Question 1

Using third-country nationals

Accepted Answer

A)  eliminates misunderstandings with local employees. 
B)  eliminates conflicts with the host country's government. 
C)  is a widespread practice among European firms. 
D)  decreases the opportunities for promotion. 
E)  is the transfer of parent company managers to an international assignment. 
A)  eliminates misunderstandings with local employees. 
B)  eliminates conflicts with the host country's government. 
C)  is a widespread practice among European firms. 
D)  decreases the opportunities for promotion. 
E)  is the transfer of parent company managers to an international assignment.

Question 2

The global MNC faces the dual challenge of achieving scale economies through standardization while at the same time responding to

Accepted Answer

A)  increased competition. 
B)  local customer differences. 
C)  higher prices. 
D)  global economics. 
E)  increased shipping expenses. 
A)  increased competition. 
B)  local customer differences. 
C)  higher prices. 
D)  global economics. 
E)  increased shipping expenses.

Question 3

The first stage of international development is the domestic company.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not one of the ways MNCs can reduce taxes and capture profits from a subsidiary?

Accepted Answer

A)  dividends 
B)  royalties 
C)  management fees 
D)  transfer pricing 
E)  exporting 
A)  dividends 
B)  royalties 
C)  management fees 
D)  transfer pricing 
E)  exporting

Question 5

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to

Accepted Answer

A)  evaluate performance. 
B)  minimize taxes. 
C)  control imports. 
D)  improve communication. 
E)  move corporate headquarters. 
A)  evaluate performance. 
B)  minimize taxes. 
C)  control imports. 
D)  improve communication. 
E)  move corporate headquarters.

Question 6

The danger in using primarily foreign nationals to staff managerial positions in subsidiaries is the increased likelihood of suboptimization.

Accepted Answer

A) True 
 B)False

Question 7

To be successful with a global emphasis,firms may not skip across stages of development.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not identified as a key driver for strategic fit between alliance partners?

Accepted Answer

A)  The alliance must be important to both partners. 
B)  Joint activities must have added value for customers and the partners. 
C)  The alliance must be accepted by key stakeholders. 
D)  Partners contribute key strengths, but protect core competencies. 
E)  Partners must independently achieve their goals. 
A)  The alliance must be important to both partners. 
B)  Joint activities must have added value for customers and the partners. 
C)  The alliance must be accepted by key stakeholders. 
D)  Partners contribute key strengths, but protect core competencies. 
E)  Partners must independently achieve their goals.

Question 9

Acquisitions are usually a far more complicated and expensive operation than green-field development.

Accepted Answer

A) True 
 B)False

Question 10

Which means of international entry is often called outsourcing?

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 11

An MNC uses which international strategy for entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?

Accepted Answer

A)  licensing 
B)  joint ventures 
C)  exporting 
D)  production sharing 
E)  acquisitions 
A)  licensing 
B)  joint ventures 
C)  exporting 
D)  production sharing 
E)  acquisitions

Question 12

The term production sharing was coined by Alfred Chandler.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a recommendation to improve the entire expat process?

Accepted Answer

A)  Keep reasons for international assignments broad. 
B)  Assign mentors in both the home country and the host country. 
C)  Develop a means of maintaining open, frequent communication throughout the process. 
D)  Design a plan for repatriation. 
E)  Develop an approach for sharing the international experience within the company. 
A)  Keep reasons for international assignments broad. 
B)  Assign mentors in both the home country and the host country. 
C)  Develop a means of maintaining open, frequent communication throughout the process. 
D)  Design a plan for repatriation. 
E)  Develop an approach for sharing the international experience within the company.

Question 14

Which country has been the location of choice for MNCs to move their operations and/or headquarters due to its 12.5% corporate tax rate?

Accepted Answer

A)  Ireland 
B)  Japan 
C)  India 
D)  Mexico 
E)  South Korea 
A)  Ireland 
B)  Japan 
C)  India 
D)  Mexico 
E)  South Korea

Question 15

Licensing grants rights to another company to open a retail store using the franchiser's name and operating system.

