MGT160-SP. INTERNATIONAL BUSINESS (MGT160-SP)> TAKE ASSESSMENT: FINAL EXAM Take Assessment: Final Exam InstructionsThis exam consists of 100 equally weighed questions. Always pick the single best answer. Questions that are skipped or are submitted with multiple answers will be scored as incorrect. Multiple AttemptsThis Test allows 2 attempts. This is attempt number 1. Force CompletionThis Test can be saved and resumed later. Question Completion Status: Question 1 ________ suggests the need for job security whereas people with ________ would probably be motivated by more risky opportunities for variety and fast-track advancement. High uncertainty; low uncertainty Low uncertainty; high uncertainty High power distance; low power distance Lower power distance; high power distance Question 2 Effective ________ involves the ability to inspire and influence the thinking attitudes and behavior of people anywhere in the world. global leadership ethnocentric leadership polycentric leadership virtual leadership Question 3 ________ suggests that most people would be more comfortable with the traditional division of work and roles; in a ________ culture the boundaries could be looser motivating people through more flexible roles and work networks. High masculinity; more feminine A more feminine culture; masculine High uncertainty; low uncertainty Low uncertainty; high uncertainty Question 4 Which of the following is a factor identified in the Meaning of Work (MOW) research study? work keeps one occupied work provides a needed income work provides contacts with others all of these Question 5 In order to motivate its managers and employees Fujitsu ________. tied pay to performance raised the incentive pay cut managers’ salaries by several percent all of these Question 6 In Michailova’s study Russian employees were more motivated by ________ of their Russian managers than by attempts of empowerment by Western managers. authoritarianism patriarchy autonomy pluralism Question 7 Employees in countries that rank low on power distance are more likely to prefer a(n) ________ leadership style. autocratic participative charismatic transformational Question 8 Which of the following is the most common reason given for absenteeism among Mexican workers? illness taking care of sick relatives and elderly parents dissatisfaction with the job personal problems Question 9 People in highly individualistic countries like United States are likely to be motivated by ________. opportunities for individual advancement and autonomy appeals to group goals rewards that are collective rather than individualistic all of these Question 10 “Kaizen” in the Japanese system is ________. quality control circles leadership improvement programs subordinate enthusiasm programs continuous improvement efforts Question 11 Kanungo and Wright recommend that efforts to improve managerial performance in UK should focus on ________. job content job context security fringe benefits Question 12 For most people the basic meaning of work refers to ________. self-fulfillment self-identity team or group membership economic necessity Question 13 Whereas Americans believe that hard work will get the job done many Hong Kong Chinese believe that outcomes will be determined by ________. family social standing luck education Question 14 The ________ model of leadership style has been recommended by American research studies as one more likely to have positive results with American employees. autocratic charismatic transactional democratic Question 15 In Taiwan the most highly sought reward is ________. pay security recognition from peers recognition from the top and affection Question 16 The ________ leader is someone who is for example a visionary an inspiration to subordinates and performance-oriented. charismatic team-oriented participative self-protective Question 17 Which category is not typically included among global corporate objectives? research and development entrepreneurship profitability production Question 18 All of the following are examples of pressures to globalize except ________. increasing competitive clout resulting from regional trading blocs declining tariffs which encourage trading across borders and open up new markets the information technology explosion which increases the commonality of consumer tastes all of the selections are correct Question 19 ________ is a term that refers to the establishment of worldwide operations and the development of standardized products and marketing. Customization Globalization Nationalization Internationalization Question 20 The cost of operating a subsidiary in EU is high due to ________. high labor costs high taxation harmonization codes that have to be adhered to all of these Question 21 What is perhaps the most likely reason why McDonald’s has aggressively expanded internationally? to cut costs to find new sources of financing to overcome limited expansion opportunities at home to establish economies of scale Question 22 A ________ gives a foreign company the rights to manage the daily operations of a business but not to make decisions regarding ownership financing or strategy and policy changes. franchise management contract turnkey operation contract manufacturing agreement Question 23 Under which condition is the licensing strategy generally not appropriate? for firms with diverse product lines for firms with many financial and managerial resources when competition is intense for firms with rapidly changing technology Question 24 MNCs that have a subsidiary in EU but based in non EU country sometimes have an advantage because