International Business Final True/False
A company needs a large size to facilitate and benefit from the globalization of markets
False
A production process would create just one defect in six thousand products at Six Sigma
False
A theocratic law system is one in which the law in not based on religious teachings
False
Firms based in less - developed nations tent to build many extra performance attributes into their products
False
Folkway do not include rituals and symbolic behavior
False
GNI allows a more direct comparison of living standards in different countries
False
Hecksher - Ohlin theory does not support the case for unrestricted free trade between nations
False
In today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist
False
Market can be segmented in only one way: by sociocultural factors
False
Most international businesses require all budgets and performance data within the firm to be expressed in the currencies of the countries where its subunits are located
False
Most modern democratic states do not practice representative democracy
False
Privatization refers to the process of hiring private management consultancy firms to manage state - owned enterprises
False
Support activities are always less important than the primary activities in achieving a competitive advantage
False
The communists believed that socialism could be achieved by democratic means, and turned their backs on violent revolution and dictatorship
False
The ethical obligations of a multinational corporation toward employment conditions, human rights, environmental pollution, and the use of power are always clear - cut
False
The most attractive staffing policy is the ethnocentric approach
False
The skills within the firm that a competitor can easily match or imitate are known as core competencies
False
The theories of Smith and Ricardo show that countries should not engage in international trade for products that it is able to produce itself
False
The world bank has focused on policing the world trading system and making sure nationstate adhere to the rules laid down in trade treaties
False
Cultural myopia refers to a firms failure to understand host country cultural differences that require different approaches to marketing and management
True
Ethical strategy is a course of action that does not violate ethical principles
True
Exporting is found to be most inappropriate with lower - cost locations for manufacturing a product can be found abroad
True
If a country's economy is to sustain long - run economic growth, the business environment must be conducive to innovations and entrepreneurial activity
True
Lowering costs is one of the objectives of the production and logistics functions of an international firm
True
Outsourcing is a process that is not limited to manufacturing enterprise
True
Products sell well when their attributes match consumer needs
True
Products such as electronic components and pharmaceuticals have high value - to - weight ratios
True
Social responsibility in business refers to the idea that business people favor decisions that have both good economic and social consequences
True
The US financial accounting standards board and IASB are not vastly different
True
The attractiveness of a country as a potential market for an international business depends on balancing benefits, costs, and risks associated with doing business in that country
True
The central message of individualism is that individual economic and political freedoms are the ground rules on which a society should be biased
True
The set of choices the firm offers to its targeted markets is known as the marketing mix
True
Values are abstract ideas about what a group believes to be good, right, and desirable
True
What is considered normal business practice in one country may be considered unethical in other countries
True
A firm's strategical be defined as the actions that managers take to attain the goals of the firm
True
A wholly owned subsidiary does not limit a firms control over operations in different countries
True
According to Max Weber, protestantism encouraged capitalism's development by emphasizing the importance of wealth creation and frugality
True
According to Porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so the consumers value it more
True
Accounting information is the means by which firms communicate their financial position to the providers providers of capital
True
An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries
True