Module 2

Question 1

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

Answer 1

Gross national income

Question 2

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

Answer 2

Educational attainment

Life expectancy at birth

Average incomes

Question 3

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

Answer 3

innovation

Question 4

Which economic system is MOST conducive to innovation and entrepreneurial activity?

Mixed economies

Planned economies

Market economies

Command economies

Answer 4

Market economies

Question 5

It is ______________________ for the government to expropriate profits from innovation through excessive taxation.

Answer 5

legal

Question 6

____________ measures the total annual income received by residents of a country.

Gross national income

Gross domestic product

Purchasing power parity

Human development index

Answer 6

Gross national income

Question 7

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

Answer 7

undemocratic governments

Question 8

The Human Development Index is based on

environmental capacity levels.

life expectancy at birth.

economic regression.

the presence of political regimes.

Answer 8

life expectancy at birth.

Question 9

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.

Answer 9

adoption of a democratic government.

Question 10

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.

Answer 10

goes hand-in-hand with entrepreneurship.

Question 11

Jeffrey Sachs argued that the ______ of a nation can have an impact on economic development.

sociology

geography

religion

education

Answer 11

geography

Question 12

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.

Answer 12

totalitarian governments failed and were replaced by democratically elected governments usually supportive of free market capitalism.

Question 13

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.

Answer 13

risk of expropriation of profits.

Question 14

Property rights are only truly secure when a _____ exists.

mature democratic state

totalitarian regime

demand economy

planned economy

Answer 14

mature democratic state

Question 15

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

Answer 15

The middle class

Question 16

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.

Answer 16

Huntington believed the world would be split into different civilizations with their own ideology.

Question 17

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.

Answer 17

Country A has the benefit of nutrient-rich soil which provides a competitive advantage for the country’s tobacco industry.

Question 18

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.

Answer 18

There is more emphasis on the free market economy approach and less on centrally planned and mixed economic models.

Question 19

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

Answer 19

failure of totalitarian regimes to provide economic progress to the majority of their citizens.

Question 20

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

Answer 20

Taxation rules

Foreign investment regulations

Trade policy

Labor freedom

Question 21

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

Answer 21

Deregulation

Question 22

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.

Answer 22

liberal democracy has triumphed and will become the final form of human government.

Question 23

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.

Answer 23

achieves sustained high economic growth rates.

Question 24

______ involves removing legal restrictions, typically in the economic sphere.

Isolationism

Deregulation

Containment

Logistics

Answer 24

Deregulation

Question 25

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

Answer 25

late-mover disadvantages

Question 26

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

Answer 26

Insufficient legal system

Question 27

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.

Answer 27

the battle between the ideologies of collectivism and individualism is less distinct today.

Question 28

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.

Answer 28

early entrants build brand loyalty and gain experience in a country’s business practices.

Question 29

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.

Answer 29

cross-cultural literacy.

Question 30

The ideas about what a group believes to be good, right, and desirable are called _____.

society

norms

values

culture

Answer 30

values

Question 31

The routine conventions of living, thinking, and acting in a group are called ______.

folkways

attitudes

values

norms

Answer 31

folkways

Question 32

There _____ a strict one-to-one relationship between one culture and a nation-state.

is

has always been

sometimes is

is not

Answer 32

is not

Question 33

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

Answer 33

True

Question 34

The basic social organization of a society is called its social _____.

Multiple choice question.

folkway

nation

structure

orientation

Answer 34

structure

Question 35

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

Answer 35

norm

Question 36

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

Answer 36

groups

Question 37

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

Answer 37

folkway

Question 38

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.

Answer 38

It is generally universal.
It involves beliefs as well as inequality.
It carries over to the next generation.

Question 39

What are three of the determinants of culture?

Multiple select question.

Political philosophy

Social structure

Trade philosophy

Economic philosophy

Marketing philosophy

Answer 39

Political philosophy
Social structure
Economic philosophy

Question 40

The set of shared beliefs followed by Catholics and those of the Jewish faith represent their individual _____.

Multiple choice question.

religions

norms

folkways

attitudes

Answer 40

religions

Question 41

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.

Answer 41

It has emphasized the idea of an extended social group.

Question 42

All societies are divided on a hierarchical basis into social categories called social _____.

Multiple choice question.

mobility

folkways

identification

strata

Answer 42

strata

Question 43

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

Answer 43

Dealing with competition
Respect for others
Obedience to authority

Question 44

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

Answer 44

high barriers to foreign investment

Question 45

From 2003 to 2015, ___________ in Argentina.
Multiple Choice
government spending dropped
inflation declined
state intervention increased
productivity rose

Answer 45

state intervention increased

Question 46

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.

Answer 46

gross national income.

Question 47

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.

Answer 47

provide a static picture of development.

Question 48

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.

Answer 48

India, China, and Indonesia should rank higher on the Human Development Index as compared to countries that have not invested in education.

Question 49

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.

Answer 49

The number of people living on farms has increased.

Question 50

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.

Answer 50

negatively impacted both blue-collar and white-collar jobs.

Question 51

The general acceptance by Russians of hierarchy and power differentials arising from social status reflects their

norms.
values.
folkways.
mores.
conventions.

Answer 51

values.

Question 52

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

Answer 52

folkways

Question 53

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.

Answer 53

is demonstrating a lack of cross-cultural literacy.

Question 54

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

Answer 54

ethnocentric

Question 55

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.

Answer 55

the misunderstandings that occur when people in different countries interpret a message differently than was intended.

Question 56

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.

Answer 56

Cultural misunderstandings occur even when everyone is working toward the same goal.

Question 57

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

Answer 57

being able to understand the perspective of a receiver of a message