of ________. superior competitiveness and research and development an existing foothold in the market reduced operating expenses as you need to have just one subsidiary for all of EU all of these Question 25 The internal analysis focuses on the company’s ________. mission past strategy future strategy resources and operations Question 26 One of the quickest and cheapest ways to develop a global strategy is through ________. exporting wholly owned subsidiaries strategic alliances importing Question 27 Which of the following is not an advantage of using a licensing agreement? Licensing avoids the tariffs and quota usually imposed on exports. A licensor has total control over the licensee’s performance. Licensing is a relatively low-risk strategy because it requires little investment. Licensing is especially suitable for the mature phase of a product’s life cycle. Question 28 Which of the following can be considered to be trade barriers that companies seek to overcome by going international? tariffs quotas buy-local policies all of these Question 29 Regional strategies are more appropriate than global strategies for firms which operate in what kind of situation? multi-domestic industries high-tech industries newly emerging industries mature industries which have been in existence for several decades Question 30 ________ is (are) diagnostic tool(s) available to the a company to conduct an internal resource audit. Financial ratios Sales force analysis Financial ratios and sales force analysis Neither Financial ratios nor sales force analysis Question 31 Strategic planning is usually done by ________. CEO and top managers bottom up – by employees who submit plans to supervisors middle managers who know both the workers and the lower level staff the stockholders Question 32 The core competencies of a company involve its ________. key weaknesses and threats mission and purpose key customer groups key strengths Question 33 Governments often attract foreign investment by providing incentives such as ________. use of property reduced taxes or tax holidays cheap loans all of these Question 34 Local managers are hired to fill key positions in their own company under ________ staffing approach. global polycentric ethnocentric regiocentric Question 35 According to research ________ has been the most frequently cited reason for the failure of expatriate managers who work in foreign subsidiaries of U.S. or European companies. inability of the spouse to adjust lack of training at the beginning of the process lack of training during the repatriation part of the process culture incompatibility Question 36 Which of the following are examples of stage irritation and hostility stage of culture shock? homesickness disorientation lashing out all of these Question 37 Expatriates from which nation seem to have the highest probability of success in their overseas assignment? Sweden Great Britain Italy Japan Question 38 Most MNCs with time move to a polycentric or regiocentric staffing approach because ________. local governments put pressure to hire local nationals there is greater cost to hiring expatriates local managers have increased their level of managerial and technical competence all of these Question 39 Which staffing approach will most likely be effective when implementing a global strategy of regionalization (“acting local”)? polycentric regiocentric ethnocentric global Question 40 Which of the following are areas critical to expatriate preparation for an international assignment? cultural training language instruction familiarity with everyday matters all of these Question 41 ________ occurs when a manager is transferred to another part of the country where there are cultural differences – essentially from what she or he perceives to be a “majority” culture to a “minority” one. Subculture shock Culture shock Acculturation shock Repatriation shock Question 42 Which of the following are components of the expatriates total compensation package? salary tax equalization allowances and benefits all of these Question 43 ________ is the only source of sustainable competitive advantage available to U.S. companies. Sourcing of cheap raw materials The caliber of its people Information technology Capital Question 44 The direct cost alone of a failed expatriate assignment is estimated to be ________. $10 000-$20 000 $20 000-$40 000 $50 000-$70 000 $50 000-$150 000 Question 45 Which of the following international staffing approaches can produce a specific mix of PCNs HCNs and TCNs? ethnocentric polycentric subcentric regiocentric Question 46 Which of the following staffing approaches has the broadest geographical scope? regiocentric global ethnocentric polycentric Question 47 According to research by Tung most U.S. firms failed to include ________ in their assessment of candidates for potential international experience. ability to learn languages quickly ability to adapt to other cultures quickly human relational abilities previous experience living in different cultures Question 48 ________ are also called expatriates. Parent-country nationals Host-country nationals Third-country nationals Cross-country nationals Question 49 When it is important to satisfy a country’s legal requirement that a specific proportion of the firm’s top managers be citizens of that particular country which staffing approach has the highest potential? ethnocentric global regiocentric polycentric Question 50 In the ________ staffing approach the best managers are recruited from within or outside of the company regardless of nationality. regiocentric global ethnocentric