1) Which of the following refers to the negative impact of political decisions or events
on a multinationals profitability?
a. Economic risk
b. Local government risk
c. Political risk
d. Control risk
2) Having one set of products for North American countries and another set of products
for Europe illustrates which strategy?
a. Multidomestic
b. Regional
c. Transnational
d. Global
3) Which of the following statements regarding globalizing through the Internet is not
true?
a. A company that globalizes through the Internet does not have to be concerned with
the global-local dilemma
b. A company that globalizes through the Internet still faces the same challenges that a
brick and mortar company faces
c. A company that globalizes through the internet must still address the traditional
problems of multinational business (i.e., currencies, local laws, infrastructure for
delivery)
d. A company that globalizes through the Internet must still decide whether to go global
or to require localization to national or regional levels
4) Cultural values:
a. Represent our understandings about what is true
b. Prescribe and proscribe behavior
c. Tell us what is good and beautiful and what are legitimate goals in life
d. Provide solutions to problems of adaptation to the environment
5) A company that has a limited product range, and sells to certain buyers in some
geographical areas is said to have which of the following?
a. Broad competitive scope
b. Narrow competitive scope
c. Lack of competition
d. None of the above
6) According to research discussed in the text, which of the following may help
managers become more culturally intelligent?
a. Exposure to new cultural experiences in other countries
b. Learning to trust each people from individualistic cultures
c. Having a short term orientation
d. All of the above are true
7) The economic agreement that links the US, Canada, and Mexico in an economic bloc
that allows freer exchange of goods and services is known as the
a. EU
b. OPEC
c. APEC
d. None of the above
8) Which of the following statements about management development in the U.S. is
false?
a. Management development in the U.S. is the responsibility of the firm rather than the
individual
b. U.S. companies can rely on senior-level managers to identify promising candidates
for management development and training
c. U.S. companies rely on direct assessment approaches such as assessment centers to
identify individuals with managerial potential
d. All of the above is true
9) In the BCG matrix, the appropriate strategy for dogs should be
a. Invest and Expand
b. Defend and Harvest
c. Divest
d. None of the above
10) According to the text, which of the following is NOT one of the management
challenges companies will face as they develop their e-commerce businesses?
a. Attracting, retaining, and developing employees in the e-commerce unit
b. Deciding which e-commerce functions to outsource
c. Finding funds to develop the e-commerce business
d. Finding ways to provide individuals with growth opportunities and job fulfillment to
encourage employee retention in the e-commerce business
11) Which of the following types of control system uses budgets, statistical reports,
standard operating procedures, and centralized decision making to manage
organizational processes?
a. Profit center
b. Bureaucratic control system
c. Decision-making control
d. Cultural control system
12) All of the following statements are true about the functional structure EXCEPT
a. In the functional structure, departments perform separate business functions such as
marketing or manufacturing
b. The functional structure is the simplest of organizations
c. In small organizations, the functional structure is the least efficient of all structures
d. Because functional subunits are separated from each other, coordination among the
units can be difficult
13) When managers use rewards or punishment to influence their subordinates, they are
engaging in
a. Rewards oriented leadership
b. Transformational leadership
c. Transactional leadership
d. Charismatic leadership
14) Which of the following statements regarding formal communication is FALSE?
a. U.S. Americans have the highest degree of formal communication
b. Compared to the U.S., most other business cultures acknowledge rank and titles
when addressing each other
c. There is more formality of dress for both genders for most other cultures compared to
the U.S.
d. All of the above are true
15) The confidence that a partner has the intent and ability to meet its obligations and
make its promised contribution to the strategic alliance is known as
a. Calculative trust
b. Calculative commitment
c. Credibility trust
d. Benevolent trust
16) When a small business uses significant resources to seek increased sales from
exporting, it is what stage of internationalization?
a. Stage 1 – Passive exporting
b. Stage 2 – Export management
c. Stage 3 – Export department
d. Stage 4 – Sales branch
17) The set of technical standards developed by the International Organization for
Standardization are known as
a. ISO 92
b. ISO 14000
c. ISO 9001: 2000
d. None of the above
18) At the __________ stage in the negotiation, both parties exchange the specifics of
their needs for the agreement.
a. Exchanging Information and the First Offer
b. Building the relationship
c. Persuasion
d. Concession
19) The least efficient of the following structural options is
a. Product structure
b. Functional structure
c. Vertical structure
d. Graphic structure
20) A large, entrepreneurial multinational that is able to tap into hidden pockets of
innovation, technology, and market know-how scattered around the world, especially in
emerging markets is known as
a. A transnational
b. A minireplica subsidiary
c. A metanational
d. A foreign subsidiary
21) An enduring system of relationships among people, such as education or the
political system represent which aspect of the national context of a country?
