The protection of intellectual property rights is very similar from country to country.
Answer: FALSE
The protection of intellectual property rights is very similar from country to country.
Answer: FALSE
Answer: FALSE
The International Anti-Counterfeiting Coalition estimates that international trade in counterfeit products runs less than 5 percent of the value of total world trade.
The International Anti-Counterfeiting Coalition estimates that international trade in counterfeit products runs less than 5 percent of the value of total world trade.
Answer: FALSE
Intellectual property refers to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage.
Intellectual property refers to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage.
Answer: TRUE
International companies often must customize products to comply with local standards if they are to do business in a particular country.
International companies often must customize products to comply with local standards if they are to do business in a particular country.
Answer: TRUE
International law takes precedence over national laws in determining permissible practices in pricing, distribution, advertising, and promotion of products and services in a particular country.
International law takes precedence over national laws in determining permissible practices in pricing, distribution, advertising, and promotion of products and services in a particular country.
Answer: FALSE
Countries with a theocratic legal system encourage precise, detailed contracts whereas countries with a common legal system encourage shorter and less specific contracts.
Countries with a theocratic legal system encourage precise, detailed contracts whereas countries with a common legal system encourage shorter and less specific contracts.
Answer: FALSE
Laws on local business activities directly influence the operations of domestic and foreign companies in areas such as hiring and firing workers.
Laws on local business activities directly influence the operations of domestic and foreign companies in areas such as hiring and firing workers.
Answer: TRUE
The rule of law holds that governmental authority is legitimately exercised only in accordance with written, publicly disclosed laws that have been appropriately adopted and which are enforced in keeping with established procedure.
The rule of law holds that governmental authority is legitimately exercised only in accordance with written, publicly disclosed laws that have been appropriately adopted and which are enforced in keeping with established procedure.
Answer: TRUE
The rule of man, a practice that has been in play for millennia, presumes that the law is the will of the ruler, whether the king, czar, raj, or emperor.
The rule of man, a practice that has been in play for millennia, presumes that the law is the will of the ruler, whether the king, czar, raj, or emperor.
Answer: TRUE
A civil law system anchors itself in the wisdom of daily experience or, more intellectually, great spiritual or philosophical traditions.
A civil law system anchors itself in the wisdom of daily experience or, more intellectually, great spiritual or philosophical traditions.
Answer: FALSE
A common law system is based on tradition, judge-made precedent, and usage in which the courts assign a preeminent position to existing case law to guide dispute resolution.
A common law system is based on tradition, judge-made precedent, and usage in which the courts assign a preeminent position to existing case law to guide dispute resolution.
Answer: TRUE
The political system of a country refers to the laws that regulate actions, along with the processes by which those laws are enforced and by which redress for grievances is acquired.
The political system of a country refers to the laws that regulate actions, along with the processes by which those laws are enforced and by which redress for grievances is acquired.
Answer: FALSE
Multilateral development banks encourage development in risky environments through financial incentives.
Multilateral development banks encourage development in risky environments through financial incentives.
Answer: TRUE
Political risk insurance is more likely to be purchased by MNEs that apply an active approach to political risk management.
Political risk insurance is more likely to be purchased by MNEs that apply an active approach to political risk management.
Answer: FALSE
Managers who take an active approach to political risk management are likely to rely on statistical modeling to quantify the precise degree of political risk.
Managers who take an active approach to political risk management are likely to rely on statistical modeling to quantify the precise degree of political risk.
Answer: TRUE
Civil conflict, tax discrimination, weak legal systems, and terrorist actions are political risks faced by MNEs operating in foreign countries.
Civil conflict, tax discrimination, weak legal systems, and terrorist actions are political risks faced by MNEs operating in foreign countries.
Answer: TRUE
The Washington Consensus promotes democracy, freedom, the rule of man, and human rights.
The Washington Consensus promotes democracy, freedom, the rule of man, and human rights.
Answer: FALSE
According to EIU research, 37% of the world's populations live in full democracies.
According to EIU research, 37% of the world's populations live in full democracies.
Answer: FALSE
Research indicates that democracy is declining around the world and that totalitarian regimes are increasing.
Research indicates that democracy is declining around the world and that totalitarian regimes are increasing.
Answer: TRUE
The Third Wave of Democratization was partially triggered by improved communication systems.
The Third Wave of Democratization was partially triggered by improved communication systems.
Answer: TRUE
Totalitarian countries are favored by MNEs because state governments typically favor foreign investors over local companies.
Totalitarian countries are favored by MNEs because state governments typically favor foreign investors over local companies.
Answer: FALSE
Totalitarianism is a political ideology that typically involves constant indoctrination of the population by agents of the government to eliminate dissent.
Totalitarianism is a political ideology that typically involves constant indoctrination of the population by agents of the government to eliminate dissent.
Answer: TRUE
A democracy grants the voting citizenry the power to alter the laws and structures of government.
A democracy grants the voting citizenry the power to alter the laws and structures of government.
Answer: TRUE
The fundamental element of democracy is justice.
The fundamental element of democracy is justice.
Answer: FALSE
Democracy and totalitarianism fall on the same end of the political spectrum.
Democracy and totalitarianism fall on the same end of the political spectrum.
Answer: FALSE
A political ideology is the collection of ideas that expresses the goals, theories, and aims that constitute a sociopolitical program.
A political ideology is the collection of ideas that expresses the goals, theories, and aims that constitute a sociopolitical program.
Answer: TRUE
As exemplified in China, the government in a collectivist society is highly connected to and interdependent with business.
As exemplified in China, the government in a collectivist society is highly connected to and interdependent with business.
Answer: TRUE
In some collectivist systems, such as Venezuela, politicians control media outlets and limit individual property rights in order to acquire power in the business environment.
In some collectivist systems, such as Venezuela, politicians control media outlets and limit individual property rights in order to acquire power in the business environment.
Answer: TRUE
Societies that emphasize collectivism place the interests of individuals over the interests of the state.
Societies that emphasize collectivism place the interests of individuals over the interests of the state.
Answer: FALSE
The term collectivism refers to a system that stresses the primacy of societal goals over individual goals.
The term collectivism refers to a system that stresses the primacy of societal goals over individual goals.
Answer: TRUE
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 U.S. and China. Wharton executives are trying to determine where the new product should be manufactured. Which of the following questions is most relevant to the decision?
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 U.S. and China. Wharton executives are trying to determine where the new product should be manufactured. Which of the following questions is most relevant to the decision?
A) What selection procedures would be best in China?
B) Should expatriates or locals manage the Chinese facility?
C) How can the firm guard against counterfeiting in China?
D) How would China's individualistic system affect the firm?
Answer: D
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 U.S. 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 U.S. instead of China?
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 U.S. 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 U.S. instead of China?
A) Intellectual property rights are strongly protected by U.S. patent laws.
B) A strategic marketing plan can be quickly developed in the U.S.
C) Contract enforcement is a simple process in the U.S.
D) The U.S. is experiencing an economic recession.
Answer: A
Harmon Clothing has a production facility located in Venezuela. Recently, Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government. Which type of political risk is Harmon most likely experiencing?
Harmon Clothing has a production facility located in Venezuela. Recently, Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government. Which type of political risk is Harmon most likely experiencing?
A) catastrophic
B) distributive
C) procedural
D) systemic
Answer: D
Logan Electronics has a production facility in Bolivia. Recently, the firm was taxed at a significantly higher rate than a local electronics company. Which type of political risk is Logan most likely experiencing?
Logan Electronics has a production facility in Bolivia. Recently, the firm was taxed at a significantly higher rate than a local electronics company. Which type of political risk is Logan most likely experiencing?