polycentric Question 51 Which of the following is an indication of the need for change in organization design? a change in the size of the corporation a change in key individuals morale problems all of these Question 52 The end goal and overall contingency of organizational structure is that it ________. brings about operations efficiency brings about tight control of subsidiaries provides for balanced control of subsidiaries facilitates implementation of desired strategy Question 53 The ________ strategy is to maximize opportunities for both efficiency and local responsiveness by adopting a structure that uses alliances networks and horizontal design formats. transnational domestic international global Question 54 Marketing oriented companies like Nestle and Unilever are more likely to use a global ________ structure since products can be adapted to local requirements. functional geographic matrix cluster Question 55 Non-financial measures of performance evaluation of subsidiaries are ________. productivity measures market share measures public image measures all of these Question 56 The way a firm is organized along the ________ dimension determines how well its strategies will be implemented. local — global high-tech — low tech homogeneous — diversity differentiation — integration Question 57 All of the following are typical ways in which firms organize their international activities except ________. domestic structure plus export department domestic structure plus foreign subsidiary international division cultural structure Question 58 The creation of a(n) ________ facilitates the beginning of a global strategy. local division international division transnational division matrix division Question 59 With a transnational strategy the need for complex integrating mechanisms is ________ while in an international strategy the need is ________. very high; very low very low; high very high; medium medium; very high Question 60 Structure must fit ________ or it will not work. the environment corporate traditions and history cultural factors strategy Question 61 A specific strategy that treats the world as one market by using a standardized approach to products and markets is called ________. globalization transnationalization differentiation integration Question 62 With Samsung’s new reorganization managers ________. have to go through several layers of hierarchy to get new products and plans approved can approve the new products and plans themselves have to go through fewer layers of hierarchy to get new products and plans approved cannot get new products and plans approved Question 63 According to the author most likely the future for MNC structure lies in ________. a global web of networked companies a global functional structure a global product structure centralized hierarchy Question 64 What is the downside of rationalization? too much emphasis on centralized decision making over-reliance on decentralized decision making use of the matrix structure lack of differentiation in local markets Question 65 Transnational structure such as what ABB has is less a matter of boxes on an organizational chart and more a matter of ________. controls communication alliances changes Question 66 An international division may be organized along what lines? vertical and horizontal differentiated and integrated centralized and decentralized functional product geographic Question 67 Which of the following is not recognized as a financial variable in MNC reports that complicates financial statements and performance evaluations? exchange rates inflation levels transfer prices political systems Question 68 One of the main dimensions an international manager must consider is the role of labor in ________. decisions concerning employee well-being new international supplier talks advertising and promotional strategy all of these Question 69 In ________ collective bargaining takes place between a local labor union and management. Japan the U.S. and Canada Europe the U.S. and Europe Question 70 In Japan what is a “gaijin”? a female worker a female manager a male who works for a female a foreigner Question 71 The most difficult challenge for women working overseas seems to be ________. learning how to adjust to men they must work with learning how to accept the role of women in the culture they work in getting the overseas assignment in the first place receiving adequate compensation for the overseas assignment Question 72 Which of the following is a reason for falling union membership in Europe? increase in proportion of white collar and service workers rising proportion of temporary and part-time workers reduced belief in unions by the younger generation all of these Question 73 Which of the following are components of developing an international cadre? preparation adaptation repatriation all of these Question 74 Which of the following is an operational challenge for a global virtual team with respect to cultural differences? variations in attitudes and expectations towards time variations in sets of norms and patterns of behavior variations in goal sets and work styles based on value of work all of these Question 75 The term ________ describes collections of managers from several countries who must rely on group collaboration if each member is to experience optimum success and goal achievement. global management teams specialized management teams virtual management teams objective management teams Question 76 According to Adler which of the following are skills likely to be acquired by managers returning from an overseas alignment? tolerance for