Global Environment of Business Test 1

Which of the following is not one of the steps in a shift toward a market-based economy:

A stable price of petroleum and other natural resources

________________________ is a course of action that does not violated accept...

An ethical strategy

Which of the following is an example of an ethical dilemma?

Child labor in a South East Asian country

Totalitarianism is a political system in which one person or political party exercises recognized.

Communist, theocratic, tribal and right-wing.

Which of the following is not one of the three broad types of economy systems:

Entrepreneurial economy

"Drivers of Globalization" refer to financial and innovative multinational firms seeking new markets for investment or market growth is today's world market system. T or F?

False

Cross-cultural literacy explains why people wear blue jeans, eat American fast food, drink Coca Cola and love Hollywood. T or F?

False

Culture is pervasive, and scholars agree on its definition and implications. T or F?

False

Despite the different kinds of legal systems, the UN Convention on Contracts for international trade used by companies in all countries. Tor F?

False

Economic risks are the most important basis for planning any business venture offshore... T or F?

False

Globalization of markets recognizes the importance of historically distinct and separate national markets as being more important that one huge global marketplace. T or F?

False

In Islamic countries usury or interest on money presents no problem for international usury payments. T or F?

False

In the 1990s, Nike applied similar ethical standards for its overseas employees here in the US primarily to protect its good name, thus becoming one of the ethics. T or F?

False

Kantian ethics is a contemporary approach as it focuses on people as in... T or F?

False

Large multinational companies, because of their available resources, constitute the majority of U.S. exporting firms over midsize or small companies. T or F?

False

Speed up payments violate the US Foreign Corrupt Practices Act when made by... T or F?

False

Terrorism remains a significant threat and issue for governments, but it has little... T or F?

False

The "Friedman Doctrine" is that the only corporate social responsibility is to... T or F?

False

The British are famous for their historically class-based definition of social membership; these divisions are only recently overcome in business management and labor for Britain to be competitive globally. In fact, British business relations between managers and employees are less case for America as "class-based" distinctions recedes. T or F?

False

The Sullivan principles, drafted by Leon Sullivan of GM/s Board of Directors... T or F?

False

The U.S. Foreign Corrupt Practices Act makes it illegal for foreign businesses to... T or F?

False

The emphasis on wealth creation that is embedded in Protestant is also found in Buddhism, which suggests that a Buddhist society may ground for entrepreneurial activity. T or F?

False

The stock of foreign investment has become one of the most actively traded securities in world financial markets, including the New York Stock Exchange: T or F?

False

Early entrants to a market are called:

First movers

__________________ is when a firm invests resources activities outside its home country.

Foreign direct investment

Which of the following is not true about Gross National Income (GNI)?

GNI is the only reliable and accurate way to compare countries...

Which of following reflects the trends of the global economy in the 21st Century?

Globalization is not inevitable

_________________ is (are) the sourcing of goods and services form locations world-wide in seeking advantage of national differences and form of competitive advantage.

Globalization of production

Max Weber coined the term "Protestant work ethic" to explain why some Protestant Northern European countries were wealthier than some European countries from the 16th century forward. Weber's assertions unfairly characterized highly motivated ascetic practitioners of ____________ today as not having any entrepreneurial focus or work ethic because their faith was quite unlike his brand of Christianity.

Hinduism

Which of the following is the oldest institution to maintain order in the international monetary system?

International Monetary Fund (IMF)

Straw men approaches to business ethics are used to demonstrate that they of...enterprise. Which of the following is NOT one of these straw man approaches?

Justice theories

One of the most defining characteristics of any culture is ______________ because it is primary to acquiring that culture in the first place.

Language

Hofsted's four original dimensions are:

Masculinity vs. femininity, uncertainty avoidance, power distance, and individualism vs. collectivism

Which of the following is NOT true about cultural change?

Most cultural change is revolutionary, based on sudden dramatic shifts and innovations.

Which of the following is NOT true about employment and income in the face of continuing globalization.

Real labor compensation has declined in most developed nations since the 1980's , including for the U.S.

___________________ may be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred.

Religion

Economists Robert Baro and Rachel McCleary argue that _______________ encourage growth because they sustain certain aspects of that lead to higher productivity.

Strong religious beliefs

______________________ has been ratified by almost every country, and it includes ma...for equal work.

The Universal Declaration of Human Rights

Which of the following is NOT true about the impact of the emphasis on individual performance in the United States?

The emphasis on individuals makes team work more effective since individuals can develop effective division of labor and spe

Which of the following is NOT one of the four major factors that help the U.S. to to continue to hold competitive advantages over other national players for global market share?