A) systemic
B) procedural
C) distributive
D) catastrophic
Answer: B
Garnet Footwear suffered significant financial losses and had to close its foreign operations. The dissolution process took six months and cost four percent of the firm's value. Where were Garnet's foreign operations most likely located?
Garnet Footwear suffered significant financial losses and had to close its foreign operations. The dissolution process took six months and cost four percent of the firm's value. Where were Garnet's foreign operations most likely located?
A) Ecuador
B) France
C) Japan
D) China
Answer: C
The vigor of IPR protection is highly related to a country's stage of ________.
The vigor of IPR protection is highly related to a country's stage of ________.
A) economic development
B) cultural heterogeneity
C) natural resource development
D) standardization of patent regulations
Answer: A
All of the following are reasons piracy has occurred EXCEPT ________.
All of the following are reasons piracy has occurred EXCEPT ________.
A) technology allows copyrighted material to be reproduced cheaply without much loss of quality
B) some countries offer little protection for certain products
C) in some cultures, people see little morally wrong in buying counterfeit goods
D) the protection of intellectual property rights varies little from country to country
Answer: D
Which of the following statements referring to intellectual property rights and violations is INCORRECT?
Which of the following statements referring to intellectual property rights and violations is INCORRECT?
A) Richer countries claim looser regulation of intellectual property rights will hinder innovation.
B) Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO).
C) The International Anti-Counterfeiting Coalition estimates international trade in counterfeit products at $600 billion a year.
D) Developing markets claim tougher regulation of IPRs will slow, if not halt, their economic development.
Answer: B
Most counterfeit goods are made in markets in which ________ is the basis of the legal system.
Most counterfeit goods are made in markets in which ________ is the basis of the legal system.
A) the rule of man
B) the rule of law
C) religious doctrine
D) corporate precedent
Answer: A
ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail. Which of the following legal conventions does ION most likely have?
ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail. Which of the following legal conventions does ION most likely have?
A) intellectual property right
B) trademark credential
C) patent certificate
D) TRIPS permit
Answer: A
______ refer(s) to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage.
______ refer(s) to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage.
A) Proprietary goods
B) Exclusive ownership
C) Restrictive goods
D) Intellectual property
Answer: D
Countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to ________.
Countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to ________.
A) maximize product safety
B) ensure a cultural fit
C) favor domestic companies
D) relieve production pressures on local companies
Answer: C
Local content regulations are primarily intended to ________.
Local content regulations are primarily intended to ________.
A) address cultural differences between local employees and expatriates
B) encourage MNEs to increase production activities in a country
C) address contract negotiation difficulties
D) assess local tax rates on MNEs
Answer: B
Elite Manufacturing seeks a foreign location with a highly favorable business environment and a comprehensive legal code. Which of the following countries would be most suitable for Elite?
Elite Manufacturing seeks a foreign location with a highly favorable business environment and a comprehensive legal code. Which of the following countries would be most suitable for Elite?
A) Japan
B) Canada
C) Singapore
D) United Kingdom
Answer: C
Countries with a ________ legal system tend to encourage precise, detailed contracts, whereas countries with a ________ legal system tend to encourage shorter and less specific contracts.
Countries with a ________ legal system tend to encourage precise, detailed contracts, whereas countries with a ________ legal system tend to encourage shorter and less specific contracts.
A) theocratic; mixed
B) common; civil
C) civil; customary
D) customary; common
Answer: B
Premium Manufacturing is planning to expand operations overseas. Executives at the firm are considering a number of different countries. Which of the following countries would most likely have the lowest start-up costs?
Premium Manufacturing is planning to expand operations overseas. Executives at the firm are considering a number of different countries. Which of the following countries would most likely have the lowest start-up costs?
A) India
B) China
C) Japan
D) Guatemala
Answer: B
Rockwall Enterprises is planning to expand the firm by establishing operations outside of the U.S. In which of the following countries would Rockwall most likely be able to establish operations most quickly?
Rockwall Enterprises is planning to expand the firm by establishing operations outside of the U.S. In which of the following countries would Rockwall most likely be able to establish operations most quickly?
A) Japan
B) Brazil
C) Germany
D) Australia
Answer: D
Skinner Electronics plans to expand into foreign markets. Top executives want the firm to focus only on locations where the rule of law prevails. Which of the following should most likely be considered by Skinner?
Skinner Electronics plans to expand into foreign markets. Top executives want the firm to focus only on locations where the rule of law prevails. Which of the following should most likely be considered by Skinner?
A) wealthier, westernized countries
B) developing, non-Western countries
C) emerging economies experiencing rapid growth
D) countries inclined toward totalitarian-style government
Answer: A
The largest percentage of nations, within a contiguous geographic region, that adhere to the rule of man are located in ________.
The largest percentage of nations, within a contiguous geographic region, that adhere to the rule of man are located in ________.
A) Central Africa
B) Northern Africa
C) Eastern Europe
D) Central America
Answer: A
Which of the following is most likely a true statement regarding the rule of law? The rule of law is a hallmark of ________.
Which of the following is most likely a true statement regarding the rule of law? The rule of law is a hallmark of ________.
A) a totalitarian government
B) a democratic government
C) societies that place ultimate power in the hands of one person
D) countries that are considered "partly free"
Answer: B
The pushback against democracy has powered a rise in totalitarianism, a situation that is likely to include which of the following?
The pushback against democracy has powered a rise in totalitarianism, a situation that is likely to include which of the following?
A) increasing adoption of the principles of the rule of law
B) growing demands worldwide for greater fairness and justice in legal proceedings
C) increasing adoption of the principles of the rule of man
D) suppression of state-control in the direction of legal activities
Answer: C
A U.S. firm with manufacturing facilities in Nigeria will most likely be faced with a ________ legal system.
A U.S. firm with manufacturing facilities in Nigeria will most likely be faced with a ________ legal system.
A) civil
B) common
C) customary
D) mixed
Answer: D
A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution.
A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution.
A) theocratic
B) common
C) customary
D) civil
Answer: B
A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.
A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.
A) customary
B) common
C) civil
D) theocratic
Answer: C
Ian, a financial manager, is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office. With which type of legal system will Ian most likely have to deal with in Germany?
Ian, a financial manager, is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office. With which type of legal system will Ian most likely have to deal with in Germany?
A) mixed
B) common
C) civil
D) theocratic
Answer: C
Which of the following is NOT a component of modern legal systems?
Which of the following is NOT a component of modern legal systems?
A) constitutional law
B) criminal law
C) commercial law
D) private law
Answer: D
A system of ________ law sets the framework for the system of government and defines the authority and procedure of political bodies to establish laws and regulations.
A system of ________ law sets the framework for the system of government and defines the authority and procedure of political bodies to establish laws and regulations.
A) criminal
B) constitutional
C) civil
D) commercial
Answer: B
The ________ of a country specifies the rules that regulate behavior, the processes by which laws are enforced, and the procedures used to resolve grievances.
The ________ of a country specifies the rules that regulate behavior, the processes by which laws are enforced, and the procedures used to resolve grievances.
A) political system
B) political philosophy
C) philosophical orientation
D) legal system
Answer: D
Barkley Enterprises, a U.S. manufacturer, received assistance from the Overseas Private Investment Corporation when it expanded operations into Saudi Arabia. Which of the following types of support did Barkley most likely receive from OPIC?
Barkley Enterprises, a U.S. manufacturer, received assistance from the Overseas Private Investment Corporation when it expanded operations into Saudi Arabia. Which of the following types of support did Barkley most likely receive from OPIC?
A) financial capital
B) cultural training
C) legal guidance
D) political risk insurance
Answer: D
Which of the following statements about approaches to political risk management is NOT true?
Which of the following statements about approaches to political risk management is NOT true?
A) Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.
B) Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk.
C) Active political risk management assumes that positive and negative political events in any country are neither independent nor random events.
D) Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect.
Answer: A
Select the correct order, going from low to high total impact on an MNE, of the following types of political risk: (1) procedural political risks, (2) systemic political risks, (3) distributive political risks, (4) catastrophic political risks.
Select the correct order, going from low to high total impact on an MNE, of the following types of political risk: (1) procedural political risks, (2) systemic political risks, (3) distributive political risks, (4) catastrophic political risks.
A) 3, 2, 1, 4
B) 1, 2, 3, 4
C) 2, 3, 4, 1
D) 2, 1, 3, 4
Answer: D
_____ 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.
_______ 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.
A) Systemic
B) Procedural
C) Catastrophic
D) Distributive
Answer: B
Which of the following types of political risks often is caused by ethnic conflict or civil disorder and includes those random political developments that adversely affect the operations of all companies in a country?
Which of the following types of political risks often is caused by ethnic conflict or civil disorder and includes those random political developments that adversely affect the operations of all companies in a country?
A) systemic political risk
B) procedural political risk
C) catastrophic political risk
D) distributive political risk
Answer: C
_______ is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return.
_______ is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return.
A) Governmental risk
B) Operating risk
C) Transaction risk
D) Political risk
Answer: D
Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?
Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?
A) Totalitarian regimes delivered acceptable economic progress to their populations.
B) Economic advances caused contentment among the working class and minimized the need to push for democratic reforms.
C) Many groups were able to successfully challenge the legitimacy of democratic systems.
D) Information and communications technologies broke down the ability of the state to control access to uncensored information, especially that from foreign sources.
Answer: D
The march toward greater political freedoms and more expansive civil liberties, beginning in the 1970s, strongly fueled a sense of ________.
The march toward greater political freedoms and more expansive civil liberties, beginning in the 1970s, strongly fueled a sense of ________.
A) less predictable operating conditions for companies
B) the inevitability of democracy
C) different rules for domestic versus international competition
D) weaker property rights
Answer: B
Recently, the Economist Intelligence Unit investigated the status of democracies around the globe. Relying on 60 indicators that focus on the performance of free elections, civil liberties, government functioning, political participation, and political culture in a country, the study found that ________.
Recently, the Economist Intelligence Unit investigated the status of democracies around the globe. Relying on 60 indicators that focus on the performance of free elections, civil liberties, government functioning, political participation, and political culture in a country, the study found that ________.
A) almost all of the world's democracies are full democracies
B) nearly half of the world's democracies qualify as "full" or "flawed" democracies
C) less than a quarter of the countries studied are outright authoritarian regimes
D) most democracies are hybrid political systems that share theocratic and totalitarian characteristics
Answer: B
Which of the following was a notable trend in political systems during the second half of the 20th century and beginning of the 21st century?
Which of the following was a notable trend in political systems during the second half of the 20th century and beginning of the 21st century?
A) A wave of democratic transformations occurred as countries around the world moved away from totalitarian systems.
B) A wave of theocratic revolutions occurred as people around the world looked to spirituality to guide them.
C) Socialistic revolutions swept the world as countries aspired toward greater social justice.
D) A totalitarian revolution swept the world as people looked to strong state leadership in uncertain times.
Answer: A
In which of the following countries would business activity, given its status as a "not free" marketplace, be under the greatest government control?
In which of the following countries would business activity, given its status as a "not free" marketplace, be under the greatest government control?
A) Vietnam
B) Pakistan
C) India
D) Brazil
Answer: A
Which of the following is most likely a characteristic of a "partly free" country, such as Guatemala, Kenya, or Malaysia?
Which of the following is most likely a characteristic of a "partly free" country, such as Guatemala, Kenya, or Malaysia?
A) strict religious constraints
B) fair election procedures
C) respect for civil liberties
D) weak rule of law
Answer: D
All of the following countries have a totalitarian political system EXCEPT ________.
All of the following countries have a totalitarian political system EXCEPT ________.
A) China
B) Russia
C) South Korea
D) Saudi Arabia
Answer: C
Under the ________ form of totalitarianism, the regime confines itself to political control of the state. It does not regulate the economic and social structure of society.
Under the ________ form of totalitarianism, the regime confines itself to political control of the state. It does not regulate the economic and social structure of society.
A) fascist
B) communist
C) theocratic
D) authoritarian
Answer: D
Which of the following would most likely be used in a totalitarian system to promote unconditional support for the official ideology?
Which of the following would most likely be used in a totalitarian system to promote unconditional support for the official ideology?
A) privately owned media outlets
B) a parliamentary system
C) state control of the education system
D) a representative legislative body
Answer: C
In a totalitarian political system, ________.
In a totalitarian political system, ________.
A) political power resides with the citizens of the country
B) governments direct most economic activity but few social ones
C) an individualistic outlook shapes political debate and policy formation
D) one agent monopolizes political power
Answer: D
In a democracy, ________.
In a democracy, ________.
A) citizens have the right to participate in the decision-making process
B) the opportunity to truly participate in the political process is restricted to a select few
C) the court system is directly supervised by the political system
D) the rights of the individual are merged with the state
Answer: A
________ refers to a political system in which government is organized by and accountable to the people.
________ refers to a political system in which government is organized by and accountable to the people.
A) Totalitarianism
B) Fascism
C) Socialism
D) Democracy
Answer: D
Which of the following statements best describes a pluralistic society?
Which of the following statements best describes a pluralistic society?
A) Multiple segments of society adhere to the same political philosophy.
B) Two dominant political parties rule local and federal governments.
C) Different ideologies are held by different segments of society.
D) Various ethnic groups belong to the official political party.
Answer: C
A(n) ________ ideology is the system of ideas that expresses the goals, theories, and aims of how society should work.
A(n) ________ ideology is the system of ideas that expresses the goals, theories, and aims of how society should work.
A) technological
B) economic
C) legal
D) political
Answer: D
The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it.
The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it.
A) capitalism
B) socialism
C) freedom
D) liberalism
Answer: C
In a practical sense, the term political system is meant to signify the ________.
In a practical sense, the term political system is meant to signify the ________.
A) organization of military power in a country
B) working government in a country
C) philosophical orientations in a country
D) cultural values in a country
Answer: B
Although there are different views about the purpose of a political system, most analysts agree that an essential task of a political system is to ________.
Although there are different views about the purpose of a political system, most analysts agree that an essential task of a political system is to ________.
A) integrate the different elements of a society into a functioning unit
B) allocate scarce resources among competing users
C) develop reasonable attitudes and outlooks within the population
D) protect individuals within the country from foreign threats
Answer: A
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.
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.
A) individualistic
B) collectivistic
C) pluralistic
D) laissez-faire
Answer: B
Which of the following countries has a collectivist orientation?
Which of the following countries has a collectivist orientation?
A) Canada
B) Australia
C) Japan
D) Netherlands
Answer: C
In a country that emphasizes collectivism, ________.
In a country that emphasizes collectivism, ________.
A) the interests of the individual are more important than the interests of the state
B) one person or political party exercises absolute control over the political and economic systems
C) the needs of society and the needs of individuals are treated as equally important
D) the needs of society take precedence over individual freedoms
Answer: D
Proponents of ________ argue that individual interests are not as important as the welfare of the group.
Proponents of ________ argue that individual interests are not as important as the welfare of the group.
A) pluralism
B) capitalism
C) collectivism
D) individualism
Answer: C
The principle that an individual has the freedom to pursue his or her interests is called ________.
The principle that an individual has the freedom to pursue his or her interests is called ________.
A) socialism
B) totalitarianism
C) individualism
D) collectivism
Answer: C
Which of the following ideas holds that a government should NOT interfere in business affairs?
