Download MSB 430 FINAL EXAM QUESTIONS AND CORRECT ANSWERS . and more Exams International Business in PDF only on Docsity!
MSB 430 FINAL EXAM QUESTIONS AND CORRECT ANSWERS
What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations? -to assure that all countries get an equitable share of taxes from multinational enterprises -to attack problems jointly that one country acting alone cannot solve -to gain an advantageous division of labor -to be in compliance with United Nations' requirements - answer to attack problems jointly that one country acting alone cannot solve Which of the following best defines international business? It includes all business transactions involving two or more countries. It includes all economic flows between two or more countries. It includes all business transactions in countries other than your home country. It includes all private economic flows between two or more countries - answer It includes all business transactions involving two or more countries Which of the following has NOT been a major force increasing globalization in recent decades? decreasing prices of natural resources growing pressure from consumers increase in and expansion of technology liberalization of cross-border trade - answer decreasing prices of natural resources Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization? A large country may substantially increase its demand for the small country's production. A large country on which they depend may pressure them on political matters. A large company may exploit legal loopholes to avoid tax payments.
A large international firm may dictate its terms of operations in a small country - answer a large country may substantially increase its demand for the small country's production An example of a U.S. merchandise import is an automobile made in ________ and sold ________. Japan by a Japanese company; in the United States Japan by a U.S. company; outside the United States the United States by a Japanese company; in the United States the United States by a Japanese company; outside the United States - answer Japan by a Japanese company; in the United States Some key ________ factors in a company's international business external environment are its product strategy and access to resources. geographic behavioral political competitive - answer competitive 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 ________. licensing agreement portfolio investment turnkey operation contract joint venture - answer licensing agreement Which of the following statements would most likely be made by a SUPPORTER of globalization? Globalization encourages the adoption of uniform and superior standards for combating environmental problems. Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources.
Its suppliers follow an agglomeration strategy. Its foreign competitors have higher production costs than it has. None of its competitors have foreign production facilities. Its main competitor successfully opened a foreign plant. - answer its main competitor successfully opened a foreign plant The view that globalization is inevitable is most likely based on the belief that ________. technical advances in transportation and communications are highly persistent protesters against globalization will be persuaded to change their views people want more global homogeneity of cultures international organizations will replace nation-states - answer technical advances in transportation and communications are highly persistent 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? minimizing corporate risks increasing sales and profits acquiring new resources obtaining competitive advantages - answer increasing sales and profits Which of the following is NOT a common argument for the slowing of future globalization? Major countries have either ignored certain international treaties or have refused to sign them. Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people. The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments. Technological, transportation, and communication advances will decline in the near future.
- answer technological, transportation, and communication advances will decline in the
near future Which of the following languages has the most NATIVE speakers? Spanish Hindi English Mandarin - answer Mandarin U.S. companies monopolize much of the international entertainment media, which largely portrays U.S. products and lifestyles as glamorous and appealing. This situation would most likely be used as an example of ________. the spread of high-context cultures the stronger work ethic typical of developed countries cultural fragmentation cultural imperialism - answer cultural imperialism Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges? collectivism individualism anarchy democracy - answer individualism ________ people account for the largest percentage of global production. Spanish-speaking Mandarin-speaking
People in the port city of Jeddah were less culturally conservative than people in the interior of the country. The most likely reason for this is that ________. the coastal area has a culture with a higher uncertainty avoidance the coastal area is secular, whereas the interior of Saudi Arabia has a state religion people in the port cities have more contact with foreigners the coastal area has to trade with countries using different religious holidays - answer people in the port cities have more contact with foreigners Contact among countries brings about cultural change, which is a process called ________. cultural collision cultural diffusion polycentrism cultural imperialism - answer cultural diffusion According to the theory of success and reward expectation, the greatest enthusiasm for work generally occurs when there is a ________ certainty of success combined with a ________ reward for success compared to the reward for failure. high; high low; high low; low high; low - answer high; high Which of the following is the MOST accurate statement about culture? Cultural variables can easily be isolated from other factors such as economic and political conditions. Most cultural variables are superficial and can easily be influenced by environmental
factors. Although most cultural variables are universal, the forms these variables take differ from culture to culture. Within a culture, everyone responds to particular cultural variables the same way. - answer although most cultural variables are universal, the forms these variables take differ from culture to culture Ethnocentrism in international business refers to the ________. ethnic segmentation of marketing programs within countries belief that what works best at home should work best everywhere comparison of the Protestant ethic with other religious views study of group ethics and approaches to corporate social responsibility - answer belief that what works best at home should work best everywhere Raj, an engineer, works long hours and takes full responsibility for both his good and bad work performance. Raj most likely believes in ________. low power distance collectivism fatalism self-determination - answer self-determination Which of the following BEST describes a result of cultural collision in international business? A company implements practices that are less effective than intended. Foreign and domestic companies make adjustments for the local culture and legal environment.
