IBA 350
When an individual goes through a process of becoming acclimated to a different culture, it is called ________. A. adaptation B. culturalism C. individualism D. socialization E. acculturation
E. acculturation
One of the most noteworthy influences on globalization has been ________. A. industrial growth, financial expansion, and innovation B. financial markets integrating on a global scale C. a global decrease in barriers to trade D. market liberalization and the implementation of free markets Your answer is not correct. E. advances in technology, including communications, data, and engineering
E. advances in technology, including communications, data, and engineering
When a company transfers its value-chain activities by launching a subsidiary in a foreign country, it is called ________. A. contagion B. reshoring C. exporting D. relaunching E. offshoring
E. offshoring
In 2017, which region had the smallest proportion of Internet users? A. North America B. Europe C. Latin America D. The Middle East E. Africa
E. Africa
Which phase of globalization is composed of the growth and supremacy of multinational enterprises in the industrial and agricultural industries? A. Fifth phase B. First phase C. Fourth phase D. Third phase E. Second phase
E. Second phase
Which principle or theory advocates that a country should produce only the goods that use the least amount of resources? A. Absolute advantage principle B. International product life cycle theory C. Factor proportions theory D. New trade theory E. Comparative advantage principle
A. Absolute advantage principle
Right after Natasha graduated college, she developed a software program that would allow women from all over the world to create a marketplace focused on selling new, handmade clothing, sharing fashion advice, and creating a place where women could donate their gently used clothing to women in developing parts of the world. This type of business would be considered which of the following? A. Born global B. Pre-export C. Committed involvement D. Domestic focused E. Active involvement
A. Born global
Consumers' daily lives, partialities toward products, and spending habits all over the world are becoming increasingly similar. Popular brands now have global followings, and materials are becoming more standardized. This represents which dimension of globalization? A. Convergence of customer preferences and standards B. Progression of international ventures and economic movements C. Integration and interdependence of national economies D. Globalization of services E. Globalization of production
A. Convergence of customer preferences and standards
Which one of the following is a true statement about culture? A. Culture is not inherited. B. Culture is not relative, but rather is absolute. C. There are no examples of individual exceptions to a collective culture. D. Culture is not collective or group-based. E. Culture is not derived from the social environment.
A. Culture is not inherited
What has been the result of making improvements to Nigeria's cell phone infrastructure? A. Enhancing economic growth and productivity. B. Reducing corporate expenditures on information technology. C. Reducing corporate social responsibility requirements. D. Changing the transportation infrastructure. E. Facilitating the use of computer-aided design in manufacturing.
A. Enhancing economic growth and productivity.
________ orientation describes using one's own culture as a basis for judging other cultures. A. Ethnocentric B. Geocentric C. Polychronic D. Monochronic E. Polycentric
A. Ethnocentric
Which element in Porter's diamond model describes a nation's position in terms of labor, natural resources, wealth, technology, entrepreneurship, and know-how? A. Factor conditions B. Demand conditions C. Supporting industries D. Firm strategy, structure, and rivalry E. Industrial clusters
A. Factor conditions
Which one of the following is considered an important measure of economic development of a country that often characterizes lower levels of globalization? A. Gross national income per person B. Sovereignty C. The underground economy D. Gross domestic product E. Number of supranational institutions
A. Gross national income per person
Which one of the following argues that a country's affluence is due to increasing exports and decreasing imports resulting in a positive balance of trade? A. Mercantilism B. Absolute advantage principle C. New trade theory D. Factor proportions theory E. Comparative advantage principle
A. Mercantilism
Which one of the following is a host-country mindset in which an individual acquires an attachment to the country in which they conduct their business? A. Polycentric orientation B. Monochronic orientation C. Ethnocentric orientation D. Polychronic orientation E. Geocentric orientation
A. Polycentric orientation
Which one of the following globalization drivers increased monetary connectivity and simplified cross-border transactions? A. The integration of global financial markets B. Global decreases in barriers to trade C. Advancements in communication technology D. Industrialization in underdeveloped nations E. The implementation of free markets
