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Q:
Material culture describes how people make things, who makes what, and why.
Q:
Religion is not an important aspect of culture in countries that are secular and have split the church from the state.
Q:
A culture's aesthetics is the sense of moral behavior taught to the young.
Q:
Trompenaars' achievement vs. ascription dimension describes social status based on what one does or who one is. The United States is a culture in which people build who they are through work, so its social status tends to be based on ascription.
Q:
Your neighbor's business is cutting down an acre of first-growth, virgin forest and planting a lawn and garden beds at its HQ. You are likely to be in an Anglo culture, where domination of nature seems normal.
Q:
The specific-diffuse dimension has to do with social patterns for child rearing.
Q:
Trompenaars' dimension of individualism vs. communitarianism differs greatly from Hofstede's individualism-collectivism dimension.
Q:
Trompenaars' dimension of universalism vs. particularism measures whether rules or rewards regulate behaviors.
Q:
Hofstede describes his Confucian dynamism dimension as dealing with Virtue regardless of Truth.
Q:
Feminine cultures in Hofstede's dimensions care about relationships and are not focused on business success. It is quality of life that matters.
Q:
Hofstede's framework is based on social science theory.
Q:
The United States and Canada are small power distance countries because they expect a level playing field, socially, at least at the ideal level.
Q:
Hofstede's individualism-collectivism dimension measures the degree to which people tend to be integrated into groups.
Q:
In high-context cultures, people tend to form long-lasting relationships that endure over time.
Q:
Low-context cultures tend to be polychronic, with a lot going on at one time.
Q:
Low-context cultures such as the United States have explicit communication patterns.
Q:
In Hall's use, context is the irrelevant environment in a communication act.
Q:
Hall's high-and low-context framework is based upon communication styles.
Q:
When we use cultural frameworks to build our understanding of another culture, we use our own culture as an implicit reference point.
Q:
Although some business areas are affected by culture, accounting and finance are objective and thus universal.
Q:
Leadership traits may vary some by culture, but underneath they build on the idea that all people want to be led and directed.
Q:
Cultural attitudes toward change can influence the acceptance of new production methods.
Q:
In human resources, laws administered by the Equal Employment Opportunity Commission, (EEOC) allow an American company to be successful on the cultural front in all foreign labor markets.
Q:
Business makes few costly mistakes in product introductions into foreign markets.
Q:
When operating in other cultures, if we realize that, underneath it all, we are all the same, we will be fine.
Q:
Anthropologist E. T. Hall suggests that to learn another culture, you need to spend two weeks in it with a training program.
Q:
International business managers need to be able to communicate across cultural borders, even if they don't speak foreign languages.
Q:
We are each born with a unique culture.
Q:
Permanent members of the UN Security Council vote on Security Council measures, and only the secretary-general of the UN, Ban Ki-Moon, has veto power.
Q:
The UN Environment Programme laid the groundwork for the Climate Change Convention, which led to the Kyoto Protocol.
Q:
The United Nations operates with voluntary agreements, so it is essentially an informal institution.
Q:
International institutions provide nations the opportunity to build multilateral solutions, and thus make significant contributions to international stability.
Q:
Informal cognitive institutions are not important to international managers because such managers localize their hiring, and so they can draw on local talent.
Q:
One of the significant differences between formal and informal institutions is how they gain compliance.
Q:
New institutional theory suggests that institutions be understood as collections of rules and codes of conduct that limit behavior.
Q:
As discussed in the chapter, institutions are organizations constructed to create jobs for government employment initiatives.
Q:
Describe the impact of the EU on a non-EU firm.
Q:
Economic integration agreements are nice for the insiders, such as the United States, Mexico, and Canada with NAFTA, but they stand in the way of WTO progress because they violate basic guidelines of the WTO. Agree or disagree.
Q:
The five principles of the WTO (trade without discrimination, freer trade, predictability, fair competition, and encouraging development and economic reform), if followed, would provide developing nations a boost in their development. Agree or disagree.
Q:
Given what you have read about institutional theory, comment on the quote from William Inge, former dean of St. Paul's, London: "Every institution not only carries with it the seeds of its own dissolution, but prepares the way for its most hated rival."
