International Business Exam 1
A boom in product liability suits and awards in the United States resulted in a dramatic increase in the cost of liability insurance. Many business executives argue that this -American businesses less competitive in the global marketplace. -exposes consumers to greater product risks. -offers American businesses greater protection from foreign competitors. -discourages American companies from outsourcing jobs to less-developed countries. -eventually makes it cheaper for foreign companies to do business in the United States.
American businesses less competitive in the global marketplace
What is the common aspect of the teachings of Hinduism and Buddhism? -Both advocate the same kind of extreme ascetic behavior. -Both support the existence of a caste system. -Both stress the afterlife and spiritual achievement rather than worldly involvement. -Both condemn the payment or the receipt of interest on loans and deposits. -Both propagate the Noble Eightfold Path as a route for transformation.
Both stress the afterlife and spiritual achievement rather than worldly involvement.
While it might differ in other countries, in the United States the customary distance apart that should be used in a business discussion is -36 inches or under. -5-8 feet. -18-24 inches. -3-5 feet. -at least 10 feet.
5-8 feet.
Solar Solutions, a U.S.-based company, is planning to expand operations to a foreign country. Considering the factors that make a country attractive as a place in which to do business, which country should Solar Solutions consider for entry? -Country D, which has democratic institutions and a market-based economic system -Country A, which lacks democratic institutions and has a market-based economic system -Country E, which lacks democratic institutions and where property rights are always respected -Country C, which has democratic institutions and where corruption is rampant -Country B, which has democratic institutions and where economic activity is heavily regulated by the state
Country D, which has democratic institutions and a market-based economic system
According to globalization supporters, what is an advantage of globalization? -As a result of globalization, countries relax their labor standards. -Globalization leads to tougher environmental regulations, which significantly decrease the costs of manufacturing enterprises. -Globalization helps create jobs in all countries that participate in the global trading system. -As a result of globalization, pollution levels fall significantly in the world's poorer nations. -Globalization provides more economic power to national governments.
Globalization helps create jobs in all countries that participate in the global trading system.
Water Wonders is a manufacturing company that makes large-scale fish tanks. It has customers, investors, vendors, and competitors from all across the globe. Which of these Water Wonders business associates would be an internal stakeholder? -Below Sea Creators, a competing firm that produces similar products -the government of the home country where Water Wonders operates -Fresh Fisheries Inc., a firm that supplies machinery to Water Wonders -Gretchen, a prominent member of the top management at Water Wonders -Tyson, a major buyer of Water Wonders products
Gretchen, a prominent member of the top management at Water Wonders
What is a drawback of the utilitarian approach to business ethics? -It omits the consideration of justice. -It fails to consider the benefits, costs, and risks of a course of action. -It recognizes that actions have multiple consequences. -It advocates moral imperialism and ethnocentrism. -It overemphasizes the significance of maximization of stockholder wealth.
It omits the consideration of justice.
How does privatization help stimulate gains in economic efficiency? -It allows newly privatized firms to gain monopoly position in a particular industry. -It results in reservation of heavy industry for state ownership and the increase of import tariffs. -It encourages state control over price and production output. -It provides incentives to new private owners to search for increases in productivity and to enter new markets. -It raises barriers to direct investment by foreign enterprises.
It provides incentives to new private owners to search for increases in productivity and to enter new markets.
Which statement about culture is true? -Culture is static as it does not evolve. -It is not possible for a country to support multiple cultures. -The cost of doing business in a country or region is always independent of its culture. -Multinational enterprises can be engines of cultural change. -The values and norms of a culture emerge fully formed.
Multinational enterprises can be engines of cultural change.
Pure and Natural Inc. operates in three different countries, and the CEO believes that the best approach to ethics is cultural relativism. How will this ethical approach affect the actions of Pure and Natural Inc.? -Business decisions made by managers of Pure and Natural Inc. will be solely based on the goal of maximization of societal good. -The business units of Pure and Natural Inc. will be empowered to adopt the standards of ethics followed in their respective host nations. -Pure and Natural Inc. will advocate the idea that universal notions of morality transcend different cultures. -Pure and Natural Inc. will follow its home-country standards of ethics at all its foreign locations. -All business units of Pure and Natural Inc. will adopt a common standard of ethics irrespective of their location.
The business units of Pure and Natural Inc. will be empowered to adopt the standards of ethics followed in their respective host nations.
What is one implication of the global changes in political and economic systems for international business? -Adoption of Western ideology is declining worldwide. -The global tide has been running in favor of command economies and totalitarian dictatorships. -Free markets and democracy are being replaced by mixed economies and communist governments. -Liberalization and privatization of state-owned enterprises has been losing popularity. -The ideological conflict between collectivism and individualism is less in evidence today.
The ideological conflict between collectivism and individualism is less in evidence today.
What occurs according to Moore's law? -The demand for microprocessor technology falls in half every 18 months. -The power of microprocessor technology doubles and its cost of production falls in half every 18 months. -The cost of microprocessors increases as their power increases. -The price of microprocessors continues to fall, while their cost of production increases. -The demand for microprocessors continues to rise, while their supply falls.
The power of microprocessor technology doubles and its cost of production falls in half every 18 months.
What is one criticism regarding Geert Hofstede's research on cultural dimensions? -It did not assume a one-to-one correspondence between culture and nation-state. -The research team consisted of only Europeans and Americans. -It was too all-encompassing and did not allow for differences. -It did not assess cultures affecting the workplace. -It did not consider physical capabilities.
The research team consisted of only Europeans and Americans.
What is an accurate description of how the political economy of many of the world's nation-states has changed radically since the late 1980s? -There has been a move away from centrally planned and mixed economies and toward a more free market economic model. -Market-based economic systems have been replaced by command economies. -New communication technologies have increased countries' ability to control access to uncensored information. -There has been a significant reduction of the middle class. -Democratic governments have been replaced by totalitarian governments.
There has been a move away from centrally planned and mixed economies and toward a more free market economic model.
