Archives: Quiz

Organizational behavior is primarily concerned with group interactions. One place in which technology has little impact is the fast-food restaurant business. FALSE Explanation: Companies are using technology to do all sorts of things to improve productivity in fast-food restaurants. For […]

Operations management is a subsystem of the transformation process. A successful visionary leader “jump-starts” the future. TRUE Explanation: Successful visionary leaders create a powerful image of a possible future that is easy to grasp. Followers latch on to this vision […]

High cohesiveness always results in a productivity increase. Team leadership is becoming less important in today’s world because teams don’t need leaders. FALSE Explanation: All teams need leaders. If anything, team leadership is becoming more important in the current business […]

Departmentalization is how jobs are grouped. Productivity is not important to value chain management. FALSE Explanation: Though value chain management is more effectiveness than efficiency oriented, productivity is still important. For example, customers may want a great pair of sneakers, […]

Vroom and Yetton’s leader-participation model suggests that leaders should adjust to the situation. The number of managers who face “white-water rapids” metaphor conditions is getting smaller. FALSE Explanation: In today’s world, “white-water” situations are on the increase rather than the […]

Selective perception involves a listener hearing what he or she wants to hear. Studying management can be extremely useful even for those who don’t plan to be managers themselves. TRUE Explanation: Most people will either be managers or be managed. […]

It is a good idea for an entrepreneur to develop a network of trusted friends and advisors to help with problems and decisions. When decisions tend to be made at lower levels in an organization, the organization is said to […]

Allowing employees to participate in the change process is NOT a common way to deal with resistance to organizational change. Deming’s 14 points were useful in their time but are now largely considered to be obsolete. FALSE Explanation: Deming’s 14 […]

Creativity is valued because it helps identify new and viable alternatives that have not previously been considered. Research has shown that a majority of American employees trust the leaders of the companies they work for. FALSE Explanation: According to a […]

Nonvisionary entrepreneurial leaders usually outperform visionary entrepreneurial leaders. Managers identify a problem by comparing the current state of affairs to some standard. TRUE Explanation: The standard for comparison might be a goal that has been set or comparison with some […]

Nonverbal communication is an important part of active listening. Jargon has no place in effective communication. FALSE Explanation: Jargon is shorthand language and can be useful among individuals who are working close together on the same project. A current ratio […]

An advantage of the geocentric outlook to staffing is ________. A) encouraging workers to appreciate the unique virtues of a particular country B) giving people a flexible perspective for fitting operations to different countries C) removing most behavioral barriers to […]

Licensing companies commonly negotiate a “front-end” payment from licensees to cover ________ transfer costs. A) employee B) brand name C) technology D) copyright A ________ is a special outlook, skill, capability, or technology that runs through the firm’s operations, weaving […]

Hotel chains are large providers of international management services through collaborative operations. All of the following are reasons for this EXCEPT which one? A) Some governments have restricted foreign ownership in hotels. B) Local hotel owners may be very knowledgeable […]

NAFTA is a good example of ________. A) trade divestment B) trade diversion C) the theory of trade disruption D) the theory of trade implementation The view that globalization is inevitable is most likely based on the belief that ________. […]

Which of the following ideas calls for assessing a country’s performance based on factors such as life expectancy, leisure time, and income equality? A) microeconomics B) happynomics C) macroeconomics D) green economics Which of the following would LEAST likely be […]

Which of the following statements is most likely true about the postconventional level of moral development? A) Individuals learn what is moral but not why such behavior is moral. B) Individuals behave morally because they fear negative repercussions. C) Individuals […]

According to the text, what is the most common concern that expatriates have before they move overseas? A) reestablishing a social life B) missing friends and family C) learning a foreign language D) adapting to the culture Which of the […]

The ________ sets the expatriate’s salary in terms of the salary of a comparable job in the city where the MNE has its headquarters. A) host-based method B) home-based method C) headquarters-based method D) culturally based method Which of the […]

It is most accurate to say that within most nations’ borders, people largely share such essential attributes as ________ and ________. A) work attitudes; occupations B) lifestyles; education level C) education level; ethnicity D) values; language A U.S. firm is […]

Which type of exchange rate arrangement is based on supply and demand? A) soft peg B) hard peg C) crawling D) floating Research has shown that past exchange rates are an accurate predictor of future exchange rates ________. A) only […]

Market economies are primarily characterized by ________. A) formal cooperation among government, companies, and workers to achieve stable growth B) heavy government spending and high taxation to pay for a range of social services C) minimal governmental participation D) restricted […]

If a foreign subsidiary is located in a low tax country, the parent company would probably use a ________. A) high transfer price on inventory shipped from the parent to the subsidiary B) high transfer price on goods sold by […]

Expatriate failure, defined in broad terms, refers to the ________. A) manager’s premature return home due to poor job performance B) manager’s miscues, which give competitors a market advantage C) unintentional dilution of the company’s core competency D) poor expatriate […]

All of the following forces are leading to convergence of accounting standards around the world EXCEPT ________. A) global integration of capital markets B) need of MNE’s to raise capital outside of their home markets C) pressure from investors for […]

When examining economic and demographic variables to compare countries’ sales potential for your product, which the following should you NOT consider? A) Countries may depend heavily on the import of raw materials. B) Consumers in some countries may more conveniently […]

The long-term financing dimension of cash management ________. A) deals with the selection, issuance, and management of long-term debt and equity B) is unaffected by currency changes because everyone borrows in U.S. dollars C) focuses on the analysis of investment […]

What is the primary difficulty associated with dismantling developed countries’ agricultural subsidies? A) Rural areas in the United States, the European Union, and Japan are disproportionately represented in their governments. B) Developing countries put pressure on developed countries to maintain […]

Small and medium-size enterprises, such as SpinCent as seen in the opening case for chapter 14, account for ________ of all U.S. exporters. A) 38% B) 54% C) 79% D) 98% Which of the following accurately identifies a difference between […]

If a U.S.-based MNE translates its German subsidiary’s financial statements from euros into dollars using the current-rate method, how would it recognize translation gains and losses? A) Gains and losses would be taken to the income statement. B) Gains and […]

The theory of absolute advantage holds that there are advantages to trade because different countries can produce different goods more efficiently than others. When entering foreign countries, many franchisors encounter difficulty in transferring the domestic success factors of product and […]

An advantage of collaborative agreements is the ability to spread faster geographically. A currency sells at a forward premium when the forward rate is greater than the spot rate. TRUE Learning Outcome: Describe the functions of the foreign-exchange market A […]

Export controls are highly effective for digital products, such as computers, TVs, and cameras. Most world trade takes place between raw material exporters and manufacturing exporters. FALSE An arbitrageur is an exporter that seeks to conduct countertrade in emerging markets. […]

An effective code of conduct reports results to external stakeholders. An internal code of conduct is a set of guidelines, recommendations, and rules issued by entities within society but outside the firm with the intent of affecting the behavior of […]

Totalitarianism is a political ideology that typically involves constant indoctrination of the population by agents of the government to eliminate dissent. The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the […]

Logistics is also known as materials management. Strategies to reduce operational costs are linked to efficiency. TRUE Learning Outcome: Describe how global production and logistics decisions are made According to the unity-of-command principle, workers and organizations benefit the most from […]

The process of shifting production to a foreign country is known as outsourcing. Very few commodity agreements are successful in bringing together supplier and consumer countries to stabilize commodity prices. TRUE Learning Outcome: Discuss arguments for and against regional economic […]

When a company does business in another country whose official language is the same as the company’s home country, employees can assume that although some spellings are different, words will mean the same thing. A growing number of MNEs in […]

In the long run, MNEs must adequately meet the needs of all stakeholders in order to prosper and survive. The factor proportions theory holds that countries should concentrate production on those products that use their most abundant production factors. TRUE […]

The major trade groups in South America are CAN and Mercosur. The Malcolm Baldrige National Quality Award is an example of a general standard that is presented annually to companies that demonstrate quality strategies and achievements. TRUE Producers are affected […]

A common law system is based on tradition, judge-made precedent, and usage in which the courts assign a preeminent position to existing case law to guide dispute resolution. The government considers itself a better judge of resource allocation than businesses […]

Committing resources to one country usually means forgoing or delaying projects in others. Innovation is the ability of the production process to make different kinds of products and to adjust the volume of output. FALSE Learning Outcome: Describe how global […]

EDI is software that can link information flows from different parts of a business and from different geographic areas. Collaborative agreements allow companies to specialize more in those activities that best fit their competencies. TRUE Learning Outcome: Summarize the main […]

The marketing approach a company takes internationally should be compatible with its overall aims and strategies. The lack of cultural guidebooks and research specifically for international managers poses a significant problem for global firms. FALSE Learning Outcome: Explain how differences […]

Studies of repatriated employees regularly report that most knew what their company position would be when they returned home but were uncertain about their likely new workplace practices. In collaborative arrangements, when one partner cedes control to another partner, it […]

British MNEs are more likely to use the forecast exchange rate to set the budget. On average, workers displaced by imports earn higher wages in the new jobs they accept. FALSE Learning Outcome: Discuss arguments for and against government intervention […]

An increase in interest rates might ________ saving because more can be earned in interest income. A) encourage B) discourage C) disallow D) invalidate In the simple deposit expansion model, if the Fed purchases $100 worth of bonds from a […]

The ability of a central bank to set monetary policy goals is A) political independence. B) goal independence. C) policy independence. D) instrument independence. If the Fed injects reserves into the banking system and they are held as excess reserves, […]

The concept of diversification is captured by the statement A) don’t look a gift horse in the mouth. B) don’t put all your eggs in one basket. C) it never rains, but it pours. D) make hay while the sun […]

Which of the following can be described as involving indirect finance? A) You make a loan to your neighbor. B) You buy shares in a mutual fund. C) You buy a U.S. Treasury bill from the U.S. Treasury at Treasury […]