A. The integration of global financial markets
The sequence of activities implemented by a company in the course of creating, manufacturing, promoting, and servicing a product is known as ________. A. a value chain B. a contagion C. globalization of markets D. global sourcing E. internationalization
A. a value chain
In the pre-export stage of the internationalization process, ________. A. firms receive unsolicited product orders from abroad B. firms conduct a systematic exploration of international options C. firms initiate limited international activity in the form of basic exporting D. firms are preoccupied with acquiring business in the home market E. firms target numerous foreign markets via various entry modes
A. firms receive unsolicited product orders from abroad
In ________, people are primarily concerned with their own self-interest, and ties among individuals are fairly loose. A. individualistic societies B. high-context cultures C. collective cultures D. masculine societies E. low-context cultures
A. individualistic societies
Joe has just relocated to China for work and is in the process of learning the rules, behaviors, and lifestyles that are considered appropriate in Chinese society. Joe is engaged in ________. A. socialization B. collectivism C. social stratification D. social mobility E. monochronic orientation
A. socialization
________ refers to a situation in which a human value is at stake due to a cultural misunderstanding. A. Country risk B. Cross-cultural risk C. Political risk D. Commercial risk E. Currency risk
B. Cross-cultural risk
Which one of the following statements regarding culture is accurate? A. Culture is not usually affected by contemporary means of communication. B. Culture comes from social settings. C. Culture is something that is hereditary. D. Culture is the same across all nationalities. E. Culture is usually about personal behaviors.
B. Culture comes from social settings.
Which one of the following best explains the globalization of production? A. Manufacturing firms and governments buy and sell large quantities of global currencies. B. Firms reduce manufacturing costs and retail prices by moving manufacturing activities to nations with lower costs of labor. C. Globally active corporations develop multinational operations through the exchange of goods, financial ventures, and various value-chain activities. D. Regional trade agreements like the North American Free Trade Agreement facilitate reduced trade barriers among member nations. E. Consumer shopping habits indicate changing trends and preferences to which manufacturers must respond.
B. Firms reduce manufacturing costs and retail prices by moving manufacturing activities to nations with lower costs of labor
Question Help ________ refer(s) to a collection of businesses, suppliers, and supporting firms in the same industry at a specific geographic position, characterized by a critical mass of human talent, capital, or other factor endowments. A. Firm structure and rivalry B. Industrial cluster C. Demand conditions D. Firm strategy E. Factor conditions
B. Industrial cluster
Which one of the following attempts to explain the method by which corporations obtain and retain value-chain activities minimize the difficulties of working with external partners, and allow for increased control over operations abroad? A. Mercantilism B. Internalization theory C. Monopolistic advantage theory D. The absolute advantage principle E. Factor proportions theory
B. Internalization theory
Which one of the following focuses on the resources a corporation possesses compared with others and recommends that corporations that utilize internationalization strategies own or control certain resources that are not readily accessible to competitors? A. Mercantilism B. Monopolistic advantage theory C. The absolute advantage principle D. Factor proportions theory E. The comparative advantage principle
B. Monopolistic advantage theory
Which one of the following is a preemptive cost-effective plan set into motion by a government in order to develop or reinforce a specific industry? A. Factor proportions theory B. National industrial policy C. Absolute advantage principle D. Comparative advantage principle E. New trade theory
B. National industrial policy
Which principle or theory advocates exporting and attaining access to a larger global market with the purpose of increasing economies of scale? A. Absolute advantage principle B. New trade theory C. Comparative advantage principle D. Factor proportions theory E. International product life cycle theory
B. New trade theory
In some countries, which of the following would be affected by a lack of status differences between employees and managers? A. Organizational structure B. Union-management relationships C. Attitudes toward ambiguity D. Supplier-buyer relationships E. Technology usage
B. Union-management relationships
A person with a(n)________ orientation has a strong orientation to time and is dependent on strict agendas and promptness. A. polycentric orientation B. monochronic C. polychronic D. geocentric E. ethnocentric
