Online Assignments

When an individual goes through a process of becoming acclimated to a different culture, it is called ________. A. socialization B. individualism C. acculturation D. culturalism E. adaptation

C. acculturation

Chinese culture emphasizes group orientation and achieving consensus. Which Hofstede typology matches this emphasis? A. Collectivism B. Short-term orientation C. Uncertainty avoidance D. Masculinity E. Power distance

A. Collectivism

________ risk represents possible losses or failures as a result of poorly developed or implemented business strategies, tactics, or procedures. A. Commercial B. Country C. Currency D. Political E. Cross-cultural

A. Commercial

​_______ are moral principles and values that govern the behavior of​ people, firms, and governments regarding right and wrong. A. Ethics B. Attitudes C. Behavioral standards D. Beliefs E. Social responsibilities

A. Ethics

Which of the following dimension of Hofstede's typology is applicable in Chinese culture? A. High power distance B. Low uncertainty avoidance C. Individualism D. Short-term orientation E. Monochronic orientation

A. High power distance

​________ involves a​ corporation's dealings with its​ consumers, competitors,​ suppliers, and distributors and includes portraying appropriate and ethical behavior. A. Marketplace CSR B. Workplace CSR C. Environmental CSR D. Economic CSR E. Community CSR

A. Marketplace CSR

Which of the following is a societal consequence of globalization? A. Offshoring and the flight of jobs B. Growth of global investment and financial flows C. Worldwide reduction of barriers to trade D. New risks and intense rivalry from foreign competitors E. Integration and interdependence of national economies

A. Offshoring and the flight of jobs

________ include businesses, institutions, and governments. A. Organizational buyers B. Individual consumers C. Facilitators D. Focal firms E. Retailers

A. Organizational buyers

Johnson & Johnson created alcohol-free Listerine Zero for Muslim countries, where spirits are forbidden, and Green Tea Listerine for Asian markets. This example shows that ________. A. cultural differences necessitate the tailoring of marketing activities to target markets B. differences in national character can create trade barriers C. standardized products achieve economies of scale D. most products can be standardized worldwide E. religious beliefs do not influence product choices

A. cultural differences necessitate the tailoring of marketing activities to target markets

​________ favors trade achieved by maximizing exports and minimizing or even impeding imports. A. Free trade B. Factor proportions theory C. Mercantilism D. New trade theory E. International product life cycle theory

C. Mercantilism

Infosys has an advantage currently due to its​ ________. A. natural resources B. vast land ownership C. reputation in philanthropic efforts D. focus on Indian language E. labor cost

E. labor cost

Purchasing power parity​ (PPP) adjusts prices to​ ________. A. help procure products and services from suppliers or subsidiaries that operate abroad B. show how much income is held by an​ economy's middle class compared with its size C. take into account emerging markets that have recently doubled in share of world imports D. demonstrate how much of a good one can buy in a particular​ currency, such as the U.S. dollar E. reflect the goods consumers can​ buy, as well as account for their currency and standard of living

E. reflect the goods consumers can​ buy, as well as account for their currency and standard of living

Following charges that some of its Indian subcontractors were using forced child​ labor, GAP withdrew a line of​ children's wear from its clothing stores worldwide.​ GAP's action exemplifies that it is pursuing​ ________. A. selfish interests B. economic interests C. government interests D. environmental interests E. social interests

E. social interests

When a domestic firm seeks opportunities in foreign markets, the firm's motive is best described as ________. A. tactical B. operational C. defensive D. reactive E. strategic

E. strategic

There have been four phases of globalization since the 1800s. The most current phase is characterized by ________. A. the rise in manufacturing B. increased steel production C. the increase in multinational enterprises D. a focus on industrializing E. the growth of cross-border trade

E. the growth of cross-border trade

As per the Hofstede studies, societies that score low on ________ have managers who are entrepreneurial and take risks. A. individualism B. collectivism C. masculinity D. power distance E. uncertainty avoidance

E. uncertainty avoidance

A company with ________ or fewer employees is defined as an SME. A. 500 B. 2,500 C. 1,000 D. 2,000 E. 1,500

A. 500

What is a proactive approach to ethical behavior in which firms seek not only to maximize​ profits, but also to benefit society and the​ environment? A. Corporate social responsibility B. Superior standards C. International ethics D. Sustainability E. Engaging in philanthropy

A. Corporate social responsibility

Which cause of globalization best explains why some emerging markets have increased their standards of living and become competitive producers and exporters of computers and software? A. Economic development and industrialization B. A global decrease in barriers to trade C. The implementation of free markets D. Financial markets integrating on a global scale E. Technological advances

A. Economic development and industrialization

________ refers to the procurement of products or services from independent suppliers or​ company-owned subsidiaries located abroad for consumption in the home country or a third country. A. Global sourcing B. Outsourcing C. Privatization D. A developing economy E. A new global challenger

A. Global sourcing

________ refers to the gradual integration and growing interdependence of national economies. A. Globalization of markets B. A born global firm C. International investment D. Exporting E. Internationalization

A. Globalization of markets

According to the​ five-step framework for ethical decision​ making, which question is most relevant when examining the​ facts? A. Have all the groups affected been​ consulted? B. What can the company do to increase market share and maximize​ profits? C. Will any personnel be​ harmed? D. Is an ethical dilemma​ present? E. What should have been done​ differently?

A. Have all the groups affected been​ consulted?

Based on her studies of international business, Jillian Sanchez decides to buy paper for her office supply store from wood grown in sustainable forests in Canada, even though the sustainable paper costs more than other paper. Considering the reasons to study international business, which of the following best explains Jillian's decision? A. Implementing corporate citizenship efforts B. Contributing to national economic well-being C. Facilitating the global economy and interconnectedness D. Creating a competitive advantage for her business E. Establishing a competitive advantage for herself

A. Implementing corporate citizenship efforts

A​ company's plan for corporate social responsibility​ (CSR) is to rely solely on local suppliers for its operations. What effect will this most likely​ have? A. Increase the​ company's positive economic impact B. Eliminate ethical dilemmas C. Hasten cultural change D. Add to the​ company's negative social impact E. Reduce corruption in the company

A. Increase the​ company's positive economic impact

You work for a firm that is analyzing the potential of developing economies. You have gathered accurate information on​ per-capita spending​ income, but households seem to have far more purchasing power than your figures indicate. Which of the following demonstrates the likely reason for this​ issue? A. Individual households have multiple wage earners. B. Most companies are family conglomerates with highly diversified holdings. C. Households in emerging markets receive funds from governments. D. Purchasing power parity​ (PPP) has not been calculated. E. Governments tend to underreport income to qualify for loans.

A. Individual households have multiple wage earners.

Which term refers to the trend of corporations to methodically expand their worldwide business activities? A. Internationalization B. Cross-cultural activity C. Global sourcing D. Importing E. Globalization of markets

A. Internationalization

What is the LEAST likely motive for international expansion? A. Learning about a new culture B. Identifying innovative products and services C. Gaining flexibility in product sourcing D. Developing economies of scale in production and R&D E. Seeking growth opportunities through market diversification

A. Learning about a new culture

Which element of social structure refers to a person's social class and is dependent upon occupation and income? A. Social stratification B. Reference group C. Social mobility D. Individualism E. Family background

A. Social stratification

What is the eclectic​ paradigm? A. An explanation of the way companies acquire and keep value chain activities within the firm B. A framework that explains the extent of value chain operations that firms should own overseas C. A proactive economic development plan set forth by a government to build a particular industry D. The theory that firms must control resources that are not readily available to competitors E. The theory that internationalization occurs incrementally over time

B. A framework that explains the extent of value chain operations that firms should own overseas

Which of the following is the final step in the framework for making ethical​ decisions? A. Executing a course of action B. Assessing the results C. Investigating the facts D. Acknowledging the problem E. Developing alternatives

B. Assessing the results

Which of the following is the result of good corporate​ governance? A. Experiencing more government intervention B. Attracting committed employees C. Building an unfavorable brand image D. Facing increased regulatory scrutiny E. Having a lower growth rate

B. Attracting committed employees

In​ 2008, the global electronics giant Siemens agreed to pay over a billion euros in fines to settle charges for which of the following ethical​ missteps? A. Fraud B. Bribery C. Embezzlement D. Corruption E. Money laundering

B. Bribery

What is the most notable form of corruption in international​ business? A. Fraud B. Bribery C. Theft D. Money laundering E. Blackmail

B. Bribery

Which term describes family conglomerates in South​ Korea? A. Holding companies B. Chaebols C. Business houses D. Sabanci E. Grupos

B. Chaebols

Your company is entering a market that has several small clusters of​ well-established companies. Which of the following is true of an industrial​ cluster? A. Companies in industrial clusters compete with one other for resources. B. Companies in industrial clusters have advantages in information and knowledge exchange. C. Industrial clusters increase costs in the area where they exist. D. Companies in industrial clusters are seen negatively by consumers. E. Industrial clusters exist​ temporarily, making it difficult to obtain advantages from them.

