International Business Final

Karma and reincarnation are components of: a) Hinduism b) Islamic banking c) Christianity d) Buddhism

a) Hinduism

Which of the following is a key macro factor that underlies the trend toward greater globalization? a) Technological change, particularly in communication, information processing, and transportation b) Uniformity achieved in the level of education and standards of living across the world c) Establishment of global institutions like the WTO and IMF to promote spread of globalization d) Increase in subsidies to ailing sectors like agriculture

a) Technological change, particularly in communication, information processing, and transportation

1. What is ethnocentrism? a) The belief in the superiority of one's own ethnic group or culture b) The belief that the world is flat c) The study of multiple cultures d) All of the above

a) The belief in the superiority of one's own ethnic group or culture

Which of the following is often cited as the primary cause of expatriate failure in overseas assignments? a) The inability of the expatriate or the expatriate's family to adapt to the new culture b) Incompetence c) Not learning the local language d) Living overseas is too expensive

a) The inability of the expatriate or the expatriate's family to adapt to the new culture

1. Imminent domain is an example of public action. a) True b) False

a) True

1. Karl Marx advocated state ownership of the basic means of production distribution, and exchange a) True b) False

a) True

1. The real costs of information processing and communication have fallen dramatically in the past two decades. a) True b) False

a) True

Despite rapid globalization trends, differences between countries such culture, taste, preferences, and political systems still exist. a) True b) False

a) True

In general, command and mixed economies fail to deliver the kind of sustained economic performance that is achieved by countries adopting market-based systems a) True b) False

a) True

Islamic law is primarily a moral rather than a commercial law and is intended to govern all aspects of life. a) True b) False

a) True

Multinational enterprises can themselves be engines of cultural change. a) True b) False

a) True

Pictures, music, and ideas are considered intellectual property a) True b) False

a) True

Privatization entails state-owned enterprises using profits to invest in the private market as opposed to public expenditures. a) True b) False

a) True

Due to the changing economic geography, many of tomorrow's economic opportunities are most likely to be found in: a) developing nations such as China, Brazil, and India b) the United States c) command economies d) countries that are currently not members of the World Trade Organization

a) developing nations such as China, Brazil, and India

First-mover advantages are advantages that come from: a) early entrance to a market b) tax loopholes c) farming subsidies d) UHaul Groupon codes

a) early entrance to a market

1. In Confucian cultures, loyalty of subordinates to superiors should be: a) reciprocated by the superiors by bestowing blessings b) aimed at attaining spiritual perfection c) blind in nature d) free of expectation of reward and personal gain

a) reciprocated by the superiors by bestowing blessings

1. The government of Hitler's Germany in the 1930s and 1940s is an example of: a) right-wing totalitarianism b) theocratic totalitarianism c) totalitarian democracy d) an average day in INB 3300

a) right-wing totalitarianism

1. The four most dominant religions in terms of number of adherents in the world today are: a. Christianity, Islam, Hinduism, and Buddhism. b. Islam, Christianity, Judaism, and Hinduism. c. Christianity, Confucianism, Islam, and Hinduism. d. Islam, Christianity, Buddhism, and Judaism.

a. Christianity, Islam, Hinduism, and Buddhism.

1. Which of the following is an advantage of joint ventures? a. Firms benefit from a local partner's knowledge of the host country. b. It enables firms to keep a tight control over its technology. c. Friction and conflict between partners are nonexistent. d. It gives firms tight control over subsidiaries.

a. Firms benefit from a local partner's knowledge of the host country.

