Exam 1

Question 1

Which term is defined as the process of social, political, economic, cultural, and technological integration among countries around the world?

Answer 1

Globalization

Globalization encompasses various aspects such as trade, communication, and cultural exchange among nations.

Question 2

_________ is the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural contexts.

Answer 2

International management

International management involves understanding diverse management practices across different countries.

Question 3

The subcontracting or contracting out of activities to external organizations that had previously been performed within the firm is called _________.

Answer 3

Outsourcing

Outsourcing is often used to reduce costs and increase efficiency.

Question 4

The ________ is a free trade agreement among the United States, Canada, and Mexico that has removed most barriers to trade and investment among these countries.

Answer 4

USMCA

The USMCA replaced NAFTA and aims to support fair trade practices.

Question 5

_________ is the term used to indicate the amount of money spent on property, plant, and equipment in another country.

Answer 5

Foreign direct investment

Foreign direct investment is crucial for economic growth in developing countries.

Question 6

_________ is the United States’ largest trading partner, a position it has held for many years.

Answer 6

Canada

Canada and the U.S. have a long-standing trade relationship supported by geographical proximity.

Question 7

A factory, the majority of which are located in Mexican border towns, that imports materials and equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export is referred to as a _________.

Answer 7

Maquiladora

Maquiladoras play a significant role in the U.S.-Mexico trade relationship.

Question 8

A _________ can be defined as an organizational arrangement in Japan in which a large, often vertically integrated group of companies cooperate and work closely with each other to provide goods and services to end users.

Answer 8

Keiretsu

Keiretsu structures enhance collaboration and efficiency among member companies.

Question 9

The ultimate objective of the European Union is to _________.

Answer 9

Eliminate all the trade barriers among member countries

The EU aims to create a single market to facilitate free movement of goods and services.

Question 10

In the context of established economies, the United States has considerable foreign direct investment in _____.

Answer 10

Canada

Canadian markets attract significant U.S. investment due to their economic stability.

Question 11

_____ is the process by which companies undertake some activities at foreign locations instead of in their countries of origin.

Answer 11

Offshoring

Offshoring is often pursued for cost reduction and access to global talent.

Question 12

The _________ is the global organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies.

Answer 12

WTO

The WTO plays a crucial role in facilitating international trade negotiations.

Question 13

A method that adjusts GDP to account for different prices in countries is called _________.

Answer 13

Purchasing power parity

Purchasing power parity provides a more accurate measure of economic productivity across countries.

Question 14

In a _________ economy, some sectors reflect private ownership and the freedom and flexibility of the law of demand, while other sectors are subject to government planning.

Answer 14

Mixed economy

Mixed economies combine elements of capitalism and socialism.

Question 15

U.S. firms maintain particularly dominant global positions in all of the following industries except _________.

Answer 15

Textiles

The textile industry has seen significant competition from overseas markets.

Question 16

Which of the following economies is projected to become the largest by 2050 using market exchange rates?

Answer 16

China

China’s rapid economic growth is expected to surpass that of the U.S.

Question 17

In ____, chaebols are very large, family-held conglomerates that have considerable political and economic power.

Answer 17

South Korea

Chaebols play a significant role in South Korea’s economy.

Question 18

A _________ is comparable to a monopoly in the sense that an organization, in this case the government, has explicit control over the price and supply of a good or service.

Answer 18

Command economy

Command economies are characterized by centralized control and planning.

Question 19

Philosophers such as David Hume, Adam Smith, and Aristotle contributed to the ideology of ___.

Answer 19

Individualism

Individualism emphasizes personal autonomy and self-interest.

Question 20

The most popular form of e-business is for _____.

Answer 20

B2B dealings

B2B (Business-to-Business) transactions dominate the e-commerce landscape.

Question 21

The _________ holds that every country has jurisdiction (authority or power) over its citizens no matter where they are located.

Answer 21

Nationality principle

The nationality principle is essential in international law.

Question 22

The _________ holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country.

Answer 22

Protective principle

This principle allows states to protect their national interests globally.

Question 23

The _________ holds that every nation has the right of jurisdiction within its legal region.

Answer 23

Territoriality principle

The territoriality principle is foundational in international relations.

Question 24

Political repression and denial of rights and civil liberties are dominant ideals of _________.

Answer 24

Totalitarianism

Totalitarian regimes maintain strict control over many aspects of life.

Question 25

Under the _________, all acts of other governments are considered to be valid by U.S. courts, even if such acts are inappropriate in the United States.

Answer 25

Act of state doctrine ## Footnote This doctrine promotes respect for the sovereignty of foreign nations.

