IB 300

The three largest markets for American exports of goods in 2017 were Canada, Mexico, and China. Japan, Mexico, and the United Kingdom. Japan, the United Kingdom, and China. Canada, Japan, and the United Kingdom.

Canada, Mexico, and China.

Which country currently exports the most to the United States? China Canada Mexico India

China

An informal cognitive institution is a collection of shared ideas that define reality. an approach to exploring ideas, such as Aristotelian dialogue. a way to approach thinking challenges, such as brainstorming or tree diagrams. a culturally determined way of thinking, such as inductive.

a collection of shared ideas that define reality.

Mercantilists believed that a nation should have an export surplus in order to accumulate precious metals. a nation should produce goods for which there is a comparative advantage. governments should lower import duties. merchants should import goods to raise the level of living.

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

Some countries impose both an ad valorem duty and a specific duty on a single import. What type of duty are these countries using? elite secondary duplex compound

compound

Since 1983, the proportion of world trade coming from the United States has decreased overall increased by 20 percent tripled not changed.

decreased overall

Which of the elements in Porter's diamond model of national advantage takes into consideration the sophistication of a company's customers? export conditions demand conditions factor conditions export conditions government

demand conditions

A nation that is struggling to remain competitive in the world market may decide to reduce the value of the country's currency relative to other currencies. This process is called currency devaluation. deficit. surplus.

devaluation.

A major portion of the exports from developing countries go to ________ countries, and this proportion has been ________. developed; increasing developed; decreasing developing; increasing developing; decreasing

developed; decreasing

The first principle of the WTO's five basic principles is trade without economic reform competition negotiation discrimination

discrimination

The purpose of the International Financial Corporation (IFC) is to invest in companies and financial institutions in developing countries to build infrastructure. trade agreements. domestic capital markets domestic logistics.

domestic capital markets

Tariffs often are set to decrease consumer costs. stimulate imports. encourage local input. decrease the import costs.

encourage local input.

A government nationalizes a firm when it shifts the ownership from public to private. true false

false

Economic cooperation often begins with a common market as in the case of the EU. true false

false

In high-context cultures, nonverbal language plays a minor role. Business professionals rely more on the spoken word. true false

false

Leadership traits may vary some by culture, but underneath, they all build on the basic idea that all people want to be led and directed. true false

false

The World Bank is made up of one large institution, the International Development Association, and three smaller institutions. true false

false

The dynamic capability theory states that for a firm to invest overseas, it must have three kinds of advantages: ownership specific, internalization, and location specific. true false

false

There are three main classes of social institutions, based on the conditions of their formation: family, kinship, and free association. true false

false

When people are kidnapped for ransom, all governments agree that the right response is to pay the ransom, get the hostages released, and then retaliate. true false

false

In a low power distance culture, first names are likely to be used in the office because the ideal is equality relatives will be welcomed into the workforce. seniority, rank, and title are important. people will want direction, so top-down leadership styles are appropriate.

first names are likely to be used in the office because the ideal is equality

Among the cybercrimes that most often target businesses are prospecting and phishing. hacking and data espionage check kiting. accessing unauthorized accounts.

hacking and data espionage

Examples of expropriation without compensation involve the following governments the United Kingdom with the Falklands. China with Hong Kong and Japan with the Kuril Islands Canada with northern Maine. the Unite States confiscated Iranian property in the United States and Cuba confiscated property during the Cuban revolution of the 1950s, and Zimbabwe confiscated land owned by white Zimbabwean citizens.

he Unite States confiscated Iranian property in the United States and Cuba confiscated property during the Cuban revolution of the 1950s, and Zimbabwe confiscated land owned by white Zimbabwean citizens.

Unlike quotas, voluntary export restraints (VERs) are imposed by the importing company. either the importing or exporting country's government. the exporting country's government. the importing country's government.

he exporting country's government.

A business would obtain KRE insurance to cover losses associated with manufacturing operations that do not meet host country standards. kidnapping situations associated with a foreign involvement. higher tariffs when exporting to developing countries. unpredictable international real estate investments

kidnapping situations associated with a foreign involvement.

Material culture includes manufactured goods the services associated with marketable goods. objects of which the culture is proud. You Answered produced goods that affect the symbolism of a culture.

manufactured goods

The Bali Package, proposed in 2013, focuses in part on market access for goods from the least-developed countries infrastructure in developing countries security and technology. subsidies for food supplies

market access for goods from the least-developed countries

A basic cultural concept is our way is not the only way. Each culture has a set of beliefs that work in that culture. power goes to those who take it. Western culture leads others our way is the best way.

our way is not the only way.

Governments provide stability by pursuing open market values. protecting business from unfair competition and from attacks and theft. fostering competition and enforcing nontariff barriers. supporting imports

protecting business from unfair competition and from attacks and theft.

in achievement culture is one in which members are rewarded for what they do, what they have accomplished, so what they are. not rewarded at all because achievement is a doing mentality. rewarded for their lineage. rewarded with social status for who they are in a spiritual sense.

rewarded for what they do, what they have accomplished, so what they are.

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

rude

An argument against using sanctions to punish an offending nation is that sanctions are not condoned by the U.N. sanctions decrease the cost of doing business. sanctions seldom achieve their goal of forcing change in the offending country sanctions are relatively harmful to the citizens of the offending co

sanctions seldom achieve their goal of forcing change in the offending country

Some nontariff barriers are difficult to discourage because they build on nationalism and patriotism they consist of government subsidies and standards. their development has been supported by local politicians they are established by consumers

they consist of government subsidies and standards.

