entire automobile industry, Tesla ________. partnered with Mercedes to provide power train components for its electric models introduced a full-size SUV, named the Model X, as the latest addition to its fleet in late 2015 designed a high-performance sports car that could accelerate from zero to 60 in less than four seconds partnered with Toyota to design luxury sedans for the masses
partnered with Mercedes to provide power train components for its electric models
Adopters of individualism adhere to the philosophy that: communism in its extreme form is realized through violent revolution. people should be free to pursue economic and political endeavors without constraint. government interest should solely influence individual behavior. the needs and goals of society at large are more important compared to individual desires.
people should be free to pursue economic and political endeavors without constraint
An achievement culture is one in which people are accorded status based on their ________. gender age social connections performance
performance
Unlike the organizational culture in the United States, in the family culture, appointments to a high-level, sensitive position are most likely to be based on ________. technicality personal relationships personal accomplishments creativity
personal relationships
Firms with a(n) ________ predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates. regiocentric polycentric ethnocentric geocentric
polycentric
Countries in which people blindly obey the orders of their superiors have a high ________. power distance individualism index uncertainty avoidance masculinity index
power distance
U.S. laws require equality in the workplace for all employees. U.S. citizens who take a job in Germany cannot sue their German employer under the provisions of U.S. law for failure to provide equal opportunity for them. This exemplifies the: doctrine of comity. act of state doctrine. principle of sovereignty. nationality principle.
principle of sovereignty
A method that adjusts GDP to account for different prices in countries is called: purchasing power parity. nominal GDP. current currency exchange rate. cumulative distribution function.
purchasing power parity
Dutch researcher, Fons Trompenaars, recommends that when individuals from achievement cultures do business in ascription cultures, they should: make sure that their group has knowledgeable people who can impress the other side. respect the status and influence of their counterparts in the other group. make sure that their group has sufficient data to convince the other group that they are proficient. respect the knowledge and information of their counterparts on the other team.
respect the status and influence of their counterparts in the other group
According to a study by the Diagnosing Organizational Culture for Strategic Application (DOCSA) group published in 1995, unlike Americans, Europeans: were seen as having a slight identification with their own organization. were perceived as being very open in their communications. saw themselves as somewhat pragmatic in their conduct. were viewed as preferring very loose control.
saw themselves as someone pragmatic in their conduct
When examining the effects of the U.S. environment on the cultural values of Japanese managers working for Japanese firms in the United States, researchers found that these managers: did not believe that job security was important. did not support the organizational values of group orientation and cooperation. perceived obedience and conformity to be very important. supported the concept of formal authority.
supported the concept of formal authority
Development that meets humanity's needs without harming future generations is termed ________. governance sustainability social responsibility corporate responsibility
sustainability
A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in China should ________. tap large pool of labor cities and be prepared that lax labor laws may become more stringent be prepared for high wages and short workweek and expect high productivity from unionized workers understand changing Chinese labor law and prepare for increasing unionization of labor treat unions as partners and allow time for negotiations
tap large pool of labor cities and be prepared that lax labor laws may become more stringent
Experienced travelers report that the primary criterion for doing business in China is ________. hard currency technical competence a persuasive top management savvy marketing
technical competence
A widely held belief that has not been found to be accurate is that organizational culture: tends to be affected by national culture. tends to erase the impact of national culture. cannot easily change the cultural values employees bring to the workplace. is different in different subsidiaries.
tends to erase the impact of national culture
U.S. firms maintain particularly dominant global positions in all of the following industries except: textiles. biotechnology. telecommunications. media.
textiles
U.S. multinational corporations always assumed that bribes were required to ensure contracts in ________. India Asia Pacific Eastern Europe the Middle East
the Middle East
Norms of an organization are reflected by: the way participants feel about the way they are treated by higher-level management. the amount of work to be done. the way employees and customers are treated. the rituals, common language, and terminology used.
the amount of work to be done
The three completed GLOBE phases explore the various elements of the dynamic relationship between ________ and ________. time; the environment political; economic systems physical; psychological well-being the culture; organizational behavior
the culture; organizational behavior
Dutch researcher, Fons Trompenaars's discussion of the dimension of ________ explores whether people believe in controlling outcomes (inner-directed) or letting things take their own course (outer-directed). ascription masculinity the environment time
the environment
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 decision-making processes of private firms. The command economy of this region allows competition to strive while the government can extend assistance to individuals or companies. The command economy of this region allows for high flexibility with decisions and low barriers for other countries to establish business.
the free-market-based economy of this region allows considerable freedom in decision-making processes of private firms
There are three aspects of organizational functioning that seem to be especially important in determining an MNC's organizational culture. They are: the general relationship between the employees and their organization; the hierarchical system of authority that defines the roles of managers and subordinates; and the general views that employees hold about the MNC's purpose, destiny, goals, and their places in them. the general views that employees hold about the MNC's purpose, destiny, goals, and their places in them; the age of the organization; and the degree of cultural diversity among the members of the organization. the degree of cultural diversity among the members of the organization, the age of the organization, and the strength of the organization's leadership. the general relationship between the managers and the rank-and-file employees in the organization, the degree of cultural diversity among the members of the organization, and the hierarchical system of authority that defines the roles of managers and subordinates.
the general relationship between the employees and their organization; the hierarchical system of authority that defines the roles of managers and subordinates; and the general views that employees hold about the MNC's purpose, destiny, goals, and their places in them.