Question 26

_________ comes from English law and is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and other nations.

Answer 26

Common law ## Footnote Common law evolves through judicial decisions and precedents.

Question 27

Which term refers to the idea of using an open ledger to record transactions and ownership?

Answer 27

Blockchain technology ## Footnote Blockchain technology enhances transparency and security in transactions.

Question 28

Facing international management, _________ is one of the most important dimensions of the technological environment.

Answer 28

Telecommunications ## Footnote Telecommunications is vital for global business operations.

Question 29

In a business context, individualism is synonymous with _________.

Answer 29

Capitalism ## Footnote Capitalism promotes individual entrepreneurship and market freedom.

Question 30

The _________ holds that there must be mutual respect for the laws, institutions, and the government of other countries in the matter of jurisdiction over their own citizens.

Answer 30

Doctrine of comity ## Footnote The doctrine of comity facilitates international legal cooperation.

Question 31

In the context of the four foundations on which laws are based around the world, Islamic law is derived from _________.

Answer 31

The teachings of the Prophet Muhammad ## Footnote Islamic law, or Sharia, governs many aspects of life for its adherents.

Question 32

Aspects and degrees of the communist totalitarianism form of government are still found in _____.

Answer 32

Vietnam, Cuba, and North Korea ## Footnote These countries exhibit varying degrees of state control and repression.

Question 33

An act that makes it illegal to influence foreign officials through personal payment or political contributions is referred to as the _________.

Answer 33

Foreign Corrupt Practices Act ## Footnote This act aims to prevent corruption in international business.

Question 34

Emerging information technology has made work more ________.

Answer 34

Portable ## Footnote Advances in technology allow for remote work and flexibility.

Question 35

The _________ holds that governments have the right to rule themselves as they see fit.

Answer 35

Principle of sovereignty ## Footnote Sovereignty is a key principle in international relations.

Question 36

Which of the following is one of the biggest problems in transition economies?

Answer 36

Corruption ## Footnote Corruption undermines economic development and stability.

Question 37

According to Aristotelian virtue ethics, which of the following statements is true?

Answer 37

A good, or virtuous, individual does what is right for the right reasons ## Footnote Virtue ethics emphasizes moral character over rules or consequences.

Question 38

Which of the following statements is true about Kantian philosophical traditions?

Answer 38

They argue that individuals have responsibilities based on a core set of moral principles that go beyond those of narrow self-interest ## Footnote Kantian ethics focuses on duty and moral law.

Question 39

According to the Transparency International Corruption Perceptions Index Ratings 2021, the country with the lowest level of perceived corruption is _________.

Answer 39

Finland ## Footnote Finland is recognized for its strong governance and transparency.

Question 40

_________ can be best defined as an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability.

Answer 40

Fair trade ## Footnote Fair trade initiatives aim to support ethical consumerism.

Question 41

According to the Transparency International Corruption Perceptions Index Ratings 2021, the country with the highest level of perceived corruption is _________.

Answer 41

South Sudan ## Footnote South Sudan faces significant governance and corruption challenges.

Question 42

Which of the following is NOT one of the 17 U.N. Sustainable Development Goals?

Answer 42

Ensuring free vaccines for women ## Footnote The U.N. Sustainable Development Goals focus on broader social, economic, and environmental objectives.

Question 43

Which of the following statements is true about women’s rights and gender equity in Japan?

Answer 43

Many women college graduates are still offered only secretarial or low-level jobs ## Footnote Gender disparity in employment remains a challenge in Japan.

Question 44

All of the following are examples of NGOs except _____.

Answer 44

OECD ## Footnote The OECD is an intergovernmental organization, not a non-governmental organization.

Question 45

Corporate governance can be defined as the system by which _________.

Answer 45

business corporations are directed and controlled ## Footnote Corporate governance frameworks ensure accountability and transparency.

Question 46

_____ can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm.

Answer 46

Corporate social responsibility ## Footnote CSR initiatives aim to create positive social and environmental impact.

Question 47

All of the following regions are associated with 'crony capitalism' except _____.

Answer 47

Europe ## Footnote Crony capitalism is often linked to developing economies with weak governance.

Question 48

In the context of human rights, which of the following best reflects a glass ceiling effect?

Answer 48

Unequal managerial opportunities ## Footnote The glass ceiling effect hinders women's advancement in the workplace.

Question 49

In early 2010, the issue of relatively low wages paid by ____ subcontractors made the headlines after a number of suicides by workers at factories run by Foxconn.

Answer 49

Chinese ## Footnote The situation highlighted labor rights and ethical sourcing issues.

