INB 300 Exam 3
(Chapter 10)
(Definition)
(Chapter 11)
(Definition)
(Chapter 13)
(Definition)
(Chapter 14)
(Definition)
(Chapter 15)
(Definition)
In the context of supply chain management, which of the following is true of adaptability?
It can be enhanced by making a series of make-or-buy decisions.
Which of the following statements is true of the going rate approach of compensating expatriates?
It differs for the same position around the world.
Which of the following is true of social issue participation?
It may actually reduce shareholder value.
Which of the following statements is true of scale of entry?
Large-scale entries demonstrate a strategic commitment to certain markets.
Which of the following statements is true of multinational enterprises' (MNEs') strategic postures and staffing approaches?
MNEs pursuing a global standardization strategy often require a geocentric approach.
_____ refers to efforts to create, develop, and defend markets that satisfy individual and business customers.
Marketing
_____ are associations between firms that are based on contracts and do not involve the sharing of ownership.
Non-equity-based alliances
Which of the following is an informal institution that affects corporate social responsibility?
Normative pressures
In the context of marketing mix, the term _____ refers to the expenditures that customers are willing to pay for a product.
Price
In the three-stage model of alliance formation, which of the following is the first stage?
Taking a decision on the mode of growth
According to an institution-based view, which of the following is true of synergistic motives that drive acquisitions?
They are a response to formal institutional constraints and transitions.
Which of the following is true of the activities engaged by proactive firms?
They build alliances with stakeholder groups for short-term, manageable projects of mutual
Which of the following is true of location-specific advantages?
They decline when companies overcrowd or when taxes are raised.
In the context of an institution-based view, which of the following is true of managerial motives that drive acquisitions?
They do not benefit a company overall in the long run.
In the context of institutions and corporate social responsibility (CSR), which of the following is true of the firms that adopt reactive strategy?
They do not feel compelled to act in the absence of disasters and outcries.
In the context of an institution-based view, which of the following is true of hubristic motives driving acquisitions?
They involve the display of herd behavior by chasing fads of acquisitions.
To avoid expatriate failure, which of the following is true of the firms that use situation dimensions to select expatriates?
They prefer employees with some command of the local language.
Which of the following statements is true of greenfield operations?
They suffer from a slow entry speed of at least one to several years.
_____ is specific preparation to do a particular job.
Training
'Be curious' is one of the four Cs developed by Susan Meisinger for savvy managers.
True
A liability of foreignness refers to the inherent disadvantage that foreign firms experience in host countries because of their nonnative status.
True
A repatriate is a manager who returns to his or her home country to stay after working abroad for a length of time.
True
As the fourth P in the marketing mix, place includes the online marketplace.
True
Corporate social responsibility (CSR) refers to the consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains that the firm seeks.
True
In firms embracing a proactive strategy, corporate social responsibility (CSR) activities acts as source of differentiation.
True
In the context of organizing acquisitions, strategic fit refers to the effective matching of complementary strategic capabilities.
True
In the firms that embrace reactive strategy, the need to accept some corporate social responsibility (CSR) is neither internalized through cognitive beliefs nor does it result in any norms in practice.
True
Inadequate screening is a problem which occurs during the pre-acquisition phase of the merger and acquisitions (M&A) process.
True
Strategic alliances are voluntary agreements of cooperation between firms.
True
The balance sheet approach refers to a compensation approach that balances the cost-of-living differences based on parent-country levels and adds a financial inducement to make the package attractive.
True
The second phase in the dissolution of alliances is going public.
True
Third-party logistics (3PL) provider is a neutral intermediary in the supply chain that provides logistics and other support services.
True
To overcome cultural and institutional differences, it is more important to consider strategic goals such as market and efficiency rather than culture and institutions.
True
What corporate social responsibility (CSR) critics describe as "greed" is often translated as "incentive" in the vocabulary of free market advocates.
