Western countries generally nurture firms with long horizons T/F
FALSE
Business leaders should focus on the top two tiers of the global economic pyramid because the base of the pyramid (BoP) does not offer many economic opportunities. T/F
FALSE
China is a totalitarian country, so it suffers from a high level of political risk. T/F
TRUE
Relying on informal connections is relevant only to firms in emerging economies, and firms in developed economies pursue only market-based strategies. T/F
FALSE
The cognitive pillar refers to the internalized values and beliefs that guide individual and firm behavior. T/F
TRUE
To the extent that laws reflect a society's minimum standards of conduct, what is legal and what is illegal perfectly correspond to what is considered ethical and what is considered unethical, respectively. T/F
FALSE
Semiglobalization suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely. T/F
TRUE
If a company is doing business in a country with a strong propensity for informal relational exchanges, it may not be a good idea to insist on formalizing the contract right away. Because such countries often have relatively weak legal systems, personal r
TRUE
Informal institutions come from socially transmitted information and are a part of the heritage that we call cultures, ethics, and norms. T/F
TRUE
Which of the following statements is true of institutional transitions?
a. They are comprehensive changes introduced to the formal and informal rules of the game that affect firms as players.
b. They are the internalized values and beliefs that guide indi
a. They are comprehensive changes introduced to the formal and informal rules of the game that affect firms as players.
Which of the following statements is true of political risk?
a. It is prevalent to the same extent in both totalitarian
and democratic countries.
b. It is a risk associated with legal changes.
c. It can lead to nationalization of foreign assets.
d. It can
c. It can lead to nationalization of foreign
assets.
In the global fight against corruption, the _____ was enacted by the US Congress in 1977. It bans bribery of overseas officials.
a. Foreign Corrupt Practices Act
b. Corruption of Foreign Public Officials Act
c. UK Bribery Act
d. American Anti-Corruption A
a. Foreign Corrupt Practices Act
Which of the following statements is true of foreign direct investment?
a. It is the act of buying an ownership stake within a country that provides capital.
b. It is the process of investing in, controlling, and managing value-added activities in other c
b. It is the process of investing in, controlling, and managing value-added activities in other countries.
Which of the following statements is true of ethics?
a. It always complies by the rules.
b. It emphasizes perseverance for future
betterment.
c. It is only a part of formal institutions.
d. It is deeply reflected in formal laws and regulations.
d. It is deeply reflected in formal laws and regulations.
_____ is the idea that the identity of a person is fundamentally his or her own.
a. Ethnocentrism
b. Individualism
c. Femininity
d. Masculinity
b. Individualism
When generalizing culture as national culture, it is important to remember which of the following?
a. Many subcultures exist within multiethnic countries
b. Culture has many layers, such as regional, ethnic, and religious
c. Using the term "culture" to di
d. All of the above
The _____ consists of North America, Western Europe, and Japan.
a. base of the pyramid
b. Triad
c. top tier of the pyramid
d. triplex
b. Triad
Arcadia is a country that follows a democratic system of government. Therefore, it can be inferred that:
a. one person or party exercises absolute political control.
b. citizens elect representatives to govern the country on their behalf.
c. power rests i
B. citizens elect representatives to govern the country on their behalf.
Which of the following statements is true of institutions?
a. They are not static.
b. They only include formal institutions.
c. They do not constrain the range of available actions.
d. They only emphasize rules.
a. They are not static.
Which of the following describes international business?
a. Firms collaborating with domestic entrants
b. Firms selling their businesses completely to foreign companies
c. Firms engaging in business abroad
d. Firms belonging to and doing business in emerg
C. Firms engaging in business abroad
Which of the following statements is true of institutions?
a. They generate 40 percent foreign direct investment (FDI) outflows.
b. They mean the formal and informal rules of the game.
c. They are also called emerging economies.
d. They are firms engaging
B. They mean the formal and informal rules of the game.
Ethics helps to combat corruption, while corruption:
a. discourages foreign direct investment.
b. increases the economic development.
c. decreases the tax rate.
d. is based on products and services.
A. discourages foreign direct investment.
A(n) _____ is a leading perspective in global business that suggests that firm performance is, at least in part, determined by its internal capital and capabilities.
a. product-based view
b. institution-based view
c. resource-based view
d. profit-based vi
C. resource-based view
Which of the following is an economic example of the emergence of BRIC(S) during the Great Transformation?
a. China doubled its per capita income in about ten years.
b. From 2007-2017 Brazil accomplished an annual economic growth rate of 6%.
c. Managers i
a. China doubled its per capita income in about ten years.
Which of the following statements is true of norms?
a. They affect the focal individuals and firms.
b. They focus only on regulatory compliance.
c. They anticipate institutional changes.
d. They are always the first line of defense for firms.