B. monochronic
In international business, ________ primarily relates to whether a firm is centralized, decentralized, bureaucratic, or entrepreneurial. A. technology B. organizational structure C. teamwork D. a negotiation method E. product development
B. organizational structure
In a(n) ________ culture, people are flexible, and they value multitasking and spending a lot of time with others. Such cultures do not put much emphasis on time and schedules. A. symbolic B. polychronic C. individualistic D. socialized E. monochronic
B. polychronic
A(n) ________ values nonverbal messages and sees communication as a way to encourage harmony in relationships. A. masculine culture B. high-context culture C. individualistic culture D. collective culture E. low-context culture
B. high-context culture
The spread of Starbucks around the world is an example of the ________ of markets. A. market liberalization B. globalization C. industrialization D. modernization E. technological advancement
B. Globalization
China, India, and Eastern Europe have become known as cost-effective places for producing goods and services, and they have attracted an increasing amount of foreign capital into their economies. Which driver of globalization best explains this occurrence? A. A global decrease in barriers of trade B. Market liberalization and implementation of open markets C. Technological advances improving efficiency at a global scale D. Financial markets integrating on a global scale E. Industrialization and rebuilding
B. Market liberalization and implementation of open markets
The ________ consists of approximately 160 countries worldwide and was created to control and safeguard fairness in international trade and investments. A. NAFTA B. WTO Your answer is correct. C. IMF D. GATT E. APEC
B. WTO
Which one of the following is an example of globalizing manufacturing? A. A Swiss watch maker signs distribution contracts with retail stores around the world. B. A British bank opens loan offices in the United States, Sri Lanka, and Guatemala. C. An Indian apparel company sets up a factory in Madagascar. D. A U.S. paper manufacturer opens sales offices in Germany and Kazakhstan. E. A Mexican software company opens a Research and Development department in China.
C. An Indian apparel company sets up a factory in Madagascar.
Which stage in the internationalization process of a firm is characterized by targeting numerous foreign markets via foreign direct investment? A. Domestic focus B. Experimental involvement C. Committed involvement D. Active involvement E. Pre-export
C. Committed involvement
Which principle or theory describes how two different countries can benefit through trade only if one of those countries is moderately more effective at producing a product needed by the other? A. Absolute advantage principle B. New trade theory C. Comparative advantage principle D. Factor proportions theory E. International product life cycle theory
C. Comparative advantage principle
________ is the tendency to view other cultures through the lens of one's own culture. A. Perceptiveness B. Tolerance for ambiguity C. Self-reference criterion D. Adaptability E. Critical incident analysis
C. Self-reference criterion
Mohammed lives in Turkey. Juan lives in Mexico. Both men were able to purchase the latest Mac book from their local retailer the day Apple released the new product. The functionality of the computer is the same with exception of the keyboard, which is customized for each language. This is an example of which of the following? A. Rise of regional economic integration blocs B. Globalization of production C. Convergence of consumer lifestyles and preference D. Globalization of services E. Growth of global investment and financial flows
C. Convergence of consumer lifestyles and preferences
Which term describes how uncomfortable situations in cross-cultural interactions are examined and acted on? A. Self-reference criterion B. Ethnocentric orientation C. Critical incident analysis D. Tolerance for ambiguity E. Cultural bias
C. Critical incident analysis
Which of the following terms represents unique traditions that serve as guides for interpreting attitudes, values, and behaviors? A. Idiom B. Self-reference criterion C. Cultural metaphor D. Acculturation E. Polycentric
C. Cultural metaphor
Which of the following refers to the absence of restrictions to the movement of goods and services among countries? A. Absolute advantage principle B. Comparative advantage principle C. Free trade D. Mercantilism E. Factor proportions theory
C. Free trade
Which statement about masculine and feminine cultures is correct? A. In masculine cultures, work is viewed as a way to earn money to get the most out of life. B. In feminine cultures, it is mainly women who play nurturing roles. C. Gender roles typically overlap in feminine cultures. D. The United States is considered a highly feminine culture. E. In masculine cultures, mainly the men make achievement, ambition, and economic growth a high priority.
