econ exam #2
To shift a country's production possibility frontier outward, it is necessary to
increase the stock of the country's resources. increase the efficiency with which resources are used.
russians tend to rank ____ on individualism and _____ on uncertainty avoidance
low;high
In traditional British society, a school teacher would have been part of the _____ class.
lower-middle
What helps managers walk away from a decision that is profitable, but not ethical?
moral courage
Some countries specialize in manufacturing a particular product (such as cars) for which the global market can only support a limited number of firms. This is a reflection of _____.
new trade theory
Rights that are taken for granted in developed nations, such as freedom of association and freedom of speech are....
not universally accepted.
The generally accepted principles and values that govern interactions between individuals are called
personal ethics.
When discussing constant returns to specialization, it is realistic to assume that the units of resources required to produce one unit will _____ no matter where a country is on the production possibilities frontier.
remain the same
James is an expatriate from Nebraska managing a tech support center in India. He is a firm believer in the minimum wage and treating employees fairly. Yet he sees his assistant manager firing an employee and hiring his neighbor to do the job at a lower rate. Knowing this would never be accepted in the United States, James confronts his assistant manager, claiming this behavior isn't right. He is displaying the ______ approach to ethics.
righteous moralist
True or false: Economic advancement and globalization may be important factors in societal change.
true
True or false: Education provides a competitive economic advantage through the creation of a pool of skilled and educated workers.
true
t/f: countries with high levels of individualism tend to be western countries
true
There is a connection between culture and competitive advantage. What are two reasons why this connection is important?
-This connection can affect the choice of countries to do business in and locate production facilities in. -The connection suggests which countries might produce the most viable competitors.
What are three sources of economies of scale?
-the ability of large-volume producers to use more specialized equipment -the ability of large-volume producers to use more effective, specialized employees -spreading fixed costs over a larger volume
What is the final step companies should take when assessing ethical issues?
Audit the company's decisions
Example of Mercantilism
Britain wants to accumulate as much wealth from trade as possible at the expense of France, Spain, and the Netherlands
What are two reasons diminishing returns to specialization occur?
Different goods use resources in different proportions. Not all resources are of the same quality.
What concept negates the idea that a country can specialize to the degree suggested by the Ricardian model?
Diminishing returns
Which congressional act outlaws the payment of bribes to foreign government officials to gain businesses?
Foreign Corrupt Practices Act
In some cultures, people are more willing to work hard to achieve material wealth and may have to wait years before feeling they have succeeded. This is a reflection of which dimension identified by Hofstede?
Long-term versus short-term orientation
Which theory does NOT support unrestricted free trade between countries?
Mercantilism
What are four determinants of ethical behavior?
Organizational culture Societal culture Personal ethics Leadership
What are three examples of the "hidden curriculum" of schools?
Respect for others Obedience to authority Dealing with competition
______ is the Hofstede dimension that measures a society's tolerance for ambiguity and uncertainty.
Uncertainty avoidance
What are the four dimensions originally identified by Hofstede?
Uncertainty avoidance, Masculinity versus femininity, power distance, and individualism vs collectivism
______ ethics measure actions on a cost-benefit scale.
Utilitarian
The most rigid form of social stratification is the _____ system.
caste
Ricardo's theory of comparative advantage assumes ______ returns to scale.
constant
The belief that ethics are culturally determined and a firm should adopt the ethics of the country it is doing business in is
cultural relativism.
The reductions in the cost of a single unit that result from large scale output of that product are called
economies of scale
The accepted principles of right and wrong that guide a person's decisions are called _____.
ethics
Based on the theories of Smith, Ricardo, and Heckscher-Ohlin, in a country with access to cheap labor, productive land, and diverse plant life, it makes sense to _____ agricultural goods.
export
Customers, suppliers, and unions are all examples of
external stakeholders
Monica asked her manager if appropriate dress for the meeting was business casual or traditional business. Monica is inquiring about the ______ associated with the meeting
folkway
CSR (Corporate Social Responsibility)
A business's concern for the welfare of society.
Which statement BEST reflects the implications of cultural differences for business?
A company may need to vary management processes by country as a result of local cultural differences.
which scenario best represents a mores violation?
Bribing a government official in a country where bribery is illegal.
