Professional Documents
Culture Documents
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Chapters 1 Through 15
MULTIPLE CHOICE
1. Businesses of all sizes are increasingly looking for global opportunities because
a. Trade barriers are falling.
b. Money is flowing more freely across countries.
c. The world is becoming one interconnected economy.
d. All of the above.
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2. Globalization is
a. The trend of businesses expanding beyond their domestic boundaries.
b. Increasing average temperature over the globe.
c. The increased use of global satellite communication systems.
d. A strategy of developing unique products for each nation in the world.
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4. Multinational management is
a. A strategy of developing similar strategies for different countries.
b. The trend of business expanding beyond local boundaries.
c. The formulation and design of management systems to successfully take
advantage of international opportunities and respond to international threats.
d. None of the above
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6. Which of the following is not a classification of economic systems noted in the text?
a. Domestic economies
b. Transition economies
c. LDCs
d. Emerging markets
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8. Emerging markets include
a. OECD countries.
b. Brazil, China, Russia, India.
c. Korea, Japan and USA.
d. Hungary, Poland, Slovakia.
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11. Major regional trade agreements include all of the following EXCEPT
a. EU.
b. NAFTA.
c. APEC.
d. PROTEC.
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12. The economic agreement that links the US, Canada, and Mexico in an economic bloc
that allows freer exchange of goods and services is known as the
a. EU.
b. OPEC.
c. APEC.
d. None of the above
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20. Which of the following statements about the Internet and Information Technology is
true?
a. The Internet is benefiting companies worldwide.
b. Electronic communications does not allow companies to communicate with
locations around the world.
c. Information technology is not encouraging a borderless financial market.
d. Information technology does not allow the sharing of information around the
world.
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21. The free market reforms in emerging countries are creating a potential group of
a. new competitors.
b. old competitors.
c. subsidized firms.
d. government companies.
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24. Global trade has this important effect on developing new competitors.
a. It facilitates the transfer of technology, allowing former assemblers to become
creators.
b. It facilitates the transfer of knowledge, allowing former builders to become
assemblers.
c. It reduces competition.
d. It reduces rivalry.
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26. According to the experts cited in your text, the next generation of global managers
will need all of the following, EXCEPT:
a. Emotional intelligence
b. The ability to work with people from different cultural backgrounds
c. Poor negotiation skills
d. A local mindset
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28. The strategic approach to multinational management
a. Involves the development of one strategy for all countries.
b. Focuses on the skills and aptitudes that the next generation of global managers
will need.
c. Is concerned with developing strategies that deal with operating in more than one
country and culture.
d. None of the above
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31. The set of technical standards developed by the International Organization for
Standardization are known as
a. ISO 92.
b. ISO 14000.
c. ISO 9001: 2000.
d. None of the above
32. One of the major reasons why global companies seek to develop standard products is
because
a. A standard product allows the company to save money because the same product
can be sold anywhere.
b. A company can be more responsive to local cultural conditions.
c. It allows the company to invest more in research and development.
d. All of the above
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34. Which of the following statements regarding the European Union is true?
a. The European Union no longer exists.
b. The European Union includes Venezuela.
c. The European Union has a common currency.
d. All of the above are true.
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35. Future trends indicate that _____ matters more than size of the company.
a. location
b. price
c. flexibility
d. a high standard
AACSB Reflective thinking, Strategy
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36. According to the text, all of the following includes factors that will shape the future
business environment EXCEPT
a. Blurring of industry barriers.
b. Finding your niche.
c. Ability to find cheap labor.
d. Emphasis on innovation and the learning organization.
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37. The best definition of multinational management includes which of these factors:
a. The formulation of strategies and management systems.
b. Designed to take advantage of international opportunities.
c. And to respond to international threats.
d. All of the above.
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ESSAY
1. Discuss how any company can become a multinational company. What are some of
the options available to companies that allow them to use international markets and
locations competitively?
2. Discuss some reasons why reductions in world trade barriers are driving the world
toward a global economy.
3. Discuss at least two major forces that are driving the world toward a global economy.
4. How is the Internet and Information technology helping companies deal with a global
economy? How is the Internet and Information technology helping small companies
and even companies from poorer nations?
5. What is corporate social responsibility? Why are firms trying to become socially
responsible?
6. Discuss the differences between foreign trade and foreign direct investment.
7. What are some of the reasons why globalization and free trade are being criticized?
Do you think that free trade is helping all countries? Why or why not?
8. Look at the information on the worlds leading exporters discussed in the text. Do you
think these trends will continue in the future? Why?
9. Discuss the characteristics of a next generation of multinational managers. How can
you develop those characteristics through education and experience?
10. Why should multinational management be studied? What are some of the elements of
a strategic approach to multinational management?
MULTIPLE CHOICE
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2. The correct definitions of the levels of culture include all of these EXCEPT:
a. The national culture, dominant within the political boundaries of a nation-state.
b. The business culture, unique to each business.
c. The organizational culture, shared by members of an organization.
d. The occupational culture, shared by those in the same occupation.
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3. Cultural values:
a. Represent our understandings about what is true.
b. Prescribe and proscribe behavior.
c. Tell us what is good and beautiful and what are legitimate goals in life.
d. Provide solutions to problems of adaptation to the environment.
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4. All of the following are dimensions of Hofstedes Model of National Culture
EXCEPT:
a. Power avoidance.
b. Uncertainty avoidance.
c. Masculinity.
d. Long-term orientation.
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8. Occupational cultures
a. Are the norms, values, beliefs, and expected ways of behaving for people in the
same occupational group.
b. Are the set of important understandings that members of an organization share.
c. Are norms, values, and beliefs that pertain to all aspects of doing business in a
country.
d. Are the dominant cultures within a country.
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9. Some people believe that the norms, values, and beliefs of their own culture represent
the only correct ways of dealing with the world. This is called
a. High power distance.
b. Stereotyping.
c. Androgyny.
d. Ethnocentrism.
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11. A new expatriate manager located in India reports to you that all of her subordinate
local managers lack initiative and will only do what she tells them to do. You realize
that most Indian managers expect superiors to tell them what to do. You advise her of
this, but also caution the new manager to avoid:
a. Rationalization.
b. Stereotyping.
c. Uncertainty avoidance.
d. Ethnocentrism.
AACSB Reflective thinking, Individual dynamics
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12. On which of Hofstede's value dimensions does the U.S. rank highest?
a. Masculinity
b. Individualism
c. Patriotism
d. Power distance
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13. High power distance countries have norms, values, and beliefs such as
a. It is best to exercise power privately.
b. Everyone has a place, some are high and some are low.
c. A leader should develop his or her subordinates.
d. Leaders are made and not born.
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14. Countries high on uncertainty avoidance have norms, values, and beliefs such as
a. Debates help you find the truth.
b. Deviant people should be tolerated.
c. Lack of rules in the workplace is good.
d. Experts and authorities are usually correct.
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15. Which of the following best describes U.S. culture with regard to individualism?
a. Lower than many European nations
b. Highest observed so far
c. About the same as Japan
d. Slightly above average
AACSB Reflective thinking, Individual dynamics
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16. An emphasis on leadership styles that appeal to duty and commitment to group goals
are found primarily in countries with
a. Low masculinity.
b. Low uncertainty avoidance.
c. Short term orientations.
d. High collectivisim (low individualism).
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17. Training for conformity and obedience, with valuations based on compliance and
trustworthiness characterize countries with
a. Low power distance.
b. High power distance.
c. High individualism.
d. Short term orientations.
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20. People from ________ countries would probably feel most comfortable with an
autocratic (theory X) task- directed style of leadership.
a. High masculinity
b. High power distance
c. High uncertainty avoidance
d. All of the above
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21. A culture which has dominant values of success, money, and material things is
probably
a. Low on power distance.
b. Low on individualism.
c. High on masculinity.
d. High on long term orientation.
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24. Which of the 7d cultural dimensions represents the extent to which an individual's
personal life is involved in his/her work relationships?
a. Neutral versus affective
b. Achievement versus ascription
c. Time orientation
d. Specific versus diffuse
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26. Expressions of anger, laughter, gesturing, and emotional outbursts are considered
acceptable in
a. Specific cultures.
b. Diffuse cultures.
c. Neutral cultures.
d. Affective cultures.
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27. Which of the following statements is true regarding a future oriented society?
a. Managers and workers do not necessarily believe that hard work can lead to future
success.
b. People believe they can control nature.
c. Organizational change is considered necessary and beneficial.
d. Individuals cannot influence the future.
AACSB Analytic, Individual dynamics
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30. Discussing cultural paradoxes, the text indicates that although the US scores very high
on individualism, it also has the highest percentage of
a. unmotivated population.
b. uncaring seniors.
c. homeless people.
d. charity giving in the world.
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32. When hiring for managerial jobs in high power distance countries, preference is
generally given to individuals
a. having a high social class or a degree from an elite university.
b. from all social classes.
c. based on their qualifications and skills.
d. All of the above
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33. The range of feelings outwardly expressed in society refers to the cultural dimension
of ________.
a. Uncertainty avoidance
b. Universalism vs. particularism
c. Neutral vs. affective
d. Diffuse vs. specific
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34. Preference for involvement in multiple areas of personal and work life
simultaneously are more likely in
a. Specific cultures.
b. Diffuse cultures.
c. Neutral cultures.
d. Affective cultures.
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35. Which of the following cultural dimensions is NOT included in Hofstede's model of
national culture?
a. Power distance
b. Individualism
c. Masculinity
d. Neutrality
AACSB Reflective thinking, Individual dynamics
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37. Which of the following cultural dimension represents the extent to which individuals
are expected to be fair, altruistic, caring and generous?
a. Performance orientation
b. Individualism
c. Humane orientation
d. Power distance
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38. According to the text, which of the following two dimensions are not considered by
Hofstede and is unique to the GLOBE cultural dimensions framework?
a. Power distance and humane orientation
b. Long-term orientation and uncertainty avoidance
c. Masculinity and Individualism
d. Humane orientation and performance orientation
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40. According to research discussed in the text, which of the following may help
managers become more culturally intelligent?
a. Exposure to new cultural experiences in other countries
b. Learning to trust each people from individualistic cultures
c. Having a short term orientation
d. All of the above are true
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ESSAY
8. Discuss four of the 7d cultural dimensions. What are some implications of these
dimensions for international management?
9. Why do the rankings on some cultural dimensions such as individualism differ
between the 7d and Hofstede models?
10. Discuss the GLOBE cultural framework. How is this cultural framework different
from Hofstedes framework?
MULTIPLE CHOICE
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2. A complex of positions, roles, norms, and values organizing relatively stable patterns
of human resources to sustain viable social structures refers to which of the
following?
a. Entrepreneurship
b. Social institutions
c. Comparative advantage
d. Strategy of the multinational company
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3. According to the model discussed in the text, the national context does which of the
following?
a. Creates a resource pool
b. Influences the business environment and helps create induced factor conditions
c. Does not influence the business environment
d. Does not help create induced factor conditions
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5. Which of the following statements is NOT TRUE regarding the experiences countries
go through as they undertake market transitions from socialism to a more market
based economy?
a. Drastic measures have to be taken to turn around formerly inefficient companies.
b. Managers' thinking have to be changed so that they can understand management
functions.
c. Financial systems have to be left unregulated to accurately reflect market prices.
d. More workers have to be hired as companies find that they are understaffed.