B. Companies in industrial clusters have advantages in information and knowledge exchange.

Which of the following best describes culture? A. Culture is either right or wrong. B. Culture is relative. C. People are born with a shared set of values and attitudes. D. Most cultures have the same standards for acceptable and unacceptable behavior. E. Culture is about individuals, not groups.

B. Culture is relative.

How did Muhammad Yunus help address poverty in​ Bangladesh? A. He sold Sunsilk and Pantene shampoo for 2 cents per​ mini-sachet in Bangladesh. B. He founded the Grameen Bank that has provided micro loans to millions of people. C. He established a grocery store chain that sells affordable food for the local population. D. He sold health insurance for less than 20 cents per person per month to millions of customers. E. He built a cell phone infrastructure that provides telephone coverage to the people of Bangladesh.

B. He founded the Grameen Bank that has provided micro loans to millions of people.

Nigeria's telecom infrastructure has increased telephone usage to over 30 million cellular subscribers. What is the most likely benefit Nigeria will realize from adding telephones? A. Less fulfillment of social responsibilities B. Improved living standards C. Increased tourism D. A slowdown in productivity and commerce E. Decreased access to education and healthcare services

B. Improved living standards

________ involves the allocation of assets to another country or the attainment of assets in that particular country. A. Globalization of markets B. International investment C. Exporting D. Importing E. Global sourcing

B. International investment

In​ Argentina, there is an inconsistency in the way that copyrights on​ music, books, and videos are protected under the law. This example shows that​ ________. A. a lack of transparency has resulted in extensive government intervention B. Internet piracy laws are lax C. bureaucratic practices show favor to domestic firms D. a lack of infrastructure slows capital projects E. intellectual property rights are respected

B. Internet piracy laws are lax

What technology has had the greatest effect in developing economies? A. Social media B. Mobile phones C. Email D. Computer-assisted design of products E. The Internet

B. Mobile phones

Which of the following is a contemporary perspective that aids in explaining the emergence of a​ country's competitive​ advantage? A. Public competitiveness policy B. National industrial policy C. Comparative advantage of industries D. Absolute advantage principles E. Mercantilism

B. National industrial policy

What type of group that participates in international business is most likely to work in fields such as education and health care? A. Small enterprises B. Nongovernmental organizations C. Born global firms D. Multinational enterprises E. Medium-sized enterprises

B. Nongovernmental organizations

Which of the following is NOT a firm-level consequence of market globalization? A. Greater emphasis on proactive internationalization B. Offshoring and the loss of jobs C. Internationalization of the value chain D. New risks from foreign competition E. Countless new opportunities for business

B. Offshoring and the loss of jobs

Which of the following is a key characteristic of a low-context culture? A. Preferring an indirect communication style B. Relying on verbal explanations C. Emphasizing mutual respect D. Using communication to promote harmonious relationships E. Emphasizing nonverbal messages

B. Relying on verbal explanations

Even though the United States is the number one market for MINI, the company is also trying to increase its popularity and sales in other markets such as France, the United Kingdom, and Italy. What is MINI's motive to internationalize? A. Developing economies of scale in production, marketing, and R&D B. Seeking opportunities for growth through market diversification C. Developing new ideas about products, services, and business methods D. Providing service to key customers who have relocated abroad E. Gaining additional flexibility in product sourcing

B. Seeking opportunities for growth through market diversification

Why do service firms face a potential for communication problems? A. Most service firms have employees who speak the language of the country. B. Service firms interact more with customers. C. Managers have to deal with employees who do not get along. D. Managers cannot fire employees because of lifetime employment policies. E. Most international customers want similar products and services.

B. Service firms interact more with customers.

A(n) ________ is an expression whose symbolic meaning is different from its actual or literal meaning. A. nonverbal communication B. idiom C. communication blunder D. monochronic orientation E. translation

B. idiom

According to the eclectic​ paradigm, a factor in deciding whether a firm will internationalize via FDI is the​ _________. A. legal system in the foreign market B. presence of​ location-specific advantages C. political risk present in the foreign market D. presence of healthcare facilities and personnel in the overseas market E. level of infrastructure in the foreign market

B. presence of​ location-specific advantages

In South Carolina, Jackson Mills, a longstanding textile plant, shut down and thousands of workers lost their jobs. Jackson Mills learned that it could source textiles of equal quality at a lower price from suppliers in Asia. This is an example of ________. A. relocating to attract global customers B. relocating value-adding activities to achieve cost advantages C. accessing customers abroad D. conducting cross-border transactions E. establishing a factory abroad

B. relocating value-adding activities to achieve cost advantages

Outsourcing occurs when companies​ ________. A. procure products or services from suppliers located abroad B. use independent suppliers to complete​ value-chain activities C. target the​ fast-growing middle class of emerging markets D. transfer​ state-owned holdings to private concerns E. develop from emerging markets into global competitors

B. use independent suppliers to complete​ value-chain activities

What is the second stage of the internationalization process​ model? A. Active involvement B. ​Pre-export C. Committed involvement D. Domestic focus E. Experimental involvement

B. ​Pre-export

According to the​ video, which country is the largest emerging​ market? A. Turkey B. India C. China D. Brazil E. Russia

C. China

Coca-Cola demonstrates social responsibility by doing which of the​ following? A. Doing the legal minimum for water conservation B. Purchasing water rights from local governments C. Developing a global plan to protect water resources D. Taking local communities to court over water rights E. Keeping its water conservation plans confidential

C. Developing a global plan to protect water resources

________ initiate international business activities by envisioning, crafting, and creating goods and services for global buyers. A. Retailers B. Government agencies C. Focal firms D. Importers E. Distribution channel intermediaries

C. Focal firms

​________ are small payments made to​ low-level government officials to perform routine duties more efficiently. A. Falsified contracts B. Counterfeit items C. Grease payments D. Blackmail payments E. Extortions

C. Grease payments

A U.S. mining operation opens a mine in Canada. The owner knows that it is easier and less expensive to acquire mining equipment in the Klondike, an area of Canada, than elsewhere. The owner of the mine goes to the Klondike and meets locals who offer to partner with him. Why is this miner seeking international business, and what type of risk is he taking? A. To develop economics of scale in marketing; country risk B. To confront international competitors more directly; cultural risk C. To gain access to less costly factors of production; commercial risk D. To better serve customers that have relocated; currency risk E. To invest in a potentially rewarding relationship with a foreign partner; currency risk

C. To gain access to less costly factors of production; commercial risk

Acculturation refers to the process of ________. A. learning the rules and behaviors of the society in which one grew up B. promoting one's cultural heritage C. adapting to a culture other than one's original culture D. utilizing the natural flexibility of adults E. learning to conform to the rules of one's given society

C. adapting to a culture other than one's original culture

When Nissan opened its first factory in the United Kingdom, many Japanese auto parts suppliers followed, establishing their own operations there. This is an example of ________. A. using one marketing strategy for all markets B. accessing capital, technology, managerial talent, and labor at lower costs C. better serving clients that have moved into foreign markets D. developing economies of scale E. finding innovative strategies to develop new products

C. better serving clients that have moved into foreign markets

The​ ________approach to corporate governance asserts that the best action stresses respect and compassion for all people and improves the quality of life for all people. A. virtue B. fairness C. common good D. rights E. utilitarian

C. common good

A ________ refers to a tradition or institution that is associated with a particular society. A. cultural misunderstanding B. cross-cultural risk C. cultural metaphor D. low-context culture E. high-context culture

C. cultural metaphor

The main reason that firms internalize​ value-chain activities is to​ ________. A. access raw materials more​ cost-effectively B. enter into strategic alliances with overseas partners C. gain and sustain competitive advantage D. enter into joint ventures with foreign companies E. develop a network of relationships in a foreign country

C. gain and sustain competitive advantage

Globalization of services can be seen in the international expansion of ________. A. capital B. the bond market C. the banking, hospitality, and retailing industries D. standardized parts and components E. offshore manufacturing

C. the banking, hospitality, and retailing industries

Critical incident analysis involves all of the following steps EXCEPT ________. A. considering the culture when assessing problems B. identifying situations where cultural awareness is essential to interaction C. using an ethnocentric orientation in judging behavior D. gathering information from local citizens E. interpreting the behavior of others based on the cultural context

