Académique Documents
Professionnel Documents
Culture Documents
International Management
False
False
False
False
5. North America, South America, and Asia are the three regions that are
most dominant in the global economy.
True
False
False
False
False
9. Japan is the most important trading partner of the United States based
on the value of imports and exports between the two countries.
True
False
10 The value of U.S. imports from China is more than five times the value
. of U.S. exports to China.
True
False
False
False
False
14 The Middle East is the largest supplier of oil to the United States.
.
True False
False
False
17 When pressures for local responsiveness are high and pressures for
. global integration are low, the global model is appropriate.
True
False
False
False
False
False
False
False
False
False
28 Individuals from the parent country who are sent to work at a foreign
. subsidiary are known as expatriates.
True
False
False
False
32 Family issues are the biggest reason for expatriates to return home
. early.
True
False
False
False
False
False
37 Inpatriates are foreign nationals that are sent abroad for a short period.
.
True False
38 Inpatriates are valuable because they bring with them extensive
. knowledge about how to operate effectively in their home countries.
True
False
False
A.
B.
C.
D.
E.
more; profit
less; profit
more; opportunities
less; opportunities
less; ROI
A.
B.
C.
D.
E.
International development
Outsourcing
Offshoring
Expatriation
Franchising
A.
B.
C.
D.
E.
International development
Outsourcing
Offshoring
Expatriation
Franchising
A.
B.
C.
D.
E.
NAFTA
Maastricht Treaty
GATT Agreement
APEC Treaty
European Unification Act
48 Which of the following has resulted from the formation of the European
. Union?
A.
B.
C.
D.
E.
Population density.
Productivity.
Espionage activity.
Philanthropic contributions.
Wealth.
50 Which country does the text describe as becoming the largest producer
. and consumer of many of the world's goods?
A.
B.
C.
D.
E.
Japan.
Canada.
Mexico.
China.
Vietnam.
one-third of
three times
the same as
seven times
10 times
A.
B.
C.
D.
E.
Egypt.
Great Britain.
India.
Mexico.
Taiwan.
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
NAFTA.
CAFTA-DR.
FTAA.
APEC.
ASEAN.
A.
B.
C.
D.
E.
Leadership grid.
Force field analysis grid.
Integration-responsiveness grid.
Cost-benefit grid.
Strategy map.
57 The grid used for identifying the best strategy for competing in a global
. marketplace measures what two dimensions?
Universal needs.
Differences in traditional practices.
Political demands imposed by host countries.
Varied consumer preferences.
Legal demands imposed by host countries.
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
All of these are global strategies.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Multimedia model.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Intranational model.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Intranational model.
A.
B.
C.
D.
E.
international
multinational
global
transnational
intranational
A.
B.
C.
D.
E.
international
multinational
global
transnational
multimedia
68 The global strategy model that uses subsidiaries in each country and
. provides each a great deal of discretion to respond to local conditions is
the __________ model.
A.
B.
C.
D.
E.
international
multinational
global
transnational
domestic
A.
B.
C.
D.
E.
domestic
international
multinational
transnational
global
A.
B.
C.
D.
E.
Transnational.
Global.
Worldwide.
International.
Multinational.
A.
B.
C.
D.
E.
domestic
international
multinational
transnational
global
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Intranational model.
A.
B.
C.
D.
E.
international
multinational
global
transnational
multimedia
A.
B.
C.
D.
E.
multinational
consumer-focused
transnational
global
domestic
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Intranational model.
A.
B.
C.
D.
E.
international
multinational
transnational
global
intranational
A.
B.
C.
D.
E.
international
multinational
transnational
global
intranational
A.
B.
C.
D.
E.
international
multinational
global
transnational
intranational model
A.
B.
C.
D.
E.
Intranational model.
International model.
Multinational model.
Global model.
Transnational model.
A.
B.
C.
D.
E.
international
multinational
global
transnational
multimedia
84 Transnational companies
.
A. Require effective communication and coordination networks among
subsidiaries.
B. Respond to pressures for both local responsiveness and cost
economies.
C. May centralize production facilities in one location and marketing
functions in separate locations.
D. Must effectively transfer core skills or know-how.
E.