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8. Which of the following are key social institutions that are the most likely to influence
the business environment of a country?
a. Economic system
b. Level of industrialization
c. Religion
d. All of the above
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9. Which of the following systems encourage the pursuit of collective goals such as
social equality and solidarity?
a. Economic system
b. Market economy
c. Command economy
d. Capitalist economy
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10. According to the text, which of the following statements regarding workers in
formerly socialist economies is NOT TRUE?
a. Workers in formerly socialist economies are very trusting of each other
b. Workers in formerly socialist economies are generally reluctant to cooperate and
work with each other
c. Workers in formerly socialist economies tend to favor personal relationships as
key to success as opposed to their work performance
d. All of the above are true
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11. Which of the following societies tend to determine occupations based on ascription
(family background) and social status?
a. Industrial societies
b. Postindustrial societies
c. Socialist societies
d. Pre industrial societies
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12. Which of the following four religions are practiced by 71% of the world's population?
a. Jainism, Hinduism, Islam and Christianity
b. Hinduism, Christianity, Islam, and Sikhism
c. Christianity, Hinduism, Islam and Buddhism
d. Judaism, Christianity, Buddhism, and Islam
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13. Which of the following religions is most practiced around the world?
a. Christianity
b. Buddhism
c. Hinduism
d. Islam
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14. Which of the following religions has strict gender roles and also prohibits
multinationals from paying or receiving interest on transactions?
a. Islam
b. Buddhism
c. Christianity
d. Jainism
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15. Which religion is considered to be timeless and eternal as it not based on a single
founder or event?
a. Jainism
b. Christianity
c. Hinduism
d. None of the above
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16. Which of the following religions is based on the idea that craving and desires produce
suffering but that it also possible to reach a stage where there is no longer any
suffering?
a. Christianity
b. Judaism
c. Hinduism
d. Buddhism
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17. The cultural and economic changes that occur because of how production is organized
and distributed in society refers to which concept?
a. religion
b. education
c. industrialization
d. dominant economic type
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19. A multinational manager carefully considers the list of festivals that are celebrated in
a country in order to allow for holidays for his/her employees. Which social
institution is most likely being considered here?
a. Industrialization
b. Market transition
c. Education
d. Religion
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21. An increased emphasis on quality of life over achievement oriented norms is typical
of
a. Pre-industrial societies.
b. Industrial societies.
c. Post-industrial societies.
d. None of the above
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23. In which of the following societies would people most likely prefer non-monetary
incentives?
a. Industrial society
b. Pre-industrial society
c. Post-industrial society
d. None of the above
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24. High rankings on the materialist index of some countries (e.g., Hungary, India, Brazil)
suggest that individuals in these countries are
a. Favor non material incentives.
b. Achievement oriented.
c. Motivated by non-monetary rewards.
d. Hinduism.
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25. When industrialization is inwardly oriented, local industries are promoted to satisfy
the
a. Need to export.
b. Local population.
c. Requirements of multinational companies.
d. Domestic market and preserve foreign exchange.
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27. The famous German Sociologist, Max Weber, argued that the Protestant work ethic
a. Led to the emergence of capitalism in Western Europe.
b. Led to the decline of capitalism in Western Europe.
c. Led to an acute distaste for the accumulation of wealth.
d. Led to the rise of socialism in Eastern Europe.
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28. One important issue relevant to multinationals, is the extent to which educational
systems encourage students to
a. Be innovative and creative.
b. To expect a more ethical atmosphere.
c. Passively accept what is taught.
d. None of the above
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29. When multinationals pay low wages or use child labor, they often receive
a. Support and praise.
b. Imprisonment.
c. Negative publicity.
d. Social responsibility.
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30. According to the text, all of the following statements regarding education and
educational systems around the world are TRUE except
a. Universal education enrolment is a goal of most countries.
b. Educational levels give an indication of the skill and productivity in any society.
c. The focus of educational systems around the world are fairly similar in terms of
whether these systems emphasize academic or vocational aspects.
d. All of the above statements are true.
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32. Which of the following is not an implication of educational systems as they apply to
multinationals?
a. Educational level gives an indication of the skill and productivity of workers in
any society.
b. Educational systems have implications for how labor force issues are approached
and policies implemented.
c. Educational levels can be gauged to give an idea of what multinationals can
expect.
d. All of the above are true
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34. When a society expects that while men should work outside, and women ideally stay
at home, this exhibits which of the following features?
a. Need for domestic products
b. Open societies
c. Growing levels of industrialization and economic development
d. Strict division of society by gender
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36. The degree to which people have privileged access to resources and positions within
societies is
a. An indication of social inequality.
b. The same around the world.
c. Has no implications for multinationals.
d. All of the above
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37. Which of the following statements about the GINI index is FALSE?
a. The GINI index represents the extent of inequality in peoples income within a
society
b. Ranges from 0 to 100
c. Is scaled so that 0 represents no inequality while 100 represents perfect inequality
d. Is scaled so that 100 represents no inequality while 0 represents perfect inequality
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38. The movement from a socialist economy to a free market economy is also known as
which of the following?
a. Market transition
b. Dominant economic type
c. Rapid industrialization
d. Government regulation
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39. The index of economic freedom may be used by multinationals to understand the
nature of
a. market transitions
b. national culture
c. national context
d. governmental intervention
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ESSAY
3. What are the three major types of economic systems? What are the effects of
economic systems on how organizations are structured in societies?
4. What are some implications of the market transitions that many formerly communist
societies are experiencing? What are some major challenges facing multinationals as
they try to motivate workers in these transition economies?
6. What are some major philosophies of each of the world's major religions? Pick two
religions and discuss how they affect the business environment.
7. How does the educational system influence the business environment in any country?
8. What is social inequality? What implications does social inequality have for
multinationals?
Chapter 4
Managing Ethical and Social Responsibility Challenges in Multinational Companies
MULTIPLE CHOICE
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3. The ethical philosophies that consider actions as good or bad regardless of their
outcomes are
a. The teleological ethical theories.
b. Utilitarianism.
c. Deontological theories of ethics.
d. None of the above
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5. Which of the following statements are true about teleological ethical theories?
a. The morality of an act comes from its consequences.
b. Utilitarianism is one of the most popular teleological theory.
c. Actions by themselves have a good or bad morality regardless of their
consequences.
d. All of the above are true.
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6. Stealing a loaf of bread to feed a hungry family can be justified by which ethical
theory?
a. Social responsibility ethical theory
b. Deontological ethical theory
c. Moral languages
d. Utilitarianism
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7. Moral languages
a. Are a form of deontological ethical theory.
b. Focus on the consequences of actions rather than their worth.
c. Describe the ways people think about general issues.
d. Are used to explain ethical choices.
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9. Multinationals that provide fair wages to their local employees are following which
type of moral language?
a. Avoiding harm
b. Ethical behavior
c. Rights and duties
d. Social contract
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10. According to the text, the United Nations Declaration of Human Rights is an example
of which of the following?
a. Convenient imperialism
b. Transnational ethics
c. European codes
d. Moral language
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12. Which of the following statements about bribes or questionable payments are true?
a. Bribes to expedite government actions or to gain business advantages are common
in international business.
b. Most countries have formal laws forbidding bribes or questionable payments.
c. Enforceability of ethics varies in different countries.
d. All of the above
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15. Which of the following payments would the Foreign Corrupt Practices Act allow?
a. Payments made under duress to avoid injury or violence
b. Small payments to encourage officials to do their legitimate and routine jobs
c. Payments that are considered lawful in the country
d. All of the above are allowed
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19. Pressures for ethical convergence include all of the following EXCEPT
a. The growth of international trade and trading blocs.
b. Increased interaction between foreign trading partners.
c. The need to have unique norms and values to manage their employees differently.
d. All of the above are true
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22. The argument that there are basic moral principles that transcend cultural and national
boundaries is supported by
a. Ethical relativism.
b. Moral languages.
c. Ethical universalism.
d. None of the above
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23. When companies use the logic of ethical relativism to behave any way they please,
this is known as
a. Prescriptive ethical management.
b. Proscriptive ethical management.
c. Convenient relativism.
d. Universal ethics applications.
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24. When companies use the logic of moral universalism and impose their views on the
rest of the world, ________________ occurs.
a. Ethical divergence
b. Ethical convenience
c. Cultural imperialism
d. None of the above
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25. The form of analysis where the prime interest is what is the best decision for a
company's profit is
a. Legal analysis.
b. Ethical analysis.
c. Social responsibility analysis.
d. None of the above
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27. When facing an ethical question, the manager who uses legal analysis criteria
a. Is primarily interested in the decision that is best for the company's profits.
b. Focuses on only meeting the laws of the country in which the company is
operating.
c. Focuses on meeting the needs of other constituents beyond stakeholders.
d. Focuses on doing the right things.
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31. A multinational manager decides that it would be unethical to close a foreign plant as
employees in that plant are not being treated with dignity. Which ethical theory is the
manager using to reach that conclusion?
a. Teleological ethical theory
b. Utilitarian ethical theory
c. Deontological ethical theory
d. None of the above
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32. A multinational manager decides to allow hiring of children for a foreign plant as
such practices are accepted in the country. Which ethical principle is she basing her
decision on?
a. Ethical universalism
b. Convenient ethical universalism
c. Ethical relativism
d. None of the above
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34. Which act was proposed by the Securities Exchange Commission in reaction to the
accounting scandals at companies like Enron and Worldcom?
a. Sarbanes-Oxley
b. WTO
c. Corruption Perception Index
d. The Ethisphere Institute
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35. Which of the following statements regarding the Foreign Corrupt Practices Act
(FCPA) is NOT TRUE?
a. Bribes or payments made under duress to avoid injury or violence are acceptable.
b. Small payments to encourage officials to do their legitimate and routine jobs are
acceptable.
c. Payments or gifts to foreign government officials for the sake of gaining or
retaining business are acceptable.
d. In an unstable political environment, payments made to local officials to avoid
harassment of employees are acceptable.
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38. According to the text, which of the following is NOT a consequence of corruption?
a. Companies typically make up the bribe by increasing the contract price.
b. Companies use poorer quality materials to make up for the bribe.
c. Companies devote some of the bribe to socially responsible causes.
d. Corruption can also result in collusions among firms.
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40. Which of the following ethical dilemmas is addressed by the Sarbanes Oxley Act?
a. Competition
b. Auditor responsibility and independence
c. Sourcing of cheap labor
d. Company strategy
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ESSAY
1. Discuss some of the issues that make international business ethics more complex than
domestic business ethics.
2. Do laws always reflect a communitys ethics? Give an example to explain your
answer.
3. Discuss the difference between teleological and deontological theories of ethics. Give
examples of how an international manager might appeal to either type of theory when
faced with the opportunity to offer a bribe.
4. How do social institutions and culture affect the practice of business ethics in
different countries?
5. Compare and contrast ethical relativism and ethical universalism. What are some of
the dangers of adopting either ethical relativism or ethical universalism when making
decisions?
6. Describe the U.S. FCPA, what makes it challenging for U.S. firms, and how they deal
with that challenge.
7. What are moral languages? How can moral languages help multinational become
more ethical?
8. Discuss some of the pressures for ethical convergence. What are some implications
for multinational management?
Chapter 5
Strategic Management in the Multinational Company: Content and Formulation
MULTIPLE CHOICE
1. Generic strategies
a. Occur when a company can outmatch its rivals in attracting and maintaining its
customers.
b. Represent basic ways that domestic and multinational companies keep and
achieve competitive advantage.
c. Are all based on finding ways to provide superior value to the customer.
d. None of the above
AACSB Reflective thinking, Strategy
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9. Sales and dealing with distribution channels refer to _________ activities in the value
chain.
a. Upstream
b. Support
c. Secondary
d. Downstream
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14. Strategies used to attempt to reduce the risk of being attacked are
a. Defensive competitive strategies.
b. Offensive competitive strategies.
c. Generic strategies.
d. None of the above
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15. Counter-parry
a. Is an example of an offensive strategy.
b. Is an example of a generic strategy.
c. Is fending off a competitor's attack in one country by attacking the competitor in
another country.
d. None of the above
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18. In related diversification
a. Companies acquire businesses in any country.
b. Companies acquire businesses in any industry.
c. Companies acquire businesses that are similar in some way to their core business.
d. None of the above
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20. This is considered to be a popular and controversial way to address internal cost
inefficiencies.
a. Insourcing
b. Outsourcing
c. Related diversification
d. Unrelated diversification
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21. Market size, ease of entry and exit, and economies of scale are all examples of
a. Defensive strategies.
b. Key success factors.
c. Dominant economic characteristics.
d. Differentiation.
