International Business Chapter Midterm
Which of the following has enabled globalization of markets?
Falling barriers to cross border trade.
A current trend in international business is the decline of medium-sized and small multinationals known as mini-multinationals.
False
A multinational enterprise (MNE) is any business that exports or imports products from other countries.
False
A nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries.
False
According to supporters of free trade, as countries get richer they commit greater violation of environmental and labor regulations.
False
Contracts under a civil law system tend to be very detailed with all contingencies spelled out.
False
Critics of globalization suggest that over the last century, the gap between the rich and poor nations of the world has shrunken.
False
Globalization of markets has resulted in greater differentiation of consumer tastes and preferences.
False
In a totalitarian country, there are safeguards to protect an individual's right to freedom of expression, opinion, and organization.
False
Judges under a civil system have more flexibility than those under a common law system.
False
Outsourcing is a process that is limited to manufacturing enterprises.
False
Patents discourage companies from committing themselves to extensive basic research.
False
Product liability can be much lower if a product does not conform to required safety standards.
False
Product liability sets certain safety standards to which a product must adhere.
False
Recent evidence indicated that the solution to the problem of stagnant incomes among the unskilled is to be found in increasing government regulation of markets.
False
The Foreign Corrupt Practices Act does not allow for grease payments.
False
The Uruguay Round, finalized in December 1993, reduced protection for patents, trademarks, and copyrights.
False
The World Bank has focused on policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties.
False
The World Bank is known as the lender of the last resort.
False
The central message of collectivism is that individual economic and political freedoms are the ground ruler on which a society should be based.
False
The expansion of world trade implies that nations are becoming less dependent on each other for important goods and services.
False
The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding their home markets protected from foreign competitors.
False
The globalization of the world economy has resulted in a relative increase in the dominance of U.S. firms in the global marketplace.
False
The most global markets currently are markets for consumer products.
False
The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.
False
The two dimensions, according to which the political systems can be assessed collectivism-individualism and democratic-totalitarian are independent of each other.
False
World Bank gives an aid of 100 million dollars to Kenya for creating rural health care facilities. This is an example of foreign direct investment.
False
Which of the following is a risk associated with globalization?
Global financial contagion
Which of the following is a feature of democracy?
Governance by people or elected representatives.
A multinational enterprise (MNE) is a firm that _______.
Has production units in more than two countries.
There are three values central to the Confucian system of ethics that have very important economic implications. Which of the following is one of these?
Honesty in dealing with others
Which of the following is a consequence of globalization?
Increasing outsourcing of services
The tenet of _______ is that the welfare of society is best served by letting people pursue their own economic self-interest.
Individualism
________ occurs when a firm exports goods or services to consumers in another country.
International trade
Totalitarianism:
Is a form of government in which one person or political party exercises absolute control over all spheres of human life
Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers:
Is due to technological changes that create greater demand for skilled workers.
Which of the following is true about the International Monetary Fund?
It is seen as the lender of last resort to nation-states whose economies are in turmoil
Globalization of markets results in markets becoming:
Less diverse
According to Geert Hofstede's study, which of the following cultural dimensions would be characterized by a greater readiness to take risks and less emotional resistance to change?
Low uncertainty avoidance
The World Trade Organization promotes ________
Lowering of barriers to cross-border trade and investment
Early outsourcing efforts were primarily confined to:
Manufacturing activities
An economy in which the interaction of supply and demand determines the quantity in which goods and services are produced is called a _________.
Market Economy
Which of the following sociologists made a connection between Protestant ethics and "the spirit of capitalism"?
Max Weber
In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.
Mixed
Which of the following factors hinders globalization of consumer goods market?
National differences in tastes and preferences
Which of the following is NOT a consequence of the reduction in trade barriers and restrictions on FDI since 1950?
Nations are becoming more independent of each other for important goods and services
An international business, unlike a multinational enterprise, _________.
Need not invest directly in operations in other countries
Antitrust laws in the United States are designed to:
Outlaw monopolies
A U.S. Investment firm, Fin-Smart, set up a customer service call center in India to take advantage of the lower labor costs. This is called:
Outsourcing
A _______ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention.
