Exam one GEB

All of the following are strategic imperatives that cause companies to globalize

1. The need to compete with rivals 2. desire to seek new markets 3. the need to acquire resources

Which of the following was created after World War II to reverse restrictions on international trade and investment that had occurred after World War I and during WW II?

GATT

Examples of intangible trade include all of the following EXCEPT

1. tourism 2. consulting 3. banking

The fact that different countries are abundant in different resources means businesses can always be profitable regardless of the nation where they are located.

false

Which international business activity specifically allows the use of intellectual property abroad?

licensing

According to the Chapter 1 lecture, all of the following are aspects of globalization?

1. economic 2. biological 3. Culture

Tangible trade includes

raw materials, cars, textiles

A recent study from the National Bureau of Economic Research finds a positive relationship between the installation of "fast internet" in sub-Saharan Africa and increased employment.

True

____ citizens spend the most on tourism worldwide, while ____ earns the most from tourism.

china, the US

According to the CAGE Model, if countries share a common currency, ______ distance will be ______.

administrative, smaller

According to the Chapter 1 lecture, countries topping the Global Talent and Competitiveness Index are less likely to be highly globalized.

false

Suppose French car company Peugeot Citroën buys a production facility in South Korea previously owned by South Korean car manufacturer Hyundai. This is an example of

FDI, but not FPI

Which of the following characteristics do the MOST globalized countries in the world share?

most are geographically small

Your boss wants to know which countries’ economies are currently growing the fastest and are known for their economic opportunities. It makes the most sense to look at countries in

The Big Ten

The global _____ is currently expanding at the fastest rate in history

middle class

Melanie works in the United States selling computer hardware to a company in Germany. Melanie engages in

merchandise exporting

According to the Chapter 1 lecture, which of the following is an environmental change that has facilitated globalization?

improved communication technology

All of the following are examples of international merchandise trade

Jean, a student in paris buys a bottle of california wine A floridian family buys conch from the bahamas Callie, an executive in NYC, buys a german audi

Globally, a(n) _____ in trade costs would _____ manufacturing trade significantly.

decrease, increase

The main difference between foreign direct investment and foreign portfolio investment is that FDI means one actively controls property or assets, while FPI is an asset purchase to increase one’s rate of return.

True

Countries in sub-Saharan Africa that rely on oil, minerals, or agriculture have seen growth rates higher than that of the region as a whole.

false

The average growth rate in sub-Saharan Africa is expected to exceed ____% by 2019-2020.

3.5

Which of the following regions depends the most heavily on the oil industry for its economic growth?

middle east

Which of the following is true regarding the Arctic?

1. Diplomatic tactics used in the region could set an example for other maritime conflicts 2. The Middle Powers have been effective in reducing tensions between the U.S. and Russia there 3. Shipping routes may soon be open year-round due to global warming

Asia’s Four Tigers?

singapore, taiwan, hong kong, south korea

Because the yen is viewed as a ______ currency, Japan’s exports have _____.

safe haven, fallen

All of the following have hindered growth in India

corruption, government red tape, poor infrastructure

Which nation is currently rapidly expanding investment in Africa?

China

Which of the following can be found in China today?

1. large FDI 2. human rights violations 3. economic growth

Which of the following can be found in China today?

human rights violations and economic grotwht

According to the Economist video about the history of the EU, why was the European Union originally created?

to prevent another war

The United Kingdom is a member of the European Union. (Although the "leaves" won the Brexit vote, the UK has not yet officially left the EU.) This means that the UK

can be an EU member and become a eurozone member

"Eurozone" is the term

describing the 19 members of the European Union that have adopted the euro as their national currency

Which region has the highest levels of income inequality?

Latin America

After World War II, Latin American countries used all of the following_______ to spur economic growth.

import substitution., subsidies, export promotion

The United States’ biggest trading partner (in terms of the value of goods and services traded bilaterally) is

China

_____ has the largest economy in North America; _____ has the highest per capita GDP in North America. (Hint: The PowerPoint lecture is more up-to-date than the textbook.)

USA, USA

In Russia, sistema refers to

the informal hierarchy through which wealth and power are distributed

The USSR’s economic policies _______ income inequality and _______ living standards.

reduced, lowered

Russia’s economy has greatly benefited from the recent drop in global oil prices.

false

Your boss is considering partnering with either an American company or a German company. He is leaning toward the American company because, he says, when he compares the two companies’ financial statements side-by-side, the German business looks weaker than the U.S. option. What do you advise him to do?

Advise taking a second, closer, look at the financial statements and factor in the different accounting methods that German firms use

GAAP accounting procedures are likely to be followed in all of the following countries

UK, US, India

Which U.S. law was passed to deal with accounting scandals that occurred in the early 2000s?

Sarbanes-Oxley Act

Which company was used as a dispute-resolution case study in the Chapter 3 lecture?

Facebook

_______ occurs when one jurisdiction will apply the laws of a second jurisdiction so long as the laws don’t violate the first jurisdiction’s laws.

the principle of comity

According to the latest "Doing Business" Report from the IFC/World Bank, which country is the most business-friendly in the world?

New Zealand

Because of the United States is heavily regulated, it is ranked in the middle of the "Doing Business" list published annually by the World Bank.

false

According to the World Bank’s "Doing Business" report, what is the relationship between business regulation and the labor market?

