1.

Businessesofallsizesareincreasinglylookingforglobalopportunitiesbecause

a. Tradebarriersarefalling.
b. Moneyisflowingmorefreelyacrosscountries.
c. Theworldisbecomingoneinterconnectedeconomy.
*d. Alloftheabove.

2. Globalizationis

*a. Thetrendofbusinessesexpandingbeyondtheirdomesticboundaries.
b. Increasingaveragetemperatureovertheglobe.
c. Theincreaseduseofglobalsatellitecommunicationsystems.
d. Astrategyofdevelopinguniqueproductsforeachnationintheworld.

3. Whichofthefollowingwouldnotbeconsideredabasicsourceofglobalization?

a. Similarcustomerneeds
b. Fallingoftradebarriers
c. Advancesincommunicationtechnology
*d. Differentiationamongcountries

4. Multinationalmanagementis

a. Astrategyofdevelopingsimilarstrategiesfordifferentcountries.
b. Thetrendofbusinessexpandingbeyondlocalboundaries.
*c. Theformulationanddesignofmanagementsystemstosuccessfullytakeadvantage
ofinternationalopportunitiesandrespondtointernationalthreats.
d. Noneoftheabove

5. Accordingtothetext,themultinationalcompany

a. Isrequiredtobeapubliccorporation.
*b. Isanycompanythatengagesinanybusinessfunctionacrossborders.
c. Mustselloverseastobeatruemultinational.
d. Mustbelarge.

6. Whichofthefollowingisnotaclassificationofeconomicsystemsnotedinthetext?

*a. Domesticeconomies
b. Transitioneconomies
c. LDCs
d. Emergingmarkets
7. Transitioneconomiesare

a. MatureeconomieswithsubstantialpercapitaGDPandinternationaltrade.
b. LedbyHongKong,Singapore,SouthKorea,andTaiwan.
*c. Countrieschangingfromgovernmentcontrolledorcommunisticeconomiestoam
orefreemarketcapitalism.
d. Noneoftheabove

8. Emergingmarketsinclude

a. OECDcountries.
*b. Brazil,China,Russia,India.
c. Korea,JapanandUSA.
d. Hungary,Poland,Slovakia.

9. Developingeconomiesare

a. MatureeconomieswithsubstantialpercapitaGDPandinternationaltrade.
*b. HongKong,Singapore,andTaiwan.
c. Countriesintheprocessofchangingtheireconomiesfromgovernmentcontrolledto
amorefreemarketcapitalism.
d. Noneoftheabove

10. Emergingmarketsaredefinedasthosethatare:

*a. Growingrapidly.
b. Transitioningfromacommunistcontrolledeconomytocapitalism.
c. Seentohaveimpactonlysporadically.
d. Enjoyingamatureeconomy.

11. MajorregionaltradeagreementsincludeallofthefollowingEXCEPT

a. EU.
b. NAFTA.
c. APEC.
*d. PROTEC.

12. TheeconomicagreementthatlinkstheUS,Canada,andMexicoinaneconomicblocthatal
lowsfreerexchangeofgoodsandservicesisknownasthe

a. EU.
b. OPEC.
c. APEC.
*d. Noneoftheabove
13. TheWorldTradeOrganization:

a. Isamajortradingcompany.
*b. SucceededtheGATTagreements.
c. Collectsdutiesformembercountries.
d. Isaconsultinggroupforcompanieswhowishtoengageininternationaltrade.

14. Examplesofdevelopedeconomieswouldinclude:

*a. TheU.S.andJapan.
b. HungaryandPoland.
c. ArgentinaandBrazil.
d. HongKongandSingapore.

15. Accordingtoyourtext,FDImeans

a. Foreigndevelopmentinitiatives.
b. VariousinvestmentpoliciesoftheU.S.government.
*c. Aforeigncompanyhasanownershippositioninacompanyinanothercountry.
d. Atypeofinternationalnegotiationstrategy.

16. Thetwoformsofriskdiscussedinthetextinclude

a. Exchangerateriskandcorruptionrisk.
b. Businessriskandsocialrisk.
c. Salesriskandemploymentrisk.
*d. Economicandpoliticalrisk.

17. Economicrisksdiscussedinthetextinclude

a. Anythingagovernmentmightdoornotdothatmightadverselyaffectacompany.
b. Thelikelihoodoflosingmoneyifoneinvestsinstocks.
*c. Exchangeandinterestrates.
d. Expropriatingofforeignfirmsbythelocalgovernmentwithoutanycompensation.

18. Anythingthatagovernmentmightdotoaffectamultinationaladverselyisknownas

a. Exchangeraterisk.
b. Businessrisk.
c. Salesrisk.
*d. Politicalrisk.
19. .Aglobalproductorserviceis

a. Adaptedforeachcountry'suniqueneeds.
*b. Asimilarproductorserviceforallcustomersthroughouttheworld.
c. Aproductorservicethatrequiresbilingualcustomers.
d. Productsdevelopedforuseoutsidethecountry.

20. WhichofthefollowingstatementsabouttheInternetandInformationTechnologyistrue?

*a. TheInternetisbenefitingcompaniesworldwide.
b. Electroniccommunicationsdoesnotallowcompaniestocommunicatewithlocations
aroundtheworld.
c. Informationtechnologyisnotencouragingaborderlessfinancialmarket.
d. Informationtechnologydoesnotallowthesharingofinformationaroundtheworld.

21. Thefreemarketreformsinemergingcountriesarecreatingapotentialgroupof

*a. newcompetitors.
b. oldcompetitors.
c. subsidizedfirms.
d. governmentcompanies.

22. Whichofthefollowingstatementsistrueaboutprivatization?

*a. Developingnationshavethehighestrateofprivatization.
b. Theleadingprivatizersintheworlddonotfacecompetition.
c. Privatizationisthesaleofprivatebusinesstogovernmentinvestors.
d. Privatizationisabsentintransitioneconomies.

23. Globalcustomers:

a. Searchforgovernmentcontrolledenterprises.
b. Providereducedgovernmenttradeprotection.
*c. Searchtheworldfortheirsupplieswithoutregardtonationalboundaries.
d. Encouragelargefirmstoselltothem.

24. Globaltradehasthisimportanteffectondevelopingnewcompetitors.

*a. Itfacilitatesthetransferoftechnology,allowingformerassemblerstobecomecreat
ors.
b. Itfacilitatesthetransferofknowledge,allowingformerbuilderstobecomeassemble
rs.
c. Itreducescompetition.
 d. Itreducesrivalry.

25. Globalstandardsforproducts

a. Arevirtuallyimpossibleintechnicalindustries.
*b. Refertohavingoneproductstandardforallcountries.
c. Putscompaniesatastrategicdisadvantage.
d. Alloftheabove

26. Accordingtotheexpertscitedinyourtext,thenextgenerationofglobalmanagerswillneed
allofthefollowing,EXCEPT:

a. Emotionalintelligence
b. Theabilitytoworkwithpeoplefromdifferentculturalbackgrounds
*c. Poornegotiationskills
d. Alocalmindset

27. Aglobalmindsetrequiresmanagerstothinkgloballybut

*a. actlocally.
b. haveemotionalintelligence.
c. understandnationalcultures.
d. needaccomplishednegotiationskills.

