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    101) ________ is the set of values, beliefs, rules and institutions held by a specific group of people.   102) The belief that a person's ethnic group or culture is superior to that of others is called ________.   103) ________ refers to detailed knowledge about a culture that enables a person to function.
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    41.Income tax is a direct tax levied on earnings, and:    A. VAT is also a direct tax.   B. VAT is not a tax, in the legal sense.   C. VAT, vertical added tax, is indirect.   D. VAT is an indirect tax.     42.Assumptions that underlie a country's legal, political, and economic systems:    A. do not influence accounting because it is a quantified discipline,.
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    71.The U.S. government's attitude toward transfer pricing on subsidiary transactions in foreign locations is:    A. uninterested, because these transactions are outside the United States and, thus, beyond U.S. jurisdiction.   B. interested, because transfer pricing has tax implications for the host governments— hence the IRS guidelines.   C. neither interested nor uninterested, because, although there are tax implications.
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    81) Mushi Toys selling its products to Tacky Toys is an example of ________. A) importing B) bartering C) exporting D) globalization   82) The products that Mushi Toys manufactures are examples of ________. A) global products B) Internet products C) value-added exports D) tangible products   83) Mushi Toys is an example of a(n) ________. A) domestic company B) multinational company C) direct exporter D).
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    41) Denationalization refers to ________. A) a loss of sovereignty among nations B) national boundaries becoming less relevant C) cooperation between nations to reduce trade barriers D) attempts by international organizations to resolve trade conflicts   42) Which of the following are products marketed in all countries essentially without any changes? A) National products B) Adapted products C) Global.
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  121) Define international business and explain how it affects each of us in our daily activities.   122) Define imports and exports and explain the main ways in which they differ. 123) Define e-business (e-commerce) and explain how it helps companies conduct international business.   124) Define globalization and identify its main characteristics.         .
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    11) The cultural component of aesthetics deals with elements such as imagery, symbolism, and the arts.   12) Black is the universal color that symbolizes death and mourning.   13) When choosing web site addresses or telephone numbers for businesses that serve Chinese customers, entrepreneurs should attempt to include the number four (4),.
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    61) According to the Globalization Index, which of the following is NOT one of the top 10 most globalized nations? A) Switzerland B) Canada C) United States D) Saudi Arabia   62) The world's least global nations account for approximately what percentage of the world's total population? A) 12% B) 36% C) 50% D) 88%   63) The first age of globalization.
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    91.Tax liability on foreign earnings is controlled by:    A. the tax treaties in place between the two relevant countries.   B. the tax rates in the local jurisdictions.   C. how the foreign operations of a company are organized.   D. negotiations between the company and the host country.     92.What is a controlled foreign corporation?    A. A foreign company with one major stockholder in.
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    61.The capital structure of the firm can be raised externally through:    A. leveraging and bonds.   B. debt and equity.   C. debt and retained earnings.   D. retained earnings and bonds.     62.ADRs are a way for non-U.S. firms to:    A. participate in U.S. debt markets.   B. lock in dollar exchange rates.   C. leverage in a foreign currency.   D. participate in local U.S. equity markets without incurring the need for.
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    21.Operating in more than five local currencies is unusual for the international firm.  True    False   22.The overall goal of cash flow management is to reduce risk and position the firm so that it can benefit from opportunities.  True    False   23.For the conservative international firm, there is no reason to move money other than the repatriation of.
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    21) Opponents of globalization argue that it causes a "race to the bottom" in environmental conditions.   22) Research shows that pollution-intensive U.S. companies tend to invest in nations with stricter environmental standards.   23) International firms tend to support reasonable labor and environmental laws to expand future local markets for their businesses. 24) Multinational.
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  129) Identify the World Trade Organization's (WTO) three main goals and explain how the WTO differs from the General Agreement on Tariffs and Trade (GATT). 130) Explain how technological innovation impacts globalization and how it is accelerating the process.                   .
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1) Nokia Corporation uses its knowledge of cultures to adapt its mobile handsets to suit local markets.   2) The first step in analyzing a nation's potential for international business activity is to examine its customs.   3) Ethnocentricity improves the ability to manage new business practices abroad.   4) Democratic nations that value freedom of.
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    81) Which of the following would likely experience the LEAST amount of cultural diffusion? A) Two subcultures located on a coast with navigable waterways B) Two subcultures separated by an impassable mountain range C) Neighboring cultures located adjacent to each other on a land mass D) Neighboring cultures located next to each other in.
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  131) Describe brain drain and its impact (positive and negative) on an economy.   132) Describe the relation between culture and the physical environment, explaining the roles of topography and climate. 133) How can a nation's topography affect the existence of subcultures?         .
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  99.Is triple-bottom-line accounting a reasonable approach to encourage businesses to take responsibility for the impact of their actions on social and environmental systems, or does it place an unrealistic burden on businesses to measure what may not be measurable?            100.How could an IC benefit from leading and lagging?              .
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    111) Two types of customs are ________ and ________ customs.   112) A(n) ________ is behavior, often dating back several generations, that is practiced by a homogeneous group of people.   113) A(n) ________ is behavior shared by a heterogeneous group of people or by several groups.   114) Collections of two or more people who.
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    31) Typically, the first step in the process of analyzing a nation's potential as a host for international business activity is to ________. A) assess its overall business climate B) analyze its religious environment C) investigate its history of corruption D) evaluate its legal system 32) Which of the following terms is defined as the.
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    101) Goods and services sold abroad and sent out of a country are called ________.   102) The term ________ refers to national boundaries becoming less relevant.   103) The term ________ refers to entities cooperating across national boundaries.   104) Companies that sell global products can reduce costs by ________ certain marketing activities.   105) Makers of.
