Deck 8: Business, Culture, and Globalization

Question 1

The following nationals would be aggressive at the beginning of business negotiations, but offer large concessions in the end

A)American.
B)Russian.
C)German.
D)Japanese.

Answer 1

Russian.

Question 2

Social mobility is measured by

A)The extent to which an individual can move the strata to which he/she belongs.
B)The promptness with which an individual accepts foreign assignments.
C)The extent to which inter- caste marriage is encouraged by the society.
D)The extent to which the society as a whole shifts its habitat.

Answer 2

The extent to which an individual can move the strata to which he/she belongs.

Question 3

Lower power distance countries are characterized by

A)relationships based on equality and informality.
B)authority being accepted without question.
C)managers being paternalistic.
D)tall organizations structure.

Answer 3

relationships based on equality and informality.

Question 4

A country with high uncertainty avoidance will witness

A)lower level of stress among people.
B)decision taken as a result of group consensus.
C)less dependence on rules and regulations.
D)people are serene.

Question 5

As per cultural dimensions of Hofstede, masculinity refers to

A)Male- female ratio in the country.
B)Society dominated by male members.
C)Society characterized by aggressive and materialistic behaviour.
D)War- ridden societies.

Question 6

According to economic growth model of Rostow, passage of a country through the stages is

A)in the order specified.
B)in any order.
C)in the order specified, but certain stages may be skip

Question 7

A country in the stage of traditional society is characterized by

A)existence of traditional rule.
B)non existence of industries.
C)predominance of agriculture.
D)complete absence of literacy.

Question 8

The stage indicating highest level of economic growth is

A)age of mass consumption.
B)age of mass production.
C)maturity.
D)drive to maturity.

Question 9

For a country with relatively lower level of cost of living PPP per capita GNI will be

A)lower than per capita GNI.
B)higher than per capita GNI.
C)same as per capita GNI.
D)may be lower or higher than per capita GNI.

Question 10

In a business cycle, the phase preceding prosperity is

A)recession.
B)depression.
C)recovery.
D)recession or depression.

Question 11

Monetary policy relates to controlling

A)money supply.
B)money supply and interest rate.
C)money supply, interest rate and exchange rate.
D)credit creation by banks.

Question 12

Analysing the business environment best assists in

A)Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.
B)Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
C)Auditing external and organisational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
D)Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position.

Question 13

In relation to the PESTEL framework, which of the following statements is correct?

A)It assists in the assessment of organisational strengths and weaknesses.
B)It allows a detailed analysis of the structure of an industry.
C)It can be used as a checklist to understand the different environmental influences in the macro environment.
D)Takes an historical perspective on the main political, economic, sociocultural,

Question 14

Scenarios are used to

A)Develop a long term view of strategy.
B)Build plausible views of different possible futures and develop a long term view of strategy.
C)Identify key drivers of change.
D)Develop a view of an environment which has a high degree of uncertainty, build plausible views of different possible futures and take a long term view of strategy.

Question 15

Porter suggests the following reasons for one nation being more competitive than another

A)Ability to speak English; developed network of supporting industries; absence of competition; and low labour cost.
B)Abundant natural resources; skilled labour force; temperate climate; and democracy.
C)Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry.
D)Strong sporting ethos; emphasis on individual achievement; strong national party in power; large home market.

Question 16

The five forces that affect the level of competition in an industry are

A)Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.
B)Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.
C)Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry.
D)Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action.

Question 17

In international business cheaper alternatives to litigation is/ are

A)Conciliation.
B)Arbitration.
C)Negotiations.
D)Conciliation and arbitration.

Question 18

A contract drafted under civil law differs from that drafted under common law in the following respect

A)It will be detailed.
B)It will be shorter and less specific.
C)It will provide less severe damages.
D)It will be in detail.

Question 19

Ownership of intellectual property is recognized in law by granting

A)Licenses.
B)Patents.
C)Copyrights.
D)Patent, copyright or trademark as appropriate.