28. Thestrategicapproachtomultinationalmanagement

a. Involvesthedevelopmentofonestrategyforallcountries.
b. Focusesontheskillsandaptitudesthatthenextgenerationofglobalmanagerswilln
eed.
*c. Isconcernedwithdevelopingstrategiesthatdealwithoperatinginmorethanoneco
untryandculture.
d. Noneoftheabove

29. Whichofthefollowingstatementsaboutglobalizationisfalse?

*a. Globalizationisasimpleevolutionaryprocess.
b. Notalleconomiesoftheworldarebenefitingequallyfromglobalization.
c. Terrorism,warsandSARShaslimitedandevenreversedtheeffectsofglobalization.
d. Alloftheabovestatementsarefalse.

30. Aggressivemultinationalcompaniesfromemergingmarketsare

*a. expandingbeyondtheirownborders.
 b. stayingwithintheirownnationalborders.
c. helptransitionfromacommunisttoacapitalistsystem.
d. unabletocompetewithwesterncompanies.

31. ThesetoftechnicalstandardsdevelopedbytheInternationalOrganizationforStandardizati
onareknownas

a. ISO92.
b. ISO14000.
*c. ISO9001:2000.
d. Noneoftheabove

32. Oneofthemajorreasonswhyglobalcompaniesseektodevelopstandardproductsisbecaus
e

*a. Astandardproductallowsthecompanytosavemoneybecausethesameproductca
nbesoldanywhere.
b. Acompanycanbemoreresponsivetolocalculturalconditions.
c. Itallowsthecompanytoinvestmoreinresearchanddevelopment.
d. Alloftheabove

33. Emergingmarketsare

a. LocatedmostlyinAfricaandSouthAmerica.
b. Similartodevelopedeconomies.
*c. Thosecountriesbetweendevelopedanddevelopingcountriesthatpresenttremendo
usopportunities.
d. havefreetradeareas.

34. WhichofthefollowingstatementsregardingtheEuropeanUnionistrue?

a. TheEuropeanUnionnolongerexists.
b. TheEuropeanUnionincludesVenezuela.
*c. TheEuropeanUnionhasacommoncurrency.
d. Alloftheabovearetrue.

35. Futuretrendsindicatethat_____mattersmorethansizeofthecompany.

a. location
b. price
*c. flexibility
d. ahighstandard
36. Accordingtothetext,allofthefollowingincludesfactorsthatwillshapethefuturebusines
senvironmentEXCEPT

a. Blurringofindustrybarriers.
b. Findingyourniche.
*c. Abilitytofindcheaplabor.
d. Emphasisoninnovationandthelearningorganization.

37. Thebestdefinitionofmultinationalmanagementincludeswhichofthesefactors:

a. Theformulationofstrategiesandmanagementsystems.
b. Designedtotakeadvantageofinternationalopportunities.
c. Andtorespondtointernationalthreats.
*d. Alloftheabove.

38. MultinationalcompaniesaredefinedbyallofthesefactorsEXCEPT:

a. Engaginginbusinessbeyonditsdomesticborders.
b. Theymaybeofanysize.
c. Theymaybecorporations.
*d. Theymustbepubliccorporations.

39. Thelargestcompanyintheworldis:

a. WalMartStores.
b. BP.
*c. RoyalDutchShell.
d. Chevron.

41. Thebestexampleofaregionaltradeagreementthatincludesdevelopedcountriesis

a. CARICOM
b. ECO
*c. EU
d. UMA

42. Environmentalistsareconcernedthatfreetradeencourageslargemultinationalcorporations
to

a. overlookpoorcountriesintheirexpansionofproduction.
b. concentrateenvironmentaldamageintheirhomecountrywheretheyhaveinfluence.
c. becometooconcernedabouttheenvironmentandoverlooktheneedsoftheglobalec
onomy.
*d. moveenvironmentallydamagingproductiontopoorcountries.
43. Whichofthefollowingwasfirsttobeginnegotiationstolimitlimitworldwidetariffs?

*a. GATT
b. WTO
c. EU
d. NAFTA

44. IssuesthathavecreatedproblemsforsomeoftheBRICcountriesinclude

a. economicdownturnsorareductionintheironcerapidrateofgrowth.
b. corruption
*c. bothaandbabove.
d. anethicalpoliticalandeconomicenvironmentwithgrowthsorapidthatothercountri
esmayinvadethem.

45. The_________haspositivelycontributedtoglobalization.

a. factthatallmultinationalcorporationshavetheirhomebaseinthemostdevelopedna
tionsofEuropeandNorthAmerica.
*b. internationaldispersalofspecializedhumanandnaturalresourcesneededforvariou
sstagesofproduction
c. effortstoachievenationalselfsufficiency
d. AandCabove

46. Discusshowanycompanycanbecomeamultinationalcompany.Whataresomeoftheopti
onsavailabletocompaniesthatallowthemtouseinternationalmarketsandlocationscompetitive
ly?

47. Discusssomereasonswhyreductionsinworldtradebarriersaredrivingtheworldtowarda
globaleconomy.

48. Discussatleasttwomajorforcesthataredrivingtheworldtowardaglobaleconomy.

49. HowistheInternetandInformationtechnologyhelpingcompaniesdealwithaglobalecono
my?HowistheInternetandInformationtechnologyhelpingsmallcompaniesandevencompani
esfrompoorernations?

50. Whatiscorporatesocialresponsibility?Whyarefirmstryingtobecomesociallyresponsibl
e?
51. Discussthedifferencesbetweenforeigntradeandforeigndirectinvestment.

52. Whataresomeofthereasonswhyglobalizationandfreetradearebeingcriticized?Doyou
thinkthatfreetradeishelpingallcountries?Whyorwhynot?

53. Lookattheinformationontheworldsleadingexportersdiscussedinthetext.Doyouthink
thesetrendswillcontinueinthefuture?Why?

54. Discussthecharacteristicsofanextgenerationofmultinationalmanagers.Howcanyoude
velopthosecharacteristicsthrougheducationandexperience?

55. Whyshouldmultinationalmanagementbestudied?Whataresomeoftheelementsofastrat
egicapproachtomultinationalmanagement?

1. AllthefollowingistrueaboutcultureEXCEPT

a. Cultureisthesharedbelief,norms,andvaluesthatguideeverydaylifeofagroup.
b. Cultureispassedfromgenerationtogenerationthroughnorms,values,andbeliefs.
*c. Cultureisalwaysdirectlyobservable.
d. Cultureisverypervasiveinsocieties.

