5.Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following?

Select one:

a. rely on stereotypes, which are based on averages, to gain an understanding of the culture

b. avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors

c. memorize the cultural variations that are typically encountered in a specific cultural environment

d. observe the behavior of people who have gained respect within that cultural environment

6.Critics of globalization say that global consumer-goods companies destroy ________.

Select one:

a. the homogenization of markets

b. societal conformity

c. free trade areas

d. cultural diversity

7.Developed nations have the toughest product liability laws, while developed countries have more relaxed laws.

Select one:

a. True

b. False 8.Factor Proportions Theory can be defined as countries produce and export goods that require resources (factors) that are abundant and import goods that require resources in short supply.

Select one:

a. True

b. False

9.In Oman, the value-added tax will be levied in April 2021 on each party that adds value to a product throughout its production and distribution.

Select one:

a. True

b. False

10.Oman wants to encourage trade by eliminating trade barriers with the three countries along its borders. However, Oman wants each of the countries to be able to establish their own trade policies even though this may lead to problems with trade deflection. Which form of economic integration is Oman most likely considering?

Select one:

a. economic union

b. common market

c. customs union

d. free trade area

11.Tax breaks on profits earned abroad, and political pressures are used by ________.

Select one:

a. Host countries to promote FDI

b. Host countries to restrict FDI

c. Home countries to promote FDI

d. Home countries to restrict FDI

12.The global business environment consists of four distinct elements: the forces of globalization, national business environments, the international business environment, and ________.

Select one:

a. domestic investment opportunities

b. technological innovation

c. international firm management

d. multinational corporations

13.The primary purpose of the Gulf Cooperation Council (GCC) at its formation was to create a political union between Iraq and Iran.

Select one:

a. True

b. False

17.Which type of investment involves the acquisition of foreign assets for the purpose of controlling them?

Select one:

a. Foreign direct investment

b. Capital investment

c. Foreign portfolio investment

d. Controlling ownership

14.The term ________ refers to the voluntary exchange of goods, services, assets, or money between one person or organization and another across national borders.

Select one:

a. sales

b. transaction

c. international trade

d. strategic management

15.The theory of absolute advantage destroys the mercantilist idea that international trade is a zero-sum game.

Select one:

a. True

b. False

16.Which of the following actions can be adopted by developed nations to lessen the negative effects of globalization?

Select one:

a. restrict the import of goods from developing countries

b. slash agricultural subsidies that hurt the exports of developing nations

c. discontinue foreign-aid programs to developing countries

d. pressurize developing nations to fend for themselves in matters of health and education