How have new information and communication technologies, including the Internet, affected the political economy in general? -They have led to the collapse of democracy. -They have reduced a state's ability to control access to uncensored information. -They have led to increased suppression of political and economic freedoms. -They have led to the spread of communism. -They have created new conduits for the spread of closed societies.
They have reduced a state's ability to control access to uncensored information.
Which statement about Confucianism is true? -Confucian ethics raise the costs of doing business in China, Japan, South Korea, and Taiwan. -Confucianism preaches about the supernatural, the concept of a supreme being, and an afterlife. -Confucianism is a religion principally followed in India, Korea, and Japan. -Conflict between management and labor tends to be high in the countries that follow Confucianism. -Three values central to Confucianism are loyalty, reciprocal obligations, and honesty in dealing with others.
Three values central to Confucianism are loyalty, reciprocal obligations, and honesty in dealing with others.
Which of these companies has adopted unethical practices? -Swift Electronics Inc. closed down a production plant as the local management there employed child labor. -Tri-Land Auto sends its waste products for disposal to a developing nation because the pollution control laws in its home country are stricter than those in the developing nation. -Millhouse Inc. ceased its operations in some developing nations on account of low employment standards in those countries. -Kline Bros. Inc., a multinational company operating in developing nations, pays its labor 30 percent more than what the local competitors pay. -Caffer Coffee Corp. sells its coffees at a lower price in less-developed nations.
Tri-Land Auto sends its waste products for disposal to a developing nation because the pollution control laws in its home country are stricter than those in the developing nation.
When considering the cost of doing business in another country, what would be considered the most attractive market or investment site? -a country that does not provide any protection for property rights -a country with stringent product safety laws and huge liability insurance rates -a country that has a well-developed body of business contract law -a country with a command-based economic system -a country that has adopted a closed totalitarian state
a country that has a well-developed body of business contract law
A country with __________ is more likely to attain high and sustained economic growth rates and is a more attractive location for international business. -a democratic regime -a totalitarian dictatorship -weak protection of property rights -command-based economic policies -ideologies that differ from Western ideologies
a democratic regime
According to Islamic beliefs, private property is considered -a privilege and not a right. -a sign of moral degradation. -a sign of wealth and prosperity. -property of the state. -a favor from Allah.
a favor from Allah.
Which company is contributing to the global tragedy of the commons? -a neighboring country opposing the introduction of a free trade area -a firm exploiting the weak intellectual property rights in a developing nation -a firm exploiting the weak employment standards in a host nation -a firm dumping its chemical wastes directly into a river -a country denying its citizens basic human rights
a firm dumping its chemical wastes directly into a river
A righteous moralist is most likely to claim that -a firm should adopt the ethics of the culture in which it is operating. -human beings have fundamental rights and privileges that transcend national boundaries and cultures. -people should be treated as ends and never purely as means to the ends of others. -inequalities are justified if they benefit the position of the least-advantaged person. -a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.
a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.
One way businesses can make sure they are hiring individuals with strong personal ethics is by -spying on prospective employees. -hiring only those people who are relatives of current employees. -employing only those people who have a very high intelligence quotient. -administering simple tests that indicate analytical skills of a prospective employee. -asking for letters of reference from the prospective employees.
asking for letters of reference from the prospective employees.
Collin knows it is wrong for his company to continue pouring manufacturing waste products into the water system based on environmental standards set down by the state. Collin is demonstrating a lack of -business objectives. -business strategies. -business goals. -business development. -business ethics.
business ethics.
Which scenario is an example of private action? -the Brazilian government requiring expensive licenses or state permits from private property holders -business owners in the interactive video industry stealing their competitors' trade secrets and intellectual properties -the government of Canada levying excessive taxes -a communist government taking assets into state ownership without compensating the owners -government bureaucrats demanding bribes from businesses in return for the rights to operate manufacturing facilities in a country
business owners in the interactive video industry stealing their competitors' trade secrets and intellectual properties
A major distinction between a conventional bank and an Islamic bank is that Islamic banks -cannot pay or charge interest. -are allowed to charge higher interest rates on loans. -cannot accept private deposit. -are supposed to refrain from making a profit through any source. -are not subject to any form of law.
cannot pay or charge interest.
Grossman and Krueger's study revealed the relationship between pollution levels and income. Which pollutant was the exception to their study? -carbon dioxide -hydrogen -lead -sulfur dioxide -nitrous oxide
carbon dioxide
As a judge in Germany, William is not allowed to interpret the law but relies on a strict set of codes to determine the outcome of a case. Which type of law is in place in Germany? -mixed law system -theocratic law system -tribal law system -civil law system -common law system
civil law system
In Samuel Huntington's thesis, global terrorism is a product of the -widespread acceptance of universal global civilization. -declining liberal democratic ideals. -geographical differences between nations. -differences in the factor endowments between countries. -clash of value systems and ideology between civilizations.
clash of value systems and ideology between civilizations.
An individual's right to do something may be restricted on the grounds that it runs counter to "the good of society" when the political system emphasizes -individualism. -capitalism. -collectivism. -democracy. -privatization.
collectivism
The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on -democracy. -collectivism. -privatization. -individualism. -capitalism.
collectivism
A __________ economy follows the principles of collectivism as resources are allocated based on "the common good." -supply -command -private -mixed -market
command
Countries in which the government plans the production of goods and services and also the prices of these items operate in a(n) __________ economy. -mixed -majoritarian -market -egalitarian -command
command
More nations have gravitated toward the market-based model because -it gave full control of the economy over to the state. -it is not associated with a set legal system. -command and mixed economies failed to deliver sustained economic performance. -it did not allow for privatization. -political freedom was guaranteed.
command and mixed economies failed to deliver sustained economic performance.
Ultimately, product safety and product liability laws are in place to protect -intellectual property rights. -companies from their domestic competitors. -companies from their foreign competitors. -product inventors. -consumers.
consumers
With increased economic progress, cultures across the world seem to be moving toward some universally accepted values and norms. This is known as the -class consciousness hypothesis. -power distance hypothesis. -convergence hypothesis. -dynamism hypothesis. -ethnocentrism hypothesis.
convergence hypothesis.