Which of the following ideas holds that a government should NOT interfere in business affairs?
A) collectivism
B) laissez-faire
C) the rule of man
D) pluralism
Answer: B
Which of the following countries has an individualistic orientation?
Which of the following countries has an individualistic orientation?
A) Venezuela
B) Japan
C) Egypt
D) Canada
Answer: D
Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?
Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?
A) intellectual property violations
B) environmental hazards
C) child labor violations
D) embezzlement
Answer: A
Which of the following is a true statement about China?
Which of the following is a true statement about China?
A) The Chinese government's shift from communism to capitalism has led to an increase in FDI.
B) China attracts FDI because the government has eliminated elaborate bureaucracies.
C) The Chinese government manipulates market activities for political purposes.
D) China lacks an educated pool of employees due to slowly developing industrialization.
Answer: C
Which one of the following is not an aspect which has to be considered for a make-or-buy decision?
Which one of the following is not an aspect which has to be considered for a make-or-buy decision?
a. Time
b. Costs
c. Liquidity
d. Quantity
Answer: D
How is the assessment process/ method called, whereby alternatives can be evaluated and compared by several different criteria?
How is the assessment process/ method called, whereby alternatives can be evaluated and compared by several different criteria?
a. Surveys
b. Cost-benefit analysis
c. Expert judgements
d. Reviews
Answer: B
Which one of the following is not an external factor, which can't be changed in short term?
Which one of the following is not an external factor, which can't be changed in short term?
a. Services
b. Legislation
c. Technological dynamics
d. Competitive relationships
Answer: A
The selection process of software comprises the steps
The selection process of software comprises the steps
a. pre-selection, detailed selection and final selection.
b. post-selection, detailed selection and final selection.
c. pre-selection, detailed selection and closing selection.
d. pre-selection, definition of selection criteria and final selection.
Answer: A
Which one of the following is not an internal factor, which can't be changed in short term?
Which one of the following is not an internal factor, which can't be changed in short term?
a. Information technology
b. Legal structure and ownership
c. Customer structure
d. Manufacturing technology
Answer: C
BPM Guidelines are divided into
BPM Guidelines are divided into
a. Guidelines for system modeling and guidelines for process controlling.
b. Guidelines for process modeling and guidelines for process creation.
c. Guidelines for process modeling and guidelines for process activation.
d. Guidelines for process modeling and guidelines for process controlling.
Answer: D
The two different approaches to identify business processes are
The two different approaches to identify business processes are
a.the iterative process identification and the static process identification.
b.the bottom-down process identification and the top-up process identification.
c.the general process identification and the individual process identification.
d.the detailed process identification and the overview process identification.
Answer: C
The reference models can be described on the following different levels of detail:
The reference models can be described on the following different levels of detail:
a. Core business model, Rough model and Detailed process description.
b. Detailed model, Rough model and Detailed process description.
c. Overview model, Rough model and Detailed process description.
d. Overview model, Rough model and support process description.
Answer: C
A Key Performance Indicator has to be described by the following elements at minimum:
A Key Performance Indicator has to be described by the following elements at minimum:
a. Name, Description, Interpretation, Calculation Formula, Result
b. Name, Description, Interpretation, Calculation Formula, Unit of Measure
c. Name, Description, Interpretation, Stakeholder, Unit of Measure
d. Name, Description, Interpretation, Cockpit, Unit of Measure
Answer: B
ESIA is a simple rule for the design of processes and means
ESIA is a simple rule for the design of processes and means
a.Eliminate, Simplify, Integrate and Allocate.
b.Eliminate, Store, Integrate and Automate.
c.Export, Simplify, Integrate and Automate.
d.Eliminate, Simplify, Integrate and Automate.
Answer: D
Common model types of the organizational structure are the
Common model types of the organizational structure are the
a.Organization(al) Chart, Role-Dictionary, Role Description, Function(al) Matrix and Value-Added Chain Diagram.
b.Organization(al) Chart, Role-Dictionary, Role Description, Function(al) Matrix and Competence-Dictionary.
c.Organization(al) Chart, Employee-Dictionary, Employee Description, Function(al) Matrix and Competence-Dictionary.
d.Organization(al) Chart, Person-Dictionary, Person Description, Function(al) Matrix and Competence-Dictionary.
Answer: B
To model one specific business process in detail, one can use the
To model one specific business process in detail, one can use the
a.Business Process Model and Notation (BPMN) or the Process Map.
b.Business Process Model and Notation (BPMN) or the extended Event-Driven Process Chain (eEPC).
c.Value-Added Chain Diagram (VACD) or the extended Event-Driven Process Chain (eEPC).
d.Value-Added Chain Diagram (VACD) or the Business Process Model and Notation (BPMN).
Answer: B
The different model types can be subdivided into model types for
The different model types can be subdivided into model types for
a.Business Architecture, Information Architecture, System Architecture and Technology Architecture.
b.Business Architecture, Finance Architecture, System Architecture and Technology Architecture.
c.Data Architecture, Information Architecture, System Architecture and Technology Architecture.
d.Business Architecture, Modeling Architecture, System Architecture and Technology Architecture.
Answer: A
A process map
A process map
a.models only the processes of a company with an added-value.
b.models a specific business process in detail.
c.gives an overview of the existing processes in a company.
d.is used to model system processes.
Answer: C
Operational purposes for process models are, among others,
Operational purposes for process models are, among others,
a.Banking, Project Management, Simulation, Process-Oriented Reorganisation and Benchmarking.
b.Knowledge Management, Software Development, Simulation, Process-Oriented Reorganisation and Benchmarking.
c.Knowledge Management, Software Development, Case Studies, Process-Oriented Reorganisation and Benchmarking.
d.Knowledge Management, Project Management, Simulation, Process-Oriented Reorganisation and Benchmarking.
Answer: B
The CPO is responsible for the following tasks, except:
The CPO is responsible for the following tasks, except:
a. The determination of the actual status of a company (AS-IS) in the field of BPM.
b. The management of the strategic BPM process (sBPM).
c. The definition, assessment and company-wide development of the BPM skills.
d. The coordination of the BPM committees.
Answer: A
Each business process has exactly one unique
Each business process has exactly one unique
a. Business Process Owner
b. Business Process Employee
c. Business Process Manager
d. Business Process Sponsor
Answer: A
The BPM Council is responsible for
The BPM Council is responsible for
a.the implementation and support of business process optimization projects, as well as for the support for current monitoring, control and continuous improvement of the BP operation.
b.the strategic process planning and implementation, as well as for the strategic process controlling.
c.all elements of the normative and strategic BPM, in particular for the BPM governance and the BPM enablement.
d.tasks of the process coordination between the line organization and the process organization.
Answer: B
The difference between the Control and Program Level and the Local Implementation Level of the BPM is, that
The difference between the Control and Program Level and the Local Implementation Level of the BPM is, that
a. the Control and Program Level is responsible for the strategic BPM and the Local Implementation Level is responsible for the operational BPM.
b. the Control and Program Level is responsible for the operational BPM and the Local Implementation Level is responsible for the strategic BPM.
c. the Control and Program Level is responsible for the adoption of BPM Governance and the Local Implementation Level is responsible for the adoption of the BPM Enablement Structures.
d. the Control and Program Level is responsible for the adoption of BPM Enablement Structures and the Local Implementation Level is responsible for the adoption of the BPM Governance.
Answer: A
All of the following are typical tasks of a Business Process Analyst, except:
All of the following are typical tasks of a Business Process Analyst, except:
a. Outline possible solutions as improvements and define the scope of solution (TO BE).
b. Determine the actual status of a company (AS-IS) and describe the existing problems and opportunities.
c. Define goals and existing performance potential and analyze competence gaps.
d. Create the Work Breakdown Structure.