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24. A strength is
a. A favorable condition in a company's environment.
b. Distinctive capability, resource, skill, or other advantage that a company has vis-
-vis its competitors.
c. Represented by changes in the economic conditions in an industry.
d. None of the above
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26. BMW and Mercedes view their Japanese rivals moves into the upscale car market as
a/an
a. Strength.
b. Weakness.
c. Opportunity.
d. Threat.
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29. In the BCG matrix, the appropriate strategy for dogs should be
a. Invest and Expand.
b. Defend and Harvest.
c. Divest.
d. None of the above
30. In the BCG Matrix, Defend and Harvest are the most popular strategies for
a. Stars.
b. Dogs.
c. Cash cows.
d. Problem children.
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33. Capabilities
a. Are the inputs into a company's production or service processes.
b. Are early activities in the value chain such as R&D and dealing with suppliers.
c. Are similar to distinctive competencies.
d. Represent the ability of companies to assemble and coordinate their resources in
ways that lead to lower costs of differentiated outputs.
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35. Which of the following more likely represents a threat to a multinational company
like Toyota?
a. Higher prices charged by Toyota's competitors.
b. Lower interest rates around the world that makes cars more affordable.
c. Toyota's bad image among teenagers.
d. Kia and Hyundai's entry in markets traditionally dominated by Toyota.
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36. A company that has a limited product range, and sells to certain buyers in some
geographical areas is said to have which of the following?
a. Broad competitive scope
b. Narrow competitive scope
c. Lack of competition
d. None of the above
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38. Which of the following forces is NOT one of the forces considered in Porters five
forces analysis?
a. Degree of competition among existing competitors
b. Degree of governmental regulation in the industry
c. Threat of new entrants in the industry
d. Bargaining power of buyers in the industry
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39. The degree to which competitors are confronted with alternatives for their products is
referred to as which force in Porters five forces?
a. Threat of new entrants
b. Bargaining power of buyers
c. Degree of competition
d. None of the above
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40. The national context affects strategy through which of the following processes?
a. Encourage or discourage certain forms of businesses and strategies in each
country
b. Factor conditions play a role in shaping each countrys unique resource base
c. Determine which resources are used, how they are used and which are developed
d. All of the above
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ESSAY
2. Regarding low cost and differentiation strategies, when is each strategy appropriate?
3. Compare and contrast defensive and offensive strategies. Discuss when a
multinational can use offensive strategies in one country and defensive strategies in
another.
4. What is the value chain? How can an understanding of the value chain help a
company be more successful in its generic strategy?
7. Describe the SWOT analysis. Why is a SWOT analysis more complex for a
multinational than for a domestic company?
8. Discuss some of the major issues a multinational manager needs to take into
consideration when conducting an industry analysis.
9. What are key success factors? Discuss some KSFs that are most likely to vary by
national context.
10. Discuss each of Porters five forces model. What information can a multinational
obtain from Porters five forces industry analysis?
MULTIPLE CHOICE
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2. Responding to differences in the markets in all the countries in which a company
operates is
a. The global-local dilemma.
b. The best strategy for success for a multinational.
c. The local-responsiveness solution.
d. The global solution.
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4. Conducting business similarly throughout the world, and locating company units
wherever there is high quality and low cost is
a. The global-local dilemma.
b. The global integration solution.
c. The local responsiveness solution.
d. The multidomestic solution.
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6. Which strategy attempts to balance advantages from three other multinational
strategies?
a. Regional
b. Multidomestic
c. Transnational
d. International
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7. Dispersing value-chain activities anywhere in the world where the company can do
them best or cheapest refers to seeking
a. The global-local dilemma.
b. Comparative advantage of nations.
c. Competitive advantage of firms.
d. Locations advantages.
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8. Comparative advantage is
a. Similar to competitive advantage.
b. A local responsiveness solution.
c. Where the company can produce the cheapest.
d. Advantages of nations over other nations.
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10. Selling global products and using similar marketing techniques worldwide is an
example of a
a. Transnational strategy.
b. International strategy.
c. Multidomestic strategy.
d. Regional strategy.
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13. Common customer needs, global sources of raw material, and favorable trade policies
all lead to
a. An increased focus on local markets.
b. More use of the multidomestic strategy.
c. More use of the local solution to the global-local dilemma.
d. A greater likelihood that companies select global strategies.
14. Having one set of products for North American countries and another set of products
for Europe illustrates which strategy?
a. Multidomestic
b. Regional
c. Transnational
d. Global
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16. Asking diagnostic questions such as are there economies of scale, are there cheaper
sources of raw materials, are there global sources of low-cost raw materials provide
information regarding which globalization driver?
a. Global markets
b. Costs
c. Competition
d. Governments
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18. Using intermediaries or go-between firms to provide the knowledge and contacts
necessary to sell overseas is usually associated with
a. Direct exporting.
b. Franchising.
c. Indirect exporting.
d. Licensing.
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19. A company that treats and fills overseas orders like domestic orders is an example of
a
a. Indirect exporter.
b. Export management company.
c. Aggressive exporter.
d. Passive exporter.
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21. When multinationals make a project fully operational and train local managers and
workers before the owner takes control, they are using which entry-mode strategy?
a. Licensing
b. Franchising
c. Turnkey
d. Direct export
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22. When a firm from another country has an equity (or ownership) position in a separate
company, it is engaging in
a. An international cooperative alliance.
b. A turnkey operation.
c. A contract manufacturer.
d. FDI.
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28. If management believes that it must control foreign sales, customer credit, and the
eventual sale of the product, then the company should choose which of the following
entry-mode strategies?
a. Indirect exporting
b. Licensing
c. Direct exporting
d. Franchising
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31. Which of the following strategies gives top priority to seeking location advantages
and to gaining operation efficiencies from worldwide operation?
a. Multidomestic strategy
b. Regional strategy
c. Transnational strategy
d. International strategy
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32. If strategists in a firm believe that centralizing key activities such as R&D is
necessary to reduce coordination costs and to achieve economies of scale, they are
more likely to choose
a. An international strategy.
b. A transnational strategy.
c. A local strategy.
d. None of the above
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34. If a company believes that it needs to control foreign sales, customer credit, and sale
of product to the customer, it is more likely to choose
a. Indirect exporting.
b. Rely on foreign intermediaries for export purposes.
c. Direct exporting.
d. None of the above
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35. To deal with political risk, various private and government agencies offer
a. Insurance.
b. Assurance.
c. Investment.
d. All of the above are true.
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39. Which of the following refers to the negative impact of political decisions or events
on a multinationals profitability?
a. Economic risk
b. Local government risk
c. Political risk
d. Control risk
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40. Which of the following is NOT a factor considered when assessing political risk?
a. The durability of the political system
b. The role of the government, unions and the media in political stability
c. The profitability
d. The reliability of the rule of law
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ESSAY
5. You work for a small company that has an innovative low-cost production method for
laser disks. A Japanese firm approaches your CEO to license the technology. The
CEO asks you to write a report detailing the risks and potential benefits of this deal.
What will you include in the report and why?
6. You work for a small company that has an innovative low-cost production method for
laser disks that allow it to produce at very low cost. A Belgian firm approaches your
CEO and offers to export your disks to Belgium for a commission. The CEO asks you
to write a report detailing the risks and potential benefits of this deal. What will you
include in your report and why
7. Under what conditions would a regional strategy be best for a multinational? Explain.
10. What is political risk? Discuss some of the aspects of political risk assessment. How
can multinationals use political risk assessment?
MULTIPLE CHOICE
1. Small businesses differ from large businesses when going international primarily in
a. The available participation strategies.
b. The strategies they can use to go international.
c. Their founder's or entrepreneur's influence.
d. The available multinational strategies.
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2. Definitions of small businesses discussed in the text include the following EXCEPT
a. Number of employees.
b. Sales revenue.
c. Industry.
d. Type of product or service.
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3. An entrepreneur
a. Creates new ventures that seek profit and growth.
b. Is seldom the primary force behind a company's decision to go international.
c. Can accurately predict the risks and uncertainties of his/her ventures.
d. Faces less uncertainty than a multinational.
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4. When a company sets up a sales branch in a foreign country, it is at what stage of the
internationalization of the small entrepreneurial business?
a. Stage 1
b. Stage 2
c. Stage 3
d. Stage 4
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5. During the second stage (Export Management) of the small business model of
internationalization, the company
a. Fills international orders only.
b. Specifically seeks export sales.
c. Seeks increased sales from licensing.
d. Sets up a local sales office in another country.
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6. A global start-up is
a. A company that goes global from day one of its life.
b. A company that starts a global strategy after exporting.
c. A company that skips the first stage of the Small Business Model of
Internationalization.
d. None of the above
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7. One of the major advantages of being involved in Stage 5 (Production Abroad) of the
stages of internationalization for small businesses is that it
a. Allows the company to cut the costs of direct investment.
b. Allows the company to avoid developing a globally integrated network.
c. Allows the company to gain local advantages such as product adaptation or
production effectiveness.
d. Almost insures that the company will survive and prosper.
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9. Which of the following has helped to level the playing field for small businesses
wanting to go international?
a. Technology and e-commerce
b. Sources of venture capital
c. Having a headquarters located near a major customer
d. The existence of trade shows
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11. Small business barriers to internationalization include all of the following EXCEPT
a. Small size means limited financial and personnel resources for international
operations.
b. Top managers with limited international experience.
c. Positive attitudes of top managers about becoming multinationals.
d. Lack of sufficient scale to produce goods or services as efficiently as large
companies.
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12. Although large businesses have more resources, small businesses have the advantage
of:
a. size.
b. time.
c. speed.
d. a global culture.
AACSB Reflective thinking, Creation of value
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14. The development of a global culture is affected by all of the following characteristics
of the key decision makers EXCEPT
a. Ability to perform well at the domestic level.
b. International experience.
c. Perceived psychological distance to foreign markets.
d. Overall attitudes toward international strategies.
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15. All of the following are true about small business CEOs EXCEPT
a. Opening new markets is often the personal responsibility of the CEO.
b. They want to take a break from the daily management of their businesses by going
overseas.
c. New international ventures may threaten their family life.
d. Their attitudes towards internationalization is a major factor in international
success.
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16. Small businesses can potentially have more advantages than larger businesses in the
global economy because
a. Small companies can change quickly to take advantage of opportunities in new
markets.
b. Larger companies have more slack resources to absorb risk.
c. Small companies require a lot of travel from their CEOs.
d. Small companies have more access to resources.
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19. Which of the following is not one of the questions to consider when a small business
decides to go international?
a. Do we have a global product or service?
b. Do we have partners with which to go international?
c. Do we have the managerial, organizational, and financial resources to go
international?
d. Is there a profitable market for our products or service?
20. A strategic competitive advantage for breaking into the established pattern of
commercial activity is a/an
a. Low cost strategy.
b. Differentiation Strategy.
c. Entry wedge.
d. Participation strategy.
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21. According to the text, which of the following participation strategies do small
businesses emphasize?
a. Importing
b. Licensing
c. Foreign direct investment
d. Exporting
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22. The more common techniques of making international contacts used by small
businesses include all of the following EXCEPT
a. Trade shows.
b. Seeking advice from foreign companies.
c. Government sponsored trade missions.
d. Catalogue expositions.