All of the books in a library have a __________, which shows the exclusive legal rights of the author of the book. -copyright -patent -libel -trademark -folkway
copyright
If Shondra was working in the home office in Florida, she never would have agreed to pay the government official to speed up the delivery of the cargo; however, since she is working in the company's foreign office, she agrees to the practice since it is considered normal in this country. Which philosophical approach to ethics is Shondra using to make her decision? -Friedman doctrine -Kantian approach -cultural relativism -naive immoralism -righteous moralism
cultural relativism
Article 23 of the Universal Declaration of Human Rights implies that it is unethical to employ child labor in sweatshop settings and pay less than subsistence wages, even if that happens to be common practice in some countries. This is in contrast to -rights theories. -Marxism. -cultural relativism. -Kantian ethics. -justice theories.
cultural relativism.
The system of values and norms that are shared among a group of people and together create a design for living is known as a -culture. -nationality. -tradition. -ritual. -society.
culture.
What was the motivation for non-U.S. firms to begin investing across national borders in the 1970s? -desire to disperse production activities to optimal locations -limits imposed by government intervention in international trade -shift toward a more integrated and interdependent global economy -rise in barriers to trade and foreign direct investments -host of investment opportunities in foreign nations
desire to disperse production activities to optimal locations
What was the motivation for non-U.S. firms to begin investing across national borders in the 1970s? -rise in barriers to trade and foreign direct investments -desire to disperse production activities to optimal locations -shift toward a more integrated and interdependent global economy -limits imposed by government intervention in international trade -host of investment opportunities in foreign nations
desire to disperse production activities to optimal locations
The straw man approach of righteous moralism is typically associated with managers from -BRIC nations. -totalitarian nations. -war-torn countries. -developed nations. -developing countries.
developed nations.
The main reason that gross national income figures can be misleading is because they -measure the total dollar amount of imports coming into a nation. -don't consider differences in the cost of living. -are determined by individual governments instead of a national institution. -allow for a direct comparison of living standards in different countries. -are an adjustment of the purchasing power parity (PPP).
don't consider differences in the cost of living.
In comparison to market economies, command economies lack -government interference in allocation of resources -dynamism and innovation. -concern for the interests of the nation. -any opposition to private ownership. -commitment to communism.
dynamism and innovation.
Generally, the costs and risks associated with doing business in a foreign country are typically lower in -economically advanced countries. -countries with high inflation and falling living standards. -totalitarian states. -countries that lack intellectual property rights. -less-developed countries.
economically advanced countries.
Kantian philosophy would view __________ as an ethical violation. -empowering people with fundamental rights and privileges -treating employees as conscious moral beings -practicing superior standards of employment in the host country -employing people to work long hours at low pay -treating people as ends rather than as means
employing people to work long hours at low pay
Speed money or grease payments, are payments made to -secure monopoly rights in less-developed countries. -ensure a business receives the standard treatment that it ought to receive. -obtain exclusive preferential treatment in a foreign market. -influence foreign bureaucrats in the company's favor. -secure contracts that would not otherwise be secured.
ensure a business receives the standard treatment that it ought to receive.
According to economist Hernando de Soto, the key issue in the relationship between capitalism and property rights is the inability of owners to -pay the necessary taxes on their property. -create a production monopoly. -adapt to a planned economic system. -establish legal title to the property they own. -foster dynamism through entrepreneurial activity.
establish legal title to the property they own.
Charlize is from South Africa and believes that the customs and beliefs of her culture are superior to those she has encountered during her trip to America. Charlize's attitude is an example of -ethnocentrism. -class consciousness. -collectivism. -cultural convergence. -Confucian dynamism.
ethnocentrism.
In a business setting, managers sometimes do not realize they are behaving unethically, primarily because they -believe that social investments made by their companies can always compensate for their unethical actions. -fail to take into account the ethical dimension of business decisions. -have a strong system of personal ethics. -ignore business variables such as cost, delivery, and product quality. -abide by the concept of noblesse oblige.
fail to take into account the ethical dimension of business decisions.
"Facilitating payments" are payments to secure contracts that would not otherwise be secured. -true -false
false
A company pursuing a sustainable strategy would adopt business practices that degrade the environment. -true -false
false
A textbook author would apply for a trademark to obtain the exclusive legal rights associated with their written peace. -true -false
false
According to Geert Hofstede, high power distance cultures were found in societies that tended to play down inequalities of power and wealth. -true -false
false
According to Hofstede's research, in feminine cultures, sex roles are sharply distinguished and there is vast differentiation between men and women in the same job. -true -false
false
After it was amended, the Foreign Corrupt Practices Act barred "facilitating payments." -true -false
false
An Asian country has seen a shift from a universal following of traditional values to a society in which the younger generation is adopting more Western values and methods of conducting business. This is known as the adaptation hypothesis. -true -false
false
As categorized by Freedom House, citizens in a "free" country face some restrictions on political rights and civil liberties, often in the context of corruption or ethnic strife. -true -false
false
Communist nations consistently practiced deregulation efforts. -true -false
false
Confucianism and Confucian ethics influence behavior and shape culture in parts of Asia; therefore, it is correct to characterize Confucianism as a religion. -true -false
false
Contracts in a common law system tend to be shorter and less detailed than those created in a civil law system. -true -false
false
If a nation has achieved economic freedom, it follows that it has also achieved political freedom. -true -false
false
In Japan today, office workers are still steadfastly adhering to the collectivist model. -true -false
false
In a common law system, tradition refers to cases that have come before the courts in the past. -true -false
false
In a planned economy, there is a great deal of freedom for entrepreneurial activity. -true -false
false
In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply. -true -false
false
Kantian ethics is concerned with environmental ethical issues such as manufacturing emissions and polluted waters. -true -false
false
Milton Friedman would agree that a business should undertake social expenditures beyond those mandated by the law and required to run a business efficiently even if it reduces profits. -true -false
false
Plato equated collectivism with equality. -true -false
false
The Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until they relax the property rights offered by their legal systems. -true -false
false
The Sullivan principles stem from the beliefs of Leon Sullivan who felt it was not ethical for General Motors to operate in South Africa unless the company participated in apartheid laws for its African operations. -true -false
false
The benefits, costs, and risks associated with doing business in a country are independent of that country's political, economic, and legal systems. -true -false
false
The gross national income (GNI) per capita comes much closer to Amartya Sen's conception of how development should be measured than narrow economic measures such as the Human Development Index (HDI). -true -false
false
The most common form of theocratic totalitarianism is Judaism. -true -false
false
The social rules that provide guidelines for appropriate behavior in a particular situation are known as attitudes. -true -false
false
When considering the violation of property rights, blackmail is a form of public action. -true -false
false
While folkways are routine conventions, they represent deep moral significance in society. -true -false
false
While popular in the 1980s and early 1990s, privatization is no longer in effect around the world today. -true -false
false
A country that has lax intellectual property laws will find that -most of the companies in the country will commit themselves to extensive basic research. -imitating a patented product or process will become difficult. -firms will be reluctant to enter into such a country. -many companies in the country will focus on innovative products -inventors and authors will have better opportunities to grow and to be rewarded.
