International Business Concepts
48 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which term describes the degree to which a society values individual self-interests as opposed to group interests?

  • Individualism–collectivism (correct)
  • Insourcing
  • Political risk
  • Power distance

What is the nature of high-context cultures in communication?

  • They focus exclusively on numerical data.
  • They rely solely on written words.
  • They value direct and explicit speech.
  • They depend on non-verbal and situational cues. (correct)

What economic policy involves the use of tariffs to shield domestic industries from foreign competition?

  • Regional economic alliances
  • Licensing agreement
  • Protectionism (correct)
  • Most favoured nation status

Which type of cultural context emphasizes communication through spoken or written words?

<p>Low-context cultures (D)</p> Signup and view all the answers

What does 'insourcing' refer to in an economic context?

<p>Job creation through foreign direct investment. (D)</p> Signup and view all the answers

Which of the following best describes a joint venture?

<p>A partnership of local and foreign firms in a shared enterprise. (B)</p> Signup and view all the answers

What is most favoured nation status?

<p>A designation that ensures a country receives the best trade terms. (B)</p> Signup and view all the answers

What implication does political risk have for foreign investments?

<p>It indicates a risk of losing value due to political instability. (B)</p> Signup and view all the answers

Which of the following represents a characteristic of short-term oriented cultures?

<p>Emphasis on immediate results (D)</p> Signup and view all the answers

How do high uncertainty avoidance cultures typically handle risk?

<p>Through strict rules and policies (A)</p> Signup and view all the answers

What is an indicator of overall quality of human experience in the workplace?

<p>Job satisfaction (A)</p> Signup and view all the answers

In the context of Hofstede’s cultural dimensions, what does a low power distance indicate?

<p>Less hierarchical structures (C)</p> Signup and view all the answers

Which dimension of Hofstede’s model relates to strong preferences for rules to minimize uncertainty?

<p>Uncertainty avoidance (C)</p> Signup and view all the answers

What is a primary characteristic of masculine cultures according to Hofstede?

<p>Prioritization of competition and achievement (B)</p> Signup and view all the answers

Which statement best describes a culture with high power distance?

<p>Decision-making is centralized among leaders (A)</p> Signup and view all the answers

Which of the following does NOT describe job satisfaction?

<p>Reflection of societal status (C)</p> Signup and view all the answers

What defines individualism in a cultural context?

<p>Prioritizing individual achievements over group goals (B)</p> Signup and view all the answers

What best describes a characteristic of high power distance cultures?

<p>Strong acceptance of inequalities in power (D)</p> Signup and view all the answers

Which feature is associated with long-term orientation in cultural dimensions?

<p>Planning for future success (D)</p> Signup and view all the answers

How do monochronic cultures typically view time?

<p>As a linear sequence, focusing on single tasks (D)</p> Signup and view all the answers

Which of the following is a characteristic of low-context cultures?

<p>Emphasis on clear, direct communication (C)</p> Signup and view all the answers

Which country is expected to score high in individualism?

<p>United States (C)</p> Signup and view all the answers

What is generally true about people from high power distance cultures?

<p>They typically respect hierarchical authority (D)</p> Signup and view all the answers

In what way do long-term oriented cultures typically make decisions?

<p>Considering future implications and long-term success (B)</p> Signup and view all the answers

Which of the following statements best describes high uncertainty avoidance cultures?

<p>They avoid risks and prefer clear rules (D)</p> Signup and view all the answers

What is the primary focus of Hofstede’s dimension of individualism vs. collectivism?

<p>How people prioritize personal goals vs. group goals (A)</p> Signup and view all the answers

Which market entry strategy involves utilizing foreign suppliers for cost-effective production?

<p>Global sourcing (D)</p> Signup and view all the answers

What cultural dimension addresses expectations regarding unequal power distributions in society?

<p>Power distance (A)</p> Signup and view all the answers

What type of agreement allows a company to use another company's brand and business model for a fee?

<p>Franchising (A)</p> Signup and view all the answers

In Trompenaars’ dimensions, what does universalism vs. particularism primarily investigate?

<p>Acceptance of general rules vs. specific circumstances (A)</p> Signup and view all the answers

Which characteristic is most commonly associated with cultures that embrace collectivism?

<p>Valuing group harmony and relationships (C)</p> Signup and view all the answers

Which type of cultural dimension indicates a society's view on the morality of competition?

<p>Masculinity vs. femininity (C)</p> Signup and view all the answers

What motivates multinational corporations to enter joint ventures?

<p>To avoid risks associated with direct ownership (C)</p> Signup and view all the answers

Which characteristic is typical of low-context cultures?

<p>Use of direct and clear language (D)</p> Signup and view all the answers

What might be a common complaint from host countries regarding multinational corporations?

<p>Excessive profits and local economic domination (C)</p> Signup and view all the answers

In which country is homeownership relatively low, according to the content?

<p>Switzerland (C)</p> Signup and view all the answers

What is a social perception of homeownership mentioned in the content?