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28. Successful strategies for copy cats include all of the following EXCEPT
a. Being the first to change to a new standard.
b. Transferring the location.
c. Seeking abandoned or ignored market.
d. Selling products at a global level.
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29. Future Tech International sells high tech products in Latin America, a market
traditionally ignored by many high tech companies. What successful copycat strategy
does this move represent?
a. Acquiring existing businesses
b. Becoming a dedicated distributor
c. Seeking abandoned or ignored markets
d. Being the first to change to a new standard
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31. The United Nations and Organization for Economic Cooperation and Development
a. Defines a small business as those having less than 500 employees.
b. Defines a small business as those with less than 100 employees.
c. Defines a small business based on industry and sales revenue.
d. All of the above
32. When a small business uses significant resources to seek increased sales from
exporting, it is what stage of internationalization?
a. Stage 1 - Passive exporting
b. Stage 2 - Export management
c. Stage 3 - Export department
d. Stage 4 - Sales branch
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35. The discovery, evaluation and exploitation of market opportunities refers to which of
the following?
a. Entrepreneurship
b. International entrepreneurship
c. Small business
d. International opportunities
36. Which of the following statements about small businesses in the US is FALSE?
a. Small businesses represent about 99.7% of all employing firms.
b. Small businesses generate about 15% of all new jobs annually.
c. Small businesses employ almost 41% of all high tech workers.
d. Small businesses represent almost 97% of identified exporters.
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37. When demand for a small business is so high in a foreign country that it justifies
setting up a local branch, which of the following stages of internationalization is the
small business at?
a. Export management
b. Passive exporting
c. Production abroad
d. None of the above
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38. A multinational manager is studying the data on total entrepreneurial activity ratings
by country. She is most likely doing this in order to
a. Assess the level of entrepreneurship in a country.
b. Understand available industries.
c. Assess small business failure.
d. Understand opportunities for new ventures.
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39. Many multinationals rely on the support and assistance provided by which of the
following when entering a new country?
a. Customers
b. Entrepreneurs and small businesses
c. World Bank
d. Trade Shows
AACSB Reflective thinking, Creation of value
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40. Which of the following is NOT a common customer contact technique used by small
firms to get find customers?
a. Trade shows
b. Industry advisory boards
c. Government sponsored trade missions
d. Catalog expositions
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ESSAY
2. What are the advantages of a small business going international through incremental
stages rather than as a global start-up?
4. Discuss some of the advantages that the Internet can offer small businesses when
going international.
6. Imagine a small business manager asks you, a recent business college graduate, to
help her decide whether she should enter the export market. What questions would
you ask her and why?
7. How do small businesses and entrepreneurs affect national economic growth and
development? Explain why multinationals consider entrepreneurship levels in the
country when making their location choices.
8. Discuss ways that a small business manager can make the contacts necessary to
implement an exporting strategy.
9. Consider three of the suggested strategic moves for copycat businesses. Which of
these strategies might be most successful when expanding into the international
market as opposed to the domestic market?
10. What is the first mover advantage? What are the most common sources of first mover
advantages? How can a small business benefit from first mover advantage?
MULTIPLE CHOICE
1. The manner in which organizations structure subunits and use coordination and
control mechanisms to achieve their strategic goals is the
a. Organizational structure.
b. Organizational culture.
c. Degree of formalization.
d. Organizational design.
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3. All of the following statements are true about the functional structure EXCEPT
a. In the functional structure, departments perform separate business functions such
as marketing or manufacturing.
b. The functional structure is the simplest of organizations.
c. In small organizations, the functional structure is the least efficient of all
structures.
d. Because functional subunits are separated from each other, coordination among
the units can be difficult.
AACSB Reflective thinking, Strategy
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4. One of the major reasons why companies choose a functional structure is because
a. It allows adapting products to country tastes.
b. It enables responding to the needs of different types of customers.
c. It helps balance the strategy with the organization design.
d. It helps achieve efficiency.
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5. All of the following statements are true about product structures EXCEPT
a. The product structure is the most efficient of all structures.
b. Product organizations must still perform some functional tasks of a business.
c. The structure builds a department or subunit around a product .
d. Managers choose product structures when they believe that a product or a group
of products is sufficiently unique to require focused efforts on one type of product
or service.
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7. Organizations that are designed with mixtures of structures that are the best to
implement their strategies are
a. Product structures.
b. Geographic structures.
c. Hybrid structures.
d. Functional structures.
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10. The type of subsidiary that supports a multinational firm strategy based on location
advantages is a/an
a. Export department.
b. Minireplica subsidiary.
c. Transnational subsidiary.
d. International division.
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13. The international division differs from the export department in that
a. The international division is usually larger and has greater responsibilities.
b. The international division has more extensive staff with international expertise.
c. Top management expects the staff of the international division to perform
functions such as negotiating licensing and joint venture agreements, translating
promotional material, or providing expertise on different national cultures and
social institutions.
d. All of the above are true.
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14. Which of the following are considered to be the structural building blocks for running
a multinational?
a. International division
b. Metanational
c. Mini replica
d. Foreign subsidiaries
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15. Adopting strategies that include both concerns for local adaptation needs and concern
for the economic and product development benefits of globalization is possible with
the
a. Worldwide product structure.
b. Worldwide geographic structure.
c. Hybrid structure.
d. None of the above
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16. The worldwide geographic structure is usually considered best to implement a _____
strategy.
a. Multidomestic or regional
b. Transnational
c. International
d. Indirect exporting
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17. The worldwide product structure is usually considered best to implement a/an _____
strategy.
a. Multidomestic or regional
b. Transnational
c. International
d. Indirect exporting
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18. The most balanced structural solution to the national responsiveness versus global
efficiency dilemma is
a. The transnational network structure.
b. The worldwide product structure.
c. Worldwide geographic structure.
d. The matrix structure.
19. All of the following statements are true about the worldwide matrix structure
EXCEPT
a. To balance the benefits produced by geographic and product structures and to
coordinate a mixture of product and geographic subunits, some multinationals
create a worldwide matrix structure.
b. Unlike most hybrid organizations, the worldwide matrix structure is a symmetrical
organization.
c. It has unequal lines of authority for product groups and for geographic divisions.
d. The matrix structure works well only when there are near equal demands from the
environment for local adaptation and for product standardization with its
associated economies of scale.
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20. Which of the following structures best support strategies that emphasize global
products and rationalization?
a. The functional structure
b. The matrix structure
c. The geographic structure
d. The product structure
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22. The type of vertical control mechanism most often associated with a profit center is
a. Bureaucratic.
b. Output.
c. Cultural.
d. Decision making.
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24. _________ mean/means that management locates subsidiaries anywhere in the world
where they can benefit the company.
a. Dispersed subunits
b. Specialized operations
c. Interdependent relationships
d. None of the above
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25. __________ help link the organization vertically, up and down the organizational
hierarchy.
a. Coordination systems
b. Dispersed subunits
c. Control systems
d. Subunits
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27. Which of the following types of control system uses budgets, statistical reports,
standard operating procedures, and centralized decision making to manage
organizational processes?
a. Profit center
b. Bureaucratic control system
c. Decision-making control
d. Cultural control system
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28. A permanent unit of the organization designed to focus the efforts of different
subunits on particular problems is a
a. Task force.
b. Full-time integrator.
c. Liaison.
d. Team.
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30. Which of the following is NOT true regarding the use of control options by most
multinationals?
a. Most multinationals use several types of coordination mechanisms.
b. Multinationals with export departments have very high need for coordination.
c. Matrix and transnational structures have very high needs for coordination.
d. For transnational networks, teams are increasingly virtual with members seldom
meeting face-to-face.
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31. All of the following are TRUE about product structures EXCEPT
a. Product structure organizations must still perform functional tasks of a business.
b. In product structures, functional areas are concentrated in separate subunits.
c. Product structures are required when products or service are sufficiently unique to
require different functional support.
d. All of the above are true.
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32. Subunits of a multinational company located in other countries than the parent
company's headquarters is known as
a. Functional divisions.
b. Foreign functional divisions.
c. Foreign subsidiaries.
d. International minireplica.
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33. The basic issue (s) that need to be considered for organizational design are
a. Division of work.
b. Coordination.
c. Control.
d. All of the above
34. A large, entrepreneurial multinational that is able to tap into hidden pockets of
innovation, technology, and market know-how scattered around the world, especially
in emerging markets is known as
a. A transnational.
b. A minireplica subsidiary.
c. A metanational.
d. A foreign subsidiary.
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35. Which of the following control systems uses the organizational culture to control
behaviors and attitudes of employees?
a. Cultural control systems
b. Decision-making control systems
c. Bureaucratic control systems
d. Output control systems
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36. Which of the following is NOT one of the questions asked when designing an
organization?
a. How should work be divided among the organizations subunits?
b. How should the work be coordinated among the various subunits?
c. How should the work of the various subunits be controlled?
d. How many subunits should the multinational have?
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37. Which of the following control systems focuses on managing behaviors of employees
rather than outcomes?
a. Bureaucratic control systems
b. Budgets and standard operating procedures
c. Cultural control systems
d. None of the above
AACSB Reflective thinking, Strategy
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39. Knowledge that usually resides within employees and is dependent on the
organizations culture and context is
a. Explicit knowledge.
b. Knowledge management.
c. Tacit knowledge.
d. None of the above
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ESSAY
7. What is cultural control? Why is it the favored control mechanism for transnational-
network structures?
9. What are control systems? Pick two control systems and describe how they work.
10. What is the transnational-network structure? Discuss some costs and benefits of
having a transnational network structure. Under what situation would a transnational-
network be appropriate?
MULTIPLE CHOICE
1. There are several issues to consider in picking a partner for a strategic alliance. One
of these is
a. Go for the biggest partner possible because they have the most assets.
b. Seek strategic complementarity.
c. Make sure your partner will be dependent on you and not vice versa.
d. All of the above
AACSB Reflective thinking, Group dynamics
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2. According to the text, all of the following are true about strategic alliances EXCEPT
a. They are inherently unstable and provide significant management challenges.
b. Estimates of failure rates range from 30 to 60 percent.
c. They are among the most popular choice to go international.
d. They are used mostly as a means to share technology.
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9. When a large number of companies form a joint venture, the international joint
venture is a
a. Multi-partner joint venture.
b. Consortium.
c. Informal cooperative alliance.
d. Equity joint venture.
10. All of the following are typically part of a negotiated joint venture agreement
EXCEPT
a. Management loyalty.
b. Equity contributions.
c. Provisions for dissolving the IJV.
d. Contracts for the IJV.
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13. When partners share strategic decision making but make decisions independently at
the functional level (e.g., marketing, production), they are using which of the
following management structures?
a. Dominant partner
b. Independent management structure
c. Rotating management
d. Split-control management structure
AACSB Reflective thinking, Group dynamics
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14. If partners have similar technologies or know-how and they contribute this knowledge
equally to the alliance, they prefer
a. A shared management structure.
b. A split management structure.
c. A dominant management structure.
d. A rotating management structure.
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17. As their management team gains more expertise, mature joint ventures move to what
type of structure?
a. Independent
b. Interdependent
c. Local partner dominance
d. Shared
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19. Suggested ways to build and sustain commitment in strategic alliances include
a. Go slowly.
b. Be the dominant partner.
c. Keep your goals secret so your partner does not get nervous about your intentions.
d. Use extensive written documentation.
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20. When applied to a strategic alliance relationship, the concept of trust includes
a. Confidence that the partner will deliver.
b. Confidence that the partner will behave with good will.
c. Confidence that the partner will engage in fair exchange.
d. All of the above
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21. The confidence that the partner will behave with goodwill and trust is
a. Commitment.
b. Credibility trust.
c. Benevolent trust.
d. Calculative commitment.