C. using an ethnocentric orientation in judging behavior

Custom Cars, a painting and auto modification company, has expanded operations into South America. The first problem Custom Cars encountered was determining the applicable laws in the new country. Next, Custom Cars was informed by the local mayor that the firm will be shut down if it does not prepay its taxes in cash. Which risk in international business is Custom Cars encountering? A. Currency risk B. Global risk C. Cross-cultural risk D. Country risk E. Commercial risk

D. Country risk

When shopping for cars, many U.S. consumers are impulse buyers, whereas consumers in other countries are often more deliberate and prepared. Based on this information, what type of risk does MINI face in different markets? A. Political risk B. Country risk C. Financial risk D. Cross-cultural risk E. Currency risk

D. Cross-cultural risk

________ is a situation or event in which a cultural misunderstanding puts some human value at stake. A. Socialization B. Culture C. Country risk D. Cross-cultural risk E. Acculturation

D. Cross-cultural risk

Which of the following comprise the largest group of countries and include Bangladesh and​ Zaire? A. Centrally planned economies B. Transition economies C. Emerging economies D. Developing economies E. Advanced economies

D. Developing economies

________ include countries that have attained significant​ modernization, industrialization, and rapid economic growth since the 1980s. A. Developing markets B. Centrally planned economies C. Advanced economies D. Emerging economies E. Developed economies

D. Emerging economies

________ refers to the steady assimilation and increasing interdependence of economies. A. Industrialization B. Foreign direct investment C. Global sourcing D. Globalization of markets E. Cross-border trade of commodities

D. Globalization of markets

Which statement about emerging markets is​ true? A. Emerging markets receive less than​ one-third of world FDI. B. Emerging markets now account for less than half of world GDP. C. Emerging markets represent less than​ one-third of world exports. D. Inexpensive labor and government support have spurred the growth of emerging markets. E. It is estimated that the very little growth in world GDP will come from emerging markets.

D. Inexpensive labor and government support have spurred the growth of emerging markets.

________refers to the performance of trade and investment activities by firms across national borders. A. Exporting B. Global sourcing C. International investment D. International business E. Foreign direct investment

D. International business

Which of these represents a competitive strength for​ Infosys? A. A code of ethics B. Its reputation in philanthropic efforts C. Its labor force of​ 120,000 employees D. Its global delivery model E. The Indian government

D. Its global delivery model

What assertion is made by those who criticize MNEs operating in​ Africa? A. African governments have changed how they manage their national economies. B. MNEs have triggered the installation of cellular networks in Africa. C. Policy reforms in many African countries stress economic freedom. D. MNEs exploit resources and pollute the environment. E. Some areas of Africa obtain too much direct investment from MNEs.

D. MNEs exploit resources and pollute the environment.

Which of the following best explains the slow nature of​ internationalization? A. ​Managers' desire to pursue outsourcing B. ​Managers' extensive experience with​ cross-border transactions C. ​Managers' familiarity with the culture of foreign markets D. Managers have little or no information about foreign markets. E. Decreased levels of risk and control associated with foreign direct investment

D. Managers have little or no information about foreign markets.

Which of the following shows how a polychronic perception of time affects the work environment? A. Business decisions are made quickly. B. Office space is shared to save time when employees collaborate. C. Employees are expected to be prompt to business meetings. D. Plans are changed often. E. Managers focus on quarterly returns.

D. Plans are changed often.

Which challenge of emerging markets is associated with corruption and weak legal frameworks that discourage business​ investments? A. Lack of qualified local partners B. Lack of physical infrastructure C. Dominance of family conglomerates D. Political instability E. Excessive bureaucracy

D. Political instability

Which of the following is a risk associated with emerging​ markets? A. Political stability that is associated with transparency B. Tax incentives that attract foreign investment C. National laws that protect intellectual property D. Political instability that is associated with weak legal frameworks E. Administrative rules that facilitate business activities

D. Political instability that is associated with weak legal frameworks

What should governments do to reduce the harm of globalization while also acquiring the benefits associated with globalization? A. Nationalize foreign companies. B. Make private property more accessible. C. Support exchange through political processes. D. Regulate financial institutions appropriately. E. Make it more difficult to enter new markets.

D. Regulate financial institutions appropriately.

Which of the following can be classified as a downstream value-chain activity for Save the Children? A. Research B. Development C. Production of a corporate Web page D. Service to clients onsite E. Procurement at headquarters

D. Service to clients onsite

​________ is defined as meeting​ humanity's needs without harming future generations. A. Impact B. Corporate social responsibility C. Ethics D. Sustainability E. Corporate governance

D. Sustainability

Which term refers to official propositions prepared by a purchaser to procure specific goods or​ services? A. Privatization B. Purchasing power C. Offshoring D. Tenders E. Outsourcing

D. Tenders

What is one reason companies use social media such as Facebook and Twitter? A. To accelerate social movements like the Arab Spring B. To restrict access to information C. To develop infrastructure D. To communicate with connected individuals in new markets E. To lessen the impact of globalization

D. To communicate with connected individuals in new markets

In emerging​ markets, why do successful firms develop close community​ relationships? A. To collaborate with family conglomerates B. To target political systems in developing markets C. To locate quality and accessible business partners D. To tailor goods to specific developing market necessities E. To challenge developing market rivals

D. To tailor goods to specific developing market necessities

Which of the following terms represents the arrangement of activities conducted by a company in the course of creating, manufacturing, promoting, and servicing a product? A. Contagion B. Globalization of markets C. Internationalization D. Value chain E. Global sourcing

D. Value chain

What is one of the most significant expressions of a culture that provides cultural insight? A. Creativity B. Time perception C. Manners D. Verbal language E. Morality

D. Verbal language

A document that describes the values and expectations that aid in employee decision making within a company without providing specific rules is called​ ________. A. a moral contract B. a social responsibility contract C. a code of conduct D. a code of ethics E. corporate governance

D. a code of ethics

Globalization can threaten national sovereignty by interfering with a country's ________. A. religious beliefs B. ability to enforce laws C. political system D. ability to control its own economy E. values

D. ability to control its own economy

A large and highly diversified company that is privately owned is known as​ a(n) ________. A. global sourcing company B. new global challenger C. outsourcing company D. family conglomerate E. emerging competitor

D. family conglomerate

Globalization has created rivalry between U.S. firms and foreign competitors, which has resulted in ________. A. price increases in the United States B. more money in circulation in the United States C. increased unemployment in the United States D. foreign car makers selling more automobiles in the United States E. the quality of goods declining in the United States

D. foreign car makers selling more automobiles in the United States

When a company transfers its value-chain activities by launching a subsidiary in a foreign country, it is called ________. A. contagion B. relaunching C. reshoring D. offshoring E. exporting

D. offshoring

What is one reason why regional economic integration blocs have developed? A. Industrialization B. Market liberalization C. Modernization D. Free-market reforms E. Decreased trade barriers

E. Decreased trade barriers

What practice is NOT a good example of​ sustainability? A. Minimizing waste B. Using​ cost-effective solar energy C. Recycling used water D. Rotating crops E. Deregulating fossil fuel usage

E. Deregulating fossil fuel usage

How can companies avoid cross-cultural misunderstandings? A. Use humor. B. Communicate in the local language. C. Use nonverbal communication. D. Speak clearly and slowly. E. Develop a sensitivity for different cultures.

E. Develop a sensitivity for different cultures.

What is the first stage in the internationalization process of a​ firm, where the firm acquires businesses at​ home? A. Experimental involvement B. Committed involvement C. ​Pre-export D. Active involvement E. Domestic focus

E. Domestic focus

Which of the following is the MOST likely cause for globalization? A. Developing economies lack competitive producers. B. The World Trade Organization has increased trade barriers. C. Trade barriers have been added worldwide. D. Countries have avoided adding free-market reforms. E. Emerging markets are now value-adding producers.

E. Emerging markets are now value-adding producers.

Carol wants to expand her recycled toy business abroad, because demand for recycled products is much higher in Europe and Asia than in the United States. She locates three suppliers in Europe and three in Asia, and creates one factory in Germany and one in Singapore. She seeks ways to advance her machinery to meet the needs of her production as well as her eco-friendly business model. In what type of international business has Carol engaged? A. Outsourcing B. Global sourcing C. Exporting D. Importing E. Foreign direct investment

E. Foreign direct investment

When MINI started manufacturing cars in Austria, in addition to its only other facility in Oxford, England, it represented which of the following? A. A born global firm B. Global sourcing C. Cross-cultural risk D. International portfolio investment E. Foreign direct investment

E. Foreign direct investment

Both Sony and Toshiba are Japanese companies that produce computers and video games. Which of the following could be a reason that these firms have increased their competitive​ advantage? A. Factors such as​ capital, technology, and entrepreneurship B. ​Home-market demand for specific products and services C. Industrial clusters D. Resources such as labor and natural resources E. Intense rivalry

E. Intense rivalry

In which of the following industries have​ Brazil's manufacturing firms enjoyed considerable success producing for foreign​ clients? A. Diamonds and mining B. Textile machinery C. Cars and consumer electronics D. Personal computers E. Iron ore and processed food

E. Iron ore and processed food

Sierra's religion is based on a holy book called the Qur'an. She participates in daily ritual prayers, fasts during certain times of the year, and gives to charities. Her religion prohibits the consumption of alcohol or wearing revealing clothing. What religion does Sierra practice? A. Hinduism B. Buddhism C. Confucianism D. Judaism E. Islam

E. Islam

Many European firms have a business culture that gives workers almost equal standing to that of managers. How does this approach affect company operations? A. Cultural differences lead to the adaptation of marketing activities. B. There is lifetime employment. C. Merit is not the main basis for promoting employees. D. Goals and assumptions vary cross-culturally. E. It makes it more difficult to lay off workers.

