IBE Lecture

1. (P4) Which of the following is not characteristic of globalization?

A. National economies are turning into independent economic systems.
B. Material culture is starting to look similar the world over.
C. Perceived distance is shrinking due to advances in transportation and
telecommunications.
D. Barriers to cross-border trade and investment are declining.

2. (P5) Since the collapse of communism at the end of the 1980s, the erstwhile communist
nations have transformed their economies by encouraging all of the following except
A. Privatizing state-owned enterprises.
B. Regulating markets
C. Increasing competition
D. Welcoming investment by foreign business.

3. (P9) The_______ is primarily responsible for policing the world trading system and
making sure nation-states adhere to the rules laid down in trade treaties signed by
member states.
A. International Development Association
B. World bank
C. International court of justice
D. World trade organization

4. (P10) The _______ was create in 1944 by 44 nations that met in Breton Woods, New
Hampshire to promote economic development.
A. World bank
B. International Trade Center
C. World Trade organization
D. United Nations

5. (P10) The institution, created in 1944 at Breton Woods, responsible for maintaining order
in the international monetary systems is the
A. IMF
B. WTO
C. UN
D. UNESCO
6. (P11) The ______ was established to remove barriers to the free flow of goods, services
and capital between nations.
A. UN
B. IMF
C. GATT
D. IDA

7. (P13) The reduction in the average traffic rates on manufactured products since 1950
implies all of the following except that
A. Firms are dispersing parts of their production process to global locations to drive
down production costs and increase product quality.
B. The economics of the world’s nation states are becoming more intertwined.
C. Nations are becoming increasingly independent of each other for important
goods and services.
D. The world has become significantly wealthier since 1950.

8. (p14) which of the following statements regarding cross-border trade and investment is
not true?
A. “Protection” from foreign competitors has been, at times, demanded by the United
States.
B. Forecasts indicate a return to the restrictive trade policies of the 1920s and 30s.
C. If trade barriers decline no further they will put a brake upon the globalization of both
markets and production.
D. It is not clear whether the political majority in the industrialized world favors further
reductions in trade barriers.

9. (P16) Technological innovations have facilitated all of the following except:

A. Globalization of production.
B. Globalization of markets.
C. Creation of electronic global marketplaces.
D. Creation of absolutely homogeneous consumer market.

10. (P19) In the 1970s, many Japanese firms invested in North America and Europe
A. To avoid a highly domestic competitive domestic market.
B. To exploit high domestic tariff barriers.
C. As a hedge against unfavorable currency movements.
D. To take advantage of low labor costs.
11. (P23) Identify the incorrect statement regarding the former communist nations of Europe
and Asia.
A. The economies of most of the former communist states are very strong and
developed.
B. Many of the former communist nations of Europe and Asia share a commitment to
free market economies.
C. As a result of disturbing signs of growing unrest and totalitarian tendencies, the risks
involved in doing business in these countries is very high.
D. For about half a century these countries were essentially closed to Western
International business.

12. (P24). Which of the following statement pertaining to changes in the global economy of
the 21st century is not true?
A. Barriers to the free flow of goods, services, and capital have been coming down.
B. Volume of cross-border trade and investment has been growing more rapidly than
global output.
C. National economics are becoming more independent and moving away from the
global economic systems.
D. As economics advance, more nations are joining the ranks of the developed world.

13. (P24) which of the following does not help create an economic system that is favorable to
international business?
A. Decreased privatization
B. Widespread deregulation
C. Open markets
D. Falling trade and investment barriers

14. (P28) If the critics of globalization are correct, all of the following things must be shown
except:
A. The share of national income received by labor, as opposed to the share received by
the owners of capital should have declined in advance nations.
B. Even though labor’s share of the economic pie may have declined, living standards
need not deteriorate if the size of the total pie has increased sufficiently to offset the
decline in labor’s share.
C. The decline in labor’s share of national income must be due to moving production to
low wage countries, as opposed to improving production technology and productivity.
D. Economic growth in the developed nations has offset the falls in unskilled
worker’s share of national income, raising their living standards.
15. (P29) Critics of globalization maintain that the apparent decline in real wage rates of
unskilled workers
A. Owes far more a technology-induced shift within advanced economies toward jobs
that require significant education and skills.
B. Is due to the migration of low wage manufacturing jobs offshore and
corresponding reduction in demand for unskilled workers.
C. Has been impacted most by technological change.
D. Can be checked by increasing society’s investment in education to reduce the supply
of unskilled workers.

