Question 1

Corruption involves engaging in illegal practices to further one's business interests.

Accepted Answer

Corruption refers to the unethical and illegal use of power or authority to gain personal or professional benefits, which may involve offering or receiving bribes, kickbacks, or other forms of illegal gratification.

Question 2

Sustainable development places greater importance on the needs of the present generation than on the needs of future generations.

Accepted Answer

Sustainable development places equal importance on meeting the needs of the present without compromising the ability of future generations to meet their own needs. It aims to balance economic, social, and environmental considerations in a way that supports long-term well-being for both present and future generations.

Question 3

Multinational corporations are often criticized at home for: diverting labour-intensive jobs from the domestic labour force to foreign labour markets,diverting capital investments away from the domestic market,and encouraging corrupt practices in their foreign subsidiaries.

Accepted Answer

Multinational corporations are often criticized for these reasons and more by concerned citizens and activists.

Question 4

Transnational corporations seek integration of their operations,operating across borders without home-based prejudices and making major decisions from a global perspective.

Accepted Answer

Transnational corporations aim to be global in their operations, without being constrained by traditional home-based thinking or biases. They strive for a seamless integration of their operations across borders, making decisions based on a global perspective rather than a narrow national one.

Question 5

Self-awareness and reasonable sensitivity are the basic building blocks of cultural intelligence.

Accepted Answer

Self-awareness and reasonable sensitivity are the fundamental components of cultural intelligence, which involves understanding and working effectively with people from different cultural backgrounds. Without an understanding of one's own cultural beliefs and biases, it is difficult to engage with others in a sensitive and effective way. Therefore, self-awareness and reasonable sensitivity are essential building blocks of cultural intelligence.

Question 6

When large multinationals gain disproportionately from the forces of globalization,while smaller firms and countries do not,there occurs what is referred to as a "globalization gap."

Accepted Answer

This is the definition of a globalization gap.

Question 7

Culture shock is the tendency to view one's culture as superior to other cultures.

Accepted Answer

Culture shock refers to the feelings of confusion and uncertainty that can occur when a person is suddenly exposed to a new, unfamiliar culture, way of life, or set of attitudes. It does not specifically involve viewing one's own culture as superior.

Question 8

Culture shock is the confusion and discomfort that a person goes through in adjusting to a new culture.

Accepted Answer

Culture shock is a real phenomenon that occurs when a person is exposed to a new culture and experiences feelings of disorientation, confusion, and anxiety. It can include feelings of homesickness, frustration, and confusion as the person tries to adjust to the new culture's customs, language, and social norms.

Question 9

Citizens of many nations are putting increased pressure on global corporations to protect the natural environment,pursue safe industrial practices,and pursue sustainable development.

Accepted Answer

This statement is true. Many citizens are becoming more aware of the impact that global corporations can have on the environment and are calling for more responsible and sustainable practices. This is evident in the rise of socially responsible investing and corporate social responsibility reporting.

Question 10

In the United States,the Foreign Corrupt Practices Act makes it illegal for U.S.firms to engage in U.S.corrupt practices overseas.

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) indeed makes it illegal for U.S. firms (including individuals and entities) and foreign firms issuing securities on U.S. stock exchanges to engage in bribery or corrupt practices overseas.

Question 11

People who have a high degree of cultural intelligence are likely to be more successful as international managers.

Accepted Answer

Cultural intelligence refers to the ability to adapt to and effectively interact with people from diverse cultural backgrounds. This ability is essential for international managers who operate in cross-cultural environments. Successful international managers understand the values, beliefs, and customs of the cultures they work with, and they are able to communicate and collaborate effectively with people from those cultures. Therefore, people with high cultural intelligence are more likely to be successful as international managers.

Question 12

Sweatshops employ workers at very low wages and often in poor working conditions.

Accepted Answer

Sweatshops are known to employ workers at extremely low wages, sometimes below minimum wage or even below a livable wage. In addition, working conditions can be poor, with long hours, no breaks, and unsafe working environments. This is a major issue in many industries, particularly in the garment and electronics industries in developing countries.

Question 13

The use of child labour has been effectively eliminated as an ethical issue that faces managers of MNCs.

Accepted Answer

Child labour is still an ethical issue that faces managers of MNCs, particularly in developing countries where there may be less stringent laws and regulations around employment practices. While many MNCs have taken steps to eliminate or reduce their use of child labour in their supply chains, it is still a concern that needs to be addressed.

Question 14

Host-country complaints about multinational corporations MNCs)include foreign exchange restrictions,pressure to buy raw materials at inflated prices,failure to protect intellectual property,and failure to uphold contracts.

Accepted Answer

These are common complaints that host countries have lodged against MNCs.

Question 15

Technology transfer,capital development,increased employment opportunities,and the development of local resources benefits that host countries can obtain from relationships with multinational corporations.

Accepted Answer

Technology transfer, capital development, increased employment opportunities, and the development of local resources are all potential benefits that host countries can gain from relationships with multinational corporations.

Question 16

The Foreign Corrupt Practices Act fails to recognize the reality of business practices and values of other nations.

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) was enacted by the US Congress in 1977 in response to corporate bribery scandals. The act prohibits US companies and individuals from paying bribes to foreign officials to obtain or retain business. However, critics argue that the act fails to recognize the cultural and business differences that exist in other nations. In some countries, gift-giving and personal relationships are an integral part of business culture, and not viewed as bribery. The FCPA also places a burden on US companies to ensure that their foreign subsidiaries comply with the act's provisions, even in countries where bribery may be commonplace.

Question 17

High-context cultures are those in which most communication takes place via the spoken or written word.Low-context cultures are those in much communication takes place through nonverbal and situational cues in addition to the written or spoken word.

Accepted Answer

High-context cultures rely heavily on nonverbal and situational cues, while low-context cultures rely more on direct communication through written or spoken language.

Question 18

The silent language of culture refers to the common practices and beliefs that are similar across different cultures.

Accepted Answer

The silent language of culture refers to the nonverbal communication, gestures, and body language that are specific to a particular culture and may not be universally understood. It does not necessarily refer to common practices and beliefs that are similar across different cultures.

Question 19

Ethnocentrism is the confusion or discomfort that someone may experience when in an unfamiliar culture.

Accepted Answer

Ethnocentrism is actually the belief in the superiority of one's own culture and the tendency to view other cultures through the lens of one's own. It can lead to a lack of understanding and appreciation for other cultures, but it is not necessarily related to confusion or discomfort when encountering a new culture.

Question 20

Culture is the shared set of beliefs,values,and patterns of behaviour common to a group of people.

Accepted Answer

Culture is defined as the shared set of beliefs, values, and patterns of behavior that are common to a particular group of people.

Quiz 3: Global Dimensions of Management