firms will be reluctant to enter into such a country.
Madeline is always late to meetings. She knows she needs to improve her time management because it is a typical expectation in the United States. This attitude toward time is an example of a -value -belief. -folkway. -mores. -moral.
folkway
When she visited Italy, Catherine noticed that restaurants were slower to deliver food and expected customers to stay longer than she was used to in the U.S. This is an example of a -law. -rule. -value. -folkway. -more.
folkway.
Economist Robert Reich advocates that the outsourcing of productive activities to different suppliers results in the creation of -factors of production. -a global legal system. -a single currency. -unlimited costs. -global products.
global products
The merging of national markets that have historically been distinct and separate is the process of -globalization -international business -containerization. -industrialization. -foreign direct investment.
globalization
One cost-cutting measure used by E-Z Out Garage Door Co. is sourcing the parts it uses from companies in Germany, Brazil, and Mexico that are more economical than home-country sources. The choice to use these sources is an example of the -regulation of the environment. -emergence of global institutions. -globalization of production. -globalization of markets. -company's social responsibility.
globalization of production.
In a pure command economy, the prices at which goods and services are sold are planned by the -World Trade Organization. -producers. -government -consumers. -private monopolists.
government
A common feature of many right-wing dictatorships is -the direct involvement of the citizens in decision making. -strong commitment to socialist or communist ideas. -total restriction on individual economic freedom. -governments that are made up of military officers -politicians from a particular tribe dominating the political system.
governments that are made up of military officers
A payment made to expedite or to secure the performance of a routine governmental action is called a -government fee. -protection payout. -grease payment. -lump payment. -tariff.
grease payment.
Payments used to ensure receiving the standard treatment that a business ought to receive from a foreign government, but might not due to the obstruction of a foreign official, are called -kickbacks. -grease payments. -forward exchange payments. -deferred payments. -purchasing parity.
grease payments.
When comparing the three broad types of economic systems, it can be said that -mixed economies were once uncommon throughout much of the world, although they are becoming more popular now. -for a pure market economy to function efficiently, product supply must be restricted. -in a command economy, state-owned enterprises have little incentive to control costs and be efficient. -the sole role of government in a command economy is to encourage vigorous free and fair competition between private producers. -production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.
in a command economy, state-owned enterprises have little incentive to control costs and be efficient.
When schools emphasize respect for others, obedience to authority, honesty, neatness, being on time, and use a grading system, they are -impinging on fundamental freedoms and values. -teaching children to be noncompetitive. -indirectly teaching cultural values and norms -unnecessarily deviating from formal education. -indirectly creating a rigid caste system.
indirectly teaching cultural values and norms
The Greek philosopher Aristotle argued for diversity and private ownership. This laid the groundwork for -communism. -totalitarianism. -socialism. -collectivism. -individualism.
individualism
Which concept laid the groundwork for the concepts expressed in the Declaration of Independence? -the greater good -private ownership -collectivism -socialism -individualism
individualism
When considering innovations and entrepreneurship, it can be said that -a high level of entrepreneurial activity leads to a low level of innovation. -innovations in production and business processes lead to an increase in the productivity of labor and capital. -if a country's economy is to sustain long-run economic growth, the business environment must restrict entrepreneurial activity. -strong legal protection of property rights creates an unfavorable environment for innovation and entrepreneurship.
innovations in production and business processes lead to an increase in the productivity of labor and capital.
Marek owns 100 shares of stock in Sun Telecom. He would be considered a(n) -supplier. -mini-multinational. -internal stakeholder. -customer. -external stakeholder.
internal stakeholder.
The Universal Declaration of Human Rights would agree that -people do not have a right to join trade unions for protection of their interests. -citizens of a nation have no duties to their community. -it is unethical to employ child labor in sweatshops even if that happens to be common in some countries. -there should not be different sets of fundamental rights and privileges for different cultures. -it is ethical to treat people as means to the ends of others.
it is unethical to employ child labor in sweatshops even if that happens to be common in some countries.
A high degree of managerial mobility in societies that emphasize individualism can lead to -lack of company-specific experience, knowledge, and a network of contacts among managers. -reduced costs of doing business. -lack of exposure among employees to different ways of doing business. -inability to apply good practices and techniques developed in one firm to other firms. -increased managerial loyalty and commitment to an individual company.
lack of company-specific experience, knowledge, and a network of contacts among managers.
