1. In the context of global business management, which of the following best describes the concept of 'cultural intelligence'? A) The ability to understand and apply accounting principles in different cultural contexts. B) The capacity to relate and work effectively across cultures. C) The knowledge of various international tax laws. D) The skill to communicate in multiple languages. Answer: B) The capacity to relate and work effectively across cultures. Rationale: Cultural intelligence refers to the ability to understand and work effectively in different cultural contexts, which is crucial for managing in a global business environment. 2. What is the primary purpose of the Foreign Corrupt Practices Act (FCPA) in international business operations? A) To promote ethical business practices by prohibiting bribery of foreign officials. B) To regulate the international exchange rates and financial transactions. C) To enforce domestic employment laws in foreign subsidiaries. D) To establish a standard accounting framework for multinational corporations. Answer: A) To promote ethical business practices by prohibiting bribery of foreign officials. Rationale: The FCPA aims to prevent corruption and promote fair competition by making it illegal for companies to influence foreign officials with personal payments or rewards. 3. Which of the following is a key challenge in managing a global business environment? A) Decreasing transportation costs due to advanced technology. B) Homogenization of consumer tastes and preferences worldwide. C) Navigating diverse regulatory, legal, and ethical standards. D) Increased local competition due to globalization. Answer: C) Navigating diverse regulatory, legal, and ethical standards. Rationale: One of the main challenges of global business management is dealing with the complexity of different regulatory, legal, and ethical frameworks across countries.