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WorksheetsInternational Business Environments & Operations 16e AEM 2022
Total questions: 140
Worksheet time: 1hrs 10mins
Name
Class
Date
1.
1) The widening set of interdependent relationships among people from different parts of the world is known as ________.
a)
A) globalization
b)
B) offshoring
c)
C) franchising
d)
D) outsourcing
2.
2) Which of the following best defines international business?
a)
A) It includes all economic flows between two or more countries.
b)
B) It includes all private economic flows between two or more countries.
c)
C) It includes all business transactions involving two or more countries.
d)
D) It includes all business transactions in countries other than your home country.
3.
3) In terms of international business, it is most accurate to say that ________.
a)
A) there is a universal "best way" to conduct business
b)
B) global competition affects large companies but not small ones
c)
C) most firms depend either on foreign markets and supplies or compete against companies that do
d)
D) government regulation of international business has little effect on a company's profits
4.
4) Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities; however, Devon would most likely benefit from studying international business issues so that he can ________.
a)
A) conduct better job interviews
b)
B) better understand how foreign operations affect the company's competitive position
c)
C) supervise and evaluate subordinates who have global assignments
d)
D) understand the legalities of importing and exporting products overseas
5.
5) Which of the following is an indication of the increased globalization of business since the end of World War II?
a)
A) Foreign trade has largely replaced foreign ownership as a means of conducting international business.
b)
B) World trade has grown more rapidly than world production.
c)
C) Globally, consumers now depend on foreign output for more than half their consumption.
d)
D) Countries have increased their import restrictions to counter the rising tide of imports.
6.
6) According to the A.T. Kearny/Foreign Policy Globalization Index, countries ________.
a)
A) tend to be ranked similarly on all four dimensions
b)
B) are more globalized on the political dimension than on personal contact
c)
C) that are large in land mass and population are less globalized than small countries
d)
D) sometimes rank high on one dimension and low on another
7.
15) The shifting of national borders has most likely created which of the following situations for international business?
a)
A) It has left rural residents more isolated from technology.
b)
B) It has complicated the understanding of behavioral factors affecting business.
c)
C) It has increased physical barriers to exporting.
d)
D) It has slowed communications between a company's headquarters and foreign operations.
8.
16) Most of the world's goods and services are sold ________.
a)
A) in international markets
b)
B) in the countries where they are produced
c)
C) through exports to small countries
d)
D) through exports to large countries
9.
17) Which of the following has NOT been a major force increasing globalization in recent decades?
a)
A) liberalization of cross-border trade
b)
B) increase in and expansion of technology
c)
C) growing pressure from consumers
d)
D) decreasing prices of natural resources
10.
18) Which of the following has MOST influenced consumers to demand access to foreign-made products?
a)
A) Declining global affluence has caused consumers to seek out lower-priced products from abroad.
b)
B) Consumers have become more efficient in using media and technologies to compare prices worldwide.
c)
C) Fearing that their governments will enact restrictive policies on imports, consumers are stocking up on foreign products before restrictions are put in place.
d)
D) Expectations of rising prices of foreign products have caused consumers to seek foreign products before their prices become prohibitive.
11.
19) Which of the following best explains why international business has grown rapidly in the past few decades?
a)
A) the end of the political division between the Communist and non-Communist blocs
b)
B) greater income equality in most countries
c)
C) growing concern about climate change
d)
D) increased concerns about terrorism
12.
20) Advanced communication systems have contributed to growth in international business by ________.
a)
A) enabling better oversight of global operations
b)
B) reducing the effects of global competition
c)
C) decreasing the cost of cargo transportation
d)
D) reducing export regulations
13.
21) Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S. market. Which of the following is likely the MOST important factor for this increase in imports?
a)
A) more effective production techniques
b)
B) advances in communication systems
c)
C) advances in transportation and logistics
d)
D) cross-national cooperation
14.
22) Because consumers want a greater variety of goods and services at lower prices, many governments have ________.
a)
A) reduced their restrictions on the international movement of goods and services
b)
B) acted to tax most imports at a lower rate than domestic products
c)
C) sought to eliminate reciprocal advantages negotiated through international organizations and treaties
d)
D) increased their participation in multinational problem-solving efforts
15.