Q:
Most African nations have their main trade relationships:
A. within local FTAs.
B. with other African nations due to transport costs.
C. with developed nations, often built on former colonial ties.
D. with China.
Q:
Discuss the observation made recently by an undergraduate philosophy major that "the major international institutions are concerned with keeping the rich countries rich, at the expense of the poorer ones."
This question gives students a chance to describe and evaluate the contributions individual international institutions covered in Chapter 3 make to businesses in developing nations. The UN focus on standardizing trade terms and the WTO's push for growth of trade and a level playing field for developing nations are among the contributions that might be addressed. Argumentation and reasoning would play a role in this response, as would examples.
Q:
Economic integration often progresses:
A. in stages, from free trade area to customs union to common market.
B. in stages, totally dependent on the members' national economic strength.
C. as a result of cultural beliefs and economic strength.
D. in unpredictable ways due to unintended consequences.
Q:
The most serious recent challenge to the EU has been:
A. the recent financial crisis.
B. the arrest of the IMF's Strauss-Kahn.
C. immigration-provoked social unrest.
D. weather changes that have resulted in rising sea levels and warmer temperatures.
Q:
In a free trade area, members drop internal tariffs. External tariffs:
A. are dropped also.
B. are coordinated so that there is one agreed-upon set of external tariffs.
C. are maintained independently by each member.
D. do not apply to an FTA.
Q:
Which country does not belong to the OECD?
A. Belgium
B. France
C. Japan
D. China
Q:
Regional trade agreements such as NAFTA can be seen to impact the WTO:
A. negatively, because they undercut the nondiscrimination principle of the WTO.
B. positively, because they extend most-favored-nation status to more nations.
C. negatively, because they compete with the WTO for membership, since nations can belong to only one trade group.
D. negatively, because the United States and the EU do not have a regional trade agreement between them.
Q:
Two good places to begin country-level research are the websites of the:
A. CIA and UN.
B. UN and WTO.
C. BIAC and CIA.
D. specific country's government and OECD.
Q:
The WTO has made progress on trade-related intellectual property rights (TRIPS). An example of this progress is:
an agreement that property rights should not take precedence over public health.
C. a shared recognition that private property is a basic human right.
D. an agreement that governments should hold all pharmaceutical trade secrets.
The TRIPS agreement recognizes that property rights should not take precedence over public health. All adopting countries have the right to copy drugs patented before 1995.
Q:
The OECD has encouraged members to:
A. develop trade relationships within the OECD only.
B. eliminate bribery in all commercial transactions.
C. standardize electrical wave signals.
D. extend their tax regulations beyond their borders.
Q:
The Doha Development Agenda is:
A. a WTO plan to establish free trade among the emirates in the Persian Gulf.
B. the government seat of Qatar and source of significant WTO funding through Sheik Kalifa al-Thani.
C. a UN plan to develop the Arab Emirates to ensure their independence.
D. an extended conference of the WTO initially convened in Doha.
Q:
The main purpose of the OECD is to:
A. provide economic research and a discussion forum.
B. function as a developed-nation cartel.
C. limit growth in developing economies.
D. support trading patterns within the group of developed nations.
Q:
Is the WTO's idea of "fair competition" really a code phrase for free trade?
A. Yes, the WTO is in favor of free trade and only free trade under all circumstances.
B. Not really. Trade relationships among nations can be exceedingly complex, and the WTO supports fair competition, which may mean freer trade rather than free trade.
C. Yes, the WTO stands for trade liberalization, which requires transparency, economic reform, and no protectionism, regardless of the member nation's economic situation.
D. Yes. The WTO supports free trade and the term fair competition is used to obtain buy-in from nations opposed to trade liberalization.