2. ThecorrectdefinitionsofthelevelsofcultureincludealloftheseEXCEPT:

a. Thenationalculture,dominantwithinthepoliticalboundariesofanationstate.
*b. Thebusinessculture,uniquetoeachbusiness.
c. Theorganizationalculture,sharedbymembersofanorganization.
d. Theoccupationalculture,sharedbythoseinthesameoccupation.

4. AllofthefollowingaredimensionsofHofstedesModelofNationalCultureEXCEPT:

*a. Poweravoidance.
b. Uncertaintyavoidance.
c. Masculinity.
d. Longtermorientation.

5. Internationalmanagementmaybeinfluencedbywhichofthefollowinglevelsofculture?
 a. National
b. Business
c. Organization
*d. Alloftheabove

6. AspectsofthebusinesscultureinChinaincludealloftheseEXCEPT:

a. Businessmovesmoreslowly.
b. OneshouldrespectChinesebusinessetiquette.
*c. Itisimportanttopraiseindividualswhoexcelled.
d. TheChinesevalueharmonyandorder.

7. Organizationalculturereferstothe

*a. Setofimportantunderstandingsthatmembersofanorganizationshare.
b. Expectedwaysofbehavingforpeopleinthesameoccupationalgroup.
c. Valuesandbeliefspertainingtodoingbusinesswithaspecificcompany.
d. Noneoftheabove

8. Occupationalcultures

*a. Arethenorms,values,beliefs,andexpectedwaysofbehavingforpeopleinthesam
eoccupationalgroup.
b. Arethesetofimportantunderstandingsthatmembersofanorganizationshare.
c. Arenorms,values,andbeliefsthatpertaintoallaspectsofdoingbusinessinacountr
y.
d. Arethedominantcultureswithinacountry.

9. Somepeoplebelievethatthenorms,values,andbeliefsoftheirownculturerepresenttheonl
ycorrectwaysofdealingwiththeworld.Thisiscalled

a. Highpowerdistance.
b. Stereotyping.
c. Androgyny.
*d. Ethnocentrism.

10. Culturalrelativismrepresents

*a. Thebeliefthatallculturesarevalidandethicalresponsestotheproblemsofliving.
b. Thebeliefthatsomeculturesarerelativelybetterthanothers.
c. Thebeliefthatyourowncultureisthebest.
d. Thedegreeofsimilaritybetweenbusinessandnationalcultures.
11. AnewexpatriatemanagerlocatedinIndiareportstoyouthatallofhersubordinatelocalm
anagerslackinitiativeandwillonlydowhatshetellsthemtodo.YourealizethatmostIndianma
nagersexpectsuperiorstotellthemwhattodo.Youadviseherofthis,butalsocautionthenew
managertoavoid:

a. Rationalization.
*b. Stereotyping.
c. Uncertaintyavoidance.
d. Ethnocentrism.

12. OnwhichofHofstede'svaluedimensionsdoestheU.S.rankhighest?

a. Masculinity
*b. Individualism
c. Patriotism
d. Powerdistance

13. Highpowerdistancecountrieshavenorms,values,andbeliefssuchas

a. Itisbesttoexercisepowerprivately.
*b. Everyonehasaplace,somearehighandsomearelow.
c. Aleadershoulddevelophisorhersubordinates.
d. Leadersaremadeandnotborn.

14. Countrieshighonuncertaintyavoidancehavenorms,values,andbeliefssuchas

a. Debateshelpyoufindthetruth.
b. Deviantpeopleshouldbetolerated.
c. Lackofrulesintheworkplaceisgood.
*d. Expertsandauthoritiesareusuallycorrect.

15. WhichofthefollowingbestdescribesU.S.culturewithregardtoindividualism?

a. LowerthanmanyEuropeannations
*b. Highestobservedsofar
c. AboutthesameasJapan
d. Slightlyaboveaverage

16. Anemphasisonleadershipstylesthatappealtodutyandcommitmenttogroupgoalsarefou
ndprimarilyincountrieswith

a. Lowmasculinity.
b. Lowuncertaintyavoidance.
 c. Shorttermorientations.
*d. Highcollectivisim(lowindividualism).

17. Trainingforconformityandobedience,withvaluationsbasedoncomplianceandtrustworth
inesscharacterizecountrieswith

a. Lowpowerdistance.
*b. Highpowerdistance.
c. Highindividualism.
d. Shorttermorientations.

18. Cultureswithhighpowerdistancevaluesprobablyhave

a. Participativeleadership.
b. Decentralizeddecisionmaking.
*c. Largewagedifferencesbetweenmanagementandworkers.
d. Managersselectedbyeducationalachievement.

19. Senioritytendstodominateevaluationandpromotionin

a. Shorttermorientedcultures.
*b. Cultureshighonuncertaintyavoidanceandlowonindividualism.
c. Ethnocentriccultures.
d. Doingratherthanbeingcultures.

20. Peoplefrom________countrieswouldprobablyfeelmostcomfortablewithanautocratic(t
heoryX)taskdirectedstyleofleadership.

a. Highmasculinity
b. Highpowerdistance
c. Highuncertaintyavoidance
*d. Alloftheabove

21. Aculturewhichhasdominantvaluesofsuccess,money,andmaterialthingsisprobably

a. Lowonpowerdistance.
b. Lowonindividualism.
*c. Highonmasculinity.
d. Highonlongtermorientation.

22. IncountriesthatrankhighonHofstede'smasculinityindex

a. Peoplepreferashortworkingdaytogethometotheirfamilies.
 b. Peoplefeelmorecomfortableinsmallorganizations.
c. TheoryXmanagementisrejectedstrongly.
*d. Workiscentraltolifeandjobrecognitionisveryimportant.

23. Inauniversalisticculture,therightwaytotreatpeopleisbasedon

a. Personalrelationships.
b. Principlesofharmonywithinthegroup.
*c. Abstractprinciplessuchasrulesoflawandreligion.
d. Acceptingtheuseofemotions.

24. Whichofthe7dculturaldimensionsrepresentstheextenttowhichanindividual'spersonal
lifeisinvolvedinhis/herworkrelationships?

a. Neutralversusaffective
b. Achievementversusascription
c. Timeorientation
*d. Specificversusdiffuse

25. Theachievementversusascriptiondimensionaddresses

a. Theextenttowhichanindividual'slifeisinvolvedwithwork.
*b. Themannerbywhichasocietygivesstatus.
c. Thewayaculturedealswiththepast,present,andfuture.
d. Thebeliefpeoplehaveincontrollingtheirfate.

26. Expressionsofanger,laughter,gesturing,andemotionaloutburstsareconsideredacceptable
in

a. Specificcultures.
b. Diffusecultures.
c. Neutralcultures.
*d. Affectivecultures.

27. Whichofthefollowingstatementsistrueregardingafutureorientedsociety?

a. Managersandworkersdonotnecessarilybelievethathardworkcanleadtofuturesu
ccess.
b. Peoplebelievetheycancontrolnature.
*c. Organizationalchangeisconsiderednecessaryandbeneficial.
d. Individualscannotinfluencethefuture.

