55) Which of the following is true about exporting goods?
A) Exporting is not a popular entry strategy because of its high risks and capital requirements.
B) Exporting requires establishing operations in the country and a large capital investment.
C) An export strategy most likely provides big returns because of shared costs with local firms.
D) An exporting firm must establish a means of marketing and distributing its goods within the
country.
56) A foreign company can enter a new market via ________ agreements that allow a local firm
in the new market to manufacture and distribute the foreign company’s product.
A) exporting
B) importing
C) licensing
D) marketing
57) Refer to the scenario above. Which of the following best supports the firm’s decision to use
licensing as a strategy to enter the Chinese market?
A) Even though the company is experiencing profits, it cannot afford to take risks while
investing in a foreign market.
B) Cocoabeans has little control over the sales of its products in the U.S. and is looking for the
support of a local firm.
C) The firm has partnered with a local firm on mutually profitable terms.
D) Cocoabeans has purchased a local firm to market its product in China because it does not
want to give full rights to anyone else.
58) Which of the following is likely to be an advantage for the licensor in a licensing
arrangement?
A) low cost and little risk
B) major returns on investment irrespective of sales
C) strict control over the use of its product and brand name
D) low royalty percentages
59) ________ are cooperative arrangements between two firms in which they agree to share
resources to accomplish a mutually desirable goal.
A) Strategic alliances
B) Licensing arrangements
C) Cross-border acquisitions
D) Wholly-owned subsidiaries
60) Chucks’ Eggs is a company that distributes eggs in Latin America and is planning to enter the
North American market. As the risks are greater when entering new markets, Chucks’ decides to
join hands with another firm that has mutually desirable goals. This way, they can share the costs
and have access to each other’s resources. Which of the following ways is Chucks’ implementing
to enter a new market?
A) exporting
B) creating a strategic alliance
C) licensing
D) purchasing a local firm
61) A foreign firm can enter a new international market by using a(n) ________ to purchase a
local firm in that market.
A) strategic alliance
B) licensing agreement
C) cross-border acquisition
D) exporting strategy
62) Which of the following is a challenge associated with cross-border acquisitions?
A) little control over the product
B) increased costs of transportation
C) integration of two previously independent companies
D) complexity in launching
63) When a company ________ a foreign country, it makes a direct investment to establish a
business that it solely owns and controls there.
A) creates a new, wholly-owned subsidiary in
B) enters into a licensing arrangement with
C) exports goods to
D) purchases a local firm to enter
64) A ________ is often called a “Greenfield venture.”
A) strategic alliance
B) licensing arrangement
C) wholly-owned subsidiary
D) cross-border acquisition
65) A ________ is an organization that invests the primary authority for major strategic
decisions in the home office.
A) globally focused
B) region-country focused
C) transnational focus
D) state focused
66) Which of the following is true for a globally focused organization?
A) Managers can tailor strategies to local market conditions and demands.
B) It allows a subsidiary to react quickly to changes in the marketplace.
C) They attempt to market a relatively standardized product across geographic markets.
D) It strives to be simultaneously centralized and decentralized.
67) MGN is company that manufactures hardware, headquartered in London, UK. The company
strives to be simultaneously centralized and decentralized. As such, its goal is to achieve global
efficiency while maintaining local market responsiveness. Which approach is the organization
following?
A) transnational focus
B) state focus
C) region-country focus
D) global focus
68) In an organization using a region-country focus, ________.
A) attempts are made to market a relatively standardized product across geographic markets
B) managers can tailor their strategies to local market conditions and demands
C) the goal is to achieve global efficiency while maintaining local market responsiveness
D) the firm’s home office makes major strategic decisions
69) In an organization using a region-country focus, the primary authority to determine
competitive strategy rests with the ________.