Do all of these.
85 The transnational model of organizational structure may be
. characterized by
A.
B.
C.
D.
E.
Sony.
IBM.
Coca Cola.
Caterpillar.
Unilever.
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
international
multinational
global
transnational
intranational
A.
B.
C.
D.
E.
global
transnational
international
maquilladora
worldwide
A.
B.
C.
D.
E.
Exporting.
Wholly owned subsidiary.
Franchising.
Licensing.
Joint venture.
92 Exporting is
.
A. A common entry strategy for global expansion.
B. Manufacturing a product in several international locations for
consumers in those global markets.
C. Inconsistent with a pure global strategy.
D.
Expensive.
E.
Not able to achieve scale economies.
93 An advantage of exporting as a global expansion entry mode is that
.
A.
Economies of scale may be realized.
B. The target site may have lower production costs.
C. Transportation costs are generally lower.
D. It is considered responsive to local needs.
E.
Trade barriers may be removed.
A.
B.
C.
D.
E.
Franchising
International licensing
Entering a joint venture
Exporting
Royalty facilitation
A. Licensing company need not bear the costs and risks of opening up
an overseas market.
B. Licensing company has control over its technology.
C. Licensing company has control over quality levels.
D. Licensing company has lower communication costs.
E.
Licensee has lower production costs.
97 A disadvantage of licensing is that the licensing company (licensor)
.
A.
B.
C.
D.
E.
98 Selling the rights to use your company's brand name in return for a
. lump-sum payment and a share of the buyer's profits is referred to as
A.
B.
C.
D.
E.
Licensing.
Entering a joint venture.
Exporting.
Franchising.
Royalty facilitation.
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
Third-country nationals.
Host-country nationals.
Globalite executives.
Expatriates.
Inpatriates.
106 Carrie Pinon, a chemical engineer from New Jersey, is being sent by
.
her company, L'Oreal of France, to work in product development in
China. Carrie would be considered a(n)
A.
B.
C.
D.
E.
Third-country national.
Host-country national.
Globalite executive.
Expatriate.
Inpatriate.
107 Which of the following is a reason why some companies prefer to use
.
expatriates at their overseas operations?
A. Seek advice from locals and the expatriate network on her behalf.
B.
Provide cultural training.
C. Clarify home country rules and how to apply them abroad.
D. Encourage her to perform self- and family evaluation.
E.
Reinforce dual identification.
109 The biggest cause of failure of overseas managers is
.
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
Ethnocentric.
Flexible.
Extremely self-confident and assertive.
Likes familiarity.
Avoids criticism.
A.
B.
C.
D.
E.
Individualism
Power distance
Uncertainty avoidance
Ethnocentrism
Expatriotism
112 Josh, an American, was visiting South Korea to do business with some
.
Samsung managers located in Seoul. When his Korean counterpart,
Jun-suh, arrived for a meeting, he wanted to chat about family and life
before doing business. Josh felt impatient, and thought it rude for
someone to assume he had no other important commitments that
morning. In this scenario, Josh is best described as exhibiting
A.
B.
C.
D.
E.
Ethnocentrism.
Individualism.
Culture shock.
Uncertainty distance
Power distance
A.
B.
C.
D.
E.
International mores.
Homesickness.
Culture shock.
Out-of-country experience.
Uncertainty distance.
A.
B.
C.
D.
E. There is not
answer.
low; small
low; large
high; large
high; small
enough information in this example to determine an
A.
B.
C.
D.
E.
France.
Mexico.
New Zealand.
Austria.
Japan.
116 __________ are foreign nationals who are brought in to work at the
.
parent company.
A.
B.
C.
D.
E.
Expatriates
Third-level nationals
Second-party nationals
Inpatriates
Foreign cohorts
117 Steps for establishing and reinforcing the codes of conduct for
.
international business include which of the following?
A.
B.
C.
D.
E.
Individualism.
Competitiveness.
Responsibility.
Persistence.
Sincerity.