23) Which of the following best explains recent governmental relaxation of restrictions on cross-border trade and resource movements?
a)
A) Most countries face shortages of workers, so they seek immigrants who can help them produce more.
b)
B) Governments believe that this will decrease the need to make their own companies more innovative.
c)
C) Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary.
d)
D) Governments believe that domestic producers will become more efficient as a result of foreign competition.
16.
24) A company starting out with a global focus, usually because of the international experience of its founders, is called a ________.
a)
A) multinational enterprise
b)
B) transnational company
c)
C) strategically allied company
d)
D) born-global company
17.
25) Assume an enterprise is considering establishment of a foreign production facility. Which of the following best supports this decision?
a)
A) Its foreign competitors have higher production costs than it has.
b)
B) Its main competitor successfully opened a foreign plant.
c)
C) Its suppliers follow an agglomeration strategy.
d)
D) None of its competitors have foreign production facilities.
18.
26) When a company successfully responds to foreign production and market opportunities, ________.
a)
A) other companies will likely emulate its successful practices
b)
B) it likely has a long-term advantage over competitors
c)
C) it will downsize its domestic operations
d)
D) its home government likely raises taxes on the company
19.
27) Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other?
a)
A) to attack problems jointly that one country acting alone cannot solve
b)
B) to deal with issues that lie outside the territory of any nation
c)
C) to gain reciprocal advantages
d)
D) to establish a common language
20.
28) Governments have signed treaties to protect foreign-owned property rights, such as investments and patents. A primary reason for doing so is to ________.
a)
A) gain reciprocal advantages
b)
B) reduce the domestic effects of other countries' economic policies
c)
C) deal with areas of concern outside the territory of any one country
d)
D) reduce national conflicts leading to violent political demonstrations
21.
29) What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations?
a)
A) to gain an advantageous division of labor
b)
B) to be in compliance with United Nations' requirements
c)
C) to attack problems jointly that one country acting alone cannot solve
d)
D) to assure that all countries get an equitable share of taxes from multinational enterprises
22.
30) All of the following are areas in which commercial activities take place outside the territory of any nation EXCEPT ________.
a)
A) noncoastal areas of the oceans
b)
B) the Panama and Suez Canals
c)
C) outer space
d)
D) Antarctica
23.
38) Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization?
a)
A) A large country on which they depend may pressure them on political matters.
b)
B) A large international firm may dictate its terms of operations in a small country.
c)
C) A large company may exploit legal loopholes to avoid tax payments.
d)
D) A large country may substantially increase its demand for the small country's production.
24.
39) Which of the following statements would most likely be made by a SUPPORTER of globalization?
a)
A) Globalization encourages the adoption of uniform and superior standards for combating environmental problems.
b)
B) Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources.
c)
C) Global competition discourages resource-saving technologies, which are costly.
d)
D) Air pollution and toxic runoff problems increase with global economic growth.
25.
40) Limitation of logging in the Amazon region is generally viewed as environmentally beneficial for the planet as a whole; however, unemployed Brazilian workers have felt that job creation inside Brazil is more important than climate protection outside Brazil. This example best illustrates which of the following?
a)
A) why smaller countries are concerned that large international companies are powerful enough to dictate operating terms
b)
B) why globalization is needed to foster uniform standards for combating environmental problems
c)
C) how cultural homogeneity threatens the cultural foundation of smaller nations
d)
D) how global interests can conflict with a country's local interests
26.
41) Although globalization may bring economic growth, critics nevertheless contend that ________.
a)
A) the growth is too fast
b)
B) the inequality of gains puts some people in a relatively worse economic situation
c)
C) this growth is mainly for the future, thus ignoring present economic growth needs
d)
D) the cultural foundations of sovereignty are supported by globalization
27.
42) Which of the following statements would most likely NOT be supported by an advocate of offshoring?
a)
A) Offshoring increases the number of high-value jobs in the home countries of offshoring companies.
b)
B) Offshoring is fundamentally better for workers than the introduction of labor-saving technologies.
c)
C) Workers displaced due to offshoring are able to find new jobs as easily as those displaced by technology.
d)
D) There are upper limits to offshoring because of the lack of skilled workers willing to work permanently for low wages.