A company that wants to market winter gear to citizens of Alaska should be aware that there are 24 words used in the state to describe different types of snow. This shows how __________ structures how we perceive the world and defines a culture. -listening -language -nonverbal cues -dissonance -perception
language
A(n) __________ risk occurs when a trading partner opportunistically breaks a contract or expropriates property rights. -sociological -legal -economic -political -cultural
legal
U.S.-based Nelson Corporation is hesitant about entering into a licensing agreement with Lapson, Inc., a company from another nation, due to the likelihood that Lapson will break a contract or expropriate property rights. What specific type of risk is Nelson Corporation trying to avoid? -ethical -legal -political -economic -technological
legal
There are currently over 1.3 billion people living in India, which makes it a large market when measuring the number of potential consumers. However, India is still considered a smaller market in economic terms because of -high living standards. -low birthrates. -limited purchasing power. -the country's orientation toward democracy. -a commitment to a free market system
limited purchasing power.
In Denmark, the personal income tax rate is 55 percent. One of the reasons workers are willing to pay this is because they know they will reap the benefits later in the form of free health care and a universal pension in retirement. According to Geert Hofstede, what cultural dimension does this most illustrate? -power distance -uncertainty avoidance -class consciousness -social mobility -long-term versus short-term orientation
long-term versus short-term orientation
Mandarin Chinese is the mother tongue of the largest number of people, but English is the most widely spoken language in the world. This indicates that -many native English speakers are learning Chinese. -the population of native English speakers exceeds that of China. -Chinese is increasingly becoming the language of international business. -many people speak English as a second language. -Chinese will soon overtake English as the most widely spoken language.
many people speak English as a second language.
Recent global changes in political and economic systems show that -a lack of deregulation was the cause for the global financial crisis of 2008-2009 -it is guaranteed that democracy will thrive in most of the world's newer democratic states. -the multipolar world dominated by a number of civilizations of the Cold War era has vanished and is now being replaced by a bipolar world. -many undeveloped and impoverished national markets of eastern Europe, Latin America, Africa, and Asia are potentially enormous for international business. -East European communist ideology is now widespread.
many undeveloped and impoverished national markets of eastern Europe, Latin America, Africa, and Asia are potentially enormous for international business.
Daveed is the warehouse supply manager for a privately owned auto parts distributor. It is his job to take inventory of the products the company has available and place orders for parts when supplies run low. This supply and demand form of production is an example of a __________ economy. -public -command -private -market -socialist
market
As democracy has spread since the 1980s, so has the development of more __________ economies. -centrally-planned -mixed -market-based -command -totalitarian
market-based
In 2008, the U.S. government stepped in to help some failing financial institutions to prevent further collapse of the economy. Typically, the U.S. government does not interfere in these situations. This activity indicates that the U.S. operates under a __________ economy. -laissez-faire -pure market -command -mixed -centrally planned
mixed
In order for a market economy to work, it is important that supply of a product must not be restricted by a producer. In other words, __________ must be banned. -nationalism -start-ups -monopolies -entrepreneurism -globalization
monopolies
Abby asked the management team to consider how they would feel if they were asked to travel more than 65 miles to get to work—which is what they were asking the management team at the foreign office to do. Abby is relying on __________ to approach this ethical situation. -ethnocentrism -the difference principle -moral imagination -the naive immoralist approach -the Sullivan principle
moral imagination
Which of these items can be protected by a copyright? -new manufacturing process invented in a company -tangible property like land and building -newly invented telecommunication device -music composed by a composer -new type of car invented by an automobile company
music composed by a composer
The __________ approach to ethics advocates that a manager in a multinational firm who sees other firms operating in the same nation not following ethical norms, may follow suit and not follow ethical norms either. -Kantian -Friedman doctrine -righteous moralism -cultural relativism -naive immoralist
naive immoralist
The social rules and guidelines that prescribe appropriate behavior in particular situations are called -customs. -values. -traditions. -taboos. -norms
norms
Big Top Boxes has developed a new type of recycled packaging. Which type of legal protections can grant the company exclusive rights for a defined period to the manufacture, use, or sale of the new packaging? -writ -copyright -warrant -patent -trademark
patent
Wise Eyes Corporation has developed a new oral supplement to prevent macular degeneration. Which type of legal protection grants Wise Eyes Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new supplement? -patent -trademark -warranty -treaty -copyright
patent
Grease payments or speed money are allowable under U.S. law to expedite the -incoming federal income tax -breach of the rule of law. -implementation of a new government office. -performance of a routine government action. -creation of new state-owned business.
performance of a routine government action.
Amartya Sen believed that __________ should also be a factor in the human development index. -educational attainment -geographical conditions -political freedom -basic average income -birth rates
political freedom
Several factors that are probably more important to an explanation of differential economic growth rates over time than culture include -regional affiliations. -religion. -physical geography. -political systems. -gender.
political systems.
A person who practices Hinduism would say that nirvana can only be achieved by -persisting in a quest for material goods. -achieving spiritual oneness. -practicing physical self-denial. -accumulating wealth. -material reincarnation.
practicing physical self-denial.
One root cause of unethical behavior in business is -a societal culture with low power distance. -a strong sense of personal ethics. -organization culture that emphasizes business ethics. -management's ability to see beyond economic benefits. -pressure to meet unrealistic performance goals.
pressure to meet unrealistic performance goals.
What started in Great Britain in the early 1980s when Prime Minister Margaret Thatcher started to sell state-owned assets such as the British telephone company? -nationalization -antidemocratic government -communism -antiglobalization -privatization
privatization
In 2017, the Brazilian government transferred the state ownership of the electric company, the airports, highways, and ports to private investors to stimulate the economy. This is an example of -protectionism. -communism. -socialism. -privatization. -nationalization.
privatization.
The deregulation of an economy involves -abolishing laws related to the protection of property rights. -opposing democracy by adopting communism. -privatizing state-owned enterprises. -increasing restrictions on direct investment by foreign enterprises and international trade. -exercising a high degree of state control over production and pricing.
privatizing state-owned enterprises.