1. Three months ago, the Japanese ¥/U.S. $ exchange rate was 100¥/$1. However, today the rate now stands at 80¥/$1. What has happened to the value of the ¥en? a. It has depreciated against the $. b. It has depreciated against itself. c. It has appreciated against the $. d. It has remained unchanged.

a. It has depreciated against the $.

a. 1. When contract disputes arise in international trade, there is always the question of which country's laws to apply. To resolve this issue, a number of countries, including the United States, have ratified the _____, which establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations. a. United Nations Convention on Contracts for the International Sale of Goods b. Foreign Practices Act c. Convention on Combating Bribery of Foreign Public Officials d. International Court of Mediation

a. United Nations Convention on Contracts for the International Sale of Goods

1. An emphasis on individualism results in a low degree of managerial mobility between companies. a) True b) False

b) False

A country's economic system and property rights regime do not influence the attractiveness of the country as a market or investment site. a) True b) False

b) False

Command economies provide a more favorable environment for innovation and entrepreneurship than market economies a) True b) False

b) False

In Islamic banking, interest can be charged on loans made to businesses in congruence with Islamic values. a) True b) False

b) False

The WTO is seen as a lender of last resort to nations whose economies are in turmoil and whose currencies are losing value against those of other nations a) True b) False

b) False

When law courts interpret civil law, they do so with regard to tradition, precedent, and custom. a) True b) False

b) False

Which global organization was born out of the completion of the Uruguay Round? a) GATT b) WTO c) IMF d) UN

b) WTO

Which of the following best exemplifies a violation of mores? a) attending a business meeting in your birthday suit b) committing financial fraud c) eating with inappropriate cutlery d) sleeping during class

b) committing financial fraud

1. Which of the following refers to the total cumulative value of foreign investments? a) gross national income (GNI) b) foreign direct investment (FDI) c) purchasing power parity (PPP) d) switch trading

b) foreign direct investment (FDI)

Which of the following is broadly defined as the development of new products, processes, organizations, management practices, and strategies? a) economic deregulation b) innovation c) privatization d) going green

b) innovation

In a society, actions of people directed toward one another are governed by a set of social rules called: a) edicts b) norms c) contracts d) tacos

b) norms

The political, economic, and legal systems of a country refer to that country's: a) product safety laws b) political economy c) values d) competitive advantage

b) political economy

1. Assuming the current spot exchange rate is $1.50/£, how much would 2,000£ (British Pounds) be worth in the United States? a. $3,500 b. $3,000 c. $750 d. $1,500

b. $3,000

Which of the following arguments strengthens the ethical case for never engaging in corruption, no matter how compelling the benefits might seem? a. There are cases where side payments to government officials can remove the bureaucratic barriers to investments that create jobs. b. Corruption tends to corrupt both the bribe giver and the bribe taker. c. In the context of pervasive and cumbersome regulations in developing countries, corruption may improve efficiency and help growth. d. Giving bribes might be the price that must be paid to do a greater good.

b. Corruption tends to corrupt both the bribe giver and the bribe taker.

Economic evidence suggests that high levels of ________ significantly reduce the foreign direct investment, level of international trade, and economic growth rate in a country. a. education b. corruption c. transparency d. capitalism

b. corruption

In its extreme viewpoint, _____ suggests that if a culture supports slavery, it is all right to use slave labor in the country. a. the righteous moralist b. cultural relativism c. the Kantian ethic d. utilitarian approach

b. cultural relativism

Which ideology believes socialism is only achieved through violent revolution? a) Social Democracy b) Bronies c) Communism d) Muggles

c) Communism

1. Which of the following is considered an ethical system rather than a religion? a) Christianity b) Hinduism c) Confucianism d) Islam

c) Confucianism

1. A major distinction between a conventional bank and an Islamic bank is that: a) Islamic banks are allowed to charge higher interest rates on loans. b) Islamic banks cannot accept private deposits. c) Islamic banks cannot pay or charge interest. d) Islamic banks are not subject to any form of law.