AACSB Reflective thinking, Group dynamics
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26. __________ means that companies rely on each other to contribute to the relationship.
a. Shared management
b. Balanced management
c. The norm of reciprocity
d. Mutual dependency
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27. Contracts for strategic alliances may include _____________ if the relationship
dissolves before the negotiated time.
a. Penalties for early termination of the contract by each side
b. Restrictions on future business growth
c. A promise to try future joint ventures
d. All of the above
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29. Understanding a new market and developing a new technology may be used as
performance criteria for which of the following?
a. Organizational learning
b. Management processes
c. Competitive advantage
d. Commitment
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31. Which of the following type of strategic alliances allows the multinational to combine
manufacturing or assembly activities to achieve a profitable volume of activity?
a. Operations alliances
b. Output alliances
c. Upstream-downstream alliances
d. Marketing alliances
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32. All of the following are true about international joint venture (IJV) EXCEPT
a. An IJV is a separate legal entity owned by parent companies from different
countries.
b. IJVs can have more than two partners.
c. IJVs require that companies have equal ownership to form the venture.
d. IJVs require legal contracts that bind partners.
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33. If strategic alliance partners have different technologies or know-how and they
contribute this knowledge equally, they often prefer
a. Shared management structure.
b. Dominant management structure.
c. Split management structure.
d. Rotating management structure.
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34. The psychological identification with a relationship in a strategic alliance and the
pride of association with the partner and the alliance is known as
a. Calculative commitment.
b. Credibility trust.
c. Benevolent trust.
d. Attitudinal commitment.
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35. The confidence that a strategic alliance partner has the intent and ability to meet their
obligations and make their promised contribution to a strategic alliance is known as
a. Credibility trust.
b. Benevolent trust.
c. Calculative trust.
d. Attitudinal trust.
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36. According to the text, which of the following is NOT a key criterion used in picking
an alliance partner?
a. Pick a partner who provides strategic complementarity.
b. Pick a partner who provides financial security.
c. Pick a partner who has complementary skills.
d. Pick a partner who provides the right level of mutual dependency.
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37. According to the text, which of the following DOES NOT represent a form of
strategic alliance?
a. Informal cooperative alliances
b. Formal cooperative alliances
c. International joint ventures
d. Informal partnerships
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38. Which of the following statements regarding international joint ventures is FALSE?
a. International joint ventures usually have two or more partners.
b. International joint ventures are usually not legally binding.
c. International joint ventures with a large number of partners are known as
consortiums.
d. Companies do not need equal ownership to form an international joint venture.
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39. The confidence that a partner has the intent and ability to meet its obligations and
make its promised contribution to the strategic alliance is known as
a. Calculative trust.
b. Calculative commitment.
c. Credibility trust.
d. Benevolent trust.
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40. Which of the following describes the situation where companies stay in a strategic
alliance despite strong evidence that the alliance wont work?
a. Calculative commitment
b. Credibility commitment
c. Attitudinal commitment
d. Escalation of commitment
ESSAY
1. What are the characteristics of a good partner in a strategic alliance? Why do these
partner traits help make a strategic alliance successful?
2. What are some of the common value chain links companies use to gain strategic
benefits from alliances? Pick two of these links and describe some of the benefits
partners gain from pursuing these links.
3. Under what conditions should a firm choose one of the various management
structures available for a strategic alliance?
4. What are the different kinds of commitment needed in a strategic alliance? Explain.
5. What are some of the difficulties of assessing IJV or ICA performance? How do these
differ for companies with different strategic goals?
6. What are the different management structures possible for strategic alliances? Pick
two of these management structures and discuss when they are most appropriate.
8. Discuss some of the things multinational managers can do to build and sustain trust
and commitment.
9. If an alliance fails to meet strategic goals, what two options do top managers have to
choose from to resolve the situation? How can an alliance be improved?
MULTIPLE CHOICE
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2. An Internet host that allows users to send encrypted data so that those outside the
connection cannot see the information is a
a. A secure server.
b. An internet host.
c. A computer that has its own Internet Protocol address.
d. A computer that has its own World Wide Web address.
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4. Traditional internet metrics do not quantify the use of new internet devices and
features, including:
a. Smart phones.
b. Cloud-computing.
c. Social networking.
d. All of the above.
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6. Which of the following is NOT one of the necessary steps to ensure a successful E-
Commerce strategy?
a. Building on current business models and experimenting with new e-commerce
models
b. Allocating resources to the e-commerce business
c. Making sure that the entire firm is prepared to embrace the e-commerce model
d. Training all upper level management in computer programming
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8. Independent operations between the brick and mortar part of a company and its e-
commerce system offer which of the following benefits?
a. The independent operation can move faster and be more entrepreneurial when
freed from corporate bureaucracy and it can seek funding from deep pockets of
venture capitalists.
b. The independent operation can benefit from cross-promotion of shared products,
shared customer information, increased large-quantity purchase leverage, and
economies of scale by using the same distribution channels.
c. The brick and mortar part of the company can transfer learning to the e-commerce
system of the company.
d. Independent operations can facilitate synergy between the brick and mortar part
and the e-commerce system.
9. According to the text, which of the following is NOT one of the management
challenges companies will face as they develop their e-commerce businesses?
a. Attracting, retaining, and developing employees in the e-commerce unit
b. Deciding which e-commerce functions to outsource
c. Finding funds to develop the e-commerce business
d. Finding ways to provide individuals with growth opportunities and job fulfillment
to encourage employee retention in the e-commerce business
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10. Which of the following strategies is a pure e-business least likely to be concerned
with when facing e-commerce challenges?
a. Developing information and management systems to respond to rapid growth
b. Attracting and retaining e-commerce-capable talent
c. Altering HR programs to suit the different skill requirements of e-commerce
employees
d. Maintaining rapid decision making, creativity, innovation, and flexibility
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11. Which of the following statements regarding globalizing through the Internet is not
true?
a. A company that globalizes through the Internet does not have to be concerned
with the global-local dilemma.
b. A company that globalizes through the Internet still faces the same challenges that
a brick and mortar company faces.
c. A company that globalizes through the internet must still address the traditional
problems of multinational business (i.e., currencies, local laws, infrastructure for
delivery).
d. A company that globalizes through the Internet must still decide whether to go
global or to require localization to national or regional levels.
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12. According to the text, which of the following areas is not one of the areas that e-
commerce companies work in?
a. Moving bits or computerized information
b. Moving money in payment flows
c. Providing Internet services
d. Moving physical products
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13. Which of the following businesses poses the highest degree of difficulty in e-
commerce?
a. Portals and infomediaries
b. Businesses such as Travelocity, and those that sell digital music, and software
c. Businesses that rely on a physical infrastructure
d. Brick and mortar companies
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14. According to the text, the degree of difficulty in conducting global e-commerce
businesses is primarily dependent on
a. The financial requirements.
b. The availability of management talent.
c. The infrastructure requirements.
d. The telecommunications infrastructure requirements.
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15. Which of the following types of companies are more likely to face challenges when
they decide to enter the international market through the Internet?
a. Large multinational firms that already have an existing global presence.
b. Large multinationals firms that already have existing international operations.
c. Smaller firms and firms new to international commerce.
d. Small firms that already have an existing global presence.
16. The major opportunities of e-commerce globalization include all of the following
EXCEPT
a. Cost reduction.
b. Efficiencies.
c. Speed of access and convenience.
d. Access to new sources of financing.
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17. Which of the following is NOT one of the major threats to e-commerce globalization?
a. Cost of site construction, maintenance and upgrades
b. Cost of training in top managers in computer programming
c. Easily copied e-commerce models
d. Traditional cross-border transaction and other cross-cultural complexities
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18. According to the text, which of the following is NOT one of the factors to take in
consideration when picking a country to start an e-business?
a. Internet population of at least 5%
b. Countries with market inefficiencies, such as formerly state-controlled markets
c. Countries that participates in at least one free trade agreement
d. Countries that have remarkable education systems
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19. According to the text, where is the greatest potential for e-commerce businesses?
a. North America
b. The European Union
c. South America
d. Asia
20. Which of the following statements does not accurately describe the most likely form
of organizing a multinational e-business?
a. A multinational e-business is three-tiered mixing global and local functions.
b. Corporate headquarters of the business provides the vision, strategy and
leadership that drive the marketing of products worldwide.
c. Local subsidiaries of the business take charge of the functions better done locally
in each country.
d. Corporate headquarters of the business provides the vision, strategy and
leadership and also takes charge of the local strategies in each country.
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21. Which of the following is not one of the necessary electronic capabilities required for
successful online presence?
a. Software to process pricing in multiple currencies
b. Ability to provide support in English in the various service centers
c. Systems that check regulatory compliance with local and international laws
d. Fraud protection
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24. MNCs face rising pressures to maintain the __________ of their customers.
a. Data
b. Privacy
c. Support
d. Repeat business
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25. Cost reduction, technology and efficiencies are considered to be the ________ of e-
commerce.
a. Attractions
b. Challenges
c. Deterrents
d. Keys
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27. Which of the following statements is NOT true regarding Business-to-Business
transactions (B2B)?
a. B2B is not as important as business-to-consumer (B2C) e-commerce businesses.
b. B2B allows instant information sharing between business customers and
suppliers.
c. B2B allows suppliers to know what their customers want and allows businesses to
know price, availability and product characteristics immediately.
d. B2B transactions make up more than 70 % of all current e-commerce business.
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28. Channel conflicts, cost of site construction and maintenance are considered to be
_____ of e-commerce.
a. Attractions
b. Challenges or deterrents
c. Linking services
d. Supporting software
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31. Price comparison websites which searches online stores around the world to provide
price comparisons and shipping and delivery information represents which form of e-
commerce?
a. B2B (business-to-business)
b. B2C (business-to-consumer)
c. C2C (consumer-to-consumer)
d. C2B (consumer-to-business)
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32. Which of the following is NOT one of the ways to modify a website to make it
global?
a. All company websites should first show the corporate website in the home
country.
b. Provide a prominent list of languages used by the company's web site
c. Provide the firm's privacy statements in all local languages
d. Provide a culturally-sensitive website
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33. Which of the following is NOT a benefit of integrated brick-and-mortar and internet
businesses?
a. The integrated operation can benefit from shared customer information.
b. The integrated operation can move faster and be more entrepreneurial.
c. The integrated operation can benefit from cross-promotion of shared products.
d. The integrated operation can benefit from economies of scale by using the small
distribution channels.
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34. Which of the following does NOT represent a necessary component of the ideal
multinational e-business?
a. Corporate headquarters which represents the global core in charge of providing a
common vision and strategy
b. Managers at headquarters having worldwide responsibility for their shared
functional areas responsibility
c. Local subsidiaries which actually deliver the goods and also taking charge of
functions best done locally
d. All of the above are necessary aspects of the multinational e-business
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35. The internet has enabled the emergence of a new form of multinational, known as
a. Internet Service Providers.
b. Virtual enablers.
c. Internet businesses.
d. Born-globals.
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36. The retail sale of toys from the Wal-Mart website represents which form of
transaction?
a. B2C
b. B2B
c. C2C
d. C2B
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37. Having systems in place to ensure that collected information is accurate and reliable
represents which form of information security?
a. Confidentiality
b. Availability
c. Integrity
d. Authentication
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38. Confidentiality
a. Is ensuring that collected information is available to authorized users.
b. Is ensuring that collected private information is protected and safeguarded.
c. Is ensuring the privacy of online shoppers.
d. Is ensuring that systems are in place to ensure that only legitimate individuals are
using systems.
