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International Business Practice Test

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MGMT338, International Business, Test #1, September 3, 2013,
This test covers the first nine chapters of the book. It should take you 6-8 hours to complete. The essay questions will require complete and supportive answers so please make sure they are college level answers. Please also do an answer sheet to submit to the drop box. GOOD LUCK!

I. (8 pts)
Leslie Igles is being sent to Ireland as the new manager of a local subsidiary of a U.S. firm. She has a participatory management style and is known for her ability to relate to the workers by occasionally stepping in and working along side of them. Answer the following True and False questions using Hofstede's Four Dimensions.
T F 1. This management style will not work well with Ireland's Power Distance rating.
T F 2. Uncertainty Avoidance levels in Ireland will make it difficult for Leslie to make changes.
T F 3. The Individualism level in Ireland indicates that group decision making will not be successful there.
T F 4. Ireland has a higher level of masculinity than Canada.

II. (66 pts) Select the best answer.
1. __________ was the world's leading manufacturing country for about 1,800 years, until it was replaced by Britain in about 1840.

A. The United States

B. Germany

C. India

D. France

E. none of the above.

2. International business really began:

A. with the East India Company, chartered in 1600.

B. when Singer Sewing Machine put up a factory in Scotland in 1868.

C. before the time of Christ.

D. when Colt Fire Arms set up a plant in England.

E. when the Ottoman Empire was established.

3. The worldwide stock of outward FDI is estimated to have increased _______ between 1990 and 2010.

A. 3-fold

B. 5-fold

C. 9-fold

D. 12-fold

E. 17-fold

4. To sum up international trade theory, we can say that the primary reason for trade is:
A. the increase in OPEC oil prices.

B. governments want to accumulate money.

C. the existence of price differentials among nations.

D. the creation of new nations from former colonies.

E. none of the above.

5. The Uruguay Round of GATT wrote new international rules for:
A) agriculture.
B) services.
C) intellectual properties.
D) all the above
E) (B) and (C) above

6. Regarding foreign Investment it can be divided into three components:
A. international trade, portfolio investment, and direct investment.
B. portfolio investment involves investors who participate in the management of the firm in addition to receiving a return on their money.

C. deals that result in the foreign investor's obtaining at least 10 percent of the shareholdings are classified as portfolio investments.

D. two of A, B, and C.

E. none of A, B, and C.

7. In developing economies, informal institutions tend to play a greater role than in developed economies, possibly because

A. the developing economies have more ambiguity and lack formal institutions by definition, so informal institutions step into the breach.

B. developing economies show cultural preference for informality.

C. informal institutions emerge to give order to the unstructured, chaotic environment.

D. A and C.

8. The Chinese concept of guanxi is an example of:

A. an informal, cognitive institution.

B. a regulative, formal institution.

C. a favorite cooking method of Chairman Mao.

D. taken-for-granted approaches to friendship relations.
9. The Doha Development Agenda is:

A. a WTO conference on trade.

B. an agreement on climate control and greenhouse gases.

C. a decision-making approach to development.

D. a development rules list.

10. Gift-giving in many cultures is marked by:

A. specific etiquette and meaning that may be markedly different from what the international manager knows in the home culture.

B. graft and corruption; for example, a way to launder money.

C. humility not fitting an international manager.

D. drinking and late parties.

11. The presence of tattoos suggests social outcasts universally, based on:

A. their use in Japan by the Yakuza.

B. a primitive human desire to change and thus control the body.

C. a universal aesthetic.

D. nothing, because this statement is not accurate.

12. The largest portion of the world's proven oil reserves is located in:

A. low-risk areas.

B. high-risk areas.

C. climate-challenging areas.

D. developed nations' oil fields.
13. Although it pollutes heavily, this energy source is on the rise everywhere, especially in China:

A. natural gas.

B. coal.

C. nuclear.

D. diesel.

14. The trend for firms in regard to country risk assessment (CRA) is to:

A. avoid it as an added cost in competitive markets.

B. concentrate much more on CRA in making decisions about foreign activities.

C. use CRA in obviously dangerous locations, but only in those situations.

D. all of the above.

E. two of A, B, and C.

15. The national defense argument for trade restrictions has been used in the United States to argue for restriction on imports of:

A. munitions.

B. uniforms.

C. shoes.

D. all of the above.

E. two of A, B, and C.

16. The main source(s) of international law is(are):

A. the UN International Court of Justice.

B. the U.S. Supreme Court and the EU Court of Justice.

C. bilateral and multilateral treaties, along with customary law.

D. nonexistent.

E. the WIPO.
17. Extraterritoriality is:

A. a nation's attempt to enforce its law beyond its borders.

B. added territory as a result of dispute settlements in wars, such as the Sakalin Islands.

C. a citizen's claim to government assistance in a foreign environment.

D. a taxable condition most international firms attempt to avoid.

E. two of the above.
18. If the Japanese yen is strengthening against the U.S. dollar, and the Japanese government wanted to boost exports, the central bank of Japan might well:

A. sell U.S. dollars in large amounts in the currency markets.

B. buy massive amounts of Japanese yen in the FX markets.

C. sell massive amounts of Japanese yen in the FX markets.

D. buy massive amounts of other hard currencies, such as the British pound sterling and the euro, to deflect the focus on dollars.

19. The present floating exchange rate system is not a totally free float because:

A. there is an exchange fee of 1.5 to 1.75 percent.

B. some governments refuse to allow foreign traders to trade their currency.

C. some central banks from time to time intervene in the market to buy or sell large amounts of currency to affect the supply and demand of a particular currency.

D. A and B.

20. Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or:
A. the floating-rate system.

B. the India Accord system.

C. the gold exchange standard.

D. the French rate system.

21. Frederick Gluck, management consultant, says that for firms to develop the flexibility to compete, managements must make the following change(s) in their planning methods:

A. top management must dedicate more time to deciding how things ought to be done.

B. the nature of planning must change from being an exercise in forecasting to being an exercise in creativity.

C. planning processes and tools that assume a future much like the past must be replaced.

D. strategic planning must be restored to strategic planning departments.

E. two of the above.
22. A strategic plan:

A. will be prepared when the tactical plan is finalized.

B. describes how the firm's goals will be met.

C. contains sales forecasts and budgets.

D. all of the above.

E. two of A, B, and C.

III. (26 pts)

T F 1. Globalization has produced uneven results across nations and people.
T F 2. Transnational corporations account for approximately 25 percent of total global output and nearly 5 percent of world trade.
T F 3. A firm's size may at times give it bargaining power with the government of a country even though it must comply with the country's laws.
T F 4. Both IBM ThinkPad and Chinet are brands owned by US firms.
T F 5. The US is not typical of other developed nations in the percent of its exports that go to developed nations.
T F 6. Small firms (those with fewer than 500 employees) account for 97% of the dollar value of US merchandise exports.
T F 7. The magnitude of international trade and how it has grown are reflected in that one-fourth of everything grown or made in the world is now exported.

T F 8. Since WWII, economic integration has failed, largely because of nationalism.
T F 9. Sustainable business is any business that potentially can operate at a profit in a particular country based upon the information acquired in a CRA.
T F 10. When you see that it costs 1.77 Swiss francs to buy one US dollar but only .70 of a British pound, it is clear that the British pound is a weaker
currency than the Swiss franc.

T F 11. Countries that levy value-added taxes are not permitted by WTO rules to rebate them to exporters.

T F 12. Britain's former Prime Minister, Thatcher, pioneered what has
become a worldwide movement to privatize government activities.

T F 13. A choice of forums provision is used in international contracts to indicate which court will hear the case.