c) Islamic banks cannot pay or charge interest

1. Which country joined NAFTA in 1994? a) United States b) Canada c) Mexico d) The South Republic of Belmont

c) Mexico

Product safety and liability laws are enforced to protect: a) intellectual property rights b) product investors c) consumers d) companies from foreign competition

c) consumers

1. A composer can protect an original musical score from being copied and sold by someone else by acquiring a: a) patent b) warrant c) copyright d) trademark

c) copyright

The Cedian government believes that its citizens should have complete freedom in their economic and political pursuits, and the Cedian ideology is "private profit over public good." In this context, Cedia most likely follows the philosophy of: a) totalitarianism b) socialism c) individualism d) communism

c) individualism

Some argue that free trade alone is a necessary but not sufficient prerequisite to lift the world's poorest countries out of poverty. They also recommend: a) weaker labor regulations b) rapid expansion in population c) large-scale debt relief d) a highly regulated economy

c) large-scale debt relief

1. Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprise, whereas the laws enacted by governments in democratic states where individualism is the dominant political philosophy tend to be pro-private enterprise and pro-consumer. This indicates how: a) The economic system of a country can be undermined by its legal system. b) the legal system of a country is influenced by the prevailing political system. c) the political system of a country is insulated from its legal system. d) the legal system of a country can shape its economic system.

c) the political system of a country is insulated from its legal system.

1. Abstract ideas about what a society believes to be good, right, and desirable are called: a) folkways b) norms c) values d) mores

c) values

1. Which of the following refers to the purchase of a foreign currency or security in one market for immediate resale in another to profit from a price discrepancy? a. Exercise b. Straddle c. Arbitrage d. Swap

c. Arbitrage

1. Which of the following is an advantage of licensing? a. It helps the firm to realize substantial experience curve and location economies. b. It gives a firm tight control over manufacturing, marketing, and strategy. c. The firm does not have to bear the development costs and risks associated with opening a foreign market. d. Firms can easily maintain control over how their technological know-how is used by the licensee.

c. The firm does not have to bear the development costs and risks associated with opening a foreign market.

1. The theory of how society deals with the fact that people are unequal in physical and intellectual capabilities is Hofstede's ______________ dimension. a) Individualism vs Collectivism b) Uncertainty Avoidance c) Masculinity vs Femininity d) Power Distance

d) Power Distance

1. The Human Development Index (HDI) measures: a) life expectancy b) educational attainment c) income d) all of the above

d) all of the above

The needs of society as a whole are generally viewed as being more important than individual freedoms in a society that emphasizes: a) privatization b) individualism c) side salads d) collectivism

d) collectivism

Erik is a manager for a German manufacturing firm that specializes in automotive racing parts. His team has been recently asked to work with some Italian engineers on a joint venture. Initially, Erik experienced problems with his Italian counterparts. He could not understand their high-risk approach to engineering and did not like their informal procedures. Erik and his team are mostly risk-averse and operate on a very detailed oriented manner. Which of the following cultural dimensions best describes Erik and his team? a) individualistic b) masculine c) power equal d) high uncertainty avoidance

d) high uncertainty avoidance

Fabio, an Italian dairy farmer, sells his dairy products to the United States, Brazil, and Kazakhstan. According to this information, Fabio is most likely involved in: a) globalization of production b) a multinational enterprise c) outsourcing d) international trade

d) international trade

1. Making a circle with the thumb and the forefinger is a friendly gesture in the United States, but it is a vulgar sexual invitation in Greece and Turkey. Similarly, while most Americans and Europeans use the thumbs-up gesture to indicate that "it's all right," in Greece the gesture is obscene. These instances reflect that: a) the Greek society is more conservative. b) Americans are generally perceived as being aggressive and pushy. c) unspoken language is not an important factor in communication. d) many nonverbal cues are culturally bound.

d) many nonverbal cues are culturally bound.

Which of the following creates an unfavorable environment for innovation and entrepreneurship? a) market economy b) economic freedom c) privatization d) state monopoly in production

d) state monopoly in production

1. The purchasing power parity (PPP) theory tells us that a country with a high inflation rate will see: a. appreciation in its currency exchange rate. b. decrease in interest rates. c. the collapse of the gold standard. d. depreciation in its currency exchange rate.

d. depreciation in its currency exchange rate.

1. Assume that the exchange rate between the euro and the dollar is € 1 = $1.20. If the law of one price holds, a camera that retails for $300 in New York should sell for _____ in Germany. a. € 320 b. € 300 c. € 250 d. € 360

d. € 360

1. A smile is an example of (a): a) unspoken language b) more c) caste d) folkway

unspoken language