International Business Exam 1
Information technology has created a competitive advantage for firms by allowing them more opportunities to outdo their competitors.
Which of the following statements regarding information technology is accurate?
space perception
During a conversation in Latin America, people stand closer together than in northern Europe or the United States. This is an example of cultural differences in ________.
Ethics
Which of the following terms describes moral principles and values that govern the actions of individuals, corporations, and governing systems, with respect to what is right and what is wrong?
Cultural metaphor
Which of the following terms represents unique traditions that serve as guides for interpreting attitudes, values, and behaviors?
Avoiding the use of sweatshops
Which of the following would most likely be a social interest of a sustainable business?
Firms reduce manufacturing costs and retail prices by moving manufacturing activities to nations with lower costs of labor.
Which one of the following best explains the globalization of production?
The liberalization of markets
Which one of the following factors best explains why trade growth has outperformed GDP growth over the years?
An Indian apparel company sets up a factory in Madagascar.
Which one of the following is an example of globalizing manufacturing?
Polycentric orientation
Which one of the following is a host-country mindset in which an individual acquires an attachment to the country in which they conduct their business?
Developing economies of scale
Which one of the following motivations for international expansion involves expanding overseas in order to grow the customer base and increase the number of products being manufactured?
Industrialization in fast-growth developing economies
Which one of these factors is driving global economic transformation?
Second phase
Which phase of globalization is composed of the growth and supremacy of multinational enterprises in the industrial and agricultural industries?
The second phase -- 1900-1930
Which phase of globalization was triggered by the rise of electricity and steel production?
Gender roles typically overlap in feminine cultures.
Which statement about masculine and feminine cultures is correct?
Idiom
Which term refers to an expression whose symbolic meaning differs from the literal meaning?
Internationalization
Which term refers to the trend of corporations to methodically expand their worldwide business activities?
There is a convergence of consumer lifestyles and preferences worldwide.
Why can many global products and services be standardized?
provides services
Cross-cultural differences can impact a firm's activities. A firm that ________ primarily faces language and cross-cultural difficulties due to significant interaction with customers.
ambiguity
Cross-cultural differences in business can lead to problems with ________, which is when information and instructions can be understood in multiple ways.
Improved living standards
Nigeria's telecom infrastructure has increased telephone usage to over 30 million cellular subscribers. What is the most likely benefit Nigeria will realize from adding telephones?
Ethics
_______ are moral principles and values that govern the behavior of people, firms, and governments regarding right and wrong.
Facilitators
________ are corporations or individuals with expertise in finance, legal advice, customs clearance, or support services that help firms perform international business transactions.
Grease payments
________ are small payments made to low-level government officials to perform routine duties more efficiently.
A code of ethics
________ describes the values and expectations that guide the decisions of all employees in a firm.
Organizational buyers
________ include businesses, institutions, and governments.
Focal firms
________ initiate international business activities by envisioning, crafting, and creating goods and services for global buyers.
Economic interests
________ involve a company's concern with wages, taxes, public works, and disadvantaged communities.
Global outsourcing
________ involves a company paying external suppliers and contractors, who are located in foreign nations, to perform value-adding activities.
A prejudice
________ is an inflexibly held attitude that is generally negative and typically aimed at particular groups of people.
Self-reference criterion
________ is the tendency to view other cultures through the lens of one's own culture.
Embezzlement
________ occurs when an employee purposely mismanages or even steals money belonging to an employer.
Cross-cultural risk
________ refers to a situation in which a human value is at stake due to a cultural misunderstanding.
Globalization of markets
________ refers to the gradual integration and growing interdependence of national economies.
Commercial risk
________ represents possible losses or failures as a result of poorly implemented business strategies, maneuvers, or processes.
the tendency of a financial crisis in one country to spread quickly to other countries
Contagion is ________.
Pursuing prospects for growth through market diversification.
A U.S. manufacturer of automatic car wash equipment has seen its U.S. sales decline. The manufacturer decides to expand into Mexico and Canada. This is an example of which one of the following motivations for international expansion?
Both Russia and China feature fast-growing economies.
A business student in Texas is considering learning a foreign language. Why might she benefit from studying a language such as Russian or Chinese?
globalization
A macro trend of intense economic interconnectedness among the nations of the world is called ________.
monochronic
A person with a(n)________ orientation has a strong orientation to time and is dependent on strict agendas and promptness.
