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65. Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your
firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system.
What type of strategy are you going to use?
a.
Wholly owned foreign affiliate
b.
A greenfield venture agreement
c.
A franchise
d.
An export agreement
e.
Barter trade
66. Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk
obtained in operating international businesses?
a.
Direct investment/franchising
b.
Wholly owned foreign affiliate/countertrade
c.
Exporting/licensing
d.
Franchising/licensing
e.
All of these
67. A foreign subsidiary over which an organization has complete control is called a:
a.
joint venture.
b.
licensing agreement.
c.
franchise.
d.
wholly owned foreign affiliate.
e.
foreign venture.
68. The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This
will also help in reducing transportation and storage costs. Which strategy would be the best to use given the
circumstances?
a.
Franchising
b.
Exporting
c.
Direct investing
d.
Barter agreement
e.
Licensing
69. The management of business operations conducted in more than one country is called:
a.
global management.
b.
international management.
c.
outsourcing management.
d.
planning management.
e.
domestic management.
70. ____ aspects of management do not change when doing business internationally.
a.
Planning
b.
Organizing
c.
Controlling
d.
Leading
e.
All of these
71. Language, values, religion, and education all describe which dimension in the international environment?
a.
Economic
b.
Legal
c.
Political
d.
Sociocultural
e.
Technological
72. In international operations, the economic environment represents all of the following factors except:
a.
infrastructure.
b.
resource and product markets.
c.
laws and regulations.
d.
inflation.
e.
exchange rates.
73. Resource development, infrastructure, and exchange rates all describe which dimension in the international
environment?
a.
Economic
b.
Legal
c.
Political
d.
Sociocultural
e.
Technological
74. In international operations, the economic environment includes:
a.
shared knowledge, beliefs and values.
b.
political risks.
c.
social organizations.
d.
infrastructure.
e.
tariffs, quotas, and taxes.
75. Which of the following is a sociocultural factor in the international environment?
a.
Language
b.
Exchange rates
c.
Tariffs, taxes, and quotas
d.
Per capita income
e.
Infrastructure
76. _____ is normally used to classify countries as developed or developing.
a.
Exchange rates
b.
Interest rates
c.
Gross national product
d.
Per capita income
e.
Inflation rates
77. Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a
problem with India's:
a.
product market.
b.
resource market.
c.
infrastructure.
d.
economy.
e.
power distance.
78. ____ generally are located in Asia, Africa and South America.
a.
MNCs
b.
EUs
c.
LDCs
d.
WTOs
e.
MFNs
79. Exchange rates are included in which of the following international environments?
a.
The legal-political sector
b.
The economic environment
c.
The sociocultural environment
d.
The barter system environment
e.
The government sector
80. A form of exporting to less-developed countries is called:
a.
licensing.
b.
franchising.
c.
greenfield venture.
d.
joint venture.
e.
countertrade.
81. A country's physical facilities that support economic activities make up its _____.
a.
resource markets
b.
infrastructure
c.
physical markets
d.
product markets
e.
plants and equipment
82. When the 2008 financial crisis began in the United States, it resulted in the collapse of the housing market and the
failure of several large financial institutions. This crisis spread rapidly to the rest of the world. This example demonstrates
which trend in the global economic environment?
a.
Economic development differs widely among countries of the world.
b.
Market demands differ for products and services throughout the world.
c.
Political instability is the primary result of economic failure.
d.
World markets are economically interconnected.
e.
Cultural factors have a greater impact on world markets than do economic factors.
83. If you built a computer company in Africa and then found that your product was having difficulty being distributed to
customers because of the road system, your problem would be related to:
a.
an inadequate infrastructure.
b.
an economy incapable of supporting growth.
c.
a poor resource market.
d.
a poor product market.
e.
none of these.
84. The legal-political environment, in international operations, includes which of the following?
a.
Shared knowledge, beliefs and values
b.
Political risks
c.
Social organizations
d.
Infrastructure
e.
None of these
85. Political risk is defined as an organization's risk of _____ due to politically based events or actions by host
governments.
a.
loss of assets
b.
managerial control
c.
earning power
d.
all of these
e.
managerial control and earning power only
86. A company's risk of loss of assets, earning power, or managerial control due to politically based events or action by
host government is referred to as:
a.
MFN.
b.
political risk.
c.
tariffs.
d.
political instability.
e.
terrorism.
87. Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This
is an example of which sector of the international environment?
a.
Legal-political
b.
Sociocultural
c.
Technological
d.
Economic
e.
Infrastructure
88. Which of the following is NOT a legal-political factor in the international environment?
a.
Laws and regulations
b.
Language
c.
Tariffs, quotas, taxes
d.
Political risk
e.
Government takeovers
89. All of the following are considered emerging economies EXCEPT _____.
a.
Brazil
b.
Russia
c.
India
d.
China
e.
Canada
90. A foreign terrorist kidnaps your firm's marketing VP while the VP is in the host country. This is a harsh example of:
a.
economic development.
b.
infrastructure.
c.
political risk.
d.
international law.
e.
social risk.
91. A.R.C. is a large non-profit humanitarian aid organization that has been forced to pull out of several African markets
in recent years due to civil wars and large-scale violence. This demonstrates which frequently cited problem for
international companies?
a.
Political instability
b.
Communist governments
c.
Economic instability
d.
Political risk
e.
Financial risk
92. A nation's _____ includes the shared knowledge, beliefs and values, as well as the common modes of behavior and
ways of thinking, among members of a society.
a.
power distance
b.
culture
c.
masculinity
d.
individualism
e.
uncertainty avoidance
93. Which of the following companies place an emphasis on their home countries?
a.