Jenner works for a mountain bike manufacturing company. His company is being sued by hundreds of customers who have been injured when the front wheel of the Columbia 4X model becomes loose and makes the bike difficult to control. The customers are demanding monetary damages. This lawsuit is based on -criminal law. -intellectual property rights. -facilitating payments. -patent violations. -product liability
product liability
Economist Hernando de Soto believes that the benefits of capitalism will not be achieved until -totalitarian governments are more widespread. -more nations adopt planned economies. -a theocratic law system is in place. -there is a shift from individualism to collectivism. -property rights are better protected.
property rights are better protected.
According to the Human Development Index, average income adjusted for PPP should be sufficient to -promote economic development. -provide basic needs such as food and shelter. -boost social class. -foster entrepreneurial dynamism. -foster decentralization.
provide basic needs such as food and shelter.
The state senator was found guilty of __________ when she tried to overcharge for licenses and permits from an international business that wanted to open a manufacturing plant in her state. -public transparency -private theft -private violation -foreign corrupt practices -public action
public action
Anastasia asked her assistant to determine the gross national income of six different countries by evaluating the GNI against the cost of living in the United States. What measure is Anastasia asking her assistant to use? -gross domestic product -return on investment -factor endowments -cash reserve ratio -purchasing power parity
purchasing power parity
In what type of economy are all businesses state-owned, the rationale being that the government can then direct them to make investments that are in the best interests of the nation as a whole rather than in the interests of private individuals? -deregulated -laissez-faire -free market -pure command -mixed
pure command
The strong enforcement of intellectual property laws helps to -reduce the attractiveness of a country as a market or investment site. -reduce the piracy (theft) of intellectual property. -reduce the investments made by companies on basic research. -limit creativity and innovation among people. -prohibit a company from having a monopoly over its breakthrough inventions.
reduce the piracy (theft) of intellectual property.
A nation would __________ as part of deregulation efforts. -increase restrictions on foreign direct investment -relax restrictions on international trade -implement price controls -commit to communism -create a centrally planned economic syst
relax restrictions on international trade
Theocratic law systems are based on -religious teachings -beliefs of a tribe. -a detailed set of codes and laws -beliefs of the ruling class. -legal precedent.
religious teachings
In the United States, citizens have the right to elect officials who make decisions on behalf of the public. This practice is the reason the United States is a -tribal totalitarian regime. -socialist state. -theocratic state. -pseudo-democracy. -representative democracy.
representative democracy.
While making a business decision, a manager who believes in rights theories is most likely to focus on -propagating home-country standards of ethics. -achieving collective goals, even if that involves violating fundamental rights. -maximizing stockholders' wealth and profits. -weighing the associated social benefits, costs, and risks. -respecting fundamental human privileges.
respecting fundamental human privileges.
Samuel Huntington held the opposite view from Fukuyama and believed that the modernization of non-Western societies caused those societies to -retreat toward the traditional. -become more Western. -promote diversity and inclusion. -reject material possessions. -focus on democratic regimes.
retreat toward the traditional.
Which philosophical approach claims that a multinational's home-country standards of ethics are the ones employees should follow even when working in foreign countries? -Sullivan principles -righteous moralism -cultural relativism -naive immoralism -Freedman doctrine
righteous moralism
Karl Marx would disagree with which of these ideas? -concern over public good rather than private profit -opposing the ideologies of capitalist societies -selling state-owned enterprises to private investors -monopoly of state-owned companies in certain industries -substantial limits on individual political freedom
selling state-owned enterprises to private investors
Collin was born into a poor family, but he worked hard during high school and went on to receive his master's degree in business followed by a high-level job. Today, he is considered "upper middle class" and enjoys a comfortable lifestyle. Collin's journey is an example of -social mobility. -reciprocal beliefs. -a rigid class system. -a caste system. -class consciousness.
social mobility.
Karl Marx promoted the idea of a(n) __________ society in which the state owned the means of production, distribution, and exchange. -monarchist -socialist -individualist -capitalist -feudalist
socialist
The social strata evident in a society is primarily derived from -the collectivistic nature of the group. -socioeconomic characteristics. -individual characteristics such as physical appearance. -evidence of competition. -government policy.
socioeconomic characteristics.
An unfavorable environment for innovations and entrepreneurship is the result of -strong legal protection of property rights. -privatization. -state monopoly in production. -a market economy -economic freedom.
state monopoly in production.
Strategies that not only help the multinational firm make good profits, but that do so without harming the environment while simultaneously ensuring that the corporation acts in a socially responsible manner with regard to its stakeholders are called -utilitarian strategies. -righteous strategies. -moral strategies. -sustainable strategies. -Kantian strategies.
sustainable strategies.
Some sociologists argue that __________ has a more rigid class structure than other Western societies, including the United States, because of its historical division into three main classes. -the United Kingdom -India -Italy -Japan -South Africa
the United Kingdom
What has strongly influenced the development of modern extended social groups? -the return to family values -falling levels of underdeveloped nations -the advent of social media -a common agreement among governments -the creation of multiple subcultures
the advent of social media
When considering the economic prospects of a country, it can be said that -countries that do not have property rights protection tend to achieve greater economic growth rates. -countries where property rights are not well respected and where corruption is rampant always have very low levels of economic growth. -the advantages of building brand loyalty and gaining experience in a country's business practices is greater for a last-mover than for a first-mover. -countries with command economies tend to achieve greater economic growth rates than free market economies. -the economic system and property rights regime are reasonably good predictors of economic prospects of a country.
the economic system and property rights regime are reasonably good predictors of economic prospects of a country.
It has been noted that there is a connection between individualism that is fostered by Protestantism and -the willingness of a country to import foreign goods. -feminine-based societies. -the extent of entrepreneurial activity in a nation. -the growth of the caste system. -government intervention in business activities.
the extent of entrepreneurial activity in a nation.
During the second stage of the ethical decision-making process, managers must determine whether a proposed decision would violate -the global commons. -the fundamental rights of any stakeholders. -utilitarian beliefs. -home country values. -a righteous distribution.
the fundamental rights of any stakeholders.
