DOWNLOAD THE Test Bank for International
Management Culture Strategy and Behavior 10th
Edition Luthans
Chapter 02
The Political, Legal, and Technological Environment
True/False Questions
1. Individualism views the needs and goals of society at large as more important than individual
desires.
Answer: False
Feedback: Individualism believes that people should be free to pursue economic and political
endeavors without constraint. Collectivism, on the other hand, views the needs and goals of
society at large as more important than individual desires.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
2. Fascism is an extreme form of socialism that was realized through violent revolution and was
committed to the idea of a worldwide communist state.
Answer: False
Feedback: Fascism is an authoritarian political ideology that considers individual and other
societal interests inferior to the needs of the state and seeks to forge a type of national unity,
usually based on ethnic, religious, cultural, or racial attributes. Communism, however, is an
extreme form of socialism that was realized through violent revolution and was committed to the
idea of a worldwide communist state.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
3. Communism is an authoritarian political ideology that considers individual and other societal
interests inferior to the needs of the state.
Answer: False
,DOWNLOAD THE Test Bank for International Management Culture Strategy
and Behavior 10th Edition Luthans
Chapter 02 - The Political, Legal, and Technological Environment
Feedback: Communism is an extreme form of socialism that was realized through violent
revolution and was committed to the idea of a worldwide communist state. Fascism, on the other
hand, is an authoritarian political ideology (generally tied to a mass movement) that considers
individual and other societal interests inferior to the needs of the state and seeks to forge a type
of national unity, usually based on ethnic, religious, cultural, or racial attributes.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
4. Nationalization is an ideal in and of itself whereby an individual is completely loyal to his or
her nation.
Answer: False
Feedback: The nationalization of businesses is the transference of ownership of a business from
individuals or groups of individuals to the government. Nationalism, on the other hand, is an
ideal in and of itself whereby an individual is completely loyal to his or her nation.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
5. Essentially, every citizen should be involved in decision-making processes in a democratic
system. Answer: True
Feedback: Essentially, every citizen should be involved in decision-making processes in a
democratic system. The representative government ensures individual freedom since anyone who
is eligible may have a voice in the choices made.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
6. The most common form of totalitarian government is communist totalitarianism.
Answer: True
Feedback: The most common form of totalitarian government is communist totalitarianism.
There are many forms of totalitarian government because only one party within each entity
exists.
AACSB: Analytic
Bloom's: Remember
2-44
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written consent of McGraw-Hill Education.
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,Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
7. Both domestic and international political environments have a major impact on multinational
corporations. Answer: True
Feedback: Both domestic and international political environments have a major impact on
multinational corporations.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
8. Collectivism emerged in Poland and France as "national socialism."
Answer: False
Feedback: Collectivism emerged in Germany and Italy as "national socialism," or fascism.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
9. Socialism is a broad political movement, and in modern times, it branched off into two
extremes: communism and social democracy.
Answer: True
Feedback: Socialism is a broad political movement and forms of it are unstable. In modern times,
it branched off into two extremes: communism and social democracy.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
10. A form of totalitarianism, sometimes referred to as "right-wing," allows for both
economic and political freedoms.
Answer: False
Feedback: A form of totalitarianism, sometimes referred to as "right-wing," allows for some
economic but not political freedoms. While it directly opposes socialist and communist ideas,
, DOWNLOAD THE Test Bank for International Management Culture Strategy
and Behavior 10th Edition Luthans
Chapter 02 - The Political, Legal, and Technological Environment
this form may gain power and support from the military, often in the form of a military leader
imposing a government "for the good of the people."
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-01 INTRODUCE the basic political systems that characterize regions
and countries around the world and offer brief examples of each and their implications for
international management. Level of Difficulty: 1 Easy
Topic: Political Environment
11. Common law is derived from Roman law and is found in non-Islamic and nonsocialist
countries such as France, some countries in Latin America, and even Louisiana in the United
States.
Answer: False
Feedback: Common law comes from English law, and it is the foundation of the legal system in
the United States, Canada, England, Australia, New Zealand, and other nations.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-02 PRESENT an overview of the legal and regulatory environment in
which MNCs operate worldwide, and highlight differences in approach to legal and regulatory
issues in different jurisdictions.
Level of Difficulty: 1 Easy
Topic: Legal and Regulatory Environment
12. The doctrine of civility holds that there must be mutual respect for the laws, institutions,
and governments of other countries in the matter of jurisdiction over their own citizens.
Answer: False
Feedback: The doctrine of comity holds that there must be mutual respect for the laws,
institutions, and governments of other countries in the matter of jurisdiction over their own
citizens.
AACSB: Analytic
Bloom's: Remember
Learning Objective: 02-02 PRESENT an overview of the legal and regulatory environment in
which MNCs operate worldwide, and highlight differences in approach to legal and regulatory
issues in different jurisdictions.
Level of Difficulty: 1 Easy
Topic: Legal and Regulatory Environment
13. The nationality principle is a jurisdictional principle of international law that holds that every
country has jurisdiction over its citizens no matter where they are located.
Answer: True
Feedback: The nationality principle is a jurisdictional principle of international law that holds
that every country has jurisdiction over its citizens no matter where they are located. Therefore, a
U.S. manager who violates the American Foreign Corrupt Practices Act while traveling abroad
can be found guilty in the United States.
2-44
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
mynursytest.store