IV. (9 pts)
You have been engaged as an advisor for a developing country. You are asked the following question:
Should the country have a strategy of import substitution or specialization? Explain each of these concepts and the theory of comparative advantage in your answer. Using the theory of comparative advantage come to a conclusion as to which strategy the country should use.
Answer:
V. (21 pts)
Select only three of the five choices below and explain what each is and what role each plays in international trade:
a. NAFTA and the EU
Answer:

b. Climate and the two components of culture
Answer:
c. According to the video for week four what is the impact on exports and imports of a weaker dollar? What countries does the video indicate may not want a weaker dollar and why?
Answer:

d. From the video from week one discuss Karma as it relates to international business AND from the video for week three, discuss why there are language issues even though English is the language of a potential foreign market.
Answer:

e. Country Risk Assessment and Traditional Hostilities in a country
Answer:
VI. (8 pts)
If the exchange rate of the dollar and the Euro goes from one Euro equals $1.22 cents in 2010 to one Euro equals $1.33 in 2011, has the dollar strengthened or weakened and why? If this happens, what is the impact on importers to the U.S. from the EU and on exporters from the U.S. to the EU?
Answer:
VII. (12 pts) Name and explain the concept of tariff barriers and name and explain one reason countries maintain trade barriers, such as tariffs, and state whether or not this reason is justified and why or why not. What is the impact of these barriers on the efficient allocation of a country's resources? What is the impact on the consumers that purchase the items to which the barriers apply?
Answer:

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I. (8 pts)
Leslie Igles is being sent to Ireland as the new manager of a local subsidiary of a U.S. firm. She has a participatory management style and is known for her ability to relate to the workers by occasionally stepping in and working along side of them. Answer the following True and False questions using Hofstede's Four Dimensions.
T F 1. This management style will not work well with Ireland's Power Distance rating.
T F 2. Uncertainty Avoidance levels in Ireland will make it difficult for Leslie to make changes.
T F 3. The Individualism level in Ireland indicates that group decision making will not be successful there.
T F 4. Ireland has a higher level of masculinity than Canada.

II. (66 pts) Select the best answer.
1. __________ was the world's leading manufacturing country for about 1,800 years, until it was replaced by Britain in about 1840.

A. The United States

B. Germany

C. India

D. France

E. none of the above.

It was China
2. International business really began:

A. with the East India Company, chartered in 1600.

B. when Singer Sewing Machine put up a factory in Scotland in 1868.

C. before the time of Christ.

D. when Colt Fire Arms set up a plant in England.

E. when the Ottoman Empire was established.

3. The worldwide stock of outward FDI is estimated to have increased _______ between 1990 and 2010.

A. 3-fold

B. 5-fold

C. 9-fold

D. 12-fold

E. 17-fold

4. To sum up international trade theory, we can say that the primary reason for trade is:
A. the increase in OPEC oil prices.

B. governments want to accumulate money.

C. the existence of price differentials among nations.

D. the creation of new nations from former colonies.

E. none of the above.
If one nation produces a good cheaper than other then other nations would trade with it to procure it at cheaper rate
5. The Uruguay Round of GATT wrote new international rules for:
A) agriculture.
B) services.
C) intellectual properties.
D) all the above
E) (B) and (C) above
The broad mandate of the Round had been to extend GATT trade rules to areas previously exempted as too difficult to liberalize (agriculture textiles) and increasingly important new areas previously not included (trade in services, intellectual property, investment policy trade distortions
6. Regarding foreign Investment it can be divided into three components:
A. international trade, portfolio investment, and direct investment.
B. portfolio investment involves investors who participate in the management of the firm in addition to receiving a return on their money.

C. deals that result in the foreign investor's obtaining at least 10 percent of the shareholdings are classified as portfolio investments.

D. two of A, B, and C.

E. none of A, B, and C.
A and C are true
7. In developing economies, informal institutions tend to play a greater role than in developed economies, possibly because

A. the developing economies have more ambiguity and lack formal institutions by definition, so informal institutions step into the breach.

B. developing economies show cultural preference for informality.

C. informal institutions emerge to give order to the unstructured, chaotic environment.

D. A and C.

8. The Chinese concept of guanxi is an example of:

A. an informal, cognitive institution.

B. a regulative, formal institution.

C. a favorite cooking method of Chairman Mao.

D. taken-for-granted approaches to friendship relations.
9. The Doha Development Agenda is:

A. a WTO conference on trade.

B. an agreement on climate control and greenhouse gases.

C. a decision-making approach to development.

D. a development rules list.
The Doha Development Agenda is the current extended conference of the WTO
10. Gift-giving in many cultures is marked by:

A. specific etiquette and meaning that may be markedly different from what the international manager knows in the home culture.