E. It makes it more difficult to lay off workers.

What is the effect of globalization on national culture? A. The prices of new products decline. B. Local values change to reflect global concepts. C. Local merchants experience a loss of business. D. Global customers buy products over the Internet. E. Local consumers become familiar with global brands and previously unknown products.

E. Local consumers become familiar with global brands and previously unknown products.

Your company is initiating a business relationship with a country that has a polychronic perception of time and an informal culture. Which option indicates what you would expect from this company? A. Meetings would be flexible, and decisions would relate to profits. B. Meetings would be flexible, and the executive sponsor would sit at the head of the conference table. C. Meetings would be prompt, and the conference room would have a round conference table. D. Meetings would be prompt, and the executive sponsor would sit at the head of the conference table. E. Meetings would be flexible, and the conference room would have a round conference table.

E. Meetings would be flexible, and the conference room would have a round conference table.

Which of the following is used by managers to analyze data to estimate market potential in a certain​ location? A. Intellectual property protection B. Size of the lower class society C. Political stability D. Physical infrastructure E. Purchasing power parity

E. Purchasing power parity

Which phase of globalization is composed of the growth and supremacy of multinational enterprises in the industrial and agricultural industries? A. Fifth phase B. Fourth phase C. First phase D. Third phase E. Second phase

E. Second phase

________ is the tendency to view other cultures through the lens of one's own culture. A. Tolerance for ambiguity B. Adaptability C. Critical incident analysis D. Perceptiveness E. Self-reference criterion

E. Self-reference criterion

Russell Steel is a contracting company with a focus on steel buildings. The company wants to transition from commercial work into more​ international, government-oriented projects. Which of the following is the best approach for Russell Steel to consider when pursuing projects for​ fast-growing international​ governments? A. Family conglomerates B. Outsourcing C. Microloans D. New global challengers E. Tenders

E. Tenders

With the development of personal computers and the Internet, the ability of organizations like Save the Children to operate successfully around the globe represents which phase of globalization? A. The introduction phase B. The third phase C. The first phase D. The second phase E. The fourth phase

E. The fourth phase

What is meant by the term corporate governance​? A. Protecting and nurturing a​ company's corporate image B. The operation of a business in a way that meets or exceeds the​ ethical, legal, and commercial expectations of its stakeholders C. Meeting​ humanity's needs today without harming future generations D. Moral principles about right and wrong E. The system of procedures and processes by which corporations are​ managed, directed, and controlled

E. The system of procedures and processes by which corporations are​ managed, directed, and controlled

Why did Starbucks begin selling coffee only from growers certified by the Rain Forest Alliance, a nonprofit organization that promotes the interests of coffee growers and the environment? A. To create jobs B. To earn greater profits C. To hone their managerial skills in international business D. To sustain a competitive advantage in the global economy E. To demonstrate social responsibility and good environmental practices

E. To demonstrate social responsibility and good environmental practices

What is one of the most typical reason for locating value-chain activities abroad? A. To reduce globalization B. To be socially responsible C. To raise the standard of living in developing nations D. To develop new markets E. To reduce the costs of R&D and production

E. To reduce the costs of R&D and production

Which cultural dimension relates to personal motivations and behaviors? A. Perceptions of time B. Education C. Symbolic productions D. Manners and customs E. Values

E. Values

Which of the following is NOT an economic integration bloc? A. Mercosur B. North American Free Trade Agreement (NAFTA) C. European Union (EU) D. Asia Pacific Economic Cooperation zone (APEC) E. World Trade Organization (WTO)

E. World Trade Organization (WTO)

In the framework for making ethical​ decisions, ________ involves figuring out the extent of a​ situation, and then confirming the most valuable information. A. determining the problem B. measuring results C. producing alternatives D. applying a course of action E. analyzing the facts

E. analyzing the facts

Nations that score well on the Corruption Perceptions Index tend to​ ________. A. use bribes as part of a business transaction B. attract very little investment C. deceive people to gain assets D. provide unclear financial information E. attract global investors

E. attract global investors

The most common form of corruption that occurs in international business is​ ________. A. fraud B. embezzlement C. extortion D. money laundering E. bribery

E. bribery

According to the​ video, ________ typically​ reside(s) in​ land, labor, and natural resources. A. free trade B. factor proportions C. absolute advantage D. monopolistic advantage E. comparative advantage

E. comparative advantage

According to the​ video, firm-specific competencies that are difficult for rivals to imitate are part of the​ firm's________. A. factor proportions B. monopolistic advantage C. comparative advantage D. absolute advantage E. competitive advantage

E. competitive advantage

The values, beliefs, and customs of a group of people are known as ________. A. socialization B. acculturation C. monochromic orientation D. society E. culture

E. culture

Companies help address poverty around the world in many ways. If a foreign firm in an emerging market modernizes local roads and bridges and creates jobs for workers in the​ community, the firm is​ ________. A. partnering with family conglomerates B. engaging in microfinancing activities C. engaging in global sourcing D. customizing products to meet local needs E. encouraging economic growth

E. encouraging economic growth

Considering our own culture as the standard for judging other cultures is a(n) ________. A. geocentric orientation B. long-term orientation C. polycentric orientation D. short-term orientation E. ethnocentric orientation

E. ethnocentric orientation

A macro trend of intense economic interconnectedness among the nations of the world is called ________. A. outsourcing B. collaboration C. tourism D. exporting E. globalization

E. globalization

Emerging markets have become target markets because​ ________. A. in some product​ categories, there is little demand in emerging markets B. the majority of individuals in emerging economies live in poverty C. the shrinking middle class in emerging markets implies a lower demand for consumer products D. the largest emerging markets have reduced their share of world imports in the last few years E. governments in emerging economies attract sales of​ infrastructure-related products

E. governments in emerging economies attract sales of​ infrastructure-related products

In ________, people are primarily concerned with their own self-interest, and ties among individuals are fairly loose. A. collective cultures B. high-context cultures C. low-context cultures D. masculine societies E. individualistic societies

E. individualistic societies

Which of the following observations would stimulate investment in an emerging​ market? A. Political instability is often found in emerging markets. B. Government intervention in the business environment is common in emerging markets. C. Foreign firms must deal with significant corruption in Russia. D. Weak patent laws and counterfeiting characterize the Chinese market. E. ​Africa's cell phone market has opened the door to many related industries.

E. ​Africa's cell phone market has opened the door to many related industries.

Which of the following is a motivation for international expansion? A. Being closer to supply sources B. Gaining distance from competitors C. Lowering profit margins D. Being closer to political risk to manage it E. Developing diseconomies of scale

A. Being closer to supply sources

________ represents cost alterations that indicate the amount of products that customers are able to purchase in their own​ country, using their own monetary​ system, in accordance with their standard of living. A. Purchasing power parity B. Tenders C. Offshoring D. Outsourcing E. Privatization

A. Purchasing power parity

Which of the following drivers of globalization appears to have the most impact on the ability of Save the Children to operate successfully around the globe? A. Technological advances B. Industrialization and innovation C. A global decrease in barriers to trade D. Market liberalization and implementation of free markets E. Financial markets integrating on a global scale

A. Technological advances

In some countries, which of the following is affected by status differences between employees and managers? A. Union-management relationships B. Technology usage C. Organizational structure D. Attitudes toward ambiguity E. Supplier-buyer relationships

A. Union-management relationships

In international business, ________ primarily relates to whether a firm is centralized, decentralized, bureaucratic, or entrepreneurial. A. organizational structure B. product development C. technology D. a negotiation method E. teamwork

A. organizational structure

In Africa, the majority of people live on less than $2 a day. According to the author of the text, what is one of the most effective ways to reduce African poverty? A. Fight government corruption B. Develop more business-based models of development C. Gain access to foreign capital D. Reduce the level of illiteracy E. Develop commercial infrastructure