<p>It symbolizes economic well-being and success. (B)</p> Signup and view all the answers

How do housing prices in Switzerland compare to those in the UK?

<p>They have increased less drastically due to different market factors. (B)</p> Signup and view all the answers

What can contribute to the pressure individuals feel regarding homeownership?

<p>Social norms linking homeownership to success (A)</p> Signup and view all the answers

Which aspect is NOT typically associated with low-context communication?

<p>Reliance on shared experiences (C)</p> Signup and view all the answers

What was a significant consequence of the policies promoting homeownership after WWII?

<p>A rapid rise in homeownership rates (B)</p> Signup and view all the answers

How can high rates of homeownership negatively affect the economy?

<p>It contributes to housing shortages due to homeowner resistance to new developments (A)</p> Signup and view all the answers

What is a common misconception about renting versus buying a home?

<p>Both renting and homeownership can have equivalent long-term costs. (A)</p> Signup and view all the answers

Which country is known for its strong protections for renters?

<p>Switzerland (C)</p> Signup and view all the answers

What is a common feature of government policies promoting homeownership?

<p>Inclusion of mortgage interest deductions (C)</p> Signup and view all the answers

What has been the effect of government investment in homeownership policies?

<p>Minimal net effect on increasing homeownership (B)</p> Signup and view all the answers

What is one major challenge facing intra-regional trade in Sub-Saharan Africa?

<p>Non-tariff barriers such as excessive documentation (B)</p> Signup and view all the answers

What potential benefit could arise from reducing trade barriers in Sub-Saharan Africa?

<p>A reduction in the cost of moving goods by up to 17% (A)</p> Signup and view all the answers

Flashcards

High-context culture

A culture relying on non-verbal and situational cues in communication.

Importing

Selling domestically-produced goods that came from abroad.

Individualism-collectivism

The importance of individual vs. group interests in a society.

Intercultural competencies

Skills to work well in various cultures.

Signup and view all the flashcards

International business

A business conducting commerce across borders.

Signup and view all the flashcards

Low-context culture

A culture emphasizing clear spoken or written communication.

Signup and view all the flashcards

Monochronic culture

A culture where people tend to do one task at a time.

Signup and view all the flashcards

Political risk

Potential loss in foreign investment due to instability.

Signup and view all the flashcards

Individualism

Prioritizing personal achievements and goals over group goals.

Signup and view all the flashcards

High Power Distance

Respect for authority and hierarchical structures; accepting power differences.

Signup and view all the flashcards

Long-Term Orientation

Focusing on future rewards and long-term success.

Signup and view all the flashcards

High Individualism Score

Countries where people prioritize individual achievements and goals over group goals.

Signup and view all the flashcards

High Power Distance Characteristic

Respect for hierarchy and authority is a key aspect of these cultures.

Signup and view all the flashcards

Low Context Culture Characteristic

Direct communication with clear meanings; words matter most.

Signup and view all the flashcards

Short-term oriented culture

Prioritizes immediate results and social pressures over long-term goals.

Signup and view all the flashcards

High uncertainty avoidance

Preference for strict rules and structured environments to minimize risk.

Signup and view all the flashcards

Job satisfaction

Measure of contentment with work roles and environment.

Signup and view all the flashcards

Low power distance

Cultures with less hierarchical structures and more equality in decision-making.

Signup and view all the flashcards

Uncertainty avoidance (Hofstede)

Extent to which a culture feels threatened by ambiguous situations and tries to avoid them.

Signup and view all the flashcards

Masculine culture (Hofstede)

Prioritizes competition, assertiveness, and material success.

Signup and view all the flashcards

High Power Distance Cultures

Cultures that accept an unequal distribution of power and authority.

Signup and view all the flashcards

Low-Context Communication

Communication that relies heavily on explicit verbal communication, rather than shared context or nonverbal cues.

Signup and view all the flashcards

Uncertainty Avoidance

The degree to which a society tolerates uncertainty and ambiguity. High uncertainty avoidance cultures prefer clear rules and structured environments.

Signup and view all the flashcards

Individualism vs. Collectivism

This dimension measures whether people prioritize their own personal goals over the goals of the group or community.

Signup and view all the flashcards

Global Sourcing

A strategy where companies use foreign suppliers to produce goods at a lower cost than in their home country.

Signup and view all the flashcards

Power Distance

This dimension reflects how much a society expects and accepts unequal power distribution among individuals in workplaces and organizations.

Signup and view all the flashcards

Franchising

Allows a business to operate using the brand name and business model of another company, often for a fee or royalty.

Signup and view all the flashcards

Universalism vs. Particularism

This dimension explores the extent to which people apply universal principles or prioritize individual relationships in making decisions.

Signup and view all the flashcards

Masculinity vs. Femininity

Measures the degree to which a culture emphasizes assertiveness, competition, and achievement versus cooperation, caring, and quality of life.

Signup and view all the flashcards

Prescription vs. Achievement

A cultural difference in judging people based on their background and social status (prescription) or their accomplishments (achievement).