Answer: D
The 3 blocks which have to be provided for qualified decisions in BPM are
The 3 blocks which have to be provided for qualified decisions in BPM are
a. framework, implementation guide and leadership culture.
b. benefit realization, resources optimisation and risk optimisation.
c. crises, competitive forces and visions.
d. process flow, process time and customer satisfaction.
Answer: B
What are the three main actuators for process changes?
What are the three main actuators for process changes?
a. Crises, competitive forces and visions
b. Crises, competitive forces and mission
c. Framework, implementation guide and leadership culture
d. Normative level, strategic level and operating level
Answer: A
The employees perspective during the competence management aims to achieve all of the following goals, except:
The employees perspective during the competence management aims to achieve all of the following goals, except:
a. the competence classification.
b. the competence development.
c. the competence measurement.
d. the competence reflexion.
Answer: D
The COBIT 5 - Process Competence Model comprises the following levels:
The COBIT 5 - Process Competence Model comprises the following levels:
a. Incomplete process, implemented process, managed process, established process, predictable process and complete process.
b. Incomplete process, implemented process, managed process, established process, predictable process and optimization process.
c. Implemented process, managed process, established process, predictable process and complete process.
d. Incomplete process, tested process, managed process, established process, predictable process and complete process.
Answer: B
The 5 KPIs of the process pentagon are the
The 5 KPIs of the process pentagon are the
a. process flow, process time, customer satisfaction, process quality and process costs.
b. process flow, process time, customer satisfaction, process quantity and process costs.
c. process flow, process time, process program, process quality and process costs.
d. process flow, process time, customer satisfaction, process description and process costs.
Answer: A
The normative process management
The normative process management
a.is usually an unique initiative which is done by organizational projects or by taking everything into account, from organizational goals, customer expectations and service requests to improve.
b.creates a general understanding of the process management in an organization.
c.executes process optimizations of individual business processes and operates or handles the existing processes in the day-to-day business to reach the specified key performance indicators and to exploit the potentials of existing processes.
d.considers, designs and controls all business processes of an organization over the entire life cycle and creates transparency about their connections with each other and with the business processes of partners.
Answer: B
The business process optimization
The business process optimization
a.is usually an unique initiative which is done by organizational projects or by taking everything into account, from organizational goals, customer expectations and service requests to improve.
b.executes process optimizations of individual business processes and operates or handles the existing processes in the day-to-day business to reach the specified key performance indicators and to exploit the potentials of existing processes.
c.considers, designs and controls all business processes of an organization over the entire life cycle and creates transparency about their connections with each other and with the business processes of partners.
d.creates a general understanding of the process management in an organization.
Answer: A
The BPM customer portfolio comprises all of the following customers, except
The BPM customer portfolio comprises all of the following customers, except
a.competitors
b.customers of processes.
c.management & leadership.
d.employees of processes.
Answer: A
The three building blocks of the BPM-Framework are the
The three building blocks of the BPM-Framework are the
a. Normative level, strategic level and operating level.
b. Normative level, core level and operating level.
c. Management level, strategic level and operating level.
d. Management level, strategic level and support level.
Answer: A
The strategic process management
The strategic process management
a. executes process optimizations of individual business processes and operates or handles the existing processes in the day-to-day business to reach the specified key performance indicators and to exploit the potentials of existing processes.
b. considers, designs and controls all business processes of an organization over the entire life cycle and creates transparency about their connections with each other and with the business processes of partners.
c. is usually an unique initiative which is done by organizational projects or by taking everything into account, from organizational goals, customer expectations and service requests to improve.
d. creates a general understanding of the process management in an organization.
Answer: B
The layer concept/ the level model
The layer concept/ the level model
a. contains 5 or more layer/ level, whereby level 0 represents the business model and level 5 represents the process steps.
b. describes the hierarchical structure of the business processes according to the principle "from detail to rough".
c. describes the hierarchical structure of the business processes according to the principle "from rough to detail".
d. contains exactly 4 layer/ level, whereby level 0 represents the business model and level 4 represents the sub processes.
Answer: C
Business Process Management
Business Process Management
a. consists of a structured group of activities/features and has the purpose to deliver one or more items of value and/or effects (outcomes) to the respective target group, according to the process specification.
b. is an optimal mix of information over the entire life cycle, from the planning to the implementation to the operation, to be able to evaluate, decide and communicate different aspects.
c. is the use of knowledge, skills, methods and tools on processes, so that the requirements of the stakeholders are met.
d. consists of 3 development stages to To meet management tasks companies need planning systems, monitoring systems and control systems.
Answer: C
Level 1 of the layer concept/ level model can be subdivided into the process areas
Level 1 of the layer concept/ level model can be subdivided into the process areas
a.management processes, performance processes, service processes and development/ innovation processes.
b.support processes, performance processes, service processes and development/ innovation processes.
c.support processes, performance processes, product processes and development/ innovation processes.
d.management processes, performance processes, product processes and development/ innovation processes.
Answer: A
A process specification
A process specification
a. is an optimal mix of information over the entire life cycle, from the planning to the implementation to the operation, to be able to evaluate, decide and communicate different aspects.
b. consists of a structured group of activities/features and has the purpose to deliver one or more items of value and/or effects (outcomes) to the respective target group, according to the process specification.
c. consists of 3 development stages to To meet management tasks companies need planning systems, monitoring systems and control systems.
d. is the use of knowledge, skills, methods and tools on processes, so that the requirements of the stakeholders are met.
Answer: A
A business process
A business process
a. is the use of knowledge, skills, methods and tools on processes, so that the requirements of the stakeholders are met.
b. consists of a structured group of activities/features and has the purpose to deliver one or more items of value and/or effects (outcomes) to the respective target group, according to the process specification.
c. consists of 3 development stages to To meet management tasks companies need planning systems, monitoring systems and control systems.
d. is an optimal mix of information over the entire life cycle, from the planning to the implementation to the operation, to be able to evaluate, decide and communicate different aspects.
Answer: B
Assume a U.S. firm plans to expand into Mexico, Germany, or Japan. Its executives are traveling to each country to meet with local businesspeople in the decision-making process. Which of the following would be LEAST beneficial when the executives make a presentation?
Assume a U.S. firm plans to expand into Mexico, Germany, or Japan. Its executives are traveling to each country to meet with local businesspeople in the decision-making process. Which of the following would be LEAST beneficial when the executives make a presentation?
A) requesting a translator with technical vocabulary knowledge
B) simplifying vocabulary and terminology for the audience
C) conducting back translations for written work
D) avoiding repetition to prevent boredom
Answer: D
Assume a firm plans to expand internationally. If its managers wish to avoid pitfalls caused by differences in "silent language," they should consider differences in ________.
Assume a firm plans to expand internationally. If its managers wish to avoid pitfalls caused by differences in "silent language," they should consider differences in ________.
A) normal proximity during conversations
B) degree of detail expected in written contract
C) the meaning of slang words during presentations
D) importance of adherence to schedules
Answer: A
In the opening case on the Java Lounge in Saudi Arabia, 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 ________.
In the opening case on the Java Lounge in Saudi Arabia, 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 ________.
A) people in the port cities have more contact with foreigners
B) the coastal area has to trade with countries using different religious holidays
C) the coastal area has a culture with a higher uncertainty avoidance
D) the coastal area is secular, whereas the interior of Saudi Arabia has a state religion
Answer: A
In the opening case on the Java Lounge in Saudi Arabia, Saudi businessmen engaged in chit-chat while drinking coffee at a café during the conduct of business. Which of the following was the most likely reason for their behavior?