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39. Southeast Asian countries represent opportunities for e-commerce growth due to
a. Spanish language websites.
b. Membership in ASEAN.
c. Global demand.
d. Internet economy.
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40. A new trend is that multinationals are using _______________ to their advantage.
a. Tall hierarchical web structures
b. Tacit knowledge
c. User Generated Content
d. None of the above
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ESSAY
1. What is e-commerce? What are the main types of e-commerce transactions? Discuss
some of the reasons why B2B transactions make up a significant percentage of current
e-commerce business?
3. What is a brick and mortar part of a company? What are some benefits of integrating
the brick and mortar part of an organization with their Internet business? Why do
some companies such as Barnes and Nobles still choose to have their Internet division
operate independently from their brick and mortar part?
4. What are some of the major factors a company needs to take into consideration when
setting up a global e-business? Why do companies with already established
international brick and mortar units have an advantage in setting up global e-business
compared to firms with no international presence?
5. What are some of the major factors to take into consideration when picking a country
for setting up an e-commerce business? Why do trading blocks such as Mercosur,
ASEAN, and the European Union present significant potential for e-commerce
businesses?
8. Discuss some of the technical capabilities that are needed for multinational e-
commerce.
9. Discuss some of the major problems companies face when they try to globalize their
Web sites. What can companies do to face these challenges?
10. What is e-commerce security? Discuss the four key aspects of information security.
What can a multinational do to ensure that its e-commerce system is secure?
MULTIPLE CHOICE
2. Inpatriates are
a. Employees who come from a different country where he/she is working.
b. Expatriate workers who come from neither the host nor the home country.
c. Local workers who come from the host country where the unit is located.
d. Employees from foreign country who work in the country where the parent
company is located.
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4. Expatriates are
a. Local workers who come from the host country where the unit is located.
b. Employees who come from a different country from where he or she is working.
c. The more talented local managers.
d. None of the above
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5. Expatriate workers who come from neither the host nor home country are
a. Host country nationals.
b. Parent country nationals.
c. Neither country nationals.
d. Third country nationals.
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7. All of the following are benefits that companies obtain by using expatriates EXCEPT
a. Receiving important strategic information.
b. Increased coordination and control of international operations.
c. Timely information on the local markets.
d. Reduced turnover for key international managers.
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10. Key expatriate success factors include all of the following EXCEPT
a. Professional or technical skill.
b. Experience in at least two cultures different from the assignment country.
c. Stress tolerance.
d. Favorable family situation.
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13. Which of the following is NOT true regarding low training rigor?
a. Low training rigor usually includes briefings concerning company operations.
b. Low training rigor usually lasts for a short period.
c. Low training rigor usually includes lectures and videos on the local culture.
d. Low training usually lasts over two months.
14. Which of the following is NOT one of the issues that make expatriate performance
appraisals difficult?
a. Unreliable data
b. Refusal of host company to provide performance information regarding expatriate
c. Time differences and distance separation
d. Complex and volatile environments
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16. The main objective of the balance sheet approach to international compensation is
a. To match home and host county purchasing power.
b. To make sure you reward international managers for their hardship.
c. To save costs in inexpensive countries.
d. To provide headquarters accountants with consistent information on salaries.
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17. Adjusting wages to local lifestyles and costs of living refers to which expatriate
compensation system?
a. The balance-sheet method
b. The host-based compensation system
c. The global pay system
d. The headquarters-based compensation system
AACSB Reflective thinking, HRM
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18. The use of worldwide job evaluations, performance appraisals methods, and salary
scales to determine pay is the
a. The global pay system.
b. The balance sheet approach.
c. The multi-local pay system.
d. The headquarters-based system.
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20. Difficulties that managers face in coming back to their home countries and
reconnecting with their home organizations is known as the
a. Repatriation problem.
b. Reverse culture shock.
c. Low home re-adaptation index.
d. Expatriation problem.
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21. According to the text, which of the following is NOT one of the strategies used to
allow successful repatriation of expatriates?
a. Provide a strategic purpose for the repatriation
b. Allow the expatriate to return when he/she is ready to do so
c. Provide training and preparation for the return
d. Establish a team to aid the expatriate
AACSB Reflective thinking, HRM
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22. Studies of women expatriates suggest that all of the following statements are true
about international assignments in traditional cultures EXCEPT
a. Women typically do not succeed in expatriate assignments.
b. Women have some challenges in international assignments.
c. Women have some advantages in international assignments.
d. Opportunities for women expatriates are expected to grow in global companies.
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23. The text suggests several strategies that US women may use to succeed in traditional
cultures. These include
a. Emphasize nationality, not gender.
b. Develop close contact with local government officials.
c. Not being overly aggressive in negotiation.
d. Proving that women can also be successful at international assignments.
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24. All of the following explain why there may be more international assignments for
women in the future EXCEPT
a. Legal and social pressures for equal opportunity in North America.
b. Acute shortage of men willing to take international assignments.
c. Globalization creates opportunities to hire skilled women from any country.
d. More federal funds to train women for international assignments.
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27. Host country nationals may have limited career development in a company with a (an)
a. Ethnocentric, Regio or polycentric HRM orientation.
b. Only an ethnocentric HRM orientation.
c. Regiocentric or global HRM orientation.
d. Only a polycentric HRM orientation.
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28. Using more local managers to reduce the costs of training expatriate managers is a
benefit usually associated with
a. A global HRM orientation.
b. A polycentric or regiocentric HRM orientation.
c. An ethnocentric HRM orientation.
d. A geocentric orientation.
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30. Extra money paid to expatriates for particularly difficult posting due to issues such as
high risk or poor living conditions is known as
a. Foreign service premiums.
b. Hardship allowance.
c. Relocation allowances.
d. Home-leave allowances.
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31. Which of the following statements is NOT TRUE regarding women expatriates
compared to male expatriates?
a. Women expatriates have more difficulty being taken seriously early in their
careers.
b. Women expatriates have more pressures to balance work and family compared to
male expatriates.
c. Women expatriates have poorer relational and communication skills than male
expatriates.
d. Women expatriates have more pressures to worry about their spouses than male
expatriates.
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32. Which of the following is NOT one of the strategies discussed in the text to help
repatriation of expatriates?
a. Provide a strategic purpose for the repatriation
b. Establish a team to help with the repatriation
c. Provide support for the expatriate and family on reentry
d. Provide vacation to help the expatriate get readjusted at home
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33. The two aspects to consider when evaluating the possibility of hiring expatriates are
the high cost and
a. Skills in multinational management.
b. High success rate.
c. High failure rate.
d. None of the above
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34. All of the following are possible steps that can be taken by multinationals to remove
barriers faced by female expatriates EXCEPT
a. Provide opportunities for interpersonal networks with other female expatriates.
b. Provide mentors.
c. Identify and remove sources of barriers.
d. Provide more appropriate performance appraisal systems for female expatriates.
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37. Employees who are sent on frequent but short-term international assignments are
known as
a. Flexpatriates.
b. Inpatriates.
c. Shortpatriates.
d. Expatriates.
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39. Which of the following best describes emotional intelligence, one of the factors key to
the success of an expatriate?
a. The ability to adapt to new and strange situations
b. The motivation to accept international assignments
c. The ability to being aware of oneself and to understand and relate to others
d. None of the above
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ESSAY
1. Identify the components of HRM and describe how they differ for IHRM.
2. Describe the types of nationals employed by multinational firms. Explain when each
type would be used.
3. Discuss and contrast the four IHRM orientations. Describe how each can support a
multinational strategy.
4. Contrast the positive and negative issues for using short term flexpatriates and
international cadre members as expatriate managers. Consider both the organization's
perspective and the career implications for the individual manager.
5. Discuss the options available for expatriate compensation. Consider how these
options might be used for a transnational and a multidomestic company.
6. Discuss how multinational companies can deal with the repatriation problem. Why is
it necessary to deal with this issue?
7. What are some advantages women have in expatriate positions? Discuss some
challenges that are faced by women in international assignments.
8. Discuss any three of the key expatriate success factors and their implications for
selection.
Chapter 12 HRM in the Local Context: Knowing When and How to Adapt
MULTIPLE CHOICE
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3. An abundant level of iron ore deposits in a country represents which of the following?
a. Country institutions
b. Natural factor conditions
c. Induced factor conditions
d. Resource pool
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5. The US belief in the benefits of open and public advertising reflects the
a. US individualistic cultural values.
b. US preference for in-group members.
c. US collectivist cultural values.
d. US preference for hiring friends and relatives.
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10. The practice of recruiting friends or relatives of those already employed is which form
of recruiting?
a. Front gate recruiting
b. Walk-ins
c. Backdoor recruiting
d. Internal recruiting
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11. All of the following are true about US training and development practices EXCEPT
a. The most popular training topics are management development and computer
training.
b. Most training programs reach a majority of the workers.
c. Because of global competition, demand for training will increase.
d. There are increased pressures on businesses to supplement basic educational
training.
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16. All of the following are true about the US performance appraisal system EXCEPT
a. It represents cultural values that espouse links among individual rights, duties, and
rewards.
b. It attempts to be rational, logical, and legal.
c. It focuses primarily on the ability to function well in groups.
d. Research shows that it works well in all national contexts.
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17. Which of the following is most true about the typical US compensation system?
a. Most companies take into account external and internal factors to determine
compensation.
b. Most companies develop formal and systematic policies to determine
compensation levels.
c. Raises in pay are determined mostly by merit.
d. All of the above are true.
AACSB Reflective thinking, HRM
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18. Which of the following describes one potential way a Japanese supervisor can
communicate negative feedback for poor work performance to his/her subordinate?
a. By simply ignoring the subordinate
b. With formal appraisal systems
c. By discussing the poor performance openly
d. By providing the negative feedback in writing
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22. All of the following are true about unions in England, Germany, France, and the U.S.
EXCEPT
a. British unions developed with strong government interference.
b. German unions developed in harmony with the government and corporations.
c. French unions started much later and developed more slowly than did British or
German unions.
d. US union membership has declined significantly since the 1940s.
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26. Which of the following is FALSE about recruitment and selection processes in
collectivist cultures?
a. Companies prefer to hire directly out of school.
b. There is a preference for family and friends.
c. Personal information is considered important for selection.
d. Technical skills are considered crucial for selection.
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27. The group of employees, found in Germany, that shares plant-level responsibility with
managers over issues such as working conditions is
a. An enterprise union.
b. A craft union.
c. A works council.
d. An ideological union.
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28. Major components of the legal requirements for a US performance appraisal system
include
a. Evaluations must relate clearly to the job.
b. Evaluations are not required when all workers are the same gender.
c. All testing must be quantitative.
d. Older workers need not have performance appraisals.
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31. All of the following statements regarding Induced-factor conditions resources are true
EXCEPT
a. Induced-factor conditions resources arise from cultural and institutional pressures.
b. Good examples of induced factor conditions are the high cultural value placed on
education in many Asian societies creating a well-trained workforce.
c. Induced-factor conditions include those resources that occur naturally such as coal
and gas reserves.
d. All of the above are true.
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32. Which of the following is not one of the factors affecting national differences in
human resource management as discussed in the text?
a. Types of jobs favored by applicants
b. Education and training of the labor pool
c. Laws and cultural expectations regarding fair wages and promotion criteria
d. All of the above are factors
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33. Which of the following is NOT one of the factors determining the resource pool of a
country as discussed in the text?
a. The quantity, quality, and accessibility of raw material
b. The quantity, quality and cost of personnel available
c. The training and development system available
d. The cost and amount of capital available to firms
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35. All people in a particular industry, regardless of occupational group is most likely
represented by
a. An enterprise union.
b. A local union.
c. A craft union.
d. An industry union.