Patent
The General Agreement on Tariffs and Trade (GATT) was responsible for:
Policing the global marketplace
Interdependent political, economic, and legal systems of a country make up its:
Political economy
Which of the following areas of international trade is regulated by the Foreign Corrupt Practices Act?
Preventing bribery and unethical acts in the conduct of international business.
In Russia in the chaotic period following the collapse of communism, an outdated legal system, coupled with a weak police force and judicial system, allowed the Russian Mafia to demand "protection money" from business owners. Any business owner who rebelled had to face violent retribution. This violation of property rights exemplifies ________.
Private action
In several Western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to _________.
Privatization
Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by globalizing their markets. This involves:
Privatizing state-owned enterprises
In a pure market economy:
Production is determined by the interaction of supply and demand
Violation of property rights done through legal mechanisms such as levying excessive taxation and requiring expensive licenses or permits from property holders is called ________.
Public action
Which of the following is NOT an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?
Reduced tariffs on imports of manufactured goods
Which system of government generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism?
Right-wing Totalitarianism
Globalization is criticized because it increased the power of ________.
Supranational organizations over nation-states
which of the following is correct
The economic principles of Islam prohibit the payment or receipt of interest
The relative decline of the United States in the share of world output and world exports reflects _________.
The growth in the economic development of the world economy
Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects:
The increasing internationalization of business corporations
A civil law system tends to be less adversarial than a common law system, since ________.
The judges' decisions are based on detailed legal codes
Which of the following statements is true about the murabaha contract?
The murabaha contract is widely used among the world's Islamic banks because it is the easiest to implement
_________ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles.
Theocratic totalitarianism
Which of these statements pertaining to cross-borer FDI flows is true?
There was a growth of FDI between 2004 and 2007
Which of the following statements about the legal systems of countries is NOT true?
They are almost the same for all countries
A company does not need a large size to facilitate, and benefit from the globalization of markets.
True
A theocratic law system is one in which the law is based on religious teachings.
True
According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950.
True
According to critics of globalization, today's interdependent global economy limits a nation's national sovereignty.
True
Companies hope to lower their overall cost structure or improve the quality or functionality of their product offering through globalization.
True
Guanxi is an important mechanism for building long-term business relationships and getting business done in China
True
In a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.
True
In an individualist society, the welfare of society is best served by letting people pursue their own economic self-interest.
True
In mixed economies, governments also tend to take into state ownership troubled firms whose continued operations is thought to be vital to national interests.
True
In practical terms, individualism translates into an advocacy for democratic political systems and market economics.
True
In the 1970s, the United States passed the Foreign Corrupt Practices Act which requires all publicly traded companies, whether or not they are involved in international trade, to keep detailed records that would reveal whether a violation of the act has occurred.
True
It is possible to have a democratic political system that emphasizes a mix of collectivism and individualism.
True
Judges in a common law system have the power to interpret the law so that it applies to the unique circumstances of an individual case.
True
Many of the world's larger trading nations, including Japan and the United Kingdom, have not ratified the United Nations Convention on Contracts for the International Sale of Goods (CIGS)
True
Modern socialists trace their intellectual roots to Karl Marx (1818-1883), although socialist thought clearly predated Marx.
True
Most modern democratic states practice representative democracy.
True
One of the UN's central mandates is the promotion of higher standard of living, full employment, and conditions of economic and social progress and development.
True
Patents, copyrights, and trademarks establish ownership rights over intellectual property.
True
Property rights can be violated in two ways - through private action and through public action.
True
Property rights refer to the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource.
True
Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China to take advantage of the lower labor costs there. This is an example of foreign direct investment.
True
The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market.
True
The number of command economies has fallen dramatically since the demise of communism in the late 1980s.
True
The parties to an agreement normally resort to contract law when one party feels the other has violated either the letter or the spirit of an agreement.
True
The shift toward a more integrated and interdependent world economy is referred to as globalization.
True
When collectivism is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."
True
When law courts interpret common law, they do so with regard to tradition, precedent, and custom.
True
Hofstede's results, as might be expected, showed that nations such as _____ scored low on long-term orientation.
US and Canada
The _______ was established on October 24, 1945, by 51 countries committed to preserving peace through international cooperation and collective security.