In the opening case on the Java Lounge in Saudi Arabia, Saudi businessmen engaged in chit-chat while drinking coffee at a café during the conduct of business. Which of the following was the most likely reason for their behavior?
A) They are fatalistic, believing that the business outcome was predetermined.
B) Their religious convictions kept them from discussing business over alcoholic drinks.
C) They come from a polychronic culture that prefers to multitask.
D) They come from a high-context culture in which small talk and seemingly unrelated information is important to decision making.
Answer: D
American hamburgers, Japanese sushi, Italian pizza, Mexican tacos, and Middle Eastern pita bread are now commonly found in most countries. This best supports the argument that ________.
American hamburgers, Japanese sushi, Italian pizza, Mexican tacos, and Middle Eastern pita bread are now commonly found in most countries. This best supports the argument that ________.
A) although visible expressions of culture are becoming homogenized, basic differences in societal values remain strong
B) globalization fulfills lower order needs in Maslow's hierarchy
C) cultural imperialism is increasingly widespread
D) cultural hybridization is occurring
Answer: D
The fact that an English word such as blue-jeans has entered the Spanish language, while a Spanish word such as macho has come into American English illustrates that ________.
The fact that an English word such as blue-jeans has entered the Spanish language, while a Spanish word such as macho has come into American English illustrates that ________.
A) cultural diffusion is a two-way process
B) cultural trends come from emerging nations
C) existing national borders are shifting
D) material cultures are becoming universal
Answer: A
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 ________.
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 ________.
A) the stronger work ethic typical of developed countries
B) the spread of high-context cultures
C) cultural fragmentation
D) cultural imperialism
Answer: D
If an MNE convinced a popular priest that its vitamin-enriched soft drink would benefit parishioners' health, the MNE would be using ________ to help bring about change.
If an MNE convinced a popular priest that its vitamin-enriched soft drink would benefit parishioners' health, the MNE would be using ________ to help bring about change.
A) participation
B) reward sharing
C) an opinion leader
D) materialistic motivation
Answer: C
When a company wishes to introduce change in a foreign country, its likelihood of success can most likely be improved by ________.
When a company wishes to introduce change in a foreign country, its likelihood of success can most likely be improved by ________.
A) introducing many changes simultaneously
B) gaining the support of local opinion leaders
C) agreeing to make some home-country changes in return
D) employing expatriate managers to supervise local workers
Answer: B
Organizing work differently to improve productivity will likely fail ________.
Organizing work differently to improve productivity will likely fail ________.
A) if the work force has a low tolerance for authoritarianism
B) if workers participate in planning the improvement
C) unless changes are compatible to competitor's practices
D) if changes interfere with strongly held value systems
Answer: D
A firm that concentrates on national cultural differences in terms of averages is more likely to ________.
A firm that concentrates on national cultural differences in terms of averages is more likely to ________.
A) underestimate market demands
B) increase political risks
C) seek cultural collision
D) overlook outliers
Answer: D
The approach a company takes when it bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints is called ________.
The approach a company takes when it bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints is called ________.
A) polycentrism
B) ethnocentrism
C) neocentrism
D) geocentrism
Answer: D
Ethnocentrism in international business refers to the ________.
Ethnocentrism in international business refers to the ________.
A) study of group ethics and approaches to corporate social responsibility
B) comparison of the Protestant ethic with other religious views
C) belief that what works best at home should work best everywhere
D) ethnic segmentation of marketing programs within countries
Answer: C
One of the potential problems for an MNE that practices too much polycentrism is ________.
One of the potential problems for an MNE that practices too much polycentrism is ________.
A) demanding that local communication methods be replaced with modern technology
B) underestimating the complexity of introducing new management practices
C) losing innovative capabilities to less-risky host-country practices
D) relying too much on home-country directions and policies
Answer: C
Ellen, a U.S. citizen, worked for a U.S. firm in Germany for four years and was transferred back to the firm's home office in Chicago two months ago. Ellen feels significant dissatisfaction with her job and life in Chicago, which is most likely a result of ________.
Ellen, a U.S. citizen, worked for a U.S. firm in Germany for four years and was transferred back to the firm's home office in Chicago two months ago. Ellen feels significant dissatisfaction with her job and life in Chicago, which is most likely a result of ________.
A) reverse culture shock
B) polycentrism
C) culture shock
D) ethnocentrism
Answer: A
The term "cultural distance" refers to the ________.
The term "cultural distance" refers to the ________.
A) physical space between people during communication
B) time it takes people to adjust to the language, traditions, and norms of a foreign culture
C) degree to which countries differ on cultural dimensions
D) preferred relationship between superiors and subordinates in a given culture
Answer: C
Evaluating the importance of potential clients or partners by the way they dress is an example of using ________.
Evaluating the importance of potential clients or partners by the way they dress is an example of using ________.
A) pragmatism
B) silent language
C) polychronism
D) fatalism
Answer: B
Jack, an American accounts manager, is preparing a presentation for a group of Japanese business people. Jack's presentation would be most effective if he ________.
Jack, an American accounts manager, is preparing a presentation for a group of Japanese business people. Jack's presentation would be most effective if he ________.
A) told an opening joke to put everyone at ease
B) used slang to create an informal atmosphere
C) used long words to impress his counterparts
D) budgeted extra time for translation and clarification
Answer: D
When a company does business in another country whose official language is the same as its home country's, the company should most likely ________.
When a company does business in another country whose official language is the same as its home country's, the company should most likely ________.
A) assume that communications will go smoothly
B) use back-translation on all written documents
C) realize that words may have different meanings
D) assume that word meanings are the same despite spelling differences
Answer: C
All of the following are international business translation problems EXCEPT which of the following?
All of the following are international business translation problems EXCEPT which of the following?
A) All written work requires back translation in order to be understood in a second language.
B) Because languages and the common meaning of words are constantly evolving, the intended meaning of a word may be different from what the listener or reader understands.
C) Some words in one language simply don't have a direct translation into another language.
D) Words mean different things in different contexts, thus the wrong context may be translated.
Answer: A
The attempt to resolve small issues before principles is a characteristic of which of the following?
The attempt to resolve small issues before principles is a characteristic of which of the following?
A) relativism
B) monochronic behavior
C) pragmatism
D) uncertainty avoidance
Answer: C
A culture that prefers to first settle general principles rather than small issues is most accurately characterized as ________.
A culture that prefers to first settle general principles rather than small issues is most accurately characterized as ________.
A) idealist
B) polychronic
C) high-context
D) pragmatist
Answer: A
A culture in which people prefer to finish one task before starting another is most accurately characterized as which of the following?
A culture in which people prefer to finish one task before starting another is most accurately characterized as which of the following?
A) low-context
B) monochronic
C) pragmatic
D) high power-distance
Answer: B
In a(n) ________ culture, people tend to regard seemingly peripheral information as pertinent to decision making and infer meanings from things that people say either indirectly or casually.
In a(n) ________ culture, people tend to regard seemingly peripheral information as pertinent to decision making and infer meanings from things that people say either indirectly or casually.
A) pragmatic
B) idealistic
C) fatalistic
D) high-context
Answer: D
Raj, an engineer, works long hours and takes full responsibility for both his good and bad work performance. Raj most likely believes in ________.
Raj, an engineer, works long hours and takes full responsibility for both his good and bad work performance. Raj most likely believes in ________.
A) self-determination
B) low power distance
C) collectivism
D) fatalism
Answer: A
Expatriate managers located in cultures characterized by ________ have noticed that local employees are highly motivated by retirement programs.
Expatriate managers located in cultures characterized by ________ have noticed that local employees are highly motivated by retirement programs.
