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180) What are the advantages and disadvantages of using a nation as a point of reference for a culture?
Answer: The nation, as opposed to the State, provides a workable definition of a culture for international business because basic similarity among people is both a cause and an effect of national boundaries. The laws governing business operations also apply primarily along national lines. Within the bounds of a nation are people who largely share essential attributes, such as values, language, and race. However, these shared attributes do not mean that everyone in a country is alike, nor do they suggest that each country is unique in all respects.
1) ________ consists of specific learned norms based on attitudes, values, and beliefs of a group of people. a. Ethnology b. Civilization c. Culture d. Doctrine
Culture
152) Most cultural variables are universal. a. True b. False
a. True
154) Similarity among people is both a cause and effect of national boundaries. a. True b. False
a. True
56) Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that _______ a. Regionalization is a transition stage toward globalization b. Neighboring countries are more apt to disagree politically than distant countries c. Neighboring countries are too geographically similar to benefit from trade d. Business in non-territorial areas is not regional
A) regionalization is a transition stage toward globalization
183) What are the characteristics of individualist and collectivist cultures?
Attributes of individualism are low dependence on the organization and a desire for personal time, freedom, and challenge. In those countries with high individualism, self-actualization will be a prime motivator because employees want challenges. Attributes of collectivism are dependence on the organization and a desire for training, good physical conditions, and benefits. In countries with high collectivism, the provision of a safe physical and emotional environment will be a prime motivator.
5) Which of the following is NOT a likely reason to study international business? a. Global events affect almost all companies b. Difference among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to country c. Business conducted outside the limits of any one county is inexplicably on the decline d. Firms may be better able to obtain better or less expensive resources by operating internationally
Business conducted outside the limits of any one county is inexplicably on the decline
4) Which of the following is NOT true about cultural diversity? a. Companies may gain competitive advantages by bringing together people of diverse backgrounds. b. Cultural diversity is most successful when domestic and foreign firms establish joint ventures. c. Cultural diversity may help a company gain deeper knowledge about products and services. d. The process of bringing people of different national cultures together is often difficult.
Cultural diversity is most successful when domestic and foreign firms establish joint ventures.
187) What is culture shock? How can an international employer help prevent culture shock and improve the success of expatriates?
Culture shock is frustration arising from experiencing a new culture and having to learn and cope with a vast array of new cultural cues and expectations. Businesspeople can learn to improve awareness and sensitivity and, by educating themselves, enhance the likelihood of succeeding abroad and avoiding culture shock. Gathering some basic research on another culture can be instructive as well as learning the language. There are country guidebooks based on people's experiences, including those by international managers. Employees can also consult with knowledgeable people at home and abroad, whether in a governmental or private capacity to learn about the culture and avoid adjustment problems.
185) What is the difference between a monochronic and polychronic culture? How do such cultural differences affect business practices for international firms?
Cultures such as those in Northern Europe are called monochronic. People prefer to work sequentially, such as finishing with one customer before dealing with another. Conversely, polychronic Southern Europeans are more comfortable working simultaneously with all the tasks they face. Such cultural differences affect the degree of multitasking with which people are comfortable. International companies and individuals must evaluate their business and personal practices to ensure that their behavior may fit with the culture.
2) The widening set of inderdependent relationship among people from different parts of world is known as_________ a. Globalization b. Offshoring c. Franchising d. Outsourcing
Globalization
188) What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider before adopting one of these approaches?
In polycentric organizations, control is decentralized. In other words, business units in different countries have a significant degree of autonomy from the home office and act like local companies. Polycentrism may be, however, an overly cautious response to cultural variety. Ethnocentrism is the belief that one's own culture is superior to others. In international business, it describes a company or individual so taken with the belief that what worked at home should work abroad that environmental differences are ignored. Geocentrism refers to a situation in which a company bases its operations on an informed knowledge of home and host country needs, capabilities, and constraints. This is the preferred approach to business dealing with another culture because it increases introduction of innovations and decreases the likelihood of their failures. In deciding whether to make changes in either home- or host-country operations, a company should consider several factors: the importance of the proposed changes to every party involved, the cost and benefit to the company of each proposed change, the value of opinion leaders in implementing the changes, and timing.
186) What factors influence cultural stability and cultural change? What factors influence how much cultural adjustment organizations must make in foreign countries?
Individual and cultural values and customs may evolve over time. Change may come about through choice or imposition. Change by choice may take place as a reaction to social and economic changes that present new alternatives. Change by imposition, sometimes called cultural imperialism, has occurred, for example, when countries introduce legal systems into colonies by prohibiting established practices and defining them as criminal. In addition to national boundaries and geographical obstacles, language is a factor that greatly affects cultural stability. Religion is also a strong shaper of values. International companies sometimes have succeeded in introducing new products, technologies, and operating procedures to foreign countries with little adjustment. That's because some of these introductions have not run counter to deep-seated attitudes or because the host society is willing to accept foreign customs as a trade-off for other advantages. Some countries are relatively similar to one another, usually because they share many attributes that help mold their cultures, such as language, religion, geographical location, ethnicity, and level of economic development.
3) Which of the following best defines international business? a. It includes all economic flows between two or more countries b. It includes all private economic flows between two or more countries c. It includes all business transactions involving two or more countries d. It includes all business transactions in countries other than your home county
It includes all business transactions involving two or more countries
184) What is the difference between a low-context culture and a high-context culture? How do these differences affect communication in international business dealings?
Low-context cultures are environments in which most people consider relevant only firsthand information that bears directly on the decision they need to make. In business, they spend little time on "small talk." High-context cultures are environments in which people consider peripheral information valuable to decision making. When managers from the two types of cultures deal with each other, the low-context individuals may believe the high-context ones are inefficient and time-wasters. The high-context individuals may believe the low-context ones are too aggressive to be trusted.
17) Because consumers want a greater variety of goods and services at lower prices, many governments have________ a. Reduced their restrictions on the international movement of goods and services b. Acted to tax most imports at a lower rate than domestic products c. Sought to eliminate reciprocal advantages negotiated through international organizations and treaties d. Increased their participation in multinational problem-solving efforts
Reduced their restrictions on the international movement of goods and services
62) Which of the following best describes a result of cultural collision in international business? a. A company implements practices that are less effective than intended. b. Local employees are overlooked for promotions by home country managers. c. Expatriate managers rely too heavily on local employees for negotiating business deals. d. Foreign and domestic companies make adjustments for the local culture and legal environment.
a. A company implements practices that are less effective than intended.
