Question 1

A first-mover advantage

Accepted Answer

A)   preempts rivals.
B)   captures demand by establishing a strong brand name.
C)   makes it difficult for later entrants to win business.
D)   all of the above D

Question 2

Two major Asian regional economic groups are

Accepted Answer

A)   NAFTA and APEC.
B)   APEC and ASEAN.
C)   NAFTA and CAFTA.
D)   CAFTA and ASEAN. B

Question 3

With the global economy becoming more knowledge- intensive and falling national barriers to labor markets, which of the following is most likely to be true?

Accepted Answer

A)   More firms consider the entire world their labor market.
B)   More firms are likely to hire only college-educated workers.
C)   Only large, multinational firms can recruit global talent.
D)   More developed nations have an advantage over the less developed nations in recruiting talent. A

Question 4

According to Hofstede, countries whose employees believe they should attend to their own interests are high in which culture dimension?

Accepted Answer

A)   Power distance
B)   Individualism
C)   Uncertainty avoidance
D)   Masculinity

Question 5

The selection criteria for an expatriate manager should include cultural sensitivity.

Accepted Answer

A) True 
 B)False

Question 6

When an international HR manager from an American multinational firm researches the cultural dimensions of a country in which they are establishing new operations, what advice would most likely lead to success for the operation?

Accepted Answer

A)   Ensure management practices conform to prevailing societal norms.
B)   Disregard how other countries' cultural values mesh with the new location's values.
C)   Ensure the culture scores high on individualism.
D)   Ensure the culture scores high on uncertainty avoidance.

Question 7

Turnkey projects

Accepted Answer

A)   involve a company transferring the rights to produce products overseas to a foreign firm.
B)   result in two independent firms establishing a separate firm.
C)   are a specialized type of exporting.
D)   are cooperative arrangements.

Question 8

Discuss two integrated economic markets.

Accepted Answer

The answer of Discuss two integrated economic markets....

Question 9

A major disadvantage of a strategic alliance is that

Accepted Answer

A)   the firm runs the risk of quality control standards not being uniformly met and thus hurting the reputation of the firm.
B)   the firm runs the risk of losing its competitive advantage by giving away proprietary know-how to the partner.
C)   demand will be reduced as other firms develop manufacturing facilities.
D)   the firm may lose its cost advantage.

Question 10

Which approach to managing an international subsidiary involves filling top management and key positions with people from the home country?

Accepted Answer

A)   Ethnocentric approach
B)   Expatriate approach
C)   Polycentric approach
D)   Geocentric approach

Question 11

What are the three forms of risk companies face when operating in a foreign country?

Accepted Answer

The answer of What are the three forms of risk...

Question 12

When Mary has difficulty adjusting to her new assignment in Shanghai after living and working in New York all her life, she is likely to be experiencing

Accepted Answer

A)   uncertainty avoidance.
B)   repatriation difficulties.
C)   power distance.
D)   culture shock.

Question 13

Which mode of international entry is Prestwick House using if they decide to transfer the rights to produce and sell their products overseas to a foreign firm in return for a royalty?

Accepted Answer

A)   Exporting
B)   Turnkey project
C)   Licensing
D)   Strategic alliance

Question 14

The comprehensive treaty signed by 120 nations to remove tariffs is

Accepted Answer

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

Question 15

Discuss the five dimensions of culture identified by Hofstede.

Accepted Answer

The answer of Discuss the five dimensions of culture identified...

Question 16

Two considerations when developing expatriate compensation plans are

Accepted Answer

A)   hazard pay for less desirable locations and distance from home country.
B)   distance from home country and number of family members moving.
C)   children's education and length of international assignment.
D)   disposable income equivalent to what would be earned in the home office and add-on incentives.

Question 17

Discuss the advantages and disadvantages of exporting.

Accepted Answer

The answer of Discuss the advantages and disadvantages of exporting....

Question 18

A mode of international entry frequently used by McDonald's whereby the cooking methods, ingredients, and physical appearance of their restaurants comply with McDonald's standards is known as

Accepted Answer

A)   strategic alliances.
B)   franchising.
C)   exporting.
D)   turnkey projects.

Question 19

When a firm is going global, its attention to the size of the market, the future wealth of consumers, and the purchasing power of the population are components of which factor affecting international business?

Accepted Answer

A)   The legal system
B)   Cultural norms
C)   Economic norms
D)   The general business environment

Question 20

The rules of the International Convention for the Protection of Industrial Property have enabled countries to agree on what constitutes industrial espionage.

Accepted Answer