Professional Documents
Culture Documents
True/False
Answer: False
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
2. In World 3.0, local needs and priorities are largely ignored compared to the economic gains
from global integration.
Answer: False
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: True
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
4. Sigma Inc. conducts for-profit transactions of goods and services across national
boundaries. Sigma Inc. is an example of an international business.
Answer: True
Learning Objective: 5.1
Difficulty: Moderate
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: True
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
6. Most manufacturers today shy away from using global sourcing owing to the growing
concerns over issues related to quality.
Answer: False
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: True
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
8. Franchising refers to acquiring products from abroad and selling them in domestic markets.
Answer: False
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
9. China’s foreign direct investment in the U.S. has led to the creation of many jobs in China.
This is an example of insourcing.
Answer: True
Learning Objective: 5.1
Difficulty: Moderate
AACSB: Diverse and multicultural work environments
10. A foreign subsidiary is a foreign operation completely owned and controlled by a local
firm.
Answer: False
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
11. A foreign subsidiary represents the lowest level of involvement in international operations.
Answer: False
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: True
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
13. The goal of most tariffs is to protect local firms from foreign competition.
Answer: True
Learning Objective: 5.1
Difficulty: Easy
14. NAFTA was formed by the United Kingdom, France, and Germany.
Answer: False
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
15. Executives of transnationals view the entire world as their domain for acquiring resources.
Answer: True
Learning Objective: 5.2
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: True
Learning Objective: 5.2
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
17. Long hours of work and poor working conditions are prevalent in sweatshops.
Answer: True
Learning Objective: 5.2
Difficulty: Easy
18. Nigel is very proud of his British culture and tends to view other cultures as potentially
inferior to his own. This is an example of ethnocentrism.
Answer: True
Learning Objective: 5.3
Difficulty: Moderate
AACSB: Application of knowledge
Bloom’s Taxonomy: Application
Answer: True
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
20. In low-context cultures, what is actually said or written may convey only part, and
sometimes a very small part, of the real message.
Answer: False
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
21. Most communication in low-context cultures takes place via the written or spoken word.
Answer: True
22. Members of monochronic cultures are more flexible in their views of time than those of
polychronic cultures.
Answer: False
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
23. Members of polychronic cultures do not approve of coming late or bringing an uninvited
guest.
Answer: False
Learning Objective: 5.3
Difficulty: Moderate
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: True
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
25. Tight cultures are characterized by clear and rigid social norms.
Answer: True
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: False
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
27. The ecological fallacy refers to the belief that a generalized cultural value, such as
individualism, does not apply equally to all members of that culture.
Answer: False
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
28. People in high-power-distance cultures tend to be tolerant of power and are prone to follow
orders.
Answer: True
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: True
Learning Objective: 5.3
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
30. Intercultural competencies are skills that help an individual to function successfully in
cross-cultural situations.
Answer: True
Learning Objective: 5.4
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Multiple Choice
Answer: E
Learning Objective: 5.1
Difficulty: Easy
AACSB: Analytical thinking
Bloom’s Taxonomy: Knowledge
32. _____ involves managing business and organizations with interests in more than one
country.
A. Global management
B. Territorial management
C. Reshoring
D. Insourcing
E. Economic development
Answer: A
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
33. Which of the following is a common reason for doing international business?
A. Reducing imports
B. Accessing lower-cost labor
C. Boosting domestic demand
D. Establishing market monopoly
E. Promoting ethnocentrism
Answer: B
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
34. Ronald is planning to expand his family business internationally and is currently in the
process of purchasing materials, manufacturing components, and locating business services
around the world. Which of the following best describes his actions?
A. Global sourcing
B. Insourcing
C. Licensing
D. Franchising
E. Outsourcing
Answer: A
Learning Objective: 5.1
Difficulty: Hard
AACSB: Analytical thinking
Bloom’s Taxonomy: Comprehension
35. Sasha, a wealthy industrialist, owns several coffee plantations in Brazil. Encouraged by the
rising sales figures in the domestic market, Sasha decides to sell her local brand of coffee in
markets around the world. Which of the following terms is applicable to this business
strategy?