28.
43) A major criticism of offshoring is that it ________.
a)
A) increases production costs
b)
B) exchanges good jobs for bad jobs
c)
C) threatens the sovereignty of larger countries
d)
D) allows companies to avoid payment of any taxes
29.
44) Critics of offshoring claim all EXCEPT which of the following?
a)
A) Cost savings are seldom passed on to final consumers.
b)
B) Offshoring reduces the incomes of people in low-wage countries.
c)
C) Incomes of workers in countries whose companies offshored production have gone down as a percentage of national income.
d)
D) Many workers who have been displaced by offshoring do not have the skills needed for higher-value jobs.
30.
49) The process of shifting production from a domestic to a foreign location is best known as ________.
a)
A) offshoring
b)
B) outsourcing
c)
C) licensing
d)
D) joint venturing
31.
50) Assume that company executives at the firm would like to increase sales by expanding into an international market. Which of the following factors, if true, best supports a decision to expand sales globally?
a)
A) It can offshore most of its production.
b)
B) It can obtain all of its resources for the same price overseas.
c)
C) Its costs of making additional sales would not increase disproportionately.
d)
D) The foreign market has higher real interest rates.
32.
51) Kevin, marketing manager of the North American Bowling League, has decided to televise major bowling competitions to viewers in multiple countries rather than only in Canada and the U.S. Which of the following goals would this most likely help Kevin accomplish?
a)
A) acquiring new resources
b)
B) minimizing corporate risks
c)
C) increasing sales and profits
d)
D) obtaining competitive advantages
33.
52) Which of the following BEST explains how a firm reduces risk by operating internationally?
a)
A) taking advantage of business-cycle differences among countries
b)
B) buying competitive risk insurance unavailable domestically
c)
C) preventing competitors from operating in the countries it has entered
d)
D) operating in less competitive environments than those at home
34.
53) Carnival Cruise Lines lowers its taxes by all of the following EXCEPT ________.
a)
A) hiring host-country nationals who pay no taxes
b)
B) taking advantage of taxation laws in foreign countries
c)
C) sailing in international waters outside countries' tax jurisdiction
d)
D) paying substantial port fees instead of taxes during stopovers
35.
54) A flag of convenience is ________.
a)
A) the declaration that a product is made in a country that has easier legal access to a given foreign market
b)
B) a designation for products originating within a particular trading group
c)
C) the registration of a ship by a shipping company in a country that charges low taxes
d)
D) the indication that a shipping organization can sail in international waters
36.
59) An example of a U.S. merchandise import is an automobile made in ________ and sold ________.
a)
A) the United States by a Japanese company; in the United States
b)
B) the United States by a Japanese company; outside the United States
c)
C) Japan by a Japanese company; in the United States
d)
D) Japan by a U.S. company; outside the United States
37.
60) Visible exports and imports are ________.
a)
A) merchandise imports and exports
b)
B) the sum total of goods and services traded
c)
C) international transactions paid for in money rather than barter
d)
D) typically a country's least common international economic transactions
38.
61) An example of a Japanese service export is a visit by a ________.
a)
A) Japanese citizen to Disneyland in the United States
b)
B) Japanese citizen to the Japan Pavilion at Epcot Center in the United States
c)
C) U.S. citizen to the Japan Pavilion at Epcot Center in the United States
d)
D) U.S. citizen to Tokyo Disneyland in Japan
39.
62) Reebok pays a royalty to the German Soccer League to use the team's logo on t-shirts that it sells. Reebok and the German Soccer League most likely have a ________.
a)
A) turnkey operation contract
b)
B) licensing agreement
c)
C) portfolio investment
d)
D) joint venture
40.
63) A foreign direct investment occurs when ________.
a)
A) a company owns at least 25% of a foreign firm
b)
B) a company has a controlling interest in a foreign company
c)
C) foreign ownership is in private rather than government securities
d)
D) a foreign firm agrees to a licensing agreement with a large conglomerate
41.
64) Which term refers to two or more companies that share ownership of an FDI?
a)
A) turnkey operation
b)
B) transnational firm
c)
C) joint venture
d)
D) franchise
42.