According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making? (Check all that apply.)
Favor hiring and promoting of people with a sense of personal ethics. Implement decision-making processes that consider ethical aspects of business decisions. Build an organizational culture that values ethical behavior.
What is the likely result for the gains from specialization according to the concept of diminishing returns?
Gains are likely to be exhausted before specialization is complete.
Which two of Hofstede's dimensions are present in countries where ethical practices are commonly practiced?
High in uncertainty avoidance High in individualism
What assumption does the Ricardian model of comparative advantage make in terms of converting resources?
It assumes that all resources can easily shift from one thing to another.
Which of Hofstede's dimensions focuses on delaying gratification of material needs?
Long-term versus short-term orientation
What is an accurate description of developed nations with regard to the environment?
They have more substantive environmental regulations.
Which ethical theory emphasizes that the best actions are those that benefit the most number of people and harm the least number of people?
Utilitarianism
A person who follows the idea of _____ says that the multinational's home-country standards of ethics are the appropriate approach to follow in foreign countries.
a righteous moralist
The mercantilist doctrine promoted government intervention in order to achieve
a surplus in the balance of trade
When a country is more efficient at producing a product than any other country, the country has a(n) ______ advantage in the production of that product.
absolute
Some ethics experts have proposed practical guides or ethical ______ to make ethical decisions in a systematic way.
algorithms
which of the following countries seem to follow a neo mercantilist policy
china
In the past, there has been a mutual lack of respect between upper management and working-class employees at British companies. This lack of respect was the result of the perception that those in upper management were a "step above" the employees. This perception was a reflection of _____.
class consciousness
ghana had an absolute advantage in what
cocoa and rice
Hofstede studied how ______ relates to values in the workplace.
culture
The Foreign Corrupt Practices Act was amended to include _____ because some U.S. businesses complained the act would put U.S. firms at a competitive disadvantage.
facilitating payments
according to the video with geert hofstede, the terms collectivism and individualism were first used
for political ideologies
within the context of the individual as the basic unit of a social organization, what is a manifestation of the emphasis on individualism in many western societies?
high degree of managerial mobility between companies
The factor that impacts all the theories of trade because companies should produce where it is most efficient is
location
Samuelson is concerned that advances in communications technology will result in the
offshoring of service jobs
What is the focus of Hofstede's power distance dimension?
people are not equal in their their physical capabilities
A(n) _____ strategy helps a company make good profits but does so without harming the environment.
sustainable
kellen builders decides to move production to a developing country where they are free to pump pollutants into the atmosphere without legal restriction. by doing this, the company is contributing to....
the global tragedy of the commons
True or false: Companies can use psychological tests in the hiring process to help identify people who have a strong sense of personal ethics.
true
True or false: Historically, the British class system prevented people from moving up in society.
true
In the 1980s, Western businesses questioned the ethics of operating in South Africa because the apartheid system in place there
violated basic human rights
What are three principles of social stratification?
It carries over to the next generation. It is generally universal. It involves beliefs as well as inequality.
Heckscher-Ohlin Theory
comparative advantage arises from differences in national factor endowments
Ethical issues arise in international business when
environmental regulations in host nations are less stringent than those in the home country.
Portugal can produce wine and cloth with less labor than England. But, given all factors of production, England can produce cloth relatively better than Portugal. According to Ricardo's theory of comparative advantage, it make sense for England to
export cloth and import wine from Portugal.
According to Hofstede, if the ties between people are loose, it is most likely a sign of a(n) ______ society.
individualistic
Company "ABC" employees are pleasantly surprised by the way motivation and initiatives are being recognized after they were acquired by company EFG
organizational culture
When making ethical decisions, ______ factors are stressed in Japan, while ______ factors are more important in the United States.
organizational; individual or personal
In the ______ dimension identified by Hofstede, the degree of power and wealth is not balanced within a country. Multiple choice question.
power distance
Certain theories accept that there are rights, both positive and negative, that all humans have simply because they are human. These are called ______ theories.
rights
the approach to business ethics that would encourage western businesses to question the ethics of continuing to operate within this environment is
rights theories
the friedman doctrine claims
the social responsibility of business is to increase profits as long as the company stays within the rules of the law