A) corporate stockholders
B) corporate board of directors
C) home office management team
D) management of the international subsidiary
70) Romano Ware manufactures kitchen utensils. It is headquartered in Jakarta and has an
international presence. Its production sites and sales locations are situated in Europe, Asia, and
Australia. The organization is highly decentralized, and region or country managers can tailor
their strategies to local market conditions and demands. Which of the following approaches is
Romano Ware using?
A) supply chain
B) region-country focused
C) globally focused
D) transnationally focused
71) Jenson Foods is headquartered in New Jersey and has subsidiaries in many countries across
the world. The home office has centralized authority and the international subsidiaries follow the
same or a similar strategy in each of their markets. Jenson Foods is following a ________.
A) global focus
B) region-country focus
C) transnational focus
D) state focus
72) In an organization using transnational focus, ________.
A) innovative products are developed in the home country market
B) subsidiaries react quickly to changes in the marketplace
C) strategic decisions are decentralized
D) managers can tailor their strategies to local market conditions and demands
73) Which of the following is true for organizations that are transnational in nature?
A) These organizations attempt to market a standardized product across geographic markets.
B) Subsidiaries of transnational organizations cannot respond to changes in customers’ needs in
the local market.
C) This approach can be expensive for the company because it cannot achieve economies of
scale.
D) Its goal is to achieve global efficiency while maintaining local market responsiveness.
74) In high-context cultures, the situation has a ________ on what is considered appropriate
behavior.
A) minimal influence
B) marginal influence
C) significant influence
D) negligible influence
75) ________ is the degree to which a situation influences behavior or perception of the
appropriateness of behavior.
A) Cultural milieu
B) Cultural context
C) Cultural elasticity
D) Cultural dimensionality
76) In ________, people pay close attention to the situation and its various elements.
A) power distance
B) individualism
C) gender focus
D) high-context cultures
77) In ________, contextual variables have much less impact on the determination of appropriate
behaviors.
A) low-context cultures
B) power distance
C) gender focus
D) collectivism
78) Which of the following is true about the cultural context?
A) In high-context cultures, contextual variables have much less impact on the determination of
appropriate behaviors.
B) In low-context cultures, people pay close attention to the situation and its various elements.
C) In low-context cultures, the situation may or may not affect what is considered appropriate
behavior.
D) In low-context cultures, the context has a significant influence on this judgment.
79) ________ rely on electronically mediated communication.
A) Ad hoc teams
B) Virtual teams
C) Swift trust teams
D) Cross-functional teams
80) Which of the following is NOT a characteristic of geographically dispersed multicultural
teams?
A) Mutual trust is unimportant.
B) They often lack traditional supervision.
C) They must work more autonomously.
D) Coordination between team members is challenging.
81) ________ is the rapid development of trust in teams with positive and reciprocal
communications about the team’s task activities.
A) Reciprocal trust
B) Swift trust
C) Improved trust
D) Improved reliability
82) Which of the following is a requirement for swift trust?
A) The manager must let the team members eliminate misunderstandings among themselves.
B) The manager must have significant cultural knowledge and sensitivity to handle the virtual
team.
C) Team members must know each other’s faiths before starting a project.
D) Team members must learn a common language to communicate better.
83) A ________ is a set of cognitive attributes that allows an individual to influence individuals,
groups, and organizations from diverse sociocultural and institutional environments.
A) winning attitude
B) global mind-set
C) facile imagination
D) charismatic personality
84) Managing multicultural teams, competing in international markets, and managing
international operations all require managers to develop a ________.
A) global mind-set
B) certain savoir-faire
C) cross-functional vocabulary
D) no-holds-barred management style
85) Define globalization. According to Thomas Friedman, what are the three stages of
globalization?
86) Define the term institutional environment.
87) Explain the importance of the institutional environment.
88) Explain the four prominent dimensions of national culture.
89) Discuss the ways that firms can enter new global markets.
90) What are Greenfield ventures?
91) What is a globally focused organization?
92) What is a transnational organization?
93) Define and discuss the term cultural context.
94) What is a global mind-set?