28. Incountrieswhereitisbelievedthatnaturedominatespeople,
 a. Managersarelesslikelytobefatalistic.
b. Managersemphasizeplanningandscheduling.
c. Managersactivelytrytochangesituations.
*d. Managersbelievethattheymustacceptsituationsratherthanchangingthem.

29. Theabilitytointeracteffectivelyinmultipleculturesisknownas

a. Trustworthiness.
*b. Culturalintelligence.
c. Culturalrelativism.
d. Noneoftheabove

30. Discussingculturalparadoxes,thetextindicatesthatalthoughtheUSscoresveryhighonin
dividualism,italsohasthehighestpercentageof

a. unmotivatedpopulation.
b. uncaringseniors.
c. homelesspeople.
*d. charitygivingintheworld.

31. Aculturalparadoxisdefinedas:

a. Groupsituationsdefineculturalprescriptions.
b. Individualsituationsdefineculturalprescriptions.
c. Groupsituationscontradictculturalprescriptions.
*d. Individualsituationscontradictculturalprescriptions.

32. Whenhiringformanagerialjobsinhighpowerdistancecountries,preferenceisgenerallygi
ventoindividuals

*a. havingahighsocialclassoradegreefromaneliteuniversity.
b. fromallsocialclasses.
c. basedontheirqualificationsandskills.
d. Alloftheabove

33. Therangeoffeelingsoutwardlyexpressedinsocietyreferstotheculturaldimensionof___
_____.

a. Uncertaintyavoidance
b. Universalismvs.particularism
*c. Neutralvs.affective
d. Diffusevs.specific
34. Preferenceforinvolvementinmultipleareasofpersonalandworklifesimultaneouslyare
morelikelyin

a. Specificcultures.
*b. Diffusecultures.
c. Neutralcultures.
d. Affectivecultures.

35. WhichofthefollowingculturaldimensionsisNOTincludedinHofstede'smodelofnationa
lculture?

a. Powerdistance
b. Individualism
c. Masculinity
*d. Neutrality

36. USfirmsoftenoutsourcecustomerservicetoworkersinaforeigncountry.Tominimizedif
ficulties,suchworkersreceivecrossculturaltrainingwhichmayinclude:

a. Trainingworkerstoreduceoreliminateanaccent.
b. EducatingworkersregardingUSculture.
c. RequiringworkerstospeakonlyEnglishwhileonduty.
*d. Alloftheabove

37. Whichofthefollowingculturaldimensionrepresentstheextenttowhichindividualsareex
pectedtobefair,altruistic,caringandgenerous?

a. Performanceorientation
b. Individualism
*c. Humaneorientation
d. Powerdistance

38. Accordingtothetext,whichofthefollowingtwodimensionsarenotconsideredbyHofsted
eandisuniquetotheGLOBEculturaldimensionsframework?

a. Powerdistanceandhumaneorientation
b. Longtermorientationanduncertaintyavoidance
c. MasculinityandIndividualism
*d. Humaneorientationandperformanceorientation

39. Culturalparadoxesrepresent

*a. Caseswheresituationsinrealityseemtocontradictculturalprescriptions.
 b. Theassumptionthatallpeoplewithinaculturebehave,feelandactthesame.
c. Thebeliefthatapersonscultureissuperior.
d. Thebeliefthatonescultureisinferior.

40. Accordingtoresearchdiscussedinthetext,whichofthefollowingmayhelpmanagersbeco
memoreculturallyintelligent?

*a. Exposuretonewculturalexperiencesinothercountries
b. Learningtotrusteachpeoplefromindividualisticcultures
c. Havingashorttermorientation
d. Alloftheabovearetrue

41. Amultinationaloperationsmanagermaynotethat_____mayprescribeorproscribebehavi
or.

a. beliefs
b. values
*c. norms
d. nothing

42. Abusinesscultureis

a. notaproductofthenationalculture.
*b. aformofbusinessetiquetteforthemultinationalmanager
c. thesamethingasoccupationalculture
d. somethingthatrarelyexists.

43. "Particularism"involves

*a. dealingwithpeoplebasedonpersonalrelationships.
b. dealingwithpeoplebasedonrules.
c. dealingwithpeoplewhoareveryparticularanddemanding.
d. dealingwithparticularissuesofglobalsignficance.

44. Whenaculturebasesstatuson________,onesinherentcharacteristicsorassociati
onsdefinestatus.

a. achievement
b. religion
*c. ascription
d. democracy
45. Hofstede'sconceptofmasculinityrefersto

*a. genderroles.
b. themalepercentageofpopulation.
c. malebonding.
d. strengthbuilding.

46. Definenationalculture,businessculture,occupational,andorganizationalculture.

47. Describethreemanagementimplicationsofhighindividualismversuscollectivism(lowind
ividualism).

48. Whatarecountryclusters?Explainwithanexample.

49. Whatareculturalparadoxes?Giveoneexample.

50. Describesomecharacteristicsofcultureshighonpowerdistance.Comparethemanagement
implicationswithcultureslowonpowerdistance.

51. Describesomecharacteristicsofcultureshighoncollectivism.Comparethemanagementi
mplicationswithcultureslowoncollectivism.

52. Describesomecharacteristicsofcultureshighonmasculinity.Comparethemanagementim
plicationswithcultureslowonmasculinity.

53. Discussfourofthe7dculturaldimensions.Whataresomeimplicationsofthesedimensions
forinternationalmanagement?

54. Whydotherankingsonsomeculturaldimensionssuchasindividualismdifferbetweenthe
7dandHofstedemodels?

55. DiscusstheGLOBEculturalframework.HowisthisculturalframeworkdifferentfromHof
stedesframework?
1. Thenationalcontextofasocietyismadeupof

a. Thenationalandbusinessculturesofthatsociety.
b. Thesocialinstitutionsofthatsociety.
*c. Thenationalculturesandsocialinstitutionsofthatsociety.
d. Thenationalculturesofthatsociety.

2. Acomplexofpositions,roles,norms,andvaluesorganizingrelativelystablepatternsofhum
anresourcestosustainviablesocialstructuresreferstowhichofthefollowing?

a. Entrepreneurship
*b. Socialinstitutions
c. Comparativeadvantage
d. Strategyofthemultinationalcompany

3. Accordingtothemodeldiscussedinthetext,thenationalcontextdoeswhichofthefollowin
g?

a. Createsaresourcepool
*b. Influencesthebusinessenvironmentandhelpscreateinducedfactorconditions
c. Doesnotinfluencethebusinessenvironment
d. Doesnothelpcreateinducedfactorconditions

4. Aneconomicsystemwhereproductionactivitiesaredecentralizedtoprivateownerswhocarr
youttheseactivitiestomakeaprofitisknownasa

*a. Capitalisteconomy.
b. Commandeconomy.
c. Socialisteconomy.
d. Mixedeconomy.

