1) Which of the following are considered to be the structural building blocks for
running a multinational?
a. International division
b. Metanational
c. Mini replica
d. Foreign subsidiaries
2) Generic strategies
a. Occur when a company can outmatch its rivals in attracting and maintaining its
customers
b. Represent basic ways that domestic and multinational companies keep and achieve
competitive advantage
c. Are all based on finding ways to provide superior value to the customer
d. None of the above
3) Which of the following describes one potential way a Japanese supervisor can
communicate negative feedback for poor work performance to his/her subordinate?
a. By simply ignoring the subordinate
b. With formal appraisal systems
c. By discussing the poor performance openly
d. By providing the negative feedback in writing
4) Capabilities that lead to competitive advantage must be
a. Valuable, rare, and easy to copy
b. Fairly substitutable
c. Valuable, rare, and hard to copy
d. None of the above
5) Pre industrial societies tend to have
a. Poor infrastructure and support
b. Adequate infrastructure
c. Favorable business conditions
d. Government support
6) One important issue relevant to multinationals, is the extent to which educational
systems encourage students to
a. Be innovative and creative
b. To expect a more ethical atmosphere
c. Passively accept what is taught
d. None of the above
7) All of the following statements are true EXCEPT
a. Equity norms prevail in individualistic cultures
b. Equality norms prevail over equity norms in collectivist cultures
c. Equity norms prevail in collectivist cultures
d. All of the above are true
8) When partners share strategic decision making but make decisions independently at
the functional level (e.g., marketing, production), they are using which of the following
management structures?
a. Dominant partner
b. Independent management structure
c. Rotating management
d. Split-control management structure
9) Which of the following strategies gives top priority to seeking location advantages
and to gaining operation efficiencies from worldwide operation?
a. Multidomestic strategy
b. Regional strategy
c. Transnational strategy
d. International strategy
10) All the following is true about culture EXCEPT
a. Culture is the shared belief, norms, and values that guide everyday life of a group
b. Culture is passed from generation to generation through norms, values, and beliefs
c. Culture is always directly observable
d. Culture is very pervasive in societies
11) A manager gives bonuses to high performing foreign employees hoping that they
will continue performing at a high level. This manager is using which motivational
principle?
a. Extinction
b. Goal-directed
c. Reinforcement
d. Punishment
12) Trait models of leadership
a. Evolved from the debate regarding whether leaders are born or made
b. Focuses on the behaviors leaders use to manage their employees
c. Assumes that different styles and different leaders are more appropriate for different
situations
d. Includes Maslow’s Hierarchy of Needs theory
13) If a company believes that it needs to control foreign sales, customer credit, and
sale of product to the customer, it is more likely to choose
a. Indirect exporting
b. Rely on foreign intermediaries for export purposes
c. Direct exporting
d. None of the above
14) Ethical relativism
a. Argues that one should impose the home country’s ethical system everywhere
b. Implies that ethics are relative to the type of philosophy used
c. Means that each society’s view of ethics must be considered legitimate
d. Means that the same ethical principles are universal
15) A multinational manager discovers that his leadership style is more effective when
he displays visible sign of status (e.g chauffeur driven cars) and he behaves as an
authoritarian leader. The manager is most likely leading in which of the following
cultures?
a. A feminine culture
b. A high uncertainty avoidance culture
c. A low power distance culture
d. A high power distance culture
16) According to the Global Leadership and Organizational Behavior (GLOBE) studies,
which of the following leadership style characterizes a leader who is self-centered,
status conscious and procedural?
a. The autonomous leader
b. The participative leader
c. The humane style leader
d. The self-protective leader
17) Hygiene factors include
a. The size of desks and color of offices
b. Interesting tasks in the job
c. Challenges in the job
d. All of the above
18) Offensive strategies
a. Are examples of basic generic strategies
b. Are direct targeting/attacking of rivals
c. Are attempts to reduce the risk of being attacked
d. Are used to convince other firms to seek other targets
19) Which phase of the negotiation process consists of an evaluation of the success of
the completed negotiation?
a. The post relationship building phase
b. The agreement phase
c. The post agreement phase
d. The performance feedback phase
20) Having systems in place to ensure that collected information is accurate and reliable
represents which form of information security?
a. Confidentiality
b. Availability
c. Integrity
d. Authentication
21) Which of the following is not one of the factors affecting national differences in
human resource management as discussed in the text?