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37. The measure that considers the proportion of workers who belong to unions is known
as
a. Union-membership scope.
b. Craft union density.
c. Union-membership density.
d. Trade union density.
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38. A union representing all workers belonging to one religious orientation in a company
is known as
a. An ideological union.
b. A craft union.
c. A local union.
d. An ideological union.
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39. Which of the following statements about management development in the U.S. is
false?
a. Management development in the U.S. is the responsibility of the firm rather than
the individual.
b. U.S. companies can rely on senior-level managers to identify promising
candidates for management development and training.
c. U.S. companies rely on direct assessment approaches such as assessment centers
to identify individuals with managerial potential.
d. All of the above is true.
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ESSAY
1. Describe and discuss the major factors in the national context that affect a nation's
HRM practices.
2. What are some of the recruitment strategies used by U.S. companies? Why is open
and public advertisements seen as the most effective recruitment strategies? Why
would such strategies not work in more collectivist cultures?
4. You have been given the assignment to set up a training program for first level
managers in a formerly government-owned eastern European company. How would
you go about developing a curriculum? Why?
5. Compare and contrast the appraisal and compensation systems in the U.S. and more
collectivist culture nations. Discuss legal and cultural problems that multinational
managers might face using a collectivist approach to these systems in the U.S. and
using a U.S. approach in more collectivist cultures.
6. Contrast the different types of unions and discuss the challenges each type may pose
to a multinational manager.
7. Define and describe union membership density as it has been historically and is now.
Why is it important to multinational managers?
1. International negotiation
a. Is the process of making business deals across national and cultural boundaries.
b. Is less complex than domestic negotiation.
c. Can be successful regardless of ease of communication.
d. All of the above
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5. Languages in which people state things directly and explicitly where the words
provide most of the meaning are
a. Moral languages.
b. High context languages.
c. Low context languages.
d. None of the above
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8. Nonverbal communication
a. Is part of face-to-face communication.
b. Occurs through such things as body posture, facial expression, hand gestures, and
the use of personal space.
c. May also create (purposefully or not) situations that make a negotiator
uncomfortable.
d. All of the above
AACSB Communication, Leadership principles
PTS: 1
9. Kinesics is
a. Communicating through body movements.
b. A form of verbal communication.
c. Focuses on how people use space to communicate.
d. The type of touching that is deemed appropriate in different cultures.
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10. Proxemics
a. Refers to the use of body movements to communicate.
b. Represents the degree of formality in communication styles.
c. Means communicating with and without words.
d. Focuses on how people use space to communicate.
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11. Touch
a. Is related to proxemics and is a basic form of human interaction.
b. Refers to communication through body movements.
c. Represents the degree of directness in communication.
d. Is similar to kinesics.
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12. Attribution
a. Is the process by which we interpret the meaning and intent of spoken words or
nonverbal exchanges.
b. Is communication through body movements.
c. Focuses on how people use space to communicate.
d. A form of verbal communication.
AACSB Communication, Leadership principles
PTS: 1
13. When communicating with nonnative speakers, which of the following would make
communication harder and less accurate?
a. Strictly following basic rules of grammar
b. Using words that have numerous alternative meanings
c. Using slang
d. Using most common words with their most common meanings
PTS: 1
14. Gathering of extensive information on the negotiation issues, on the setting in which
the negotiation will take place, and on the firm and people involved occurs in which
stage of the steps in international negotiation?
a. Preparation
b. Building the relationship
c. Persuasion
d. Concession
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16. All of the following are true about the steps in the Negotiation Process EXCEPT
a. Although each international negotiation is unique and may combine two or more
steps or repeat some, the negotiation process involves five steps leading to the
final step, an agreement.
b. The negotiation steps include preparation, building the relationship, exchanging
information and the first offer, persuasion, and the agreement.
c. Most experts agree that the process of international negotiation includes several
steps.
d. All of the above are true.
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17. At the __________ stage in the negotiation, both parties exchange the specifics of
their needs for the agreement.
a. Exchanging Information and the First Offer
b. Building the relationship
c. Persuasion
d. Concession
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18. All of the following are true about the Exchanging Information and the First Offer
Step of the International Negotiation process EXCEPT
a. Both parties exchange information on their needs for the agreement.
b. Parties exchange information that is task-related.
c. Both sides usually present their final offer.
d. Both sides present offers that often differ from what they hope to achieve
eventually.
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19. In the _____ stage, each side in the negotiation attempts to get the other side to agree
to its position.
a. Exchanging Information and the First Offer
b. Building the relationship
c. Persuasion
d. Concession
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20. All of the following is true about the persuasion stage EXCEPT
a. Each side in the negotiation attempts to get the other side to agree to its position.
b. It is the heart of the negotiation processes.
c. Numerous tactics are available to international negotiators to persuade the other
side.
d. The emphasis and mix of tactics do not vary by the cultural background of the
negotiators.
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22. Deliberate deception, one example among some common ploys in international
negotiations, refers to
a. Negotiators presenting flagrant untruths either in the facts they present or in their
intentions for the negotiation.
b. Negotiators waiting to the last minute before the international negotiation team
plans to go home.
c. Negotiators making an agreement then reveal that it must be approved by senior
managers or the government.
d. One negotiator acting agreeable and friendly while his or her partner makes
outrageous or unreasonable demands.
PTS: 1
23. Negotiators who make an agreement and then reveal that it must be approved by
senior managers or the government is an example of which type of dirty trick?
a. Escalating authority
b. Good guy, bad guy routine
c. You are wealthy and we are poor
d. Old friends
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24. If negotiators are using deliberate deception as a dirty tricks, the best way to deal with
the deception is
a. Not to make any concessions.
b. To ignore the ploy and focus on the agreement.
c. To not reveal your negotiation plans.
d. To point out directly what you believe is happening.
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25. All of the following are true about the final agreement EXCEPT
a. The final agreement is the signed contract, agreeable to all sides.
b. Successful negotiations do not necessarily result in the final agreement.
c. The final agreement must be consistent with the chosen legal system or systems.
d. All of the above are true.
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27. All of the following are true about the holistic concession-making approach EXCEPT
a. Is very popular in Asian cultures.
b. Each side makes very few, if any, concession during discussions of each point in
potential agreement.
c. Implies that concession making begins only after all participants discuss all issues.
d. Implies that negotiators expect each side to give and take on individual issues in
sequence.
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29. __________ negotiators search for possible win-win situations where the outcome of
the negotiation is mutually satisfactory to both sides.
a. Problem-solving
b. Concession-making
c. Competitive
d. None of the above
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30. All of the following are personal characteristics of the successful international
negotiator EXCEPT
a. Be a competitive negotiator.
b. Can tolerate ambiguous situations.
c. Has stamina, good sense of humor.
d. Is flexible, creative, curious, and can empathize.
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31. Olfactics
a. Is the use of smells as a means of nonverbal communication.
b. Refers to communication through eye contact or gazing.
c. Communication through the use of space.
d. Communication through body contact.
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33. Which of the following is NOT one of the suggestions for proper use of interpreters?
a. Spend time with the interpreter so that he/she can understand your accent.
b. Insist on minimization of interruptions and have the interpreter translate after you
end each statement.
c. Go over technical and other complex issues with your interpreter.
d. Request that your interpreter apologizes for your inability to speak the local
language.
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34. Which phase of the negotiation process consists of an evaluation of the success of the
completed negotiation?
a. The post relationship building phase
b. The agreement phase
c. The post agreement phase
d. The performance feedback phase
35. Which one of the following is NOT one of the personal success characteristics of
successful international negotiators as discussed in the text?
a. Tolerance of ambiguity and curiosity
b. Focus on achieving negotiation goals without making concessions
c. Flexibility, creativity, and sense of humor
d. All of the above are personal success characteristics
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36. Haptics
a. Refers to communication through body contact.
b. Refers to communication through smell.
c. Refers to communication through eye contact.
d. None of the above
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37. Which of the following represents one possible solution to the Old Friends" dirty
trick?
a. Ignore the ploy and focus on mutual benefits.
b. Keep a psychological distance that reflects the true nature of the relationship.
c. Walk out of negotiations.
d. Reveal when you plan to leave negotiations.
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ESSAY
1. Discuss the steps in the negotiation process. Which step is at the heart of the process
and why?
2. Compare and contrast the two basic negotiation strategies. Which would you prefer to
use, and why?
3. What is the difference between a high- and a low-context language? Discuss some of
the potential problems a person with a low-context language may face when
negotiating with people from a high-context language.
6. Identify some cultural differences in body movements (kinesics). How might these
influence a negotiation session?
7. Identify and describe some common dirty tricks in international negotiation. What can
be done to counteract these dirty tricks?
MULTIPLE CHOICE
1. People's expectations from work (such as work providing necessary income or work
providing satisfactory experiences) refer to
a. Functions of work.
b. Work centrality.
c. Importance of work.
d. Work motivation.
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2. Conclusions from the World Values Survey and the European Values Survey on
functions of work reveal that
a. People across the world assign the same degree of importance to work functions.
b. People across the world rate income as the most important work function.
c. People from different nations do not assign the same magnitude of importance to
work functions.
d. Workers saw the most important function of work as providing contact with other
people.
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6. All of the following statements about work in different countries are true EXCEPT
a. Regardless of country, money has the highest priority for why people work.
b. All people hope to receive certain benefits from work.
c. In some societies, work is very central and absorbs more of a person's life.
d. People from different countries have different goals for their jobs.
AACSB Reflective thinking, Motivation concepts
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7. Motivation refers to
a. A feeling of deficit or lacking.
b. Goal-directed behaviors to satisfy human needs.
c. The use of work to satisfy many needs.
d. Consequences of a person's behavior that discourages the behavior.
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8. Reactions to a person's behavior that encourage the person to continue the behavior is
a. Goal-directed behavior.
b. Punishment.
c. Reinforcement.
d. Need.
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9. The national context affect motivation through all of the following EXCEPT
a. Cultural values and norms.
b. Social institutions that lead to different types of organizations.
c. The existence of strong organizational cultures.
d. National differences in work centrality.
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11. All of the following statements about Maslow's hierarchy of needs are true EXCEPT
a. People have six basic type of needs.
b. People have basic needs that follow a hierarchy from lower level to higher level
needs.
c. People first seek to satisfy lower level needs and then move to higher level needs.
d. All of the above are true.
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12. All of the following statements are true about hygiene factors EXCEPT
a. Hygiene factors bring people to neutral states of motivation.
b. Hygiene factors include good benefits and good working conditions.
c. Hygiene factors can motivate workers similarly to motivating factors.
d. Hygiene factors include those characteristics that allow people to fulfill lower
level needs.
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13. Which of the following motivation theory suggests that only some people have the
need to win in competitive situation or to exceed excellence standards?
a. Expectancy theory
b. Motivator-hygiene theory
c. Achievement-motivation theory
d. Reinforcement theory
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15. Which types of motivation theories explain motivation arising from satisfaction of
needs and values combined with an individual's beliefs regarding the work
environment?
a. Needs theories
b. Work centrality theories
c. Process and reinforcement theories
d. Work functions theories
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18. The theory based on the idea that employees compare their inputs and outcomes to
other persons in the work setting to determine if they are being fairly treated is
a. Needs difference theory.
b. Expectancy theory.
c. Equity theory.
d. Reinforcement theory.
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22. All of the following are true about the operant-conditioning model EXCEPT
a. Behavior is a function of its consequences.
b. People will stop behaviors that have unpleasant consequences.
c. People will continue behaviors they like irrespective of the nature of consequence.
d. People will continue behaviors that have pleasant consequences.
