Module 2 Flashcards
The total annual income received by residents of a single nation is reflected in which official measure?
Gross national product
Gross national income
Human development index
Purchasing power parity
Gross national income
Which of the following factors helps determine the Human Development Index of a country?
Religious affiliation
Educational attainment
Life expectancy at birth
Average incomes
Democratic state
Educational attainment
Life expectancy at birth
Average incomes
As defined in the text, _____ includes a company’s new products, new processes, new organization, new management practices, and new strategies.
the political economy
dynamism
innovation
the common good
innovation
Which economic system is MOST conducive to innovation and entrepreneurial activity?
Mixed economies
Planned economies
Market economies
Command economies
Market economies
It is ______________________ for the government to expropriate profits from innovation through excessive taxation.
legal
____________ measures the total annual income received by residents of a country.
Gross national income
Gross domestic product
Purchasing power parity
Human development index
Gross national income
In the past 40 years, China, South Korea, Taiwan, Singapore, and Hong Kong had the fastest-growing economies. These nations also had ______ in place.
secure property rights
undemocratic governments
free markets systems
democratic governments
undemocratic governments
The Human Development Index is based on
environmental capacity levels.
life expectancy at birth.
economic regression.
the presence of political regimes.
life expectancy at birth.
Economic progress often leads to
adoption of a totalitarian regime.
higher growth rates in a command economy.
higher growth rates in a planned economy.
adoption of a democratic government.
adoption of a democratic government.
When analyzing the process of innovation, it can be said that it
is the primary cause of economic stagnation.
is counter-intuitive to creative thinking.
typically increases the inefficiency of labor and capital.
goes hand-in-hand with entrepreneurship.
goes hand-in-hand with entrepreneurship.
Jeffrey Sachs argued that the ______ of a nation can have an impact on economic development.
sociology
geography
religion
education
geography
One change in the political systems of nations since the late 1980s is that
there has been a strong move away from free market economies toward a more planned economic model.
there has been a strong move away from free market economies toward a more mixed economic model.
totalitarian governments failed and were replaced by democratically elected governments usually supportive of free market capitalism.
countries with totalitarian governments collapsed and were replaced by socialists who were typically committed to command-based economic systems.
totalitarian governments failed and were replaced by democratically elected governments usually supportive of free market capitalism.
To foster innovation in the business environment, it is important that strong legal protection of property rights is in place. Inadequately enforced property rights can lead to an increase in the
levels of foreign direct investment.
incentives for entrepreneurial activities.
rate of economic growth.
risk of expropriation of profits.
risk of expropriation of profits.
Property rights are only truly secure when a _____ exists.
mature democratic state
totalitarian regime
demand economy
planned economy
mature democratic state
In many nations, which social class has benefited from economic advances and seen the emergence of prosperity?
The upper class
The poor
The capitalist class
The middle class
The middle class
How does Samuel Huntington’s argument about the new world order differ from the view of Fukuyama?
Huntington believed the world would be split into different civilizations with their own ideology.
Huntington believed that a universal liberal democracy would occur.
Huntington believed in a harmonious world that emphasized free market capitalism.
Huntington believed in the triumph of Westernized thought.
Huntington believed the world would be split into different civilizations with their own ideology.
Which of these situations relates to Sachs’s view on a country’s economic development?
Multiple choice question.
Country D denies civil liberties to its citizens and controls all business production.
Country B has implemented a policy in which all children receive a paid college education.
Country C decides to stop production of computer technology after another country steals its intellectual property.
Country A has the benefit of nutrient-rich soil which provides a competitive advantage for the country’s tobacco industry.
Country A has the benefit of nutrient-rich soil which provides a competitive advantage for the country’s tobacco industry.
Which trend has been seen in the political systems of nations since the late 1980s?
Multiple choice question.
Totalitarian governments are typically more committed to free market capitalism than democratically elected governments.
There has been a strong move away from free market economies and a move toward a more free mixed economic model.
Democratically elected governments are being replaced by totalitarian governments that are committed to free market capitalism rather than democracies.
There is more emphasis on the free market economy approach and less on centrally planned and mixed economic models.
There is more emphasis on the free market economy approach and less on centrally planned and mixed economic models.
One reason for the spread of democracy across the globe is the
Multiple choice question.
high degree of trade barriers implemented by most nations participating in international trade.
political rivalry among parties in a nation.
failure of totalitarian regimes to provide economic progress to the majority of their citizens.
absence of sophistication in a country’s economy
failure of totalitarian regimes to provide economic progress to the majority of their citizens.
The Heritage Foundation index of economic freedom is based on 10 indicators. Which of the following are included in that index?
Multiple select question.
