International Business Midterm 1 (Koepp)

Which of the following companies would be MOST likely to retain control over its trademarks in a foreign market that practices both​ "first-to-file" and​ "use it or lose​ it" policies?

A Chinese company that establishes its trademark in the new market and starts a small branch office in the country immediately.

Which of the following is NOT one of​ Hofstede's dimensions of national​ culture?

A is the answer A. Cultural orientation B. Social orientation C. Time orientation D. Goal orientation E. Uncertainty orientation

Which of the following is NOT an element of​ culture?

A is the answer A. Adaptation B. Values and attitudes C. Social structure D. Religion E. Language

Which of the following BEST describes the difference between a multinational corporation and a multinational​ organization?

A multinational organization is an organization that has involvement in multiple countries and may be​ for-profit or​ not-for-profit; a multinational corporation is a​ for-profit organization that has involvement in multiple countries.

Which of the following BEST describes the difference between the way a person from an Anglo country would define family and the way a person from an Arab country would define​ family?

A person from an Anglo country would likely include only parents and​ siblings; a person from an Arab country would likely include​ cousins, uncles, and​ in-laws as well.

Which of the following BEST describes the difference between a highly socially stratified country and a less socially stratified​ country?

A person in a highly socially stratified country would be offended to work alongside someone from a lower​ stratum; a person in a less socially stratified country would likely not be aware of such distinctions.

What is the general purpose for​ "backtranslation"?

A way to assure oneself that a translated phrase is correct when translated back into the original language.

The process by which people not only understand a foreign​ culture, but also modify and adapt their behavior to make it compatible with that culture is called​ ________.

Acculturation

Which of the following best describes a culture that changes in response to external​ factors?

Adaptive

Why do countries with access to advanced technology avoid selling their technology to countries with weak intellectual property​ laws?

Advanced technology loses its market value if it is illegally copied and disseminated.

The five Central Asian republics of the former Soviet Union—​Kazakhstan, ​Uzbekistan, Tajikistan,​ Turkmenistan, and Kyrgyzstan—have much in common. Of the​ following, which is NOT one of important things they have in​ common?

All have arable land

Point Technologies and its distributor in Singapore signed an International Distribution Agreement. In the event of a​ dispute, they have agreed not to rely on Singaporean or U.S.​ courts, but to have a third party hear the dispute and decide right and wrong. What is this process normally referred to​ as?

Arbitration

Which of the following areas have​ aggressive, efficient entrepreneurs who have increasingly put competitive pressure on firms in other areas to improve their productivity and the quality of their​ products?

Asia

Which is NOT one of the elements of the model developed by Pankaj​ Ghemawat, of IESE Business School in​ Barcelona, as a useful framework for understanding the operating challenges facing international businesses because of national​ differences?

B. A. Geographic distance B. Labor distance C. Economic distance D. Administrative distance E. Cultural distance

Which of the following describes a similarity between transfer risk and ownership​ risk?

Both risks are directly related to governments either seizing businesses or their profits.

What are the BRIC​ countries?

Brazil, Russia,​ India, and China

Which of the following is NOT true about​ Canada's attractiveness in the international​ marketplace?

C is the answer A. Close proximity to the U.S. B. Stable political system C. No internal threats or factions Your answer is correct. D. Stable legal system E. Excellent infrastructure and educational system

Which of the following is NOT a characteristic of​ culture?

C is the answer A. Culture is shared. B. Elements of culture are interrelated. C. Culture is unchanging and immutable. D. Culture reflects learned behavior. E. Culture is adaptive.

Which of the following country environments can MNCs NOT​ influence?

C is the answer A. Political B. Economic C. Historical Your answer is correct. D. Cultural E. Technological

Which of the following is an example of a version of English taught to​ non-native speakers that is sufficient to conduct​ business?

Caterpillar Fundamental English

​Dual-use technologies have applications that can be used for which of the​ following?

Civilian and Military purposes

Which of the following describes a principal difference between common law and civil law​ systems?

Common law grows out of a collection of court​ rulings, whereas civil law is based on detailed written codes of law.

Linguistic ties often create which type of important advantage because the ability to communicate is so important in conducting business​ transactions?

Competitive

Which of the following is FALSE regarding emerging​ markets?

D is False A. Some scholars limit the term to the BRIC economies. B. Just two of the emerging markets together account for more than​ one-third of the​ world's population. C. Some researchers use the term to describe the​ so-called Big Ten. D. There is a universally accepted definition of the countries to be included in the emerging markets category. Your answer is correct. E. They are defined as countries whose recent growth or prospects for future growth exceed that of traditional markets.

Which of the following is NOT an area designed to regulate the domestic economic​ environment?

D is the answer A. Financing operations B. Workforce management C. Product marketing D. Religious practice Your answer is correct. E. Technology development

Which of the following describes a difference between international and domestic​ business?

D. A. Domestic business involves transactions between​ corporations; international business involves transactions within one corporation. B. Domestic business involves importing​ only; international business involves both importing and exporting. C. Domestic business involves transactions within one​ corporation; international business involves transactions between corporations. D. Domestic business involves transactions that use one​ currency; international business involves transactions that use multiple currencies. E. Domestic business involves transactions that use two​ currencies; international business involves transactions that use more than two currencies.

While most countries have passed laws protecting intellectual​ property, which of the following agreements is NOT specifically written to protect intellectual property​ rights?

E is the answer A. Universal Copyright Convention B. The Paris Convention C. Berne Convention for the Protection of Literary and Artistic Works D. ​Trade-Related Intellectual Property Rights Agreement E. North American Free Trade Agreement

A country whose recent growth or prospects for future growth exceed that of traditional markets is known as which of the​ following?

Emerging market

Amaya is a native English speaker. Which of the following is a disadvantage to her in communicating with international business​ associates?

English speakers feel little need to learn a second language.

You are an American business owner operating a steel mill in a foreign country. After a violent​ revolution, the​ country's new government determines that your mill should be nationalized. It seizes the​ company, but offers you fair market value in cash for its assets. In which of the following has the country​ engaged?

Expropriation

During the Cold War between the United States and the Soviet​ Union, many scholars divided the world into three regions. Which of the following BEST describes the difference between a First World nation and a Third World​ nation?

First World nations were wealthy and usually had political and economic ties to the United​ States; Third World nations were poor and were primarily located in​ Africa, Asia, and Latin America.

Which of the following is a type of international investment that involves the purchase of foreign financial assets for a purpose other than​ control?

Foreign Portfolio Investment

ABC Medical Products acquires 51 percent of XYZ Productos​ Medicos, a Mexican corporation. Which of the following is this an example​ of?

Foreign direct investment​ (FDI)

Which of the following countries exerts strong leadership within the​ EU, and has led the promotion of common European defense and foreign policies and strengthening human and​ workers' rights in the​ EU?

France

Of the following​ countries, which represents the European​ Union's most important​ member?

Germany

​___________________ was the Soviet leader whose economic and political reforms led to the Soviet​ Union's collapse in 1991 and subsequent declarations of independence by the 15 Soviet republics.

Gorbachev

Central America and the island states of the Caribbean are also part of North America. Which of the following countries has NOT achieved high income status and is considered politically​ troubled?

Guatemala

How would you characterize the U.S. on the​ Hofstede's Five Dimensions of​ Social, Power,​ Uncertainty, Goal and Time​ Orientation?

High, low, medium, medium, low

The country that Extech Corp. has decided to enter is one in which​ long-term relationships, cultural​ clues, and understanding and emotions are important in doing business. This​ country's approach would best be described as​ ________.

High-Context Culture

In a culture in which people value material​ possessions, money, and​ assertiveness, where would you place them and on what Hofstede​ dimension?

High​ (aggressive) on the Goal Orientation dimension

Your company wants to do business with both Taiwan and​ China, but you realize that the governments of these two countries do not get along and will not work well with each other. Which of the following countries could best help your company moderate these​ problems?

Hong Kong

Walmart is based in the United States. Walmart opens a store in​ Alberta, Canada. Which of the following best describes​ Canada's relationship with​ Walmart?

Host Country

You are an advisor helping to resolve a dispute between a French company and a German company. You determined the dispute should be resolved through litigation in France using French law. What question must still be answered before you can conclude that the dispute will be resolved​ fairly?

How can you be sure that both sides will abide by the​ agreement?

For much of the post World War II​ period, many South American countries followed which economic development​ policy?

Import substitution

Buying products made in other countries for use or resale in​ one's own country is known as which of the​ following?

Importing

Which of the following is one of the benefits to host countries of encouraging foreign direct investment​ (FDI)?

Increased technology transfer

Which country instituted​ market-opening reforms, which reduced trade​ barriers, opened the doors to increased​ FDI, and modernized the​ country's financial​ sector?

India

A multinational corporation wants to hire the most qualified worker for one of its branches in​ India, but it is concerned that her hiring will hurt morale because of her low social status. Which of the following is the basis of the​ corporation's concern?

Indian culture is highly stratified.

​Jamal's company sells the rights to use its logo to a foreign company. This is an example of which of the​ following?

International Licensing

​Jose's company agrees to operate facilities for a firm in another country for an​ agreed-upon fee. This is an example of which of the​ following?

International Management Contract

Which of the following is TRUE regarding international business​ expansion?

International business expansion has led to an expansion of business activity into new markets previously insulated from the international marketplace.

Which of the following describes a primary difference between international licensing and international​ franchising?

International licensing involves only intellectual property such as​ patents, trademarks, brand​ names, and​ copyrights; international franchising involves operating systems as well.

The firms in which country pioneered​ just-in-time inventory management​ techniques?

Japan

Which of the following BEST illustrates the difference between the Japanese negotiating style and the Latin American negotiating​ style?

Japanese negotiators are likely to make subtle power​ plays; Latin American negotiators are likely to exploit weaknesses.

Which of the following represents a major challenge to many African​ countries?

Leveraging the growth in their commodities sector to create​ broad-based economies.

Which of the following has allowed people to learn about other cultures​ firsthand?

Low airfares

Melanie works in the United States selling computer hardware to a company in Germany. This is known as which of the​ following?

Merchandise Export

Which of the following BEST describes the difference between merchandise import and service​ import?

Merchandise import involves purchasing tangible items from a foreign​ company; service import involves purchasing intangible products from a foreign company.

You are an oil executive considering expanding your operation into South American markets.​ However, you are concerned that governments throughout South America have recently begun nationalizing oil industries within their borders. The governments argue that oil is a natural resource that should benefit their own countries​ only, rather than foreign​ businesses, but have allowed all other industries to remain independent. This is an example of which type of​ risk?

Micropolitical risk

What subsidiary of the World Bank provides insurance against political​ risks?

Multilateral Investment Guarantee Agency​ (MIGA)

Stephanie works for a company that has branches in more than 50 countries. Her company can best be described as which of the​ following?

Multinational Corporation (MNC)

The​ _______________ was initiated in 1994 between​ Canada, the United​ States, and​ Mexico, which reduced barriers to trade among the three countries over a​ 15-year period.

North American Free Trade Agreement (NAFTA)

Which of the following acronyms stands for an agency that offers U.S. companies insurance against the political risk of foreign​ investments?

Office of Public Insurance Counsel (OPIC)

Which practice makes it difficult for a competitor to improve its own technology without infringing on the intellectual property of​ others?

Patent Flooding

Budi is the president of a​ medium-sized Indonesian company. During his​ workday, Budi concerns himself with strategy and pays little attention to daily operations. This is an example of which of the​ following?

Power-respecting orientation

Under whose elections and leadership did​ Russia's economy rebound at the beginning of the new​ century?

Putin

XYZ​ S.A., a Chilean subsidiary of a U.S. company operating in​ Chile, has been denied the right to send some of its profits back to its home office. What is this restriction​ called?

Repatriation

Of the following former Soviet bloc​ countries, which one did NOT restructure its economy from a centrally planned communist system to a decentralized market system and did NOT join the​ EU?