A) low uncertainty avoidance
B) high future orientation
C) low masculinity
D) high power distance
Answer: B
In societies where trust is high, ________.
In societies where trust is high, ________.
A) people tend to be more future-oriented
B) business costs are typically lower
C) people tend to be more fatalistic
D) family businesses are dominant
Answer: B
Managers should be more precise in their directions to subordinates when ________.
Managers should be more precise in their directions to subordinates when ________.
A) the company has a philosophy of geocentrism
B) the society believes age equals wisdom
C) uncertainty avoidance is high
D) power distance is low
Answer: C
Safe work environments motivate ________; challenges motivate ________.
Safe work environments motivate ________; challenges motivate ________.
A) individualists; collectivists
B) collectivists; individualists
C) non-fatalists; fatalists
D) materialists; non-materialists
Answer: B
Assume a firm has operations in Tokyo, where there is a collectivist culture. Which of the following would most likely motivate the firm's Japanese employees?
Assume a firm has operations in Tokyo, where there is a collectivist culture. Which of the following would most likely motivate the firm's Japanese employees?
A) "employee-of-the-month" programs
B) extensive vacation time
C) on-the-job challenges
D) good health benefits
Answer: D
Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges?
Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges?
A) collectivism
B) democracy
C) individualism
D) anarchy
Answer: C
People generally prefer little consultation between superiors and subordinates in cultures where ________ is high.
People generally prefer little consultation between superiors and subordinates in cultures where ________ is high.
A) power distance
B) fatalism
C) individualism
D) self-actualization
Answer: A
Based on the hierarchy-of-needs theory, in which of the following would fulfillment of lower-order needs be the best motivator?
Based on the hierarchy-of-needs theory, in which of the following would fulfillment of lower-order needs be the best motivator?
A) wealthy countries
B) Protestant countries
C) high femininity countries
D) very poor countries
Answer: D
The term "________ culture" describes a country in which the norm is a money-and-things orientation and a belief that it's better to "live to work" than to "work to live."
The term "________ culture" describes a country in which the norm is a money-and-things orientation and a belief that it's better to "live to work" than to "work to live."
A) high masculinity
B) physiological
C) non-fatalistic
D) high-femininity
Answer: A
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.
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.
A) high; high
B) high; low
C) low; high
D) low; low
Answer: C
Studies indicate a strong correlation between the intensity of religious belief and ________.
Studies indicate a strong correlation between the intensity of religious belief and ________.
A) a desire to convert productivity gains into more leisure time
B) an adherence to some attributes that lead to economic growth
C) the belief that material success is related to salvation
D) the degree of ethnocentrism exhibited in a culture
Answer: B
The more closed a society is, the more important ________ group membership is.
The more closed a society is, the more important ________ group membership is.
A) acquired
B) age-based
C) education
D) ascribed
Answer: D
Which of the following is an example of an acquired group membership?
Which of the following is an example of an acquired group membership?
A) national origin
B) religion
C) gender
D) race
Answer: B
International businesspeople need to understand social stratification systems where they do business because ________.
International businesspeople need to understand social stratification systems where they do business because ________.
A) such systems reflect a culture's willingness to accept new products
B) such systems indicate who people in a given culture will likely respect more
C) the high similarity among countries lets firms effectively use global hiring practices
D) what is an ascribed group membership in one country is an acquired one in another
Answer: B
Although English is referred to as the "international language of business,"________.
Although English is referred to as the "international language of business,"________.
A) it is less frequently used than French in international business
B) there is a growing disagreement over which version of English to use, e.g. British, American, or Australian
C) companies headquartered outside English-speaking countries all use their official language as their operating language
D) monolingual English speakers may experience more difficulty in the future in communicating on a worldwide basis
Answer: D
Which of the following statements about the English language is most likely NOT true?
Which of the following statements about the English language is most likely NOT true?
A) The largest portion of global output is in English-speaking countries.
B) A large portion of MNEs are headquartered in English-speaking countries.
C) English is the official national language in most countries where FDI is encouraged.
D) Many MNEs from non-English speaking countries use English as their operating language.
Answer: C
_______ people account for the largest percentage of global production.
_______ people account for the largest percentage of global production.
A) English-speaking
B) Mandarin-speaking
C) French-speaking
D) Spanish-speaking
Answer: A
Which of the following languages has the most NATIVE speakers?
Which of the following languages has the most NATIVE speakers?
A) English
B) Mandarin
C) Spanish
D) Hindi
Answer: B
Cultural change imposed by an alien culture is called ________.
Cultural change imposed by an alien culture is called ________.
A) multicultural ethnocentrism
B) cultural imperialism
C) collectivism
D) high-context
Answer: B
Creolization refers to ________.
Creolization refers to ________.
A) government efforts to maintain a distinct cultural identity through legislation and language
B) the process of mixing elements of an outside culture with those of a national culture
C) the use of stereotypes to describe a culture
D) changes as cultures evolve over time
Answer: B
Contact among countries brings about cultural change, which is a process called ________.
Contact among countries brings about cultural change, which is a process called ________.
A) cultural collision
B) cultural imperialism
C) cultural diffusion
D) polycentrism
Answer: C
Most people's basic value system is ________.
Most people's basic value system is ________.
A) modified significantly between childhood and adulthood
B) altered during adulthood through imposition
C) affected primarily by teenage peer pressure
D) acquired mainly during early childhood
Answer: D
Which of the following is a reason for global companies to NOT take religious beliefs into account?
Which of the following is a reason for global companies to NOT take religious beliefs into account?
A) Religion has an impact on almost every business function.
B) A company could get in trouble with local religious authorities.
C) A manager's religious training should be implemented in the company he/she manages.
D) Religion may influence consumer behavior.
Answer: C
It is most accurate to say that within most nations' borders, people largely share such essential attributes as ________ and ________.
It is most accurate to say that within most nations' borders, people largely share such essential attributes as ________ and ________.
A) work attitudes; occupations
B) lifestyles; education level
C) education level; ethnicity
D) values; language
Answer: D
Certain attitudes can link groups, such as managers, from different nations more closely than managers within a given nation. As a result, international businesspeople should most likely ________.
Certain attitudes can link groups, such as managers, from different nations more closely than managers within a given nation. As a result, international businesspeople should most likely ________.
A) assume that there are few significant cultural differences among nations
B) examine relevant groups when comparing nations
C) adopt universal operating methods
D) avoid cultural imperialism
Answer: B
A problem of using the nation as a reference point for culture is that ________.
A problem of using the nation as a reference point for culture is that ________.
A) nations fail to mediate the different interests within their boundaries
B) self-stereotypes tend to fall along national lines
C) such an approach tends to be polycentric
D) variations tend to be great within a country (state)
Answer: D
The nation offers a workable reference for studying cultural differences because ________.
The nation offers a workable reference for studying cultural differences because ________.
A) a nation contains only one distinct culture
B) similarity among people is both a cause and effect of national boundaries
C) the commonality of language within a nation eases the process of conducting surveys
D) different groups within the same country always have more in common with each other than with groups in other countries
Answer: B
Which of the following is a common shortcoming of studies examining culture in different countries and regions?
Which of the following is a common shortcoming of studies examining culture in different countries and regions?
A) Cultures are static, which leads researchers to draw false conclusions from old data.
B) It is impossible to compare countries because of differences in data.
C) Responses are reported in averages, which can lead to a belief in unrealistic stereotypes.
D) People are reluctant to complain about their own cultures, so they present only positive opinions to researchers.
Answer: C
Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following?
Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following?
A) observe the behavior of people who have gained respect within that cultural environment
B) rely on stereotypes, which are based on averages, to gain an understanding of the culture
C) avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors
D) memorize the cultural variations that are typically encountered in a specific cultural environment
Answer: A
Which of the following is the most accurate statement about culture?