Scenario A
Suppose you are a consultant for three companies with international
operations. Each of them has selected a different global strategy. Alpha
Company uses its established skills in producing widgets that it will sell
in foreign markets. Beta Company produces locally targeted wines for
which it has built specialized plants in each local region. Gamma
Company has a single worldwide corporate headquarters from which it
centrally manages the entire company's operations. Finally, Delta
company is located in Wazomia where wages are quite low, and
produces large pieces of widgets that are fairly easy to manufacture,
requiring little employee skill. These pieces are then sent to its
locations abroad to be finished by a more skilled workforce, taking into
account the customs and benefits desired by each of those particular
populations.
Global.
International.
Transnational.
Multinational.
Domestic.
Global.
International.
Transnational.
Multinational.
Domestic.
Global.
International.
Transnational.
Multinational.
Domestic.
Global.
International.
Transnational.
Multinational.
Domestic.
Scenario B
Tim was having a few friends over for dinner, many of whom Tim knew
from an international management association. Tim's company
provides services to create detailed maps of world areas from satellites,
which the firm then sells via the Internet to firms, countries, and others
around the world. One guest, Lucia, bakes cookies for a living. Her
recipe is so well-liked that her company has grown dramatically. She
has just sold the right to manufacture her cookies to a firm in eastern
Europe. Another, Mac, is a director at Hilton, and his wife Chandra
works for a partnership between Hershey and an Indian firm. Finally,
Samantha works for EDS and is soon to go abroad to visit a firm that
EDS is considering acquiring so that it can keep its technology
proprietary. The guests were speaking about how their companies
decided to "go global."
123 Tim's company uses __________ to participate in the global
.
marketplace.
A.
B.
C.
D.
E.
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
A.
B.
C.
D.
E.
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
A.
B.
C.
D.
E.
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
Scenario C
Rebecca is an American who has just accepted her first international
assignment in Sweden. On her first day in the office, she met several
new colleagues. Lars is the manager of the office and is a Swedish
citizen; he has been with the company for five years. Wen is from China
and has also just come to Sweden to work for the company, which is
based in the United States.
Third-country national.
Host-country national.
Globalite executive.
Expatriate.
Inpatriate.
Third-country national.
Host-country national.
Globalite executive.
Expatriate.
Inpatriate.
Third-country national.
Host-country national.
Globalite executive.
Expatriate.
Inpatriate.
131 Because Rebecca has never worked outside the United States before,
.
how should she approach her new assignment now that she has
arrived in the office in Sweden?
Refer To: Table 6.3
Scenario D
A group of managers was recently reunited after completing overseas
assignments, and they were telling stories of their experiences. Alfredo
was surprised by employees in his host nation because he found them
reluctant to take personal credit for good work. Bernie had employees
that were not anxious to adopt any of the changes he recommended,
even though they were accepted best practices at home. Ed noticed
that his employees did not seem to take much pleasure in financial
rewards but loved additional vacation days as a perk. Sarah's local
counterpart told her she would need to fly in coach because employees
would be intolerant of her traveling in first class.
132 Alfredo experienced employees exhibiting Hofstede's cultural
.
dimension of
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
Essay Questions
136 Explain the consequences of the increasing integration of the global
.
economy.
137 Describe how the global economy is becoming more integrated than
.
ever before. Include a discussion of the European Union, China, and
NAFTA in your answer.
138 Discuss how an organization should identify the best strategy for
.
competing in a global marketplace and the four approaches typically
used.
140 What are the pros and cons of using expatriates, host-country
.
nationals, and third-country nations to run overseas operations? If you
were expanding your business, which approach would you use?
143 Discuss how culture plays out in terms of ethical behavior. What can
.
organizations do to manage these issues more effectively?
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-01 Discuss what integration of the global economy means for individual companies and
their managers.
Level of Difficulty: 1 Easy
Topic: Managing in a (Sometimes) Flat World
2.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-01 Discuss what integration of the global economy means for individual companies and
their managers.
3.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-01 Discuss what integration of the global economy means for individual companies and
their managers.
Level of Difficulty: 2 Medium
Topic: Managing in a (Sometimes) Flat World
4.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-01 Discuss what integration of the global economy means for individual companies and
their managers.
Level of Difficulty: 1 Easy
Topic: Managing in a (Sometimes) Flat World
5.
