Midterm MGMT 4613- Aime

The merging of historically distinct and separate national markets into one huge global marketplace is known as

a) global market facilitation

b) cross-border trade

c) supranational market integration

d) the globalization of markets

d) the globalization of markets

Firms that are involved in international business tend to be

a) large

b) small

c) medium-sized

d) large, small, and medium-sized

d) large, small, and medium-sized

The sourcing of good and services from around the world to take advantage of national differences in the cost and quality of factors of production is called

a) economies of scale

b) the globalization of production

c) global integration

d) global sourcing

b) the globalization of production

Which organization is responsible for policing the world trading system?

a) the International Monetary Fund

b) the United Nations

c) the World Trade Organization

d) the World Bank

c) the World Trade Organization

Which of these is not a concern of anti-globalization protesters?

a) globalization raises consumer income

b) globalization contributes to environmental degradation

c) globalization is causing a loss of manufacturing jobs in developing countries

d) globalization implies a loss of national sovereignty

a) globalization raises consumer income

A political system that stresses the primacy of collective goals over individual goals is called

a) individualism

b) collectivism

c) a democracy

d) a market economy

b) collectivism

______ is found in states where political power is monopolized by a party according to religious principles.

a) tribal totalitarianism

b) right-wing totalitarianism

c) theocratic totalitarianism

d) communist totalitarianism

c) theocratic totalitarianism

In which type of economic system are all productive activities privately owned?

a) a mixed economy

b) a command economy

c) a representative economy

d) a market economy

d) a market economy

Which type of law is based on tradition, precedent, and custom?

a) civil law

b) common law

c) theocratic law

d) contract law

b) common law

Which is not a primary determinant of a nation's rate of economic development?

a) its political system

b) its economic system

c) its geography

d) its currency

d) its currency

Abstract ideas about what a group believes to be good, right, and desirable are called

a) norms

b) values

c) folkways

d) mores

b) values

The group is the primary unit of social organization in

a) Japan

b) the United States

c) Switzerland

d) Mexico

a) Japan

Which of the following is not characteristic of individualism?

a) individual achievement

b) low managerial mobility

c) low company loyalty

d) entrepreneurial behavior

b) low managerial mobility

_______ focuses on how society deals with the fact that people are unequal in physical and intellectual capabilities.

a) power distance

b) individualism versus collectivism

c) uncertainty avoidance

d) masculinity versus femininity

a) power distance

Which is not an area where multinational firms are concerned about ethics?

a) Human rights

b) Trade regulations

c) Environmental regulations

d) Corruption

b) Trade regulations

All of the following except ____ contribute to unethical behavior by international managers.

a) Decision-making processes

b) Leadership

c) Personal ethics

d) National culture

d) National culture

According to ________, a company's home-country standards of ethics are the appropriate ones to follow in foreign countries.

a) the righteous moralist

b) the naïve immoralist

c) the Friedman doctrine

d) cultural relativism

a) the righteous moralist

________ recognize that human beings have fundamental rights and privileges which transcend national boundaries and cultures.

a) Kantian ethics

b) Utilitarian approaches

c) Straw men

d) Rights theories

d) Rights theories

The _____ suggests that everyone is imagined to be ignorant of all his or her particular characteristics.

a) tragedy of the commons

b) veil of ignorance

c) code of ethics

d) the Universal Declaration of Human Rights

b) veil of ignorance

What is a company's formal statement of ethical priorities called?

a) Mission statement

b) Code of ethics

c) Code of values

d) Organizational culture

b) Code of ethics

If a country is characterized as having a single homogeneous culture, then its national culture also is

a homogenous and not a mosaic of subcultures T/F.

False

For the last 50 years, the volume of goods, services and investment crossing national boarders has consistently expanded faster than world output. T/F

True

Although the characteristics of the global economy have changed dramatically over the past 30 years, as late as the 1960s all of the following demographic characteristics were true except:

a. The US dominated the world ecomomy

b. Small, US entrepreneurial firms dominated the international business scene

c. The US dominated the world foreign direct investment picture

d. Roughly ½ the world was governed by centrally planned economies of the communists

b. Small, US entrepreneurial firms dominated the international business scene

Identify the correct statement concerning globalization:

a. It has been blamed for unemployment in developed nations, environmental degradation

b. It has created new threats for businesses accustomed to dominating their domestic

c. It is transforming industries and is highly welcomed by those who believed their jobs

d. According to most economists it is a very beneficial process where gains outweigh losses by a wide margin

It is transforming industries and is highly welcomed by those who believed their jobs

Which of the following statements regarding cross boarder trade and investments is not true?

a. " Protection" from foreign competitors has been, at times, demanded by the US.

b. Forecasts indicate a return to the restrictive trade policies of the 1920s and 30s

c. If trade barriers decline no further they will put a brake upon the globalization of both

d. It is not clear weather the political majority and the industrialized world favors further markets and production

reductions in trade barriers

b. Forecasts indicate a return to the restrictive trade policies of the 1920s and 30s

