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1. A multidomestic corporation is essentially a domestic firm that builds on its existing capabilities to penetrate overseas
markets.
a.
True
b.
False
2. In some countries, night shifts are taboo.
a.
True
b.
False
3. Subsidiaries of multidomestic corporations are run as independent companies.
a.
True
b.
False
4. A global corporation has fully autonomous units operating in multiple countries.
a.
True
b.
False
5. U.S. companies have been conducting business on an international basis longer than anyone else.
a.
True
b.
False
6. The European Union (EU) was established to facilitate free trade with the United States.
a.
True
b.
False
7. The host country is the country in which an international business operates.
a.
True
b.
False
8. Different cultural environments require different organizational behaviors.
a.
True
b.
False
9. A global HR information system facilitates coordination between world units but is difficult to put in place.
a.
True
b.
False
10. Because of low labor costs and language similarities, many Indian companies are finding the United States an
attractive place to locate their facilities, particularly call centers.
a.
True
b.
False
11. Third-country nationals are individuals working away from a company's home country.
a.
True
b.
False
12. At early stages of international expansion, many organizations prefer to use host-country nationals.
a.
True
b.
False
13. Hiring local citizens is generally less costly than relocating expatriates.
a.
True
b.
False
14. One reason to employ host-country nationals is that local governments want good jobs for their citizens.
a.
True
b.
False
15. Essentially, the United States has a monopoly on international business.
a.
True
b.
False
16. A work permit or visa issued by a government allows a foreign individual to seek employment in that government's
country.
a.
True
b.
False
17. A work permit, or visa issued by a government, is a document issued to students abroad that permits them to work up
to 20 hours per week for an organization that is headquartered in their home country.
a.
True
b.
False
18. Foreign workers invited to come to perform needed labor are usually referred to as guest workers.
a.
True
b.
False
19. Apprenticeship training in the United States is far superior to that in Europe.
a.
True
b.
False
20. Transnational team consists of people from the same country working on different international projects.
a.
True
b.
False
21. For most companies, the transnational form represents an ideal, rather than a reality.
a.
True
b.
False
22. Women expatriates are thought to succeed in part because they are visible and distinctive.
a.
True
b.
False
23. The first step in selecting expatriates should be self-selection, where employees who volunteer to go abroad are given
the chance to do so.
a.
True
b.
False
24. The failure of expatriate assignments is most often due to lack of technical and managerial ability.
a.
True
b.
False
25. Recently, transnational companies from Japan and China have proven to be some of the most powerful companies in
the world.
a.
True
b.
False
26. English is almost universally accepted as the language for international business.
a.
True
b.
False
27. Tax incentives, tariffs, and quotas are frequently implemented by the host country to encourage local hiring.
a.
True
b.
False
28. In recent years, there has also been a trend to send expatriates on longer, less project-based assignments.
a.
True
b.
False
29. Managers in Latin American countries can encourage performance by using personal influence and working through
individual members of a group.
a.
True
b.
False
30. Personal relationships are everything in Asia, and business there can only be conducted after relationships have been
established.
a.
True
b.
False
31. Despite improved telecommunications and travel, it is more difficult than ever to match up employers and employees
worldwide.
a.
True
b.
False
32. Culture shock refers to the disorientation people experience while adjusting to a new culture or readjusting to their
native culture.
a.
True
b.
False
33. Repatriation refers to the training a manager receives before taking an international assignment.
a.
True
b.
False
34. Nearly all companies have career development programs designed for repatriating employees.
a.
True
b.
False
35. The financial crisis beginning in 2008 only made international business matters worse, as companies were even less
likely to offer jobs to foreigners who might be seen as taking jobs from national citizens.
a.
True
b.
False
36. Pay plans in Japan tend to focus on individual performance and achievement.
a.
True
b.
False
37. Foreign workers with H2B visas can come to the United States for a maximum of six months to perform temporary,
agricultural seasonal work that is onetime only.
a.
True
b.
False
38. Employee benefits in the United States are among the highest in the world.
a.
True
b.
False
39. The demand for expatriate employees is growing rapidly.
a.
True
b.
False
40. The balance sheet approach to compensation refers to designing pay systems that equalize the purchasing power of
employees at comparable positions living overseas and in the home country.
a.
True
b.
False
41. A compensation method used to correct for the higher costs of goods and services overseas is the balance sheet
approach.
a.
True
b.
False
42. Host-based pay is compensation that is equivalent to that earned by employees in the country where the expatriate is
assigned.
a.
True
b.
False
43. Local managers may not have sufficient perspective on the entire organization to effectively appraise an expatriate's
performance.
a.
True
b.
False
44. Poor cultural fit is a major reason why international job assignments fail.
a.
True
b.
False
45. China has only one union.
a.
True
b.
False
46. In some countries, unions have alliances with other organizations like political parties, churches, or governments.
a.
True
b.
False
47. The International Labour Organization enforces international labor standards.
a.
True
b.
False
48. Only 20 percent of people globally are covered by any sort of social insurance programs.
a.
True
b.
False
49. Codetermination refers to the training an expatriate manager receives before an international assignment.
a.
True
b.
False
50. A domestic firm that has leveraged its existing capabilities to penetrate overseas markets is a(n) ____ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
51. An organizational firm that has fully autonomous units operating in multiple countries is:
a.
an international corporation.
b.
a multidomestic corporation.
c.
a transnational corporation.
d.
a global enterprise.
52. A multinational firm that has pulled control of its operations back into the home office is a(n) ____ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
53. A corporation that treats the world market as a whole and tries to combine its activities in various countries to
maximize efficiency is a(n) ____ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
54. Matsushita is a(n) ____ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
55. A corporation that attempts to simultaneously achieve local responsiveness and global efficiency is a(n) ____
corporation.
a.
transnational
b.
international
c.
multinational
d.
global
56. Unilever is an example of a(n) ____ corporation.
a.
transnational
b.
international
c.
multinational
d.
global
57. The close proximity of European countries makes them:
a.
likely candidates for international trade.
b.
members of the European Union.
c.
less competitive.
d.
less likely to need to conduct business internationally.
58. The European Trade Union Confederation (ETUC) represents trade workers in 83 trade unions in _____ western,
central, and eastern European countries.
a.
16
b.
20
c.
23
d.
36
59. Cultural environment includes all of the following components EXCEPT:
a.
education or human capital.
b.
values or ideologies.
c.
corporate structure.
d.
religious beliefs.
60. The term used to refer to the religion, values and attitudes, politics, technology, education, and social organization of a
nation is the:
a.
ritual environment.
b.
general environment.
c.
cultural environment.
d.
task environment.
61. The country in which an international business operates is a(n):
a.
receptive country.
b.
adaptive country.
c.
resource country.
d.
host country.
62. WTO member countries represent approximately _____ of all international trade.
a.
37 percent
b.
57 percent
c.
77 percent
d.
97 percent
63. Home-country nationals can also be called:
a.
host-country nationals.
b.
third-country nationals.
c.
international managers.
d.
expatriates.
64. U.S. citizens sent by a U.S. company to work abroad are called:
a.
host-country nationals.
b.
third-country nationals.
c.
international managers.
d.
expatriates.
65. When an American MNC hires an employee from Italy to work in its office in Rome, this employee is referred to as
a(n):
a.
expatriate.
b.
international manager.
c.
host-country national.
d.
third-country national.
66. When an American MNC hires an employee from Italy to work in its office in India, this employee is referred to as
a(n):
a.
expatriate.
b.
international manager.
c.
host-country national.
d.
third-country national.