16. (P42) Which of the following statements about political systems and their interrelated
dimensions is false?
A. Systems that emphasize collectivism tend toward totalitarianism.
B. Systems that place a high value on individualism tend to be democratic.
C. Democratic societies can emphasize a mix of collectivism and individualism.
D. It is impossible to have totalitarian societies that are not collectivist.

17. (P43) Social democracy:

A. As an ideology may prove to be more enduring than communism.
B. Has perhaps had it greatest influence in a number of democratic Asian countries.
C. Has had no influence in any democratic Western nation.
D. Had greatest influence in Eastern European nations like Poland, Czechoslovakia, and
Hungary.

18. (P43) Which of the following statements about socialism is false?

A. Modern socialists’ intellectual roots can be traced to Karl Marx.
B. Elements of socialist thought can be traced to Plato.
C. Socialist ideology is split into two camps- communists and individualists.
D. Socialism advocates for state ownership of the means of production

19. (P45) Identify the incorrect statement regarding individualism.

A. It advocates for a socialist political system
B. It promotes free market economics
C. It creates a pro-business environment
D. It translates into an advocacy for democratic political systems.
20. The shift toward a more integrated and interdependent world economy is referred to as
A. Economic integration
B. Economic interdependency
C. Globalization
D. Internationalization

21. The merging of historically distinct and separate national markets into one huge global
marketplace is known as
A. Global market facilitation
B. Cross-borders trade
C. Supranational market integration
D. The globalization of markets

22. Firms that are involved in international business tend to be

A. Large
B. Small
C. Medium sized
D. Large, small, and medium sized

23. Which is not a factor of production?

A. Trade
B. Land
C. Capital
D. Energy

24. The sourcing of good and services from around the world to take advantage of national
differences in the cost and quality of factors of production is called
A. Economies of scales
B. The globalization of production
C. Global integration
D. Global sourcing

25. Which organization is responsible for policing the world trading system?
A. The international monetary fund
B. The united nations
C. The world trade organization
D. The world bank
26. What is the single most important innovation to the globalization of markets and
production?
A. Advances in transportation technology
B. The development of microprocessor
C. Advances in communication
D. The internet

27. Which of these is not a concern of anti-globalization protesters?

A. Globalization raises consumer income
B. Globalization contributes to environmental degradation
C. Globalization in causing a loss of manufacturing jobs in developed countries
D. Globalization implies a loss of national sovereignty

28. (P49) In a __________ economy, certain sectors of the economy are left to private
ownership and free market mechanisms while other sectors have significant state
ownership and government planning.
A. Market
B. Private
C. Command
D. Mixed.

29. (P49) Which of the following statements about the legal systems of countries is false?
A. They can affect the attractiveness of a country as in investment site or market.
B. They can influenced by the prevailing political system of the country
C. They are almost the same of all countries.
D. They are of immense importance to international business.

30. (p55) identify the incorrect statement pertaining to intellectual property rights.
A. Its violation costs personal computer software firms revenues equal to $48 billion in
2007.
B. The protection of intellectual property rights is more or less the same in all
countries.
C. The enforcement of its regulations has often been lax.
D. Its violation has been very bad in China, where the piracy rate in 2007 ran at 82
percent.

31. (P61) The HDI is based on all of the following measures except:
A. Political freedom
B. Life expectancy at birth
C. Educational attainment
D. Whether average incomes are sufficient to meet the basic needs of life
32. (P64-65) identify the incorrect statement pertaining to innovation and entrepreneurship
A. They are the engines of growth
B. They required state ownership of all means of production.
C. They require a market company
D. They require strong property rights

33. (p88) during the 1960s and 1970s, class divisions in _________ raised the cost of doing
business there, relative to other. European countries.
A. Great Britain
B. Switzerland
C. Norway
D. Germany

34. (P88) which of the following is not true regarding culture?

A. Culture is static
B. Culture is evolving
C. It is system of values and norms that are shared among group of people
D. It involves the knowledge and belief of people

35. An act, as simple as shaking hands, when meeting new people is an example of
A. Value
B. Symbolic behavior
C. Mores
D. Social stratification

36. (P90) Japanese executive’s ritual of presenting a business card to a foreign business
executive is an example of
A. Mores
B. Values
C. Attitudes
D. Folkways

37. (P91) which of the following statements about values and norms of a culture is not true?
A. The values and norms of a society do not emerge fully formed.
B. They are the evolutionary product of a number of factors
C. They are influenced by religion
D. They do not influence social structure.
38. (P97) according to sociologists, which of the following branches of Christianity has the
most important economic implications?
A. Catholic
B. Orthodox
C. Protestant
D. Mormon

39. (p105) Three values central to the confusion system of ethics have very important
economic implications. Which of the following is not one among them?
A. Loyalty
B. Rule-based law
C. Reciprocal obligations
D. Honesty in dealings with others.

