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    41.IMF quotas are determined by the relative size of a nation in the global economy and:    A. determine the weight of the nation's voting in the IMF.   B. determine how much a nation can borrow from the IMF.   C. are the nation's "dues" to the IMF.   D. all of the above.     42.The IMF initially played a central role in:    A. establishing.
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    11.Hall's high-and low-context framework is based upon communication styles.  True    False   12.In Hall's use, context is the irrelevant environment in a communication act.  True    False   13.Low-context cultures such as the United States have explicit communication patterns.  True    False   14.Low-context cultures tend to be polychronic, with a lot going on at one time.  True    False   15.In high-context cultures, people tend to form long-lasting.
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    31.A nation's relative ability to design, produce, distribute, or service products within an international trading context, while earning increasing returns on its resources, is known as national competitiveness.  True    False   32.The primary reason for international trade is a lack of natural resources in the developed nations.  True    False   33.According to the text, differences in taste, a.
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True / False Questions  1.We are each born with a unique culture.  True    False   2.International business managers need to be able to communicate across cultural borders, even if they don't speak foreign languages.  True    False   3.Anthropologist E. T. Hall suggests that to learn another culture, you need to spend two weeks in it with a training program.  True    False   4.When.
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    61.Under new institutional theory, institutions can be categorized as formal and informal, and the informal institutions can be further categorized as:    A. normative and cognitive.   B. normal and abnormal.   C. informally cognitive and formally cognitive.   D. effective and ineffective.     62.In developing economies, informal institutions tend to play a greater role than in developed economies, possibly because    A. the developing economies have.
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    51.In a small power distance culture:    A. people will want direction, so top-down leadership styles are appropriate.   B. seniority, rank, and title are important.   C. first names are likely to be used in the office because the ideal is equality.   D. A and C.     52.Uncertainty avoidance describes man's search for Truth, according to Hofstede, because:    A. Truth is primary to our.
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    51.World Bank studies have shown that underdevelopment is often due to:    A. factors such as parasites and viruses that are a part of tropical climates and expand unchecked because of the lack of winter temperatures.   B. mental slowness in people of the climates around the equator.   C. socialist political regimes.   D. lack of government investment in education.     52.Petroleum, a.
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    81.The theory of overlapping demand:    A. explainshow international trade in manufactured goods will be linked to gross national income.   B. states that a nation will trade goods that can be produced with the production factor that is most abundant.   C. explains why companies will add excess capacity to their production systems.   D. two of the above.   E. none of A,.
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    61.Musical tastes vary across cultures:    A. and are built on the solid foundation of the octave.   B. which is why they need to be understood by marketers who use music in commercials.   C. and come together in the Silk Road.   D. A and D.     62.Lack of folklore knowledge is illustrated by:    A. Smirnoff's use of a Che Guevara image in Cuba,.
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    91.According to opponents of the globalization of trade and investment:    A.globalization has produced uneven results across nations and people.   B.globalization has had harmful effects on labor and labor standards.   C.globalization has contributed to a decline in environmental and health conditions.   D.all of the above.   E.two of A, B and C.     92.According to the text, the reasons.
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    21.Because it is a high polluter, coal is on the decline as an energy source.  True    False   22.Biomass is a category of renewable energy fuels based on their heavy weight.  True    False   23.Sustainable approaches in business usually involve trade-offs such as lower profits compensated by reduced marketing costs and improved image/reputation.  True    False   24.Limits, interdependence, and equity are characteristics.
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    31.Culture includes everything objective, and religion contains values and is thus not a part of culture.  True    False   32.Leadership is universal; all people want to be led by a strong leader.  True    False   33.Human resources are influenced by cultural values because values are the foundation of motivation and evaluation.  True    False   34.There are few cultural misunderstandings in the discipline.
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    91.Rare earths are a group of elements used in:    A. jewelry.   B. technology applications.   C. farming.   D. solar applications.     92.Which country controls the export market of rare earths?    A. Brazil   B. Russia   C. the United States   D. China     93.Why are rare earths a concern in industrialized economies?    A. Although they are relatively common, they do not occur in concentrated form often.   B. They are very rare.   C. They are used in the smelting process.   D. They.
