Question 1

Ben Franklin's adage "Time is money" is now an accepted principle _____.
A) in the United States
B) in Englishspeaking countries
C) in the Western world
D) around the world

Accepted Answer

The answer of Ben Franklin's adage "Time is money" is...

Question 2

According to the independent German organization, Transparency International, Canada boasts the world's lowest level of business corruption.

Accepted Answer

The answer of According to the independent German organization, Transparency...

Question 3

If a foreign currency _____ relative to the U.S. dollar, Americans must pay more for goods and services bought from sellers in the country that issues the currency.
A) goes up
B) goes down
C) varies
D) is unstable

Accepted Answer

If a foreign currency goes up relative to the U.S. dollar, the exchange rate will increase, meaning that Americans would have to pay more in U.S. dollars to purchase goods and services from the country that issues the currency.

Question 4

In many countries, American firms may be at a disadvantage in competing with local companies because only the educated classes speak English.

Accepted Answer

If only the educated classes speak English, then American firms may struggle to connect with the wider local population and may not be able to effectively communicate their products or services to potential customers. This can put them at a disadvantage compared to local companies that are more fluent in the language and better equipped to navigate the cultural nuances of the market.

Question 5

In high-context cultures, business-people don't need to know much about the personal life of a person in order to deal with him or her in a business setting.

Accepted Answer

In high-context cultures, personal relationships and connections are important in business dealings. Knowing about a person's background and family can help establish trust and build rapport, which can ultimately lead to successful business relationships.

Question 6

Although different countries have different communication styles, virtually all cultures share a basic core of expression values.

Accepted Answer

The answer of Although different countries have different communication styles,...

Question 7

A reliable banking system, a strong stock market, and a government that discourages corruption while encouraging investment and competition are all conducive to economic growth.

Accepted Answer

These factors are generally recognized as important components of a healthy and growing economy. A reliable banking system provides access to credit and facilitates transactions, a strong stock market encourages investment and capital formation, and a government that discourages corruption and promotes competition creates a level playing field for businesses to operate and grow.

Question 8

If the U.S. dollar goes down relative to a foreign currency, foreign buyers pay more for American goods and services.

Accepted Answer

When the U.S. dollar weakens relative to a foreign currency, it means that the foreign currency can buy more dollars than before. This makes American goods and services cheaper for foreign buyers, not more expensive.

Question 9

The Foreign Corrupt Practices Act, which prohibits the distribution of bribes, can put American businesspeople at a competitive disadvantage.

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) can put American businesspeople at a competitive disadvantage as they are prohibited from participating in the bribery and corruption that may be commonplace in some foreign markets. This can make it difficult to secure business deals and contracts in those regions.

Question 10

When Whitlock Clothiers began overseas operations, top management had to learn to appreciate the _____ environments of other countries-that is, other people's systems of shared beliefs, values, customs, and behaviors.
A) social
B) political
C) legal
D) cultural

Accepted Answer

The sentence specifically mentions "shared beliefs, values, customs, and behaviors" of other countries, indicating a need to understand their culture. Therefore, option D (cultural) is the most appropriate choice.

Question 11

In many countries, American firms may be at a disadvantage in communicating with the general public because only ____ speak English.
A) military personnel
B) the wealthy
C) the educated classes
D) other businesspeople

Accepted Answer

The educated classes are more likely to speak English in many countries, hence American firms may face a disadvantage in communicating with the general public who speak other languages. Military personnel and other businesspeople may also be proficient in English, but not as commonly as the educated classes. The wealthy may or may not speak English based on their access to education.

Question 12

When researching global business opportunities, firms must grasp the cultural, legal. economic, and _____ differences between the home country and the host country.
A) linguistic
B) political
C) religious
D) hygienic

Accepted Answer

Understanding the political differences between the home country and host country is crucial for firms when researching global business opportunities. Political differences may include laws and regulations related to business operations, trade policies, and government stability. Cultural, linguistic, religious, and hygienic differences may also be important factors to consider, but they are not as directly related to the success of a business venture as political differences.

Question 13

If a foreign currency _____ relative to the U.S. dollar, Americans will pay less for goods and services bought from sellers in the country that issues the currency.
A) goes up
B) goes down
C) varies
D) is unstable

Accepted Answer

If a foreign currency goes down relative to the U.S. dollar, it means that the U.S. dollar is stronger and can buy more of the foreign currency, which in turn makes goods and services bought from that country cheaper for Americans.

Question 14

In communicating with other countries or cultures, it's valuable to understand all of the following except _____.
A) the fact that different cultures have different communication styles
B) certain subtle differences between cultures
C) that cultural stereotypes shouldn't dictate interactions
D) English, which is the prevalent language of business

Accepted Answer

While knowing English may be helpful in international communication, it is not essential to understand cultural differences and communicate effectively with other countries or cultures.

