Question 1

Which of the following is not considered a reason why international assignments end in failure?

Accepted Answer

A)  Family problems 
B)  Culture shock 
C)  A poor benefits package 
D)  Lack of pre-departure cross-cultural training 
A)  Family problems 
B)  Culture shock 
C)  A poor benefits package 
D)  Lack of pre-departure cross-cultural training

Question 2

The trade agreement that allows the free flow of agricultural products between the United States and Mexico is

Accepted Answer

A)  NAFTA. 
B)  GATT. 
C)  WTO. 
D)  APEC. 
A)  NAFTA. 
B)  GATT. 
C)  WTO. 
D)  APEC.

Question 3

What is considered a major advantage of exporting?

Accepted Answer

A)  The exporting firm receives high royalties. 
B)  A local partner provides important local know-how. 
C)  Savings are realized through economies of scale. 
D)  Firms share development costs. 
A)  The exporting firm receives high royalties. 
B)  A local partner provides important local know-how. 
C)  Savings are realized through economies of scale. 
D)  Firms share development costs.

Question 4

A manufacturing firm might be expected to begin globalization by which entry mode?

Accepted Answer

A)  Turnkey projects 
B)  Franchising 
C)  Wholly owned subsidiaries 
D)  Exporting 
A)  Turnkey projects 
B)  Franchising 
C)  Wholly owned subsidiaries 
D)  Exporting

Question 5

Which type of risk is represented by government changes, terrorism, and social unrest?

Accepted Answer

A)  Economic 
B)  Political 
C)  Demographic 
D)  Legal 
A)  Economic 
B)  Political 
C)  Demographic 
D)  Legal

Question 6

The most expensive way of operating in foreign markets is

Accepted Answer

A)  strategic alliances. 
B)  wholly owned subsidiaries. 
C)  exporting. 
D)  franchising. 
A)  strategic alliances. 
B)  wholly owned subsidiaries. 
C)  exporting. 
D)  franchising.

Question 7

Employees from a culture that is high in individualism would likely value which of the following?

Accepted Answer

A)  Team accomplishment 
B)  Belief in the hand of fate 
C)  Personal accomplishment 
D)  Sacrifice for others 
A)  Team accomplishment 
B)  Belief in the hand of fate 
C)  Personal accomplishment 
D)  Sacrifice for others

Question 8

The law that governs international business and forbids payments by American firms to foreign officials to influence decisions is

Accepted Answer

A)  the Napoleonic Code. 
B)  the U.S. Foreign Corrupt Practices Act of 1977. 
C)  the North American Free Trade Agreement. 
D)  the General Agreement on Tariffs and Trade. 
A)  the Napoleonic Code. 
B)  the U.S. Foreign Corrupt Practices Act of 1977. 
C)  the North American Free Trade Agreement. 
D)  the General Agreement on Tariffs and Trade.

Question 9

Which of the following is a key reason for the recent growth of strategic alliances?

Accepted Answer

A)  Pooling resources enables firms to keep pace with technological change that they may not have been able to afford alone. 
B)  It allows firms to expand rapidly with little risk. 
C)  It enables firms to borrow technological know-how for other firms. 
D)  The firm does not have to open a facility overseas. 
A)  Pooling resources enables firms to keep pace with technological change that they may not have been able to afford alone. 
B)  It allows firms to expand rapidly with little risk. 
C)  It enables firms to borrow technological know-how for other firms. 
D)  The firm does not have to open a facility overseas.

Question 10

The upward trend in birth rates worldwide is having a significant impact on global workforces.

Accepted Answer

A) True 
 B)False

Question 11

Late entrants to a market

Accepted Answer

A)  face higher pioneering costs. 
B)  preempt rivals. 
C)  may learn from the experience of first movers. 
D)  have no advantages. 
A)  face higher pioneering costs. 
B)  preempt rivals. 
C)  may learn from the experience of first movers. 
D)  have no advantages.

Question 12

A recent trend in U.S. expatriate assignments to reduce costs and trauma for families is to

Accepted Answer

A)  use more short-term assignments. 
B)  provide housing costs. 
C)  offer fewer expatriate assignments. 
D)  use more locals. 
A)  use more short-term assignments. 
B)  provide housing costs. 
C)  offer fewer expatriate assignments. 
D)  use more locals.

Question 13

What are the disadvantages of a wholly owned subsidiary as an entry mode to foreign markets?

Accepted Answer

A wholly owned subsidiary offers a firm

Question 14

IKEA is an example of a company that has successfully responded to local customer needs and tastes by customizing their products.

Accepted Answer

A) True 
 B)False

Question 15

Discuss the advantages and disadvantages of using locals to staff international subsidiaries.

Accepted Answer

There are a number of advantages to usin

Question 16

The three forms of risk involved in international operations are

Accepted Answer

A)  economic, consumer, and exchange rate risk. 
B)  political, economic, and legal risk. 
C)  exchange rate risk, intellectual property, and political risk. 
D)  economic, intellectual property, and legal risk. 
A)  economic, consumer, and exchange rate risk. 
B)  political, economic, and legal risk. 
C)  exchange rate risk, intellectual property, and political risk. 
D)  economic, intellectual property, and legal risk.

Question 17

To be more cost efficient, companies today are consolidating their production facilities in central locations.

Accepted Answer

A) True 
 B)False

Question 18

Which mode of international entry requires that the firm bears the full business risk since there is no local partner?

Accepted Answer

A)  Franchising 
B)  Strategic alliance 
C)  Licensing 
D)  Wholly owned subsidiary 
A)  Franchising 
B)  Strategic alliance 
C)  Licensing 
D)  Wholly owned subsidiary

Question 19

Discuss today's trend toward short-term expatriate assignments.

Accepted Answer

One recent trend has been the use of sho

Question 20

A potential disadvantage of turnkey projects is that the selling firm may be creating a competitor by giving away its technological superiority.

Accepted Answer

A) True 
 B)False

Which of the following is not considered a reason why international assignments end in failure?

The trade agreement that allows the free flow of agricultural products between the United States and Mexico is

What is considered a major advantage of exporting?

A manufacturing firm might be expected to begin globalization by which entry mode?

Which type of risk is represented by government changes, terrorism, and social unrest?

The most expensive way of operating in foreign markets is

Employees from a culture that is high in individualism would likely value which of the following?

The law that governs international business and forbids payments by American firms to foreign officials to influence decisions is

Which of the following is a key reason for the recent growth of strategic alliances?

The upward trend in birth rates worldwide is having a significant impact on global workforces.

Late entrants to a market

A recent trend in U.S. expatriate assignments to reduce costs and trauma for families is to

What are the disadvantages of a wholly owned subsidiary as an entry mode to foreign markets?

IKEA is an example of a company that has successfully responded to local customer needs and tastes by customizing their products.

Discuss the advantages and disadvantages of using locals to staff international subsidiaries.

The three forms of risk involved in international operations are

To be more cost efficient, companies today are consolidating their production facilities in central locations.

Which mode of international entry requires that the firm bears the full business risk since there is no local partner?

Discuss today's trend toward short-term expatriate assignments.

A potential disadvantage of turnkey projects is that the selling firm may be creating a competitor by giving away its technological superiority.

Management and Its Evolution

Managing Social Responsibility and Ethics

Managing Organizational Culture and Change

Managing the Planning Process

Decision Making

Strategic Management

Entrepreneurship and Innovation

Managing the Structure and Design of Organizations

Human Resource Management

Managing Employee Diversity

Leadership in Management

Managing Teams

Managing Communication

Operation and Information System Management

Filters

Exam 2: The Culture of Management

Which of the following is not considered a reason why international assignments end in failure?

The trade agreement that allows the free flow of agricultural products between the United States and Mexico is

What is considered a major advantage of exporting?

A manufacturing firm might be expected to begin globalization by which entry mode?

Which type of risk is represented by government changes, terrorism, and social unrest?

The most expensive way of operating in foreign markets is

Employees from a culture that is high in individualism would likely value which of the following?

The law that governs international business and forbids payments by American firms to foreign officials to influence decisions is

Which of the following is a key reason for the recent growth of strategic alliances?

The upward trend in birth rates worldwide is having a significant impact on global workforces.

Late entrants to a market

A recent trend in U.S. expatriate assignments to reduce costs and trauma for families is to

What are the disadvantages of a wholly owned subsidiary as an entry mode to foreign markets?

IKEA is an example of a company that has successfully responded to local customer needs and tastes by customizing their products.

Discuss the advantages and disadvantages of using locals to staff international subsidiaries.

The three forms of risk involved in international operations are

To be more cost efficient, companies today are consolidating their production facilities in central locations.

Which mode of international entry requires that the firm bears the full business risk since there is no local partner?

Discuss today's trend toward short-term expatriate assignments.

A potential disadvantage of turnkey projects is that the selling firm may be creating a competitor by giving away its technological superiority.

Management and Its Evolution

Managing Social Responsibility and Ethics

Managing Organizational Culture and Change

Managing the Planning Process

Decision Making

Strategic Management

Entrepreneurship and Innovation

Managing the Structure and Design of Organizations

Human Resource Management

Managing Employee Diversity

Leadership in Management

Managing Teams

Managing Communication

Operation and Information System Management

Filters