Reshoring
ABC Enterprises transferred some of its manufacturing and other value-chain activities to a more cost-effective location in China five years ago. Recently, ABC Enterprises has undergone a change in management, and the new manager has decided to move those value-chain and manufacturing activities back to the home country. In which one of the following is ABC participating?
distribution channel intermediary
A ________ is a professional company that offers logistics and marketing services for focal firms as part of worldwide supply chains.
Implementing corporate citizenship efforts
Based on her studies of international business, Yolanda Sanchez decides to buy paper for her office supply store from wood grown in sustainable forests in Canada, even though the sustainable paper costs more than other paper. Considering the reasons to study international business, which of the following best explains Yolanda decision?
powering a certain percentage of its operations with green energy
Corporate social responsibility (CSR) is best illustrated by an organization ________.
Country risk
Custom Cars, a painting and auto modification company, has expanded operations into South America. The first problem Custom Cars encountered was determining the applicable laws in the new country. Next, Custom Cars was informed by the local mayor that the firm will be shut down if it does not prepay its taxes in cash. Which risk in international business is Custom Cars encountering?
virtue
Darron Alvarez needs to decide whether to close down a plant located in a country where the factory is a major employer. According to the accounting department, closing the plant makes financial sense, but Darron does not have the heart to fire the workers. Based on his own personal values and his affection for the employees, Darron decides to try harder to find ways to make the plant viable. Darron's ethical standard is BEST described as the ________ approach.
relativism
Emir believes that all ethical truths are not absolute but instead differ between groups of people. Emir believes in the concept known as ________.
nongovernmental organizations
Education and healthcare are two examples of _________ in international business.
ability to control its own economy
Globalization can threaten national sovereignty by interfering with a country's ________.
foreign cars outselling domestic cars in the United States
Globalization has created rivalry between U.S. firms and foreign competitors, which has resulted in ________.
Develop a sensitivity for different cultures.
How can companies avoid cross-cultural misunderstandings?
Country risk
If a firm is operating in a foreign country, what type of risk does it face from the country's political, legal, and economic environment?
organizational structure
In international business, ________ primarily relates to whether a firm is centralized, decentralized, bureaucratic, or entrepreneurial.
environmental
Increasing the use of recyclable materials, using alternative energy sources, and decreasing pollution are all ________ interests of sustainable businesses.
To develop a network of people and increase business in the future
India is entering the global age and has a growing middle class. An Indian car manufacturer wants to offer a car for the average citizen of India, but does not have the technology available to create an inexpensive car that meets the laws that the Indian government is considering imposing. The company sets out to find a U.S. hybrid and electric car manufacturer that is willing to work with them. Why would a U.S. firm most likely agree?
Africa
In 2017, which region had the smallest proportion of Internet users?
polychronic
In a(n) ________ culture, people are flexible, and they value multitasking and spending a lot of time with others. Such cultures do not put much emphasis on time and schedules.
socialization
Joe has just relocated to China for work and is in the process of learning the rules, behaviors, and lifestyles that are considered appropriate in Chinese society. Joe is engaged in ________.
unethical behavior
Law firms sometimes ask their employees to pad their billable hours or charge customers for tasks they did not perform. This is an example of ________.
environmental CSR
Minimizing the creation of contaminants and working to improve the natural surrounding is the primary focus of ________.
Confucianism
More of a way of thinking than a religion, ________ reflects a positive view of human nature and has a strong emphasis on ethical behavior.
Advertising themes often lose their original meaning in translation or convey unfavorable interpretations.
Nasreen Patel is the newest member of the marketing team at Office World, an office supply store chain in the United States. Nasreen has been hired to help the company alter its marketing campaign to better suit the needs of potential international customers. Nasreen suggests changing the company's current, long-time ad slogan when marketing in foreign countries, but several members of the team disagree. Which of the following would BEST strengthen the argument for changing the current ad slogan when marketing in foreign countries?
Corporate governance
Of the following, which term describes a collection of techniques and practices that are used to manage and control organizations?
facilitate a reduction in trade barriers
One of the tasks of the World Trade Organization (WTO) is to ________.
born global firm
Pioneer Systems is a young entrepreneurial company that has engaged in international business from the day it opened its doors. Pioneer is categorized as a ________.
fraud
Recently Ravi got a phone call from what he thought was his bank asking him to verify some personal information such as his Social Security number and bank card numbers. He later found suspicious charges on his bank statement from an unknown source. He contacted his bank, which informed him that it never contacted him. Ravi was most likely a victim of ________.