B. graft and corruption; for example, a ...

Solution Summary

The international business practice tests are provided. The impacts of these barriers on the efficient allocation is given.

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100 True/False/Multiple Choice Questions on International Culture

Questions 1 - 41 are True/False

1. Ethnocentric management does not account for cultural differences in the work force.

2. International business is increasing in the United States.

3. Cultural synergy takes place when a larger culture breaks apart to form two or more separate cultures.

4. A nuclear family consists of parents, children, grandparents, aunts, uncles, and cousins.

5. Mexicans view social reciprocity as very important.

6. The Japanese educational system stresses pragmatic thinking.

7. People from countries with weak uncertainty avoidance are more likely to remain close friends in spite of differing opinions.

8. U.S. Americans place great importance on individuality and self-reliance.

9. People of Latin cultures do not place as great an emphasis on history as do people of the United States.

10. People in the U.S. are less concerned with saving face than are people in Asia.

11. The term sojourners refer to people who visit or reside temporarily in another country.

12. NAFTA is a trade agreement between the U.S., Mexico, and Canada.

13. Maintaining ties with the home culture may cushion the shock associated with reentry.

14. The cooperative pragmatist is concerned with the outcome for all parties concerned.

15. Negotiation tactics are concerned with your counterparts comforts.

16. People of the United States tend to need less space than do people in Latin America.

17. In the Middle East, eye contact is so intense that it exceeds the comfort zone for people in the United States.

18. The Japanese use silence as a bargaining tool when negotiating with persons from the United States.

19. Latin Americans avoid negative news completely in their correspondence.

20. In many countries, the facsimile is more dependable than the mail service.

21. French laws prevent age discrimination.

22. Syntactic errors are errors in the content and meaning of words in a sentence.

23. The Japanese language teaches people to think in a non-linear mode.

24. The primary difference between an argot and a foreign language is the relationship between sounds and meanings.

25. Restricted codes involve messages that are low in predictability.

26. In most European countries, avoid a gift of carnations as they are for cemeteries only.

27. Etiquette includes manners and behavior considered acceptable in social and business situations.

28. In India, the particular caste system a person belongs to is determined by profession.

29. The general rule for business dress in most cultures is to wear jackets at all times.

30. The "Republic of China" is the official name for Taiwan.

31. Sociolinguistics refers to the effect of education on status in a culture.

32. All cultures do not share the idea of a "middle class."

33. Superstitions are treated casually in most Asian cultures.

34. One-word expressions such as "sure" and "okay" are perceived as blunt and abrupt by persons of other cultures.

35. The maquiladora program allowed the duty-free import of equipment, machinery, and materials to assemble parts of products that are then returned to the home country.

36. In Japan, the number of persons involved in negotiations is larger than in the United States.

37. Japan and the United States have a common work ethic; hard work is applauded.

38. Telling jokes is a recommended tactic to relieve tension in intercultural negotiations as people of most cultures find the same things humorous.

39. The World Court is a body of the United Nations that provides a way to settle international disagreements between countries.

40. Written business laws are also called drawer regulations.

41. A U.S. manager working in Canada may trade with Cuba even though it is illegal to do so in the United States because of the Doctrine of Sovereign Compliance.

Multiple Choice: Select one of your best answer.

42. Which of the following does not fit the typical stereotype of the Asian culture?
a. intelligent
b. xenophobic
c. group-oriented
d. individualistic

43. Which of the following does not illustrate a global mindset?
a. trained against surprises
b. teamwork and diversity
c. bigger, broader picture
d. balance of contradictions

44. In a geocentric multinational management practice
a. facilities are run differently by region.
b. there is a common framework with regional control.
c. all capital investments are in one country.
d. the dominant cultural group is considered.

45. Which of the following statements related to economic systems is incorrect?
a. Japan imports over half of its food supply.
b. Cuba's system involves distributing goods according to need.
c. Mexico's economy is dependent on other countries.
d. Japan's biggest export includes raw materials used in manufacturing.

46. Which of the following statements related to political systems is incorrect?
a. Morocco is ruled by a king.
b. In Japan, the emperor has the highest power.
c. Canada has a parliamentary system.
d. Voting is compulsory in Mexico.