Which of the following is the most accurate statement about culture?
A) Cultural variables can easily be isolated from other factors such as economic and political conditions.
B) Although most cultural variables are universal, the forms these variables take differ from culture to culture.
C) Most cultural variables are superficial and can easily be influenced by environmental factors.
D) Within a culture, everyone responds to particular cultural variables the same way.
Answer: B
Which of the following best describes a result of cultural collision in international business?
Which of the following best describes a result of cultural collision in international business?
A) A company implements practices that are less effective than intended.
B) Local employees are overlooked for promotions by home country managers.
C) Expatriate managers rely too heavily on local employees for negotiating business deals.
D) Foreign and domestic companies make adjustments for the local culture and legal environment.
Answer: A
When divergent cultures come in contact, ________ occurs.
When divergent cultures come in contact, ________ occurs.
A) power distance
B) culture shock
C) cultural collision
D) group membership
Answer: C
Managing and cultivating diverse teams is facilitated by first encouraging team members to ________.
Managing and cultivating diverse teams is facilitated by first encouraging team members to ________.
A) understand each other's culture before dealing with the tasks at hand
B) jump into the task allowing the team members to react and adapt to each other
C) allow team members to deal with the fellows as they would in their own culture
D) establish strict rules on how the task will be performed
Answer: A
Which of the following is NOT true about cultural diversity?
Which of the following is NOT true about cultural diversity?
A) Companies may gain competitive advantages by bringing together people of diverse backgrounds.
B) Cultural diversity is most successful when domestic and foreign firms establish joint ventures.
C) Cultural diversity may help a company gain deeper knowledge about products and services.
D) The process of bringing people of different national cultures together is often difficult.
Answer: B
_____ consists of specific learned norms based on attitudes, values, and beliefs of a group of people.
_____ consists of specific learned norms based on attitudes, values, and beliefs of a group of people.
A) Ethnology
B) Civilization
C) Culture
D) Doctrine
Answer: C
Starting a new venture in a foreign country by constructing new operational facilities from the ground up. Also known as "wholly owned subsidiary"
Starting a new venture in a foreign country by constructing new operational facilities from the ground up. Also known as "wholly owned subsidiary"
a) blank slate startup
b) Greenfield venture
c) New beginnings venture
d) international venture
Answer: All.
Some critics further suggest that globalization promotes a "___" that drives down wage rates and creates pressure to eliminate labor laws (particularly in developing countries)
Some critics further suggest that globalization promotes a "___" that drives down wage rates and creates pressure to eliminate labor laws (particularly in developing countries)
a) leading mark
b) race to the bottom
c) headstart
d) downfall
Answer: B
This works against treating the world as a single global marketplace.
This works against treating the world as a single global marketplace.
a) National differences in consumer behavior
b) National differences in business systems
Answer: B
There are still major differences between nations in business systems, legal systems, infrastructure, and overall level of economic development.
There are still major differences between nations in business systems, legal systems, infrastructure, and overall level of economic development.
a) National differences in consumer behavior
b) National differences in business systems
Answer: B
Consumer tastes and preferences vary across nations and cultures. However, consumer tastes and preferences can change over time.
Consumer tastes and preferences vary across nations and cultures. However, consumer tastes and preferences can change over time.
a) National differences in consumer behavior
b) National differences in business systems
Answer: A
Like consumer tastes and preferences, these factors can also change over time.
Like consumer tastes and preferences, these factors can also change over time.
a) National differences in consumer behavior
b) National differences in business systems
Answer: B
Business leaders insist that economic benefits flow back to the U.S. economy in the form of all except:
Business leaders insist that economic benefits flow back to the U.S. economy in the form of all except:
a) Lower prices
b) Expanded markets
c) Increased jobs
d) Increased profits that can fund innovation
Answer: C
Is another potential drawback of globalization
Is another potential drawback of globalization
a) neutralization
b) out sourcing
c) homogeneity
d) ethnocentric
Answer: C
(BOP) stands for:
(BOP) stands for:
a) Biggest of Pyramid
b) Buyers of Pyramid
c) Bottom of Pyramid
Answer: C
_______ companies are starting to adopt BOP strategies.
_______ companies are starting to adopt BOP strategies.
a) less
b) more and more
c) not many
d) all
Answer: B
More than ___ billion people make up the lowest level of the world's economic "pyramid".
More than ___ billion people make up the lowest level of the world's economic "pyramid".
a) 1
b) 3
c) 5
d) 4
Answer: D
The United States' primary concerns is the
The United States' primary concerns is the
a) loss of money
b) loss of market share
c) loss of jobs
d) loss of citizens
Answer: C
___ of Americans believe free trade has hurt the United States.
___ of Americans believe free trade has hurt the United States.
a) 23%
b) 33%
c) 53%
d) 63%
Answer: C
A tendency to regard your own culture as superior
A tendency to regard your own culture as superior
a) ethnocentrism
b) pride
c) superiority
d) excellence
Answer: A
Which one of these is NOT a cultural characteristic:
Which one of these is NOT a cultural characteristic:
a) Religion
b) Social Organization
c) Family
d) Attitudes
Answer: C
People use communication primarily to exchange facts and information. Meaning derived primarily from words. Business more important than building relationships and trust Individual's welfare and achievement more important than group's.
People use communication primarily to exchange facts and information. Meaning derived primarily from words. Business more important than building relationships and trust Individual's welfare and achievement more important than group's.
a) low-context
b) mid-context
c) high-context
d) neutral-context
Answer: A
People are sensitive to circumstances surrounding social exchanges. Meaning derived form context (setting, status, nonverbal cues)Relationships and trust more important than business. Group's welfare and harmony more important than individual's
People are sensitive to circumstances surrounding social exchanges. Meaning derived form context (setting, status, nonverbal cues)Relationships and trust more important than business. Group's welfare and harmony more important than individual's
a) low-context
b) mid-context
c) high-context
d) neutral-context
Answer: C
Social rules and guidelines that prescribe appropriate behavior in particular situations.
Social rules and guidelines that prescribe appropriate behavior in particular situations.
a) norms
b) Social Culture
c) Distal culture
d) Common culture
Answer: A
The system of values and norms that are held in common by people living in a society
The system of values and norms that are held in common by people living in a society
a) norms
b) Social Culture
c) Distal culture
d) Common culture
Answer: B
Licensing of a good or service and business model to partners for specified fees (usually a signing fee and a percentage of the franchisee's revenues or profits)
Licensing of a good or service and business model to partners for specified fees (usually a signing fee and a percentage of the franchisee's revenues or profits)
a) franchising
b) licensing
c) exporting
d) patent
Answer: A
The process of sending goods and services from one country to another for distribution, sale, and service.
The process of sending goods and services from one country to another for distribution, sale, and service.
a) franchising
b) licensing
c) exporting
d) patent
Answer: C
The process of entering an international market by leasing the right to use the firm's intellectual property to a firm doing business in the targeted international market.
The process of entering an international market by leasing the right to use the firm's intellectual property to a firm doing business in the targeted international market.
a) franchising
b) licensing
c) exporting
d) patent
Answer: B
Local customization emphasized
Local customization emphasized
a) high-high strategy
b) low-high multi-domestic strategy
c) low-low strategy
d) high-low strategy
Answer: B
Uses decentralized structure
Uses decentralized structure
a) high-high strategy
b) low-high multi-domestic strategy
c) low-low strategy
d) high-low strategy
Answer: B
The firm establishes a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market.
The firm establishes a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market.
a) high-high strategy
b) high-low strategy
c) low-low strategy
d) low-high multi-domestic strategy
Answer: D
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