Question 15

Companies doing international business often face a smorgasbord of inconsistent laws and regulations.

Accepted Answer

This statement is true. When doing business across international borders, companies may encounter different laws and regulations in each country, which can vary widely in their scope and requirements. This can create challenges for companies trying to navigate the global business landscape.

Question 16

In a _____ culture, the numerous interlocking personal and family connections that hold people together have an effect on almost all interactions.
A) low-context
B) high-context
C) contextually saturated
D) homogeneous

Accepted Answer

The term "high-context" refers to cultures where much of the meaning in communication lies in the context of the situation and the relationships between the people involved. In such cultures, personal and family connections hold great importance and have an impact on almost all interactions.

Question 17

All of the following are conducive to economic growth except _____.
A) a reliable banking system
B) an unfavorable balance of trade and payments
C) a strong stock market and a government that discourages corruption
D) government policies that encourage investment and competition

Accepted Answer

A favorable balance of trade and payments is conducive to economic growth as it promotes exports and helps generate foreign exchange. An unfavorable balance of trade and payments, on the other hand, can lead to a drain of foreign exchange, inflation, and economic instability. Therefore, option B, which suggests an unfavorable balance of trade and payments, is not conducive to economic growth.

Question 18

According to some experts, American businesspeople are at a competitive disadvantage when they're prohibited from giving bribes or undercover payments to foreign officials or businesspeople.

Accepted Answer

Some experts argue that American businesspeople are at a competitive disadvantage in regions where bribes and undercover payments are a common practice for securing business deals, as U.S. laws, such as the Foreign Corrupt Practices Act (FCPA), prohibit such activities.

Question 19

What's the international language of business
A) Spanish
B) English
C) Japanese
D) Chinese

Accepted Answer

English is considered the international language of business as it is the most widely used language in international trade, finance, and diplomacy. It is also the official language of many organizations such as the United Nations and the International Olympic Committee. While Spanish, Japanese, and Chinese are important languages in certain regions, they are not used as extensively in global business transactions.

Question 20

The _____ prohibit(s) the distribution of bribes and other favors among American businesspeople conducting business with foreign officials and businesspeople.
A) Foreign Corrupt Practices Act
B) Anti-Bribery Act
C) Ten Commandments
D) SarbanesOxley principles

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) is a federal law in the United States that prohibits American businesses from giving bribes or other favors to foreign officials and businesspeople in order to obtain or maintain business relationships. The law was enacted in 1977 to promote transparency and accountability in global business practices.

Quiz 3: Business in a Global Environment

Ben Franklin's adage "Time is money" is now an accepted principle _____.

According to the independent German organization, Transparency International, Canada boasts the world's lowest level of business corruption.

If a foreign currency _____ relative to the U.S. dollar, Americans must pay more for goods and services bought from sellers in the country that issues the currency.

In many countries, American firms may be at a disadvantage in competing with local companies because only the educated classes speak English.

In high-context cultures, business-people don't need to know much about the personal life of a person in order to deal with him or her in a business setting.

Although different countries have different communication styles, virtually all cultures share a basic core of expression values.

A reliable banking system, a strong stock market, and a government that discourages corruption while encouraging investment and competition are all conducive to economic growth.

If the U.S. dollar goes down relative to a foreign currency, foreign buyers pay more for American goods and services.

The Foreign Corrupt Practices Act, which prohibits the distribution of bribes, can put American businesspeople at a competitive disadvantage.

When Whitlock Clothiers began overseas operations, top management had to learn to appreciate the _____ environments of other countries-that is, other people's systems of shared beliefs, values, customs, and behaviors.

In many countries, American firms may be at a disadvantage in communicating with the general public because only ____ speak English.

When researching global business opportunities, firms must grasp the cultural, legal. economic, and _____ differences between the home country and the host country.

If a foreign currency _____ relative to the U.S. dollar, Americans will pay less for goods and services bought from sellers in the country that issues the currency.

In communicating with other countries or cultures, it's valuable to understand all of the following except _____.

Companies doing international business often face a smorgasbord of inconsistent laws and regulations.

In a _____ culture, the numerous interlocking personal and family connections that hold people together have an effect on almost all interactions.

All of the following are conducive to economic growth except _____.

According to some experts, American businesspeople are at a competitive disadvantage when they're prohibited from giving bribes or undercover payments to foreign officials or businesspeople.

What's the international language of business

The _____ prohibit(s) the distribution of bribes and other favors among American businesspeople conducting business with foreign officials and businesspeople.