Accepted Answer

A) True 
 B)False

Question 16

Most human resource managers fail to develop the training necessary for international assignments because

Accepted Answer

A)  most have not worked abroad themselves and have little understanding of the unique challenges of these positions. 
B)  most think this training is unnecessary. 
C)  the financial resources are not available. 
D)  the time is too limited for extensive training to be delivered before the assignment. 
E)  cultural training resources and experts are not available to the firm. 
A)  most have not worked abroad themselves and have little understanding of the unique challenges of these positions. 
B)  most think this training is unnecessary. 
C)  the financial resources are not available. 
D)  the time is too limited for extensive training to be delivered before the assignment. 
E)  cultural training resources and experts are not available to the firm.

Question 17

Licensing is an especially useful strategy if the brand name is well known but the firm does not have the funds to finance its entering the country directly.

Accepted Answer

A) True 
 B)False

Question 18

An MNC should use loose controls on its foreign units,but a global MNC needs tight controls over its many units.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not true of the stages of international development?

Accepted Answer

A)  Corporations operating internationally tend to evolve through five common stages. 
B)  Stage 1 of international development is the domestic company. 
C)  In Stage 4 of international development, the company adds an international division with responsibility for most of the business functions conducted in other countries. 
D)  In Stage 2 of international development, the firm is a domestic company with an export division. 
E)  In Stage 5 of international development, all managers are responsible for dealing with international as well as domestic issues. 
A)  Corporations operating internationally tend to evolve through five common stages. 
B)  Stage 1 of international development is the domestic company. 
C)  In Stage 4 of international development, the company adds an international division with responsibility for most of the business functions conducted in other countries. 
D)  In Stage 2 of international development, the firm is a domestic company with an export division. 
E)  In Stage 5 of international development, all managers are responsible for dealing with international as well as domestic issues.

Question 20

The BOT concept stands for Build,Operate,Transfer.

Accepted Answer

A) True 
 B)False

Using third-country nationals

The global MNC faces the dual challenge of achieving scale economies through standardization while at the same time responding to

The first stage of international development is the domestic company.

Which of the following is not one of the ways MNCs can reduce taxes and capture profits from a subsidiary?

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to

The danger in using primarily foreign nationals to staff managerial positions in subsidiaries is the increased likelihood of suboptimization.

To be successful with a global emphasis,firms may not skip across stages of development.

Which of the following is not identified as a key driver for strategic fit between alliance partners?

Acquisitions are usually a far more complicated and expensive operation than green-field development.

Which means of international entry is often called outsourcing?

An MNC uses which international strategy for entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?

The term production sharing was coined by Alfred Chandler.

Which of the following is not a recommendation to improve the entire expat process?

Which country has been the location of choice for MNCs to move their operations and/or headquarters due to its 12.5% corporate tax rate?

Licensing grants rights to another company to open a retail store using the franchiser's name and operating system.

Most human resource managers fail to develop the training necessary for international assignments because

Licensing is an especially useful strategy if the brand name is well known but the firm does not have the funds to finance its entering the country directly.

An MNC should use loose controls on its foreign units,but a global MNC needs tight controls over its many units.

Which of the following is not true of the stages of international development?

The BOT concept stands for Build,Operate,Transfer.

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

Exam 9: Strategy Implementation: Global Strategy

Using third-country nationals

The global MNC faces the dual challenge of achieving scale economies through standardization while at the same time responding to

The first stage of international development is the domestic company.

Which of the following is not one of the ways MNCs can reduce taxes and capture profits from a subsidiary?

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to

The danger in using primarily foreign nationals to staff managerial positions in subsidiaries is the increased likelihood of suboptimization.

To be successful with a global emphasis,firms may not skip across stages of development.

Which of the following is not identified as a key driver for strategic fit between alliance partners?

Acquisitions are usually a far more complicated and expensive operation than green-field development.

Which means of international entry is often called outsourcing?

An MNC uses which international strategy for entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?

The term production sharing was coined by Alfred Chandler.

Which of the following is not a recommendation to improve the entire expat process?

Which country has been the location of choice for MNCs to move their operations and/or headquarters due to its 12.5% corporate tax rate?

Licensing grants rights to another company to open a retail store using the franchiser's name and operating system.

Most human resource managers fail to develop the training necessary for international assignments because

Licensing is an especially useful strategy if the brand name is well known but the firm does not have the funds to finance its entering the country directly.

An MNC should use loose controls on its foreign units,but a global MNC needs tight controls over its many units.

Which of the following is not true of the stages of international development?

The BOT concept stands for Build,Operate,Transfer.

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