181) In a short essay, describe the various affiliations upon which a person's status can be based and discuss how social stratification affects such business functions as marketing and employment practices.
a. A person's status is partly determined by individual factors and partly by the person's affiliation or membership in a given group. Affiliations determined by birth—known as ascribed group memberships—include those based on gender, family, age, caste, and ethnic, racial, or national origin. Affiliations not determined by birth are called acquired group memberships and include those based on religion, political affiliation, and professional and other associations. b. Social stratification affects marketing as companies choose to use people in their advertisements whom their target market admires or associates with. Further, stratification affects employment practices such as hiring, promotion, compensation, and staff-reduction. Employers in different countries are differently influenced by social stratification as they make employment decisions.
100) All of the following are international business translation problems EXCEPT which of the following? a. All written work requires back translation in order to be understood in a second language. b. Because languages and the common meaning of words are constantly evolving, the intended meaning of a word may be different from what the listener or reader understands. c. Some words in one language simply don't have a direct translation into another language. d. Words mean different things in different contexts, thus the wrong context may be translated.
a. All written work requires back translation in order to be understood in a second language.
205. ________ consists learned norms based on the values, attitudes and beliefs of a group of people. a. Culture b. Ethnology c. Civilization d. Doctrine
a. Culture
221. ________ integration is the political and monetary agreements among nations and world regions that give preference to member countries to the agreement. a. Economic b. Trilateral c. Bilateral d. Global
a. Economic
15) Advanced communication systems have contributed to growth in international business by________ a. Enabling better oversight of global operations b. Reducing the effect of global competition c. Decreasing the cost of cargo transportation d. Reducing export regulations
a. Enabling better oversight of global operations
78) ________ people account for the largest percentage of global production. a. English-speaking b. Mandarin-speaking c. French-speaking d. Spanish-speaking
a. English-speaking
24) Governments have signed treaties to protect foreign-owned property rights, such as investments and patents. A primary reason for doing so is to ____ a. Gain reciprocal advantages b. Reduce the domestic effects of other countries economic policies c. Deal with areas of concern outside the territory of any one country d. Reduce national conflicts leading to violent political demonstrations
a. Gain reciprocal advantages
28) Which of the following statements would most likely be made by a SUPPORTER of globalization? a. Globalization encourages the adoption of uniform and superior standards for combating environmental problems b. Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources c. Global competition discourages resource-saving technologies, which are costly d. Air pollution and toxic runoff increase with global economic growth
a. Globalization encourages the adoption of uniform and superior standards for combating environmental problems
58) Some observers feel that international institutions and the people working in them cannot adequately handle the complexities of an interconnected world. Based on this, these observers believe that ______ a. Globalization will slow in the future b. Globalization is nevertheless inevitable c. International business will grow primarly on a regional basis d. Private companies will replace international organizations in running the world's economy
a. Globalization will slow in the future
60) Carnival Cruise Lines lowers its taxes by all of the following EXCEPT ______ a. Hiring host-country nationals who pay no taxes b. Taking advantage of taxation laws in foreign countries c. Sailing in international waters outside countries tax jurisdiction d. paying substantial port fees instead of taxes during stopovers
a. Hiring host-country nationals who pay no taxes
215. The biggest market for foreign exchange is ________. a. London b. New York c. Tokyo d. Zurich
a. London
182) Describe the four major theories discussed in your text that explain why motivation differs from one country to another. a. Materialism and Leisure: b. Expectation of Success and Reward: c. Masculinity-Femininity Index: d. Needs Hierarchy:
a. Materialism and Leisure: Historically, there is strong evidence that the desire for material wealth is a prime incentive for the work that leads to economic development. b. Expectation of Success and Reward: Generally, people have little enthusiasm for efforts that seem too easy or too difficult, where the probability of either success or failure seems almost certain. The greatest enthusiasm for work exists when high uncertainty of success is combined with the likelihood of a very positive reward for success and little or none for failure. c. Masculinity-Femininity Index: The average interest in career success varies substantially among countries. In one study, employees with a high masculinity score were those who admired the successful achiever, had little sympathy for the unfortunate, and preferred to be the best rather than be on a par with others. d. Needs Hierarchy: According to this theory, people try to fulfill lower-order needs sufficiently before moving on to higher ones. People will work to satisfy a need, but once it is fulfilled, it is no longer a motivator.
40) Visable exports and imports are _________ a. Merchandise imports and exports b. The sum total of goods and services traded c. International transactions paid for in money rather than barter d. Typically a country's least common international economic transactions
a. Merchandise imports and exports
31) The process of shifting production from a domestic to a foreign location is best known as _____ a. Offshoring b. Outsourcing c. Licensing d. Joint venturing
a. Offshoring
22) When a company successfully responds to foreign production and market opportunities______ a. Other companies will likely emulate its successful practices b. It likely has a long-term advantage over competitors c. It will downsize its domestic operations d. Its home government likely raises taxes on the company
a. Other companies will likely emulate its successful practices
38) Which of the following BEST explains how a firm reduces risk by operating internationally? a. Taking advantages of business-cycle differences among countries b. Buying competitive risk insurance unavailable domestically c. Preventing competitors from operating in the countries it has entered d. Operating in less competitive environments than those at home
a. Taking advantages of business-cycle differences among countries
14) Which of the following best explains why international business has grown rapidly in the past few decades? a. The end of the political division between the Communist and non-Communist blocs b. Greater income equality in most countries c. Growing concern about climate change d. Increased concerns about terrorism
a. The end of the political division between the Communist and non-Communist blocs
122) Many firms gain a global competitive advantage by fostering cultural diversity. a. True b. False
a. True
123) International business includes all commercial transactions between two or more countries a. True b. False
a. True
124) Gaining some understanding of international business is important for any business student because global events and competitions affect almost all companies a. True b. False
a. True
126) It is difficult to compare globalization of business over time because shifting national borders have changed the nature of transactions from domestic to international and vice versa a. True b. False
a. True
129) Globalization of business has been stimulated by institutional developments that aid foreign trade and investment a. True b. False
a. True
130) The recent expansion of technology has contributed to the growth in international business by creating new products that are important in world trade a. True b. False
a. True
131) Improvements in transportation and communications enable managers to better oversee foreign operations a. True b. False
a. True
133) Countries have reduced import trade barriers in the expectation that other countries will do the same a. True b. False
a. True
134) Many companies merge with or acquire other companies to gain operating efficiencies that help them compete with or become global leaders a. True b. False
a. True
137) A criticism of globalization is that as economic growth increases, too many nonrenewable resources are used a. True b. False
a. True
139) Critics of offshoring assert that the short-term cost saving derived from offshoring hinder firms from developing more efficient production methods a. True b. False
