21. Which of the following is a sociocultural factor in the international environment?

21. Which of the following is a sociocultural factor in the international environment?

a.	Language
b.	Exchange rates
c.	Tariffs, taxes, and quotas
d.	Per capita income
e.	Infrastructure

ANS:

22. ____ is normally used to classify countries as developed or developing.

a.	Exchange rates
b.	Interest rates
c.	Gross national product
d.	Per capita income
e.	Inflation rates

ANS:

23. ____ generally are located in Asia, Africa and South America.

a.	MNCs
b.	EUs
c.	LDCs
d.	WTOs
e.	MFNs

ANS:

24. A country’s physical facilities that support economic activities make up its ____.

a.	resource markets
b.	infrastructure
c.	physical markets
d.	product markets
e.	plants and equipment

ANS:

25. If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers because of the road system, your problem would be related to

a.	an inadequate infrastructure.
b.	an economy incapable of supporting growth.
c.	a poor resource market.
d.	a poor product market.
e.	none of these.

ANS:

26. Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India’s

a.	product market.
b.	resource market.
c.	infrastructure.
d.	economy.
e.	power distance.

ANS:

27. Exchange rates are included in which of the following international environments?

a.	The legal-political sector
b.	The economic environment
c.	The sociocultural environment
d.	The barter system environment
e.	The government sector

ANS: :

28. The legal-political environment, in international operations, includes which of the following?

a.	Shared knowledge, beliefs and values
b.	Political risks
c.	Social organizations
d.	Infrastructure
e.	None of these

ANS:

29. Political risk is defined as an organization’s risk of ____ due to politically based events or actions by host governments.

a.	loss of assets
b.	managerial control
c.	earning power
d.	all of these
e.	managerial control and earning power only

ANS:

30. A company’s risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as

a.	MFN.
b.	political risk.
c.	tariffs.
d.	political instability.
e.	terrorism.

ANS:

31. Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an example of which sector of the international environment?

a.	Legal-political
b.	Sociocultural
c.	Technological
d.	Economic
e.	Infrastructure

ANS:

32. Which of the following is NOT a legal-political factor in the international environment?

a.	Laws and regulations
b.	Language
c.	Tariffs, quotas, taxes
d.	Political risk
e.	Government takeovers

ANS:

33. A foreign terrorist kidnaps your firm’s marketing VP while the VP is in the host country. This is a harsh example of

a.	economic development.
b.	infrastructure.
c.	political risk.
d.	international law.
e.	social risk.

ANS:

34. A nation’s ____ includes the shared knowledge, beliefs and values, as well as the common modes of behavior and ways of thinking, among members of a society.

a.	power distance
b.	culture
c.	masculinity
d.	individualism
e.	uncertainty avoidance

ANS:

35. Cultural factors in foreign countries are ____ the political and economic factors.

a.	easier than
b.	similar to
c.	more perplexing than
d.	less important than
e.	none of these

ANS:

36. ____ refers to the degree to which people accept inequality in power among institutions, organizations, and people.

a.	Power distance
b.	Uncertainty avoidance
c.	Individualism
d.	Collectivism
e.	Masculinity

ANS: :

37. Countries whose social values reflect low power distance

a.	are highly democratic.
b.	accept inequality in power among institutions, organizations, and people.
c.	expect equality in power.
d.	avoid uncertainty.
e.	none of these.

ANS:

38. A loosely knit social framework in which individuals are expected to take care of themselves is called

a.	culture.
b.	individualism.
c.	ethnocentrism.
d.	masculinity.
e.	power distance.

ANS:

39. Collectivist values are represented in the social framework of which of these?

a.	The United States
b.	Australia
c.	Ecuador
d.	Great Britain
e.	All of these

ANS: :

40. Austria’s cultural preference is for achievement, heroism, assertiveness, and material success. This would be considered

a.	power distance.
b.	individualism.
c.	masculinity.
d.	ethnocentrism.
e.	collectivism