Question 1

Production sharing is often called outsourcing.

Accepted Answer

A) True 
 B)False  True

Question 2

Discuss the five stages of international development.

Accepted Answer

The five stages of international development are as follows:
Stage 1 (Domestic Company): The primarily domestic company exports some of its products through local dealers and distributors in the foreign countries.
Stage 2 (Domestic Company with Export Division): Success in Stage I leads the company to establish its sales company with offices in other countries to eliminate the middlemen and to better control marketing.Because exports have now become more important,the company establishes an export division to oversee foreign sales offices.
Stage 3 (Primarily Domestic Company with International Division): The company now adds an international division with responsibilities for most of the business functions conducted in other countries.
Stage 4 (Multi-national Corporation with Multi-domestic Emphasis): Now a full-fledged multi-national corporation,the company increases its investments in other countries.The company establishes a local operating division or company in the host country.The product line is expanded,and local manufacturing capacity is established.Managerial functions are organized locally.Over time,the parent company acquires other related businesses,broadening the base of the local operating division.
Stage 5 (Multi-national Corporation with Global Emphasis): The most successful multi-national corporations move into a fifth stage in which they have worldwide personnel,R&D,and financing strategies.Global considerations now dominate organizational design.

Question 3

When a host government expropriates part or all of a foreign-owned company's holdings in its country,which means of international entry is common for firms to use?

Accepted Answer

A)  joint venture 
B)  acquisition 
C)  management contracts 
D)  production sharing 
E)  BOT 
A)  joint venture 
B)  acquisition 
C)  management contracts 
D)  production sharing 
E)  BOT C

Question 4

Exporting is popular for small businesses because of the Internet and rapid advance of overnight express services.

Accepted Answer

A) True 
 B)False

Question 5

For a multi-national corporation (MNC) to be considered global,it must manage its worldwide operations as if they were totally interconnected.

Accepted Answer

A) True 
 B)False

Question 6

What is the key to the successful implementation of strategic alliances?

Accepted Answer

A)  the selection of an appropriate country 
B)  the timing of the entry 
C)  the selection of the local partner 
D)  the size of the local partner firm 
E)  the political environment of the country 
A)  the selection of an appropriate country 
B)  the timing of the entry 
C)  the selection of the local partner 
D)  the size of the local partner firm 
E)  the political environment of the country

Question 7

A limitation of ROI as a measure of international performance is that

Accepted Answer

A)  it is a single comprehensive figure examining only one facet of the firm. 
B)  it provides disincentive to use existing assets efficiently. 
C)  it provides an incentive to acquire new assets. 
D)  it is very sensitive to depreciation policy. 
E)  it does not provide the basis for common comparison. 
A)  it is a single comprehensive figure examining only one facet of the firm. 
B)  it provides disincentive to use existing assets efficiently. 
C)  it provides an incentive to acquire new assets. 
D)  it is very sensitive to depreciation policy. 
E)  it does not provide the basis for common comparison.

Question 8

When designing a plan for repatriation,

Accepted Answer

A)  communication should begin as soon as the manager returns home. 
B)  it should always include details of the next international assignment. 
C)  the employee should be involved in how he or she would like to incorporate the skills learned at the home office. 
D)  little of the experience should be shared during the assignment. 
E)  the plan should be generic enough to apply to all expatriates. 
A)  communication should begin as soon as the manager returns home. 
B)  it should always include details of the next international assignment. 
C)  the employee should be involved in how he or she would like to incorporate the skills learned at the home office. 
D)  little of the experience should be shared during the assignment. 
E)  the plan should be generic enough to apply to all expatriates.

Question 9

A global MNC should use what type of controls over its foreign units?

Accepted Answer

A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group on all its foreign units collectively. 
A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group on all its foreign units collectively.

Question 10

A prior relationship with an alliance partner helps to develop

Accepted Answer

A)  a level of trust. 
B)  a larger profit. 
C)  a stronger contractual agreement. 
D)  less need on negotiations. 
E)  fewer personnel. 
A)  a level of trust. 
B)  a larger profit. 
C)  a stronger contractual agreement. 
D)  less need on negotiations. 
E)  fewer personnel.

Question 11

Which of the following is not true of global MNCs?

Accepted Answer

A)  Global MNCs emphasize international experience. 
B)  Global MNCs have a greater number of senior managers who have been expatriates. 
C)  Global MNCs have a strong focus on leadership development through the expat experience. 
D)  To improve organizational learning, many MNCs are providing expats with five year assignments. 
E)  Less emphasis is being placed on intercultural training for managers being sent on overseas assignments. 
A)  Global MNCs emphasize international experience. 
B)  Global MNCs have a greater number of senior managers who have been expatriates. 
C)  Global MNCs have a strong focus on leadership development through the expat experience. 
D)  To improve organizational learning, many MNCs are providing expats with five year assignments. 
E)  Less emphasis is being placed on intercultural training for managers being sent on overseas assignments.

Question 12

A multi-domestic MNC should use what type of controls on its foreign units?