Q:
The OECD is called the "rich man's club" because its members:
A. are rich and male.
B. are 34 of the world's wealthiest nations.
C. are concerned with increasing their own wealth rather than promoting development.
D. promote wealth at the cost of health and safety.
Q:
The WTO exists to:
A. establish and help implement rules of trade among nations in order to increase trade flows.
B. monitor and reduce the amount of trade from developing nations to developed nations.
C. ensure that the industrial revolution continues to support the economies of developed nations.
D. B and C.
Q:
EU rulings:
A. affect all businesses headquartered within the EU.
B. affect all businesses within the EU and those that trade within the EU.
C. limit businesses outside the EU but not in the United States.
D. are of no importance outside the EU.
Q:
The IBRD is a major institution of the World Bank whose function is to loan to:
A. countries whose income levels make them not creditworthy.
B. private-sector development-focused firms.
C. private individuals in developing nations whose entrepreneurial efforts support development.
D. middle-income and creditworthy poor nations.
Q:
International institutions offer graduating international business majors:
A. interesting career development and internship opportunities.
B. funded study-abroad programs.
C. language training in major languages used in trade.
D. export-import process training.
Q:
The major function of the World Bank is to serve as a:
A. nonprofit banking cooperative for its members to meet development needs.
B. central bank for the world's central bankers.
C. nonprofit cooperative to finance the educational needs of its members.
D. investor of funds in global businesses in order to create value for its shareholders.
Q:
International institutions are important to international business managers because, in general, they:
A. limit financial responsibility of business.
B. promote development.
C. limit choices, thereby providing ways to settle disagreements and resolve conflicts.
D. encourage immigration and labor mobility.
Q:
The IMF initially played a central role in:
A. establishing trade initiatives through GAAP measures.
B. supporting war-torn nations of Europe as they recovered from their devastation.
C. setting fixed exchange rates among nations' currencies with an established par value based on gold.
D. the monitoring of EU initiatives to restrain trade with South Africa.
Q:
The UN is important to international business for many reasons, including that it:
A. develops standards and norms in technical areas.
B. monitors trade patterns.
C. arranges trade missions to developing nations.
D. arranges international funding for business education.
Q:
IMF quotas are determined by the relative size of a nation in the global economy and:
A. determine the weight of the nation's voting in the IMF.
B. determine how much a nation can borrow from the IMF.
C. are the nation's "dues" to the IMF.
D. all of the above.
Q:
"Trade without discrimination" in the WTO means that
A. the MFN principle can be ignored.
B. all trading partners must be treated the same.
C. racially based trading patterns are tolerated.
D. developing and developed nations must be separated for trading purposes.
Q:
An important assumption that the IMF makes is that a strong organization with rules and penalties for their violation is necessary to support trade.
Q:
How many countries in the EU use the euro as their currency?
A. 17
B. 23
C. 15
D. 7
Q:
The International Court of Justice (ICJ) handles all cases brought forward by any person or organization.
Q:
The following country is not a member of ASEAN:
A. Indonesia.
B. Vietnam.
C. Cambodia.
D. China.
Q:
As Kofi Annan, former secretary-general of the UN, observed, the UN exists to help us master the challenges of our common, global destiny, which we can do only if we face them together.
Q:
The Organization for Economic Cooperation and Development provides information on:
A. military alliances.
B. economic and other activities within its member-nations.
C. trade imbalances for nonmember countries.
D. sovereign debt risk.
Q:
The UN General Assembly is the main staff organization responsible for the UN administration.
Q:
ASEAN began as a:
A. free trade pact.
B. cooperative marketing alliance among Southeast Asian nations.
C. security and military alliance among Southeast Asian nations.
D. response to the EU.
Q:
The following is an area in which the UN plays a significant role for international business: loaning seed money for entrepreneurial start-ups in developed nations.
Q:
The main difference between a free trade area (FTA) and a customs union is that in a customs union, there is:
Q:
An example of an informal, cognitive institution would be the celebration of Halloween.
Q:
The results of liberalized trade so far have been:
A. beneficial for developing economies.
B. harmful for developing economies.
C. unconnected to developed economies.
D. uneven for developing and developed economies.
Q:
Examples of informal, normative institutions would include local town/city governments and the U.S. government.
Q:
The Doha Development Agenda is:
A. a WTO conference on trade.
B. an agreement on climate control and greenhouse gases.
C. a decision-making approach to development.
D. a development rules list.
Q:
Cognitive institutions are important to the international manager because these institutions help the manager understand the schema operating in their international environments and are easily missed or misunderstood by the non-native, so schemas can easily lead to misunderstandings.
Q:
The idea that WTO members treat all members equally is known as:
A. the transparency principle.
B. the fairness principle.
C. the equity and equality principle
D. the MFN (most-favored-nation) principle.