40. (p111) Hofstede’s dimension of Confucian dynamism

A. Captures attitudes toward time, persistence ordering by status, protection of
face, respect for tradition, and reciprocation of gifts and favors
B. Focuses on how a society deals with the face that people are unequal in physical and
intellectual capabilities.
C. Explores the relationship between the individual and his/her fellows.
D. Looks at the relationship between gender and the ability to accept ambiguous
situations

41. (P114) The belief in the superiority of one’s own culture is known as
A. Ethnocentrism
B. Egocentrism
C. Polycentrism
D. Theocentricism

42. (p124) identifying the incorrect statement regarding ethical issues in international
business
A. They are often rooted in the fact that political systems, law, economic development,
and culture of nations vary significantly.
B. Human rights and environmental regulations are some of the common ethical issues.
C. Ethical practices of all nations are similar in nature.
D. Managers in multinational firms need to be particularly sensitive to differences in
business practices because they work across national borders.
43. (p125) to guard against abuse of employment practices in other nations, multinationals
should do all of the following except
A. Establish minimal acceptable standards that safeguard the basic rights and dignity of
employees.
B. Adhere to working conditions of the host country if they are clearly inferior to
those in a multinational’s home nation
C. Audit foreign subsidiaries and subcontractors on a regular basic to make sure
established standards are met
D. Take action to correct unacceptable behavior

44. (P127) Identify the incorrect statement pertaining to foreign multinational doing business
in countries with repressive regimes
A. Inward investment by multinationals can be force for economic, political, and social
progress ultimately improves the rights of people in repressive regimes.
B. No multinational does business with nations that lack the democratic structures
and human rights records of developed nations.
C. Multinational investment cannot be justified on ethical grounds in some regimes due
to their extreme human rights violations.
D. Multinational adopting an ethical stance can at times, improve human rights in
repressive regimes

45. (P130) the convention on Combating Bribery of Foreign Public Officials in International
Business Transactions excludes
A. Speed payments to secure contracts that would otherwise not be secured.
B. Grease payments to gain exclusion preferential treatment.
C. Facilitating payments made to expedite routine government actions.
D. Payments to government officials for special privileges.

46. (P132) Ethical dilemmas exist because of all the following reasons except
A. Many real world decisions are complex and difficult to frame.
B. Decisions may involve first, second, and third order consequences that are hard to
quantity
C. Doing the right thing, or knowing what right thing might be, is often far too easy
D. They are situations in which none of the available alternatives seem ethically
acceptable.

47. (P136) According to __Friedman Doctrine_____ the social responsibility of business is

to increase profits, so long as the company stays within the rules of law.
48. (P137) Cultural relativism suggests that
A. Ethics are nothing more than the reflection of culture and that a firm should
adopt the ethics of the culture in which it is operating
B. The only social responsibility of business to increase profits
C. Managers of a firm should not make decisions regarding social investments
D. A multinational’s home country standards of ethics are always appropriate to follow
in foreign countries.

49. (P137) the __Righteous Moralist___ suggests that a multinational’s home country
standards of ethics are the appropriate ones for companies to follow in foreign countries.

50. (P138) According to the ______Naive immoralist__ if the firms in a host nation do not
follow ethical norms then the manager of a multinational should also not follow ethical
norms there.

51. (p139) the __Kantian Ethics to ethics suggests that people should be treated as ends and
never purely as means to the end of others.

52. (P137) Child labour is permitted and widely employed in country X. A multinational
company entering Country X decides to employ minors in its subsidiary, even though it is
against the multinationals home country ethics, which approach to business ethics would
justify the actions of the multinational company?
Cultural relativism

53. (P138) The Utilitarian approaches_____ to business ethics suggests that the moral
worth of actions or practices is determined by their consequences.

54. (P139) identify the correct statement about the right theories
A. Human beings have fundamental rights and privileges that transcend national
boundaries.
B. The moral worth of actions or practices is determined by their consequences
C. People should be treated as ends never purely as means to the ends of others.
D. Minimum levels of morally acceptable behavior should be established.

55. (P140) article 1 of the United Nations’Universal Declaration of Human Rights states “all
Human beings are born free and equal in dignity and rights”
This best echoes __Kantian___ Ethics
56. (P141) according to John Raawls
A. Each person should be permitted to maximum amount of basic liberty
compatible with a similar liberty for others.
B. Freedom of speech and assembly is the single most important component in a justice
systems
C. Equal basic liberty is only possible in a pure market economy
D. Inequalities in a justice system are not to be tolerant under any circumstances.

