1) employees in countries that rank high on power distance are more likely to prefer a
consultative, participative leadership style.
2) nafta is an agreement that came into force to lower tariffs to 25 percent within three
to five years, and to eliminate them within seven years.
3) the term object language, or material culture, refers to the value of the material
artifacts given to the parties involved in order to show our goodwill.
4) social loafing is common in a collectivistic society.
5) a joint venture is a situation in which two or more partners have different relative
ownership shares in the new venture.
6) offshoring is when a company moves one or all of its factories from the host country
to the home country.
7) guanxihu refers to a bond between specially connected firms that generates
preferential treatment for members of the network.
8) ethnocentric culture is an integration of the business environments in which firms
currently operate.
9) behavior that communicates explicitly via words and actions is called nonverbal
communication.
10) direct mechanisms that provide the basis for the overall guidance and management
of foreign operations include the design of appropriate structures and the use of
effective staffing practices.
11) under civil law, past court decisions act as precedents to the interpretation of the law
and to common custom.
12) political risk insurance and local debt financing are forms of dependency.
13) in high-context cultures, feelings and thoughts are not explicitly expressed.
14) agreements are carried out through contract rather than ownership sharing in an
international joint venture.
15) in polychronic cultures, people focus on one thing at a time and adhere to time
commitments.
16) felix department store has over 900 stores in the u.s. and over 300 stores in mexico
and canada. felix has been particularly successful in mexico, and the firm’s executives
believe felix should expand into other latin american countries. as a result, plans are
underway for the construction of a new felix store in managua, nicaragua. the
construction, once started, is expected to be completed within a year, so staff selection
needs to begin soon. felix’s executives are considering the idea of using parent-country
nationals to manage the new store in nicaragua.
which of the following, if true, best supports the argument that parent-country nationals
should manage the felix store in managua, nicaragua?
a) felix encourages employees to participate in community outreach programs
b) the top management of felix is unlikely to endorse the recruitment of cheap,
incompetent workers
c) felix wants to maintain close control of the nicaragua store for at least three years
d) felix’s managers in nicaragua will choose what items to stock based on local needs
and customs
17) which of the following entry strategies is most likely to serve as a short-term
strategy and to provide limited income?
a) joint venture
b) management contract
c) offshoring
d) fully owned subsidiary
18) according to gupta and govindarajan, an alliance-based entry strategy is most
suitable when ________.
a) firms have a significant amount of capital
b) the risk of asymmetric learning by the partner is low
c) cultural distance between home and host countries is extremely low
d) the subsidiary would be highly integrated with the rest of the global operations
19) to be effective, firms reorganizing into a domestic structure plus foreign subsidiary
in one or more countries should ________.
a) categorically ignore niche markets
b) stop investing in domestic businesses
c) refrain from exporting
d) allow a great deal of autonomy to subsidiary managers
20) ________ is an outsider’s seemingly natural ability to interpret someone’s
unfamiliar and ambiguous gestures in just the way that person’s compatriots and
colleagues would.
a) multicultural sensitivity
b) cultural accommodation
c) multicultural transfer
d) cultural intelligence
21) in the american culture, which of the following is most likely considered a rough
tactic used during negotiations?
a) confrontations during conflicts
b) use of emotional appeals
c) informal seating arrangement
d) uncomfortable room temperatures
22) the organizational culture has a low impact in a ________ strategy.
a) global
b) transnational
c) multidomestic
d) international
23) opening its own subsidiaries in the host country may be better than contracting with
an outside firm in the host country, if it is crucial for the firm to ________.
a) produce gains in efficiency, productivity, and quality
b) keep control of proprietary technology and processes
c) minimize job losses in the home country
d) market its products in the host country
24) which of the following is an advantage of organizational culture?
a) long-term commitment
b) tendency to adopt changes quickly
c) excessive domestic focus
d) individuality
25) fizzy is an american firm that manufactures carbonated soft drinks. fizzy executives
want to enter the global market, and they are considering the idea of a joint venture with
a beverage company located overseas. after conducting research on different beverage
firms, fizzy executives selected a large beverage manufacturer located in china. kevin
burns and three other top-level executives at fizzy have been assigned to the negotiating
team. the team recently arrived in china to negotiate the details of the joint venture.
which of the following, if true, strengthens the argument that kevin should make token
concessions to the chinese throughout the negotiation process?
a) fizzy executives hope to have other business deals with the chinese firm in the future
b) fizzy executives want to demonstrate their aggressiveness and present factual appeals
c) fizzy executives want to ensure compliance with the ringi system at the chinese firm
d) fizzy executives are not certain as to who has decision-making authority at the
chinese firm
26) the initial challenge in implementing strategies in emerging markets is likely to be
how to ________.
a) compete with other emerging markets
b) allocate responsibilities between the partners
c) set up new policies and regulations
d) navigate poor infrastructures
27) which of the following creates shared value?
a) creating social value by creating economic value
b) disabling local cluster development
c) reconceiving products and markets
d) creating economic value by creating social value
28) which of the following terms refers to the integration of systems, processes,
organizations, value chains, and entire markets using internet-based technologies?
a) horizontal integration
b) e-business
c) vertical integration
d) technological leapfrogging
29) what are some of the differences between japanese and american communication
styles? what can american managers do to improve business communications with
japanese managers?
30) what is the european union (eu)? discuss how the eu affects both europe and
international managers working in europe.
31) what role does culture play in the motivational process? why is it important to
understand the different motivational patterns across cultures?
32) what is the difference between an internal locus of control and an external locus of
control? what cultures use each type?
33) why is language often a cause of miscommunication across cultures? what can
international managers do to minimize communication problems that stem from
language differences?