Accepted Answer

A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group throughout the MNC. 
A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group throughout the MNC.

Question 13

Which measure was cited as the most important measure for international performance evaluation?

Accepted Answer

A)  rate of return 
B)  ROI 
C)  budget analysis 
D)  ROE 
E)  stock price 
A)  rate of return 
B)  ROI 
C)  budget analysis 
D)  ROE 
E)  stock price

Question 14

A joint venture reduces the risks of expropriation and harassment by host country officials.

Accepted Answer

A) True 
 B)False

Question 15

The vast majority of companies select employees for an international assignment based on their

Accepted Answer

A)  language skills. 
B)  ability to adapt. 
C)  cultural sensitivity. 
D)  technical expertise. 
E)  position in the organization. 
A)  language skills. 
B)  ability to adapt. 
C)  cultural sensitivity. 
D)  technical expertise. 
E)  position in the organization.

Question 16

When should an organization begin communication to discuss the repatriation process?

Accepted Answer

A)  when the expat accepts the assignment 
B)  6 months prior to the end of the assignment 
C)  when the expat returns home 
D)  6 months after the expat returns home 
E)  when the expat arrives at the foreign assignment 
A)  when the expat accepts the assignment 
B)  6 months prior to the end of the assignment 
C)  when the expat returns home 
D)  6 months after the expat returns home 
E)  when the expat arrives at the foreign assignment

Question 17

Research indicates that growing internationally is positively associated with firm profitability.

Accepted Answer

A) True 
 B)False

Question 18

Which means of international entry is a variation of the turnkey operation?

Accepted Answer

A)  joint venture 
B)  acquisition 
C)  green-field development 
D)  production sharing 
E)  BOT 
A)  joint venture 
B)  acquisition 
C)  green-field development 
D)  production sharing 
E)  BOT

Question 19

The London-based International Accounting Standards Board developed International Financial Reporting Standards (IFRS) to

Accepted Answer

A)  harmonize international accounting practices. 
B)  address transfer pricing. 
C)  replace GAAP. 
D)  enforce FASB standards. 
E)  standardize worldwide expatriate assignments. 
A)  harmonize international accounting practices. 
B)  address transfer pricing. 
C)  replace GAAP. 
D)  enforce FASB standards. 
E)  standardize worldwide expatriate assignments.

Question 20

Research suggests that joint ventures are more successful in international undertakings than are wholly owned subsidiaries.

Accepted Answer

A) True 
 B)False

Production sharing is often called outsourcing.

Discuss the five stages of international development.

When a host government expropriates part or all of a foreign-owned company's holdings in its country,which means of international entry is common for firms to use?

Exporting is popular for small businesses because of the Internet and rapid advance of overnight express services.

For a multi-national corporation (MNC) to be considered global,it must manage its worldwide operations as if they were totally interconnected.

What is the key to the successful implementation of strategic alliances?

A limitation of ROI as a measure of international performance is that

When designing a plan for repatriation,

A global MNC should use what type of controls over its foreign units?

A prior relationship with an alliance partner helps to develop

Which of the following is not true of global MNCs?

A multi-domestic MNC should use what type of controls on its foreign units?

Which measure was cited as the most important measure for international performance evaluation?

A joint venture reduces the risks of expropriation and harassment by host country officials.

The vast majority of companies select employees for an international assignment based on their

When should an organization begin communication to discuss the repatriation process?

Research indicates that growing internationally is positively associated with firm profitability.

Which means of international entry is a variation of the turnkey operation?

The London-based International Accounting Standards Board developed International Financial Reporting Standards (IFRS) to

Research suggests that joint ventures are more successful in international undertakings than are wholly owned subsidiaries.

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

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Exam 9: Strategy Implementation: Global Strategy

Production sharing is often called outsourcing.

Discuss the five stages of international development.

When a host government expropriates part or all of a foreign-owned company's holdings in its country,which means of international entry is common for firms to use?

Exporting is popular for small businesses because of the Internet and rapid advance of overnight express services.

For a multi-national corporation (MNC) to be considered global,it must manage its worldwide operations as if they were totally interconnected.

What is the key to the successful implementation of strategic alliances?

A limitation of ROI as a measure of international performance is that

When designing a plan for repatriation,

A global MNC should use what type of controls over its foreign units?

A prior relationship with an alliance partner helps to develop

Which of the following is not true of global MNCs?

A multi-domestic MNC should use what type of controls on its foreign units?

Which measure was cited as the most important measure for international performance evaluation?

A joint venture reduces the risks of expropriation and harassment by host country officials.

The vast majority of companies select employees for an international assignment based on their

When should an organization begin communication to discuss the repatriation process?

Research indicates that growing internationally is positively associated with firm profitability.

Which means of international entry is a variation of the turnkey operation?

The London-based International Accounting Standards Board developed International Financial Reporting Standards (IFRS) to

Research suggests that joint ventures are more successful in international undertakings than are wholly owned subsidiaries.

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters