1) expropriation of corporate assets without prompt and adequate compensation is an
example of ________.
a) economic risk
b) political risk
c) legal risk
d) cultural risk
2) historically, a firm reorganizes as it internationalizes to ________.
a) inhibit organizational change
b) curb competition
c) boost domestic competition
d) accommodate new strategies
3) hofstede’s research on leadership reflects the values of ________.
a) superiors
b) the top management
c) born globals
d) subordinates
4) cultural intelligence is also known as ________.
a) cultural accommodation
b) cultural quotient
c) cultural empathy
d) cultural sensitivity
5) which of the following is considered the primary problem for mncs attempting to
define their corporate-wide ethics?
a) inconsistencies among international laws
b) variations in ethical standards around the world
c) corruption within legal organizations
d) differences in worldwide religions
6) which of the following motivates a company to form cross-border alliances?
a) to regulate and favor domestic companies
b) to gain rapid entry into a new and consolidating market
c) to remove exporting barriers for domestic companies
d) to allow local companies to gain access to international products and services
7) the use of professional or skilled workers located in countries other than that of the
home country is referred to as ________.
a) franchising
b) licensing
c) outsourcing
d) importing
8) research in the united states indicates that during the final stage of negotiations, it is
best to start with ________.
a) extreme positions
b) an holistic approach
c) relationship building
d) finalized formal contracts
9) restrictive trade barriers most likely influence the globalization of businesses by
encouraging firms to ________.
a) develop joint ventures with local firms
b) import supplies from foreign vendors
c) expand the exportation of raw materials
d) switch from exporting to overseas manufacturing
10) the ________ method of analyzing economic risk attempts to measure statistically a
country’s ability to honor its debt obligation by assigning different weights to economic
variables.
a) quantitative
b) qualitative
c) checklist
d) objective
11) based on hofstede’s value dimensions, countries in which nationalism is less
pronounced, protests are tolerated, and job mobility is common are high on ________.
a) power distance
b) collectivism
c) uncertainty avoidance
d) masculinity
12) ________ refers to a process of negotiations between workers and managers.
a) picketing
b) segregating
c) social security
d) collective bargaining
13) which of the following cultures views formal contracts as insulting and wasteful,
and prefers to make agreements based on mutual understanding and trust?
a) swedes
b) japanese
c) russians
d) americans
14) which of the following factors will hinder the integration of expatriate staff with
local staff?
a) knowledge sharing
b) headquarters mentality
c) overseas experience
d) cultural flexibility
15) which of the following hofstede variables is associated with a strong sense of
nationalism?
a) individualism
b) uncertainty avoidance
c) masculinity
d) femininity
16) according to the research conducted by tung et al., which of the following cities in
china has people who are business-savvy, confident, career-oriented, and materialistic?
a) beijing
b) chengdu
c) shanghai
d) guangzhou
17) which of the following is a force that establishes or maintains divergent systems?
a) technological standardization
b) declining role of unions
c) collective bargaining methods
d) global competitiveness
18) which of the following is one of the forces working toward convergence in labor
systems?
a) successful repatriation
b) internal competitive forces
c) decreased open trade
d) political changes