A. They affect the focal individuals and firms.
_____ refers to the extent to which members in a culture accept or avoid ambiguous situations and uncertainty.
a. Ethnocentrism
b. Individualism
c. Uncertainty avoidance
d. Femininity
c. Uncertainty avoidance
Which of the following statements is true of purchasing power parity (PPP)?
a. It is the sum of value added by residents and households operating in an economy.
b. It is the management of value-added activities in other countries.
c. It is an investment m
d. It is an adjustment to reflect the differences in cost of living among different countries.
More than 25 percent of global gross domestic product (on a PPP basis) in recent years comes from _____.
a. African economies
b. Latin America
c. Central and Eastern Europe
d. emerging economies, such as BRICS (Brazil, Russia, India, China, and South Afri
d. emerging economies, such as BRICS (Brazil, Russia, India, China, and South Africa)
In a(n) _____, all factors of production should be state owned and state controlled, and all supply, demand, and pricing are planned by the government.
a. unplanned economy
b. mixed economy
c. market economy
d. command economy
d. command economy
Most emerging economies have experienced:
a. some significant slow down recently.
b. uniform high-speed growth.
c. a doubling of their per capita incomes within five years.
d. an increase in the number of employees.
a. some significant slow down recently.
Overall, the economic system of most countries is a _____.
a. planned economy
b. mixed economy
c. market economy
d. command economy
b. mixed economy
An important source of transaction costs is _____, defined as the act of seeking self-interest with guile.
a. opportunism
b. theocracy
c. uncertainty
d. piracy
a. opportunism
When the formal regime in the country of Zoalia collapsed, the growth of many entrepreneurial firms was facilitated by informal constraints based on personal relationships and connections among managers and officials. This is an example of _____.
a. firms
d. informal constraints providing constancy for managers and firms in situations where formal constraints are unclear
_____ is the sum of value added by residents, households, and government operating in an economy.
a. Foreign direct investment
b. Purchasing power parity
c. Gross domestic product
d. Intermediate consumption
a. Foreign direct investment
Which of the following options is a factor for the dominance of English as a global business language? WONT TEST
a. English-speaking countries contribute the largest share of global output.
b. Recent globalization has called for the use of only English as
a. English-speaking countries contribute the largest share of global output.
Which of the following is a guideline for managers doing business around the globe? WONT TEST
a. Managers should follow the advice of the second proposition of the institution-based view.
b. Managers must give more importance to formal constraints.
c. Fir
a. Managers should follow the advice of the second proposition of the institution-based view.
Dana lives in a country that follows right-wing totalitarianism. Therefore, it is most likely that:
a. citizens elect representatives to govern the country on their behalf.
b. power rests in the hands of one religious party or group.
c. one party, backed
c. one party, backed by the military, restricts political freedom.
Western countries generally nurture firms with long horizons T/F
FALSE
Business leaders should focus on the top two tiers of the global economic pyramid because the base of the pyramid (BoP) does not offer many economic opportunities. T/F
FALSE
China is a totalitarian country, so it suffers from a high level of political risk. T/F
TRUE
Relying on informal connections is relevant only to firms in emerging economies, and firms in developed economies pursue only market-based strategies. T/F
FALSE
The cognitive pillar refers to the internalized values and beliefs that guide individual and firm behavior. T/F
TRUE
To the extent that laws reflect a society's minimum standards of conduct, what is legal and what is illegal perfectly correspond to what is considered ethical and what is considered unethical, respectively. T/F
FALSE
Semiglobalization suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely. T/F
TRUE
If a company is doing business in a country with a strong propensity for informal relational exchanges, it may not be a good idea to insist on formalizing the contract right away. Because such countries often have relatively weak legal systems, personal r
TRUE
Informal institutions come from socially transmitted information and are a part of the heritage that we call cultures, ethics, and norms. T/F
TRUE
Which of the following statements is true of institutional transitions?
a. They are comprehensive changes introduced to the formal and informal rules of the game that affect firms as players.
b. They are the internalized values and beliefs that guide indi
a. They are comprehensive changes introduced to the formal and informal rules of the game that affect firms as players.
Which of the following statements is true of political risk?
a. It is prevalent to the same extent in both totalitarian
and democratic countries.
b. It is a risk associated with legal changes.
c. It can lead to nationalization of foreign assets.
d. It can
c. It can lead to nationalization of foreign
assets.
In the global fight against corruption, the _____ was enacted by the US Congress in 1977. It bans bribery of overseas officials.
a. Foreign Corrupt Practices Act
b. Corruption of Foreign Public Officials Act
c. UK Bribery Act
d. American Anti-Corruption A
a. Foreign Corrupt Practices Act
Which of the following statements is true of foreign direct investment?
a. It is the act of buying an ownership stake within a country that provides capital.
b. It is the process of investing in, controlling, and managing value-added activities in other c
b. It is the process of investing in, controlling, and managing value-added activities in other countries.
Which of the following statements is true of ethics?
a. It always complies by the rules.
b. It emphasizes perseverance for future
betterment.
c. It is only a part of formal institutions.
d. It is deeply reflected in formal laws and regulations.
d. It is deeply reflected in formal laws and regulations.