United Nations
The _____ instrument is designed to address the notion that a leader's effectiveness is contextual. It is embedded in the societal and organizational norms, values, and beliefs of the people being led.
WVS
In the last two decades, Latin American countries like Brazil, Mexico, and Chile have _______.
Welcomed foreign investment
The _______ is primarily responsible for policing the world trade system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states.
World Trade Organization
The _____ is a research project spanning more than 100 countries that explores people's values and norms, how they change over time, and what impact they have in society and business.
World Values Survey
A free market economy in which property rights are protected leads to subsequent economic growth, which often leads to the establishment of: A. a democratic regime. B. a planned economy. C. government owned enterprises. D. a socialist economy.
a
According to Amartya Sen, development should be: A. seen as a process of expanding the real freedoms that people experience. B. seen as a non-political concept that focuses on the net income of a country. C. should be viewed as a purely economic process. D. assessed by material output measures such as GNI per capita.
a
Political scientist Samuel Huntington argues that modernization in non-Western societies can result in a retreat toward the traditional. This is exemplified by ____. A. the Islamic resurgence B. the popularization of modern gadgets C. the adoption of Western culture D. the higher levels of literacy and education
a
Stagnation can occur in planned economies because: A. entrepreneurial individuals have few economic incentives for innovation. B. private ownership of means of production leads to exploitation of workers. C. prices of goods and services are fixed by market forces of demand and supply. D. lack of barriers to trade results in increased competition for domestic producers.
a
Which of the following helps in adjusting GNI such that it accounts for the differences in the cost of living? A. Purchasing power parity (PPP) adjustment B. Human Development Index C. Debt to GNI ratio D. Consumer Price Index
a
_____ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate. A. Deregulation B. Trade certification C. A product law D. A liability law
a
ethical systems are:
a set of moral principles, or values, that are used to guide and shape behavior
For international businesses, the connection between culture and competitive advantage is important because
a strong connection is likely to product the most viable competitors
cross cultural literacy refers to
an understanding of how cultural differences can affect business
A change in political regime in a country can result in laws that _____ to international businesses. A. are more favorable B. are less favorable C. provide less incentives D. provide more incentives
b
A market economy encourages innovation because ____. A. state ownership of enterprises reduces risks of innovation B. economic freedom leads to greater incentives for innovation C. government-owned and funded research centers become hubs of innovation D. the prices of goods and services, including new products, are fixed by government
b
Since the late 1980s, there has been a spread of democracy. This is because ____. A. a state's ability to control access to uncensored information has increased B. the socialist model failed to deliver economic progress to the vast bulk of their populations C. in many countries the middle and working classes have become less powerful D. in many countries state-ownership of firms has encouraged innovation and entrepreneurship
b
The HDI is based on all of the following measures EXCEPT: A. life expectancy at birth. B. political freedom. C. educational attainment. D. whether average incomes are sufficient to meet the basic needs of life.
b
The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n) ____. A. economic risk B. legal risk C. cultural risk D. political risk
b
The sale of state assets through an auction is most likely to lead to ____. A. trade certification B. privatization C. nationalization D. market regulation
b
The state can expropriate the profits from innovation through legal means, such as ____. A. bureaucratic kickbacks B. excessive taxation C. black market transactions D. privatization
b
Which of the following factors is NOT likely to make a country a more attractive location for international business? A. Democratic regimes B. Planned economies C. Strong protection of property rights D. Market-based economic policies
b
Which of the following is a measure that is developed by the United Nations to measure the quality of life in different nations? A. Gross national income B. Human Development Index C. Purchasing power parity D. Gross domestic product
b
Which of the following statements is true about Samuel Huntington? A.Samuel Huntington argues that there is a universal civilization based on widespread acceptance of Western democratic ideals. B.Samuel Huntington argues that the rise of Islamic fundamentalism is a response to the alienation produced by modernization. C.Samuel Huntington argues that global terrorism is a product of the static nature of traditional values and religious systems. D Samuel Huntington argues that many societies, by adopting the material paraphernalia of the modern . world, are becoming more Western.
