Chapter 2: The Political, Legal and Technological Environment

In the context of technological advancements, outsourcing, and offshoring, identify a way in which the new technological environment impacts multinational corporations and societies as a whole. A. A decline in the cost of doing business worldwide B. Price rise due to cost of equipment C. Elimination of higher-priced labor D. Replacement of employees by machines

A. A decline in the cost of doing business worldwide

Identify a characteristic of social democracy. A. Achievement of goals through nonviolent revolution B. Transference of ownership of a business from individuals to a government C. Loyalty of an individual toward his or her nation D. Complete control over every facet of political and human life

A. Achievement of goals through nonviolent revolutio

The most popular form of e-business is for _____. A. B2B dealings B. B2C dealings C. financial dealings D. e-retailing

A. B2B dealings

In the context of bureaucratization, which of the following statements is true of Japan? A. Government controls are inefficient and need to be corrected to encourage multinational corporations to do business. B. Politicians are more interested in the long-term well-being of the nation as a whole than in the well-being of their own districts. C. Parochial actions are highly unlikely to create problems for multinational corporations trying to do business. D. The banking system is expansionary, and there is very little room for reformation.

A. Government controls are inefficient and need to be corrected to encourage multinational corporations to do business

In the context of offshoring, which of the following factors has placed pressure on multinational corporations to outsource production? A. Mounting cost pressure B. Lack of cheap and expert labor C. Global and internal competition D. Profit expectation by governments

A. Mounting cost pressure

. According to the World Bank, which of the following economies does not rank high on the ease-of-doing-business index? A. The Philippines B. Singapore C. The United Kingdom D. The United States

A. The Philippines

. Which of the following statements is true of democracy? A. The government is controlled by the citizens either directly or through elections. B. Once elected, a representative can no longer be held accountable for his or her actions. C. Impartial public service restricts freedom of expression and assembly. D. Once elected, a representative cannot be reelected.

A. The government is controlled by the citizens either directly or through elections.

Under the _____, all acts of other governments are considered to be valid by U.S. courts, even if such acts are inappropriate in the United States. A. act of state doctrine B. act of international civility C. act of judicial sovereignty D. act of international understanding

A. act of state doctrine

In the context of telecommunications, governments are accepting the belief that the only way to attract foreign investment and know-how in telecommunications is to: A. cede control to private industry. B. get cheaper service providers. C. get cheap and efficient labor. D. get private partners.

A. cede control to private industry.

Many foreign governments applauded the investigations under the Foreign Corrupt Practices Act (FCPA) because it helped them: A. crack down on corruption in their own country. B. reduce internal political problems for U.S. allies. C. reduce the risks associated with the derivatives activities of banks. D. restrict the courts from fining and not imprisoning corrupt parties.

A. crack down on corruption in their own country.

When compared with domestic law, international law is less coherent because: A. it contains unwritten understandings that arise from repeated interactions among nations. B. its sources embody only the laws of individual countries concerned with disputes. C. its sources embody only the treaties and conventions of individual countries concerned with any dispute. D. it is derived from the Marxist socialist system and is highly influenced by the regulations prevalent in former communist countries.

A. it contains unwritten understandings that arise from repeated interactions among nations.

In the context of technological advancements, emerging information technology has made work _____. A. more portable B. more risky C. more tedious D. more complicated

A. more portable

Adopters of individualism adhere to the philosophy that: A. people should be free to pursue economic and political endeavors without constraint. B. government interest should solely influence individual behavior. C. communism in its extreme form is realized through violent revolution. D. the needs and goals of society at large are more important compared to individual desires.

A. people should be free to pursue economic and political endeavors without constraint.

The _____ holds that governments have the right to rule themselves as they see fit. A. principle of sovereignty B. nationality principle C. territoriality principle D. protective principle

A. principle of sovereignty

U.S. laws require equality in the workplace for all employees. U.S. citizens who take a job in Germany cannot sue their German employer under the provisions of U.S. law for failure to provide equal opportunity for them. This exemplifies the: A. principle of sovereignty. B. nationality principle. C. doctrine of comity. D. act of state doctrine.

A. principle of sovereignty.

29. Political repression and denial of rights and civil liberties are dominant ideals of _____. A. totalitarianism B. a socialist democracy C. collectivism D. a monarchy

A. totalitarianism

. An act that makes it illegal to influence foreign officials through personal payment or political contributions is referred to as the _____. A. Fairness in International Affairs Act B. Foreign Corrupt Practices Act C. Global Ethics Act D. Fair Treatment of Foreign Citizens Act

B. Foreign Corrupt Practices Act

Identify a correct statement about cellular infrastructure. A. It is expensive to install. B. It is quick and relatively inexpensive to install. C. It is relatively inexpensive to install but takes time. D. It cannot be installed easily and cost-efficiently in rural areas.