57. _Moral Imagination__ means standing in the shoes of a stakeholder and asking how a
proposed decision might impact that stakeholder

58. Establishing __Moral intent__ involves a business resolve to place moral concerns
ahead of other concerns in cases where either the fundamental rights of stakeholders or
key moral principles have been violated.

59. (P145) which of the principle enables managers to walk away from decision that is
profitable but unethical?
Moral courage

60. According to _____ a company’s home country standards of ethics are the appropriate
ones to follow in foreign countries
A. The righteous moralist
B. The naïve immoralist
C. The friedman doctrine
D. Cultural relativism

61. ________ recognize that human beings have fundamental rights and privileges which
transcend national boundaries and cultures.
A. Kantian ethics
B. Utilitarian approaches
C. Straw men
D. Rights theories

62. The _____ suggests that everyone is imagined to be ignorant of all his or her particular
characteristics.
A. Tragedy of the commons
 B. Veil of ignorance
C. Code of ethics
D. The universal declaration of human rights
63. What is a company’s formal statement of ethical priorities called?
A. Mission statement
B. Code of ethics
C. Code of values
D. Organizational culture

64. Abstract ideas about what a group believes to be good, right, and desirable are called
A. Norms
B. Values
C. Folkways
D. Mores

65. The basic social organization of a society is its

A. Culture
B. Social strata
C. Social structure
D. Caste systems

66. The group is the primary unit of social organization in

A. Japan
B. The united states
C. Switzerland
D. Mexico
67. Which of the following is not characteristic of individualism?
A. Individual achievement
B. Low managerial mobility
C. Low company loyalty
D. Entrepreneurial behavior

68. ___________ focuses on how society deals with the fact that people are unequal in
physical and intellectual capabilities.
A. Power distance
B. Individualism versus collectivism
C. Uncertainty avoidance
D. Masculinity versus femininity

69. _______ believes the socialism can only be achieved through violent revolution and
totalitarian dictatorship
A. Communists
 B. Social democrats
C. Social republicans
D. Plato
70. A form of government in which one person or political party exercises complete control
over all spheres of human life and prohibits opposing political parties is
A. A democracy
B. A representative democracy
C. Totalitarianism
D. Socialism

71. __________ is found in states where political power is monopolized by a party according
to religious principles
A. Tribal totalitarianism
B. Right wrong totalitarianism
C. Theocratic totalitarianism
D. Communist totalitarianism

72. in which type of economic system are all productive activities privately owned?
A. mixed economy
B. command economy
C. representative economy
D. market economy

73. which type of law is based on tradition, precedent, and custom?

A. Civil law
B. Common law
C. Theocratic law
D. Contract law

74. Design and names by which merchants or manufacturers designate and differentiate their
products are called
A. Trademarks
B. Copyrights
C. Patents
D. Name brands

75. Which is not a primary determinant of a nation’s rate of economic development?

A. Its political system
B. Its economic system
C. Its geography
D. Its currency
76. (P6) the most global markets currently are markets for
A. Services
B. Consumers goods
C. Consumers durables
D. Industrial goods

77. (P92) Emphasis on individualism results in all of the following disadvantages except
A. Managers tend to develop good general skills but lack the company specific
experience
B. Difficulty in building teams within an organization to perform collective tasks.
C. Executive are not exposed to different ways of doing business.
D. Difficulty to achieve corporate both within a company and between companies.

78. (P93) it has been argued that the success of Japanese enterprises in the global economy
has been based partly on all of the following except
A. The diffusion of self- managing work teams.
B. The close cooperation among different functions within Japanese companies.
C. The high degree of managerial mobility between companies.
D. The cooperation between a company and its suppliers on issues such as design,
quality control, and inventory reduction

79. (P96) In China, classy divisions

A. Have historically been of no importance.
B. Were strengthened during the high point of communist rule.
C. Increased even during reforms of the late 1970s and early 1980s.
D. Were weakened because of a rigid system of household registration.

80. (P109) the individualism vs. collectivism dimension of Hofstede’s study explored
A. The extent to which different cultures socialized their members into accepting
ambiguous situations and tolerating uncertainty
B. The relationship between gender and work roles
C. How a society deals with the fact that people are unequal in physical and intellectual
capabilities
D. The relationship between the individual and his/her fellows
81. (P109) Hofstede’s uncertainty avoidance dimension considered
A. The extent to which different cultures socialized their members into accepting
ambiguous situations and tolerating uncertainty
B. The relationship between gender and work roles
C. How a society deals with the fact that people are unequal in physical and intellectual
capabilities
D. The relationship between the individual and his/her fellows