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 -corporate social responsibility. -the global tragedy of the commons. -facilitating payments. -the difference principle. -cultural relativism.
the global tragedy of the commons.
Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, while laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that the -all countries have the same legal environments. -legal system does not affect the attractiveness of a country as an investment site or market. -the legal framework of a country reflects the rulers' dominant political ideology. -economic system of a country is independent of its legal system. -legal system of a country is not influenced by the prevailing political system.
the legal framework of a country reflects the rulers' dominant political ideology.
Miller Plastic Group is considering two different countries for their upcoming expansion. When the board was reviewing the financial figures of the countries, the chief financial officer reminded board members that the figures might not tell the entire story as some economic activity could be taking place in the form of barter agreements and cash transactions that are never recorded. What is the CFO referring to? -the shadow economy -tariff barriers -deregulation -purchasing power parity -privatization
the shadow economy
A company's organizational culture refers to -the employees, the product, and competition that affects decisions -the relationship between home-country employees and expatriates. -the leadership style of the organization. -the values and norms that are shared among the employees. -the pressure managers feel to meet unrealistic business goals.
the values and norms that are shared among the employees.
What political system has a government in which one political party exercises absolute control over all spheres of human life and doesn't allow opposing political parties to exist? -democracy -socialism -right-wing -totalitarianism -federalism
totalitarianism
While he was shopping for new clothes, Sanjay noticed there was a sale on shirts by Tommy Hilfiger. The Tommy Hilfiger name is an officially registered __________ in menswear clothing. -intellectual property -contract -patent -trademark -copyright
trademark
A nation that has inadequate enforcement of property rights reduces the motivation for innovative activity. -true -false
true
A shadow economy refers to economic activity that might be in the form of unrecorded cash transactions, which are not reflected in the "official" figures reported by a country. -true -false
true
According to the World Values Survey, as countries get richer, a shift occurs away from "traditional values" linked to religion, family, and country, and toward "secular rational" values. -true -false
true
Advances in technology and communication have fostered the growth of democratic ideals. -true -false
true
An emphasis on collective action makes it easier to build teams within an organization to perform group tasks -true -false
true
An ethical dilemma occurs when neither of the choices in a situation seems appropriate or right. -true -false
true
An internal stakeholder includes an individual who owns the business. -true -false
true
Businesses in a command economy have little incentive to be efficient because they cannot go out of business. -true -false
true
Class membership in the United States is based on economic achievement rather than familial background and schooling. -true -false
true
Cultural norms, such as respect for others and neatness, are part of the "hidden curriculum" in schools. -true -false
true
Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth, define innovation broadly to include not just new products but also new processes, new organizations, new management practices, and new strategies. -true -false
true
Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from employees. -true -false
true
In a totalitarian country, all the constitutional guarantees on which representative democracies are built—an individual's right to freedom of expression and organization, a free media, and regular elections—are denied to the citizens. -true -false
true
In the United States, individuals who are born into a class system and are at the bottom of the social hierarchy can work their way up. -true -false
true
It may be more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses. -true -false
true
John Rawls argues that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage. -true -false
true
Most of the ethical systems in place around the world are the product of religion. -true -false
true
One criticism of the righteous moralist approach to ethics is that adopting home-country standards isn't always appropriate. -true -false
true
Organizational culture is one of the determinants of ethical behavior. -true -false
true
The Cold War can be thought of as a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States. -true -false
true
The OECD convention on bribery obliges member states and other signatories to make the bribery of foreign public officials a criminal offense. -true -false
true
The group is the typical unit of social organization found in non-Western societies. -true -false
true
The phenomenon known as the tragedy of the commons is in evidence when a resource that is held by all, but not owned by anyone, is depleted to the point of degradation. -true -false
true
The social democrats vowed to achieve socialism by turning their backs on revolution and dictatorship. -true -false
true
The utilitarian approaches to ethics are based on the idea that the moral worth of actions is determined by their ultimate consequences. -true -false
true
Under the tenets of individualism, citizens should have freedom to choose their own economic and political pursuits. -true -false
true
Unfortunately, it is common in business practices to assume that people from different cultures make ethical decisions using the same process. -true -false
true
When a murabaha contract is used in Islamic banking, a company essentially pays the bank to purchase equipment, supplies, and other needs on behalf of the company. -true -false
true
When firms do not wish to accept the Contracts for the International Sale of Goods, they often opt for arbitration by a recognized arbitration court to settle contract disputes. -true -false
true
China, South Korea, Taiwan, Singapore, and Hong Kong have had the fastest-growing economies in the past 40 years. What did these five countries have in common at the start of their economic spur? -undemocratic governments -high tariff barriers -active entrepreneurial activity -strong property rights protection -extensive trade agreements
undemocratic governments
Sun-Jun relies on a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States. He is using the __________ approach to ethics to determine his answer. -naive moralist -cultural relativist -Friedman doctrine -utilitarian -difference principle
utilitarian
The __________ approach to ethics holds that an action is judged desirable if it leads to the best possible balance of good consequences over bad consequences. -righteous moralist -naive immoralist -utilitarian -ethnocentric -cultural relativist
utilitarian
Fenton Incorporated plans to do business with a company located in the Leone Republic, a common law country. The companies have agreed to draft the business contract in the Leone Republic. Since the contract will be drafted under a common law framework, it will be -somewhat general since many issues are already covered in the law. -easy to draft. -less expensive than a contract drafted under a civil law system. -short. -very detailed with all contingencies spelled out.
very detailed with all contingencies spelled out.
In a nation that ensures strong legal protection of property rights, it is likely that the businesses and individuals will -want to invest more in innovations. -avoid privatization. -avoid entrepreneurial activity. -be faced with a higher tax debt. -face more corruption.
want to invest more in innovations.
Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan concluded that following his principles -was not sufficient to ethically justify the existence of Western businesses in South Africa. -had led international companies to successfully combat the apartheid regime in South Africa. -was the most ethical way of doing business in South Africa. -would safeguard the citizens and businesses in South Africa from Western businesses. -would be effective only when companies opposed democracy in South Africa.
was not sufficient to ethically justify the existence of Western businesses in South Africa.
