International Business quizzes 1-4 PDF

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QUIZ 1. GLOBALIZATION 1. Some of the critics of globalization argue that the relentless pursuit of low-cost goods has led to - foster trade and boost cross-border investment 2. The opponents of globalization argue that freer trade and investment allows international companies to - close factories in high-wage-area developed nations and move them to lowwage developing countries 3. Some of the critics of globalization argue that the relentless pursuit of low-cost goods has led to - sending manufacturing jobs abroad 4. The power of the WTO that sets it apart from the GATT is its capability to – penalize offending nations and the power to settle trade disputes 5. two main forces that underlie the globalization of markets and production - Falling barriers to trade and investment and technological innovation 6. Why do companies typically produce goods and services abroad? - To internationalize their operation 7. The convergence in buyer preferences in countries around the world is referred to as globalization of markets 8. Companies that sell global products can standardize certain market activities in order to reduce marketing costs 9. The ____________ is an agency that was created to regulate fixed exchange rates and to enforce the rules of the international monetary system International Monetary Fund 10. Why do most international firms today support reasonable environmental laws? - They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services. 11. Globalization supporters argue that globalization increases wealth and efficiency in both developed and underdeveloped nations because of - openness to international trade increases national production 12. The globalization impact on the gap between rich and poor nations varies. One group of nations, such as China and India, is closing the gap with rich economies while a second group of poor countries is falling further behind, such as most countries in Africa. On closer inspection this is due to which one of the following? - The level of embracing globalization by developing countries 13. Multinational corporations are key players in international business and can be described as companies that - have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries 14. Which of the following is a major flaw of the original GATT? - It lacked the power to enforce trade rules. 15. Opposition groups allege that globalization empowers organizations erodes the sovereignty of a nation 16. The revision in 1994 of the GATT clearly defined intellectual property rights in order to - give more protection to copyrights, trademarks, and patents 17. Operating across borders and time zones could complicate the job of coordinating and controlling international business activities especially for smaller firms. To operate more efficiently, international companies tend to - accelerate the use of technology, email, video conferencing, the Internet, and intranets. 18. Globalization of markets can benefit companies that sell a global product and creates new market opportunities abroad especially if their home market - is small or becoming saturated 19. Which one of the following best describes the sourcing of key production inputs, such as raw materials or products, for assembly as well as the international outsourcing of services Globalization of production 20. A firm that produces a product with universal but seasonal appeal and is trying to level its income stream and reduce or eliminate wide variations in domestic sales can supplement its domestic sales with - international sales 21. A firm is less likely to offer a standardized product globally when - the benefit of serving the customers with an adapted product may outweigh the benefit of a standardized product 22. Japan's largest paper company, Nippon Seishi, has decided to own huge forests and corresponding processing facilities in Australia, Canada, and the U.S. so it can - guarantee a steady flow of its wood pulp

23. International business refers to any commercial transaction that crosses the borders of two or more nations 24. Globalization is the name we give to the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. 25. A company that adopts a global perspective and engages in international business

