1) The confidence that the partner will behave with goodwill and trust is
a. Commitment
b. Credibility trust
c. Benevolent trust
d. Calculative commitment
2) The use of worldwide job evaluations, performance appraisals methods, and salary
scales to determine pay is the
a. The global pay system
b. The balance sheet approach
c. The multi-local pay system
d. The headquarters-based system
3) Evidence on training for international assignments suggests
a. Cross-cultural training reduces expatriate failure rates
b. Cross-cultural training makes people feel more comfortable but there are no bottom
line effects on performance
c. US firms invest the most in this activity
d. It only beneficial for long term assignments
4) The elephant-and-the-ant complex refers to
a. Difficulties that come with two different size organizations in a strategic alliance
b. Problems that arise when one side feels inferior to the other
c. Strategic alliances between developed and developing countries
d. An unbalanced management structure
5) All of the following are true about the holistic concession-making approach
EXCEPT
a. Is very popular in Asian cultures
b. Each side makes very few, if any, concession during discussions of each point in
potential agreement
c. Implies that concession making begins only after all participants discuss all issues
d. Implies that negotiators expect each side to give and take on individual issues in
sequence
6) The famous German Sociologist, Max Weber, argued that the Protestant work ethic
a. Led to the emergence of capitalism in Western Europe
b. Led to the decline of capitalism in Western Europe
c. Led to an acute distaste for the accumulation of wealth
d. Led to the rise of socialism in Eastern Europe
7) On which of Hofstede’s value dimensions does the U.S. rank highest?
a. Masculinity
b. Individualism
c. Patriotism
d. Power distance
8) The practice of recruiting friends or relatives of those already employed is which
form of recruiting?
a. Front gate recruiting
b. Walk-ins
c. Backdoor recruiting
d. Internal recruiting
9) According to the text, which of the following DOES NOT represent a form of
strategic alliance?
a. Informal cooperative alliances
b. Formal cooperative alliances
c. International joint ventures
d. Informal partnerships
10) In the split control management structure
a. Companies share all decision making
b. Managers of the strategic alliance split from and act independently from their parent
companies
c. Partners divide decision making control by functional areas
d. Each company takes a turn providing the operational managers
11) Many multinationals rely on the support and assistance provided by which of the
following when entering a new country?
a. Customers
b. Entrepreneurs and small businesses
c. World Bank
d. Trade Shows
12) All of the following are true about US selection practices EXCEPT
a. US selection practices focus on individual achievements and not on group affiliations
b. US selection practices favor hiring of relatives and friends
c. The aim of the typical US selection practice is to gather information of a candidate’s
job qualifications
d. US selection practices are governed by laws and regulations
13) Japanese compensation systems base pay raises mostly on
a. Marital status and family size
b. Seniority
c. Merit
d. Position
14) When companies use the logic of ethical relativism to behave any way they please,
this is known as
a. Prescriptive ethical management
b. Proscriptive ethical management
c. Convenient relativism
d. Universal ethics applications
15) Which of the following statements about small businesses in the US is FALSE?
a. Small businesses represent about 99.7% of all employing firms
b. Small businesses generate about 15% of all new jobs annually
c. Small businesses employ almost 41% of all high tech workers
d. Small businesses represent almost 97% of identified exporters
16) Which of the following strategies is a pure e-business least likely to be concerned
with when facing e-commerce challenges?
a. Developing information and management systems to respond to rapid growth
b. Attracting and retaining e-commerce-capable talent
c. Altering HR programs to suit the different skill requirements of e-commerce
employees
d. Maintaining rapid decision making, creativity, innovation, and flexibility
17) The international division differs from the export department in that
a. The international division is usually larger and has greater responsibilities
b. The international division has more extensive staff with international expertise
c. Top management expects the staff of the international division to perform functions
such as negotiating licensing and joint venture agreements, translating promotional
material, or providing expertise on different national cultures and social institutions
d. All of the above are true
18) The minireplica subsidiary
a. Copies the structure and strategy of companies located in the same country
b. Mostly copies the structure and strategy of the parent company
c. Replicates only minor parts of the parents production technology
d. Copies the structure of small foreign firms
19) Which of the following is not one of the necessary electronic capabilities required
for successful online presence?
a. Software to process pricing in multiple currencies
b. Ability to provide support in English in the various service centers
c. Systems that check regulatory compliance with local and international laws
d. Fraud protection
20) The GE Portfolio matrix
a. Is the same as the Boston Consulting Group matrix
b. Contains four cells based on industry and business strength
c. Can be used to assess business level strategies
d. Contains nine cells based on industry strength and business competitive position
21) All of the following are first mover advantages EXCEPT
a. First mover advantages gives the company first access to natural resources
b. First mover advantages gives the company first access to social resources
c. First mover advantages reduce switching costs
d. All of the above are first mover advantages
22) Market size, ease of entry and exit, and economies of scale are all examples of
a. Defensive strategies
b. Key success factors
c. Dominant economic characteristics
d. Differentiation
23) According to the text, all of the following statements regarding education and
educational systems around the world are TRUE except
a. Universal education enrolment is a goal of most countries
b. Educational levels give an indication of the skill and productivity in any society
c. The focus of educational systems around the world are fairly similar in terms of
whether these systems emphasize academic or vocational aspects
d. All of the above statements are true
24) An economic system where production activities are decentralized to private owners
who carry out these activities to make a profit is known as a
a. Capitalist economy
b. Command economy
c. Socialist economy
d. Mixed economy
25) Which of the following is NOT true regarding low training rigor?
a. Low training rigor usually includes briefings concerning company operations
b. Low training rigor usually lasts for a short period
c. Low training rigor usually includes lectures and videos on the local culture
d. Low training usually lasts over two months
26) All of the following are benefits that companies obtain by using expatriates
EXCEPT
a. Receiving important strategic information
b. Increased coordination and control of international operations
c. Timely information on the local markets
d. Reduced turnover for key international managers
27) Although large businesses have more resources, small businesses have the
advantage of:
a. size
b. time
c. speed
d. a global culture
28) The need to maximize personal achievement refers to which type of need in
Maslow’s hierarchy of needs
a. Physiological needs
b. Self esteem needs
c. Self actualization needs
d. Security needs
29) Which of the following describes the situation where companies stay in a strategic
alliance despite strong evidence that the alliance wont work?
a. Calculative commitment
b. Credibility commitment
c. Attitudinal commitment
d. Escalation of commitment
30) Explain why performance drops off when teams are used in individualistic cultures.
Explain the significance of social loafing in the process. How can social loafing be
reduced?
31) Discuss the differences between foreign trade and foreign direct investment.
32) Discuss some of the technical capabilities that are needed for multinational
e-commerce.
33) What is the first mover advantage? What are the most common sources of first
mover advantages? How can a small business benefit from first mover advantage?
34) Discuss the conditions when a transnational or international firm is likely to
outcompete a multidomestic or regional strategist. Contrast this with the opposite
situation where the multidomestic is most likely to be successful.
35) Compare and contrast the two basic negotiation strategies. Which would you prefer
to use, and why?
36) Discuss each of Porters five forces model. What information can a multinational
obtain from Porters five forces industry analysis?
37) What are the three major principles of allocating rewards? Discuss how each
principle works. Why is equality preferred in more collectivistic cultures while
individualistic cultures favor equity?