AACSB Reflective thinking, Motivation concepts
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25. All of the following statements about the US job characteristics model are true
EXCEPT
a. The model suggests that work is more motivating when managers enrich core job
characteristics.
b. The model suggests that enriching job characteristics is motivating for all types of
individuals.
c. The model assumes that one critical state for motivation to occur is if the worker
believes his/her work to be meaningful.
d. The model assumes that only some people will respond well to enriched jobs.
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27. A crucial difference between the US job characteristics model and the European STS
approach is
a. The US model focuses on core job characteristics, while the European model
focuses on tasks.
b. The US model focuses on individuals, while the European model focuses on work
teams.
c. The US model focuses on work teams, while the European model focuses on
individuals.
d. There are no differences between the US job characteristics model and the
European STS approach.
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30. In individualistic cultures, performance drops off with the use of teamwork because
a. Of social loafing.
b. Workers believe that the group will make up any slack in their personal efforts.
c. Workers do not feel responsible for group outcomes.
d. All of the above
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31. A manager gives bonuses to high performing foreign employees hoping that they will
continue performing at a high level. This manager is using which motivational
principle?
a. Extinction
b. Goal-directed
c. Reinforcement
d. Punishment
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32. An expatriate finds that one of his subordinates regularly jokes about a minority group
in the country. She decides to ignore the jokes hoping that the subordinate will
eventually stop such jokes. Which aspect of reinforcement theory is she using?
a. Avoidance
b. Extinction
c. Punishment
d. Operant conditioning
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34. Which of the following is NOT one of the reasons discussed to explain why people
engage in social loafing in individualistic cultures?
a. When working in groups, people in individualistic cultures often feel less pressure
to work and less responsible for work outcomes.
b. Workers in groups in individualistic cultures often believe that the group will
make up any slack in their personal efforts.
c. People in individualistic cultures often give priority to their own work over the
group.
d. All of the above are reasons to explain social loafing in individualistic cultures.
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35. Which of the following theories is NOT considered as one of the needs theories?
a. Equity theory
b. Achievement motivation theory
c. Maslow's hierarchy of needs
d. Motivator-hygiene theory
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36. The need to maximize personal achievement refers to which type of need in Maslows
hierarchy of needs
a. Physiological needs.
b. Self esteem needs.
c. Self actualization needs.
d. Security needs.
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38. According to the text, those who are underrewarded are likely to
a. Return their rewards.
b. Reduce their inputs.
c. Increase their inputs.
d. None of the above
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39. According to equity theory, equity conscious people are most likely those
a. Who behave consistently with equity theory.
b. Who are more likely to tolerate situations where they are underrewarded.
c. Are more likely to experience satisfaction if underrewarded.
d. None of the above
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40. Which of the following refers to the aspect of a job where the person can complete a
whole piece of work from beginning to end?
a. Feedback
b. Task significance
c. Task variety
d. Task identity
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ESSAY
3. Describe Vroom's Expectancy Theory. What are some implications for multinational
management?
4. What are the three major principles of allocating rewards? Discuss how each principle
works. Why is equality preferred in more collectivistic cultures while individualistic
cultures favor equity?
6. Explain why performance drops off when teams are used in individualistic cultures.
Explain the significance of social loafing in the process. How can social loafing be
reduced?
7. Compare and contrast the Job Diagnostics Design Approach to the European
Sociotechnical Systems Approach to job design.
MULTIPLE CHOICE
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4. The idea that leaders are born with unique characteristics that make them different
form ordinary people is the
a. Task centered leadership theory.
b. A contingency theory of leadership.
c. The great-person theory.
d. The leadership behaviors theory.
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5. All of the following are true about trait leadership theories EXCEPT
a. Using trait theory, one can conclude that successful business, political, religious,
and military leaders were born with unique characteristics that made them quite
different from ordinary people.
b. Leadership theorists identified an exact list of leadership traits.
c. The great person theory of leadership assumes that leaders are born.
d. All of the above are true.
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6. The type of leadership that includes behaviors that focus on completing tasks by
initiating structure is known as
a. Task-centered leadership.
b. Person-centered leadership.
c. Autocratic leadership.
d. Democratic leadership.
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7. Person-centered leaders
a. Focus on completing tasks by initiating structure.
b. Give specific directions to subordinates so that the subordinates can feel
comfortable completing tasks.
c. Show a concern for subordinates feelings and taking subordinates ideas into
account.
d. Make all major decisions themselves.
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8. Leaders who do not allow employees to share in the decision- making are
a. Democratic leaders.
b. Autocratic leaders.
c. Participative leaders.
d. Consultative leaders.
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9. The leadership style that falls midway between autocratic and democratic styles is the
a. Person-centered leader.
b. Subordinate-oriented leader.
c. Consultative leader.
d. Task-oriented leader.
10. All of the following are true about the Japanese Performance-Maintenance (PM)
theory of leadership EXCEPT
a. The Performance-Maintenance (PM) theory of leadership represents a Japanese
perspective on leadership.
b. PM theory has two dimensions, the performance function (P) and the maintenance
function (M), which are the basic aspects of the theory.
c. The maintenance function (M) is similar to task-centered leadership.
d. PM theory suggests that groups perform best when both P and M are present.
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12. All of the following are true about Fiedler's Leadership Effectiveness theory EXCEPT
a. Fiedler proposed that managers tend to be either task or person-centered leaders.
b. The success of leadership styles depends on three characteristics of the work
situation.
c. Effective leadership occurs when the leadership style matches the situation.
d. Task-centered leadership works best in mixed conditions.
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14. Which of the following is NOT one of the leadership styles of the path-goal theory of
leadership?
a. Directive style
b. Supportive style
c. Task-oriented style
d. Participative style
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16. Key leadership suggestions based on path-goal theory include all of the following
EXCEPT
a. When subordinates have high achievement needs, successful leaders adopt the
achievement-oriented style.
b. When subordinates with have high social needs, they respond best to the
supportive leadership style.
c. When the subordinate's job is unstructured, the theory suggests using a supportive
style.
d. When the subordinate's job is highly structured, the theory suggests using
instrumentality.
PTS: 1
17. The National Context Contingency Model of Leadership
a. Assumes that successful leaders need not modify their behaviors or develop
particular leadership traits to succeed in different nations.
b. Includes two contingencies: the characteristics of subordinates and the nature of
the work setting.
c. Includes factors related to the national culture and social institutions.
d. Only B and C are correct
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18. All of the following are true about leadership traits in various national settings
EXCEPT
a. People from different cultural backgrounds prefer certain traits.
b. In Germany, a desired leadership trait is modesty.
c. In France, leaders are considered different based on social class distinctions
between cadres and non-cadres.
d. In the US, assertiveness is valued as a leadership trait.
PTS: 1
19. U.S. managers' favored influence tactics include the following EXCEPT
a. Assertiveness.
b. Reasoning.
c. Aggressiveness.
d. Bargaining.
PTS: 1
20. Building support for ideas and networking and using friendships involve the use of
which influence tactics?
a. Assertiveness
b. Friendliness
c. Sanctioning
d. Coalitions
AACSB Reflective thinking, Leadership principles
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22. When managers use rewards or punishment to influence their subordinates, they are
engaging in
a. Rewards oriented leadership.
b. Transformational leadership.
c. Transactional leadership.
d. Charismatic leadership.
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24. Behaviors and characteristics of transformation leaders include the all of the
following EXCEPT
a. Articulates a vision.
b. Breaks from the status quo.
c. Uses rewards or punishments to influence subordinates.
d. Provides goals and a plan.
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26. Explaining a person's behavior based on factors outside the person and beyond the
person's control (e.g., natural disasters, illness, faulty equipment, etc.) is a/an
a. Internal attribution.
b. External attribution.
c. Fundamental attribution error.
d. Attribution effect.
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27. According to the text, if a leader perceives the cause of a subordinate's behavior based
on an internal attribution, then most leaders will
a. Tend to correct or reward the worker.
b. Modify the work environment.
c. Do nothing.
d. Use transformational leadership.
PTS: 1
28. The fundamental attribution error
a. Is a tendency for managers to believe that most people act because of internal
motivations.
b. Is a tendency for managers to believe more often that people behave in certain
ways because of outside factors, such as poor working conditions.
c. Occurs most often in Asian cultures.
d. Concerns primarily external attributions.
PTS: 1
29. According to the text, all of the following statements about leadership styles in
different cultures are true EXCEPT
a. In high power distance countries, leaders generally behave more autocratically.
b. In high uncertainty avoidance national cultures both leaders and subordinates
often feel more comfortable when the leader initiates structure.
c. In low uncertainty avoidance countries leaders tell subordinates exactly what to
do.
d. In high power distance countries, person-centered leadership works best in large
groups.
PTS: 1
30. The recommended leadership style for a country low on power distance and low on
uncertainty avoidance is
a. The democrat - supportive, participative, and achievement.
b. The master - directive and supportive.
c. The professional- directive, supportive, and participative.
d. The boss- directive.
PTS: 1
31. Which of the following statements is NOT TRUE regarding leadership in various
cultures?
a. In countries with high power distance, subordinates expect leaders to be more like
them.
b. Strong masculinity norms often lead to the acceptance of more authoritarian
leaders.
c. In countries with high uncertainty avoidance, subordinates expect detail and
directions to perform their tasks.
d. All of the above are true.
PTS: 1
32. A multinational manager discovers that his leadership style is more effective when he
displays visible sign of status (e.g chauffeur driven cars) and he behaves as an
authoritarian leader. The manager is most likely leading in which of the following
cultures?
a. A feminine culture
b. A high uncertainty avoidance culture
c. A low power distance culture
d. A high power distance culture
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34. An expatriate finds that if she gives specific directions to her subordinates,
productivity is much higher. Which leader behavior is she displaying?
a. Consultative leader behavior
b. Democratic leader behavior
c. Task-centered leader behavior
d. Person-centered leader behavior
PTS: 1
35. According to the Global Leadership and Organizational Behavior Effectiveness
(GLOBE) study, which of the following leadership styles represents the leader who is
modest and has a compassionate orientation?
a. Team-oriented leader
b. Self-protective leader
c. Participative leader
d. None of the above
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37. According to the Global Leadership and Organizational Behavior (GLOBE) studies,
which of the following leadership style characterizes a leader who is self-centered,
status conscious and procedural?
a. The autonomous leader
b. The participative leader
c. The humane style leader
d. The self-protective leader
PTS: 1
38. Which of the following statements regarding the autonomous leader is FALSE
according to the Global Leadership and Organizational Behavior (GLOBE) studies?
a. Autonomous leaders are independent, individualistic and unique.
b. Autonomous leaders act in self-interested manner.
c. Germanic and Eastern European countries have the highest scores on autonomous
leadership.
d. Autonomous leadership is seen as very effective in most cultures.
AACSB Reflective thinking, Leadership principles
PTS: 1
39. Which of the following examples characterize the use of assertiveness as an influence
tactics?
a. Example behaviors include being friendly and humble.
b. Example behaviors include using logical arguments.
c. Example behaviors include using threats and punishments.
d. Example behaviors include being forceful and directive.
PTS: 1
40. The recommended leadership style for a country high on power distance and low on
uncertainty avoidance is
a. The boss - directive.
b. The professional - directive, supportive and participative.
c. The master - directive and supportive.
d. The democrat - supportive and participative.
PTS: 1
ESSAY
1. Define leadership. How might people from different national cultures define
leadership? What are the implications of these definitions for multinational leaders
working in these countries?
2. Pick a national culture with which you are familiar. For this culture, identify
leadership traits and behaviors that would be detrimental to organizational
effectiveness.
6. Discuss whether transformational leadership qualities are culture free. That is, are
transformational leaders similar regardless of cultural background or are there
different types of transformational leaders for each cultural group?
7. What is attribution theory? How can leaders use attribution theory to help them be
good leaders?
8. What is the fundamental attribution error? What are some implications for leadership
in multinationals?