Russia

One country in which a lack of the rule of law appears to be affecting foreign direct investment​ (FDI) is​ ______________.

Russia

On the Fourth of July in the United​ States, almost all citizens have a cookout during the early evening and then attend a fireworks show. This is an example of what type of cultural​ behavior?

Shared

Which of the following countries has most closely tried to emulate the economic path taken by​ post-World War II​ Japan?

South Korea

Which of the following countries has relied on close cooperation between government and several large conglomerates​ (chaebol), which in some ways are similar to the Japanese​ keiretsu?

South Korea

Which Asian countries are known as the​ "Four Tigers"?

South Korea, Taiwan, Singapore, and Hong Kong

Laws enacted by legislative action are known as​ ___________________________.

Statutory law

Business people from which of the following countries are most likely to hide their​ emotions?

Taiwan

​__________________ comprises 28 countries that are seeking to promote peace and prosperity by reducing mutual barriers to trade and investment.

The European Union (EU)

​_________________________ resisted initiatives to broaden the​ EU's powers​ and, as a traditionally strong supporter of free​ trade, provided an important counterweight to French protectionist tendencies.

The United Kingdom (UK)

Chinese leaders are trying to identify the challenges that will be the hardest for China to face. Which of the following would you identify as a significant challenge for China to​ face?

The labor migration as rural workers leave to become factory workers.

What is meant by the term​ "lingua franca," which is used in international​ business?

The predominant language used in international business.

​_________ means​ "that judges decide cases​ 'without respect to​ persons', that​ is, without considering the social​ status, attractiveness, etc. of the parties or of their​ lawyers."

The rule of law

Saudi​ Arabia's legal system is based largely on the teachings of the Koran. This type of government is known as which of the​ following?

Theocratic

Which of the following is NOT a reason that has compelled firms to become more​ global?

To improve the probability of being acquired

The principles and standards accepted by members of a society are known as which of the​ following?

Values

Which of​ Russia's leaders tried to privatize many of​ Russia's state-owned firms in an attempt to raise​ productivity, economic​ health, and​ performance?

Yeltsin

Firms can reduce the chances that they are sending the wrong message to their customers by using a technique known as​ ___________________.

backtranslation

When a foreign government seizes a foreign​ company's assets in their country but does not provide any compensation in​ return, it is called​ ________.

confiscation

A core competency is​ a(n) ________.

distinctive strength or advantage that is central to a​ firm's operations

​A(n) ________________ is a comprehensive restriction against all commerce with a given country—it may be imposed by countries acting in unison or alone.

embargo

If a country attempts to control or regulate business activities outside of its​ borders, it is called​ ________.

extraterritoriality

Money sent out of a politically or economically unstable country to one perceived as a safe haven is known as​ ____________________.

flight capital

The purchase of all the common stock of the​ UK's Cadbury PLC by Kraft is an example of​ _____________________.

foreign direct investment

No area of the world has undergone as much economic change in the past two decades as the countries carved out of the​ __________________.

former Soviet Union

According to Geert​ Hofstede, a country culture that communicates that​ "the whole is more important than the​ parts," i.e., the organization is more important than the​ employees, would tend to have a​ ________.

high collectivist social orientation

International trade and investment declined throughout the 1930s as a result of​ _______________.

increased tariffs and quotas

The willingness of foreign firms to transfer technology to a country and an important determinant of a​ country's technology environment is the degree of protection that the​ country's laws offer to​ _________________.

intellectual property rights

When​ Denzel's firm authorizes a firm in a second country to use its​ patents, the firm is engaging in​ ________________________.

international licensing activities

In the United​ Kingdom, service exports and imports such as​ banking, travel, and accounting activities are known as​ ________ trade.

invisible trade

The U.S. dollar serves as​ ________ the currency in which the sale of goods and services is denominated.

invoicing currency

The type of risk that affects all firms in a country is known as​ ________.

macropolitical risk

Many South American countries suffer from huge income disparities and widespread poverty among their peoples. This has led to​ __________.

political instability and continual cries for reform