Signup and view all the flashcards

Joint Venture

Collaboration between two or more companies to share risks and resources in a foreign market.

Signup and view all the flashcards

Host Country Complaint

A concern that a host country may have about multinational corporations, such as excessive profits or domination of the local economy.

Signup and view all the flashcards

Homeownership Perception

The idea that owning a home is a sign of success and economic well-being, often with societal pressure to buy.

Signup and view all the flashcards

Global Homeownership Variations

Differences in homeownership rates across countries due to factors like market conditions and cultural attitudes.

Signup and view all the flashcards

Swiss Homeownership

Switzerland has a relatively low homeownership rate (38%) due to factors like government policies and housing market dynamics.

Signup and view all the flashcards

UK Homeownership

The UK has a higher homeownership rate (around 66%) compared to Switzerland, influenced by factors like historical trends and market conditions.

Signup and view all the flashcards

Post-WWII Housing Policies

Government policies after World War II, such as tax breaks, low-interest loans, and mortgage subsidies, aimed at encouraging homeownership. These policies led to a significant increase in homeownership but also contributed to financial instability in the long run, including the 2008 financial crisis.

Signup and view all the flashcards

NIMBY Effect

The "Not In My Backyard" attitude that characterizes homeowners' resistance to new development projects in their neighborhoods, often driven by concerns about property values and perceived negative impacts.

Signup and view all the flashcards

Homeownership and Workforce Mobility

High homeownership rates can limit workforce mobility, as people are less likely to relocate for job opportunities due to the financial burden and hassle of selling a home.

Signup and view all the flashcards

Renting vs. Homeownership Costs

While renting is often perceived as throwing away money, the costs of renting and homeownership can be comparable in the long term. Homeowners face costs like mortgage payments, insurance, maintenance, and repairs, which can make renting a more financially viable option in certain situations.

Signup and view all the flashcards

Swiss Rental System

Switzerland has a robust rental system that provides strong protections for tenants, including long leases and stable rent prices, offering renters more financial security compared to other countries.

Signup and view all the flashcards

Government Homeownership Policies

Governments often encourage homeownership through various policies, such as mortgage interest deductions, tax breaks, and help-to-buy schemes, but the effectiveness of these policies in increasing actual homeownership is often debated.

Signup and view all the flashcards

Intra-Regional Trade in Sub-Saharan Africa

Sub-Saharan Africa has a significantly lower rate of intra-regional trade compared to other regions, such as North America and Western Europe, due to various challenges.

Signup and view all the flashcards

Trade Barriers in Sub-Saharan Africa

Non-tariff barriers, such as excessive documentation, inefficient customs procedures, and poor infrastructure, hinder trade in Sub-Saharan Africa, increasing the costs of moving goods.

Signup and view all the flashcards

Study Notes

Globalization

  • A process of increasing interdependence among global components (correct)
  • Not the same as a financial crisis or a collapsing world
  • A popular topic in some business discussions, but not all industries
  • Commonly discussed in international business

Manufacturing in Different Countries

  • Often referred to as global sourcing
  • Involves purchasing materials, components, or services from around the world to reduce costs

Systematic Thinkers

  • Typically approach problems using a rational, step-by-step analytical process

Management Function: Setting Objectives

  • The essence of the planning management function

Ethical Issues in Multinational Enterprises

  • Discrimination based on cultural or ethnic differences

Quality of Work-Life Indicators

  • Safe work environment
  • Job security
  • Opportunities for personal growth
  • High shareholder dividends are not a quality of work-life indicator

Licensing Agreements

  • Transactions where a new cereal company pays 10% gross salary to Kellogg's for trademark use
  • A type of franchising (correct)

Motivation for Internationalization

  • Market diversification
  • Access to cheaper resources
  • Risk management
  • Avoidance of local regulations is not a common motivation

Cultural Dimensions (Hofstede)

  • Power Distance: the acceptance of unequal power distribution in a society. High power distance indicates a greater acceptance of hierarchy and authority.
  • Individualism vs. Collectivism: Emphasizes whether individual or group goals are prioritized. High individualism cultures prioritize individual achievement, while high collectivism cultures emphasize group harmony and cooperation.
  • Masculinity vs. Femininity: Focuses on the degree to which a culture values assertiveness, competition, and material success (masculine) versus nurturing, cooperation, and quality of life (feminine).
  • Uncertainty Avoidance: Measures a culture's tolerance for ambiguity and risk. Cultures high in uncertainty avoidance tend to prefer structured situations and clear rules.
  • Long-Term vs. Short-Term Orientation: Refers to the extent to which a culture focuses on immediate gratification versus future rewards. High long-term orientation cultures prioritize the future and long-term planning, while high short-term orientation cultures prioritize immediate results and short-term gains.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

GMS200 Notes Lecture 3 & 4 PDF

Description

Explore essential concepts in international business such as globalization, ethical issues in multinational enterprises, and quality of work-life indicators. This quiz covers topics relevant to global sourcing, management functions, and systematic thinking. Test your knowledge and understanding of these critical business principles.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser