TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

ABDM1183 INTRODUCTION TO BUSINESS

WEEK 4

TUTORIAL 3

TOPIC 2 INTERNATIONAL BUSINESS

Section A: Multiple-choice questions

1What is the shift toward a more integrated and interdependent world economy called?
A international trade
B foreign direct investment
C globalization
D Moore's Law
E containerization

2. A country’s __________ system is a part of the political economy.

A religious
B value
C demographic
D legal
E technological

3. A political system that promotes activity “for the good of society” is based on_____.
A democratic principles.
B individualism.
C public action.
D collectivism.
E private action.

4.Karl Marx promoted the idea of a(n) __________ society in which the state owned the means
of production, distribution, and exchange.
A socialist
B capitalist
C individualist
D monarchist
E feudalist
5.A government of a European nation believes that its citizens should have complete freedom in
their economic and political pursuits, and the ideology is "private profit over public good." It can
be said that this nation follows the philosophy of _____.
A totalitarianism.
B socialism.
Ci ndividualism.
D communism.
E.Marxism.

6. A nation based on individualism would agree that______.

A communal property is more highly productive than private property.
B public good should be preferred over private profit.
C state-owned companies should monopolize certain industries.
D the welfare of society is best served by some collective body such as government.
E self-expression must be guaranteed.

7. Which form of government involves one person or political party that exercises absolute
control over all spheres of human life and prohibits opposing political parties?
A. capitalism
B Totalitarianism
C pure democracy
D republicanism
E representative democracy

8. What is one characteristic of a representative democracy?

Aall enterprises are state-owned
Ba single-house legislature
C a lack of intellectual property laws
D a court system that is linked to the political system
E citizens periodically elect individuals to act on their behalf

9. What is an accurate depiction of the current state of communism?

A It is typically found in states that govern according to religious principles.
B It operates at the same level it did in the 1950s.
C Communism is in decline worldwide.
D Communism today generally permits some individual economic freedom but restricts political
freedom.
E It is growing at an alarming rate.
10. What are the three broad forms of economic systems?
Alaissez-faire, authoritarian, egalitarian
Bmarket, command, and mixed
Clocal, state, federal
Dethical, political, radical
Eindividualist, collectivist, majoritarian

11. An economic system in which the interaction of supply and demand determines the quantity
in which goods and services are produced is called a __________ system.
A barter
B command
C market
D regulated
E centrally planned

12 Countries in which the government plans the production of goods and services and also the
prices of these items operate in a(n) __________ economy.
Amixed
B market
C egalitarian
D command
E majoritarian

13 In a __________ economy, certain sectors of the economy are left to private ownership and
free market mechanisms, while other sectors have significant state ownership and government
planning.
A command
B pure market
C mixed
D centrally planned
E laissez-faire

14 The __________ system of a country encompasses the process through which redress for
grievances is obtained.
A economic
B theocratic
C legal
D demographic
E political
15. A __________ law system relies on a detailed set of laws organized into codes to interpret
the law.
A civil
B theocratic
C common
D traditional
E religious

16. In order to purchase the parts from its supplier, Fromer Manufacturing had to agree with all of
the terms set forth in the document the supplier provided which detailed the rights and obligations,
of the supplier and Fromer Manufacturing’s rights and obligations. This document is a type of ___.

A invoice

B bill of sale

C contract

D white paper

E precedent

17. Jenner works for a mountain bike manufacturing company. His company is being sued by
hundreds of customers who have been injured when the front wheel of the Columbia 4X model
becomes loose and makes the bike difficult to control. The customers are demanding monetary
damages. This lawsuit is based on ______.
A facilitating payments.
B intellectual property rights.
C criminal law.
D product liability.
E patent violations.

18.A group of people who share a common set of values and norms is called a(n)
Aalliance.
Bteam.
Ccohort.
Dsociety.
Efolkway.

19. Janine values individual freedom, democracy, and loyalty, and she believes all Americans do
the same. This belief is an expression of Janine’s
A,values.
B ethics.
C folkways.
Dnorms.
Ecohorts.
individual freedom, democracy, truth, justice, honesty, loyalty, social obligations, collective
responsibility, women, love, sex, marriage, and so on.
20.A major distinction between a conventional bank and an Islamic bank is that Islamic banks
A are allowed to charge higher interest rates on loans.
B cannot accept private deposit.
C cannot pay or charge interest.
D are not subject to any form of law.
E are supposed to refrain from making a profit through any source.

21. Zhang is a representative for a Chinese company that is based in Confucian culture. When
Zhang mentions to his staff that guanxi should be taken into consideration, what is he referring
to?
A the ability to produce the best product at the lowest cost
B relationships or connections the business has
C government tariffs that could affect business
D building a company from the ground up
E working with foreign nationals who have opposing views

22. What is the most widely spoken language in the world, and is increasingly becoming the
language of international business?
A Mandarin
B French
C English
D Spanish
E German

22. Kristina felt very uncomfortable while talking to the store manager because he moved so
close to Kristina that his face was just inches away. What aspect of the situation was bothering
Kristina?
A verbal cues
B punctuation
C speech tone
D unspoken language
E voice modulation

23. Hofstede added a fifth dimension to his study on how culture relates to values in the
workplace known as long-term versus short-term orientation, which was inspired by
A Hinduism.
B capitalism.
C Confucianism.
D Christianity.
E communism.
24. In Maria’s company, senior officers eat in the same cafeteria as the entry-level workers. On a
trip to an office of the company in Brazil, she was surprised to find that the company had different
cafeterias for managers and workers as well as different parking lots. The difference that Maria
perceived can be attributed to which of Hofstede's dimensions?
A uncertainty avoidance
B individualism
C power distance
D collectivism
E masculinity

25. job security and retirement benefits are extremely important to an entry-level employee.
Hofstede would say this employee exhibits high
A collectivism.
B masculinity.
C uncertainty avoidance.
D power distance.
E class consciousness.

26. When traveling to another country on business, Jacob was shocked to meet a male nurse. In
his hometown, nurses were always female. Jacob’s home country culture displays a high degree
of which of Hofstede's cultural dimensions?
A collectivism
B masculinity
C low uncertainty avoidance
D high power distance
E class consciousness

27. What would be a traditional value in a masculine culture?

A empathy
B achievement
C indistinguishable sex roles
D muted power
E reciprocity

Essay questions

1What is globalization? Explain, with examples, how global companies can facilitate the creation of a
global market.
2.Describe the Foreign Corrupt Practices Act.

3.Compare and contrast the principles of Hinduism and Buddhism.

4Briefly describe the five cultural dimensions in Hofstede's model.