65) A multinational enterprise (MNE) is best defined as a firm ________.
a)
A) that is a member of the Fortune 500
b)
B) with foreign business partners
c)
C) involved in global franchising
d)
D) with foreign direct investments
43.
66) The term used by the United Nations as a synonym for multinational enterprise is ________.
a)
A) multinational corporation
b)
B) transnational company
c)
C) international firm
d)
D) born-global
44.
67) The owner of a U.S. football team and the owner of a Canadian hockey team purchase a British soccer team. This is an example of a ________.
a)
A) royalty
b)
B) portfolio investment
c)
C) turnkey operation
d)
D) joint venture
45.
74) Managers who are knowledgeable about ________ are better able to identify the location, quantity, quality, and availability of the world's natural resources.
a)
A) political factors
b)
B) geographic factors
c)
C) competitive factors
d)
D) cultural factors
46.
75) Although the U.S. film industry depends heavily on revenue in foreign countries, revenue from international markets is usually low for a sports-themed film. This is most likely due to ________ factors.
a)
A) political
b)
B) geographic
c)
C) behavioral (cultural)
d)
D) legal
47.
76) In addition to understanding the laws affecting business in countries where their companies operate, it is most important for managers to understand the ________.
a)
A) methods for appointing local judges
b)
B) ethical rationale behind the laws
c)
C) history of the local legal system
d)
D) degree of law enforcement
48.
77) Some key ________ factors in a company's international business external environment are its product strategy and access to resources.
a)
A) geographic
b)
B) political
c)
C) competitive
d)
D) behavioral
49.
78) The same automobile company produces Fiats and Ferraris. The company builds an engine plant in China with low production costs for Fiats but not Ferraris. The probable reason is that ________.
a)
A) Fiat competes mainly on a focus strategy, whereas Ferrari competes mainly on a mass-market strategy
b)
B) Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy
c)
C) Ferrari faces global competitors in China, whereas Fiat competes in China mainly against Chinese competitors
d)
D) although Ferrari did not build an engine plant, it will use the same Fiat engines in its models
50.
79) Elway, a computer firm, has high foreign sales in Asia and wants to expand sales into Europe. Which of the following statements provides the most appropriate advice for Elway executives?
a)
A) Although countries' market sizes differ, companies usually face about the same number of competitors in each national market.
b)
B) In most industries, companies face the same competitors in each country where they operate.
c)
C) It takes about the same amount of resources to gain national distribution in one country versus another.
d)
D) Being a leader in one country does not guarantee market leadership in another country.
51.
80) When companies face the same competitors in almost all countries where they operate, ________.
a)
A) what they learn about one another in one country is useful in predicting the others' strategies and actions elsewhere
b)
B) the market leader is the same everywhere
c)
C) there is less need to understand the physical and societal factors of each country
d)
D) they are less likely to enter joint ventures with other companies
52.
81) The view that globalization is inevitable is most likely based on the belief that ________.
a)
A) international organizations will replace nation-states
b)
B) protesters against globalization will be persuaded to change their views
c)
C) people want more global homogeneity of cultures
d)
D) technical advances in transportation and communications are highly persistent
53.
82) Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that ________.
a)
A) regionalization is a transition stage toward globalization
b)
B) neighboring countries are more apt to disagree politically than distant countries
c)
C) neighboring countries are too geographically similar to benefit from trade
d)
D) business in non-territorial areas is not regional
54.
83) Which of the following is NOT a common argument for the slowing of future globalization?
a)
A) Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people.
b)
B) Technological, transportation, and communication advances will decline in the near future.
c)
C) Major countries have either ignored certain international treaties or have refused to sign them.
d)
D) The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments.
55.
84) Some observers feel that international institutions and the people working in them cannot adequately handle the complexities of an interconnected world. Based on this, these observers believe that ________.
a)
A) globalization will slow in the future
b)
B) globalization is nevertheless inevitable
c)
C) international business will grow primarily on a regional basis
d)
D) private companies will replace international organizations in running the world's economy
56.
1.4) Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities; however, Devon would most likely benefit from studying international business issues so that he can______
a)
A) conduct better job interviews
b)
B) better understand how foreign operations affect the company's competitive position
c)
C) supervise and evaluate subordinates who have global assignments
d)
D) understand the legalities of importing and exporting products overseas
57.