a. True
140) Many professional basketball teams recruit tall youngsters in foreign countries into basketball camps where they can develop basketball skills and perhaps become candidates for professional play. This is an example of engaging in international business to acquire resources a. True b. False
a. True
141) By operating internationally, a company may take advantage of business-cycle differences among countries and thereby reduce its financial risks a. True b. False
a. True
143) When a U.S. citizen flies Japan Airlines, the airline acts as service exporter for Japan a. True b. False
a. True
145) The ownership of foreign bonds is an example of a portfolio investment a. True b. False
a. True
148) Managers need to understand not only the laws of countries where they operate, but also how those laws are enforced a. True b. False
a. True
149) A company with limited resources is more likely to achieve national distribution within a small country than within a large country a. True b. False
a. True
150) The fact that a company is the market leader in one country is no guarantee that it will be the leader in another country a. True b. False
a. True
156) The identity of a nation is typically promoted through symbols, monuments, and museums. a. True b. False
a. True
157) Most people's basic values are acquired during childhood and are not readily changed later in life. a. True b. False
a. True
158) Cultural change may come by choice or imposition. a. True b. False
a. True
159) Creolization refers to the mixing of cultural elements that occurs during cultural diffusion. a. True b. False
a. True
160) English-speaking peoples account for a larger portion of global output than people who speak any other language. a. True b. False
a. True
162) Although countries are similar in terms of having a mandatory retirement age, they differ in what that age is. a. True b. False
a. True
163) There is a strong correlation between the intensity of religious belief and attributes that lead to economic growth, such as obeying laws and thriftiness. a. True b. False
a. True
165) Preference for a consultative management style is prevalent in a society with low power distance. a. True b. False
a. True
167) In societies where trust is high, there tends to be a lower cost of doing business. a. True b. False
a. True
168) Where future orientation is high, people are more willing to delay gratification by investing. a. True b. False
a. True
173) A firm that begins operating in a culturally similar foreign country will most likely face few necessary cultural adjustments. a. True b. False
a. True
174) A potential problem of polycentrism is failure to introduce innovative superiority. a. True b. False
a. True
175) Ethnocentric firms typically use the same business practices in all cultures and markets. a. True b. False
a. True
178) Change agents intentionally cause or accelerate social and cultural change. a. True b. False
a. True
179) Geocentrism is the preferred approach to international business practices for most global firms. a. True b. False
a. True
54) When companies face the same competitors in almost all countries where they operate,_____ a. What they learn about each other in one country is useful in predicting the other's strategies and actions elsewhere b. The market leader is the same everywhere c. There is less need to understand the physical and societal factors of each country d. They are less likely to enter joint ventures with other companies
a. What they learn about each other in one country is useful in predicting the other's strategies and actions elsewhere
114) The fact that an English word such as blue-jeans has entered the Spanish language, while a Spanish word such as macho has come into American English illustrates that ________. a. cultural diffusion is a two-way process b. cultural trends come from emerging nations c. existing national borders are shifting d. material cultures are becoming universal
a. cultural diffusion is a two-way process
209. The total market value of all output produced within a nation's borders, no matter whether generated by a domestic or foreign-owned company, is reported as a nation's ________. a. gross domestic product (GDP) b. net national product (NNP) c. gross national income (GNI) d. gross national product (GNP)
a. gross domestic product (GDP)
222. According to the case BRICs: Vanguard of the Revolution, the BRICs leaders a. have begun holding BRIC-only summits b. refuse to hold summits without representation from the Bretton Woods institutions c. refuse to hold summits without the US leadership d. will not organize summits because of serious security concerns
a. have begun holding BRIC-only summits
86) The term "________ culture" describes a country in which the norm is a money-and-things orientation and a belief that it's better to "live to work" than to "work to live." a. high masculinity b. physiological c. non-fatalistic d. high-femininity
a. high masculinity
98) A culture that prefers to first settle general principles rather than small issues is most accurately characterized as ________. a. idealist b. polychronic c. high-context d. pragmatist
a. idealist
118) Assume a firm plans to expand internationally. If its managers wish to avoid pitfalls caused by differences in "silent language," they should consider differences in ________. a. normal proximity during conversations b. degree of detail expected in written contract c. the meaning of slang words during presentations d. importance of adherence to schedules
a. normal proximity during conversations
66) Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following? a. observe the behavior of people who have gained respect within that cultural environment b. rely on stereotypes, which are based on averages, to gain an understanding of the culture c. avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors d. memorize the cultural variations that are typically encountered in a specific cultural environment
a. observe the behavior of people who have gained respect within that cultural environment
117) In the opening case on the Java Lounge in Saudi Arabia, people in the port city of Jeddah were less culturally conservative than people in the interior of the country. The most likely reason for this is that ________. a. people in the port cities have more contact with foreigners b. the coastal area has to trade with countries using different religious holidays c. the coastal area has a culture with a higher uncertainty avoidance d. the coastal area is secular, whereas the interior of Saudi Arabia has a state religion
a. people in the port cities have more contact with foreigners
231. People generally prefer little consultation between superiors and subordinates in cultures where ________ is high. a. power distance b. self-actualization c. fatalism d. individualism
a. power distance
88) People generally prefer little consultation between superiors and subordinates in cultures where ________ is high. a. power distance b. fatalism c. individualism d. self-actualization
a. power distance
105) Ellen, a U.S. citizen, worked for a U.S. firm in Germany for four years and was transferred back to the firm's home office in Chicago two months ago. Ellen feels significant dissatisfaction with her job and life in Chicago, which is most likely a result of ________. a. reverse culture shock b. polycentrism c. culture shock d. ethnocentrism
a. reverse culture shock
95) Raj, an engineer, works long hours and takes full responsibility for both his good and bad work performance. Raj most likely believes in ________. a. self-determination b. low power distance c. collectivism d. fatalism
a. self-determination
6) Managing and cultivating diverse teams is facilitated by first encouraging team members to ________. a. understand each other's culture before dealing with the tasks at hand b. jump into the task allowing the team members to react and adapt to each other c. allow team members to deal with the fellows as they would in their own culture d. establish strict rules on how the task will be performed
a. understand each other's culture before dealing with the tasks at hand
43) A foreign direct investment occurs when ______ a. A company owns at least 25% of foreign firm b. A company has a controlling invests in a foreign company c. Foreign ownership is in private rather than government securities d. A foreign firm agrees to a licensing agreement with a large conglomerate
b. A company has a controlling invests in a foreign company
65) Which of the following is the most accurate statement about culture? a. Cultural variables can easily be isolated from other factors such as economic and political conditions. b. Although most cultural variables are universal, the forms these variables take differ from culture to culture. c. Most cultural variables are superficial and can easily be influenced by environmental factors. d. Within a culture, everyone responds to particular cultural variables the same way.
b. Although most cultural variables are universal, the forms these variables take differ from culture to culture.