b
_____ is required for a business environment to be conducive to innovation and entrepreneurial activity. A. State ownership of means of production B. Strong legal protection of property rights C. Barriers to foreign trade and investment D. Government regulation of the market
b
A society's social structure refers to its:
basic social organization
According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship? A. Detailed state planning B. Restricting direct investment by foreign enterprises C. Strong property rights D. Market regulation
c
According to political scientist Samuel Huntington, the rise of Islamic fundamentalism is a response to ____. A. the corruption prevalent in planned economies B. the restricted access to formal education C. the alienation produced by modernization D. the restrictions associated with totalitarian regimes
c
Economic growth appears to be a function of a country's capacity for growth and ___________. A. its previous economic success B. its political environment C. its free market system D. its mixed economy
c
GNI per person figures can be misleading because ____. A. they also include barter agreements B. they provide a dynamic picture of development C. they don't consider differences in the cost of living D. they don't consider exchange rate
c
Google launched Google Plus to gain a foothold in the social media market. However, given that there are numerous social networking platforms and Facebook is already a leader in social media, Google Plus found it challenging to generate brand loyalty and establish itself in the market. This was because of ____. A. incumbent disadvantage B. disintermediation disadvantage C. late-mover disadvantage D. horizontal integration disadvantage
c
In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for ____. This contributed to a wave of democratic revolutions during the late 1980s and early 1990s. A. state ownership of productive resources B. regulated markets C. democratic reforms D. planned economies
c
Many states in Asia, Latin America, and Western Europe have shifted away from a mixed economy to a market-based economy. Which of the following measures is most likely to be promoted by such states? A. State-ownership of enterprises B. Fixing of prices by the government C. Deregulation of the economy D. Lowering competition
c
Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms: A. stop receiving subsidies from the government. B. are completely owned by private individuals. C. are sheltered from foreign competition. D. are allowed to restructure their operations.
c
The benefits of doing business in a country are a function of all of the following EXCEPT: A. the size of the market. B. its present wealth. C. its past growth. D. its future growth prospects.
c
The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until ____. A. they have political stability B. they invest in infrastructural development C. they have better defined and secure property rights D. they have adequate market regulation
c
Which of the following is a characteristic of a command economy? A. Promotion of foreign direct investment B. Allowing prices to be set by the interplay between demand and supply C. Limited international trade D. Restricted state-ownership of means of production
c
Which of the following statement pertaining to innovation and entrepreneurship is NOT true? A. They are the engines of growth. B. They require strong property rights. C. They require state ownership of means of production. D. They require a market economy.
c
Hofstede's dimension of Confucian dynamism
captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors.
Which of the following is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime?
caste system
A condition where people tend to perceive themselves in terms of their class background and this shapes their relationships with members of other classes is known as ____
class consciousness
An upper-middle-class manager tends to have hostile relationship with the working-class employees in the firm because of his tendency to perceive himself as superior to them based on his class background. In this example, the manager exhibits ____
class consciousness
A _____ is a less rigid form of social stratification in which social mobility is possible
class system
The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines ___
culture
which of the following is true regarding culture
culture is not static
The connection between _____ and _____ has important implications for the choice of countries in which to locate production facilities and do business.
culture; competitve advantage
For privatization to work, it must also be accompanied by: A. an increase in trade barriers and tariffs. B. an increase in government subsidies. C. stronger barriers to foreign competition. D. a general deregulation of the economy.
d
In all of the following scenarios, the costs of doing business in a country tend to be greater, EXCEPT where: A. political payoffs are required to gain market access. B. supporting infrastructure is lacking. C. local laws set strict standards with regard to environmental pollution. D. there are limits or caps on damage awards.
d
In some countries, the official GNI per capita measured at PPP data does not reflect the actual total annual income because: A. it doesn't consider differences in the cost of living. B. it gives a static picture of development. C. it fails to include income earned from other countries in the form of dividends. D. large amounts of economic activity may be in the form of barter agreements.
d
Paralleling the spread of democracy, since the 1980s there has been the transformation from: A. free-market economies to socialist economies. B. mixed economies to collectivist economies. C. open economies to closed economies. D. command economies to market-based economies.
d
Sony was a pioneer in the portable music market segment. Sony's Walkman was an innovative product which created a new category altogether and made Sony a technological leader. This gave the company an edge over other consumer electronics brands that introduced portable music players for a very long time. In this example, Sony had the: A. vertical integration advantage. B. purchasing power parity advantage. C. free-rider advantage. D. first-mover advantage.