19) When examining economic and demographic variables to compare countries' sales potential for your product, which the following should you NOT consider?
a)
A) Countries may depend heavily on the import of raw materials.
b)
B) Consumers in some countries may more conveniently substitute certain products than consumers in some other countries.
c)
C) Consumers in developing countries may leapfrog technologies by first purchasing the latest products.
d)
D) Trading blocs may enhance sales potential above what is indicated in individual country figures.
58.
7.4) A company's location should be flexible enough to ______
a)
A) implement concentration strategies instead of diversification strategies
b)
B) respond to new opportunities and withdraw from less profitable ones
c)
c) import from anywhere in the world to a single production location
d)
D) export anywhere in the world from a single production location
59.
8.11) Which of the following is most likely a true statement about the global economy since the 1980s?
a)
A) Socialist governments are intervening more in global exchanges.
b)
B) Wealthy countries are exercising total control over emerging markets.
c)
C) Developing countries are losing growing shares of their foreign-exchange reserves.
d)
D) Emerging economies are adopting the principles and practices of free markets.
60.
10. 13 Which of the following has the greatest potential to transform an industry's structure?
a)
A) a change in a competitor's management
b)
B) a change in a competitor's pricing structure
c)
C) the expansion of a distribution channel
d)
D) the exit of a competitor from the industry
61.
11. 12) Escalation of commitment is best described as the______
a)
A) strategy of first entering a country on a small scale
b)
B) process of entering a country because "everyone else is going there"
c)
C) expectation of a higher return in more politically risky environments
d)
D) increased likelihood of investing in a country because of having spent considerable time and money in examining it
62.
13. 5) The principle that an individual has the freedom to pursue his or her interests is called______
a)
A) socialism
b)
B) totalitarianism
c)
C) individualism
d)
D) collectivism
63.
24. 5) The ______view calls for companies to develop low-cost, high- powered, resource-minimizing innovations that can be marketed to the billions of people living on less than a few dollars a day.
a)
A) Base of the Pyramid
b)
B) Hierarchy of Needs
c)
C) Happy Planet Index
d)
D) Gini coefficient
64.
27. 7) In a country that emphasizes collectivism, ______.
a)
A) the interests of the individual are more important than the interests of the state
b)
B) one person or political party exercises absolute control over the political and economic systems
c)
C) the needs of society and the needs of individuals are treated as equally important
d)
D) the needs of society take precedence over individual freedoms
65.
29. 5) Rather than an inspirational statement, a(n) ______statement is meant to motivate people to act and specify the objectives that the firm needs to attain.
a)
A) mission
b)
B) vision
c)
C) expectation
d)
D) strategy
66.
30. 9) Which of the following undesirable results will most likely occur for a country running a favorable balance of trade?
a)
A) higher unemployment
b)
B) higher domestic interest rates
c)
C) fewer funds to invest abroad
d)
D) granting credit that may be risky
67.
32. 1) Political, legal, economic, monetary, and institutional forces comprise the ______ of international business and influence managers actions.
a)
A) environment
b)
B) competition
c)
C) culture
d)
D) threat
68.
33. 4) Which of the following ideas holds that a government should NOT interfere in business affairs?
a)
A) collectivism
b)
B)laissez-faire
c)
C the rule of man
d)
D) pluralism
69.
34. 3) When divergent cultures come in contact, ______occurs.
a)
A) power distance
b)
B) culture shock
c)
C) cultural collision
d)
D) group membership
70.
35. 6 Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following?
a)
A) observe the behavior of people who have gained respect within that cultural environment
b)
B) rely on stereotypes, which are based on averages, to gain an understanding of the culture
c)
C) avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors
d)
D) memorize the cultural variations that are typically encountered in a specific cultural environment
71.
36. 2) International managers most likely need to understand how to evaluate international geographic alternatives because______
a)
A) they usually have a surplus of resources and need to take advantage of all opportunities
b)
B) many regional trading groups prohibit companies from outside of the trading group from manufacturing in more than one member country
c)
C) the commitment of resources to one locale may require forgoing projects in other locales
d)
D) decreased worldwide transportation costs and increased trade liberalization now allow companies to serve worldwide markets from a single production location
72.