ambiguity multiple perspectives ability to work with and manage others all of these Question 77 Common host country entry issues include all of the following except ________. motivation adjustment departure and travel arrival and orientation on-site briefing Question 78 ________ occurs primarily because of the difficulty of reintegration into the organization. Reverse culture shock Culture shock Virtual culture shock Assimilation Question 79 According to the former Deputy Chairman of Pirelli if you want to close a plant in Italy France Spain or Germany you need to notify which of the following groups of even the possibility of closure? the state the local community the trade unions all of these Question 80 Which of the following is not recognized as a source of origin of unions? government regulation of unions economic and unemployment factors technological issues all of these Question 81 In the U.S. union membership ________. has been increasing and is now over 18% of the population has been decreasing and is now only 11% of the population is higher than in Europe although it has decreased to 18% has declined about 50% in the last 20 years Question 82 All of the following are causes of convergence in labor relation practices except ________. external competitive forces increased world trade frequent moves of MNCs the great success of codetermination Question 83 What did Philip Shearer (Clinique) learn from living in different countries? humility and the notion that nothing is easy for everyone people will trust you if you are trustworthy and credible wherever you are you have to deliver all of these Question 84 Research has identified three control dimensions in international joint ventures: the extent of degree of control the mechanisms of control and the ________. objective of control focus of control locus of control culture of control Question 85 All of the following are motives for forming cross-border alliances except to ________. gain access to specific markets gain market share avoid protectionist legislation reduce political risk Question 86 All of the following are examples of international joint venture control mechanisms except ________. contracts reporting arrangements government controls participation in planning and budgeting Question 87 Which of the following are knowledge management processes? transfer of existing knowledge transformation and creation of knowledge harvest of knowledge from IJV to parents all of these Question 88 One of the key differences between Western and Hungarian managerial systems is that while ________. Americans are driven by market-driven technology Hungarians are driven by volume-driven technology Americans have large hierarchical structures Hungarians have flat structures Americans have opaque information systems Hungarians have transparent information systems Americans have administrative HR systems Hungarians have strategic HR systems. Question 89 Europe’s largest multinational corporations employ more than ________ Americans. 500 000 900 000 1 900 000 2 900 000 Question 90 “Krysha”in Russian refers to ________. the term for your joint venture partner a term for the local mafia money paid for protection the legal system in Russia Question 91 In a study of 153 corporate alliances researchers found that the choice of “means of governance” depended on concern regarding ________. control over type of structure used control over information flows pertaining to technology control over markets control over distribution strategies Question 92 Among the benefits of cross-border alliances are all of the following except to ________. gain entry into new markets reduce costs take advantage of synergies all of these Question 93 ________ are partnerships between two or more firms who decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages. Strategic alliances Export management companies Company subsidiaries Turnkey operations Question 94 Which of the following is a concern that American computer makers have with production in China? The Chinese market is not large enough to sell their products domestically. There will be loss of intellectual property if Chinese companies co-produce the computers. There are not enough high skilled workers available in China for American companies. all of these Question 95 ________ are working partnerships between companies across national boundaries and increasingly across industries. Global strategic alliances National strategic alliances Domestic strategic alliances Transitional strategic alliances Question 96 An international joint venture’s best chance of success is to be ________ to retain control of supplies and access to customers. horizontally integrated vertically integrated virtually integrated cross integrated Question 97 Which of the following is not one of the primary categories under which alliances typically fall? joint ventures equity strategic alliances nonequity strategic alliances transmodal strategic alliances Question 98 How did Wal-Mart enter Japan? by selling through a sales agent by teaming up with Coco- Cola by acquiring an already existing grocery chain by entering into a joint venture with K Mart Question 99 ________ is a typical reason for forming cross-border alliances. Avoiding import barriers Sharing R&D costs Gain access to specific markets all of these Question 100 Which of the following is not related to using indirect mechanisms to control an international joint venture? parent organizational and reporting structure staffing policies close coordination with the international joint venture general manager all of these
