International business Test 2 Review 1

All of the following a part of democracy EXCEPT:

Which of the following is a problem with democracy?

All of the following are characteristics of a totalitarian regime EXCEPT:

Risk of drastic changes in a country’s business environment which is caused by political instability.

Risk of non-payment by a government

This type of risk causes a dramatic and abrupt change in business environments, which will influence all foreign operations in the host countries such as nationalization of all foreign operation in the country.

This type of risk causes less dramatic but more prevalent changes in business environment which will influence only some specific firms or specific industries

Which is a form of political risk?

This approach to assess political risk identifies all the political and financial factors that contribute to a firm's assessment of country risk

Requires the evaluator to collect independent opinions of the group of people called 'specialists' on country risk without discussion among themselves

Developing a statistical model and identifying the major factors that seemingly influence the level of country risk

Requires extensive traveling to a country and numerous meetings with government officials, firm executives, and/or consumers in an attempt to collect more relevant and confidential information about the target country

Which of the following is NOT a forecasting service for political risk?

Approaches to reducing exposure to political risk

This approach requires shortening the payback period and recovering invested capital as soon as possible delaying any additional major repair, replacement, or investment in order to minimize the damage in case of confiscation or nationalization of your properties.

If an MNC can bring in much superior or unique technology to its subsidiary that cannot be duplicated locally or internationally, it would not be easy for the host government to take over and operate the operating unit without such techniques

If MNCs hire a great number of local employees for their subsidiary, they could put the pressure on their government to avoid any government takeover.

If the subsidiary borrows a loan from local banks to finance the project or build the facilities in the host country, when the host country tries to take over your properties there, you can minimize the damage.

Helps cover political risk for MNCs when you purchase this

The degree of political instability, which will eventually influence the level of political risk, will be decided by the amount of frustration that people have in the society.

These type of countries will suffer the most political instability according to the inverted U-curve theory

The amount of goods and services that a country produces is solely determined by the interaction of supply and demand in the market

The amount of goods and services that a country produces and distributes are decided by the government

Citizens are allowed to have their private properties and assets

All the assets and properties and production means belong to the government and individual citizens are not allowed to have private assets or properties

Contains insufficient production, public ownership, and command economy

Contains inequitable distribution, Private ownership, and market economy

Maintains socialistic structure, but has added capitalistic elements to increase production and efficiency

Maintains democratic structure but to introduce some socialistic elements to achieve distributive justice

Why study culture?

The visible part above the surf, the part you see easily

The invisible part below the surf, the part you can't easily see such as attitudes, perceptions, or assumptions

Which of the following is a definition of culture?

Any kind of pictures, objects, gestures, or words which carry a particular meaning only recognized by the members of one culture.

Role models that posses characteristics that are highly prized in a culture

Conventionalized behavior patterns that occur in particular situations

The core of culture, taught in early childhood and most important for one's decision what is right or wrong

Master over nature...earth belongs to us like our personal property. Natural disaster is a scientific phenomenon

Less materialistic; too much material ruins the soul, material pursuit is selfish and immature

Reluctant to change, against ancestor's will, change is work of evil

Action oriented, any action better than inaction, dynamic, trial and error; improvement

Collective "Us" centered sharing and conformity

Pragmatic and practical

Optimistic, life is full of joy

Horizontal, egalitarian, equally born (Relationship with others)

Formal or official way to communicated

Proposes that language not only serves as a mechanism to transmit the perception that people have, but also the language itself influences people's perceptual process

Which of the following is NOT part of the communication process?

In cross cultural communication, one of the most typical problems is the fact that the message sender's language is not compatible to that of the message receiver

Even if we use the same language, the same word can be interpreted in different ways

If the message sender and receiver do not share the same experiences in their lives, it is very difficult to have an effective communication.

Causes a lot of noises in the cross cultural communication, IE Americans speak in a linear pattern, but other cultures do not necessarily.

The ups and downs of speech and how they can be a noise

T/F: Different cultures may have different sources of metaphors and preferred topics can differ between cultures.

All stimuli, humanly or environmentally generated, except verbal ones that have potential message value for the sender/and or receiver

Another big element in culture is people's attitudes about certain things. Some noticeable differences associated with attitude are:

Which of the following is a function of nonverbal communication?