B. Develop more business-based models of development

​________ occurs when an employee purposely mismanages or even steals money belonging to an employer. A. Extortion B. Embezzlement C. Counterfeiting D. Money laundering E. Bribery

B. Embezzlement

What is the most complex entry strategy for engaging in global​ business? A. Exporting B. Foreign direct investment C. Licensing D. Internet sales E. Franchising

B. Foreign direct investment

________ are the basis for our motivation and behavior. A. Manners B. Values C. Attitudes D. Norms E. Customs

B. Values

The most likely reason that companies engage in international business is to have​ ________. A. more popularity in the global arena than their competitors B. a competitive advantage in terms of lowering costs C. a steady source of employees from multiple markets D. a comparative advantage over other companies in terms of identifying​ low-cost suppliers E. a reduced level of competition from other global companies

B. a competitive advantage in terms of lowering costs

MINI cars were originally sold in the United States in the 1960s but were withdrawn due to ________ risk. A. currency B. commercial C. cross-cultural D. country E. political

B. commercial

________ is when a company delegates performance of a value-adding activity to a firm located abroad. A. Distribution of the product in targeted markets B. Research and product development C. Global outsourcing D. After-sales service E. Pricing, promotion, and selling

C. Global outsourcing

A(n) ________ orientation has a global mindset without regard to country boundaries and is open to diversity among cultures. A. home-country B. high-ontext C. geocentric D. polycentric E. ethnocentric

C. geocentric

According to the​ video, the leading firms from emerging markets that are fast becoming key contenders in world markets are called​ ________. A. grupos B. holding companies C. new global challengers D. chaebols E. family conglomerates

C. new global challengers

Which term refers to offering small amounts of money to government officials to hasten bureaucratic decisions and​ transactions? A. Money laundering B. Embezzlement C. Extortion D. Grease payments E. Fraudulent activities

D. Grease payments

Business owners in China tend to emphasize nonverbal communication and prefer an indirect and polite style that emphasizes mutual respect and care for others. China can be characterized as a(n) ________ culture. A. masculine B. monochronic C. individualistic D. high-context E. low-context

D. high-context

How does a foreign firm benefit from partnering with a family​ conglomerate? A. A foreign firm can form close relationships with the local government. B. A foreign firm can use standardized products. C. A foreign firm can increase the capital requirements needed for international transactions. D. A firm can seek out local lobby groups to deal with infrastructure issues. E. A foreign firm can achieve economies of scale and avoid customizing products.

A. A foreign firm can form close relationships with the local government.

A business student in Texas is considering learning a foreign language. Why might she benefit from studying a language such as Russian or Chinese? A. Both Russia and China feature fast-growing economies. B. They are simple languages to learn. C. The U.S. is avoiding doing business in Russia and China. D. Most business transactions are conducted in Russian or Chinese. E. MBA degrees are more valuable if from Russia or China.

A. Both Russia and China feature fast-growing economies.

What is the BEST rationale for taking a course in international business? A. Experience in a global firm will make a worker more competitive. B. The global economy will be more developed. C. A firm will be more competitive globally. D. International business will contribute to personal prosperity. E. Nations will become more interconnected.

A. Experience in a global firm will make a worker more competitive.

Which element in​ Porter's diamond model describes a​ nation's position in terms of​ labor, natural​ resources, wealth,​ technology, entrepreneurship, and​ know-how? A. Factor conditions B. Supporting industries C. Firm​ strategy, structure, and rivalry D. Demand conditions E. Industrial clusters

A. Factor conditions

Which of the following refers to the absence of restrictions to the movement of goods and services among​ countries? A. Free trade B. Factor proportions theory C. Comparative advantage principle D. Mercantilism E. Absolute advantage principle

A. Free trade

Which of the following is NOT a reason to study international business? A. Global markets are decreasing. B. International business provides an opportunity to support sustainability. C. Global trade is a critical engine for job creation. D. International business contributes to economic prosperity. E. International business is changing the world.

A. Global markets are decreasing.

Which of the following statements regarding information technology is accurate? A. Information technology has created a competitive advantage for firms by allowing them more opportunities to outdo their competitors. B. Technology enables companies to interact with their partners globally in a timelier but less cost-effective manner. C. Information technology benefits only larger firms due to the design and production of customized products being targeted to more narrow market niches. D. Given the added investment costs, a result of advances in information technology has been a decrease in early internationalization by small- and medium-sized enterprises. E. The cost of computer processing has increased by more than 30% in the past 30 years.

A. Information technology has created a competitive advantage for firms by allowing them more opportunities to outdo their competitors.

Which type of investment is the passive ownership of foreign securities for the purpose of generating financial returns? A. International portfolio investment B. Global sourcing C. International investment D. Foreign direct investment E. Globalization

A. International portfolio investment

In what do companies engage when they systematically increase the international dimension of their business activities? A. Internationalization B. International investment C. Foreign direct investment D. Strategic alliances E. International portfolio investment

A. Internationalization

Which statement about the religion of Islam is most likely correct? A. Islam is based on the Qur'an, the religion's holy book. B. Islam is based on the teachings of the prophet Buddha. C. Sharia, Islamic law, is more influential in Turkey than in Saudi Arabia. D. All Muslims belong to the Sunni denomination. E. Islam promotes the ideas of karma and nirvana and upholds caste systems

A. Islam is based on the Qur'an, the religion's holy book.

Which term refers to acquiring certain​ value-chain activities, including the production of finished​ products, from independent​ suppliers? A. Outsourcing B. Conglomeration C. Microfinancing D. Purchasing power E. Privatization

A. Outsourcing

Town​ Boutique, a local clothing​ store, recently switched suppliers due to rumors that its supplier in Bangladesh was employing underage workers in its factories. By no longer doing business with the supplier in​ Bangladesh, Town Boutique was upholding which CSR​ value? A. Reducing child labor B. Engaging in philanthropic efforts C. Preventing corruption D. Avoiding​ age-based discrimination E. Establishing child labor laws

A. Reducing child labor

You work for an electronics firm that wishes to do business in India in the next few years by following the internationalization process model. Why is this model a viable option for getting into a global​ market? A. Starting slow with smaller operations will allow the company to tread cautiously while monitoring progress in the new markets. B. Starting with offshoring will give the company time to plan the move of employees overseas. C. Starting with small operations and then quickly continuing with large operations within a short amount of time will ensure that the company has enough opportunity for expansion. D. Starting with major operations will allow the company to hire and train many employees. E. Starting with large operations first and then continuing with smaller ones will give the company enough experience in the market.

A. Starting slow with smaller operations will allow the company to tread cautiously while monitoring progress in the new markets.

A firm has an issue with its overseas plant employing children as​ laborers, and the​ firm's top manager is using the​ five-step ethical framework to address the problem. The firm is considering the idea of educating the children several days each week in an​ on-site classroom. Based on the​ five-step ethical​ framework, which statement illustrates the manager implementing a course of​ action? A. The manager follows up on the​ firm's education initiative. B. The manager interviews the parents of the children. C. The manager considers offering incentives to the children. D. The manager determines the cost of an educational program. E. The manager contacts a competitor that also employs children.

A. The manager follows up on the​ firm's education initiative.

Technology can both enhance and hinder cultural awareness. Analyze each scenario and select the option in which technology most successfully enhances cross-cultural communication. A. Translation software automatically converts email from Chinese to English. B. McDonald's extends its chain into Europe, Asia, South America, and Africa. C. Language classes in Spanish are offered in a non-native-speaking country. D. A business promotes international travel to establish global business. E. Skype users broadcast video calls to business colleagues in distant countries.

A. Translation software automatically converts email from Chinese to English.

One of the most noteworthy influences on globalization has been ________. A. advances in technology, including communications, data, and engineering B. a global decrease in barriers to trade C. financial markets integrating on a global scale D. market liberalization and the implementation of free markets E. industrial growth, financial expansion, and innovation

A. advances in technology, including communications, data, and engineering

Technology and instantaneous communication have helped Save the Children with all the following EXCEPT ________. A. eliminating the need to travel for top managers B. keeping beneficiaries informed with two-way communication C. assessing how programs are impacting children D. staying connected with organizational stakeholders E. getting feedback from the field about real time needs

A. eliminating the need to travel for top managers

Vix is a leader in​ fare-collection equipment for​ Australia's transportation​ industry, having already installed a​ new, pioneering system in subways and buses in major cities worldwide. In this​ example, Vix has gained a competitive advantage by​ ________. A. encouraging innovation B. employing gifted managers and scientists C. hiring​ lower-paid engineers and scientists D. increasing productivity E. relocating​ R&D activities abroad

A. encouraging innovation

Joseph, a midlevel manager at ABC Manufacturing, is negotiating supplier agreements with a Chinese firm in Beijing. This is Joseph's first experience with a Chinese supplier. Joseph insists that all contract agreements be explicitly detailed, which is exactly the way he deals with American suppliers. Joseph believes this strategy is the best way to conduct business and is very comfortable following his own approach. Joseph can be described as adopting a(n) ________ orientation. A. ethnocentric B. monochronic C. polychronic D. geocentric E. polycentric

A. ethnocentric

Toyota manufactures new models of cars that sell for​ $7,000 in​ low-income nations. For the Indian​ market, Toyota constructed a factory to achieve a 10 percent share of the Indian car market. These two examples illustrate that​ ________. A. global firms must create innovative strategies to find success in emerging markets B. Toyota standardizes its cars for advanced and emerging markets C. family conglomerates play a huge role in emerging markets D. family conglomerates often have political influence E. Toyota lacked sufficient information about the Indian market

A. global firms must create innovative strategies to find success in emerging markets

The factor proportions theory rests on the premise that​ ________. A. products differ in amount of​ labor, natural​ resources, and capital required for production B. international trade is based on an evolutionary process C. national prosperity results from a positive balance of trade D. products are characterized by strong branding and differentiated features E. two countries benefit from trade if one is more efficient at producing a product that the other needs

A. products differ in amount of​ labor, natural​ resources, and capital required for production

Contagion is ________. A. the tendency of a financial crisis in one country to spread quickly to other countries B. often criticized for generating low wages and exploiting workers C. creating countless new jobs and opportunities around the world D. the ability of a nation to govern its own affairs in global relation E. a major cause of pollution, habitat destruction, and deterioration of the ozone layer

A. the tendency of a financial crisis in one country to spread quickly to other countries

Which of the following is NOT a limitation of the absolute and comparative advantage​ theories? A. ​Large-scale production provides economies of scale. B. Government restrictions hinder international trade. C. Many​ services, such as​ banking, cannot be exported in the usual manner. D. Traded products are no longer just commodities. E. Costly international shipping makes imports expensive.

A. ​Large-scale production provides economies of scale.

According to the​ video, which of the following is a key characteristic of emerging​ markets? A. An advanced commercial infrastructure B. A growing middle class with rising economic aspirations C. Economic prosperity in both urban and rural areas D. A​ well-developed commercial legal system E. Centrally planned economies

B. A growing middle class with rising economic aspirations

________ is the sequence of value-adding activities performed to develop, produce, market, and service a product. A. A production line B. A value chain C. Cross-border trade D. Globalization of services E. Market reform

B. A value chain

How can monopolistic advantage theory explain how certain companies can succeed internationally without much​ competition? A. Companies succeed overseas if they have the support of their home​ government, which provides them with resources. B. Companies succeed overseas if they have developed resources and capabilities that no other company has. C. Companies succeed overseas if they market their products and services to diverse markets of potential overseas customers. D. Companies succeed overseas if workers quickly learn the culture and language differences that could impact acceptance of their products. E. Companies succeed overseas if they develop alliances with foreign governments that can help their business in the country.

B. Companies succeed overseas if they have developed resources and capabilities that no other company has.

Lifestyles, customs, and religion have a potential for causing which type of international business risk? A. Profit B. Cross-cultural C. Country D. Commercial E. Currency

B. Cross-cultural

Which of the following terms describes moral principles and values that govern the actions of​ individuals, corporations, and governing​ systems, with respect to what is right and what is​ wrong? A. Relativism B. Ethics C. Sustainability D. Corporate social responsibility E. Corporate governance

B. Ethics

SkiJet USA wants to take its production operations overseas. Which of the following is the LEAST likely reason for SkiJet USA to collaborate with overseas​ companies? A. Foreign partners would give SkiJet USA additional access to resources such as​ knowledge, space, and materials. B. Foreign partners would give SkiJet USA complete control over production and marketing. C. Foreign partners would give SkiJet USA a chance to enter a country that restricts foreign firms from having full ownership of a business. D. Foreign partners would give SkiJet USA capabilities unavailable within its own organization. E. Foreign partners would give SkiJet USA a network of relationships with​ suppliers, manufacturers, and banks.

B. Foreign partners would give SkiJet USA complete control over production and marketing.

________ have opened up one-third of the world to increased international trade, including many Asian economies such as India and South Korea. A. Cross-border transactions B. Free market reforms C. Investment barriers D. International commercial banks E. Foreign currency transactions

B. Free market reforms

Ironwolf Auto is a Canadian auto company that wants to expand its product lines. To help fund the​ expansion, the company decides to purchase metal ore from Brazil to help lower resource costs. This exemplifies which of the​ following? A. Outsourcing B. Global sourcing C. Microfinancing D. Submitting tenders E. Targeting markets

B. Global sourcing

The Osaka Tea Company of Japan uses nonverbal messages during its management meetings to ensure harmony within the company. The managers exhibit a polite style to show respect and are careful not to make any remarks that could offend others. What kind of culture does this company represent? A. Individualist culture B. High-context culture C. Feminine culture D. Acculturation E. Low-context culture

B. High-context culture

Which of the following explains the method by which corporations obtain and retain​ value-chain activities, minimize the difficulties of working with external​ partners, and allow for increased control over operations​ abroad? A. Factor proportions theory B. Internalization theory C. Absolute advantage principle D. Monopolistic advantage theory E. New trade theory

B. Internalization theory

Which of the following involves engaging in activities to meet​ society's needs in the present​ time, while also being mindful of future generations and their​ needs? A. Corporate social responsibility B. Sustainability C. Relativism D. Normativism E. Ethics

B. Sustainability

What is the self-reference criterion? A. A technique to analyze awkward situations in cross-cultural encounters B. The tendency to view other cultures according to our own culture C. A global mindset for understanding a business without reference to boundaries D. The degree to which people defer gratification to achieve long-term success E. The extent to which people control their desires and impulses

B. The tendency to view other cultures according to our own culture

The New Zealand government enacted​ pro-trade policies in conjunction with the private sector. The government transformed New Zealand into an​ industrialized, competitive, and​ free-market economy. This is an example of​ ________. A. demand conditions B. a national industrial policy C. domestic rivalry D. factors such as​ capital, technology, and entrepreneurship E. an industrial cluster

B. a national industrial policy

Established in​ 2010, Instagram quickly found an international market for its​ photo- site.​ Currently, only a small fraction of​ Instagram's customers are from the United States. Instagram is an example of​ a(n) ________. A. industrial cluster B. born global firm C. international collaborative venture D. joint venture E. ​resource-rich company

B. born global firm

Advances in ________ have resulted in an expansion of the global marketplace for small- and medium-sized enterprises (SMEs). A. banking B. communications C. manufacturing D. distribution E. transportation

B. communications

One of the tasks of the World Trade Organization (WTO) is to ________. A. advocate for advances in technology B. facilitate a reduction in trade barriers C. liberalize markets D. raise capital E. integrate world financial markets

B. facilitate a reduction in trade barriers

​Germany's abundance of employees with strong engineering skills has led to the nation becoming a leader in the international engineering and design industries. This is an example of national competitiveness due to​ ________. A. investments in​ R&D activities B. factor conditions C. increased economies of scale D. productivity innovations E. industrial clusters of suppliers

B. factor conditions

Corporate social responsibility​ (CSR) is best illustrated by an organization​ ________. A. procuring products or services from suppliers located abroad B. powering a certain percentage of its operations with green energy C. selling vaccines to people in developing countries D. ignoring the working conditions of its suppliers in Latin America E. charging consumers for recycling outdated electronics

B. powering a certain percentage of its operations with green energy

The technology for television sets was invented in the United​ States, and production began in the 1940s. Sales grew until TVs became standardized. Then production shifted​ overseas, and now the United States imports its television sets. This is an example of​ ________. A. the new trade theory B. the international product​ life cycle C. mercantilism D. the factor proportions theory E. the absolute advantage principle

B. the international product​ life cycle

Which of the following best describes a transition​ economy? A. A​ post-industrial country that has a high GDP B. A​ low-income country that has limited industrialization and low growth C. A market that has evolved from being centrally planned to being more liberalized D. A​ post-industrial country that has a high​ per-capita income E. ​State-owned industries that have shifted to private entities

C. A market that has evolved from being centrally planned to being more liberalized

A U.S. firm does not send female managers to a country where women are expected to be subservient to men. Which of the following is being illustrated by the​ firm? A. Corporate social responsibility B. A rights approach to ethical standards C. A relativistic ethical perspective D. A normative ethical perspective E. A virtue approach to ethical standards

C. A relativistic ethical perspective

Heather Wilmington is the newest member of the marketing team at Office World, an office supply store chain in the United States. Heather has been hired to help the company alter its marketing campaign to better suit the needs of potential international customers. Heather suggests changing the company's current and long-time ad slogan when marketing in foreign countries, but several members of the team disagree. Which of the following would BEST strengthen the argument for changing the current ad slogan when marketing in foreign countries? A. Foreign ad slogans can often be difficult to understand for many U.S.-based customers. B. Many expressions in U.S. English are based on sports or military terms and pose problems for non-U.S. businesspeople. C. Advertising themes often lose their original meaning in translation or convey unfavorable interpretations. D. Other office supply companies have decided to change their ad slogans when marketing internationally. E. Prospective customers in the foreign countries in which Office World plans to advertise know very little about the company.

C. Advertising themes often lose their original meaning in translation or convey unfavorable interpretations.

Which of the following situations illustrates​ sustainability? A. GAP markets a line of​ children's wear even though the supplier used child labor. B. Nokia phases in toxic materials for its cell phones. C. BMW introduces electric cars with​ carbon-fiber bodies to save fuel. D. ​Coca-Cola increasingly seeks ways to use scarce water supplies. E. Unilever defunds a global handwashing campaign that aims to reduce disease in Africa.

C. BMW introduces electric cars with​ carbon-fiber bodies to save fuel.

If a firm is operating in a foreign country, what type of risk does it face from the country's political, legal, and economic environment? A. Communication risk B. Cross-cultural risk C. Country risk D. Currency risk E. Commercial risk

C. Country risk

Which of the following would be a cross-cultural risk in internationalization? A. Different international taxation B. Poor execution of strategy C. Different languages D. Different protectionism laws E. Mismanagement of the economy

C. Different languages

Data from the International Monetary Fund and the World Bank suggests that emerging markets have more future promise globally than do current industry leaders. Which of the​ following, if​ true, strengthens the implications of the​ data? A. Countries with emerging economies have significantly higher populations than do advanced economies. B. An Egyptian telecommunications firm has become an industry leader in many developing markets. C. Emerging markets have greatly increased their share of world imports. D. Pharmaceutical companies have begun relying on emerging markets for development and marketing. E. Emerging market manufacturers are able to pay lower wages than advanced market manufacturers.

C. Emerging markets have greatly increased their share of world imports.

Aggro Enterprises is attempting to enter emerging​ markets, notably in India and Indonesia. The company offers an​ easy-to-use website interface translated by experts into the local​ language, and uses a customized interface for mobile phones.​ Nevertheless, sales have been flat. Which of the following characterizes the problem with​ Aggro's strategy? A. Emerging markets already have competitive online businesses. B. Government restrictions prevent people from buying online. C. Fewer people in emerging markets have Internet access. D. Aggro has not received any local tenders to win consumer trust. E. Emerging markets are mistrustful of mobile Internet strategies.

C. Fewer people in emerging markets have Internet access.

Which of the following defines the comparative advantage​ principle? A. Each product and its manufacturing technologies go through three stages of​ evolution: introduction,​ maturity, and standardization. B. Each country should export products that use relatively abundant factors of production and import goods that intensively use relatively scarce factors of production. C. It may be beneficial for two countries to trade with each other as long as one is relatively more efficient at producing a product needed by the other. D. A country benefits by producing only those products it can produce using the fewest resources. E. National prosperity is the result of a positive balance of​ trade, achieved by maximizing exports and minimizing imports.

C. It may be beneficial for two countries to trade with each other as long as one is relatively more efficient at producing a product needed by the other.

n international business, cross-cultural risk can come from differences in language and culture. Which statement best explains why language is an important aspect of culture? A. Culture can be easily modified by international businesses. B. Miscommunications are easily overcome in the business environment. C. Language facilitates communication and sheds light on people's value systems. D. Cultural misunderstandings can be cleared up by using English for business transactions. E. Laws and regulations can affect company operations.

C. Language facilitates communication and sheds light on people's value systems.

Why would firms internationalize to earn higher margins and profits? A. Firms move to serve clients relocating for higher profits. B. Firms can access labor and managerial talent at lower costs. C. Market growth in mature countries is often flat, and foreign markets may be underserved. D. Unique foreign environments expose firms to new ideas for products. E. Foreign markets can extend the marketable life of products that have reached maturity at home.

C. Market growth in mature countries is often flat, and foreign markets may be underserved.

​________ provides​ small-scale financial services such as credit and loans that assist entrepreneurs in starting businesses in poor countries. A. Sustainability B. A subsidy C. Microfinance D. Economic development E. A family conglomerate

C. Microfinance

Which of the following focuses on the resources a corporation possesses compared with others and recommends that corporations that utilize internationalization strategies own or control certain resources that are not readily accessible to​ competitors? A. Comparative advantage principle B. Absolute advantage principle C. Monopolistic advantage theory D. Mercantilism E. Factor proportions theory

C. Monopolistic advantage theory

What is a common feature of national industrial​ policies? A. Establishing trade barriers B. Developing tourism C. Offering tax incentives D. Modifying child labor laws E. Reducing​ R&D spending

C. Offering tax incentives

Which dimension of globalization involves the unrestricted movement of capital and the expanded networks of economies throughout the world? A. Incorporation and interdependence of global markets B. Growth of local financial integration alliances C. Progression of international investments and financial activities D. Globalization of production E. Merging of customer preferences and standards

C. Progression of international investments and financial activities

Sally, a recent business school graduate, loves adventure, so she is seeking a job in a foreign country to expand her sense of the world of business. She is being recruited by a company that has 50 employees and is looking to hire additional personnel to oversee the firm's exporting branch in Vietnam. What type of international business is recruiting Sally? A. Born global firm B. Multinational enterprise C. Small enterprise D. Medium-sized enterprise E. Nongovernmental organization

C. Small enterprise

​________ proposes that countries should export only products that use copious factors of production and import only goods that use limited factors of production. A. The absolute advantage principle B. The comparative advantage principle C. The factor proportions theory D. New trade theory E. Mercantilism

C. The factor proportions theory

A company has an ethical challenge in that its overseas supplier is employing laborers to work in harsh conditions for next to nothing. How would a fairness approach to ethics differ from a common good approach to this​ challenge? A. The fairness approach would promote developing the local community of the​ laborers, whereas the common good approach would promote ethical requirements for the supplier. B. The fairness approach would promote punishing the​ supplier, whereas the common good approach would promote encouraging the supplier to be more equitable. C. The fairness approach would promote paying all of the laborers an equal​ wage, whereas the common good approach would promote lobbying the government to pass laws requiring equal wages. D. The fairness approach would promote helping the laborers and the​ supplier, whereas the common good approach would promote helping only the laborers. E. The fairness approach would promote changing​ suppliers, whereas the common good approach would promote reforming the supplier.

C. The fairness approach would promote paying all of the laborers an equal​ wage, whereas the common good approach would promote lobbying the government to pass laws requiring equal wages.

Which statement best explains why Unilever and​ P&G sell shampoo for 2 cents per​ mini-sachet in​ India? A. Local entrepreneurs get just enough funding to start successful businesses. B. The firms can inexpensively test new product ideas in​ low-income countries. C. The firms can earn profits in emerging markets by offering customized products. D. The firms realize that poverty weakens national governments. E. Unrelenting poverty is present in emerging markets despite increased growth.

C. The firms can earn profits in emerging markets by offering customized products.

India is entering the global age and has a growing middle class. An Indian car manufacturer wants to offer a car for the average citizen of India, but does not have the technology available to create an inexpensive car that meets the laws that the Indian government is considering imposing. The company sets out to find a U.S. hybrid and electric car manufacturer that is willing to work with them. Why would a U.S. firm most likely agree? A. To be closer to supply sources B. To decrease demand for its products C. To develop a network of people and increase business in the future D. To gain access to lower-cost or better-value factors of production E. To take advantage of Indian scientists

C. To develop a network of people and increase business in the future

Companies primarily internationalize for the purpose of ________. A. decentralizing the corporate structure B. centralizing supply chain operations C. gaining a competitive advantage D. downsizing the workforce E. institutionalizing corporate processes

C. gaining a competitive advantage

Because of the availability of knowledge workers and specialized talent and supporting​ infrastructure, Bangalore,​ India, has become​ a(n) ________ in IT and business services industries. A. mercantile region B. free trade cluster C. industrial cluster D. absolute advantage location E. monopolistic advantage city

C. industrial cluster

Global sourcing most likely raises concerns about​ ________ A. providing information to investors and customers B. identifying opinion leaders C. operating factories that generate pollution D. advertising and promoting products and services E. marketing products to children

C. operating factories that generate pollution

During a conversation in Latin America, people stand closer together than in northern Europe or the United States. This is an example of cultural differences in ________. A. formal education B. appropriate behavior at social gatherings C. perception of space D. perception of value E. art, folklore, and high cuisine

C. perception of space

Which of the following statements best describes economic progress in​ Africa? A. Nigeria has faced a decline in oil revenue. B. There has been an outflow of foreign investment from Africa. C. African unemployment is very low across the entire continent. D. Annual GDP is approaching 5 percent per year in some nations in Africa. E. Trade and investment have remained stagnant in Africa.

D. Annual GDP is approaching 5 percent per year in some nations in Africa.

By the year​ 2020, it is expected that half of the​ world's middle class will live in​ ________. A. North America B. South America C. Australia D. Asia E. Europe

D. Asia

Which statement best describes network​ theory? A. A firm gains more control over its proprietary knowledge. B. Countries import goods that use scarce factors of production. C. As a product enters the maturity​ phase, the inventors​ mass-produce it. D. Buyers and sellers are linked to one another through continuous exchanges. E. Trade grows fastest among countries with similar factors of production.

D. Buyers and sellers are linked to one another through continuous exchanges.

Save the Children operates in 120 countries. If the financial crisis from countries such as Greece were to spread rapidly to other European and non-European countries, it could be described as which of the following phenomena? A. Globalization B. Country risk C. Internationalization D. Contagion E. Reshoring

D. Contagion

Which of the following represents the trend of economic disaster spreading from one country to another? A. Globalization B. Country risk C. Pollution D. Contagion E. Internationalization

D. Contagion

According to the​ video, which of the following are two of the most common corporate ethical​ missteps? A. Money laundering and fraud B. Fraud and corruption C. Embezzlement and money laundering D. Corruption and bribery E. Embezzlement and bribery

D. Corruption and bribery

Which of the following does NOT describe a family conglomerate​ (FC)? A. An​ FC's growth stems from its close rapport with the government. B. FCs enjoy competitive advantages including superior market knowledge and access to capital in their home countries. C. A government may provide FCs with​ subsidies, loans, and tax incentives. D. FCs provide little tax revenue and fail to stimulate national economic development. E. An FC may possess the most extensive market share in several domestic industries

D. FCs provide little tax revenue and fail to stimulate national economic development.

Which of the following drivers of globalization has MOST helped change low-value-adding commodity producers to competitive producers? A. Reductions in barriers to trade B. Integration of world financial markets C. Advances in technology D. Industrialization, economic development, and modernization E. Market liberalization

D. Industrialization, economic development, and modernization

________ is inspiring quicker dispersion of consumer products and brands across the globe. A. Importing B. Country risk C. Global sourcing D. International trade E. Foreign direct investment

D. International trade

Heather Wilmington is the newest member of the marketing team at Office World, an office supply store chain in the United States. Heather has been hired to help the company alter its marketing campaign to better suit the needs of potential international customers. Heather suggests changing the company's current and long-time ad slogan when marketing in foreign countries. However, some members of the marketing team at Office World are having trouble understanding why this would be necessary. Which of the following examples does NOT support Heather's suggestion? A. English jargon and idioms may puzzle non-native speakers. B. The Japanese word muzakashii can be translated as either "difficult," "delicate," or "I don't want to discuss it." C. A one-word equivalent of many words, such as "aftertaste," does not exist in many languages around the world. D. It is not possible to create a word-for-word translation for many phrases. E. Pepsi's literal translation of its slogan insulted Taiwanese customers.

D. It is not possible to create a word-for-word translation for many phrases.

​________ is the transfer of industries from state ownership to​ non-public entities. A. Targeting B. Outsourcing C. Modernization D. Privatization E. Global sourcing

D. Privatization

Why can many global products and services be standardized? A. Institutions such as the World Bank and the International Monetary Fund have reduced trade barriers. B. Consumers want goods tailored to their local needs. C. Consumers want products and services that fit their values. D. There is a convergence of consumer lifestyles and preferences worldwide. E. Global consumers can communicate about products using social media.

D. There is a convergence of consumer lifestyles and preferences worldwide.

Pioneer Systems is a young entrepreneurial company that has engaged in international business from the day it opened its doors. Pioneer is categorized as a ________. A. franchise B. multinational enterprise C. medium-sized enterprise D. born global firm E. nongovernmental organization

D. born global firm

An advantage of internalization is the ability to​ ________. A. license products to other global firms B. advertise about the value of the​ firm's products C. outsource activities to external suppliers D. control how a​ company's products are produced E. raise the standard of living in foreign markets

D. control how a​ company's products are produced

A(n) ________ values nonverbal messages and sees communication as a way to encourage harmony in relationships. A. collective culture B. low-context culture C. individualistic culture D. high-context culture E. masculine culture

D. high-context culture

In a(n) ________ culture, people are flexible, and they value multitasking and spending a lot of time with others. Such cultures do not put much emphasis on time and schedules. A. socialized B. monochronic C. symbolic D. polychronic E. individualistic

D. polychronic

Networks serve as​ positive, long-term​ ________ that businesses form with each other for economic benefit. A. intellectual property agreements B. industrial clusters C. offshoring opportunities D. relationships E. innovations

D. relationships

The greatest significance of globalization is reflected directly in a company's ________. A. market share B. reshoring efforts C. balance sheet D. value chain E. offshoring activities

D. value chain

________ is a document that describes the values and expectations that guide the decisions of all employees in a firm. A. Corporate governance B. A code of conduct C. A sustainable practice D. A global ethical standard E. A code of ethics

E. A code of ethics

Which stage in the internationalization process model consists of firms exploring their international opportunities and committing time and resources to international​ success? A. Committed involvement stage B. Experimental involvement stage C. National emphasis stage D. ​Pre-export stage E. Active involvement stage

E. Active involvement stage

What is the LEAST likely way to develop cultural competence? A. Work with people from other cultures. B. Be careful of expressing cultural bias. C. Try to speak the local language. D. Gain factual information about the other culture. E. Avoid developing cultural intelligence.

E. Avoid developing cultural intelligence.

Which of the following would most likely be a social interest of a sustainable​ business? A. Offshoring B. Importing raw materials C. Establishing tax flows D. Maximizing waste water E. Avoiding the use of sweatshops

E. Avoiding the use of sweatshops

In doing business with China, U.S. businesses should understand that there is a strong influence of ______. A. Hinduism B. Judaism C. Islam D. Christianity E. Confucianism

E. Confucianism

MINI manufactures its cars in only two countries with sales throughout the world. This represents which of the following? A. Global sourcing B. Born global firm C. Commercial risk D. International portfolio investment E. International business

E. International business

China, India, and Eastern Europe have become known as cost-effective places for producing goods and services, and they have attracted an increasing amount of foreign capital into their economies. Which driver of globalization best explains this occurrence? A. Technological advances improving efficiency at a global scale B. Financial markets integrating on a global scale C. Industrialization and rebuilding D. A global decrease in barriers of trade E. Market liberalization and implementation of open markets

E. Market liberalization and implementation of open markets

What is the most likely reason that Nestlé sells its food and beverage products worldwide? A. Nestlé wants to support sustainability efforts around the world. B. Nestlé wants to remain competitive in its home market. C. Nestlé wants to increase its revenue from domestic operations. D. Nestlé wants to provide global skills and knowledge to employees. E. Nestlé wants to earn profits in international markets.

E. Nestlé wants to earn profits in international markets.

Which of the following is an example of a sustainable​ practice? A. Measuring air pollution B. Using power plants for electricity C. Engaging in philanthropic activities D. Limiting the use of recycled water E. Rotating farm crops

E. Rotating farm crops

The first step in the​ five-step framework for ethical decision making is to​ ________. A. implement a course of action B. evaluate results C. examine the facts D. create alternatives E. identify the problem

E. identify the problem

A focal firm is a company that ________. A. offers banking services B. arranges international shipping C. provides marketing services D. offers logistics services E. initiates international business transactions

E. initiates international business transactions

Law firms sometimes ask their employees to pad their billable hours or charge customers for tasks they did not perform. This is an example of​ ________. A. unfair compensation practices B. piracy C. counterfeiting D. deceptive marketing E. unethical behavior

E. unethical behavior

According to the​ ________ approach, the best ethical action is the one that produces the greatest balance of good over harm. A. common good B. rights C. fairness D. virtue E. utilitarian

E. utilitarian

A company that decides to come forward with the truth about its unethical practices is practicing the​ ________ approach to ethical standards. A. utilitarian B. common good C. rights D. fairness E. virtue

E. virtue

Why is the middle class used to determine market​ potential? A. ​Middle-class households in emerging markets buy only simple necessities. B. The middle class makes up a very small proportion of households in advanced economies. C. ​Middle-class households in emerging markets have little disposable income. D. ​Middle-class consumers cannot find professional jobs. E. ​Middle-class individuals are politically and environmentally active.

E. ​Middle-class individuals are politically and environmentally active.