International Business Quizzes

While it might differ in other countries, in the United States the customary distance apart that should be used in a business discussion is 3-5 feet. 5-8 feet. 18-24 inches. at least 10 feet. 36 inches or under.

5-8 feet.

Corinne has analyzed the overall attractiveness of doing business with three possible countries and has determined that Country A is the best choice based on the potential for huge economic growth that should occur there because of recent advances in technology. Which factor of overall attractiveness is Corinne basing her decision on? costs risks norms behaviors benefits

benefits

In many of the world's nation-states, there has been a move away from ________ since the late 1980s. economic gains democratization free markets centrally planned command economies legal systems to safeguard property rights

centrally planned command economies

A ________ economy follows the principles of collectivism as resources are allocated based on "the common good." mixed private supply market command

command

What political system has a government that is by the people, exercised either directly or through elected representatives? right-wing totalitarianism democracy communism socialism tribal totalitarianism

democracy

A country that abolishes laws that regulate private enterprises and removes price controls is in the process of deregulation. industrialization. divestiture diversification isolationism.

deregulation.

The two caveats of the Sullivan principles are first, a company should not obey the apartheid laws in its own South African operations and second, a company should do everything possible to abolish apartheid laws. provide facilitating payments to foster the apartheid movement. limit toxic emissions and control environmental pollutants. not add to the tragedy of the commons. return production facilities to the home country.

do everything possible to abolish apartheid laws.

In a pure command economy, the prices at which goods and services are sold are planned by the consumers. producers. government. private monopolists. World Trade Organization.

government.

A payment made to expedite or to secure the performance of a routine governmental action is called a grease payment. government fee. tariff. lump payment. protection payout.

grease payment.

In the Republic of Nabu, natives are resistant to change and do not like to take risks. They value job security and retirement benefits. In addition, they have a strong need for rules and regulations. Based on this information, the Republic of Nabu demonstrates which cultural dimension identified by Hofstede? individualism femininity high uncertainty avoidance low power distance masculinity

high uncertainty avoidance

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 communism. protectionism. nationalization. privatization. socialism.

privatization.

Julie asked her assistant to determine the gross national income of three different countries by evaluating the GNI against the cost of living in the United States. What measure is Julie asking her assistant to use? factor endowments gross domestic product return on investment cash reserve ratio purchasing power parity

purchasing power parity

Connor was born into a poor family, but he worked hard during high school and went on to receive his master's degree in business. Today, he is considered "upper middle class" and enjoys a comfortable lifestyle. Connor's journey is an example of social mobility. a caste system. reciprocal beliefs. class consciousness. a rigid class system.

social mobility.

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 Kantian strategies. sustainable strategies. utilitarian strategies. moral strategies. righteous strategies.

sustainable strategies.

During the second stage of the ethical decision-making process, managers must determine whether a proposed decision would violate home country values. utilitarian beliefs. the global commons. the fundamental rights of any stakeholders. a righteous distribution.

the fundamental rights of any stakeholders.

Krisp Systems 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. corruption. cultural relativism. the global tragedy of the commons. sustainability

the global tragedy of the commons.

The basic position of the Friedman doctrine says that businesses should undertake social expenditures beyond those that are mandated by the law. the only social responsibility of business is to increase profits, so long as the company stays within the rules of law. the best business decisions are those that produce the greatest good for the greatest number of people. a multinational's home-country standards of ethics are appropriate to follow in foreign countries. people should be treated as ends and never purely as means to the ends of others.

the only social responsibility of business is to increase profits, so long as the company stays within the rules of law.

Saturn Systems Inc., which is headquartered in the United States, has its production plant located in a less-developed country where working conditions are poor. For example, employees work 15-hour shifts, are exposed to toxic chemicals, and are forced to work overtime. What type of behavior is Saturn Systems Inc. exhibiting? unethical just uneconomical fair courageous

unethical

The ________ approach to ethics holds that the moral worth of actions or practices is determined by their consequences and is committed to the maximization of good and the minimization of harm. cultural relativism Kantian utilitarian righteous moralism Friedman doctrine

utilitarian

AllSpice 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, what best characterizes the contract? very detailed with all contingencies spelled out short less expensive than a contract drafted under a civil law system somewhat general since many issues are already covered in the law easy to draft

very detailed with all contingencies spelled out

Communists believed that socialism could only be achieved through state-owned enterprises. violent revolution. the free flow of goods. democratic principles. the feudal system.

violent revolution.

TimeForce, 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 TimeForce consider for entry? Country A, which lacks democratic institutions and has a market-based economic system. Country B, which has democratic institutions and where economic activity is heavily regulated by the state. Country C, which has democratic institutions and where corruption is rampant. Country D, which has democratic institutions and a market-based economic system. Country E, which lacks democratic institutions and where property rights are always respected.

Country D, which has democratic institutions and a market-based economic system.

If Kendra was working in the home office in Ohio she never would have agreed to pay the government official to speed up the delivery of the cargo; but 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 Kendra using to make her decision? Kantian approach Cultural relativism Naive immoralism Righteous moralism Friedman doctrine

Cultural relativism

American company Software Unlimited is planning to expand its operations to the Bangor Republic where the group is the primary unit of social organization. According to this information, what is a likely outcome for Software Unlimited from operating in the Bangor Republic? Employees will strive to achieve a personal brand. Employees will lack company loyalty. Employees will constantly innovate with their creative ideas for products. Employees will fail to obtain company-specific experience and knowledge. Employees will achieve close cooperation with others.

Employees will achieve close cooperation with others.

The mother tongue of the largest number of people is Mandarin. French. English. Spanish. Hindi.

Mandarin.

________ gives employees the integrity to go public to the media and blow the whistle on persistent unethical behavior in a company. Moral courage Cultural relativism Righteous moralism Moral imagination Naive immoralism

Moral courage

What is one criticism regarding Geert Hofstede's research on cultural dimensions? It did not consider physical capabilities. The research team consisted of only Europeans and Americans. It did not assume a one-to-one correspondence between culture and nation-state. It did not assess cultures affecting the workplace. It was too all-encompassing and did not allow for differences.

The research team consisted of only Europeans and Americans.

A country that has ________ is an unattractive choice for international business. strong protection of property rights market-based economic policies a closed totalitarian dictatorship the presence of business contract law a large market size in terms of population

a closed totalitarian dictatorship

People in the West tend to associate a representative democracy with weak property rights protection. a command economic system. a theocratic regime. low level of life expectancy at birth. a market economic system.

a market economic system.

Nobel Prize-winning economist Amartya Sen would agree that ________ is/are an important factor in development of a country. tariff barriers deregulation privatization basic health care religious sanctity

basic health care

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 society. culture. tradition. nationality. ritual.

culture.

Shayla 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. Shayla's attitude is an example of ethnocentrism. Confucian dynamism. cultural convergence. collectivism. class consciousness.

ethnocentrism.

A country that has lax intellectual property laws will find that many companies in the country will focus on innovative products. firms will be reluctant to enter into such a country. imitating a patented product or process will become difficult. inventors and authors will have better opportunities to grow and to be rewarded. most of the companies in the country will commit themselves to extensive basic research.

firms will be reluctant to enter into such a country.

Within the context of the individual as the basic unit of a social organization, what is an implication of the emphasis on individualism in many Western societies? high degree of social stratification low degree of competition between individuals high degree of managerial mobility between companies low degree of entrepreneurial activity high degree of cooperation between individuals

high degree of managerial mobility between companies

The development of new products, processes, organizations, management practices, and strategies is called deregulation. privatization. innovation. private action. protectionism.

innovation.

U.S.-based Centra Corporation is hesitant about entering into a licensing agreement with Fission, Inc., a company from another nation, due to the likelihood that Fission will break a contract or expropriate property rights. What specific type of risk is Centra Corporation trying to avoid? ethical legal economic technological political

legal

HealthWise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants HealthWise Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new diet supplement? copyright treaty trademark warranty patent

patent

Jason runs a manufacturing company. He hires five people based on their physical abilities because they are able to lift heavy boxes in the stockroom and two people based who are able to strategically plan the company's next steps. Jason realizes that people are not equal in physical and intellectual capabilities, an aspect of which cultural dimension identified by Hofstede? individualism masculinity uncertainty avoidance class consciousness power distance

power distance

A ________ is an individual or group that has an interest or claim in what a company does and how well it performs. supplier competitor trustee drawee stakeholder

stakeholder

A form of government in which political power is monopolized by a party, group, or individual that governs according to religious principles is called what type of totalitarianism? communist tribal theocratic representative right-wing

theocratic