_____ is the idea that the identity of a person is fundamentally his or her own.
a. Ethnocentrism
b. Individualism
c. Femininity
d. Masculinity
b. Individualism
When generalizing culture as national culture, it is important to remember which of the following?
a. Many subcultures exist within multiethnic countries
b. Culture has many layers, such as regional, ethnic, and religious
c. Using the term "culture" to di
d. All of the above
The _____ consists of North America, Western Europe, and Japan.
a. base of the pyramid
b. Triad
c. top tier of the pyramid
d. triplex
b. Triad
Arcadia is a country that follows a democratic system of government. Therefore, it can be inferred that:
a. one person or party exercises absolute political control.
b. citizens elect representatives to govern the country on their behalf.
c. power rests i
B. citizens elect representatives to govern the country on their behalf.
Which of the following statements is true of institutions?
a. They are not static.
b. They only include formal institutions.
c. They do not constrain the range of available actions.
d. They only emphasize rules.
a. They are not static.
Which of the following describes international business?
a. Firms collaborating with domestic entrants
b. Firms selling their businesses completely to foreign companies
c. Firms engaging in business abroad
d. Firms belonging to and doing business in emerg
C. Firms engaging in business abroad
Which of the following statements is true of institutions?
a. They generate 40 percent foreign direct investment (FDI) outflows.
b. They mean the formal and informal rules of the game.
c. They are also called emerging economies.
d. They are firms engaging
B. They mean the formal and informal rules of the game.
Ethics helps to combat corruption, while corruption:
a. discourages foreign direct investment.
b. increases the economic development.
c. decreases the tax rate.
d. is based on products and services.
A. discourages foreign direct investment.
A(n) _____ is a leading perspective in global business that suggests that firm performance is, at least in part, determined by its internal capital and capabilities.
a. product-based view
b. institution-based view
c. resource-based view
d. profit-based vi
C. resource-based view
Which of the following is an economic example of the emergence of BRIC(S) during the Great Transformation?
a. China doubled its per capita income in about ten years.
b. From 2007-2017 Brazil accomplished an annual economic growth rate of 6%.
c. Managers i
a. China doubled its per capita income in about ten years.
Which of the following statements is true of norms?
a. They affect the focal individuals and firms.
b. They focus only on regulatory compliance.
c. They anticipate institutional changes.
d. They are always the first line of defense for firms.
A. They affect the focal individuals and firms.
_____ refers to the extent to which members in a culture accept or avoid ambiguous situations and uncertainty.
a. Ethnocentrism
b. Individualism
c. Uncertainty avoidance
d. Femininity
c. Uncertainty avoidance
Which of the following statements is true of purchasing power parity (PPP)?
a. It is the sum of value added by residents and households operating in an economy.
b. It is the management of value-added activities in other countries.
c. It is an investment m
d. It is an adjustment to reflect the differences in cost of living among different countries.
More than 25 percent of global gross domestic product (on a PPP basis) in recent years comes from _____.
a. African economies
b. Latin America
c. Central and Eastern Europe
d. emerging economies, such as BRICS (Brazil, Russia, India, China, and South Afri
d. emerging economies, such as BRICS (Brazil, Russia, India, China, and South Africa)
In a(n) _____, all factors of production should be state owned and state controlled, and all supply, demand, and pricing are planned by the government.
a. unplanned economy
b. mixed economy
c. market economy
d. command economy
d. command economy
Most emerging economies have experienced:
a. some significant slow down recently.
b. uniform high-speed growth.
c. a doubling of their per capita incomes within five years.
d. an increase in the number of employees.
a. some significant slow down recently.
Overall, the economic system of most countries is a _____.
a. planned economy
b. mixed economy
c. market economy
d. command economy
b. mixed economy
An important source of transaction costs is _____, defined as the act of seeking self-interest with guile.
a. opportunism
b. theocracy
c. uncertainty
d. piracy
a. opportunism
When the formal regime in the country of Zoalia collapsed, the growth of many entrepreneurial firms was facilitated by informal constraints based on personal relationships and connections among managers and officials. This is an example of _____.
a. firms
d. informal constraints providing constancy for managers and firms in situations where formal constraints are unclear
_____ is the sum of value added by residents, households, and government operating in an economy.
a. Foreign direct investment
b. Purchasing power parity
c. Gross domestic product
d. Intermediate consumption
a. Foreign direct investment
Which of the following options is a factor for the dominance of English as a global business language? WONT TEST
a. English-speaking countries contribute the largest share of global output.
b. Recent globalization has called for the use of only English as
a. English-speaking countries contribute the largest share of global output.
Which of the following is a guideline for managers doing business around the globe? WONT TEST
a. Managers should follow the advice of the second proposition of the institution-based view.
b. Managers must give more importance to formal constraints.
c. Fir
a. Managers should follow the advice of the second proposition of the institution-based view.
Dana lives in a country that follows right-wing totalitarianism. Therefore, it is most likely that:
a. citizens elect representatives to govern the country on their behalf.
b. power rests in the hands of one religious party or group.
c. one party, backed
c. one party, backed by the military, restricts political freedom.