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    71) Which of the following terms is used to refer to widespread job turnover throughout an economy? A) Redeployment B) Churning C) Wage differentials D) Attrition spectrum   72) Trade unions claim that by permitting international firms to continually move to nations with relatively lower labor standards, globalization ________ labor's bargaining power and forces overall labor.
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    91) Hearing Ketan's comment, Tom responded, "I believe that salvation comes from faith in God and that hard work gives glory to God. So my friend, work hard and have faith in God." Based on this comment, which religion does Tom most likely practice? A) Protestantism B) Buddhism C) Islam D) Confucianism   92) To celebrate.
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    31.Multilateral netting reduces foreign exchange transaction costs.  True    False   32.Unanticipated shifts in exchange rates present risk to the international firm.  True    False   33.There are four main types of FX risk: transaction, translation, economic, and arbitrage exposure.  True    False   34.In exposure netting, a risk management technique similar to multilateral netting, the firm runs a centralized clearing account that matches and.
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    41) Which color is primarily associated with funerals in Japan? A) Black B) White C) Jade D) Tan   42) Which of the following terms is used to refer to the ideas, beliefs, and customs to which people are emotionally attached? A) Aesthetics B) Social structure C) Manners D) Values   43) The United Kingdom and the United States value ________, whereas.
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    11) A country's GDP per capita is its GDP divided by its population.   12) Extranets give distributors and suppliers access to a company's online database to place orders electronically.   13) One commonality among the world's least-global nations is low levels of corruption. 14) The role of the World Bank is to provide financing.
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    91) Jeans, Unlimited has designed a new line of accessories and must build a new facility to produce them. To avoid paying tariffs when importing raw materials for processing and when exporting finished goods, the company should consider locating its assembly plant in a(n) ________. A) developing country B) export processing zone C).
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    21) Religion strongly affects the kinds of goods and services acceptable to Muslim consumers.   22) Hindus and Buddhists both seek "nirvana," a state of eternal happiness.   23) French is the most widely used "lingua franca" in international business.   24) Literacy tests offer a reliable basis on which to compare one nation's education level.
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    81.In a forward market hedge for transaction exposure, the firm sells forward:    A. foreign currency receivables for the home currency, matched to the due date of the receivables.   B. domestic currency receivables for the foreign currency, matched to the due date of the receivable.   C. its anticipated sales in the foreign currency.   D. its projected earnings in the.
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    51) When Russian politicians complain about the Snickerization of their culture, they are complaining about which of the following? A) Lingua franca B) Social mobility C) Cultural identification D) Cultural imperialism 52) When a manager walks employees through every step of an assignment and monitors the results at each stage, this process is called ________. A).
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  131) What factors help make some countries more global than others? Identify several highly global nations. 132) One argument in the debate surrounding globalization is about the inequality between nations. Discuss the major points of the inequality between nations argument and describe how falling barriers to trade and investment might help.
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1) International business is any commercial transaction that crosses the borders of two or more nations.   2) Imports are goods and services purchased abroad and brought into a country.   3) Products marketed in all countries essentially without any changes are known as sourced products.   4) The term globalization of production refers to convergence.
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    111) The Globalization Index comprises a compilation of over a dozen variables within four categories, including political engagement, ________, personal contact, and economic integration. 112) Drivers of the first age of globalization (from the mid-1800s to the 1920s) included the steamship, telegraph, railroad, and later, the ________ and airplane.   113) ________ are.
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    51) A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to ________. A) erect barriers to trade B) dismantle bilateral trade agreements C) govern exchange rates D) enforce world trade rules   52) Which of the following most likely represents the greatest accomplishment of the 1994.
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  121) Identify the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business. 122) Explain the concept of culture. Why is it important to avoid ethnocentricity and gain cultural literacy?   123) Describe two ways in which nation-states support and promote national culture, giving.
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    71) The world's second largest religion is ________. A) Judaism B) Hinduism C) Islam D) Confucianism   72) Nations governed by which religion segregate the sexes at certain activities and locations such as in school? A) Confucianism B) Hinduism C) Buddhism D) Islam   73) For Hindus, the highest goal of life is ________. A) moksha B) halal C) kosher D) material wealth   74) A company that.
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    51.The U.S. body that establishes accounting standards, the FASB, is:    A. a branch of the U.S. government.   B. elected by seat holders on the NYSE.   C. appointed by the chair of the U.S. House of Representatives Banking Committee.   D. a private organization.     52.The United States is moving toward convergence with IASB standards:    A. and is the only major economy that does.
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    31) All goods and services purchased abroad and brought into a country are called ________. A) domestic products B) exports C) national products D) imports   32) Any commercial transaction that crosses the borders of two or more nations is known as ________. A) an export B) e-business C) international business D) an import 33) ________ are all goods and services.
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  124) Why is it important for firms to recognize and understand the concept of subculture? Provide an example with your answer. 125) Describe any three major components of culture.   126) Provide a definition of attitudes. How do attitudes differ from values?  How do cultures differ in their attitudes toward cultural change?       .
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    61) The practice whereby managers and other employees often try to find jobs inside their own companies for relatives is known as ________. A) insider hiring B) nuclear family association C) nepotism D) social stratification   62) Which of the following terms is used to refer to a collection of two or more people who identify.
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  139) Describe key characteristics of a born global firm, and explain why a born global firm would be attuned to international firm management. 140) Explain globalization of production and include its benefits. Why should a company study international firm management if its leadership commits to globalization of production?       .
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  135) Globalization's impact on jobs and wages is an important topic for debate. Discuss the major points for globalization in the jobs and wages debate, and describe how the actions of large multinational corporations affect the issues in the jobs and wages debate. 136) Explain how technological innovation has benefitted entrepreneurs.         .
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