B. It is quick and relatively inexpensive to install

In the context of technological advancements, outsourcing, and offshoring, multinational corporations have moved certain production activities overseas to capitalize on _____. A. increasing costs B. cheap labor resources C. larger markets D. higher purchasing power

B. cheap labor resources

. The area of e-business that will most affect global customers is _____. A. e-marketing B. e-retailing and financial services C. retailing D. internet sales

B. e-retailing and financial services

In the context of the four foundations on which laws are based around the world, civil or code law: A. comes from the Marxist socialist system. B. is derived from Roman law. C. is the foundation of the legal system in the United States. D. continues to influence regulations in former communist countries.

B. is derived from Roman law.

In the context of bureaucratization, Japanese businesses are becoming aware of the fact that: A. they are heavily dependent on their local market for maximum number of goods and services. B. local consumers are paying a heavy price due to the bureaucratic red tape. C. government bureaucracy has created a true sense of security. D. they are well prepared to face the harsh competitive realities of the international marketplace.

B. local consumers are paying a heavy price due to the bureaucratic red tape.

In the context of offshoring, some informed observers note that technology already has eliminated much and in the future will eliminate even more of the work being done by: A. top level managers. B. middle managers and white-collar staff. C. maintenance workers. D. line employees and service staff.

B. middle managers and white-collar staff.

The _____ holds that every country has jurisdiction (authority or power) over its citizens no matter where they are located. A. doctrine of comity B. nationality principle C. territoriality principle D. sovereignty principle

B. nationality principle

. U.S. multinational corporations always assumed that bribes were required to ensure contracts in _____. A. India B. the Middle East C. Asia Pacific D. Eastern Europe

B. the Middle East

A firm in the country of Batangonia that sells secret government blueprints of the country of Cambrialand for a satellite system can be subjected to the Cambrialand laws. This scenario exemplifies _____. A. the nationality principle B. the protective principle C. socialist law D. Islamic law

B. the protective principle

Which of the following is one of the biggest problems in Russia and in other transition economies? A. Social democracy B. Privatization C. Corruption D. Nationalization

C. Corruption

In the context of e-business, the term e-cash stands for _____. A. Easy cash B. Export cash C. Electronic cash D. Exchange cash

C. Electronic cash

. Identify a true statement about civil law. A. It comes from English law and is found in nonsocialist countries. B. It is found in most Islamic countries in the Middle East and Central Asia. C. It is derived from Roman law and is found in the non-Islamic and nonsocialist countries. D. It is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and other nations.

C. It is derived from Roman law and is found in the non-Islamic and nonsocialist countries.

31. Which of the following statements is true about totalitarianism? A. The government is controlled by the citizens either directly or through elections. B. Individual freedoms, such as freedom of expression and assembly, are secured. C. Power is often maintained by suppression of opposition, which can be violent. D. A representative party needs to strictly adhere to the goals of the majority ruling.

C. Power is often maintained by suppression of opposition, which can be violent.

In the context of the trends in technology, communication, and innovation, the creation of a digital framework: A. made business communication vastly more expensive. B. made the microprocessor obsolete. C. allowed high-power computer performance at low cost. D. required satellites for all forms of communication.

C. allowed high-power computer performance at low cost.

The Hong Kong office of Salomon Brothers, a U.S. investment bank, estimates that to meet the expanding demand for telecommunication service in Asia, companies will need _____. A. cheaper technology B. cheap and efficient labor C. considerable increase in investment D. cheaper service providers

C. considerable increase in investment

4. Philosophers such as David Hume, Adam Smith, and Aristotle contributed to the ideology of _____. A. socialism B. collectivism C. individualism D. communism

C. individualism

In the context of the treatment and rights of aliens, countries have the legal right to refuse admission of foreign citizens and to impose special restrictions on all of the following except _____. A. conduct B. right of travel C. spending D. what business they may conduct

C. spending

The _____ holds that every nation has the right of jurisdiction within its legal territory. A. sovereignty principle B. protective principle C. territoriality principle D. nationality principle

C. territoriality principle

A firm based in the country of Iskoolbia that sells a defective hair dryer in the country of Octavia can be sued under Octavian law even though the company is headquartered outside Octavia. This scenario exemplifies _____. A. socialist law B. the nationality principle C. the territoriality principle D. Islamic law

C. the territoriality principle

. _____ comes from English law and is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and others. A. Civil or code law B. Islamic law C. socialist law D. Common law

D. Common law

Which of the following industries would constitute the white-collar service industries? A. Steel and autos B. Agriculture C. Insurance only D. Insurance and banks

D. Insurance and banks

Aspects and degrees of the totalitarian form of government are still found in: A. Singapore and Cambodia. B. Germany and Italy. C. Latin America only. D. Vietnam, Cuba, and North Korea.

D. Vietnam, Cuba, and North Korea.

Critics of the Foreign Corrupt Practices Act feared the loss of sales to foreign competitors, especially in those countries where: A. customs are rigidly followed. B. political stability exists. C. common law is applicable. D. bribery is an accepted way of doing business.

D. bribery is an accepted way of doing business.

In a business context, individualism is synonymous with _____. A. collectivism B. socialism C. totalitarianism D. capitalism

D. capitalism

In the context of technological advancements, outsourcing, and offshoring, low-paid workers in India and Asian countries now are being given subcontracted work such as _____. A. insurance jobs B. auto industry jobs C. labor-intensive hardware development jobs D. code-writing jobs

D. code-writing jobs

The _____ holds that there must be mutual respect for the laws, institutions, and the government of other countries in the matter of jurisdiction over their own citizens. A. doctrine of protectionism B. doctrine of civility C. doctrine of mutual understanding D. doctrine of comity

D. doctrine of comity

In the context of socialism, Karl Marx believed that: A. businesses should benefit at the expense of laborers. B. only a few individuals should benefit from businesses. C. societal classes should exist. D. governments should own businesses.

D. governments should own businesses.

The most important dimension of the technological environment facing international management today is _____. A. telecommunications B. transportation C. agricultural mechanization D. improved service technologies

D. improved service technologies

. Since the passage of the Foreign Corrupt Practices Act (FCPA), investigations reveal that: A. U.S. exports to "bribe prone" countries decreased significantly. B. the act was unsuccessful in removing bribes as a key competitive tool from the Middle East. C. the act allowed the courts to fine but not imprison guilty parties. D. individual executives started getting increasingly targeted apart from corporations.

D. individual executives started getting increasingly targeted apart from corporations.

In the context of collectivism, the Greek philosopher Plato believed that: A. individual desires should be viewed as the most important. B. a classless society would help keep people focused on societal goals. C. individual rights should be secured. D. property should be commonly owned.

D. property should be commonly owned

. The _____ holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country. A. territoriality principle B. nationality principle C. sovereignty principle D. protective principle

D. protective principle

Keith, a manager in the country of Bodonia, violates a Bodonian law while traveling abroad. He can still be found guilty in Bodonia. This scenario exemplifies _____. A. socialist law B. Islamic law C. the principle of sovereignty D. the nationality principle

D. the nationality principle

In the context of the four foundations on which laws are based around the world, Islamic law is derived from: A. the Marxist socialist system. B. Roman law. C. the ideologies of the Greek philosopher Prophet Farooq. D. the teachings of the Prophet Muhammad.

D. the teachings of the Prophet Muhammad.

. Biotech companies mainly manufacture drugs through a process similar to that of organic chemistry and are unable to discover genetic abnormalities.

FALSE

. Collectivism emerged in Poland and France as "national socialism."

FALSE

4. Nationalization is an ideal in and of itself whereby an individual is completely loyal to his or her nation.

FALSE

A form of totalitarianism, sometimes referred to as "right-wing," allows for both economic and political freedoms.

FALSE

Common law is derived from Roman law and is found in non-Islamic and nonsocialist countries such as France, some countries in Latin America, and even Louisiana in the United States.

FALSE

Communism is an authoritarian political ideology that considers individual and other societal interests inferior to the needs of the state

FALSE

Fascism is an extreme form of socialism that was realized through violent revolution and was committed to the idea of a worldwide communist state.

FALSE

In the context of the trends in technology, the open-source model restricts free and legal sharing of software and code to prevent underdeveloped countries from gaining competitive advantage while minimizing costs.

FALSE

Individualism views the needs and goals of society at large as more important than individual desires.

FALSE

The doctrine of civility holds that there must be mutual respect for the laws, institutions, and governments of other countries in the matter of jurisdiction over their own citizens.

FALSE

. A vast network of fiber-optic cables that are used for almost all transoceanic communication lead to a great deal of system vulnerability.

TRUE

. Essentially, every citizen should be involved in decision-making processes in a democratic system.

TRUE

Both domestic and international political environments have a major impact on multinational corporations.

TRUE

Socialism is a broad political movement, and in modern times, it branched off into two extremes: communism and social democracy

TRUE

The Foreign Corrupt Practices Act (FCPA) is an act that makes it illegal to influence foreign officials through personal payment or political contributions

TRUE

The doctrine of comity holds that there must be mutual respect for the laws, institutions, and governments of other countries in the matter of jurisdiction over their own citizens.

TRUE

The nationality principle is a jurisdictional principle of international law that holds that every country has jurisdiction over its citizens no matter where they are located.

TRUE

The protective principle is a jurisdictional principle that holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country.

TRUE

The territoriality principle is a jurisdictional principle that holds that holds that every nation has the right of jurisdiction within its legal territory.

TRUE

The most common form of totalitarian government is communist totalitarianism.

TURE