C. Gender roles typically overlap in feminine cultures.
Which term refers to an expression whose symbolic meaning differs from the literal meaning? A. Cultural metaphor B. Polycentric orientation C. Idiom D. Self-reference criterion E. Nonverbal communication
C. Idiom
Many small enterprises are creating products for international markets using 3-D printers. Product plans and designs can be found simply by searching online. Using the Internet to design products is an example of which area of technological advancement? A. Basic scientific research B. Transportation C. Information technology D. Communications E. Manufacturing
C. Information technology
Which aspect of Dunning's eclectic paradigm focuses on the various benefits associated with adopting foreign-based manufacturing, distribution, and other value-chain activities? A. Site-specific advantages B. Monopolistic advantages C. Internationalization advantages D. Absolute advantages E. Ownership-specific advantages
C. Internationalization advantages
Which one of the following is an example of the competitive advantage of a nation? A. In the nation of Alpha, the leading consumer electronics firm uses a patented chip that costs less than any other alternative. The other Alpha firms in the industry, however, cannot use the chip and are no better or worse than competitors in other countries. B. The gPhone, the best-selling smartphone in the world, is designed, manufactured, and marketed by Strawberry, Inc., and headquartered in the nation of Gamma. A close competitor is the Robot phone from the nation of Sigma. Other phone manufacturers in Gamma lag far behind the two leaders. C. The three clothing manufacturers in the nation of Epsilon are the best in the world. One holds several worldwide patents. Another has access to low-cost cotton cloth. A third has a valuable brand name. The dominance of these firms also provides benefits to new Epsilon clothing firms, which can hire knowledgeable workers from the market leaders. D. Server farms in the nation of Beta run pretty much the same hardware and software as server farms in the nations of Tau and Upsilon. E. The music industry in the nation of Delta moved up from seventh in the world last year to third this year.
C. The three clothing manufacturers in the nation of Epsilon are the best in the world. One holds several worldwide patents. Another has access to low-cost cotton cloth. A third has a valuable brand name. The dominance of these firms also provides benefits to new Epsilon clothing firms, which can hire knowledgeable workers from the market leaders.
________ is defined as the ability to accept uncertainty and a lack of clarity in the thinking and actions of others. A. Geocentric orientation B. Cultural bias C. Tolerance for ambiguity D. Critical incident analysis E. Self-reference criterion
C. Tolerance for ambiguity
What is one of the most significant expressions of a culture that provides cultural insight? A. Manners B. Morality C. Verbal language D. Time perception E. Creativity
C. Verbal language
Cross-cultural differences in business can lead to problems with ________, which is when information and instructions can be understood in multiple ways. A. teamwork B. cultural bias C. ambiguity D. negotiations E. collectivism
C. ambiguity
The values, beliefs, and customs of a group of people are known as ________. A. acculturation B. monochromic orientation C. culture D. society E. socialization
C. culture
The ________ in the internationalization process model involves commencing limited international activities by way of simple exporting. A. pre-export stage B. active participation stage C. experimental involvement stage D. committed involvement stage E. domestic focus stage
C. experimental involvement stage
Material productions are ________. A. morals, philosophies, principles, and attitudes of the members of a culture B. letters, statistics, and numbers that support the financial and social infrastructure C. items and technologies that people create to fill some purpose within their environments D. observations of space and time E. patterns of social activities within a culture
C. items and technologies that people create to fill some purpose within their environments
Societies that score low on uncertainly avoidance ________. A. include countries like India, Jamaica, and the United States B. create many rules to control worker behavior C. take risks and make decisions quickly D. value stable careers E. take their time when making decisions
C. take risks and make decisions quickly
The greatest significance of globalization is reflected directly in a company's ________. A. balance sheet B. reshoring efforts C. value chain D. market share E. offshoring activities
C. value chain
________ refers to the steady integration and increasing interdependence of economies. A. Industrialization B. Global sourcing C. Globalization of markets D. Foreign direct investment E. Cross-border trade of commodities
C. Globalization of markets
Which cause of globalization BEST explains why some emerging markets have increased their standards of living and become competitive producers and exporters of computers and software? A. Technological advances B. A global decrease in barriers to trade C. Financial markets integrating on a global scale D. Economic development and industrialization E. The implementation of free markets
D. Economic development and industrialization
Which dimension of market globalization is a result of the North American Free Trade Agreement, as well as other countries' agreements that have facilitated reduced trade barriers among their members? A. Globalization of manufacturing B. Incorporation and interdependence of global markets C. Merging of customer preferences and standards D. Growth of regional economic integration blocs E. Progression of international ventures and economic movements
D. Growth of regional economic integration blocs
Which of the following statements regarding information technology is accurate? A. The cost of computer processing has increased by more than 30% in the past 30 years. B. Technology enables companies to interact with their partners globally in a timelier but less cost-effective manner. C. Given the added investment costs, a result of advances in information technology has been a decrease in early internationalization by small- and medium-sized enterprises. D. Information technology has created a competitive advantage for firms by allowing them more opportunities to outdo their competitors. E. Information technology benefits only larger firms due to the design and production of customized products being targeted to more narrow market niches.
D. Information technology has created a competitive advantage for firms by allowing them more opportunities to outdo their competitors.
Which of the following explains the approach of corporations to obtain and retain one or more of its value-chain activities, thereby minimizing the difficulties of working with external partners, and allowing for increased control over operations abroad? A. New trade theory B. Monopolistic advantage theory C. Absolute advantage principle D. Internalization theory E. Factors proportions theory
D. Internalization theory
Which of the following focuses on the resources a corporation possesses compared with others, and recommends that corporations that utilize internationalization strategies own or control certain resources that are not readily accessible to competitors? A. Absolute advantage principle B. Comparative advantage principle C. Mercantilism D. Monopolistic advantage theory E. Factor proportions theory
D. Monopolistic advantage theory
Which one of the following is an upstream value-chain activity? A. Customer service B. After-sales service C. Marketing D. Research and development E. Transportation
D. Research and development
Which cultural dimension forms the basis for personal motivations and behaviors? A. Education B. Perceptions of time C. Symbolic productions D. Values E. Manners and customs
D. Values
A(n) ________ orientation has a global mindset without regard to country boundaries and is open to diversity among cultures. A. home-country B. ethnocentric C. polycentric D. geocentric E. high-context
D. geocentric
Problems related to ________ relate to difficulties in building and maintaining business relationships due to differences in the cultures, interests, and goals of firms. A. union-management relationships B. teamwork C. organizational structure D. negotiations E. technology
D. negotiations
Cross-cultural differences can impact a firm's activities. A firm that ________ primarily faces language and cross-cultural difficulties due to significant interaction with customers. A. collaborates with domestic partners B. uses translation technology C. uses a centralized structure D. provides services E. negotiates contracts
D. provides services
A European clothing retailer postponed acquiring firms located abroad due to a fear of not being able to work well with foreign business partners and being unable to integrate the different cultures. The clothing retailer was primarily concerned about cross-cultural differences affecting ________. A. organizational structure B. contract negotiations C. attitudes toward ambiguity D. teamwork E. union-management relationships
D. teamwork
India has become a prominent provider of software technologies, and Brazil has become a frontrunner in commercial aircraft development. Which cause of globalization is illustrated by these examples? A. Worldwide reduction in trade barriers B. Market liberalization and the implementation of free markets C. Financial markets integrating globally D. Industrialization, economic growth, and innovation E. Technological advancements in communication networks
D. Industrialization, economic growth, and innovation
Tamika believes that business contracts should be very exactly worded. Because of bad experiences, she does not trust agreements based on assumptions, handshakes, or unspoken understandings. Tamika trusts extensive verbal explanations and spoken words more than relationships. She is from a ________ culture. A. deep B. high-context C. monochronic D. low-context E. polychronic
D. low-context
Which of the following terms represents the arrangement of activities conducted by a company in the course of creating, manufacturing, promoting, and servicing a product? A. Internationalization B. Global sourcing C. Globalization of markets D. Value chain E. Contagion
D. Value Chain
The formation of the WTO and the emergence of economic integration blocs led to ________. A. industrialization and innovation B. market liberalization and implementation of free markets C. technological advances D. a global decrease in barriers to trade E. financial markets integrating on a global scale
D. a global decrease in barriers to trade
________ is an inflexibly held attitude that is generally negative and typically aimed at particular groups of people. A. A custom B. High culture C. A value D. Power distance E. A prejudice
E. A prejudice
Which term refers to unconscious judgments, often not based on logical facts, about what is good, acceptable, important, and normal? A. Values B. Acculturation C. Customs D. Socialization E. Attitudes
E. Attitudes
Which determinant of national competitiveness focuses on the need for certain products and services domestically? A. Company strategy B. Company structure C. Factor conditions D. Related and subsidiary industries E. Demand conditions
E. Demand conditions
What is the first stage in the internationalization process of a firm, where the firm is primarily preoocupied with business at home? A. Pre-export B. Active involvement C. Experimental involvement D. Committed involvement E. Domestic focus
E. Domestic focus
For the first 10 years of its existence, Ravi Patel's company sold only to customers within the United States. The company would occasionally get orders from overseas customers who had heard from relatives or friends about Ravi's products. But now, Ravi has decided to try actively exporting to selected retailers in Canada, Mexico, and Central America, kind of like dipping his toes in the water. Which stage in the internationalization process model describes Ravi's company today? A. Committed involvement B. Pre-export stage C. Active involvement D. Domestic focus E. Experimental involvement
E. Experimental involvement
________ involves a company paying external suppliers and contractors, who are located in foreign nations, to perform value-adding activities. A. Reshoring B. Sovereignty C. Offshoring D. Foreign direct investment E. Global outsourcing
E. Global outsourcing
________ inspires corporations to establish their sourcing, producing, and promoting activities on a worldwide scale in order to attain lower costs with higher efficiency. A. Sovereignty B. Foreign direct investment C. Country risk D. Contagion E. Globalization
E. Globalization
Which term describes the knowledge and process of creating and utilizing informational resources? A. Communications B. Value chain C. Manufacturing infrastructure D. Information reshoring E. Information technology
E. Information technology
________ involve corporations combining resources and capabilities in order to be able to perform some task that each would be unable to perform otherwise, while at the same time sharing the risk, which reduces vulnerability for each partner. A. Demand conditions B. National industrial policies C. Factor proportion theories D. Industrial clusters E. International collaborative ventures
E. International collaborative ventures
Which of the following is a contemporary perspective that aids in explaining the emergence of a country's competitive advantage? A. Public competitiveness policy B. Mercantilism C. Comparative advantage of industries D. Absolute advantage principles E. National industrial policy
E. National industrial policy
Which dimension of globalization involves the unrestricted movement of capital and the expanded networks of economies throughout the world? A. Incorporation and interdependence of global markets B. Globalization of production C. Merging of customer preferences and standards D. Growth of local financial integration alliances E. Progression of international investments and financial activities
E. Progression of international investments and financial activities
________ proposes that countries should export only products that use copious factors of production and import only goods that use limited factors of production. A. Mercantilism B. The comparative advantage principle C. The absolute advantage principle D. New trade theory E. The factor proportions theory
E. The factor proportions theory
A grocer in Niagara Falls, Ontario, regularly bought vegetables from farmers in Rochester, New York. The invention of the telephone during this phase made it much easier for the grocer to call the New York farmers to ask about current prices and adjust her selling prices. In what phase of globalization did this situation occur? A. The fifth phase—2007 to the present B. The third phase—1948 to the 1970s C. The fourth phase—1980s - 2006 D. The first phase—1830 to the late 1800s E. The second phase—1900-1930
E.The Second Phase- 1900-1930
Which phase of globalization was triggered by the rise of electricity and steel production? A. The third phase—1948 to the 1970s B. The first phase—1830 to the late 0800s C. The fifth phase—2007 to the present D. The second phase—1900-1930 E. The fourth phase—1980 - 2006
The second phase-1900-1930