1) 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
2) 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
3) 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
4) International sales intensity represents
a. A significant size barrier to internationalization
b. The amount of international sales as a proportion of total sales
c. The amount of local sales as a proportion of international sales
d. Is more relevant for larger businesses
5) Weaknesses are
a. Lack of distinctive capabilities, resource, and skills that leads to competitive
disadvantage compared to competitors
b. Unfavorable conditions in a firm’s environment
c. Relevant to both the internal and external environment of companies
d. All of the above
6) 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
7) 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
8) Which of the following statements about globalization is false?
a. Globalization is a simple evolutionary process
b. Not all economies of the world are benefiting equally from globalization
c. Terrorism, wars and SARS has limited and even reversed the effects of globalization
d. All of the above statements are false
9) 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
10) 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
11) 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
12) 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
13) 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
14) Setting goals for work groups is recommended in
a. Individualistic cultures
b. Collectivist cultures
c. High power distance cultures
d. Goal setting for groups works equally well in all cultural settings
15) Global companies usually seek to
a. Provide unique products for all countries of the world
b. Take advantage of different factor costs among countries
c. Manufacture their products in every country
d. Focus only on downstream activities in the value chain
16) 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
17) When multinationals pay low wages or use child labor, they often receive
a. Support and praise
b. Imprisonment
c. Negative publicity
d. Social responsibility
18) 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
19) 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
20) The sequential approach to concession-making
a. Is very popular in Asian cultures
b. Is similar to the holistic approach
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
21) Business level strategies
a. Include only the generic strategies
b. Pertain to the operation of multiple businesses
c. Are concerned with how single business companies choose strategies
d. Are concerned with how companies choose their mixtures of different businesses
22) 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
23) 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
24) International franchising
a. Is a comprehensive licensing agreement where the franchisor grants to the franchisee
the use of a whole business operation
b. When multinationals make a project fully operational and train local managers and
workers before the owner takes control
c. The use of intermediaries or go-between firms to provide the knowledge and contacts
necessary to sell overseas is
d. None of the above
25) Moral languages include all of the following EXCEPT
a. Virtue and vice
b. Self-control
c. Avoiding harm
d. Being ethical
26) 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
27) 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
28) Companies with ethnocentric HRM orientations
a. Use similar pay and benefit packages worldwide
b. Select home country nationals for key positions
c. Emphasize extensive training in the company culture before allowing a manager to
go international
d. Often use international experience as a technical qualification for high level
management
29) Corporate level strategies
a. Are similar to the generic strategies
b. Pertain to the operation of corporate divisions
c. Are concerned with how single business companies choose strategies
d. Are concerned with how companies choose their mixtures of different businesses
30) Contrast the different types of unions and discuss the challenges each type may
pose to a multinational manager.
31) Discuss some of the things multinational managers can do to build and sustain trust
and commitment.
32) Discuss equity theory. What are the implications for multinationals?
33) Discuss some of the advantages that the Internet can offer small businesses when
going international.
34) What are some advantages of a worldwide product structure over a worldwide
geographic structure? What type of company would most likely choose each type?