5. WhichofthefollowingstatementsisNOTTRUEregardingtheexperiencescountriesgothro
ughastheyundertakemarkettransitionsfromsocialismtoamoremarketbasedeconomy?

a. Drasticmeasureshavetobetakentoturnaroundformerlyinefficientcompanies.
b. Managers'thinkinghavetobechangedsothattheycanunderstandmanagementfunc
tions.
c. Financialsystemshavetobeleftunregulatedtoaccuratelyreflectmarketprices.
*d. Moreworkershavetobehiredascompaniesfindthattheyareunderstaffed.

6. Asocietythatischaracterizedbydominanceofthemanufacturingorsecondarysectorsisa/a
n

*a. Industrialsociety.
 b. Preindustrialsociety.
c. Postindustrialsociety.
d. Marketsociety.

7. WhichofthefollowingstatementsisTRUEregardingpostindustrialsocieties?

a. Postindustrialsocietiesarecharacterizedbythedominanceofmanufacturingsectors.

b. Postindustrialsocietiestendtofavoreconomicachievement.
*c. Postindustrialsocietiestendtoemphasizequalityoflifeovereconomicachieveme
nt.
d. Alloftheabovearetrue.

8. Whichofthefollowingarekeysocialinstitutionsthatarethemostlikelytoinfluencethebus
inessenvironmentofacountry?

a. Economicsystem
b. Levelofindustrialization
c. Religion
*d. Alloftheabove

9. Whichofthefollowingsystemsencouragethepursuitofcollectivegoalssuchassocialequal
ityandsolidarity?

a. Economicsystem
b. Marketeconomy
*c. Commandeconomy
d. Capitalisteconomy

10. Accordingtothetext,whichofthefollowingstatementsregardingworkersinformerlysoci
alisteconomiesisNOTTRUE?

*a. Workersinformerlysocialisteconomiesareverytrustingofeachother
b. Workersinformerlysocialisteconomiesaregenerallyreluctanttocooperateandwor
kwitheachother
c. Workersinformerlysocialisteconomiestendtofavorpersonalrelationshipsaskeyt
osuccessasopposedtotheirworkperformance
d. Alloftheabovearetrue

11. Whichofthefollowingsocietiestendtodetermineoccupationsbasedonascription(family
background)andsocialstatus?

a. Industrialsocieties
b. Postindustrialsocieties
 c. Socialistsocieties
*d. Preindustrialsocieties

12. Whichofthefollowingfourreligionsarepracticedby71%oftheworld'spopulation?

a. Jainism,Hinduism,IslamandChristianity
b. Hinduism,Christianity,Islam,andSikhism
*c. Christianity,Hinduism,IslamandBuddhism
d. Judaism,Christianity,Buddhism,andIslam

13. Whichofthefollowingreligionsismostpracticedaroundtheworld?

*a. Christianity
b. Buddhism
c. Hinduism
d. Islam

14. Whichofthefollowingreligionshasstrictgenderrolesandalsoprohibitsmultinationalsfro
mpayingorreceivinginterestontransactions?

*a. Islam
b. Buddhism
c. Christianity
d. Jainism

15. Whichreligionisconsideredtobetimelessandeternalasitnotbasedonasinglefounderor
event?

a. Jainism
b. Christianity
*c. Hinduism
d. Noneoftheabove

16. Whichofthefollowingreligionsisbasedontheideathatcravinganddesiresproducesuffer
ingbutthatitalsopossibletoreachastagewherethereisnolongeranysuffering?

a. Christianity
b. Judaism
c. Hinduism
*d. Buddhism

17. Theculturalandeconomicchangesthatoccurbecauseofhowproductionisorganizedandd
istributedinsocietyreferstowhichconcept?
 a. religion
b. education
*c. industrialization
d. dominanteconomictype

18. Inindustrialsocieties,occupationalplacementisbasedonuniversalisticcriteriasuchas

a. Age.
b. Religion.
c. Ascription.
*d. Achievement.

19. Amultinationalmanagercarefullyconsidersthelistoffestivalsthatarecelebratedinacoun
tryinordertoallowforholidaysforhis/heremployees.Whichsocialinstitutionismostlikelybei
ngconsideredhere?

a. Industrialization
b. Markettransition
c. Education
*d. Religion

20. Preindustrialsocietiestendtohave

*a. Poorinfrastructureandsupport.
b. Adequateinfrastructure.
c. Favorablebusinessconditions.
d. Governmentsupport.

21. Anincreasedemphasisonqualityoflifeoverachievementorientednormsistypicalof

a. Preindustrialsocieties.
b. Industrialsocieties.
*c. Postindustrialsocieties.
d. Noneoftheabove

22. AmultinationalHumanResourceManager'sdecisiontopromoteanindividualresultsinwi
dediscontentintheforeignsubsidiary.Themanagerfindsthatalthoughthepromotedindividua
l'sperformanceisexemplary,mostemployeesfeelthatthepromotionshouldhavegonetoanothe
rindividualwhocomesfromanimportantfamily.Theforeignsubsidiaryismostlikelylocatedin
a/an

a. Industrialsociety.
*b. Preindustrialsociety.
 c. Capitalistsociety.
d. Postindustrialsociety.

23. Inwhichofthefollowingsocietieswouldpeoplemostlikelyprefernonmonetaryincentive
s?

a. Industrialsociety
b. Preindustrialsociety
*c. Postindustrialsociety
d. Noneoftheabove

24. Highrankingsonthematerialistindexofsomecountries(e.g.,Hungary,India,Brazil)sugg
estthatindividualsinthesecountriesare

a. Favornonmaterialincentives.
*b. Achievementoriented.
c. Motivatedbynonmonetaryrewards.
d. Hinduism.

25. Whenindustrializationisinwardlyoriented,localindustriesarepromotedtosatisfythe

a. Needtoexport.
b. Localpopulation.
c. Requirementsofmultinationalcompanies.
*d. Domesticmarketandpreserveforeignexchange.

26. Whenindustrializationisoutwardoriented,foreignexchangeis

*a. Encouragedandexportingispromoted.
b. Discouragedandexportingisnotfavored.
c. Notwelcomed.
d. Usedtofundgovernmentsinpower.

27. ThefamousGermanSociologist,MaxWeber,arguedthattheProtestantworkethic

*a. LedtotheemergenceofcapitalisminWesternEurope.
b. LedtothedeclineofcapitalisminWesternEurope.
c. Ledtoanacutedistastefortheaccumulationofwealth.
d. LedtotheriseofsocialisminEasternEurope.

28. Oneimportantissuerelevanttomultinationals,istheextenttowhicheducationalsystemse
ncouragestudentsto
 a. Beinnovativeandcreative.
b. Toexpectamoreethicalatmosphere.
*c. Passivelyacceptwhatistaught.
d. Noneoftheabove

29. Whenmultinationalspaylowwagesorusechildlabor,theyoftenreceive

a. Supportandpraise.
b. Imprisonment.
*c. Negativepublicity.
d. Socialresponsibility.