64) Devon , an accounts manager at a large electronic firm, does not have any direct international responsibilities; however, Devon would most likely benefit from studying international business issues so that he can ___________ a. Conduct better job interviews b. Better understand how foreign operations affect the company's competitive position c. Supervise and evaluate subordinates who have global assignments d. Understand the legalities of importing and exporting products overseas
b. Better understand how foreign operations affect the company's competitive position
214. Comparative advantage differs from absolute advantage in that the former ________, whereas the latter ________. a. bases trade on natural advantages; bases trade on acquired advantage b. states that there are gains from trade even if one country can produce everything more efficiently than another country; does not deal with this issue c. holds that countries should specialize their production; does not d. holds that trade should be kept as nearly in balance as possible; says countries should seek a favorable balance of trade
b. Comparative advantage states that there are gains from trade even if one country can produce everything more efficiently than another country; Absolute advantage does not deal with this issue
13) Which of the following has MOST influenced consumers to demand access to foreign-made products? a. Declining global affluence has caused consumers to seek out lower-priced products from abroad? b. Consumers have become more efficient in using media and technologies to compare prices worldwide c. Fearing that their governments winn enact restrictive policies on imports consumers are stocking up on foreign products before restrictions are put in place d. Expectations of rising prices of foreign products have caused consumers to seek foreign products before their prices become prohibitive
b. Consumers have become more efficient in using media and technologies to compare prices worldwide
201. ________ effects of regional economic integration are the overall growth in the market and the impact on a company caused by expanding production and by the company's ability to achieve greater economies of scale. a. Static b. Dynamic c. Barrier d. Economic
b. Dynamic
33) A major criticism of offshoring is that is _____ a. Increases production costs b. Exchanges good jobs for bad jobs c. Threatens the sovereignty of larger countries d. Allows companies to avoid payment of any taxes
b. Exchanges good jobs for bad jobs
120) The specific learned norms based on attitudes, values, and beliefs of a group of people are known as ethnology . a. True b. False
b. False
121) Globalization refers to all economic transactions among countries a. True b. False
b. False
125) The best way of conducting business domestically is also typically the best way of conduct business internationally a. True b. False
b. False
127) Most countries imports account for more than half of their citizens consumption a. True b. False
b. False
128) The lowering of tax rates around the world is one of the seven major forces behind recent globalization a. True b. False
b. False
132) Important restrictions are becoming less important because consumers increasingly want to buy goods and services produced in their own countries a. True b. False
b. False
135) It is rare for a new company to locate its operations near competitors and suppliers a. True b. False
b. False
136) Governments primarily cooperate through treaties to create a global division of labor a. True b. False
b. False
138) The process of shifting production to a foreign country is known as outsourcing a. True b. False
b. False
142) The production of goods by a French company in Italy for sale in Italy is an example of an Italian merchandise import a. True b. False
b. False
144) A joint venture is an example of a portfolio investment a. True b. False
b. False
146) The term multinational corporation and multinational company are frequently used synonyms for strategic alliances a. True b. False
b. False
147) Geographical barriers typically affect distribution channels within countries, but they rarely affect distribution channels between countries a. True b. False
b. False
151) The view that regionalization, rather than globalization, will prevail in the future is largely based on the use of common languages among countries in a region. a. True b. False
b. False
153) The lack of cultural guidebooks and research specifically for international managers poses a significant problem for global firms. a. True b. False
b. False
155) Cultures do not transcend national (state) boundaries . a. True b. False
b. False
161) National origin is an acquired group membership. a. True b. False
b. False
164) In a country with a high masculinity score, people have a tendency to feel sympathy towards individuals who are unemployed or homeless. a. True b. False
b. False
166) In collectivist cultures based on kinship, security and social needs are met more effectively in the workplace than at home. a. True b. False
b. False
169) A culture in which people prefer to handle tasks sequentially is a polychronic culture. a. True b. False
b. False
170) A culture with a preference for a problem-solving style that first settles principles is a pragmatic culture. a. True b. False
b. False
171) When dealing in business with people from another county, it is good to use slang and tell jokes to put everyone at ease. a. True b. False
b. False
172) When a company does business in another country whose official language is the same as the company's home country, employees can assume that although some spellings are different that words will mean the same thing. a. True b. False
b. False
176) A widely successful strategy for introducing change into a foreign country is to introduce many changes simultaneously. a. True b. False
b. False
177) According to experts, stakeholder participation in decision making is effective only in countries with an educated population. a. True b. False
b. False
52) The same automobile company produces Fiats and Ferraris. The company builds an engine plant in China with low production costs for Fiats but not Ferraris. The probable reason is that _______ a. Fiat competes mainly on a focus strategy, whereas Ferrari competes mainly on a mass-market strategy b. Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on focus strategy c. Ferrari faces global competitors in China, whereas Fiat competes in China mainly agains Chinese competitors d. Although Ferrari did not build an engine plant, it will use the same Fiat engines in its models
b. Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on focus strategy
48) Managers who are knowledgeable about_______ are better able to identify the location, quantity, quality, and availability of the world's natural resources a. Political factors b. Geographic factors c. Competitive factors d. Cultural factors
b. Geographic factors
10) Most of the world's goods and services are sold_________ a. In international markets b. In the countries where they are produced c. Through exports to small countries d. Through exports to large countries
b. In the countries where they are produced
21) Assume an enterprise is considering establishment of a foreign production facility. Which of the following best supports this decision? a. Its foreign competitors have higher production costs than it has b. Its main competitior successfully opened a foreign plant c. Its suppliers follow an agglomeration strategy d. None of its competitors have foreign productions facilities
b. Its main competitior successfully opened a foreign plant
42) Reebok pays a royality to the German Soccer League to use the team's logo on t-shirts that it sells. Reebok and the German Soccer League most likely have a_____ a. Turnkey operation contract b. Licensing agreement c. Portfolio investment d. Joint venture
b. Licensing agreement
77) Which of the following languages has the most NATIVE speakers? a. English b. Mandarin c. Spanish d. Hindi
b. Mandarin
32) Which of the following statements would most likely NOT be supported by an advocate of offshoring? a. Offshoring increases the number of high-value jobs in the home countries of offshoring companies b. Offshoring is fundamentally better for workers than the introduction of labor-saving technologies c. Workers displaced due to offshoring are able to find new jobs as easily as those displaced by technology d. There are upper limits to offshoring because of the lack of skilled workers willing to work permanently for low wages
b. Offshoring is fundamentally better for workers than the introduction of labor-saving technologies
34) Critics of offshoring claim all EXCEPT which of the following? a. Cost savings are seldom passed on to final consumers b. Offshoring reduces the income of people in low-wage countries c. Incomes of workers in countries whose companies offshored production have gone down as percentage of national income d. Many workers who have been displaced by offshoring do not have the skills needed for higher-value jobs
b. Offshoring reduces the income of people in low-wage countries
47) Political, law, culture, and economy are all examples of _________factors that can affect the ways in which companies produce and sell their productions in foreign markets a. Social b. Physical c. Competitive d. Political
b. Physical
204. ________ involve the exchange of currency at an agreed-upon rate for delivery within two business days. a. Reverse transactions b. Spot transactions c. Outright forward transactions d. FX swaps
b. Spot transactions