47. Which of the following statements regarding educational systems is incorrect?
a. Most of Europe operates on a two-track system where children are assigned to either a vocational or university track.
b. In Saudi Arabia, the universities are segregated based on the social status of the student's parents.
c. In Iran, religious instruction receives more support than secular education.
d. In France, where you go to school determines your position in society.

48. Which of the following statements related to marriage and family systems is incorrect?
a. In France dating begins around age 15.
b. There is no dating in Saudi Arabia.
c. In Mexico, families tend to be small; family unity is of utmost importance.
d. Canada is generally a patriarchal society.

49. Which of the following statements best describes strong uncertainty avoidance?
a. Top managers concerned with daily operations
b. Few rules expected
c. Tolerance for ambiguity
d. Focus on decision process

50. Which of the following statements regarding work attitudes is incorrect?
a. In the United Kingdom, the only grounds for job termination are criminal behavior.
b. In Japan, 18-hour work days are not unusual.
c. Working on weekends is very common for European businesspeople.
d. Peru has one of the longest work weeks in the world.

51. Which of the following statements related to religious influences is incorrect?
a. In the United States, religious observances rarely interfere with business.
b. Muslims stop work five times a day to pray.
c. Religious beliefs may affect consumption patterns.
d. In Saudi Arabia, religious observances rarely interfere with business.

52. Which statement least represents U.S. values?
a. U.S. Americans value equality over inequality.
b. U.S. Americans value time management over leisure.
c. U.S. Americans value directness over indirectness.
d. U.S. Americans value history over planning for the future.

53. People of a polychronic system tend to
a. concentrate on the job.
b. take time commitments seriously.
c. borrow and lend things often.
d. have short-term relationships.

54. Which of the following statements regarding proxemics in the U.S. is inaccurate?
a. The personal zone is reserved for very close friends.
b. The social zone is used for most business situations.
c. The intimate zone may be entered when shaking hands.
d. Public distance is the most formal zone.

55. Which statement regarding haptics is incorrect?
a. In Thailand, it is offensive to touch the head.
b. Japan is considered a "don't touch" culture.
c. Greece is considered a "touch" culture.
d. In Latin American countries, touching between men is unacceptable.

56. Guidelines for "internationalizing" the English language include all of the following except
a. Use only the most common meaning of words.
b. Avoid slang.
c. Avoid action-specific verbs.
d. Choose words with singular rather than multiple meanings.

57. Which of the following statements regarding résumés is incorrect?
a. In France, the résumé is similar to that in the United States.
b. German hiring officials expect the résumé to be one to two pages long.
c. A photograph is not included on a U.S. résumé.
d. In Spain the résumé is in letter form.

58. Which of the following statements regarding cultural differences in correspondence is correct?
a. Germans are usually direct with bad news.
b. The Japanese avoid negative news altogether.
c. The French consider ending on a positive note very important.
d. Endings of German letters tend to be informal.

59. Which of the following topics would be a conversation taboo in France?
a. music
b. sports
c. books
d. a person's work

60. Inoffensive expressions that are used in place of words with negative connotations are
a. jargon.
b. slang.
c. euphemisms.
d. colloquialisms.

61. General guidelines to follow when conversing with someone from another culture include all of the following except
a. politics is a safe topic in most cultures.
b. avoid telling jokes.
c. avoid personal questions.
d. keep the conversation positive.

62. Which statement best describes an incorrect handshake?
a. In the United States, a handshake should be firm.
b. An Asian handshake is usually gentle.
c. Germans repeat a brusque handshake upon arrival and departure.
d. A British handshake is firm and repeated frequently.

63. Which statement regarding gift giving in Japan is incorrect?
a. The Japanese open their gifts in front of the giver.
b. Japanese employees are usually rewarded with large bonuses during the gift giving seasons.
c. Do not surprise a Japanese host with a gift as it might cause the person to lose face.
d. When giving a gift to a Japanese host, avoid gifts manufactured in Asia.

64. Which statement regarding gift giving is correct?
a. Gifts of liquor or wine are suggested for an Arab.
b. Latin Americans appreciate gifts such as a knife or handkerchief.
c. Avoid giving gifts to the French until a personal relationship has been developed.
d. When dining in a person's home in Western Europe, a gift should be presented upon departure.

