1) Sales and dealing with distribution channels refer to _________ activities in the
value chain.
a. Upstream
b. Support
c. Secondary
d. Downstream
2) 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
3) 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
4) 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
5) 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
6) Utilitarianism, as a form of ethical philosophy,
a. Argues that what is good or moral comes from acts that produce the greatest good for
the greatest number of people
b. Argues that actions by themselves have a good or bad morality regardless of their
consequences
c. Is one form of deontological ethical theory
d. Is a moral language proposed by Donaldson
7) 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
8) According to the text, a fundamental dilemma faced by all multinationals is
a. The form of competitive strategy they should use
b. How much they emphasize responding to differences in all the markets they operate
c. How to fight their rivals
d. None of the above
9) When industrialization is outward oriented, foreign exchange is
a. Encouraged and exporting is promoted
b. Discouraged and exporting is not favored
c. Not welcomed
d. Used to fund governments in power
10) 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
11) 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
12) .A global product or service is
a. Adapted for each country’s unique needs
b. A similar product or service for all customers throughout the world
c. A product or service that requires bilingual customers
d. Products developed for use outside the country
13) 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
14) 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
15) 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
16) Some of the detrimental effects of social loafing can be reduced if
a. Individuals are held responsible for performance
b. Groups are held responsible for performance
c. The group leader is held responsible for performance
d. None of the above
17) Which of the following statements regarding selection in collectivistic cultures is
FALSE?
a. In selecting employees, employers prefer trustworthiness and loyalty
b. Older male recruits are usually preferred because they can be easily molded to fit the
companys culture
c. Selection often relies on referrals from family or friends
d. All of the above are TRUE
18) The two forms of risk discussed in the text include
a. Exchange rate risk and corruption risk
b. Business risk and social risk
c. Sales risk and employment risk
d. Economic and political risk
19) 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.
20) The Japanese system of life-time or permanent employment
a. Applies more to workers than to managers
b. Is easier to implement in smaller Japanese companies
c. Is likely to produce a satisfied and less motivated Japanese workforce
d. Applies equally to men and women
21) Expectancy theory proposes that
a. Motivation is solely determined by the satisfaction of needs
b. Motivation is determined by the workers’ perceptions of fairness at work
c. Motivation is a result of an individual’s preferences and belief that his/her effort will
lead to some valued results
d. Motivation is a purely automatic process
22) Favorable conditions in a firm’s external environment are known as
a. Strengths
b. Capabilities
c. Opportunities
d. Distinctive competencies
23) 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
24) According to the text, which of the following participation strategies do small
businesses emphasize?
a. Importing
b. Licensing
c. Foreign direct investment
d. Exporting
25) 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
26) Ethical convergence
a. Is similar to ethical relativism
b. Refers to basic universal moral principles
c. Is a form of ethical universalism
d. Refers to the growing pressures for multinational companies to follow the same rules
in managing ethical behavior and social responsibility
27) 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
28) Emerging markets include
a. OECD countries
b. Brazil, China, Russia, India
c. Korea, Japan and USA
d. Hungary, Poland, Slovakia
29) The worldwide geographic structure is usually considered best to implement a
_____ strategy.
a. Multidomestic or regional
b. Transnational
c. International
d. Indirect exporting
30) Major drawbacks of licensing include
a. The risk of losing the capital investment
b. The risk of the local government changing international trade policies
c. The loss of control and the possibility of creating a new competitor
d. All of the above
31) 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
32) 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
33) 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
34) 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
35) What are the characteristics of a good partner in a strategic alliance? Why do these
partner traits help make a strategic alliance successful?
36) Discuss the three-tiered ideal organizational structure of a multinational
e-corporation. What are some of the essential functions served by the headquarters of
the multinational e-corporation? Why should company headquarters not be responsible
for local strategies?
37) Describe several forms of nonverbal communication. If you were a negotiator, how
might you prepare for differences in these forms?
38) What is related diversification? When would you expect related diversification to be
more profitable than unrelated diversification?
39) Discuss the steps in the negotiation process. Which step is at the heart of the
process and why?
40) What are control systems? Pick two control systems and describe how they work.
41) Do laws always reflect a communitys ethics? Give an example to explain your
answer.
42) How is feedback on performance given in collectivist societies, especially for
managers?