Societal scale
Taxation rules
Foreign investment regulations
Trade policy
Labor freedom
Education policy
Taxation rules
Foreign investment regulations
Trade policy
Labor freedom
What economic tactic was used when former communist countries removed price controls and allowed prices to be set as the result of supply and demand?
Purchasing parity
Privatization
Deregulation
Isolationism
Deregulation
Francis Fukuyama’s argument regarding the new world order was that
there is no “universal” civilization based on widespread acceptance of Western liberal democratic ideals.
liberal democracy has triumphed and will become the final form of human government.
a world split into different civilizations, each of which has its own value systems and ideology, will result in better governance.
“the war of ideas” will continue and democracy will be limited to the few.
liberal democracy has triumphed and will become the final form of human government.
An international firm, entering a country’s market early, may achieve a significant payback if that country:
achieves sustained high economic growth rates.
protects its domestic industries.
experiences an economic slowdown.
converts to a command economy.
achieves sustained high economic growth rates.
______ involves removing legal restrictions, typically in the economic sphere.
Isolationism
Deregulation
Containment
Logistics
Deregulation
Problems that confront businesses that enter a market after other businesses are already in place are called ______.
deregulation effects
late-mover disadvantages
the difference principle
tragedy of the commons
late-mover disadvantages
In many European nations, the title to agricultural property is not known because there are no official records indicating who has title. This detracts from the incentive to engage in economic activity. What is causing this lack of incentive?
Limited geographic factors
Lack of education
Insufficient legal system
Duplicate demographic factors
Insufficient legal system
When discussing the changes in the political and economic systems of the world, it can be said that
the battle between the ideologies of collectivism and individualism is less distinct today.
command economies have ceased to exist.
totalitarian dictatorships have ceased to exist.
countries always favor a planned economy and oligarchy as they move forward.
the battle between the ideologies of collectivism and individualism is less distinct today.
When comparing early and late entrants into a market, it can be said that
late entrants build brand loyalty required to achieve a significant presence in the market.
early entrants fail to reap the benefits of foreign direct investment policies.
early entrants build brand loyalty and gain experience in a country’s business practices.
late entrants reap substantial benefits and experience necessary to achieve a significant presence in the market.
early entrants build brand loyalty and gain experience in a country’s business practices.
Energy Resources Ltd. does business in 50 countries around the world. The company stresses to all employees the importance of understanding the prevailing culture in the countries that they are doing business in. In other words, the company is aware of the importance of
a global village.
corporate branding.
collectivism.
cross-cultural literacy.
cross-cultural literacy.
The ideas about what a group believes to be good, right, and desirable are called _____.
society
norms
values
culture
values
The routine conventions of living, thinking, and acting in a group are called ______.
folkways
attitudes
values
norms
folkways
There _____ a strict one-to-one relationship between one culture and a nation-state.
is
has always been
sometimes is
is not
is not
While religion can influence the values and norms of society, the values and norms of society can also impact religion.
True false question.
True
False
True
The basic social organization of a society is called its social _____.
Multiple choice question.
folkway
nation
structure
orientation
structure
Most people talk quietly when going into a library because it is a social rule. This type of social rule is called a _____.
culture
society
value
norm
norm
Stephen usually eats lunch with three of his co-workers and on the weekends he gets together with his college friends. The people Stephen interacts with represent two types of _____.
Multiple choice question.
collectivists
folkways
societies
groups
groups
Monica asked her manager if appropriate dress for the meeting was business casual or traditional business. Monica is inquiring about the ______ associated with the meeting.
mores
folkway
values
attitude
folkway
What are three principles of social stratification?
Multiple select question.
It stagnates within a single generation.
It is generally universal.
It is a reflection of individual differences.
It involves beliefs as well as inequality.
It carries over to the next generation.
It is generally universal.
It involves beliefs as well as inequality.
It carries over to the next generation.
What are three of the determinants of culture?
Multiple select question.
Political philosophy
Social structure
Trade philosophy
Economic philosophy
Marketing philosophy
Political philosophy
Social structure
Economic philosophy
The set of shared beliefs followed by Catholics and those of the Jewish faith represent their individual _____.
Multiple choice question.
religions
norms
folkways
attitudes
religions
How has social media affected group life?
Multiple choice question.
It has not identified the group but focuses on the individual.
It de-emphasizes group interaction.
It fosters face-to-face group activity.
It has emphasized the idea of an extended social group.
It has emphasized the idea of an extended social group.
All societies are divided on a hierarchical basis into social categories called social _____.
Multiple choice question.
mobility
folkways
identification
strata
strata
What are three examples of the “hidden curriculum” of schools?
Multiple select question.