North America, South America, and Asia are the three regions that
are most dominant in the global economy.
FALSE
The global economy is dominated by countries in three regions: North
America, western Europe, and Asia.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-02 Describe how the world economy is becoming more integrated than ever before.
Level of Difficulty: 2 Medium
Topic: The Global Environment
6.
7.
8.
9.
10.
The value of U.S. imports from China is more than five times the
value of U.S. exports to China.
TRUE
The low wage rates in China help explain why the value of U.S.
imports from China is more than five times the value of U.S. exports
to China.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-02 Describe how the world economy is becoming more integrated than ever before.
Level of Difficulty: 2 Medium
Topic: The Global Environment
11.
12.
13.
14.
The Middle East is the largest supplier of oil to the United States.
FALSE
The Middle East supplies by far the most oil to the world's buyers,
most of it going to buyers in Asia. The Middle East is not, however,
the largest supplier of oil to the United States, which imports oil
primarily from closer sources: Canada, Mexico, and Venezuela.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-02 Describe how the world economy is becoming more integrated than ever before.
Level of Difficulty: 2 Medium
Topic: The Global Environment
15.
Blooms: Understand
Learning Objective: 06-03 Define the strategies organizations use to compete in the global marketplace.
Level of Difficulty: 2 Medium
Topic: Global Strategy
16.
17.
When pressures for local responsiveness are high and pressures for
global integration are low, the global model is appropriate.
FALSE
Figure 6.5 indicates that the multinational model is the appropriate
one to consider when pressures for local responsiveness are high and
pressures for global integration are low.
Refer To: Figure 6.5
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-03 Define the strategies organizations use to compete in the global marketplace.
Level of Difficulty: 2 Medium
Topic: Global Strategy
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
Individuals from the parent country who are sent to work at a foreign
subsidiary are known as expatriates.
TRUE
When establishing operations overseas, headquarters executives
have a choice among sending expatriates (individuals from the
parent country), using host-country nationals (natives of the host
country), and deploying third-country nationals (natives of a country
other than the home country or the host country).
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-05 Explain how companies can approach the task of staffing overseas operations.
Level of Difficulty: 1 Easy
Topic: Managing across Borders
29.
30.
31.
32.
Family issues are the biggest reason for expatriates to return home
early.
TRUE
Typically the causes for failure overseas extend beyond technical
capability and include personal and social issues. In a recent survey
of human resource managers around the globe, two-thirds said the
main reason for the failures is family issues, especially dissatisfaction
of the employee's spouse or partner.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-06 Summarize the skills and knowledge managers need to manage globally.
Level of Difficulty: 2 Medium
Topic: Managing across Borders
33.
34.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-07 Identify ways in which cultural differences across countries influence management.
Level of Difficulty: 1 Easy
Topic: Managing across Borders
35.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-07 Identify ways in which cultural differences across countries influence management.
Level of Difficulty: 1 Easy
Topic: Managing across Borders
36.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-07 Identify ways in which cultural differences across countries influence management.
37.
Inpatriates are foreign nationals that are sent abroad for a short
period.
FALSE
Cross-cultural management includes effective management of
inpatriates, who are foreign nationals brought in to work at the parent
company.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-07 Identify ways in which cultural differences across countries influence management.
Level of Difficulty: 1 Easy
Topic: Managing across Borders
38.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-07 Identify ways in which cultural differences across countries influence management.
Level of Difficulty: 2 Medium
Topic: Managing across Borders
39.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-07 Identify ways in which cultural differences across countries influence management.
Level of Difficulty: 2 Medium
Topic: Managing across Borders
their managers.
Level of Difficulty: 2 Medium
Topic: Managing in a (Sometimes) Flat World
41.
A.
B.
C.
D.
E.
more; profit
less; profit
more; opportunities
less; opportunities
less; ROI
42.
43.
A.
B.
C.
D.
E.
International development
Outsourcing
Offshoring
Expatriation
Franchising
their managers.
Level of Difficulty: 1 Easy
Topic: Managing in a (Sometimes) Flat World
44.
A.
B.
C.
D.
E.
International development
Outsourcing
Offshoring
Expatriation
Franchising
45.
their managers.