d
The finance minister of a country considers several large, state-owned iron manufacturing units to be inefficient and a source of corruption. To generate resources for public expenditure and promote economic growth, the government decides to auction an entire iron manufacturing plant to sell it to a strategic investor. This process exemplifies ____. A. nationalization B. industrialization C. liberalization D. privatization
d
The political economy of many of the world's nation-states has changed radically since the late 1980s. All of the following are trends that have been evident EXCEPT: A. a wave of democratic revolutions has swept the world. B. totalitarian governments collapsed and have been replaced by democratically elected governments. C. there has been a strong move away from centrally planned economies toward free market economic models. D. mixed economies are fast replacing market economies.
d
Which of the following is a step in the shift toward a market-based economic system? A. Increasing trade barriers B. Increasing price controls C. Nationalization D. Creation of a legal system to safeguard property rights
d
Which of the following is an example of deregulation? A. A country that implements a simplified income tax filing system B. A country that takes over a leading private bank to prevent it from filing for bankruptcy C. A country that provides agricultural subsidies to farmers D. A country that encourages foreign direct investment
d
____, a Nobel Prize-winning economist, has argued that development is not just an economic process, but it is a political one as well. A. Hernando de Soto B. Karl Marx C. Samuel Huntington D. Amartya Sen
d
A major difference between Buddhism and Hinduism is that unlike Hinduism, Buddhism
doesnt support caste system
The emphasis on individualism in the United States results in which of the following advantages?
executives are exposed to different ways of doing business
A market with a large number of consumers, with low living standards will have a relatively large market when measured in economic terms.
f
Countries with free market economies in which property rights are protected tend to achieve lower economic growth rates than command economies where property rights are poorly protected.
f
Deregulation involves prohibiting private enterprises from operating in most sectors of the economy.
f
Economic freedom necessarily equates with political freedom.
f
Economic risks are independent of political risk.
f
GNI allows a more direct comparison of living standards in different countries. True False
f
GNI and PPP data are useful because they provide a dynamic analysis of economic development. True False
f
Gross national income per-capita data take into account differences in the cost of living.
f
In Sen's view, development is an economic process that should be assessed by material output measures such as GNI per capita.
f
In a command economy, the prices are determined by the free interplay of demand and supply.
f
In a planned economy, the means of production are owned by private individuals.
f
Many totalitarian regimes were able to deliver economic progress to the vast bulk of their populations, which curbed the spread of democracy during the late 1980s.
f
Most property in poor countries is owned legally by investors.
f
One visible indicator of political risks tends to be a country's inflation rate.
f
Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.
f
Political scientist Samuel Huntington predicts that there will be a more harmonious world dominated by a universal civilization characterized by democratic regimes and free market capitalism. True False
f
Privatization reduces the incentive of business owners to increase productivity, enter new markets, and to exit losing ones. True False
f
Privatization refers to the process of hiring private management consultancy firms to manage state-owned enterprises. True False
f
Since the late 1980s, there has been a strong move away from a more free market economic model and toward more centrally planned and mixed economies.
f
The government of a country takes over the airport security industries following a major terrorist attack, to improve airport security. This is an example of privatization.
f
Totalitarian states promote human freedom and human development, which facilitates economic progress.
f
A class system is a rigid form of social stratification in which the position a person has by birth cannot be changed through his/her own achievements or luck.
false
An antagonistic relationship between management and labor classes may result in lower costs of production
false
Because of its individualistic mindset, Japanese culture is more supportive of entrepreneurial activities than American culture.
false
Hofstede's concept of power distance focused on the extent to which different cultures socialized their members into tolerating uncertainty
false
Hofstede's study found that in masculine cultures, sex roles were less sharply distinguished, and little differentiation was made between men and women in the same job.
false
In today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist.
false
Like Christianity and Judaism, Islam is a polytheistic religion
false
Norms are abstract ideas about what a group believes to be good, right, and desirable
false
The mudarabah contract is the most widely used Islamic banking method, because it is the easiest to implement
false
The term social strata refers to the extent to which individuals can move out of the strata into which they were born.