Polycentric
b.
Geocentric
c.
Ethnocentric
d.
Global
e.
Regiocentric
94. Cultural factors in foreign countries are _____ the political and economic factors.
a.
easier than
b.
similar to
c.
more perplexing than
d.
less important than
e.
none of these
95. _____ refers to the degree to which people accept inequality in power among institutions, organizations, and people.
a.
Power distance
b.
Uncertainty avoidance
c.
Individualism
d.
Collectivism
e.
Masculinity
96. Countries whose social values reflect low power distance:
a.
are highly democratic.
b.
accept inequality in power among institutions, organizations and people.
c.
expect equality in power.
d.
avoid uncertainty.
e.
none of these.
97. Sam is known by his colleagues as a great communicator, with an uncanny ability to shift speech patterns,
expressions, and body language to be in tune with people from different cultures. Based on this example, Sam is strong in
which component of cultural intelligence?
a.
Cognitive
b.
Emotional
c.
Physical
d.
Tangible
e.
Intangible
98. When organization managers have a(n) ____ attitude, they treat employees as resources to be used.
a.
ethnocentric
b.
humanistic
c.
instrumental
d.
pluralistic
e.
performance
99. A loosely knit social framework in which individuals are expected to take care of themselves is called:
a.
culture.
b.
individualism.
c.
ethnocentrism.
d.
masculinity.
e.
power distance.
100. Jana has a high tolerance for the unstructured, the unclear, and the unpredictable. She can best be described as
having:
a.
high uncertainty avoidance.
b.
low uncertainty avoidance.
c.
high degree of individualism.
d.
low degree of individualism.
e.
low level of power distance.
101. Collectivist values are represented in the social framework of which of these?
a.
The United States
b.
Australia
c.
Ecuador
d.
Great Britain
e.
All of these
102. _____ refers to a value characterized by people's intolerance for uncertainty and ambiguity and resulting support for
beliefs that promise certainty and conformity.
a.
Power distance
b.
Uncertainty avoidance
c.
Certainty avoidance
d.
Conformity seekers
e.
None of these
103. Which of these reflects a cultural preference for cooperation, group decision making, and quality of life?
a.
Individualism
b.
Collectivism
c.
Masculinity
d.
Femininity
e.
Power distance
104. Which of the following countries possesses a high performance orientation?
a.
Israel
b.
Sweden
c.
Taiwan
d.
Russia
e.
Venezuela
105. Countries that use several languages:
a.
are ethnocentric.
b.
are geocentric.
c.
are likely to have high uncertainty avoidance.
d.
have linguistic pluralism.
e.
are polycentric.
106. Austria's cultural preference is for achievement, heroism, assertiveness, and material success. This would be
considered:
a.
power distance.
b.
individualism.
c.
masculinity.
d.
ethnocentrism.
e.
collectivism.
107. One of Hofstede's social values that was developed later is:
a.
power distance.
b.
uncertainty avoidance.
c.
masculinity.
d.
collectivism.
e.
long-term orientation.
108. Recent research by the GLOBE project has extended _____ research and offered new insights for managers.
a.
Hofstede's
b.
Walton's
c.
Weber's
d.
Fayol's
e.
Gilbreth's
109. All of the following are cultural dimensions as defined by the GLOBE Project, except _____.
a.
assertiveness
b.
gender differentiation
c.
social collectivism
d.
humane orientation
e.
masculinity
110. In countries where women are often in positions of high status, the Globe Project would describe that culture as high
in _____.
a.
assertiveness
b.
uncertainty avoidance
c.
gender differentiation
d.
societal collectivism
e.
performance orientation
111. A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in
_____.
a.
assertiveness
b.
uncertainty avoidance
c.
gender differentiation
d.
humane orientation
e.
societal collectivism
112. When organization managers have a(n) _____ attitude, they value employees as an end in themselves.
a.
ethnocentric
b.
humanistic
c.
instrumental
d.
pluralistic
e.
performance
113. Which of the following countries possesses a high degree of assertiveness?
a.
Spain
b.
Sweden
c.
Japan
d.
Iceland
e.
Switzerland
114. Which of the following countries possesses a low degree of gender differentiation?
a.
China
b.
Brazil
c.
Italy
d.
South Korea
e.
Denmark
115. In a(n) _____, people use communication primarily to exchange facts and information.
a.
power culture
b.
informational culture
c.
high-context culture
d.
mid-context culture
e.
low-context culture
116. A _____ interaction requires more time because a relationship has to be developed, and trust and friendship must be
established.
a.
high-context
b.
sales
c.
business
d.
low-context
e.
personal
117. A cultural attitude marked by the tendency to regard one's own culture as superior to others is called:
a.
ethnocentrism.
b.
polycentrism.
c.
geocentrism
d.
technocentrism.
e.
none of these.
118. Which of the following is defined as a culture in which communication is used to enhance personal relationships?
a.
Interpersonal culture
b.
High-context culture
c.
Power culture
d.
Low-context culture
e.
Family-oriented culture
119. How many nations signed on for negotiation when GATT was created in 1947?
a.
15
b.
23
c.
28
d.
40
e.
57
120. Kim, a Japanese expatriate working in Denmark, tends to use communication primarily to build personal social
relationships. She feels that relationships and trust are more important than business. Kim is surprised that her business
associates in Denmark do not share the same views. Based on this information, Kim most likely grew up in what type of
culture?
a.
Human-oriented
b.
Passive
c.
Assertive
d.
Low-context
e.
High-context