Level of Difficulty: 1 Easy
Topic: Managing in a (Sometimes) Flat World
46.
47.
A.
B.
C.
D.
E.
NAFTA
Maastricht Treaty
GATT Agreement
APEC Treaty
European Unification Act
48.
49.
A.
B.
C.
D.
E.
Population density.
Productivity.
Espionage activity.
Philanthropic contributions.
Wealth.
50.
A.
B.
C.
D.
E.
Japan.
Canada.
Mexico.
China.
Vietnam.
51.
A.
B.
C.
D.
E.
one-third of
three times
the same as
seven times
10 times
The enormous size of its labor force, combined with its extremely low
labor costs, has given it a huge competitive advantage in
manufacturing. Estimates suggest that labor costs in China are less
than $1 an hour, compared with $2.92 for manufacturing workers in
Mexico and $24.59 for manufacturing workers in the United States.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-02 Describe how the world economy is becoming more integrated than ever before.
Level of Difficulty: 2 Medium
Topic: The Global Environment
52.
53.
A.
B.
C.
D.
E.
Egypt.
Great Britain.
India.
Mexico.
Taiwan.
54.
A.
B.
C.
D.
E.
55.
A.
B.
C.
D.
E.
NAFTA.
CAFTA-DR.
FTAA.
APEC.
ASEAN.
56.
A.
B.
C.
D.
E.
Leadership grid.
Force field analysis grid.
Integration-responsiveness grid.
Cost-benefit grid.
Strategy map.
57.
The grid used for identifying the best strategy for competing in a
global marketplace measures what two dimensions?
58.
A.
Universal needs.
B.
Differences in traditional practices.
C. Political demands imposed by host countries.
D.
Varied consumer preferences.
E. Legal demands imposed by host countries.
Managers may have several reasons to want or need a common,
global strategy, rather than one tailored to individual markets. These
factors include the existence of universal needs, pressures to reduce
costs, or the presence of competitors with a global strategy.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-03 Define the strategies organizations use to compete in the global marketplace.
Level of Difficulty: 2 Medium
Topic: Global Strategy
59.
A.
B.
C.
D.
E.
60.
A.
B.
C.
D.
E.
61.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
All of these are global strategies.
62.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Multimedia model.
63.
64.
From which model of organizational structure did IBM and Xerox profit
by transferring skills and know-how to subsidiaries around the globe?
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Intranational model.
Blooms: Understand
Learning Objective: 06-03 Define the strategies organizations use to compete in the global marketplace.
Level of Difficulty: 2 Medium
Topic: Global Strategy
65.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Intranational model.
66.
A.
B.
C.
D.
E.
international
multinational
global
transnational
intranational
67.
A.
B.
C.
D.
E.
international
multinational
global
transnational
multimedia
68.
The global strategy model that uses subsidiaries in each country and
provides each a great deal of discretion to respond to local conditions
is the __________ model.
A.
B.
C.
D.
E.
international
multinational
global
transnational
domestic
69.
70.
A.
B.
C.
D.
E.
domestic
international
multinational
transnational
global
Blooms: Remember
Learning Objective: 06-03 Define the strategies organizations use to compete in the global marketplace.
Level of Difficulty: 1 Easy
Topic: Global Strategy
71.
A.
B.
C.
D.
E.
Transnational.
Global.
Worldwide.
International.
Multinational.
72.
73.
A.
B.
C.
D.
E.
domestic
international
multinational
transnational
global
74.
A.
B.
C.
D.
E.
Blooms: Understand
Learning Objective: 06-03 Define the strategies organizations use to compete in the global marketplace.
Level of Difficulty: 2 Medium
Topic: Global Strategy
75.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Intranational model.
76.
A.
B.
C.
D.
E.
international
multinational
global
transnational
multimedia
77.
A.
B.
C.
D.
E.
multinational
consumer-focused
transnational
global
domestic
The global model has been adopted by companies that view the
world as one market and assume that no tangible differences exist
among countries with regard to consumer tastes and preferences.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-03 Define the strategies organizations use to compete in the global marketplace.
Level of Difficulty: 1 Easy
Topic: Global Strategy
78.
A.
B.