false
The value systems and norms of a country are unrelated to the costs of doing business in that country
false
___ are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like
folkways
____ are the routine conventions of everyday life
folkways
A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of ___
folways
Several studies have shown the economic advancement and _____ are important factors in societal change
globalization
A _____ is an association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about each other's behavior.
group
In countries where the value of _____ identification is considered to be primary, managers and workers are discouraged from moving from company to company
group
Which of the following is a consequence of the emphasis on individual performance in many western societies
high degree of managerial mobility
.Hofstede's concept of power distance focused on
how a society deals with the fact that people are unequal in physical and intellectual capabilities
Hindus believe
in reincarnation, or rebirth into a different body, after death
Class-based conflict between workers and management in class-conscious societies can lead to:
increased costs of doing business
The social organization of Western society tends to emphasize on
individual achievement
_____ refers to a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.
indulgence
The protection of the right to private property is embedded within ___
islam
A caste system differs from a class system beycase
it is not possible for an individual to change his or her caste, while a class system allows people to change their class through individual achievement.
Under the mudarabah banking system, when an Islamic bank lends money to a business:
it takes a share in the profits that are derived from the investment
The _____ refers to the extent to which a culture programs its citizens to accept delayed gratification of their material, social, and emotional needs.
long term versus short term orientaion dimension
The concept of mobility between castes within an individual's lifetime:
makes no sense to traditional Hindus
Hofstede's masculinity versus femininity dimension looked at the relationship between gender and work roles and found that in:
masculine cultures, sex roles were sharply differentiated, and traditional "masculine values" determined cultural ideals.
___ include such factors as indictments against theft, adultery, incest, and cannibalism.
mores
Which of the following statements about the use of spoken language is true?
most people prefer to converse in their own language rather than english
Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as ____
norms
culture is___
not static
The _____ dimension of Hofstede's study explores how a society deals with the fact that people are unequal in physical and intellectual capabilities.
power distance
Max Weber was a German sociologist who, in 1904, made the connection between _____ and "the spirit of capitalism.
protestant ethics
Max Weber theorized that there was a relationship between Protestantism and the emergence of modern capitalism because:
protestant ethics emphasize the importance of hard work and wealth creation and frugality
Max Weber coined the term _____ to denote the tendency on the part of Protestants to work hard and accumulate wealth
protestant work ethic
religion may be defined as:
shared beliefs and rituals that are concerned with the realm of the sacred.
Which of the following refers to the extent to which individuals can move out of the strata into which they are born?
social mobility
which of the following statements is true about a class system?
social mobility within a class system varies from society to society
These are typically defined on the basis of characteristics such as family background, occupation, and income.
social strata
A group of people who share a common set of values and norms form a ___
society
Even if a _____ can be characterized as having a single homogeneous culture, often that national culture is a mosaic of subcultures.
society
The term _____ to refer to a group of people sharing a common set of values and norms
society
the term____ also means culture
society
An act, as simple as shaking hands when meeting new people is an example of ___
symbolic behavior
A country's economic system and property rights regime are reasonably good predictors of economic prospects.
t
A well-functioning market economy requires laws protecting private property rights and providing mechanisms for contract enforcement.
t
According to political scientist Samuel Huntington's thesis, global terrorism is a product of the tension between civilizations and the clash of value systems and ideology.
t
Anecdotal comparisons suggest that the assertion that nations that invest more in education will have higher growth rates is true.
t
By identifying and investing early in a potential future economic star, international firms can build brand loyalty and gain experience in that country's business practices.
t
Democracy is one of the consequences of economic growth and progress.
t
First-mover advantages are the advantages that accrue to early entrants into a market.
t
For privatization to work, it must also be accompanied by a more general deregulation and opening of the economy.
t
GNI per capita can be adjusted by purchasing power to account for differences in the cost of living. True False
t
If a country's economy is to sustain long-run economic growth, the business environment must be conducive to innovations and entrepreneurial activity.
t
In mixed economies, in certain sectors the state set prices, owned businesses, limited private enterprise, restricted investment by foreigners, and restricted international trade.
t
It may be more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses.
t
Life expectancy at birth is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.
