Had the government taken over the assets of Global Trading without compensation, and
not taken over the assets of any other company, the government’s actions would be an
example of ________.
A) expropriation
B) nationalization
C) confiscation
D) communism
The early return by an employee from an international assignment because of
inadequate job performance is called ________.
A) culture shock
B) decruitment
C) reverse culture shock
D) expatriate failure
The new subsidiary’s production facilities will employ approximately 100 full-time
nonmanagerial workers. Who among the following will Erica most likely recruit to fill
these positions?
A) highly productive workers relocated from developing nations
B) bilingual U.S. citizens who speak the language of the host country
C) qualified workers from the local market
D) workers from the American headquarters who are interested in gaining international
experience
Scenario: Beanstalk International
Beanstalk International is a rapidly growing company with well-established subsidiaries
in several nations. The company wants to follow a strategy of adapting its products and
marketing activities in each national market to suit local preferences. This strategy aims
at creating value for its customers.
Which of the following should managers at Beanstalk conduct to identify and
distinguish between the primary and support activities in the organization?
A) fundamental analysis
B) structural analysis
C) value chain analysis
D) technical analysis
Scenario: You’re Hired!
Erica Els has just been promoted as vice president of human resources for Hudson
Foods, a U.S.-based international frozen food corporation. Erica’s first task is to staff
the company’s European subsidiary.
One lower-level position Erica must fill requires the employee to be familiar with the
new market and its customs, traditions, and language. Also, the new hire must be
comfortable with Hudson Food’s organizational culture and business traditions. Who
among the following will Erica most likely recruit for this position?
A) a local fresher with strong government contacts
B) an existing Hudson Foods employee from the United States
C) a native of the target market who has completed a one-year internship at Hudson
Foods
D) an individual from the U.S. who has experience in the frozen food industry
The strategy that Beanstalk would most likely want to follow is called a ________
strategy.
A) multinational
B) retrenchment
C) global
D) stability
Investors use the foreign exchange market for ________.
A) stock dilution
B) currency speculation
C) market capitalization
D) mean reversion
Which of the following terms is used to refer to the departure of highly educated people
from one profession, geographic region, or nation to another?
A) social mobility
B) repatriation
C) stratification
D) brain drain
________ refers to a situation in which facilities are spread over several locations, with
one facility for each national business environment in which the company markets its
products.
A) Continuous production
B) Decentralized production
C) Vertical integration
D) Lean production
Scenario: Silk Industries LLC
Silk Industries LLC comprises two major divisions: consumer products and industrial
products. The consumer product line of the company is well-recognized and consists of
loyal customers worldwide. The management is considering different types of
promotional strategies for the two product divisions.
If Silk Industries is interested in creating buyer demand that will encourage channel
members to stock its products, it should employ ________.
A) a pull strategy
B) a push strategy
C) horizontal integration
D) vertical integration
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
When selecting employees to help her establish their chain in China, she decides not to
transfer Craig, as he believes that the people of China are less competent and skilled
than the people of his country. What trait does Craig display?
A) individualism
B) imperialism
C) ethnocentricism
D) collectivism