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    51.According to the Exporter Data Base, small and medium-sized enterprises accounted for ___________ of all U.S. exporters.    A. under 10 percent   B. 25 percent   C. nearly half   D. 86 percent   E. nearly 98 percent     52.Regarding the volume of international trade, exports of goods and services ___________ in 2010.    A. were nearly $4.0 trillion   B. reached $5.8 trillion   C. were $10.4 trillion   D. were nearly $19.0 trillion   E. exceeded $24.5 trillion     53.One measure.
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    91.The main purpose of the OECD is to:    A. provide economic research and a discussion forum.   B. function as a developed-nation cartel.   C. limit growth in developing economies.   D. support trading patterns within the group of developed nations.     92.The OECD has encouraged members to:    A. develop trade relationships within the OECD only.   B. eliminate bribery in all commercial transactions.   C. standardize electrical wave signals.   D. extend their.
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    41.Historically, approximately two-thirds of the value of corporate investments made in the United States from abroad has been spent to acquire going companies rather than to establish new ones.  True    False   42.Industrialized nations invest primarily in one another just as they trade more with one another.  True    False   43.If a nation is continuing to receive appreciable.
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    91.The characteristics of Hofstede's long-term orientation include:    A. social order and hierarchical relationships.   B. perseverance, pragmatism, and hierarchy.   C. the centrality of spending.   D. planning in the medium-short term.     92.Latin and Asian countries' scores on Hofstede's power distance dimension are relatively large and relatively low on:    A. the individualism dimension.   B. transparency.   C. masculinity.   D. femininity.     93.The Trompenaars dimension that describes a society whose rules regulate behaviors for.
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    99.Why should international managers study the religion of the country they are planning to work in even if they are not especially interested in the general area of religion?            100.What two aspects of the culture frameworks would you share with a colleague leaving on her first foreign assignment, and why?              .
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    21.The theory of absolute advantage suggests that under free, unregulated trade, each nation should specialize in producing those goods it can produce most efficiently.  True    False   22.Adam Smith explained how countries can benefit from international trade even if they lack any absolute advantage over their trade partners.  True    False   23.According to the theory of comparative advantage,.
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            97.Given what you have read about institutional theory, comment on the quote from William Inge, former dean of St. Paul's, London: "Every institution not only carries with it the seeds of its own dissolution, but prepares the way for its most hated rival."            98.The five principles of the WTO (trade without.
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True / False Questions  1.Switzerland exports cheese and chocolate because one of its factor endowments is lots of rich agricultural land.  True    False   2.Porter's diamond can be used to explain the importance of the environment and natural resources.  True    False   3.Porter's diamond model suggests that Switzerland should not be competitively successful.  True    False   4.Porter suggests that adverse conditions can motivate.
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True / False Questions  1.Record levels of American outward foreign direct investment from 2000 to 2009, totaling more than $2 trillion, caused U.S. exports to decline during this time period.  True    False   2.Small and medium-sized enterprises accounted for nearly one-third of all U.S. exporters.  True    False   3.International trade includes exports, imports, and foreign direct investment.  True    False   4.Importing and foreign.
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    71.Because of their close linkage, sociologists often combine the terms:    A. social and cultural.   B. social and kinship.   C. kinship and monogamy.   D. culture and monogamy.     72.When you assert that a certain aspect of your own culture is superior, you are probably exhibiting:    A. objective observation.   B. ethnocentric behavior.   C. yourunderstanding of truth.   D. your hunches.     73.E. T. Hall suggests that to learn another culture, you have to.
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    81.ASEAN began as a:    A. free trade pact.   B. cooperativemarketing alliance among Southeast Asian nations.   C. security and military alliance among Southeast Asian nations.   D. response to the EU.     82.The Organization for Economic Cooperation and Development provides information on:    A. militaryalliances.   B. economic and other activities within its member-nations.   C. trade imbalances for nonmember countries.   D. sovereign debt risk.     83.The following country is not a member of ASEAN:    A. Indonesia.   B. Vietnam.   C. Cambodia.   D. China.     84.How.
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      97.One danger of using the frameworks in this chapter is that if they are applied prescriptively, they may well lead to a sophisticated form of stereotyping. Explain this danger and suggest ways to avoid it.            98.Explain Trompenaars' achievement-ascription dimension, and comment on its usefulness in an international business setting.            .