When the value of imports into a nation exceeds the value of its exports, that nation is experiencing a(n) trade deficit competitive advantage. fixed market. economy of scale.

trade deficit

According to the theory of comparative advantage, international trade can still be a positive-sum game that benefits both countries having an absolute advantage over one another. true false

true

International institutions provide nations the opportunity to build multilateral solutions through collaborative communication. true false

true

New institutional theory suggests that institutions be understood as collections of rules and codes of conduct that limit behavior. true false

true

One of the significant differences between formal and informal institutions is how they gain compliance. true false

true

Policy continuity and government stability are more important to a business than the type of political system. True False

true

The United Nations operates with voluntary agreements, so it is essentially an informal institution true false

true

Understanding how religion affects cultural attitudes is important for marketing professionals to know. true false

true

Unfair international competition for a company can be minimized through the enaction of national laws. true false

true

One of the problems associated with the "cheap foreign labor" argument for restricting trade is that foreign competition will achieve an unfair advantage. the national defense must be kept at maximum levels inflicting economic damage might have reverse affects. wages don't account for all production costs.

wages don't account for all production costs.

Does the IMF lend money? yes, but as a last resort no, that is left up to the World Bank yes, on a regular basis yes, with few conditions

yes, but as a last resort

What is the role of the home country in risk assessment? Country risk does not involve political considerations at all. It is a significant consideration It has no role. What matters is the country in which the business is conducted It is used initially, but then more micro issues become the focus of CRA.

It is a significant consideration

Which statement describes economies of scale? They are the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases. They refer to the rising scale on which efficiency improves as a result of cumulative experience and learning. They are only relevant to manufacturing industries. They occur due to the presence of abundance resource endowments within a nation.

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

How do the dimensions of Kluckhohn and Strodtbeck's framework help us to better understand other cultures? They help us to further understand beliefs and actions in other cultures. Kluckhohn and Strodtbeck extend Hall's framework. It is theoretical rather than empirical. They help us decode evil. They present choices that cultural members make when they act. They are meant to help us decode kinship patterns.

They help us to further understand beliefs and actions in other cultures.

Mexico and Canada are major U.S. trading partners because they have the benefit of lower freight charges and shorter delivery times. Why do these benefits exist for these two nations? They share a border with the United States. They established these parameters in the NAFTA agreement. They source production materials from China. They have established economies of scale for goods and service

They share a border with the United States.

The WTO has made progress on trade-related intellectual property rights (TRIPS). An example of this progress is an agreement that property rights should not take precedence over public health a shared recognition that private property is a basic human right. an agreement that copyrights are inviolate an agreement that governments should hold all pharmaceutical trade secrets.

an agreement that property rights should not take precedence over public health

Aesthetics is an area of philosophy that deals with beauty. A culture's aesthetics deal with the sense of beauty found in the culture. a measurement used in the Middle East, similar to a hectare an area of psychology that deals with truth. the area of medicine concerned with hygiene

an area of philosophy that deals with beauty.

Culture frameworks are helpful, but their use may oversimplify and limit our understanding and learning after a point. Culture frameworks are a sophisticated form of stereotyping, so they must be used with care and awareness that don't explain the whole picture, but only suggest likelihoods. give too much emphasis on culture. result in too much empathy for a different culture. lead to further frameworks and further complication.

oversimplify and limit our understanding and learning after a point.

Trompenaars's specific-diffuse dimension has to do with patterns for public and private life. social patterns for child-rearing. regard for the individual or the collective. whether rules or relationships regulate behaviors.

patterns for public and private life.

A market situation in which there is a sufficiently large number of well-informed buyers and sellers of a homogeneous product such that no individual participant has enough power to determine the price of the product, resulting in a marketplace that is efficient in production and allocation of products is known as perfect competition. absolute advantage. mercantilism. trade deficit.

perfect competition.

A manager from a U.S. company is negotiating with a Japanese company for goods. What is most likely to be the American's most important criteria in the purchasing decision? the follow-up price logistics the relationship

price

The EU's impact on international business is not significant, because the EU members need to trade with other developed economies. significant, since EU standards, especially in the areas of the environment and sustainability, impact any firm that wants to do business in the EU. negligible, given that the EU members tend to trade with each other significant, because the EU is a major exporter into developing nations

significant, since EU standards, especially in the areas of the environment and sustainability, impact any firm that wants to do business in the EU.

What is one of the reasons suggested by Alfred Marshall for why firms tend to cluster together on a geographic basis? Technological information can be readily shared. Competition will not enter the market. Efficiency improves as the result of cumulative experience. Production costs decline as facilities get larger.

technological information can be readily shared.

Referring to Hall's high- and low-context framework, in a high-context culture the context carries much of the communication communication is explicit communication is direct and focused on the topic. the context is irrelevant.

the context carries much of the communication

Hofstede's individualism-collectivism measures the degree to which people in the culture are integrated into groups. the tendency to differentiate male roles. the degree to which social inequality is tolerated. the amount of social distance between relatives

the degree to which people in the culture are integrated into groups.

International Development Association's purpose is to loan to developing nations needing capital developed nations for use in trade stimulus efforts. the poorest nations. any nation with collateral

the poorest nations