57) Which of the following is NOT a common argument for the slowing of future globalization? a. Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people b. Technological, transportation, and communication advances will decline in the near future c. Major countries have either ignored certain international treaties or have refused to sign them d. The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments
b. Technological, transportation, and communication advances will decline in the near future
25) All of the following are areas in which commercial activities take place outside the territory of any nation EXECPT_____ a. Noncoastal areas of the oceans b. The Panama and Suaz Canals c. Outer space d. Antartica
b. The Panama and Suaz Canals
30) Although globalization may bring economic growth, critics nevertheless contend that____ a. The growth is too fast b. The inequality of gains puts some people in a relatively worse economic situation c. This growth is mainly for the future, thus ignoring present economic growth needs d. The cultural foundations of sovereignty are supported by globalization
b. The inequality of gains puts some people in a relatively worse economic situation
46) The term used by the United Nations as a synonym for multinational enterprise is ______ a. Multinational corporation b. Transnational company c. International fimr d. Born-globally
b. Transnational company
9) Which of the following is an indication of the increased globalization of business since the end of World War II? a. Foreign trade has largely replaced foreign ownership as a mean of conducting international business b. World trade has grown more rapidly than world production c. Globally, consumers now depend on foreign output for more than half their consumption d. Countries have increased their import restriction to counter the rising tide of imports
b. World trade has grown more rapidly than world production
213. A portfolio investment is a. a controlling financial interest in another company's equity portfolio b. a noncontrolling financial interest in another entity c. a controlling financial interest in a joint venture d. a controlling financial interest in another entity
b. a noncontrolling financial interest in another entity
84) Studies indicate a strong correlation between the intensity of religious belief and ________. a. a desire to convert productivity gains into more leisure time b. an adherence to some attributes that lead to economic growth c. the belief that material success is related to salvation d. the degree of ethnocentrism exhibited in a culture
b. an adherence to some attributes that lead to economic growth
93) In societies where trust is high, ________. a. people tend to be more future-oriented b. business costs are typically lower c. people tend to be more fatalistic d. family businesses are dominant
b. business costs are typically lower
91) Safe work environments motivate ________; challenges motivate ________. a. individualists; collectivists b. collectivists; individualists c. non-fatalists; fatalists d. materialists; non-materialists
b. collectivists; individualists
76) Cultural change imposed by an alien culture is called ________. a. multicultural ethnocentrism b. cultural imperialism c. collectivism d. high-context
b. cultural imperialism
200. Among the largest disputes during the Doha Round was that a. the WTO does not want the developing countries to liberalize their investment rules b. developing countries want a reduction in agricultural subsidies maintained by the developed countries c. developing countries want developed countries to better protect their intellectual property d. because of security issues, not all countries were able to attend the meetings, so it was impossible to get a consensus vote
b. developing countries want a reduction in agricultural subsidies maintained by the developed countries
223. According to the case BRICs: Vanguard of the Revolution the BRICs increasingly try to a. force he US to link the US$ to gold in accordance to the Bretton Woods Agreement b. erode the hegemony of the US$ c. promote the US$ in all international transactions d. make sure the US$ will gradually lose all its value
b. erode the hegemony of the US$
70) Certain attitudes can link groups, such as managers, from different nations more closely than managers within a given nation. As a result, international businesspeople should most likely ________. a. assume that there are few significant cultural differences among nations b. examine relevant groups when comparing nations c. adopt universal operating methods d. avoid cultural imperialism
b. examine relevant groups when comparing nations
111) When a company wishes to introduce change in a foreign country, its likelihood of success can most likely be improved by ________. a. introducing many changes simultaneously b. gaining the support of local opinion leaders c. agreeing to make some home-country changes in return d. employing expatriate managers to supervise local workers
b. gaining the support of local opinion leaders
233. In addition to protection, tariffs also serve as a source of ________. a. consumption promotion strategy b. governmental revenue c. subsidy for export parity d. subsidy for imports equivalence
b. governmental revenue
94) Expatriate managers located in cultures characterized by ________ have noticed that local employees are highly motivated by retirement programs. a. low uncertainty avoidance b. high future orientation c. low masculinity d. high power distance
b. high future orientation
216. Unemployed workers are likely to form a pressure group to support ________. a. import subsidies b. import restrictions c. export restrictions d. price limitations
b. import restrictions
207. The rationale for the infant-industry argument for trade protection is that a. incubator centers in which business, government, and academia cooperate will develop entrepreneurial companies b. it takes time for an industry to become competitive in world markets, so protection is needed to help this industry achieve increased economies of scale and greater worker efficiency c. lower restrictions should be placed on products coming from countries where a government has a large sphere of political influence d. a country should give one firm in an industry a perfect competition status so that it will grow large enough to be competitive internationally
b. it takes time for an industry to become competitive in world markets, so protection is needed to help this industry achieve increased economies of scale and greater worker efficiency
97) A culture in which people prefer to finish one task before starting another is most accurately characterized as which of the following? a. low-context b. monochronic c. pragmatic d. high power-distance
b. monochronic
224. Among the results of the Jamaica Agreement was to ________. a. establish a system based on par values b. permit greater exchange-rate flexibility c. set austerity measures for debt control d. implement fixed exchange rates
b. permit greater exchange-rate flexibility
235. The among the primary objectives/missions of the International Monetary Fund is to ________. a. foster the power of the foreign-exchange market b. promote international monetary cooperation and exchange-rate stability c. establish a unilateral system of payments d. encourage euro adoption and stability in the Euro Area
b. promote international monetary cooperation and exchange-rate stability
82) Which of the following is an example of an acquired group membership? a. national origin b. religion c. gender d. race
b. religion
103) Evaluating the importance of potential clients or partners by the way they dress is an example of using ________. a. pragmatism b. silent language c. polychronism d. fatalism
b. silent language
68) The nation offers a workable reference for studying cultural differences because ________. a. a nation contains only one distinct culture b. similarity among people is both a cause and effect of national boundaries c. the commonality of language within a nation eases the process of conducting surveys d. different groups within the same country always have more in common with each other than with groups in other countries
b. similarity among people is both a cause and effect of national boundaries
81) International businesspeople need to understand social stratification systems where they do business because ________. a. such systems reflect a culture's willingness to accept new products b. such systems indicate who people in a given culture will likely respect more c. the high similarity among countries lets firms effectively use global hiring practices d. what is an ascribed group membership in one country is an acquired one in another
b. such systems indicate who people in a given culture will likely respect more
210. Which of the following acts as a central banker's bank? a. the EMU b. the BIS c. the World Bank d. the IMF
b. the BIS
75) Creolization refers to ________. a. government efforts to maintain a distinct cultural identity through legislation and language b. the process of mixing elements of an outside culture with those of a national culture c. the use of stereotypes to describe a culture d. changes as cultures evolve over time
b. the process of mixing elements of an outside culture with those of a national culture
72) Which of the following is a reason for global companies to NOT take religious beliefs into account? a. Religion has an impact on almost every business function. b. A company could get in trouble with local religious authorities. c. A manager's religious training should be implemented in the company he/she manages. d. Religion may influence consumer behavior.
c. A manager's religious training should be implemented in the company he/she manages.