30. Accordingtothetext,allofthefollowingstatementsregardingeducationandeducationals
ystemsaroundtheworldareTRUEexcept

a. Universaleducationenrolmentisagoalofmostcountries.
b. Educationallevelsgiveanindicationoftheskillandproductivityinanysociety.
*c. Thefocusofeducationalsystemsaroundtheworldarefairlysimilarintermsofwh
etherthesesystemsemphasizeacademicorvocationalaspects.
d. Alloftheabovestatementsaretrue.

31. Theeducationalattainmentscores

a. Arefairlysimilarformostcountries.
b. Giveanideaoftheabundanceofengineersforresearchanddevelopmentpurposes.
*c. Reflectthemeanyearsofschoolingofpeopleinanysociety.
d. Alloftheabovearetrueofeducationalattainmentscores.

32. Whichofthefollowingisnotanimplicationofeducationalsystemsastheyapplytomultina
tionals?

a. Educationallevelgivesanindicationoftheskillandproductivityofworkersinanys
ociety.
b. Educationalsystemshaveimplicationsforhowlaborforceissuesareapproachedand
policiesimplemented.
c. Educationallevelscanbegaugedtogiveanideaofwhatmultinationalscanexpect.
*d. Alloftheabovearetrue

33. Insocietieswithhighsocialinequality,resourcesarecontrolledby

a. Amajorityofpeople.
*b. Veryfewpeople.
c. TheGovernment.
d. Religiousinstitutions.
34. Whenasocietyexpectsthatwhilemenshouldworkoutside,andwomenideallystayathom
e,thisexhibitswhichofthefollowingfeatures?

a. Needfordomesticproducts
b. Opensocieties
c. Growinglevelsofindustrializationandeconomicdevelopment
*d. Strictdivisionofsocietybygender

35. Postindustrialsocietiesaretypicallycharacterizedbythedominanceof

a. Serviceandmanufacturingsectors.
*b. Servicesectors.
c. Manufacturingsectors.
d. Agriculturalsectors.

36. Thedegreetowhichpeoplehaveprivilegedaccesstoresourcesandpositionswithinsocieti
esis

*a. Anindicationofsocialinequality.
b. Thesamearoundtheworld.
c. Hasnoimplicationsformultinationals.
d. Alloftheabove

37. WhichofthefollowingstatementsabouttheGINIindexisFALSE?

a. TheGINIindexrepresentstheextentofinequalityinpeoplesincomewithinasociet
y
b. Rangesfrom0to100
c. Isscaledsothat0representsnoinequalitywhile100representsperfectinequality
*d. Isscaledsothat100representsnoinequalitywhile0representsperfectinequality

38. Themovementfromasocialisteconomytoafreemarketeconomyisalsoknownaswhich
ofthefollowing?

*a. Markettransition
b. Dominanteconomictype
c. Rapidindustrialization
d. Governmentregulation

39. Theindexofeconomicfreedommaybeusedbymultinationalstounderstandthenatureof

a. markettransitions
 b. nationalculture
c. nationalcontext
*d. governmentalintervention

40. Whichofthefollowinghasimportantimplicationsformultinationals?

a. Religion
b. Educationandeconomicsystems
c. Industrializationandinequality
*d. Alloftheabove

41. Anexampleofcrossnationaldistanceinvolves

a. differencesintransportationsystemsusedaroundtheworld.
b. anopportunityforGooglemaps.
*c. differencesinimportanceofthefinancialsector.
d. thegeographicsizeofvariouscountries.

42. Commonmeansclassifyingeconomicsystemsinvolvetheextentorabsenceofgovernment
______productioncapabilities.

a. ownershipof
b. influenceandcontrolof
*c. bothAandB
d. noneoftheabove

43. Markettransitionsduringandsincethe1980's

*a. providedopportunitiesformultinationals.
b. resultedinlessrelianceonmarketsandmoreongovernmentcontrols.
c. wereaboutthesameaspriortothe1980's.
d. involvedtechnicalratherthanpoliticaloreconomicchange.

44. Overtimetheaffectsofindustrializationhaveincludedallofthefollowingexcept

*a. culturalandeconomicstability
b. changesinstagesofindustrialization
c. differentorganizationanddistributionofproduction.
d. theconceptofproductionhascometoincludeservicesaswellasmanufacturing.

45. Theroleofeducation

a. isnolongerrelevanttoeconomicdevelopmentduetotheuseofcorporatetraining.
 b. ishelpfulinreducingcompetitionfromyoungpeopleforfulltimejobs.
c. isprimarilyofphilosophicalvalue.
*d. includesorganizingnetworksofsociety'sexperiencesforprogress.

46. Definesocialinstitutions.Howdosocialinstitutionsaffectindividualsandorganizations?

47. Definenationalcontext.Explainhownationalcontextinfluencesorganizations.

48. Whatarethethreemajortypesofeconomicsystems?Whataretheeffectsofeconomicsyst
emsonhoworganizationsarestructuredinsocieties?

49. Whataresomeimplicationsofthemarkettransitionsthatmanyformerlycommunistsocieti
esareexperiencing?Whataresomemajorchallengesfacingmultinationalsastheytrytomotivat
eworkersinthesetransitioneconomies?

50. Compareandcontrastpreindustrial,industrialandpostindustrialsocieties.Discusstheimp
licationsformultinationalsofanyoneofthesethreetypesofeconomies.

51. Whataresomemajorphilosophiesofeachoftheworld'smajorreligions?Picktworeligion
sanddiscusshowtheyaffectthebusinessenvironment.

52. Howdoestheeducationalsysteminfluencethebusinessenvironmentinanycountry?

53. Whatissocialinequality?Whatimplicationsdoessocialinequalityhaveformultinationals?

a1. Internationalbusinessethics

a. Presentproblemssimilartodomesticbusinessethics.
b. Pertaintotherulesandvaluesthatdetermineactionsthatcompaniesshouldfolloww
hendealingwithothercompanies.
*c. Pertaintothoseuniqueethicalproblemsfacedbymanagersconductingbusinessacr
osscountries.
d. Noneoftheabove

2. WhichofthefollowingstatementsisNOTTRUEregardingsocialresponsibility?

*a. Socialresponsibilityisnotlinkedwithbusinessethics.
b. Referstotheideathatbusinesseshavecertainresponsibilitiestosocietybeyondmaki
ngprofits.
 c. Meansthatacompanyhastotakeintoconsiderationvariousstakeholderswhenmaki
ngdecisions.
d. Isconcernedwiththeethicalconsequencesofpoliciesandproceduresofthecompan
yasanorganization.

3. Theethicalphilosophiesthatconsideractionsasgoodorbadregardlessoftheiroutcomesare

a. Theteleologicalethicaltheories.
b. Utilitarianism.
*c. Deontologicaltheoriesofethics.
d. Noneoftheabove

4. Utilitarianism,asaformofethicalphilosophy,

*a. Arguesthatwhatisgoodormoralcomesfromactsthatproducethegreatestgoodf
orthegreatestnumberofpeople.
b. Arguesthatactionsbythemselveshaveagoodorbadmoralityregardlessoftheirco
nsequences.
c. Isoneformofdeontologicalethicaltheory.
d. IsamorallanguageproposedbyDonaldson.