The reputation of U.S. graduate schools of business and management

"Business ethics" refers to the notion that individuals who engage in business...business people. T or F?

True

A murabaha contract is an agreement between a buyer and seller to pay for a good or service at the agreed upon price without interest permits extra charges for doing business like mark ups to be inserted so that both parties are satisfied with their bargain. T or F?

True

A society's structure refers to its basic organization. Two important dimensions are first the primary of the individual or groups as the basic second the degree to which the society is stratified into classes or castes. T or F?

True

Antiglobalization is resistance on the part of activists and national and national leaders who see "globalization" as a cultural, economic, and social disaster spearheaded by aggressive multinationals and powerful foreign governments with agendas of their own. T or F?

True

Class consciousness refers to a condition where people need to perceive themselves in terms of their class background, and this shapes their members of other classes. T or F?

True

Collectivism shapes any political system regardless of democratic or totalitarian individual goals. T or F?

True

Containerization refers to the process and packaging of goods, which has been a revolution in transportation technologies resulting in greeter efficiencies and scales of economy. T or F?

True

For approximately the last half century, two important trends have been the rise of non-US multinational firms and the growth of mini-multinational enterprises. T or F?

True

Globalization refers to the shift toward a more integrated and interdependent world economy. T or F?

True

Intellectual property, for example, patents, copyrights and trademarks, are generally uniform. T or F?

True

Just as societies have cultures, so do organizations, and the values and decision making. T or F?

True

Moral courage enables managers to walk away form a decision that is profitable... T or F?

True

Nation-states are political creations and may contain a single culture or many different cultures. T or F?

True

Social mobility refers to individuals moving from one layer of society to another; while all societies share comparable social strata, they differ to mobility and significance attached to strata in doing business. In other words, Japan and America have their respective "ladders" and "weight" stratification but differ in historical development. T or F?

True

The Confucian ethic is central to the Chinese concept of guanxi, which refers to the relationship networks supported by reciprocal obligations. T or F?

True

The UN has developed a Human Development Index (HDI) to compare the quality of life whether average incomes meet basic needs of life. T or F?

True

The Utilitarian approaches to ethics, which trace roots to the philosophers possible balance of good consequences over bad consequences. T or F?

True

The term "political economy" refers to the interdependencies of political, economic, and one another affect the level of economic well-being. T or F?

True

The tragedy of the commons explains how countries and individual companies being called to account. T or F?

True

Today's global markets are largely industrial and material goods that really meet world demand consumer products play a secondary role. T or F?

True

While democracy has spread throughout the world in the past 15 years, the number...

True

Purchasing power parity refers to:

adjusting gross domestic product per capita to reflect differences...

Justice theories focus on:

attaining a just distribution of economic goods and...

The legal system which relies on tradition, precedent and custom is known as the:

common law system

The idea of social responsibility requires business people to ________ when making...

consider the social consequences

Managers of firms engaged in international business must focus on increasingly complex management issues, due to:

differences among countries

In hiring and promoting employees or managers to work in other countries or...

follow competition

Some 40 countries, home to about 700 million people, produce a collective economic drag on the global economy to the point where rich nations must intervene at increasingly larger rates of economic assistance. These _______________ share government debt equivalent to 85% of their economy's total value.

highly indebted poorer countries

A number of economic studies predict that as income levels rise, so do pollution levels, this is known as a ___________________ because of growth to resource waste ratio until greater environmental protections take hold and reverse the pollution side of equations.

hump-shaped relationship

Stakeholders are:

individuals or groups that have an interest or claim in...

Ethnocentrism:

is a belief in that one's own ethic group is superior.

If you as a manager stand in the shoes of a stakeholder, your analysis shows...

moral imagination

Developed in the 20th century, ___________________ recognize that human beings and cultures.

rights theories

The term "intellectual property" refers to:

the product(s) of any intellectual activity.

Folkways help explain why Saudis have a different concept of time than Americans do because folkways are ________________ .

the routine conventions of everyday life.

Managers need to be concerned with legal risks regarding outside foreign trading...

they can face the likelihood that a trading partner will...

Entrepreneurs are engineers of business transformation because:

they first commercialize innovative new products or services...

The connections between culture and competitive advantage are important because:

to locate facilities and develop markets may be profoundly affected by cultural factors and considerations.

National sovereignty concerns raised by critics of globalization include:

unelected bureaucrats now impose policies on democratically elected governments of nation-states.