A major development in South America is: the growth of intercountry trade, spurred on by the progress toward free-market policies. the elimination of all trade barriers among member countries. the implementation of a single currency and a regional central bank. the privatization of traditionally nationalized industries.
the growth of intercountry trade, spurred on by the progress toward free-market policies
Keith, a manager in the country of Bodonia, violates a Bodonian law while traveling abroad. He can still be found guilty in Bodonia. This scenario exemplifies ________. Islamic law socialist law the nationality principle the principle of sovereignty
the nationality principle
A firm in the country of Batangonia that sells secret government blueprints of the country of Cambrialand for a satellite system can be subjected to the Cambrialand laws. This scenario exemplifies ________. the nationality principle Islamic law socialist law the protective principle
the protective principle
In the context of the four foundations on which laws are based around the world, Islamic law is derived from: the Marxist socialist system. Roman law. the teachings of the Prophet Muhammad. the ideologies of the Greek philosopher Prophet Farooq.
the teachings of the Prophet Muhammad
A firm based in the country of Iskoolbia that sells a defective hair dryer in the country of Octavia can be sued under Octavian law even though the company is headquartered outside Octavia. This scenario exemplifies ________. the nationality principle Islamic law socialist law the territoriality principle
the territoriality principle
The Environmental Kuznets Curve (EKC) has an inverted U-shape partly because: the emission of wastes decreases with income at relatively low levels of income. working conditions are regularized at relatively low levels of income. compensation packages are standardized at relatively high levels of income. the use of natural resources increases with income at relatively low levels of income.
the use of natural resources increases with income at relatively low levels of income
In the context of human rights, one violation of human rights that resonated with MNCs and made them question whether to move operations into China was: the open discrimination against women in China since 1979. the dramatic increase in the use of death penalty in China. the violent June 1989 crackdown on student protesters in Beijing's Tiananmen Square. the imposition of restrictions on religious practices by foreigners in China in January 1994.
the violent June 1989 crackdown on student protesters in Beijing's Tiananmen Square
Organizational climate is reflected by: high product and service quality. the degree of cooperation between management and employees. the way employees interact with each other. common language, terminology, and rituals.
the way employees interact with each other
Social sustainability for the company Patagonia includes: third-party audits of factories that provide nonbiased assessments of the factories. permission to use formaldehyde in the manufacture of its clothing. the discretion of each factory to determine the percentage of each product that is recyclable. modification of its supply chain from an environmental viewpoint, leaving corporate social responsibility solely in the hands of each supplier.
third-party audits of factories that provide nonbiased assessments of the factories
A group in which all members but one have the same background is referred to as a ________. bicultural group homogeneous group multicultural group token group
token group
A team of employees looks into the benefits and shortcomings of setting up operations in the country of Bodonia. This team consists of a group of retailers from the country of Denebland and an attorney from the country of Altair. This team of employees exemplifies a ________. multicultural group homogeneous group bicultural group token group
token group
Political repression and denial of rights and civil liberties are dominant ideals of ________. totalitarianism collectivism a monarchy a socialist democracy
totalitarianism
Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.
true
Cultures with low ________ have people who are more willing to accept that risks are associated with the unknown and that life must go on in spite of this. uncertainty avoidance power distance masculinity index individualism
uncertainty avoidance
In his early research, Dutch researcher, Fons Trompenaars, found that in countries such as the United States, Australia, Germany, Sweden and the United Kingdom, there was high ________. universalism communitarianism particularism individualism
universalism
A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Mexico should ________. use expatriates sparingly and recruit home country nationals at U.S. colleges obtain skilled labor from government subsidized apprenticeship program encourage use of sophisticated selection procedures based on recent public policy shifts prepare for a long process; ensure that your firm is "here to stay"; and develop trusting relationship with recruits
use expatriates sparingly and recruit home country nationals at U.S. colleges
In the context of human resource management (HRM) practices, unlike Americans, Japanese ________. hire people based on what they can do for a firm in the short run view unions in an adversarial manner use group performance appraisal tend to favor specialized training
use group performance appraisals
A partially completed contingency matrix for international human resource management for compensation shows that firms doing business in China should ________. use technical training as reward, recognize egalitarian values, and use "more work more pay" with caution consider all aspects of labor costs use recognition and praise as motivator and avoid pay for performance note high labor costs for manufacturing
use technical training as a reward, recognize egalitarian values, and use "more work more pay" with caution
After becoming part of the North American Free Trade Agreement (NAFTA) in 1994, Mexico: was able to take advantage of the U.S. market. experienced a significant increase in labor costs. experienced a tremendous increase in transportation costs. exhibited significant economic stability.
was able to take advantage of the U.S. market
"Crony capitalism" describes business practices in countries with ________. limited government interference weak corporate governance well-developed legal and institutional protections market-oriented economic systems
weak corporate governance