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True / False Questions   1.As discussed in the chapter, institutions are organizations constructed to create jobs for government employment initiatives.  True    False   2.New institutional theory suggests that institutions be understood as collections of rules and codes of conduct that limit behavior.  True    False   3.One of the significant differences between formal and informal institutions is how they.
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    31.Environmental sustainability is about maintaining the environment, and it is both local and global.  True    False   32.Environmentally sustainable businesses need to consider the economic and ecological systems in which they function, but not the social.  True    False   33.Sustainable business practices have three characteristics: limits, interdependence, and equity.  True    False     Multiple Choice Questions  34.The relationships among ecological, social, and economic systems.
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    31.Institutions are constructed to provide meaning and stability to social life, regulate the relations of individuals to each other, and limit behavior of individuals and firms.  True    False   32.Formal institutions operate through laws and regulations. They require members to make a written commitment.  True    False   33.Cognitive institutions are important to the international manager because these institutions.
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    71.The World Bank's two major institutions are the International Development Association and the:    A. Collateral-Based Lending Agency.   B. International Bank for Reconstruction and Development (IBRD).   C. International Microloan Bank.   D. International Bank for Development.     72.The geographical area that receives the most International Development Association (IDA) credits and grants is:    A. East Asia.   B. Latin America and the Caribbean.   C. Africa.   D. Middle East.     73.IDA's purpose is to loan.
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    21.Trompenaars' dimension of universalism vs. particularism measures whether rules or rewards regulate behaviors.  True    False   22.Trompenaars' dimension of individualism vs. communitarianism differs greatly from Hofstede's individualism-collectivism dimension.  True    False   23.The specific-diffuse dimension has to do with social patterns for child rearing.  True    False   24.Your neighbor's business is cutting down an acre of first-growth, virgin forest and planting a lawn.
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    61.International business differs from domestic business in that a firm operating across borders must deal with:    A.all of C, D, and E.   B.two of C, D, and E.   C.the foreign environment.   D.the international environment.   E.the domestic environment.     62.Environment as used in the textbook is the forces surrounding and influencing the life and development of the firm.
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  101.Discuss the theory of absolute advantage and how it explains the basis for trade between nations.            102.Discuss the keystone of international trade, the theory of comparative advantage.            103.Discuss Dunning's eclectic theory of international production as a theory to explain flows of international trade and foreign direct investment.              .
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    81.Instead of declining, this nonrenewable energy source, because of its lack of pollution and the rising price of oil, has seen significant growth:    A. wind power.   B. nuclear power.   C. geothermal power.   D. petroleum.     82.Although it pollutes heavily, this energy source is on the rise everywhere, especially in China:    A. natural gas.   B. coal.   C. nuclear.   D. diesel.     83.This is the only industrialized country that has not ratified.
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    51.Economic integration often progresses:    A. in stages, from free trade area to customs union to common market.   B. in stages, totally dependent on the members' national economic strength.   C. as a result of cultural beliefs and economic strength.   D. in unpredictable ways due to unintended consequences.     52.Most African nations have their main trade relationships:    A. within local FTAs.   B. with other African nations.
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    71.The international environment is the interactions between:    A.the domestic environmental forces and the foreign environmental forces.   B.the domestic controllable forces and the domestic uncontrollable forces.   C.the foreign environmental forces of two countries when an affiliate in one country does business in another country.   D.two of the above.   E.all of A, B, and C.     72.According to the.
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    81.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     82._______ refers to the transportation of any domestic good or service to a destination outside a country or region.    A.Importing   B.Foreign direct investment   C.Exporting   D.International business   E.None of the above     83.The level of service exports worldwide increased more than _______ between.
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    41.Culture is a group of shared worldviews, social rules, and interpersonal dynamics that is:    A. chosen consciously by each group to set themselves apart from other groups.   B. learned, interrelated, and shared.   C. used as a way to separate economic classes.   D. a collection of noble pursuits including opera, art, ballet, and classical music.     42.Culture includes everything but:    A. religion.   B. religion and.
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    11.The Bretton Woods Conference established the European Union currency, the euro.  True    False   12.The World Bank funds infrastructure projects in developed countries.  True    False   13.Some think that renewed focus on exchange rates would be a good path forward for the IMF, which is struggling with core issues related to its purpose.  True    False   14.The World Bank is made up.