16) Imported flowers are now a stronger competitor to U.S grown flowers in the U.S market. Which of the following is likely the MOST important factor for the increase in imports? a. More effective production techniques b. Advances in communication systems c. Advances in transportation and logistics d. Cross-national cooperation
c. Advances in transportation and logistics
49) Although the U.S film industry depends heavily on revenue in foreign countries, revenue from international markets is usually low for a sports-themed film. This is most likely due to ________ factors a. Political b. Geographic c. Behavioral d. Legal
c. Behavioral
238. Which of the following countries are members of the BRICs? a. Bulgaria, Romania, Ireland, China b. Belize, Russia, Indonesia, Canada c. Brazil, Russia, India, and China d. Belgium, Russia, Indonesia, Canada
c. Brazil, Russia, India, and China
20) In a strategy known as _________, many new companies locate themselves near competitiors and suppliers a. Offshoring b. Franchising c. Clustering or agglomeration d. Exporting
c. Clustering or agglomeration
51) Some key _________ factors in a company's international business external environment are its product strategy and access to resources a. Geographical b. Political c. Competitive d. Behavioral
c. Competitive
12) Institutional development of services by business and government has aided the expansion of international business by___________ a. Providing a universally agreed upon language for conducting international transactions b. Removing immigration restrictions so that global firms can move personnel easily c. Developing means to ease the flow of goods among countries d. Spurring competition among domestic producers
c. Developing means to ease the flow of goods among countries
79) Which of the following statements about the English language is most likely NOT true? a. The largest portion of global output is in English-speaking countries. b. A large portion of MNEs are headquartered in English-speaking countries. c. English is the official national language in most countries where FDI is encouraged. d. Many MNEs from non-English speaking countries use English as their operating language.
c. English is the official national language in most countries where FDI is encouraged.
37) A firm is currently seeking resources from foreign countries. Which of the following is the LEAST likely reason for doing so? a. Manufacturing products at lower cost b. Gaining knowledge about a specific market c. Following a customer into the global market d. Differentiating its products from the competition
c. Following a customer into the global market
234. Which of the following assumptions was made in the original theories of absolute and comparative advantage? a. Specialized labor dynamics. b. Static production clusters. c. Full employment. d. Differentiated economics of scale networks.
c. Full employment.
36) Kevin, marketing manager of the North American Bowling League, has decided to televise major bowling competitions to viewers in multiple countries rather than only in Canada and the U.S. Which of the following goals would this most likely help Kevin accomplish? a. Acquiring new resouces b. Minimizing corporate risk c. Increasing sales and profits d. Obtaining competitive advantage
c. Increasing sales and profits
8) The shifting of national borders has most likely created which of the following situations for international business? a. It has left rural residents more isolated from technology b. It has complicated the understanding of behavioral factors affecting business c. It has increased physical barriers to exporting d. It has slowed communications between a company's headquarters and foreign operations
c. It has increased physical barriers to exporting
35) Assume that company executives at the firm would like to increase sales by expanding into an international market. Which of the following factors, if true, best supports a decision to expand sales globally? a. It can offshore most of its production b. It can obtain all of its recources from the same price overseas c. Its costs of making additional sales would not increase disproportionately d. The foreign market has higher real interest rates
c. Its costs of making additional sales would not increase disproportionately
39) An example of a U.S merchandise import is an automobile made in ____ and sold ____ a. The United States by a Japanese company; in the United States b. The United Stated by a Japanese company; outside the United States c. Japan by Japanese company; in the United States d. Japan by a U.S company; outside the United States
c. Japan by Japanese company; in the United States
44) Which term refers to two or more companies that share ownership of an FDI? a. Turnkey operation b. Transnational firm c. Joint venture d. Franchise
c. Joint venture
63) In terms of international business, it is most accurate to say that______ a. There is a universal "best way" to conduct business b. Global competition affects large companies but not small ones c. Most firms depend either on foreign markets and supplies or compete against companies that do d. Government regulation of international business has little effect on a company's profits
c. Most firms depend either on foreign markets and supplies or compete against companies that do
237. ________ is the risk that political decisions, events, or conditions will affect a country's business environment in ways that force investors to accept a lower rates of return, cost them some or all of the value of their investment, or threaten the sustainability of their operation. a. Transaction risk b. Operating risk c. Political risk d. Governmental risk
c. Political risk
67) Which of the following is a common shortcoming of studies examining culture in different countries and regions? a. Cultures are static, which leads researchers to draw false conclusions from old data. b. It is impossible to compare countries because of differences in data. c. Responses are reported in averages, which can lead to a belief in unrealistic stereotypes. d. People are reluctant to complain about their own cultures, so they present only positive opinions to researchers.
c. Responses are reported in averages, which can lead to a belief in unrealistic stereotypes.
230. Which of the following institutions is Iceland a member of? a. OPEC Fund for International Development b. Inter-American Development Bank c. The European Bank for Reconstruction and Development d. Asian Development Bank
c. The European Bank for Reconstruction and Development
219. All of the below institutions are part of the World Bank Group EXCEPT a. International Development Association, established in 1960. b. International Bank for Reconstruction and Development, established in 1944. c. The Multilateral Investment Fund, established in 1993. d. International Finance Corporation, established in 1956.
c. The Multilateral Investment Fund, established in 1993.