from or near its inception is known as – born global firm

QUIZ 2. Cross-Cultural Business 1. The belief that one's own ethnic group or culture is superior to that of others is referred to as – ethnocentricity 2. Which one of the following religions prohibits the consumption of pork and shellfish? – Judaism 3. While managers increasingly treat the world as a single, intercontinental marketplace, which one of the following helps managers avoid failure? - Eliminating the bias inherent in ethnocentric thinking 4. According to Hofstede, which one of the following cultural dimensions conveys the degree to which a culture accepts social inequality among its people? - Power distance 5. We usually refer to British and Indonesians cultures as if all Britons and Indonesians are culturally identical. This generalization is because we are conditioned to think in terms of national culture. 6. An important aspect of social structure is the way a culture divides its population according to status. Which one of the following terms refer to the process of ranking people into social layers or class? - Social stratification 7. Which one of the following methods will help managers develop a global mindset? - Being able to alter behavior when working with people from other cultures 8. Local culture is important for a company exploring the international market for its products. A great example of this is the export of luxury items, such as expensive jewelry and high-priced cars, to a wealthy upper class which factors significantly in which one of the following cultural dimensions? - High power distance 9. 9. The definition of __________ centers around the set of values, beliefs, and rules of society - culture 10. Which one of the following statements best describe values? - Values are the ideas, beliefs, and customs to which people are emotionally attached. 11. Which one of the following statements is TRUE about Hinduism? - The caste system is integral to the Hindu faith. 12. For Frito Lay to increase sales of its products in the U.S., the company had to appeal to the Latino market, which is a huge subculture of 46 million people. What did the company do? Introduced new brands from its Mexican subsidiary 13. ____________ is a group of people who share a unique way of life within a larger, dominant culture. - Subculture 14. According to Hofstede's Index, which country has the highest score on valuing hard work and promoting entrepreneurial risk taking, meaning that responsibility for poor business decisions is placed primarily on the individual in charge? - United States 15. The Kluckhohn-Strodtbeck Framework dimension asks whether a people are easily controlled and not to be trusted, or whether they can be trusted to act freely and responsibly. On this dimension, this framework determined that business dealings between Japanese companies are - based heavily on trust so as not to "lose face" 16. Celebrating the Dragon Boat Festival in China and the art of belly dancing in Turkey are examples of - folk customs. 17. American-born Thomas Kwan, who works for a health products company in Shanghai, China, says that a lot of expatriate managers fail in China because - the Chinese don't tell you what they think 18. Which one of the following terms describes a system of social stratification in which personal ability and actions determine social status and mobility? - Class system 19. You are working as an international manager for a major U.S. hotel chain in Russia. To provide good service for tourists, the local hotel staff put a sign in the hotel lobby that reads, "You are welcome to visit the cemetery where famous Russian composers, artists, and writers

20. 21. 22. 23. 24.

25.

are buried daily except Thursday." What is wrong with this sign's text? - Sign should be in Russian From the perspective of international business, one important aspect of nations with solid basic education systems is that they - tend not to invest in workers training __________ is the world's single largest religion. - Christianity Charging interest for money lent violates the law of which religion? - Islam French laws limit the use of English in product packaging and store front signs to - stem the English invasion and preserve the national culture Which one of the following describes a system of social stratification in which people are born into a social ranking, with no opportunity for social mobility and are prejudged by their social ranking in this system? - Caste system Countries with poorly educated populations attract the lowest paying manufacturing jobs. International companies searching for untapped markets or new factory locations should consider, among other factors, the - illiteracy rates

QUIZ 3 1. Which one of the following is an example of intellectual property? - Secret formula for making Coca-Cola 2. Industrial property is protected internationally under the ________ for the Protection of Industrial Property to which nearly 100 countries are signatories. - Paris Convention 3. Which one of the following multinational companies (cited by the text) had a case publicized by human rights and labor groups investigating charges of worker abuse? - Nike 4. In which type of economy is the majority of a nation's land, factories, and other economic resources privately owned, either by businesses or by individuals? - Market economy 5. Which one of the following statements BEST describes the theocratic legal system? - It is a legal tradition based on religious teachings. 6. In which one of the following economic systems does the government own a nation's land, factories, and other economic resources? - Centrally planned economy 7. There are now far fewer communist nations than there were two decades ago. According to your textbook, which two countries remain hardline communist nations? - Cuba and North Korea 8. People have a constitutional right to voice opinion freely and without fear in (a) ________ democracy 9. In which one of the following political systems do individuals govern without the support of the people, tightly control people's lives, and do not tolerate opposing viewpoints? Totalitarianism 10. Which one of the following is a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention? - Patent 11. Which one of the following philosophies of business ethics and social responsibility support the view that a company's sole responsibility is to maximize profits for its owners (or shareholders) while operating within the law? - Freidman view 12. _ refers to a country where the political system is under the control of totalitarian religious leaders that govern according to religious principles. - Theocratic totalitarianism 13. Which one of the following statements BEST describes antitrust regulations? - They are laws designed to provide consumers with a wide variety of products at fair prices. 14. The well-publicized Enron corporation case is an example of ________ - corruption 15. Which legal system reflects interpretation of the law with reference to these three characteristics: tradition, precedent, and usage? - Common law 16. Which one of the following contributed to the decline of planned economies? - failure to create economic value 17. In which one of the following economies are resources, such as land, factories, and other economic resources, equally split between private and government ownership? - Mixed economies 18. Which one of the following statements BEST describes political economy? - The study of how a country manages its affairs by using political, economic, and legal systems 19. Which one of the following statements about doing business in totalitarian countries is TRUE? - Laws regarding the resolution of contractual disputes are either vague or nonexistence.