38. 6) Proponents of ______argue that individual interests are not as important as the welfare of the group.
a)
A) pluralism
b)
B) capitalism
c)
C) collectivism
d)
D) individualism
73.
39. 11) In a practical sense, the term political system is meant to signify the ______
a)
A) organization of military power in a country
b)
B) working government in a country
c)
C) philosophical orientations in a country
d)
D) cultural values in a country
74.
43. 10) The recent global financial crisis has led to which of the following?
a)
A) governments seeking to impose more constraints on capitalism
b)
B) governments seeking to eliminate constraints on capitalism
c)
C) governments seeking to increase the interdependence of developing economies
d)
D) governments seeking to eliminate the interdependence of developing economies
75.
44. 1) Comparing countries in international business is LEAST useful for determining the______.
a)
A) best location for sales and production
b)
B) sequence of entering different countries
c)
C) amount of resources to allocate in each country
d)
D) selection of which managers to send to which countries
76.
46. 12) The distinguishing feature of political ideologies along the political spectrum is ______, with some emphasizing its primacy and others opposing it.
a)
A) capitalism
b)
B) socialism
c)
C) freedom
d)
D) liberalism
77.
48) History suggests that if the economic crisis worsens, we are likely to see more people question the______
a)
A) fall of communism
b)
B) legitimacy of capitalism
c)
C) practicality of mixed market economies
d)
D) correlation between economic freedom and prosperity
78.
51. 21) The ability to compare production costs among countries in an effort to determine where to locate production is significantly hampered by all of the following EXCEPT ______
a)
A) the number of ways the same product can be made
b)
B) restrictions on the international flow of data
c)
C the ways that laws may be enforced
d)
D) future costs from exchange rate changes
79.
54. 13) A(n) ______ideology is the system of ideas that expresses the goals, theories, and aims of how society should work.
a)
A) technological
b)
B) economic
c)
C) legal
d)
D) political
80.
55. 6) An economic system is the set of structures and processes that ______in a country.
a)
A) guides the allocation of resources and shapes the conduct of business activities
b)
B) directs the movement of specific products to specific consumers
c)
C) sets the standards of competitive success for companies in the economy
d)
D) stipulates the roles and responsibilities of consumers
81.
56. 20) Which of the following is most likely a true statement about companies’ acquisition of resources/assets abroad?
a)
A) regardless of industry, cheap labor is the most sought after resource.
b)
B) resource availability limits affirms production location choices.
c)
C) Developing countries are losing growing shares of their foreign-exchange reserves.
d)
D) Emerging economies are adopting the principles and practices of free markets.
82.
15. 1) The widening set of interdependent relationships among people from different parts of the world is known as ______
a)
A) globalization
b)
B) offshoring
c)
C) franchising
d)
D) outsourcing
83.
25. 2) Which of the following best defines international business?
a)
A) It includes all economic flows between two or more countries.
b)
B) It includes all private economic flows between two or more countries.
c)
C) It includes all business transactions involving two or more countries.
d)
D) It includes all business transactions in countries other than your home country.
84.
16. 1) ______consists of specific learned norms based on attitudes, values, and beliefs of a group of people.
a)
A) Ethnology
b)
B) Civilization
c)
c) Culture
d)
D) Doctrine
85.
57) Because consumers want a greater variety of goods and services at lower prices, many governments have______
a)
A) reduce desire restrictions on the international movement of goods and services
b)
B) acted to text most imports at a lower rate than domestic products
c)
C) sought to eliminate reciprocal advantages negotiated through international organizations and treatise.
d)
D) increase their participation in multinational problem-solving efforts
86.
58) which of the following is the most accurate statement about culture?
a)
A) cultural variables can easily be isolated from other factors such as economic and political conditions
b)
B) although most cultural variables are universal, the forms these variables take differ from culture to culture
c)
C) most cultural variables are superficial and can easily be influenced by environmental factors.
d)
D) within a culture, everyone responds to particular cultural variables the same way.
87.
59) the term “_________culture” describes a country in which the norm is money - and - things orientation and a belief that it is better to “live to work” than to “work to live”.
a)
A) high masculinity
b)
B) physiological
c)
C) none-fatalistic.
d)
D) high femininity.