Camron loves to invent new products but knows that in his country it is difficult for him to reap the rewards of innovations because they are quickly and legally copied by others after he releases them into the marketplace. As a result, Camron has decided to stop inventing. What is preventing Camron from doing what he loves? -weak property rights protection -strong government intervention -purchasing power parity -privatization -excessive tariffs
weak property rights protection
The practice of "gift giving" between the parties to a business negotiation is considered right and proper in many Asian cultures. However, some Westerners view the practice as a form of bribery, and therefore unethical, particularly if the gifts are substantial. This demonstrates that -Asian countries are still influenced by totalitarianism. -what is ethical depends on one's cultural perspective. -accepted employment practices are universal. -Asian cultures are more economically advanced. -notions of ethics are universal.
what is ethical depends on one's cultural perspective.
Which language is spoken as the mother tongue by the largest number of people in the world? -English -Hindi -Spanish -Mandarin -French
Mandarin
The Sullivan principles resulted from Leon Sullivan's response to -grease payments. -deforestation. -anti-dumping laws. -apartheid laws. -globalization.
apartheid laws.
Under a civil law system, it is the responsibility of a judge only to __________ the law. -create -interpret -apply -update -assess
apply
A composer can protect an original musical score from being copied and sold by someone else by acquiring a(n) -copyright -affidavit -warrant -trademark -patent
copyright
A(n) __________ is considered an external stakeholder of an organization. -trustee -customer -director -employee -stockholder
customer
A country that abolishes laws that regulate private enterprises and removes price controls is in the process of -deregulation. -isolationism. -privatization. -divestiture. -industrialization.
deregulation
The Simpson Group decided against doing business with a country in Central America because the country exercises tight control over prices and output, prohibits private enterprises from operating in most sectors of the economy, and severely restricts foreign direct investment and international trade. In other words, this country is against the practice of -deregulation. -collectivism. -a command economy. -protectionism. -industrialization.
deregulation.
Straw men approaches to ethics refer to those that are -used in masculine societies. -based on religious values. -inappropriate guidelines. -used in democratic but not totalitarian states. -accepted worldwide.
inappropriate guidelines.
Which term best represents the relationship between the level of corruption and economic growth rate in a country? -independent -zero correlation -directly proportional -positive correlation -inversely proportional
inversely proportional
The __________ system of a country encompasses the process through which redress for grievances is obtained. -political -demographic -legal -theocratic -economic
legal
Purchasing power parity is used to adjust gross national income and make a more direct comparison of __________ in various countries. -population density -factor endowments -labor productivity -geographical area -living standards
living standards
Ocean Athletics is hesitant about entering Ukraine, because the country has been experiencing social unrest in recent years. Based on this information, what type of risk is Ocean Athletics trying to avoid? -economic -technological -ethical -legal -political
political
Violent conflicts on the streets of Chicago, Los Angeles, and other cities can cause drastic changes in a nation's business environment and ultimately affect profits. When this occurs, businesses are facing a(n) __________ risk. -demographic -technological -physiological -political -ethical
political
When considering the legal use of the word, __________ is the term given to a resource over which an individual or business holds a legal title. -liability -shareholder -possession -contract -property
property
Zhang is a representative for a Chinese company that is based in Confucian culture. When Zhang mentions to his staff that guanxi should be taken into consideration, what is he referring to? -government tariffs that could affect business -relationships or connections the business has -working with foreign nationals who have opposing views -the ability to produce the best product at the lowest cost -building a company from the ground up
relationships or connections the business has
When deregulation efforts are enacted, privatization tends to -cease to exist. -drop off dramatically -weaken business holdings. -create more monopolies. -sharply increase.
sharply increase.
Gross national income figures should be carefully evaluated because they don't take into account differences in -the available workforce. -government intervention. -political power. -market conditions. -the cost of living.
the cost of living.
Intellectual property laws protect -a company from losing business to a monopoly. -individuals who want to open a franchise of a retail store. -government officials when traveling to foreign countries -the originator of a new invention. -the parts supplier in an international transaction.
the originator of a new invention.
To calculate purchasing power parity, gross national income is adjusted based on -the median cost of living in the top five economic nations. -average daily exchange rates in the selected nation. -the trading value of gold in the exchange market. -limits set by each nation's government. -the status of the cost of living in the United States
the status of the cost of living in the United States
Karl Marx believed that in a capitalist society, the few benefit at the expense of the many. -true -false
true
The __________ supports the idea that everyone is imagined to be oblivious to all of his or her particular characteristics, such as, race, sex, intelligence, nationality, family background, and special talents. -naive immoralism -veil of ignorance -tragedy of the commons -straw man approach -difference principle
veil of ignorance
A country's national competitive advantage and its attractiveness as a location for international business are most influenced by -a well-developed education system. -the existence of a common religion. -the presence of more than one language or culture. -the prevalence of communist ideals. -an emphasis on caste stratification.
a well-developed education system.
The cost of doing business is most likely to be the lowest in -primitive or undeveloped economies. -open democratic societies. -countries where local laws and regulations set strict standards with regard to product safety, safety in the workplace, and environmental pollution. -closed totalitarian states. -countries that lack well-established laws for regulating business practice.
open democratic societies.
A common law system is based on tradition and precedent. -true -false
true
An example of public action is when a government official extorts income. -true -false
true
One way to assess a political system is by understanding the emphasis on individualism or collectivism. -true -false
true
Which ethical approach typically focuses on the attainment of fair and equitable distribution of economic goods and services? -utilitarian approaches -straw men approaches -justice theories -rights theories -Sullivan principles
justice theories
The base for the adjustment of purchasing power parity is the cost of living in -the United Kingdom. -Brazil. -Russia. -the United States. -China.
the United States
One identifier of a democratic state is a nonpolitical police force. -true -false
true