t
New information and communication technologies have enabled the spread of democratic ideals. True False
t
One of the reasons for the spread of democracy is the emergence of increasingly prosperous middle and working classes who have pushed for democratic reforms.
t
Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation, and entrepreneurial activity in developing nations.
t
Some totalitarian regimes have fostered a market economy and strong property rights protection and have experienced rapid economic growth.
t
Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms continue to receive subsidies from the state and if they are protected from foreign competition.
t
The base for the purchasing power parity adjustment of the GNI is the cost of living in the United States.
t
The economic freedom associated with a market economy creates greater incentives for innovation and entrepreneurship than either a planned or a mixed economy. True False
t
The long-run monetary benefits of doing business in a country are a function of the size of the market, the present wealth of consumers in that market, and the likely future wealth of consumers.
t
The overall attractiveness of a country as a potential market or investment site for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.
t
The state can expropriate the profits from innovation through legal means. True False
t
Transformation from centrally planned command economies to market-based economies can be attributed to the fact that command and mixed economies failed to deliver the sustained economic performance achieved by countries adopting market-based systems.
t
When communism collapsed, many of the communist countries lacked the legal structure required to protect property rights because all the property was earlier held by the state.
t
One reason for the shift in values away from collectivism and toward individualism may be:
that richer societies exhibit less need for social and material support structures built on collectives
Hinduism and Buddhism both stress the importance of ____
the afterlife
Hofstede's uncertainty avoidance dimension considered
the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty
mores are:
the norms that are seen as central to the functioning of a society and its social lfie
The individualism versus collectivism dimension of Hofstede's study explored:
the relationship between the individual and his/her fellows
norms refer to:
the social rules and guidelines that prescribe appropriate behavior in particular situations.
Which of the following statements about values and norms of a culture is true?
the values and norms of a society influence social structure
A caste system is a closed system of stratification in which social position is determined by the family into which the person is born.
true
According to Hofstede, the concept of Confucian dynamism captures attitudes toward time, persistence, protection of face, and respect for tradition.
true
According to Max Weber, Protestantism encouraged capitalism's development by emphasizing the importance of wealth creation and frugality.
true
Both Hindus and Buddhists stress the afterlife and spiritual achievement rather than involvement in this world
true
Education plays an important role, from an international business perspective, as a determinant of national competitive advantage.
true
Hofstede's research has been criticized because it was culturally bound
true
In countries where the value of group identification is considered to be primary, managers and workers are discouraged from moving from company to company.
true
Individualism has led to a high degree of managerial mobility between companies resulting in managers who have good general skills but lack company-specific experience
true
International businesses that are ill-informed about the practices of another culture are likely to fail.
true
Max Weber thought that devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants
true
The convergence hypothesis states that there is a slow but steady merging occurring across different cultures towards some universally accepted values and norms
true
Upon meeting a foreign business executive, a Japanese executive will hold his business card in both hands and bow while presenting the card to the foreigner. This is an example of ritual behavior.
true
folkways include rituals and symbolic behavior
true
According to Islam, those who hold property are regarded as ____
trustees
Hofstede's _____ dimension measured the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty
uncertainty avoidance
___ is/are best defined as shared assumptions about how things ought to be.
values
what is enthnocentrism
A belief in the superiority of one's own ethnic group or culture.
A number of econometric studies have found consistent evidence of a hump-shaped relationship between income levels and pollution levels. According to this, as an economy grows and income levels rise:
After a while the pollution levels decrease
which of the following is an example of enthnocentrism
An American manager criticizes the cultural practices of Saudi Arabia, when he is sent there on business, because it differs from his own cultural norms.
Which of the following statements is true about an international business?
An international business must find ways to work within the limits imposed by government intervention
According to _____, suffering originates in people's desires for pleasure
Buddhism
Which of the following countries has been the largest recipient of foreign direct investment and received about $60 billion to $100 billion a year in inflows in 2004-2009?
China
A _______ system is based on a very detailed set of laws organized into codes.
Civil law
A political system that prioritizes the needs of the society over individual freedoms is called _______.
Collectivism
Under the ________, cases are judged with reference to three characteristics: tradition, precedent, and custom.
Common law system
Peoples' right to protest on issues accountability in public expenditure would be possible in a _________ political set-up.
Democratic