88.
18. 8) Under mercantilism, governments sought to influence trade by______
a)
A) establishing bilateral trading agreements with other countries
b)
B) limiting exports
c)
c) limiting imports and subsidizing exports
d)
D encouraging the development of manufacturing in their colonies
89.
60) People generally prefer little consultation between superiors and subordinates in cultures where _____is high.
a)
A) power distance
b)
B) fatalism
c)
C) individualism
d)
D) self-actualization
90.
61) Assume a firm has operations in Tokyo, where there is a collectivist culture. Which of the following would most likely motivate the firm's Japanese employees?
a)
A) -employee-of-the-month" programs
b)
B) extensive vacation line
c)
C on-the-job challenges
d)
D) good health benefits
91.
62) In societies where trust is high, _____
a)
A) people tend to be more future-oriented
b)
B) business costs are typically lower
c)
C) people tend to be more fatalistic
d)
D) family businesses are dominant
92.
64) The principle that an individual has the freedom to pursue his or her interests is called ______
a)
A) socialism
b)
By totalitarianism
c)
C) individualism
d)
D) collectivism
93.
65) In a country that emphasizes collectivism, ________.
a)
A) the interests of the individual are more important than the interests of the state
b)
B) one person or political party exercises absolute control over the political and economic systems
c)
C) the needs of society and the needs of individuals are treated as equally important
d)
D) the nods of society take precedence over individual freedoms
94.
66) Political systems based on the _______paradigm, such as those of Japan and China, accept the principle that government may intervene to ensure that business practices benefit society.
a)
A) individualistic
b)
B) collectivistic
c)
C) pluralistic
d)
D) laisser-faire
95.
67) In a democracy, ______.
a)
A) citizens have the right to participate in the decision-making process
b)
B) the opportunity to truly participate in the political process is restricted to a select few
c)
C) the court system is directly supervised by the political system
d)
D) the rights of the individual are merged with the state
96.
68) Kyle an international manager for Apex Industries, has been given the task of analyzing the economies of three different emerging countries for the firm's potential expansion. Which of the following questions is LEAST relevant to Kyle's assignment?
a)
Al How much freedom will Apex have to run its foreign operations?
b)
B) What are the current economic policies related to development?
c)
C) What is the likelihood that Apex can Gill manufacturing positions with locals?
d)
D) What factors in the country drive or hinder economic change?
97.
69) An economic system is the set of structures and processes that _____ in a country.
a)
A) guides the allocation of resources and shapes the conduct of business activities
b)
By directs the movement of specific products to specific consumers
c)
C) sets (ho standards of competitive success for companies in the economy
d)
D) stipulates the roles and responsibilities of consumers
98.
70) The Economic Freedom Index indicates that economic freedom is positively correlated with all of the following EXCEPT ______.
a)
A) life expectancy
b)
By literacy
c)
O) environmental sustainability
d)
D) Diversity
99.
71) A(n) ______ outlines a firm's ultimate goal and its guiding values in broad terms.
a)
A) mission
b)
By strategy
c)
O) imperative
d)
D) vision
100.
2 Good scanning helps managers avoid the need to make a detailed analysis of countries when deciding where to operate.
a)
A) True
b)
B) False
101.
6.6) Committing resources to one country usually means forgoing or delaying projects in others.
a)
A) True
b)
B) False
102.
9.11) Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies.
a)
A) True
b)
B) False
103.
17. 10) The lack of cultural guidebooks and research specifically for international managers poses a significant problem for global firms.
a)
A) True
b)
B) False
104.
19. 4 Understanding trade theories helps companies know if they will need to compete against goods and services produced abroad.
a)
A) True
b)
B) False
105.
21. 12) Most people's basic values are acquired during childhood and are not readily changed later in life.
a)
A) True
b)
B) False
106.
14. 14 The potential of new entrants is one characteristic of industry structure.
a)
A) True
b)
B) False
107.
22. 5) Because many regional trading groups prohibit companies from producing in more than one member country, companies need to understand how to evaluate international geographic alternatives.
a)
A) True
b)
B) False
108.
26. 7) Globalization refers to all economic transactions among countries.
a)
A) True
b)
B) False
109.