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  97.Identify and discuss the five major kinds of drivers that are leading international firms to the globalization of their operations.            98.Discuss the arguments supporting and opposing globalization of trade and investment.            99.Explain the different reasons for firms to enter foreign markets.            100.Identify the seven dimensions along which management can globalize in organizing their.
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    71.Adam Smith claimed that:    A. governments, not market forces, should determine the directions, volume, and composition of international trade.   B. a nation could trade advantageously if it had a comparative advantage.   C. market forces, not government controls, should determine direction, volume, and the composition of international trade.   D. customers' tastes are affected by income levels.   E. two of the above.     72.The.
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  Essay Questions  99.Discuss the advantages in focusing attention on a nation that is already a sizable purchaser of goods coming from the exporter's home country.            100.Explain the logic of mercantilism and why it is generally viewed as a deficient theory.                    .
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    91.At the beginning of 2010, the value of the outstanding stock of foreign direct investment of all nations totaled more than:    A. $500 billion.   B. $3 trillion.   C. $12 trillion   D. $19 trillion.   E. $21 trillion.     92.Regarding the annual outflows of foreign direct investment:    A. the overall volume that came from developing nations in 2009 was nearly five times the level from those.
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    61.In examining the volume of international trade:    A. the proportion of manufacturing value added generated by South and East Asia has quadrupled since 1980.   B. the proportion of manufacturing value added generated by Latin America has doubled since 1980.   C. the proportion of world exports and imports accounted for by the 10 largest exporting and importing.
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    21.Economic cooperation often begins with a common market, as in the case of the EU.  True    False   22.In a customs union, common external tariffs are added to an existing FTA, as found in the Southern African Customs Union and Mercosur.  True    False   23.Among trading blocs, the EU has the largest GDP per capita.  True    False   24.Trading blocs always bring.
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    61.The three characteristics of evolving sustainable business practices are:    A. local, global, and improving quality of life.   B. environmental sustainability, quality-of-life sustainability, and triple-bottom-line accounting.   C. limits, interdependence, and equity.   D. none of the above.     62.Sam Palmisano, CEO of IBM, has described a new way of doing business that goes to equity of distribution by observing that:    A. profit sharing will.
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    11.Every coast between 20 and 30 degrees of the equator (north or south) is dry.  True    False   12.Bodies of water, much like deserts and mountains, also serve as barriers to trade.  True    False   13.Climate differences explain differences in human and economic development because the less temperate climates limit mental powers.  True    False   14.Nonrenewable energy sources include coal, fossil fuels,.
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    11.The proportion of merchandise exports coming from Asia increased by over 90 percent between 1980 and 2010, with China accounting for nearly two-thirds of that increase.  True    False   12.In 2009, the top 10 exporting and importing nations collectively accounted for over half of all exports and imports of merchandise and services worldwide.  True    False   13.Both developed.
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    71.Every continent has inland waterways that provide inexpensive access to interior markets except:    A. Russia.   B. North Africa.   C. Australia.   D. North America.     72.The North-South divide uses climatic differences to explain:    A. population differences.   B. trade patterns.   C. differences in human development.   D. cultural differences.     73.Studies conducted by the World Bank indicate that tropical climates allow for:    A. the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.   B. lack.
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    41.With factor conditions, Porter's diamond model distinguishes between basicfactors, those a country inherits, and    A. importedfactors, those it brings in from abroad.   B. demandconditions, the aggregate demand in the economy.   C. climateconditions, the basic influence on business options in the specific location.   D. advancedfactors, those a country can mold: labor and infrastructure.     42.Swiss exports are concentrated, high-density products that.
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    81.In high-context cultures, relationships tend to be:    A. short term.   B. medium term, except for family.   C. long term.   D. pragmatic.     82.Hall's high and low context is based upon communication styles and specifically on the role of:    A. the speakers.   B. nonverbal behavior.   C. the medium.   D. context.     83.In HC cultures, time tends to be:    A. loosely conceived.   B. tightly planned.   C. monochronic.   D. polychronic.     84.Whereas Trompenaars was trained as an economist, Hofstede and Hall were trained.
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