61) A flag of convenience is ________ a. A declaration that a product is made in a country that has easier legal access to a given foreign market b. A designation for products originating within a particular trading group c. The registration of a ship by a shipping company in a country that charges low taxes d. The indication that a shipping organization can sail in international waters
c. The registration of a ship by a shipping company in a country that charges low taxes
229. Globalization refers to a. The widening set of independent relationships among companies from different parts of the world b. The narrowing set of interdependent relationships among people from different parts of the usiness world c. The widening set of interdependent relationships among people from different parts of the world that happens to be divided into nations d. The widening set of interdependent relationships between international organizations located in different parts of the world
c. The widening set of interdependent relationships among people from different parts of the world that happens to be divided into nations
26) What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations? a. To gain an advantageous division of labour b. To be in compliance with United Nations rkequirements c. To attack problems jointly that one country acting alone cannot solve d. To assure that all countries get an equitable share of taxes from multinational enterprises
c. To attack problems jointly that one country acting alone cannot solve
112) If an MNE convinced a popular priest that its vitamin-enriched soft drink would benefit parishioners' health, the MNE would be using ________ to help bring about change. a. participation b. reward sharing c. an opinion leader d. materialistic motivation
c. an opinion leader
107) Ethnocentrism in international business refers to the ________. a. study of group ethics and approaches to corporate social responsibility b. comparison of the Protestant ethic with other religious views c. belief that what works best at home should work best everywhere d. ethnic segmentation of marketing programs within countries
c. belief that what works best at home should work best everywhere
232. A ________ results when free mobility of factors of production is added to a customs union. a. free customs area b. free trade agreement c. common market d. global trade agreement
c. common market
7) When divergent cultures come in contact, ________ occurs. a. power distance b. culture shock c. cultural collision d. group membership
c. cultural collision
74) Contact among countries brings about cultural change, which is a process called ________. a. cultural collision b. cultural imperialism c. cultural diffusion d. polycentrism
c. cultural diffusion
202. The Doing Business report 2017 measures regulations affecting 11 areas of the life of a business. Those include the following EXCEPT: a. getting electricity b. dealing with construction permits c. dealing with corruption d. registering property
c. dealing with corruption
208. According to the Product Life Cycle (PLC) theory, production is mainly in developing economies in which stage of the product life cycle? a. maturity b. growth c. decline d. introduction
c. decline
104) The term "cultural distance" refers to the ________. a. physical space between people during communication b. time it takes people to adjust to the language, traditions, and norms of a foreign culture c. degree to which countries differ on cultural dimensions d. preferred relationship between superiors and subordinates in a given culture
c. degree to which countries differ on cultural dimensions
212. Fully convertible currencies are also called ________. a. soft currencies b. unlimited currencies c. hard currencies d. external currencies
c. hard currencies
89) Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges? a. collectivism b. democracy c. individualism d. anarchy
c. individualism
106) One of the potential problems for an MNE that practices too much polycentrism is ________. a. demanding that local communication methods be replaced with modern technology b. underestimating the complexity of introducing new management practices c. losing innovative capabilities to less-risky host-country practices d. relying too much on home-country directions and policies
c. losing innovative capabilities to less-risky host-country practices
85) According to the theory of success and reward expectation, the greatest enthusiasm for work generally occurs when there is a ________ certainty of success combined with a ________ reward for success compared to the reward for failure. a. high; high b. high; low c. low; high d. low; low
c. low; high
228. A(n) ________ is the right, but not the obligation, to trade a foreign currency at a specific exchange rate. a. offer b. bid c. option d. forward rate
c. option
217. A(n) ________ ideology stipulates how society ought to govern itself and outlines the methods by which it will do so. a. economic b. legal c. political d. technological
c. political
99) The attempt to resolve small issues before principles is a characteristic of which of the following? a. relativism b. monochronic behavior c. pragmatism d. uncertainty avoidance
c. pragmatism
101) When a company does business in another country whose official language is the same as its home country's, the company should most likely ________. a. assume that communications will go smoothly b. use back-translation on all written documents c. realize that words may have different meanings d. assume that word meanings are the same despite spelling differences
c. realize that words may have different meanings
220. Communism primarily relies on ________. a. market-generated supply and demand b. private business ownership c. state ownership of resources d. competitive pricing and marketing
c. state ownership of resources
227. In the foreign-exchange market, the bid is the price at which ________. a. the dealer is willing to sell foreign currency b. the dealer is willing to swap foreign currency c. the dealer is willing to buy foreign currency d. the dealer trader earns a profit
c. the dealer is willing to buy foreign currency
92) Managers should be more precise in their directions to subordinates when ________. a. the company has a philosophy of geocentrism b. the society believes age equals wisdom c. uncertainty avoidance is high d. power distance is low
c. uncertainty avoidance is high
27) Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization? a. A large country on which they depend may pressure them on political matters b. A large international firm may dictate its terms of operations in a small country c. A large company may exploit legal loopholes to avoid tax payments d. A large country may substaintially increase its demand for the small country's production
d. A large country may substaintially increase its demand for the small country's production
53) A computer firm has high foreign sales in Asia and wants to expand sales in Europe. Which of the following statements provides the most appropriate advice for Elway executives? a. Although countries market sizes differ, companies usually face about the same number of competitors in each national market b. In most industries, companies face the same competitors in each country where they operate c. It takes about the same amount of resources to gain national distribution in one country versus another d. Being a leader in one country does not guarantee market leadership in another country
d. Being a leader in one country does not guarantee market leadership in another country
19) A company starting out with a global focus, usually because of the international experience of its founders, is called a______ a. Multinational enterprise b. Transnational company c. Strategically allied company d. Born-global company
d. Born-global company
225. MIGA can provide guarantees against all of the below risks EXCEPT a. Expropriation. b. Wars and civil disturbance. c. Transfer restriction and currency inconvertibility. d. Commercial risk.
d. Commercial risk.
11) Which of the following has NOT been a major force increasing globalization in recent decades? a. Liberalization of cross-border trade b. Increase in and expansion of technology c. Growing pressure from consumers d. Decreasing prices of natural resources
d. Decreasing prices of natural resources
50) In addition to understanding the laws affecting business in countries where their companies operate, it is most important for managers to understand the _______ a. Methods for appointing local judges b. Ethical rationale behind the laws c. History of the local legal system d. Degree of law enforcement
d. Degree of law enforcement
236. ______________ countries/people account for the largest percentage of world output (production). a. Mandarin-speaking b. Spanish-speaking c. French-speaking d. English-speaking
d. English-speaking
18) Which of the following best explains recent governmental relaxation of restrictions on cross-border trade or resource movements? a. Most countries face shortage of workers, so they seek immigrants who help them produce more b. Governments believe that this will decrease the need to make their own companies more innovative c. Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary d. Governments believe that domestic producers will become more efficient as a result of foreign competition
d. Governments believe that domestic producers will become more efficient as a result of foreign competition
29) Limitation of loggin in the Amazon region is generally viewed as environmentally beneficial for the planet as a whole; however, unemployed Brazilian workers have felt that job creation inside Brazil is more important than climate protection outside Brazil. This example best illustrates which of the following? a. Why smaller countries are concerned that large international companies are powerful enough to dictate operating terms b. Why globalization is needed to foster uniform standards for combating environmental problems c. How cultural homogeneity threatens the cultural foundation of smaller nations d. How global interests can conflict with a country's local interests
d. How global interests can conflict with a country's local interests
211. Commercial transactions that take place between two or more countries are best described as a. Unilateral investment flows b. Semi domestic transactions c. Bilateral countertrade d. International business
d. International business
59) The owner of a U.S football team and the owner of a Canadian hockey team purchase a British soccer team. This is an example of a _______ a. Royalty b. Portfolio investment c. Turnkey operation d. Joint venture
d. Joint venture
218. According to the Doing Business report 2017, which country topped the global ranking on the ease of doing business? a. Norway b. Singapore c. Denmark d. New Zealand
d. New Zealand
55) The view that globalization is inevitable is most likely based on the belief that ______ a. International organizations will replace nation-states b. Protesters against globalization will be persuaded to change their views c. People want more global homogeneity of cultures d. Technical advances in transportation and communications are higly persistent
d. Technical advances in transportation and communications are higly persistent
116) In the opening case on the Java Lounge in Saudi Arabia, Saudi businessmen engaged in chit-chat while drinking coffee at a café during the conduct of business. Which of the following was the most likely reason for their behavior? a. They are fatalistic, believing that the business outcome was predetermined. b. Their religious convictions kept them from discussing business over alcoholic drinks. c. They come from a polychronic culture that prefers to multitask. d. They come from a high-context culture in which small talk and seemingly unrelated information is important to decision making.
