Question 1

The trade deficit leads to job losses for many American workers and also result in many low-wage service jobs.

Accepted Answer

When the US imports more goods and services than it exports, it leads to a trade deficit, which can cause job losses in industries that face import competition. This can include manufacturing jobs that are shifted to countries with lower labor costs, as well as jobs in industries that support manufacturing, such as transportation or logistics. In addition, a trade deficit can also result in the growth of low-wage service jobs, such as retail or hospitality, which may be used to fill the void left by higher-paying jobs lost due to trade competition.

Question 2

A multinational corporation (MNC) is basically a collection of subsidiaries that carry out decisions made at headquarters.

Accepted Answer

A multinational corporation (MNC) is more than just a collection of subsidiaries following orders from headquarters; it involves a complex structure where strategic decisions can be decentralized, allowing subsidiaries to adapt and respond to local market conditions and opportunities.

Question 3

Expatriates who function better than others are emotionally stable, extraverted (outgoing), and open to new experiences.

Accepted Answer

Research has shown that expatriates who are emotionally stable, extraverted, and open to new experiences tend to function better than others. These traits help them in adjusting to new cultures, building social networks, and dealing with challenges.

Question 4

The United States-Dominican Republic-Central American Free Trade Agreement (CAFTA) is a free-trade agreement between the United States and other countries in the Western Hemisphere.

Accepted Answer

The statement is true. The United States-Dominican Republic-Central American Free Trade Agreement (CAFTA) is a free-trade agreement between the United States and six other countries in the Western Hemisphere, including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. The agreement aims to eliminate tariffs and other barriers to trade in goods and services among the participating countries.

Question 5

As the U. S. dollar strengthens in comparison to other currencies, it becomes more expensive for other countries to purchase American goods and services.

Accepted Answer

When the U.S. dollar strengthens, its value increases relative to other currencies. This means that other countries now have to exchange more of their currency to get the same amount of U.S. dollars. As a result, it becomes more expensive for them to purchase American goods and services. Conversely, when the U.S. dollar weakens, it becomes cheaper for other countries to buy American products.

Question 6

A welcoming attitude toward other cultures is perhaps more important than overseas experience itself in becoming an effective global leader.

Accepted Answer

A welcoming attitude toward other cultures is essential in building positive relationships and effectively collaborating with individuals from diverse backgrounds. Overseas experience can be beneficial in developing cultural competence, but it is not the only factor in becoming an effective global leader. Without an open and accepting attitude toward other cultures, even those with extensive overseas experience may struggle to navigate cultural differences and build meaningful connections with individuals from different backgrounds.

Question 7

Multinational corporations based in the United States are often accused of profiting
from the labor of employees exploited in less-developed countries.

Accepted Answer

There have been numerous reports and allegations of multinational corporations based in the US profiting from the labor of employees who are exploited and paid low wages in less-developed countries.

Question 8

Diversity refers to

Accepted Answer

Diversity means having a range of different people with different backgrounds, experiences, and identities within the same work environment. It includes people of different genders, ethnicities, cultures, religions, ages, physical abilities, and more.

Question 9

Which one of the following is the least likely to be an advantage of cultural diversity to the organization?

Accepted Answer

Dealing with different perspectives may actually contribute to faster problem solving and innovative solutions. Therefore, not having to deal with different perspectives would not be an advantage of cultural diversity to the organization. Options A, B, and D are all likely advantages of cultural diversity to the organization.

Question 10

An advantage noted about globalization is that with research and development being done overseas products can be developed 24 hours per day, with workers from different time zones passing off work to each other.

Accepted Answer

Globalization allows for companies to have operations in multiple countries, meaning that work can be done around the clock with the help of workers in different time zones passing off tasks to one another. This can lead to increased productivity and faster development of new products.

Question 11

Critics of NAFTA point out that the agreement does not maintain labor or environmental standards

Accepted Answer

Critics of NAFTA argue that the agreement does not adequately address labor or environmental standards, leading to unfair competition, exploitation of workers, and environmental damage.

Question 12

A major force behind global outsourcing is the pressure discount retailers such as Wal-Mart exert on manufacturers to keep their prices low.

Accepted Answer

Discount retailers like Wal-Mart have a significant impact on the outsourcing decisions of manufacturers, as they demand lower prices that can only be achieved through outsourcing to countries with lower labor and production costs.

Question 13

An important function of the World Trade Organization is to settle trade disputes between two countries.

Accepted Answer

The World Trade Organization operates a dispute settlement system which allows for the resolution of trade disputes between member countries.

Question 14

A problem tied to global outsourcing is that American employers can offer low wages to domestic employees backed by the threat that their work could be sent offshore.

Accepted Answer

American employers often use the threat of outsourcing as a leverage to pay low wages to domestic employees. This is a problem associated with global outsourcing.

Question 15

English is the official language of business because

Accepted Answer

The Internet and information technology have made communication and business transactions easier and faster than ever before. English is the primary language used in these mediums, which has made it the most important language for international business. While diversity training and ethnocentrism may be factors in some companies, they do not fully explain why English has become the official language of business. Moreover, not everyone in the world speaks English, although many people may have some level of proficiency in it.

Question 16

Diversity training sessions

Accepted Answer

Diversity training sessions typically focus on the ways that individuals from different backgrounds can have different perspectives, values, and attitudes. This can include differences based on gender, race, ethnicity, culture, religion, and other factors. Option A focuses specifically on gender, while option B focuses on race, but both are examples of the types of diversity that may be addressed in diversity training sessions. Option C, in contrast, is not directly related to diversity training.

Question 17

The European Union is an alliance of Great Britain, France, and Italy to help penetrate new markets in North America and the Pacific Rim.

Accepted Answer

The description of the European Union is incorrect. The EU is a political and economic union of 27 member states mostly located in Europe, formed to promote economic cooperation and peace. Great Britain, France, and Italy are among the member states, but the purpose of the EU goes beyond penetrating new markets in North America and the Pacific Rim.

Question 18

In recent years, the United States has exported many more goods than it has imported.

Accepted Answer

In recent years, the United States has imported more goods than it has exported, resulting in a trade deficit.

Question 19

A key feature of a transnational corporation is that it operates worldwide with one national headquarters.

Accepted Answer

A transnational corporation operates worldwide but does not have one national headquarters; instead, it maintains significant operations, such as production facilities and regional headquarters, in multiple countries.

Question 20

With respect to diversity, an employee network group consists of

Accepted Answer

Employee network groups are created based on common demographic or cultural identities, such as race, gender, sexual orientation, or religion. The purpose of these groups is to provide a sense of community and support for employees who share similar experiences and perspectives related to their identity. These groups may also work to promote diversity and inclusion within the workplace. Choices A and C are incorrect because they are not related to employee network groups, and choice B is inaccurate because employee network groups are not intended to be used as a means of bringing complaints to management.

Quiz 2: International Management and Cultural Diversity