C.
D.
E.
International model.
Multinational model.
Global model.
Transnational model.
Intranational model.
79.
A.
B.
C.
D.
E.
international
multinational
transnational
global
intranational
80.
A.
B.
C.
D.
E.
international
multinational
transnational
global
intranational
81.
A.
B.
C.
D.
E.
international
multinational
global
transnational
intranational model
82.
A.
B.
C.
D.
E.
Intranational model.
International model.
Multinational model.
Global model.
Transnational model.
Learning Objective: 06-03 Define the strategies organizations use to compete in the global marketplace.
Level of Difficulty: 1 Easy
Topic: Global Strategy
83.
A.
B.
C.
D.
E.
international
multinational
global
transnational
multimedia
84.
Transnational companies
85.
86.
A.
B.
C.
D.
E.
Sony.
IBM.
Coca Cola.
Caterpillar.
Unilever.
87.
A.
B.
C.
D.
E.
88.
A.
B.
C.
D.
E.
international
multinational
global
transnational
intranational
89.
A.
B.
C.
D.
E.
global
transnational
international
maquilladora
worldwide
90.
Blooms: Remember
Learning Objective: 06-04 Compare the various entry modes organizations use to enter overseas markets.
Level of Difficulty: 1 Easy
Topic: Entry Mode
91.
A.
B.
C.
D.
E.
Exporting.
Wholly owned subsidiary.
Franchising.
Licensing.
Joint venture.
92.
Exporting is
93.
94.
A.
It is quite risky.
B. The company may face tariff barriers.
C. It is the most expensive method of expanding globally.
D. The company risks losing control of its intellectual property.
E. It is inconsistent with a pure global strategy.
Exporting has a number of drawbacks, including higher domestic
production costs, high transportation costs, and potential tariff
barriers.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-04 Compare the various entry modes organizations use to enter overseas markets.
Level of Difficulty: 2 Medium
Topic: Entry Mode
95.
A.
B.
C.
D.
E.
Franchising
International licensing
Entering a joint venture
Exporting
Royalty facilitation
96.
A. Licensing company need not bear the costs and risks of opening
up an overseas market.
B. Licensing company has control over its technology.
C. Licensing company has control over quality levels.
D. Licensing company has lower communication costs.
E.
Licensee has lower production costs.
The advantage of licensing is that the company need not bear the
costs and risks of opening up an overseas market.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-04 Compare the various entry modes organizations use to enter overseas markets.
Level of Difficulty: 2 Medium
Topic: Entry Mode
97.
A.
B.
C.
D.
E.
98.
Selling the rights to use your company's brand name in return for a
lump-sum payment and a share of the buyer's profits is referred to
as
A.
B.
C.
D.
E.
Licensing.
Entering a joint venture.
Exporting.
Franchising.
Royalty facilitation.
In franchising, the company sells limited rights to use its brand name
to franchisees in return for a lump-sum payment and a share of the
franchisee's profits. Unlike most licensing agreements, the franchisee
has to agree to abide by strict rules regarding how it does business.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-04 Compare the various entry modes organizations use to enter overseas markets.
Level of Difficulty: 1 Easy
Topic: Entry Mode
99.
A.
The very low level of profit potential.
B. The loss of control over technology that may affect an
organization's ability to sustain a competitive advantage.
C. High development costs related to a higher level of risk in
worldwide operations.
D. Loss of identification with local markets.
E.
Quality control.
If overseas franchisees are less concerned about quality than they
should be, the impact can go beyond lost sales in the local market to
a decline in the company's reputation worldwide. To make matters
worse, the geographic distance between the franchisor and its
overseas franchisees makes poor quality difficult to detect.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-04 Compare the various entry modes organizations use to enter overseas markets.
Level of Difficulty: 2 Medium
Topic: Entry Mode
A.
B.
C.
D.
E.
Learning Objective: 06-04 Compare the various entry modes organizations use to enter overseas markets.
Level of Difficulty: 1 Easy
Topic: Entry Mode
A.
B.
C.
D.
E.
Blooms: Understand
Learning Objective: 06-04 Compare the various entry modes organizations use to enter overseas markets.
Level of Difficulty: 2 Medium
Topic: Entry Mode
A.
B.
C.
D.
E.
Third-country nationals.
Host-country nationals.
Globalite executives.
Expatriates.
Inpatriates.
106. Carrie Pinon, a chemical engineer from New Jersey, is being sent by
her company, L'Oreal of France, to work in product development in
China. Carrie would be considered a(n)
A.
B.
C.
D.
E.
Third-country national.
Host-country national.
Globalite executive.
Expatriate.
Inpatriate.
107. Which of the following is a reason why some companies prefer to use
expatriates at their overseas operations?
108. Marielle has just been offered her first expatriate experience, an
assignment in Germany. Before she accepts, her employer should
A. Seek advice from locals and the expatriate network on her behalf.
B.
Provide cultural training.
C. Clarify home country rules and how to apply them abroad.
D. Encourage her to perform self- and family evaluation.
E.
Reinforce dual identification.
According to Table 6.3, when an expatriate is selected the
appropriate employer coping response is to encourage the
expatriate's self- and family evaluation before he or she accepts the
assignment.
Refer To: Table 6.3
AACSB: Analytic
Blooms: Apply
Learning Objective: 06-05 Explain how companies can approach the task of staffing overseas operations.
Level of Difficulty: 3 Hard
Topic: Managing across Borders
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
Ethnocentric.
Flexible.
Extremely self-confident and assertive.
Likes familiarity.
Avoids criticism.
A.
B.
C.
D.
E.
Individualism
Power distance
Uncertainty avoidance
Ethnocentrism
Expatriotism
112. Josh, an American, was visiting South Korea to do business with some
Samsung managers located in Seoul. When his Korean counterpart,
Jun-suh, arrived for a meeting, he wanted to chat about family and
life before doing business. Josh felt impatient, and thought it rude for
someone to assume he had no other important commitments that
morning. In this scenario, Josh is best described as exhibiting
A.
B.
C.
D.
E.
Ethnocentrism.
Individualism.
Culture shock.
Uncertainty distance
Power distance
A.
B.
C.
D.
E.
International mores.
Homesickness.
Culture shock.
Out-of-country experience.
Uncertainty distance.
A.
low; small
B.
low; large
C.
high; large
D.
high; small
E. There is not enough information in this example to determine an
answer.
Power distance is the extent to which a society accepts the fact that
power in organizations is distributed unequally.
Individualism/collectivism is the extent to which people act on their
own or as a part of a group. Figure 6.7 shows that Venezuela has a
large power distance and a high collectivism.
Refer To: Figure 6.7
AACSB: Analytic
Blooms: Apply
Learning Objective: 06-07 Identify ways in which cultural differences across countries influence management.
Level of Difficulty: 3 Hard
Topic: Managing across Borders
A.
B.
C.
D.
E.
France.
Mexico.
New Zealand.
Austria.
Japan.
116. __________ are foreign nationals who are brought in to work at the
parent company.
A.
B.
C.
D.
E.
Expatriates
Third-level nationals
Second-party nationals
Inpatriates
Foreign cohorts
117. Steps for establishing and reinforcing the codes of conduct for
international business include which of the following?
A.
B.
C.
D.
E.
Individualism.
Competitiveness.
Responsibility.
Persistence.
Sincerity.
Scenario A
Suppose you are a consultant for three companies with international
operations. Each of them has selected a different global strategy.
Alpha Company uses its established skills in producing widgets that it
will sell in foreign markets. Beta Company produces locally targeted
wines for which it has built specialized plants in each local region.
Gamma Company has a single worldwide corporate headquarters
from which it centrally manages the entire company's operations.
Finally, Delta company is located in Wazomia where wages are quite
low, and produces large pieces of widgets that are fairly easy to
manufacture, requiring little employee skill. These pieces are then
sent to its locations abroad to be finished by a more skilled
workforce, taking into account the customs and benefits desired by
each of those particular populations.
119. Which global strategy is Alpha Company using?
A.
B.
C.
D.
E.
Global.
International.
Transnational.
Multinational.
Domestic.
A.
B.
C.
D.
E.
Global.
International.
Transnational.
Multinational.
Domestic.