5. Whichofthefollowingstatementsaretrueaboutteleologicalethicaltheories?

a. Themoralityofanactcomesfromitsconsequences.
b. Utilitarianismisoneofthemostpopularteleologicaltheory.
c. Actionsbythemselveshaveagoodorbadmoralityregardlessoftheirconsequences.
*d. Alloftheabovearetrue.

6. Stealingaloafofbreadtofeedahungryfamilycanbejustifiedbywhichethicaltheory?

a. Socialresponsibilityethicaltheory
b. Deontologicalethicaltheory
c. Morallanguages
*d. Utilitarianism

7. Morallanguages

a. Areaformofdeontologicalethicaltheory.
b. Focusontheconsequencesofactionsratherthantheirworth.
c. Describethewayspeoplethinkaboutgeneralissues.
*d. Areusedtoexplainethicalchoices.

8. MorallanguagesincludeallofthefollowingEXCEPT
 a. Virtueandvice.
b. Selfcontrol.
c. Avoidingharm.
*d. Beingethical.

9. Multinationalsthatprovidefairwagestotheirlocalemployeesarefollowingwhichtypeofm
orallanguage?

a. Avoidingharm
b. Ethicalbehavior
*c. Rightsandduties
d. Socialcontract

10. Accordingtothetext,theUnitedNationsDeclarationofHumanRightsisanexampleofwh
ichofthefollowing?

a. Convenientimperialism
*b. Transnationalethics
c. Europeancodes
d. Morallanguage

11. Writtenethicalcodesmayincludewhichofthefollowing?

a. Contracts
*b. Internationallaws
c. Lawsofacountry
d. Alloftheabove

12. Whichofthefollowingstatementsaboutbribesorquestionablepaymentsaretrue?

a. Bribestoexpeditegovernmentactionsortogainbusinessadvantagesarecommonin
internationalbusiness.
b. Mostcountrieshaveformallawsforbiddingbribesorquestionablepayments.
c. Enforceabilityofethicsvariesindifferentcountries.
*d. Alloftheabove

13. ThereasontoknowprovisionsoftheFCPAisthatit

a. Istheeasiesttoenforceandobserve.
b. Probablyencouragesforeignbribery.
*c. IsatrickycomponentforUScompanies.
d. Emphasizesthereasonablepersonconcept.
14. AccordingtotheFCPA,U.S.managersarecriminallyliable

a. Onlyforbribesthattheypaydirectlytoaforeignofficial.
b. OnlyforbribespaidintheU.S.andnotinothercountrieswhereitiscommonpractic
einbusinessdealings.
*c. ForallbribesbyemployeesoragentsoftheU.S.companyeveniftheU.S.manager
sdonotknowaboutthem.
d. Forbribespaidbyforeignagents,ifmanagersknowaboutthem.

15. WhichofthefollowingpaymentswouldtheForeignCorruptPracticesActallow?

a. Paymentsmadeunderduresstoavoidinjuryorviolence
b. Smallpaymentstoencourageofficialstodotheirlegitimateandroutinejobs
c. Paymentsthatareconsideredlawfulinthecountry
*d. Alloftheaboveareallowed

16. Ethicaldilemmasareusually

a. Easytoresolve.
b. Clearandunambiguous.
*c. Unclearandambiguous.
d. Removedwithaformalcodeofethics.

17. Proscriptiverulesincodesofconduct:

a. Tellmultinationalcompaniesormanagerswhattheyshoulddo.
b. Areformsofmorallanguage.
*c. Tellmultinationalcompaniesormanagerswhattheycannotdo.
d. Alloftheabove

18. Ethicalconvergence

a. Issimilartoethicalrelativism.
b. Referstobasicuniversalmoralprinciples.
c. Isaformofethicaluniversalism.
*d. Referstothegrowingpressuresformultinationalcompaniestofollowthesamerule
sinmanagingethicalbehaviorandsocialresponsibility.

19. PressuresforethicalconvergenceincludeallofthefollowingEXCEPT

a. Thegrowthofinternationaltradeandtradingblocs.
b. Increasedinteractionbetweenforeigntradingpartners.
*c. Theneedtohaveuniquenormsandvaluestomanagetheiremployeesdifferently.
 d. Alloftheabovearetrue

20. Prescriptiverulesincodesofconduct

*a. Tellmultinationalcompaniesormanagerswhattheyshoulddo.
b. Areformsofmorallanguage.
c. Tellmultinationalcompaniesormanagerswhattheycannotdo.
d. Alloftheabove

21. Ethicalrelativism

a. Arguesthatoneshouldimposethehomecountry'sethicalsystemeverywhere.
b. Impliesthatethicsarerelativetothetypeofphilosophyused.
*c. Meansthateachsociety'sviewofethicsmustbeconsideredlegitimate.
d. Meansthatthesameethicalprinciplesareuniversal.

22. Theargumentthattherearebasicmoralprinciplesthattranscendculturalandnationalboun
dariesissupportedby

a. Ethicalrelativism.
b. Morallanguages.
*c. Ethicaluniversalism.
d. Noneoftheabove

23. Whencompaniesusethelogicofethicalrelativismtobehaveanywaytheyplease,thisiskn
ownas

a. Prescriptiveethicalmanagement.
b. Proscriptiveethicalmanagement.
*c. Convenientrelativism.
d. Universalethicsapplications.

24. Whencompaniesusethelogicofmoraluniversalismandimposetheirviewsontherestoft
heworld,________________occurs.

a. Ethicaldivergence
b. Ethicalconvenience
*c. Culturalimperialism
d. Noneoftheabove

25. Theformofanalysiswheretheprimeinterestiswhatisthebestdecisionforacompany'spr
ofitis
 a. Legalanalysis.
b. Ethicalanalysis.
c. Socialresponsibilityanalysis.
*d. Noneoftheabove

26. Inaneconomicanalysis

*a. Themanagerconsidersthebestdecisionforacompany'sprofits.
b. Themanagerfocusesonmeetingthelawsofacountry.
c. Themanagergoesbeyondprofitsandanalyzestheethicalconsequencesofdecisions.
d. Noneoftheabove

27. Whenfacinganethicalquestion,themanagerwhouseslegalanalysiscriteria

a. Isprimarilyinterestedinthedecisionthatisbestforthecompany'sprofits.
*b. Focusesononlymeetingthelawsofthecountryinwhichthecompanyisoperating.
c. Focusesonmeetingtheneedsofotherconstituentsbeyondstakeholders.
d. Focusesondoingtherightthings.