65. Which statement regarding dining practices is incorrect?
a. In Mexico, the main meal of the day usually takes place between 2 and 4 p.m.
b. The practice of serving a glass of water with ice at restaurants is common in most countries.
c. In France, the salad is often served after the main course rather than before.
d. Serving coffee at the end of the meal is common in most cultures.

66. Which statement regarding introductions is incorrect?
a. First names are used almost immediately by U.S. Americans.
b. The British do not address each other by first names; titles are used.
c. In Colombia, the title "Don" is added to a person's name to show respect.
d. In the Chinese culture, the surname comes first and the given name last.

67. Which statement regarding business attire is incorrect?
a. In the U.S., people dress more conservatively and formally than people in Canada.
b. In a business situation, clothing can enhance your credibility.
c. In Europe, dress is formal; jackets stay on in the office even when the weather is hot.
d. Japanese women dress conservatively and wear muted colors to the office.

68. Which statement regarding various economies is incorrect?
a. Unemployment is usually high in France.
b. Japan imports almost half of its food supply.
c. The U.S. exports more to China than it imports.
d. Mexico's main trading partner is the U.S.

69. Which statement regarding consumption practices is incorrect?
a. When eating a meal in another country, it is advisable to swallow quickly and avoid asking what it is since you are expected to eat what you are served.
b. Muslims consume alcohol along with most meals.
c. Hindus do not eat any beef.
d. People from India are often vegetarians.

70. "AsiaShock" may be described as including all of the following stages except
a. frustration with the culture including language and food.
b. unwillingness to understand the rationale behind the local ways of doing things.
c. fascination and excitement about the new culture.
d. labeling Asians as dishonest because they seem to say one thing and do another.

71. Which statement regarding stages of cultural shock is incorrect?
a. The first stage is referred to as the "honeymoon" stage.
b. During the second stage, excitement turns to disappointment.
c. During the third stage, people often cope by making disparaging remarks about the culture.
d. In the fourth phase, there is acceptance and involvement in activities of the culture.

72. Which statement regarding predeparture training methods is incorrect?
a. The multidimensional approach combines cognitive, affective, and behavioral aspects of training.
b. The self-awareness approach is also called the human relations model.
c. The intellectual model uses a variety of instructional methods such as lectures and video tapes.
d. The interaction approach uses sensitivity training or T-groups.

73. Which of the following statements regarding culture specific negotiation is incorrect?
a. Developing personal relationships is not important to the success of negotiations in Nigeria.
b. Russians see time as money; friendships are not crucial to business.
c. In India, bribery is common; and having connections is important.
d. The French expect everyone to act French when doing business including speaking the language.

74. Which of the following statements regarding negotiation with Japanese people is incorrect?
a. The Japanese use subtle and complex verbal and nonverbal cues.
b. Business meetings should be arranged by an intermediary who has a relationship with both parties.
c. Completing a deal quickly is not important to the Japanese.
d. Negotiation practices are based on keiretsu systems and are viewed as short-term commitments.

75. The Competitive Approach Negotiation Model assumes that
a. the negotiators will force the other partner to comply.
b. negotiators will consider national cultural during the process.
c. negotiators are more individualistic and persuasion oriented.
d. both sides prefer a win-win solution.

76. Which statement regarding negotiation with Germans is correct?
a. In business, Germans are typically individualistic; however, as people they are very group-oriented.
b. Having technical people as part of the negotiation team is important.
c. To a U.S. person, Germans seem very optimistic.
d. Germans feel personal relationships are an important part of negotiations.

77. The four C's of negotiation include all of the following except
a. criteria.
b. compromise.
c. culture.
d. common interest.

78. Recommended intercultural guidelines before negotiations include all of the following except:
a. Decide on your strategy.
b. Define what you want from the negotiation.
c. Discuss differences and come to agreements rather than legal settlements.
d. Research facts such as culture-specific information.

79. The U.S. antiboycott regulation
a. allows U.S. employees to respond to boycotts.
b. allows U.S. firms to ignore trade agreements with certain countries.
c. prohibits U.S. firms from doing business with countries engaged in war activities.
d. prohibits U.S. firms from refusing to do business with friendly nations or respond to a boycott.