Translation software automatically converts email from Chinese to English.
Technology can both enhance and hinder cultural awareness. Analyze each scenario and select the option in which technology most successfully enhances cross-cultural communication.
High-context culture
The Osaka Tea Company of Japan uses nonverbal messages during its management meetings to ensure harmony within the company. The managers exhibit a polite style to show respect and are careful not to make any remarks that could offend others. What kind of culture does this company represent?
a global decrease in barriers to trade
The formation of the WTO and the emergence of economic integration blocs led to ________.
contagion
The trend of financial crises spreading from one country to another is known as ________.
rights
The ________ approach to corporate governance is based on the belief that human dignity must be maintained and protected no matter what.
common good
The ________approach to corporate governance asserts that the best action stresses respect and compassion for all and improves the quality of life for all affected people.
Reducing child labor
Town Boutique, a local clothing store, recently switched suppliers due to rumors that its supplier in Bangladesh was employing underage workers in its factories. By no longer doing business with the supplier in Bangladesh, Town Boutique was upholding which CSR value?
Enhancing economic growth and productivity.
What has been the result of making improvements to Nigeria's cell phone infrastructure?
Ideas or works created by individuals or firms.
What is intellectual property?
Verbal language
What is one of the most significant expressions of a culture that provides cultural insight?
To reduce the costs of R&D and production
What is one of the most typical reason for locating value-chain activities abroad?
To communicate with connected individuals in new markets
What is one reason companies use social media such as Snapchat and Twitter?
Learning about a new culture
What is the LEAST likely motive for international expansion?
Nestlé wants to earn profits in international markets
What is the most likely reason that Nestlé sells its food and beverage products worldwide?
Bribery
What is the most notable form of corruption in international business?
The tendency to view other cultures according to our own culture.
What is the self-reference criterion?
offshoring
When a company transfers its value-chain activities by launching a subsidiary in a foreign country, it is called ________.
acculturation
When an individual goes through a process of becoming acclimated to a different culture, it is called ________.
bribery
When an individual offers money or favors to someone for personal gain or in order to persuade that person to participate in some form of corruption, it is called ________.
internationalization
When companies systematically engage in increasing the international dimension of their business activities it is known as ________.
Progression of international investments and financial activities
Which dimension of globalization involves the unrestricted movement of capital and the expanded networks of economies throughout the world?
Growth of regional economic integration blocs
Which dimension of market globalization is a result of the North American Free Trade Agreement, as well as other countries' agreements that have facilitated reduced trade barriers among their members?
Culture is relative.
Which of the following BEST describes culture?
Promoting workplace cleanliness
Which of the following is NOT an example of corporate social responsibility (CSR) values?
Many emerging markets are now value-adding producers.
Which of the following is a likely cause of globalization?
Being closer to supply sources
Which of the following is a motivation for international expansion?
Rotating farm crops
Which of the following is an example of a sustainable practice?
Contagion
Which of the following represents the trend of economic disaster spreading from one country to another?
BMW introduces electric cars with carbon-fiber bodies to save fuel.
Which of the following situations illustrates sustainability?
To demonstrate social responsibility and good environmental practices
Why did Starbucks begin selling coffee only from growers certified by the Rain Forest Alliance, a nonprofit organization that promotes the interests of coffee growers and the environment?
Meetings would be flexible, and the conference room would have a round conference table.
Your company is initiating a business relationship with a country that has a polychronic perception of time and an informal culture. Which option indicates what you would expect from this company?
International business supports sustainability and corporate citizenship.
Your roommate is uncertain about a college major. Knowing that she is passionate about social and environmental causes, you suggest that she major in international business. When she graduates and works for a large company, you assert that she will be able to influence the company's actions as they affect society and the environment. Which one of the following reasons for studying international business are you advocating?
idiom
A(n) ________ is an expression whose symbolic meaning is different from its actual or literal meaning.
Market liberalization and implementation of open markets
China, India, and Eastern Europe have become known as cost-effective places for producing goods and services, and they have attracted an increasing amount of foreign capital into their economies. Which driver of globalization best explains this occurrence?
Developing a global plan to protect water resources
Coca-Cola demonstrates social responsibility by doing which of the following?