Obedience to authority
Unnecessary focus on personal achievement
Math and literacy fundamentals
Dealing with competition
Respect for others
Dealing with competition
Respect for others
Obedience to authority
Which was not a factor contributing to Argentina’s prosperous economy in the early 1900s?
Multiple Choice
rich natural resources
a productive agricultural sector
an educated population
an emerging industrial sector
high barriers to foreign investment
high barriers to foreign investment
From 2003 to 2015, ___________ in Argentina.
Multiple Choice
government spending dropped
inflation declined
state intervention increased
productivity rose
state intervention increased
China, India, and Indonesia are expected to be among the world’s seven largest economies by 2050. Economic development in a country can be measured using
the current account.
Moore’s Law.
gross national income.
the human development index.
deregulation indices.
gross national income.
By 2050, India will be one of the largest economies in the world. A disadvantage of using data such as GNI and PPP to understand the attractiveness of India as an export or investment market is that they
ignore economic growth rates.
provide a static picture of development.
capture black economy data at the expense of real economic data.
ignore growth rates in other parts of the world that could be superior.
focus only on fluid elements in the economy and ignore the fixed variables.
provide a static picture of development.
India, China, and Indonesia have all focused on improving their education systems and implementing market reforms. Which of the following is true about education and economic development?
Amartya Sen would rank India, China, and Indonesia high on the political freedom index.
Innovation reforms to spur growth are not necessary in these countries given their commitment to education.
India, China, and Indonesia have recognized that investment in education is more important than economic freedom.
India, China, and Indonesia should rank higher on the Human Development Index as compared to countries that have not invested in education.
Investment in education will ultimately result in less global competition and an inward focus by these countries.
India, China, and Indonesia should rank higher on the Human Development Index as compared to countries that have not invested in education.
Which is not an accurate depiction of globalization?
The number of people living on farms has increased.
The benefits of globalization have not been equally shared.
White-collar workers can lose their jobs to robots.
Advances in technology are a major force in globalization.
The acquisition of skills is essential to employment today.
The number of people living on farms has increased.
Globalization has
resulted in large losses of white-collar jobs, but not blue-collar jobs.
had no real effect on net manufacturing.
caused blue-collar job losses, but not white-collar job losses.
negatively impacted both blue-collar and white-collar jobs.
had no measurable effect on agriculture.
negatively impacted both blue-collar and white-collar jobs.
The general acceptance by Russians of hierarchy and power differentials arising from social status reflects their
norms.
values.
folkways.
mores.
conventions.
values.
Recognizing that Russians typically only smile in response to something funny reflects an understanding of which part of Russia’s culture?
society
mores
folkways
values
stoicism
folkways
After many months of communicating via email and telephone, Jade is eager to meet her Russian colleague, Irina, at a trade show in St. Petersburg, Russia. Jade is upset and offended, however, when Irina fails to return her warm smile when they finally meet in person. Jade
should be embarrassed for Irina.
should be offended by Irina’s greeting.
might want to reevaluate her friendship with Irina.
is demonstrating a lack of cross-cultural literacy.
could consider speaking to Irina’s boss about her behavior.
is demonstrating a lack of cross-cultural literacy.
John is developing the training program for employees at his company’s newest fast food franchise in Moscow. In addition to training staff members on the appropriate food handling methods, John wants the employees in Moscow to follow the greeting protocol used in the United States of always saying hello and smiling at customers as they walk in the door. John is taking a(n) ___________ approach to training and managing the staff at the Moscow store.
polycentric
ethnocentric
geocentric
multicentric
transcentric
ethnocentric
In the video, the phrase “lost in translation” refers to
the situation that occurs when another language doesn’t have a word for something.
the misunderstandings that occur when people in different countries interpret a message differently than was intended.
sending a message in one language and translating it into another.
the multiple definitions a single word can have.
the use of unspoken language rather than spoken.
the misunderstandings that occur when people in different countries interpret a message differently than was intended.
Suppose a Japanese company has branch offices in Spain where Spanish is spoken at work, and France where French is spoken at work. Which is true?
It is essential to adopt a common language of business.
The home country societal language dominates in all managerial settings.
Cultural misunderstandings occur even when everyone is working toward the same goal.
Unspoken language encounters are more important than spoken encounters.
Societal cultural differences disappear because everyone shares a common organizational culture.
Cultural misunderstandings occur even when everyone is working toward the same goal.
According to the video, which would be the most beneficial quality for an international business manager?
having the ability to speak slowly and clearly
having a local office
having a local assistant to provide clarity
being able to speak more than one language
being able to understand the perspective of a receiver of a message
being able to understand the perspective of a receiver of a message