80. Which of the following statements regarding governance structure is incorrect?
a. Market governance adds an arbitrator.
b. Bilateral governance has a strong recognition of a continuing economic relationship.
c. In Unified governance, only one party sets the terms.
d. Trilateral governance fits transactions that involve odd goods or a situation in which the establishment of the relationship is expensive.

81. Which statement about contracts is incorrect?
a. If a supplier ships unordered goods to a customer who accepts the shipment, by accepting the shipment the buyer forms a contract.
b. In the U.S., oral contracts are not legally enforceable.
c. In Japan, a contract is always open for renegotiation.
d. Having legal counsel to advise you on the proper way to negotiate contracts in individual countries is recommended.

82. The U.S. Department of Commerce offers all of the following guidelines for distributor agreements except:
a. Translations should be checked for concise meanings.
b. Settle disagreements through an arbitrator.
c. Benefits to both parties should be stated.
d. An oral agreement should conclude the negotiation.

83. Which of the following multinational management orientations considers the culture of the country in which the firm is located?
a. ethnocentric
b. polycentric
c. geocentric
d. regiocentric

84. A business is globalized when it
a. sells in another country.
b. has a distributor in another country
c. can market its product anywhere in the world.
d. produces in another country.

85. Which of the following are examples of subgroups?
a. Jews, Christians, and Muslims.
b. Youth gangs, prostitutes, and drug addicts.
c. Senior citizens, teenagers, and babies.
d. Latin Americans, African Americans, and Asian Americans.

86. Norms are
a. learned through enculturation.
b. clarifications of rules.
c. behavioral expectations of a group.
d. unusual group behaviors.

87. Judy was telling all her friends about what happened at the conference; however, she did not tell them about the job offer she received at the conference.
a. It was wrong of Judy to not share the job information.
b. Information that Judy was willing to share with friends was hidden from their view.
c. What Judy was telling her friends was an example of frontstage culture; however, the job offer is an example of backstage culture.
d. Judy thought her friends would not want to know about the job offer.

88. Which of the following communication barriers is due to a lack of similar life happenings?
a. cultural
b. emotional
c. experiential
d. perceptual

89. Which of the following is NOT a recognized area of cultural intelligence?
a. interpersonal intelligence
b. linguistic intelligence
c. spatial intelligence
d. synergistic intelligence

90. An acculturated person
a. has become part of the melting pot.
b. has become socioculturally assimilated.
c. understands his or her own culture.
d. accepts another culture's ideas.

91. Successful corporations have found that the values, beliefs, and behaviors of the parent corporation
a. do not need to be the beliefs, values, and behaviors of their offices in other cultures.
b. should be the beliefs, values, and behaviors of their offices in other cultures.
c. are the most important variables for success.
d. are unimportant variables for success.

92. The primary dimensions of culture include
a. language, physical, and knowledge.
b. language, physical, and psychological.
c. physical, environment, and nonverbal.
d. human behavior, environment, and processes.

93. A stereotype is
a. a particular definitive description of a culture.
b. invariant across all cultures.
c. a perception about a particular group.
d. not culturally based.

94. According to Axtell's research, U.S. persons have certain stereotypes of people of other nationalities. Which of the following stereotypes is INACCURATE?
a. The French are rude and chauvinistic.
b. Asians are xenophobic.
c. Italians are demonstrative and talkative.
d. The English are friendly and informal.

95. Which of the following does NOT fit the typical stereotype of persons in the United States?
a. friendly
b. hard working
c. monolingual
d. stingy

Instructions: Match the following terms with their definition.

96. Values, ideals and beliefs that one
inherits from one's culture

97. A paragraph used to begin a bad news letter

98. Explains how social structure affects
language; speech emerges in restricted
or elaborated codes

99. Ability of a corporation to market a
product anywhere in the world

100. Family system where one man has many wives

DEFINITION (Select and match from following)Q#96-100:
(A)Bernstein Hypothesis
(B)Buffer
(C)Cultural Heritage
(D)Globalization
(E)Polygyny

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