A.
B.
C.
D.
E.
Global.
International.
Transnational.
Multinational.
Domestic.
A.
B.
C.
D.
E.
Global.
International.
Transnational.
Multinational.
Domestic.
Scenario B
Tim was having a few friends over for dinner, many of whom Tim
knew from an international management association. Tim's company
provides services to create detailed maps of world areas from
satellites, which the firm then sells via the Internet to firms,
countries, and others around the world. One guest, Lucia, bakes
cookies for a living. Her recipe is so well-liked that her company has
grown dramatically. She has just sold the right to manufacture her
cookies to a firm in eastern Europe. Another, Mac, is a director at
Hilton, and his wife Chandra works for a partnership between
Hershey and an Indian firm. Finally, Samantha works for EDS and is
soon to go abroad to visit a firm that EDS is considering acquiring so
that it can keep its technology proprietary. The guests were speaking
about how their companies decided to "go global."
A.
B.
C.
D.
E.
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
Tim's firm develops the product in the home country and then
exports it to the global marketplace.
AACSB: Analytic
Blooms: Apply
Learning Objective: 06-04 Compare the various entry modes organizations use to enter overseas markets.
Level of Difficulty: 3 Hard
Topic: Entry Mode
A.
B.
C.
D.
E.
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
A.
B.
C.
D.
E.
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
A.
B.
C.
D.
E.
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
A.
B.
C.
D.
E.
licensing
franchising
exporting
joint ventures
wholly owned subsidiaries
Scenario C
Rebecca is an American who has just accepted her first international
assignment in Sweden. On her first day in the office, she met several
new colleagues. Lars is the manager of the office and is a Swedish
citizen; he has been with the company for five years. Wen is from
China and has also just come to Sweden to work for the company,
which is based in the United States.
128. 128.Rebecca would be referred to as a(n)
A.
B.
C.
D.
E.
Third-country national.
Host-country national.
Globalite executive.
Expatriate.
Inpatriate.
Blooms: Apply
Learning Objective: 06-05 Explain how companies can approach the task of staffing overseas operations.
Level of Difficulty: 3 Hard
Topic: Managing across Borders
A.
B.
C.
D.
E.
Third-country national.
Host-country national.
Globalite executive.
Expatriate.
Inpatriate.
A.
B.
C.
D.
E.
Third-country national.
Host-country national.
Globalite executive.
Expatriate.
Inpatriate.
131. Because Rebecca has never worked outside the United States before,
how should she approach her new assignment now that she has
arrived in the office in Sweden?
Refer To: Table 6.3
A.
She should engage in self-evaluation.
B. She should think of the assignment as a vertical promotion.
C. She should assume Sweden is very similar to the United States.
D. She should behave as she did at home in the meetings she will
attend.
E.
She should seek social support.
Rebecca should seek social support, according to Table 6.3, because,
having just arrived, she may be suffering a bit from cultural shock.
AACSB: Analytic
Blooms: Apply
Learning Objective: 06-05 Explain how companies can approach the task of staffing overseas operations.
Level of Difficulty: 3 Hard
Topic: Managing across Borders
Scenario D
A group of managers was recently reunited after completing overseas
assignments, and they were telling stories of their experiences.
Alfredo was surprised by employees in his host nation because he
found them reluctant to take personal credit for good work. Bernie
had employees that were not anxious to adopt any of the changes he
recommended, even though they were accepted best practices at
home. Ed noticed that his employees did not seem to take much
pleasure in financial rewards but loved additional vacation days as a
perk. Sarah's local counterpart told her she would need to fly in
coach because employees would be intolerant of her traveling in first
class.
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
A.
B.
C.
D.
E.
Essay Questions
137. Describe how the global economy is becoming more integrated than
ever before. Include a discussion of the European Union, China, and
NAFTA in your answer.
138. Discuss how an organization should identify the best strategy for
competing in a global marketplace and the four approaches typically
used.
140. What are the pros and cons of using expatriates, host-country
nationals, and third-country nations to run overseas operations? If
you were expanding your business, which approach would you use?
143. Discuss how culture plays out in terms of ethical behavior. What can
organizations do to manage these issues more effectively?