a. Types of jobs favored by applicants
b. Education and training of the labor pool
c. Laws and cultural expectations regarding fair wages and promotion criteria
d. All of the above are factors
22) A strategic competitive advantage for breaking into the established pattern of
commercial activity is a/an
a. Low cost strategy
b. Differentiation Strategy
c. Entry wedge
d. Participation strategy
23) Countries high on uncertainty avoidance have norms, values, and beliefs such as
a. Debates help you find the truth
b. Deviant people should be tolerated
c. Lack of rules in the workplace is good
d. Experts and authorities are usually correct
24) Which of the following is NOT one of the leadership styles of the path-goal theory
of leadership?
a. Directive style
b. Supportive style
c. Task-oriented style
d. Participative style
25) US firms often outsource customer service to workers in a foreign country. To
minimize difficulties, such workers receive cross-cultural training which may include:
a. Training workers to reduce or eliminate an accent
b. Educating workers regarding US culture
c. Requiring workers to speak only English while on duty
d. All of the above
26) The two aspects to consider when evaluating the possibility of hiring expatriates are
the high cost and
a. Skills in multinational management
b. High success rate
c. High failure rate
d. None of the above
27) Touch
a. Is related to proxemics and is a basic form of human interaction
b. Refers to communication through body movements
c. Represents the degree of directness in communication
d. Is similar to kinesics
28) A company pursuing a regional strategy
a. Has worldwide products and a worldwide value chain
b. Sells the same product using only minor modification in marketing and product
offerings
c. Is similar to a company pursuing an international strategy
d. Attempt to gain location advantages of more global transnational combined with
some of the local-adaptation advantages of the multidomestic company
29) If management believes that it must control foreign sales, customer credit, and the
eventual sale of the product, then the company should choose which of the following
entry-mode strategies?
a. Indirect exporting
b. Licensing
c. Direct exporting
d. Franchising
30) All the following statements are true about leadership EXCEPT
a. Leadership is influencing group members to achieve organizational goals
b. Excellent leaders motivate their employees to achieve more than minimal
organizational requirements
c. Companies can achieve success with or without good leaders
d. Leading in a multinational company is an even greater challenge than in a domestic
one
31) The ability to interact effectively in multiple cultures is known as
a. Trustworthiness
b. Cultural intelligence
c. Cultural relativism
d. None of the above
32) Global start-ups occur when
a. Companies have consistent licensing agreements
b. Companies start exporting as soon as they receive their first order
c. Companies begin as multinationals
d. Companies move rapidly through the stages of internationalization
33) According to the Global Leadership and Organizational Behavior Effectiveness
(GLOBE) study, which of the following leadership styles represents the leader who is
modest and has a compassionate orientation?
a. Team-oriented leader
b. Self-protective leader
c. Participative leader
d. None of the above
34) Which of the following theories is NOT considered as one of the needs theories?
a. Equity theory
b. Achievement motivation theory
c. Maslow’s hierarchy of needs
d. Motivator-hygiene theory
35) All of the following are personal characteristics of the successful international
negotiator EXCEPT
a. Be a competitive negotiator
b. Can tolerate ambiguous situations
c. Has stamina, good sense of humor
d. Is flexible, creative, curious, and can empathize
36) Price comparison websites which searches online stores around the world to
provide price comparisons and shipping and delivery information represents which
form of e-commerce?
a. B2B (business-to-business)
b. B2C (business-to-consumer)
c. C2C (consumer-to-consumer)
d. C2B (consumer-to-business)
37) All of the following are possible steps that can be taken by multinationals to remove
barriers faced by female expatriates EXCEPT
a. Provide opportunities for interpersonal networks with other female expatriates
b. Provide mentors
c. Identify and remove sources of barriers
d. Provide more appropriate performance appraisal systems for female expatriates
38) Regarding low cost and differentiation strategies, when is each strategy
appropriate?
39) Pick a national culture with which you are familiar. For this culture, identify
leadership traits and behaviors that would be detrimental to organizational
effectiveness.
40) What are some implications of the market transitions that many formerly
communist societies are experiencing? What are some major challenges facing
multinationals as they try to motivate workers in these transition economies?
41) Why do the rankings on some cultural dimensions such as individualism differ
between the 7d and Hofstede models?
42) What is political risk? Discuss some of the aspects of political risk assessment. How
can multinationals use political risk assessment?
43) What is e-commerce? What are the main types of e-commerce transactions?
Discuss some of the reasons why B2B transactions make up a significant percentage of
current e-commerce business?
44) From the perspective of the subordinates, discuss why culturally inappropriate
leadership behaviors might be de-motivating.
45) Under what conditions would a regional strategy be best for a multinational?
Explain.
46) Describe the Small Business Stage Model.
47) Describe the low cost strategy as compared to the differentiation strategy.