Question 50

NGOs have criticized the activities of MNCs, including Levi’s, NIke, and Chiquita, for their sourcing practices in developing countries such as _________.

Answer 50

Taking advantage of lax workplace standards ## Footnote NGOs advocate for fair labor practices and responsible sourcing.

Question 51

The term ____ can be defined as acquired knowledge that people use to interpret experience and generate social behaviors.

Answer 51

Culture ## Footnote Culture influences social interactions and organizational practices.

Question 52

In the context of Fon Trompenaars's relationship orientations, an achievement culture is one in which people are accorded status based on their _________.

Answer 52

Performance ## Footnote Achievement cultures value individual accomplishments and results.

Question 53

Paternalism, measured by a manager's involvement in both personal and off-the-job problems of subordinates, is very important in _________.

Answer 53

Japan ## Footnote Paternalistic management styles are prevalent in Japanese organizations.

Question 54

Dutch researcher, Fons Trompenaars's discussion of the dimension of _________ explores the degree to which people believe that they can control outcomes (inner-directed) or let things take their own course (outer-directed).

Answer 54

The environment ## Footnote This dimension assesses cultural attitudes toward control and fate.

Question 55

________ are basic convictions that people have regarding what is right and wrong, good and bad, and important or unimportant.

Answer 55

Values ## Footnote Values shape individual and group behavior within cultures.

Question 56

_________, in the context of Hofstede's cultural dimensions, is the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these.

Answer 56

Uncertainty Avoidance ## Footnote Cultures with high uncertainty avoidance prefer structured environments.

Question 57

____ is the term used by Hofstede to describe 'a situation in which the dominant values in society are caring for others and the quality of life.'

Answer 57

Femininity ## Footnote Feminine cultures emphasize cooperation and quality of life.

Question 58

According to Trompenaars's relationship orientations, cultures with high _________ accord status based on age, gender, or social connections.

Answer 58

Ascription ## Footnote Ascription cultures value social hierarchies and connections.

Question 59

The three completed GLOBE phases explore the various elements of the dynamic relationship between _________ and ________.

Answer 59

The culture; organizational behavior ## Footnote The GLOBE project studies cultural influences on leadership and management.

Question 60

According to the GLOBE cultural variable results, which of the following countries were the most assertive?

Answer 60

Spain and the United States ## Footnote Assertiveness is a cultural dimension related to competitiveness and self-assertion.

Question 61

Culturally, an American can be expected to have a ____ handshake.

Answer 61

Firm ## Footnote A firm handshake is often associated with confidence in American culture.

Question 62

In the context of the priorities of cultural values of the US, Japan, and the Arab countries, the most important cultural value in the US is _____.

Answer 62

Freedom ## Footnote Freedom is a cornerstone of American cultural values.

Question 63

Which of Hofstede’s cultural dimensions measures the freedom to satisfy one’s natural needs and desires within a society?

Answer 63

Indulgence versus restraint ## Footnote This dimension assesses the degree of indulgence in a culture.

Question 64

According to the Dutch researcher Geert Hofstede, there are four original dimensions of culture. These are _________.

Answer 64

power distance, uncertainty avoidance, individualism, and masculinity. ## Footnote Hofstede's dimensions help analyze cultural differences in business.

Question 65

In the context of the dimensions of culture examined by Geert Hofstede, which of the following was an additional dimension that was identified in 1988?

Answer 65

time orientation ## Footnote Time orientation affects how cultures perceive time management and punctuality.

Question 66

In the context of Trompenaars's relationship orientations, a(n) _________ culture is one in which people are accorded status based on how well they perform their functions.

Answer 66

Achievement ## Footnote Achievement cultures emphasize meritocracy and performance.

Question 67

Which of the following fundamental questions is not included in the specific objectives of the GLOBE project?

Answer 67

How do attributes of societal and organizational cultures affect the behaviors of lower-level workers in an organization? ## Footnote The GLOBE project focuses on leadership and cultural dimensions rather than lower-level behavior.

Question 68

Firms with a(n) _________ predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

Answer 68

Polycentric ## Footnote Polycentric firms prioritize local responsiveness in their strategies.

Question 69

Firms with a _________ predisposition have a global culture.

Answer 69

geocentric ## Footnote Geocentric firms integrate global and local perspectives in their operations.

Question 70

In the context of the smartphone industry, which of the following helps Apple differentiate itself from its competitors?

Answer 70

Production innovation ## Footnote Apple focuses on innovative production techniques to maintain its competitive edge.

Question 71

The typical broad, self-deprecating ________ commercial amuses by mocking both the advertiser and consumer.

Answer 71

British ## Footnote British advertising often employs humor and irony in its campaigns.