20. Which one of the following multinational companies (cited by the text) works hard to operate in a socially responsible manner by trying to ease the plight of citizens in countries where their product is produced and sells fair trade products? - Starbucks 21. Which one of the following are features of totalitarianism? - Lack of and/or denying citizens constitutional guarantees; restricts political representations 22. According to an annual study made by Business Software Alliance of software piracy, business software piracy averages around 39 percent globally and costs business software makers nearly $52 billion annually. Which country has the highest rate of pirated software in the world? – Libya 23. The Nike "swoosh" and the name "Lexus" are protected by ________ law - trademark 24. Which one of the following statements about a market economy is TRUE? - The majority of a nation's land, factories, and other economic resources are privately owned. 25. Which form of political system provides full civil and property rights? - Democratic QUIZ 4 1. The economic transition process involves which one of the following key reform measures to promote economic development. - stabilizing the economy, reducing budget deficits, and expanding credit availability 2. Nationalization is more common than confiscation and expropriation. Likely candidates for nationalization include industries important to a nation's security and those that generate large revenues. In general, a government may nationalize an industry for which one of the following reasons? - To invest in sectors, such as public utilities, that private companies cannot afford 3. Confiscation, expropriation, and nationalization can have an impact on the economic development of the country. Which one of the following reflects the long-term impact on the country's economic development? - Slower economic development because of foreign investors being more reluctant to invest in the country 4. Which one of the following means incorporating risk into business strategies, often with the help of local officials? - Adaptation 5. The World Bank classifies countries' economic development according to __ - GNI 6. Countries that are highly industrialized and highly efficient, and whose people enjoy a high quality of life are called ___- developed countries 7. Which one of the following is a result of Russia's annexation of the Ukraine's peninsula of Crimea? - Political instability 8. Using gross product figures to compare production across countries does not account for the different cost of living in each country. Which one of the following indicators helps in adjusting the GDP to reflect the cost of living in eachcountry? - Purchasing power parity 9. Which one of the following means government takeover of an entire industry? Nationalization 10. Which of the following measures the quality of life in different countries? - HDI 11. International firms attempt to gather information that will help them predict and manage political risk. Which source should a company use to gain insight into local culture and politics? - Current employees who have worked in a country for an extended period 12. Which political risk is indicated when the laws of the foreign country stipulate a specified amount of goods or services be supplied by produce in the domestic market? - Local content requirements 13. Which one of the following factors is included in the assessment of political risk levels? military and religious involvement in politics 14. ________ forbids U.S. companies from bribing government officials or political candidates in other nations (except when a person's life is in danger) - Foreign Corrupt Practices Act 15. The governments of many countries in transition cannot afford all the investment required to develop and upgrade their infrastructure system, including highways, bridges, and rail networks. Where can these countries find financialresources? - Through outside sources such as the World Bank, IMF, and the Asian Development Bank 16. Which one of the following is counted as part of the gross domestic product (GDP)? - The value of all goods and services produced within the borders of the nation over a one-year period 17. ________ is the forced transfer of assets from a company to the government without compensation. - Confiscation

18. According to your textbook, ExxonMobil suspended production of liquid natural gas at its facility in Indonesia's Aceh province when separatist rebels targeted the complex with violence. What is the main origin of this conflict that forced Exxon to make this decision? People's resentment toward their own government 19. Which one of the following is the largest contributor to unemployment in China? - Migrant workers 20. According to your textbook, which one of the following sets of countries are classified as newly industrialized countries? - Brazil, India, China, and South Korea 21. ________ are the countries that have recently increased the portion of their national production and exports derived from industrial operations. - Newly industrialized countries 22. Insurance against political risk can be essential to companies entering risky business environments. Which type of insurance that insures U.S. companies that invest abroad against losses created by violent events, including war andterrorism, can also provide project financing? - Foreign Credit Insurance Association 23. Adaptation is one of the main methods of managing political risks. Which one of the following is a type of adaptation that allows an international business to assist the host country or region in improving the quality of life for locals? - Development assistance 24. Personal relationships, or guanxi, in China, are very important to successfully do business in China. Which one of the following characteristics of doing business with China is TRUE? - Cultural sensitivity 25. When local social unrest in a country causes disturbances that impair a company's ability to manufacture and distribute products, obtain materials and equipment, and threatens the lives of its employees, the company is facing a________ risk - conflict and violence....