Better business regulations are associated with employment growth and lower unemployment

A(n) _____ limits commerce with a country.

Sanction

According to the Chapter 3 lecture, all of the following are positive effects that a multinational corporation may have in a host country

1. Taxes 2. Technology Transfer 3. Increased employmentt

ABC Steel Corp., an American company, operates facilities in Venezuela. The government seizes the company’s assets and provides ABC with no compensation. This is an example of

confiscation

What kind of legal system is found in Saudi Arabia?

religious law

Dawson Enterprises, a U.S. firm, conducts business in Saudi Arabia. The MNE recently experienced a business dispute with a local firm and was forced to meet the demands of the local firm without going through due process. Dawson’s experience most likely occurred because Saudi Arabia relies on ________.

religious law

Suppose you are in a country where the legal system has statutory laws. These are laws that are ____. You are most likely in ____.

Enacted by legislative action; the United States

When a government interferes with a company’s ability to move funds into and out of a country, this is known as

transfer risk

_____ risk occurs when a firm’s property is threatened through expropriation or confiscation.

Ownership

Which of the following is NOT an example of operating risk?

Venezuela confiscates the property of foreign oil companies

In China, which two legal concepts are currently at odds with one another?

rule of law, and rule by law

Which of the following would be the LEAST likely to help a country improve its technological environment?

minimum wage increase

Samuel Slater was a/an ______ who _______.

immigrant to the United States; stole intellectual property from the United Kingdom

Up to ____ percent of all information is communicated nonverbally.

90 percent

The world’s current lingua franca is

English

In Asian cultures, white often symbolizes

death

Lingua franca means ________.

common language

All of the following are part of the Middle East cultural cluster EXCEPT

Iran

According to Hall’s Approach, ____ countries tend to be higher context than ______ countries.

South European; North European

The country that Extech Corp. has decided to enter is one in which long-term relationships, cultural clues, and understanding and emotions are important in doing business. This country’s approach would best be described as a(n)_____.

high context culture

A passive goal-oriented society is LESS likely to be concerned with earning a lot of money.

True

When ____ is _____, people use past norms to focus on present behavior.

time orientation, short term

Suppose your business is operating in a country where your employees are stimulated by change, see ambiguity as an opportunity, and thrive on risk. Then according to Hofstede’s framework, you are in a(n) ________ culture.

uncertainty acceptance

Which of the following countries ranks very high on the Religious Diversity Index?

China

How is time valued differently in Anglo-Saxon countries vs. in Latin America?

Time is money" in Anglo-Saxon countries, while promptness is not as important in Latin Ameri

Which basic element of culture has the most significant effect on consumption trends throughout the year?

religion

All of the following countries are known to have higher levels of social mobility

US, Canada, Singapore

According to the Chapter 4 text, all of the following are basic elements of culture

values and attitudes communication social structure

The basic elements of culture include all of the following

Language Communication Religion

The world’s cultures are becoming ______ due to ______.

more similar; better communications technology

Nissan CEO Carlos Ghosn’s interactions with his employees worldwide demonstrated that his Japanese employees were more _____, while his Latin American and Latin European employees were more ________.

power respecting, power tolerant

Nissan CEO Carlos Ghosn’s interactions with his employees worldwide demonstrated that his Latin European and Latin American employees were more _____, while his Japanese employees were more ________.

power tolerant and power respecting

All of the following are steps in evaluating a company’s CSR efforts

1. Define specific goals 2. analyze resources devoted to goals 3. asses goal achievement

In the ______ approach to corporate social responsibility, there is close cooperation between the government and businesses.

Asian

Which of the following approaches to social responsibility is considered the MOST responsible?

Proactive

Social and development impact bonds are attractive new forms of financing societal improvement because

the government pays only if the programs funded by the bonds are successful

CSR is becoming more important for companies because

companies’ bad behavior is quickly and widely publicized on social media

In the "Age of Damage," social media has made it important for companies to be ______ so they can protect their reputation and mitigate bad publicity.

more transparent about their actions

According to the Chapter 5 lecture, which of the following companies has made successful CSR efforts in recent years?

Unilever

Guanxi is

mutual back-scratching

According to Sean Keenihan, president of the Australian-China Business Council in South Africa _____ is _____ important for doing business in China today.

Guanxi, less

What is the Russian equivalent of guanxi?

beat

Jack always likes to place orders with Sam’s Supply Company because the company sends him a gift certificate for $100 each holiday season. This is an example of which ethical issue?

conflict of interest

Ethical standards are universal and not usually affected by national cultures or customs.

false

Ethics do not vary across time or location.

false

According to the Chapter 5 lecture, all of the following products are at high risk of being produced by slavery

cocoa, textiles, fish, sugar cane

According to the video "Supply Chain Reaction," what is "the bottom dollar of the supply chain"?

Mines in indonesia

One of the reasons slave labor remains common in industries such as textiles is that

Suppliers sometimes outsource production to companies that act unethically

The _____ prohibits American firms and their employees from bribing foreign government officials to gain or retain business.

The Foreign Corrupt Practices Act

Which major EU member recently (within the last decade) passed a law making it illegal for companies to fail to prevent bribery or to engage in corruption anywhere in the world?

UK

The Alien Tort Claims Act of 1789 allows companies to be sued for human rights violations committed by foreign governments.

True