40. 14) Similarity among people is both a cause and effect of national boundaries.
a)
A) True
b)
B) False
110.
41.7) Markets are not always perfectly competitive and some firms consistently outperform industry averages. This suggests that firm performance is also influenced by the presence of bright, motivated managers and their keen sense of innovative products or processes.
a)
A) True
b)
B) False
111.
42. 13) The specific learned norms based on attitudes, values, and beliefs of a group of people are known as ethnology.
a)
A) True
b)
B) False
112.
49. 11) The identity of a nation is typically promoted through symbols, monuments, and museums.
a)
A) True
b)
B) False
113.
50. 10) Most countries' imports account for more than half of their citizens' consumption.
a)
A) True
b)
B) False
114.
20. 9) It is difficult to compare globalization of business over time because shifting national borders have changed the nature of transactions from domestic to international and vice versa.
a)
A) True
b)
B) False
115.
63) In a country with a high masculinity score, people have a tendency to feel sympathy towards individuals who are unemployed or homeless,
a)
A) True
b)
B) False
116.
7) Globalization refers to all economic transactions among countries.
a)
A) True
b)
B) False
117.
8) International business includes all commercial transactions between two or more countries.
a)
A) True
b)
B) False
118.
9) It is difficult to compare globalization of business over time because shifting national borders have changed the nature of transactions from domestic to international and vice versa.
a)
A) True
b)
B) False
119.
10) Most countries' imports account for more than half of their citizens' consumption.
a)
A) True
b)
B) False
120.
11) Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies.
a)
A) True
b)
B) False
121.
31) Globalization of business has been stimulated by institutional developments that aid foreign trade and investment.
a)
A) True
b)
B) False
122.
32) The recent expansion of technology has contributed to the growth in international business by creating new products that are important in world trade.
a)
A) True
b)
B) False
123.
33) Import restrictions are becoming less important because consumers increasingly want to buy goods and services produced in their own countries.
a)
A) True
b)
B) False
124.
34) Many companies merge with or acquire other companies to gain operating efficiencies that help them compete with or become global leaders.
a)
A) True
b)
B) False
125.
35) Governments primarily cooperate through treaties to create a global division of labor.
a)
A) True
b)
B) False
126.
45) Supporters of globalization assert that the process helps countries strengthen their sovereignty.
a)
A) True
b)
B) False
127.
46) A criticism of globalization is that as economic growth increases, too many nonrenewable resources are used.
a)
A) True
b)
B) False
128.
47) The process of shifting production to a foreign country is known as outsourcing.
a)
A) True
b)
B) False
129.
48) Critics of offshoring assert that the short-term cost savings derived from offshoring hinder firms from developing more efficient production methods.
a)
A) True
b)
B) False
130.
55) By operating internationally, a company may take advantage of business-cycle differences among countries and thereby reduce its financial risks.
a)
A) True
b)
B) False
131.
56) The terms multinational corporation and multinational company are frequently used synonyms for strategic alliances.
a)
A) True
b)
B) False
132.
68) The production of goods by a French company in Italy for sale in Italy is an example of an Italian merchandise import.
a)
A) True
b)
B) False
133.
69) When a U.S. citizen flies Japan Airlines, the airline acts as a service exporter for Japan.
a)
A) True
b)
B) False
134.
70) A joint venture is an example of a portfolio investment.
a)
A) True
b)
B) False
135.
71) The ownership of foreign bonds is an example of a portfolio investment.
a)
A) True
b)
B) False
136.
72) The fact that a company is the market leader in one country is no guarantee that it will be the leader in another country.
a)
A) True
b)
B) False
137.
85) Geographical barriers typically affect distribution channels within countries, but they rarely affect distribution channels between countries.
a)
A) True
b)
B) False
138.
86) Managers need to understand not only the laws of countries where they operate, but also how those laws are enforced.
a)
A) True
b)
B) False
139.
87) A company with limited resources is more likely to achieve national distribution within a small country than within a large country.
a)
A) True
b)
B) False
140.
88) The view that regionalization, rather than globalization, will prevail in the future is largely based on the use of common languages among countries in a region.
a)
A) True
b)
B) False
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