The ________ of a country specifies the rules that regulate behavior, the processes by which laws are enforced, and the procedures used to resolve grievances. philosophical orientation political system legal system political philosophy - answer legal system A(n) ________ ideology is the system of ideas that expresses the goals, theories, and aims of how society should work. political legal economic technological - answer political 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. pluralistic collectivistic laissez-faire individualistic - answer collectivistic ________ political risks arise from political actions, such as public corruption or a partisan judicial system, that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done. Distributive
Procedural Catastrophic Systemic - answer porcedural Wharton Enterprises, a U.S. firm, manufactures small kitchen appliances. The firm has recently developed an innovative blender design that Wharton executives anticipate being very profitable. Currently, Wharton has production facilities in the United States and China. Wharton executives are trying to determine where the new product should be manufactured. Which of the following best supports a decision to manufacture the new product in the United States instead of China? A strategic marketing plan can be quickly developed in the United States. The United States is experiencing an economic recession. Intellectual property rights are strongly protected by U.S. patent laws. Contract enforcement is a simple process in the United States. - answer intellectual property rights are strongly protected by U.S. patent laws Which of the following ideas holds that a government should NOT interfere in business affairs? laissez-faire collectivism the rule of man the rule of man - answer lissez-faire All of the following countries have a totalitarian political system EXCEPT ________. Russia South Korea
Singapore - answer Singapore Which of the following would most likely be used in a totalitarian system to promote unconditional support for the official ideology? a parliamentary system privately owned media outlets state control of the education system a representative legislative body - answer state control of the education system In which of the following countries would business activity, given its status as a "not free" marketplace, be under the greatest government control? Brazil Pakistan India Vietnam - answer Vietnam All of the following are reasons piracy has occurred EXCEPT ________. the protection of intellectual property rights varies little from country to country in some cultures, people see little morally wrong in buying counterfeit goods some countries offer little protection for certain products technology allows copyrighted material to be reproduced cheaply without much loss of quality - answer the protection of intellectual property rights varies little from country to country ________ typically results when demand decreases and supply increases.
Deflation Chronic inflation Reflation Inflation - answer deflation Which of the following is most likely a true statement about the global economy since the 1980s? Emerging economies are adopting the principles and practices of free markets. Wealthy countries are exercising total control over emerging markets. Developing countries are losing growing shares of their foreign-exchange reserves. Socialist governments are intervening more in global exchanges. - answer emerging economies are adopting the principles and practices of free markets Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________. laws favoring sustainability state-run corporations standardized minimum wages minimal government intervention - answer minimal government intervention Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can most likely expect the Hong Kong government to ________. monitor market prices provide innovation incentives control natural resources
Consumers have choices of many substitutes for any given product. Many products are usually in short supply. The prices of goods and services frequently change. Quality of products and services tends to be consistent. - answer many products are usually in short supply Presently, which of the following countries is BEST characterized as a pure example of a command economy? Russia China Vietnam North Korea - answer North Korea To determine whether the standard of living within a country is rising or falling, economists would most likely use which of the following measures? degree of human development GNI growth rate per capita GNI purchasing power parity - answer per capita GNI According to the concept of green economics, measuring a country's economic performance should also take into account ________. cost-of-living increases market share ecological costs
population size - answer ecological costs Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering? Russia Chile Bangladesh Indonesia - answer Russia Some countries opt for a mixed economic system in the belief that although an economic system should aspire to achieve the efficiencies created by free markets, it must also support policies to ________. achieve low unemployment inequitably distribute wealth restrict economic growth destabilize poverty rates - answer achieve low unemployment Gross national income (GNI), the broadest measure of economic activity for a country, is defined as the ________. income generated in one country, regardless of who owns the productive assets total of all consumption and investment that takes place in a national economy total of all economic activity in one country less services, such as government administration, health services, and education income generated by both total domestic production and the international production activities of national companies - answer income generated by both total domestic production and the international production activities of national companies
humanism normativism relativism naturalism - answer normativism Which of the following is NOT a key stakeholder group that a company must work to satisfy in order to survive in a global environment? employees customers shareholders competitors - answer competitors Which of the following best supports the idea that MNEs should remain in countries that allow child labor? Most MNEs employ local managers to handle cultural differences. MNEs have a positive influence on government employment policies in most foreign countries. Many MNEs have substantially improved the working conditions of their foreign plants. MNEs are required to pay child workers more than local companies. - answer many MNEs have substantially improved the working conditions of their foreign plants Which of the following is NOT a likely reason for companies to act more ethically? Unethical or irresponsible behavior can negatively impact employee morale. Consumer boycotts may result from unethical corporate behavior. The company would like to raise its ranking on the Transparency International scale.
Irresponsible and unethical actions may lead to legal problems for MNEs. - answer the company would like to raise its ranking on the transparency international scale Which of the following is permitted by the Foreign Corrupt Practices Act? a payment to a customs official to clear legitimate merchandise a bribe paid by a U.S. firm operating in a foreign country that permits bribes to be paid a bribe paid by foreign firms operating in U.S. territories a payment to a foreign government official to influence a customs official - answer a payment to a customs official to clear legitimate merchandise According to Transparency International, companies from which of the following countries are more likely to pay bribes? Japan Belgium China Singapore - answer China Which stakeholder group primarily wants additional sales and increased productivity? customers shareholders government society at large - answer shareholders Why is the argument that "anything legal is ethical" most likely insufficient? Everything that is unethical is also illegal.