When a company "exports jobs" overseas, the company:

a. Helping domestic workers by pushing up wages

b. Increase the demand of qualified domestic workers

c. Taking advantage of lower wages in foreign markets

d. Deceiving thee supporters of globalization.

c. Taking advantage of lower wages in foreign markets

Most forecasts now predict:

a.A rapid decline in the share of world output accounted for by developing nations such as China, India and others

b.That if the current trends continue, the economy of India will approach that if Germany

c.That today's rich nations may account for more than 60% of the world economic activity by 2020

d.That today's developing nations may account for 38% of world economic activity by

b.That if the current trends continue, the economy of India will approach that if Germany

The growing integration of the world economy is:

a.Increasing in intensity of competition in a wide range of manufacturing and service industries.

b.Decreasing the intensity of competition on manufacturing industries and increasing the intensity of competition in services

c.Increasing in intensity of competition in manufacturing industries and decreasing the intensity of competition in services

d.Narrowing the scope of competition in a wide range of service, commodity and manufacturing industries

a.Increasing in intensity of competition in a wide range of manufacturing and service industries.

There is a strong relationship between economic freedom and economic growth? T/F

True

___ is consistent with the notion that an individual's right to do something may be restricted because it runs counter to "the good of society" or " the common good".

a.Entrepreneurship

b.Collectivism

c.Free enterprise

d.Capitalism

b.Collectivism

Democratic ideals and free market economies are consistent with:

a.Absolutism

b.Individualism

c.Dictatorships

d.Totalitarianism

b.Individualism

In a __ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.

a.Market

b.Private

c.Command

d.Mixed

d.Mixed

Social democracy:

a.As an ideology may prove to be less enduring than Communism

b.Has had an important influence in countries like India and Brazil

c.Has had NO influence in any democratic Western Nation

d.Had the greatest influence in Eastern European nation like Poland, Czechoslovakia and Hungary

b.Has had an important influence in countries like India and Brazil

The emphasis on individualism in the US results in all of the following disadvantages except:

a.Manager tend to develop good general skills but lack the company specific experience

b.Difficulty in building teams within and organization to perform collective tasks

c.Executives are not exposed to different ways of doing business

d.Difficulty to achieve cooperation both within a company and between companies

c.Executives are not exposed to different ways of doing business

These strata are typically defined on the basis of characteristics such as family, back ground, occupation, and income

a.Demographic strata

b.Economic strata

c.Social strata

d.Cultural strata

c.Social strata

Identify the incorrect statement pertaining to the caste system in India:

a.It was supported by Hinduism

b.Traditionally mobility between castes within an individual's lifetime is not possible

c.It has been completely uprooted from the country's social life

d.It has been abolished in India

c.It has been completely uprooted from the country's social life

The notion that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage was developed by:

a.David Hume

b.John Rawls

c.Jeremy Bentham

d.John Stuart Mill

b.John Rawls

It has been argued that the success of Japanese enterprises in the global economy has been based partly on all of the following except:

a.The diffusion of self-managing work teams

b.The close cooperation among different functions within Japanese companies

c.The high degree of managerial mobility between companies

d.The cooperation between a company and its suppliers on issues such as design, quality control and inventory reduction

c.The high degree of managerial mobility between companies

Hofstede's dimension of Confucian dynamism:

a.Captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition and reciprocation of gifts and favors

b.Focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities

c.Explores the relationships between individual and his/her followers

d.Looks at the relationship between gender and the ability to accept ambiguous situations

c.Explores the relationships between individual and his/her followers

International businesses cannot gain economic advantages by making payments to corrupt government officials. T/F

True

To guard against abuse of employment practices in other nations, multinationals should do all of the following except:

a.Establish minimal acceptable standards that safeguard the basic rights and dignity of employees

b.Adhere to working conditions of the host country if that are clearly inferior to those in a multinational's home country

c.Audit foreign subsidiaries and subcontractors on a regular basis to make sure established guidelines are met

d.Take action to correct unacceptable behavior

b.Adhere to working conditions of the host country if that are clearly inferior to those in a multinational's home country

Which of the following is not likely to lead to unethical behavior?

a.An organizational culture that de-emphasizes business ethics

b.A process that does not incorporate ethical considerations into business decision-making

c.A strong personal ethical code governing the conduct of an individual

d.Pressure from the parent company to meet unrealistic performance goals

c.A strong personal ethical code governing the conduct of an individual

Under the veil of ignorance, everyone is imagined to be ignorant of:

a.All of his or her particular characteristics

b.Fundamental rights and privileges

c.The moral worth of actions or practices

d.The minimum levels of morally acceptable behavior

a.All of his or her particular characteristics

Ethical dilemmas exist because all of the following reasons except:

a.Many real-world decisions are complex and difficult to frame

b.Decisions may involve first, second, and third order consequences that are hard to quantify

c. Doing the right thing or knowing what the right thing is might be is often far too easy

d.They are situations in which none of the available alternatives seem ethically acceptable

c. Doing the right thing or knowing what the right thing is might be is often far too easy

__ enables managers to walk away from a decision that is profitable, but unethical.

a.Noblesse oblige

b.Moral courage

c.Difference principle

d.Friedman doctrine

b.Moral courage