d. They come from a high-context culture in which small talk and seemingly unrelated information is important to decision making.
23) Which of the following is NOT one of three main reasons affecting international business for governments to cooperate with each other? a. To attack problems jointly that one country acting alone cannot solve b. To deal with issues that lie outside the territory of any nation c. To gain reciprocal advantages d. To establish a common language
d. To establish a common language
41) An example of a Japanese service export is a visit by a _________ a. Japanese citizen to Disneyland in the United States b. Japanese citizen to the Japan Pavilion at Epcot Center in the United States c. U.S. citizen to the Japan Pavilion at Epcot Center in the United States d. U.S citizen to Tokyo Disneyland in Japan
d. U.S citizen to Tokyo Disneyland in Japan
45) A multinational enterprise (MNE) is best defined as a firm _______ a. That is member of the Fortune 500 b. With foreign business partners c. Involved in global franchising d. With foreign direct investments
d. With foreign direct investments
73) Most people's basic value system is ________. a. modified significantly between childhood and adulthood b. altered during adulthood through imposition c. affected primarily by teenage peer pressure d. acquired mainly during early childhood
d. acquired mainly during early childhood
83) The more closed a society is, the more important ________ group membership is. a. acquired b. age-based c. education d. ascribed
d. ascribed
119) Assume a U.S. firm plans to expand into Mexico, Germany, or Japan. Its executives are traveling to each country to meet with local businesspeople in the decision-making process. Which of the following would be LEAST beneficial when the executives make a presentation? a. requesting a translator with technical vocabulary knowledge b. simplifying vocabulary and terminology for the audience c. conducting back translations for written work d. avoiding repetition to prevent boredom
d. avoiding repetition to prevent boredom
102) Jack, an American accounts manager, is preparing a presentation for a group of Japanese business people. Jack's presentation would be most effective if he ________. a. told an opening joke to put everyone at ease b. used slang to create an informal atmosphere c. used long words to impress his counterparts d. budgeted extra time for translation and clarification
d. budgeted extra time for translation and clarification
115) American hamburgers, Japanese sushi, Italian pizza, Mexican tacos, and Middle Eastern pita bread are now commonly found in most countries. This best supports the argument that ________. a. although visible expressions of culture are becoming homogenized, basic differences in societal values remain strong b. globalization fulfills lower order needs in Maslow's hierarchy c. cultural imperialism is increasingly widespread d. cultural hybridization is occurring
d. cultural hybridization is occurring
113) U.S. companies monopolize much of the international entertainment media, which largely portrays U.S. products and lifestyles as glamorous and appealing. This situation would most likely be used as an example of ________ . a. the stronger work ethic typical of developed countries b. the spread of high-context cultures c. cultural fragmentation d. cultural imperialism
d. cultural imperialism
226. Which of the following factors has NOT contributed to the growth of globalization in recent decades? a. liberalization of cross-border trade and resource movements b. increase in and application of technology c. development of services that support international business d. decrease in cross-national cooperation
d. decrease in cross-national cooperation
108) The approach a company takes when it bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints is called ________. a. polycentrism b. ethnocentrism c. neocentrism d. geocentrism
d. geocentrism
90) Assume a firm has operations in Tokyo, where there is a collectivist culture. Which of the following would most likely motivate the firm's Japanese employees? a. "employee-of-the-month" programs b. extensive vacation time c. on-the-job challenges d. good health benefits
d. good health benefits
96) In a(n) ________ culture, people tend to regard seemingly peripheral information as pertinent to decision making and infer meanings from things that people say either indirectly or casually. a. pragmatic b. idealistic c. fatalistic d. high-context
d. high-context
110) Organizing work differently to improve productivity will likely fail ________. a. if the work force has a low tolerance for authoritarianism b. if workers participate in planning the improvement c. unless changes are compatible to competitor's practices d. if changes interfere with strongly held value systems
d. if changes interfere with strongly held value systems
206. An economic system whereby individuals, rather than the government, make most of economic decisions is commonly referred to as a ________. a. private economy b. mixed economy c. command economy d. market economy
d. market economy
80) Although English is referred to as the "international language of business,"________. a. it is less frequently used than French in international business b. there is a growing disagreement over which version of English to use, e.g. British, American, or Australian c. companies headquartered outside English-speaking countries all use their official language as their operating language d. monolingual English speakers may experience more difficulty in the future in communicating on a worldwide basis
d. monolingual English speakers may experience more difficulty in the future in communicating on a worldwide basis
109) A firm that concentrates on national cultural differences in terms of averages is more likely to ________. a. underestimate market demands b. increase political risks c. seek cultural collision d. overlook outliers
d. overlook outliers
203. The predominant share of counterfeit products is made in countries in which ________ prevails. a. religious doctrine b. the rule of law c. corporate precedent d. the rule of man
d. the rule of man prevails
71) It is most accurate to say that within most nations' borders, people largely share such essential attributes as ________ and ________. a. work attitudes; occupations b. lifestyles; education level c. education level; ethnicity d. values; language
d. values; language
69) A problem of using the nation as a reference point for culture is that ________. a. nations fail to mediate the different interests within their boundaries b. self-stereotypes tend to fall along national lines c. such an approach tends to be polycentric d. variations tend to be great within a country (state)
d. variations tend to be great within a country (state)
87) Based on the hierarchy-of-needs theory, in which of the following would fulfillment of lower-order needs be the best motivator? a. wealthy countries b. Protestant countries c. high femininity countries d. very poor countries
d. very poor countries