28. Inanethicalanalysisofaproblem,amanagermust

a. Focusonmeetingthelawsofthecountryinwhichthecompanyisoperating.
b. Focusonwhatisthebestdecisionforacompany'sprofits.
c. Focusonthedecisionswiththebestconsequences.
*d. Noneoftheabove

29. Thefirstdutyofamultinationalmanagerfacedwithadecisionis

*a. Toconsiderwhetherthedecisionmakesbusinesssense.
b. Toconsiderwhetherthedecisionmeetsthelegalstandardinthecountry.
c. Toconsiderwhetherthedecisionisethical.
d. Torefertothewrittencodesofethics.

30. Ethicaldecisionmakingofmultinationalmanagerspreferablyshould

a. Bebasedsolelyonhomecountryethicalprinciples.
*b. Gobeyondlegalconstraintsandrespectthelocalculturalnorms.
c. Beprimarilyprofitableforthemultinational.
d. Noneoftheabove

31. Amultinationalmanagerdecidesthatitwouldbeunethicaltocloseaforeignplantasemplo
yeesinthatplantarenotbeingtreatedwithdignity.Whichethicaltheoryisthemanagerusingto
reachthatconclusion?
 a. Teleologicalethicaltheory
b. Utilitarianethicaltheory
*c. Deontologicalethicaltheory
d. Noneoftheabove

32. Amultinationalmanagerdecidestoallowhiringofchildrenforaforeignplantassuchpract
icesareacceptedinthecountry.Whichethicalprincipleisshebasingherdecisionon?

a. Ethicaluniversalism
b. Convenientethicaluniversalism
*c. Ethicalrelativism
d. Noneoftheabove

33. AmultinationalmanagerisconsideringclosingaplantinChinaaswageshaveincreasedco
nsiderablyinChina.Themanagerconsiderstheimplicationsoflayingoffpeopleandclosingthe
plantontheprofitsofthecompany.Whichformofanalysisisthemanagerdoing?

a. Legalanalysis
b. Profitmakinganalysis
c. Ethicalanalysis
*d. Noneoftheabove

34. WhichactwasproposedbytheSecuritiesExchangeCommissioninreactiontotheaccounti
ngscandalsatcompanieslikeEnronandWorldcom?

*a. SarbanesOxley
b. WTO
c. CorruptionPerceptionIndex
d. TheEthisphereInstitute

35. WhichofthefollowingstatementsregardingtheForeignCorruptPracticesAct(FCPA)isN
OTTRUE?

a. Bribesorpaymentsmadeunderduresstoavoidinjuryorviolenceareacceptable.
b. Smallpaymentstoencourageofficialstodotheirlegitimateandroutinejobsareacce
ptable.
*c. Paymentsorgiftstoforeigngovernmentofficialsforthesakeofgainingorretainin
gbusinessareacceptable.
d. Inanunstablepoliticalenvironment,paymentsmadetolocalofficialstoavoidharass
mentofemployeesareacceptable.

36. WhichofthefollowingstatementsisTRUEregardingculturalrelativismasanapproachini
nternationalbusinessethics?
 a. Whatisrightorwrongdependsontheculture.
b. Aguideforwhatislegalandappropriateisthelocalculture.
c. Companiesshouldfollowthemoralnormsofthelocalculture.
*d. Alloftheabovestatementsaretrue.

37. Deontologicalethicaltheories

a. Arguethatthemoralityofanactcomesfromthisconsequences.
b. Wouldprovidejustificationforclosingaplantandlayingoffworkerstoreducecosts.

c. Ismosttypicallyrepresentedbycostandbenefitanalyses.
*d. Arguethatactionsbythemselveshaveagoodorbadmoralityirrespectiveoftheco
nsequences.

38. Accordingtothetext,whichofthefollowingisNOTaconsequenceofcorruption?

a. Companiestypicallymakeupthebribebyincreasingthecontractprice.
b. Companiesusepoorerqualitymaterialstomakeupforthebribe.
*c. Companiesdevotesomeofthebribetosociallyresponsiblecauses.
d. Corruptioncanalsoresultincollusionsamongfirms.

39. Theworldseemstobemovingtowardstransnationalethicsbecause:

a. Globalizationdramaticallyincreasescontactamongpeoplefromdifferentethicaland
culturalsystems.
b. Thiscontactcreatespressureforthedevelopmentofnewtransnationalagreementsre
gardingbusinesspractices.
c. InternationaltradeandtradingblocssuchastheEUandNAFTAaregrowing.
*d. Allofthesereasons.

40. WhichofthefollowingethicaldilemmasisaddressedbytheSarbanesOxleyAct?

a. Competition
*b. Auditorresponsibilityandindependence
c. Sourcingofcheaplabor
d. Companystrategy

41. Anexampleofasecondarystakeholderwouldbea

a. stockholder.
*b. mediaperson.
c. customer.
d. AandCabove.
42. Thefollowingareexamplesofdeontologicalissuesexceptfor

a. viceandvirtue.
*b. thegreatestgoodforthegreatestnumber.
c. goodandbad.
d. socialcontract.

43. ThefollowingsituationsthatcanleadtoviolationsoftheFCPAexceptforpaymentstogov
ernmentofficialsthatinvolve

*a. greasepayments.
b. countriesinwhichtraditionsrequirebribes.
c. culturesthatdonotconsiderpaymentsforspecialfavorstobebribes.
d. situationsinwhichforeigncompetitorswhoarewillingtogivebribeswouldmakess
alesthatmightotherwisegotoU.S.companiesandthusprovidejobsforAmericans.

44. Whichofthefollowingwouldmostlikelycontributetoethicalconvergence?

a. Conductingallaspectsofabusinesswithinonecountry.
b. "WheninRome,doastheRomansdo."
*c. Internationalagreements.
d. Utilitarianism.

45. Relativismisbestexemplifiedby

a. culturalimperialism.
*b. "wheninRome,doastheRomansdo."
c. ethicalconvergance
d. thetheoryofrelativity.

46. Discusssomeoftheissuesthatmakeinternationalbusinessethicsmorecomplexthandome
sticbusinessethics.

47. Dolawsalwaysreflectacommunitysethics?Giveanexampletoexplainyouranswer.

48. Discussthedifferencebetweenteleologicalanddeontologicaltheoriesofethics.Giveexam
plesofhowaninternationalmanagermightappealtoeithertypeoftheorywhenfacedwiththeo
pportunitytoofferabribe.
49. Howdosocialinstitutionsandcultureaffectthepracticeofbusinessethicsindifferentcoun
tries?

50. Compareandcontrastethicalrelativismandethicaluniversalism.Whataresomeofthedan
gersofadoptingeitherethicalrelativismorethicaluniversalismwhenmakingdecisions?

51. DescribetheU.S.FCPA,whatmakesitchallengingforU.S.firms,andhowtheydealwitht
hatchallenge.

52. Whataremorallanguages?Howcanmorallanguageshelpmultinationalbecomemoreethic
al?

53. Discusssomeofthepressuresforethicalconvergence.Whataresomeimplicationsformult
inationalmanagement?

54. Compareandcontrastprescriptivecodesofethicswithproscriptivecodes.