A. Importing
B. Insourcing
C. Franchising
D. Exporting
E. Licensing
Answer: D
Learning Objective: 5.1
Difficulty: Hard
AACSB: Application of knowledge
Bloom’s Taxonomy: Application
Answer: C
Learning Objective: 5.1
Difficulty: Easy
AACSB: Analytical thinking
Bloom’s Taxonomy: Knowledge
37. When Veriol Inc., a pharmaceuticals company, bought the rights of manufacturing and
selling Nocturne Pharma’s vitamin supplement, Vita Plus, in Mexico, Veriol Inc. engaged
in _____.
A. exporting
B. global sourcing
C. franchising
D. insourcing
E. licensing
Answer: E
Learning Objective: 5.1
Difficulty: Hard
AACSB: Application of knowledge
Bloom’s Taxonomy: Application
38. In _____, the foreign firm buys the rights to use another’s name and operating methods in
its home country.
A. insourcing
B. franchising
C. global sourcing
D. exporting
E. offshoring
Answer: B
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
39. Which of the following terms is used to describe local job creation that results from foreign
direct investment?
A. Restructuring
B. Franchising
C. Offshoring
D. Insourcing
E. Horizontal integration
Answer: D
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
40. When Miriam Inc., a handbag manufacturer headquartered in the U.S., decided to invest in
Japan, it tied up with a Japanese fashion house in order to pool resources, share risks, and
operate the new business together. This is an example of _____.
A. a joint venture
B. a foreign subsidiary
C. a greenfield venture
D. diversification
E. product development
Answer: A
Learning Objective: 5.1
Difficulty: Hard
AACSB: Application of knowledge
Bloom’s Taxonomy: Application
41. A(n) _____ is a local operation completely owned and controlled by a foreign firm.
A. franchise
B. sweatshop
C. foreign subsidiary
D. global strategic alliance
E. export house
Answer: C
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
42. Cases presented before the World Trade Organization for resolution are likely to involve
disputes regarding _____.
A. cultural appropriateness
B. restructures
C. cultural distance
D. ecological fallacy
E. tariffs
Answer: E
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: B
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: D
Answer: A
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
Answer: C
Learning Objective: 5.1
Difficulty: Easy
AACSB: Diverse and multicultural work environments
Bloom’s Taxonomy: Knowledge
47. Which of the following is true with regard to the European Union (EU)?
A. There is an absence of common consensus between the member states of EU with regard to
political integration.
The foregoing was written by Gen Elijah Cobb during the Year 1843,
with the intention of completing, but the state of his health prevented.
He remained at home from 1812 to 1815 or 1816, when he made
several voyages to Europe in the Ship ‘Paragon’ built for him, and
considered at the time one of the finest ships of her day.
In 1818 & 1819 he made two voyages to Africa in the Ship “Ten
Brothers,” taking with him on the first voyage, his son Freeman.
The second voyage, there was much sickness of a contagious
character, and the ship on her return was sunk at the end of the
wharf to prevent contagion in the city of Boston.[7]
He left the sea in 1820, and after that time remained in Brewster,
Mass. filling the various civil offices of Town Clerk, Treasurer,
Inspector General, Representative and Senator, and Justice of
Peace & Quoram, also the military rank of Brigadier General.
He was a strong supporter of the Universalist church of the town,
in whose doctrines he took much interest.
He was tall & straight of fine figure his face very pleasant to look
upon. He loved children and was loved by them. Distinguished for
his sterling integrity as well as talent loved and respected by all who
knew him, he died at the age of eighty. “May our end be like his.”
His body & that of his wife lie in the new cemetery, Brewster.
E. W. C.[8]
Brewster June 19, 1857
LETTERS