a. National culture
b. Business culture
c. Social institutions
d. Managerial culture
22) As entry-mode strategies, direct and indirect exporting have
a. High levels of control and low levels of risk
b. Similar levels of risk and control as FDI
c. Low levels of risk and control
d. Are among the most risky
23) All of the following are true about the final agreement EXCEPT
a. The final agreement is the signed contract, agreeable to all sides
b. Successful negotiations do not necessarily result in the final agreement
c. The final agreement must be consistent with the chosen legal system or systems
d. All of the above are true
24) Home country nationals are
a. Expatriate employees who come from the parents home country
b. Employees who come from a different country where he/she is working
c. Expatriate employees which come from the parents home country
d. Employees from foreign country who work in the country where the host company is
located
25) The major opportunities of e-commerce globalization include all of the following
EXCEPT
a. Cost reduction
b. Efficiencies
c. Speed of access and convenience
d. Access to new sources of financing
26) Which of the following is NOT one of the suggestions for proper use of
interpreters?
a. Spend time with the interpreter so that he/she can understand your accent
b. Insist on minimization of interruptions and have the interpreter translate after you
end each statement
c. Go over technical and other complex issues with your interpreter
d. Request that your interpreter apologizes for your inability to speak the local language
27) An agreement not legally binding between companies to cooperate on any
value-chain activity is a (an)
a. Formal international cooperative alliance
b. International joint venture
c. Informal international joint venture
d. International cooperative alliance
28) The type of vertical control mechanism most often associated with a profit center is
a. Bureaucratic
b. Output
c. Cultural
d. Decision making
29) The type of subsidiary that supports a multinational firm strategy based on location
advantages is a/an
a. Export department
b. Minireplica subsidiary
c. Transnational subsidiary
d. International division
30) Switching costs are
a. Expenses involved when a customer switches to a competitor’s product
b. Forms of copycat strategies
c. The costs incurred by a company when adopting a global standard
d. None of the above
31) A cultural paradox is defined as:
a. Group situations define cultural prescriptions
b. Individual situations define cultural prescriptions
c. Group situations contradict cultural prescriptions
d. Individual situations contradict cultural prescriptions
32) A study of compensation practices in ten countries revealed that
a. Pay incentives are important
b. Pay should be contingent on group performance
c. Incentives should be significant amount of pay
d. All the above are true
33) Responding to differences in the markets in all the countries in which a company
operates is
a. The global-local dilemma
b. The best strategy for success for a multinational
c. The local-responsiveness solution
d. The global solution
34) All of the following statements are true about product structures EXCEPT
a. The product structure is the most efficient of all structures
b. Product organizations must still perform some functional tasks of a business
c. The structure builds a department or subunit around a product
d. Managers choose product structures when they believe that a product or a group of
products is sufficiently unique to require focused efforts on one type of product or
service
35) In a cross-national context, expectancy theory prescribes that managers
a. Should specify the hierarchy of needs of workers
b. Identify and eliminate potential sources of inequity at work
c. Identify valued outcomes and convince workers that their efforts will lead to these
outcomes
d. Punish workers for not achieving organizational goals
36) The worldwide product structure is usually considered best to implement a/an
_____ strategy.
a. Multidomestic or regional
b. Transnational
c. International
d. Indirect exporting
37) All of the following statements about the US job characteristics model are true
EXCEPT
a. The model suggests that work is more motivating when managers enrich core job
characteristics
b. The model suggests that enriching job characteristics is motivating for all types of
individuals
c. The model assumes that one critical state for motivation to occur is if the worker
believes his/her work to be meaningful
d. The model assumes that only some people will respond well to enriched jobs
38) Which of the following forces is NOT one of the forces considered in Porters five
forces analysis?
a. Degree of competition among existing competitors
b. Degree of governmental regulation in the industry
c. Threat of new entrants in the industry
d. Bargaining power of buyers in the industry
39) A permanent unit of the organization designed to focus the efforts of different
subunits on particular problems is a
a. Task force
b. Full-time integrator
c. Liaison
d. Team
40) A union representing all workers belonging to one religious orientation in a
company is known as
a. An ideological union
b. A craft union
c. A local union
d. An ideological union
41) Discuss the difference between teleological and deontological theories of ethics.
Give examples of how an international manager might appeal to either type of theory
when faced with the opportunity to offer a bribe.
42) Compare and contrast prescriptive codes of ethics with proscriptive codes.
43) What is cultural control? Why is it the favored control mechanism for
transnational-network structures?
44) Compare and contrast the three main types of strategic alliances.
45) What is the Whorf hypothesis? Explain.