True
_____ is a non-equity mode of entry into a foreign market.
Turnkey project
A(n) _____ is characterized by some support from top managers, who may increasingly view corporate social responsibility (CSR) as a worthwhile endeavor.
accommodative strategy
A(n) _____ is a transfer of the control of operations and management from one firm to another.
acquisition
_____ refers to the ability to change supply chain configurations in response to longer-term changes in the environment and technology.
Adaptability
_____ is the location-specific advantage that arises from the clustering of economic activities in certain locations.
Agglomeration
_____ are nonnative employees who work and reside in a foreign country.
Expatriates
A joint venture is defined as a subsidiary located in a foreign country that is entirely owned by the parent multinational.
False
A perceived lack of talent among parent-country nationals (PCNs) often necessitates an ethnocentric approach.
False
An acquisition is the combination of operations and management of two firms to establish a new legal entity.
False
Cultures, norms, and values of organizations are the formal institutions that affect marketing and supply chain management.
False
Directly imitating and competing with Western multinational enterprises (MNEs) leads to opportunism.
False
Equity, learning and experience, relational capabilities, and organization are the four factors that may influence alliance performance.
False
Every country has formal rules that are embodied in cultures, norms, and values governing the do's and don'ts of human resource management.
False
For savvy managers, it is highly important to lay emphasis on formal rules governing marketing rather than on informal rules.
False
Holding the price of a product constant, price sensitivity is directly proportional to the income of consumers.
False
In multinational enterprises, host-country nationals (HCNs) are generally referred to as expats.
False
In the context of entering into foreign business, firms with a strategic goal to seek market should select economies of scale and abundance of low-cost factors.
False
In the context of performance appraisals, evaluation of host-country nationals by expatriates is isolated from cultural differences.
False
In the context of strategic response framework, a reactive strategy is indicated by complete support by the top management for corporate social responsibility (CSR) causes.
False
Localization is more cost effective than globalization.
False
Managers who adopt accommodative strategy would view corporate social responsibility (CSR) as an added cost or nuisance.
False
Nowadays, it has become necessary to pay extra compensation to attract higher-caliber and more senior expatriates.
False
Performance appraisal refers to salary and benefits.
False
The term global dreamers refers to the segment of consumers who are skeptical about whether global brands deliver higher-quality goods.
False
When firms participate in social causes, they add value to a firm's resources.
False
In the context of real options, which of the following is a disadvantage of entering into alliances?
Firms are most likely to choose the wrong partners.
Which of the following examples best illustrates the effect of informal institutions on marketing and supply chain management?
Fitchell Corp. communicated new quality regulations to its vendors, which in turn changed the quality standard of the material supplied by the vendors to their domestic companies.
In the context of supply chain management, which of the following strategies will ensure success?
Focusing on agility, adaptability, and alignment
In the pre-acquisition phase, which of the following must be avoided by an acquirer to reduce the possibility of acquisition failure?
Giving importance to executive hubris
Michael is a manager at a tannery. In the wake of numerous protests from animal activists, he suggested adopting corporate social responsibility (CSR) values. In this case, which of the following will be true if he has a positive view toward CSR values?
He will be self-motivated to do it right regardless of social pressures.
John works as a quality analyst at a technological firm. He wanted to buy a mobile phone for his wife. Though he was abreast of the latest mobile phone brands that were introduced in the global market, he bought a phone that was produced and marketed locally. He was skeptical about whether global brands deliver high-quality goods. In the context of market segmentation, it is evident that John falls under the segment of _____.
antiglobals
Informal institutions affect the formation of alliances and acquisitions by:
centering on collective norms, supported by a normative pillar.
In the context of modes of entry, _____ refers to efforts among a number of firms to jointly market their products and services.
co-marketing
In multinational enterprises (MNEs), third-country nationals:
come from neither the parent country nor the host country.
According to a stakeholder view of the firm, a balanced triple bottom line focuses on:
economic, social, and environmental performances.
A(n) _____ emphasizes the norms and practices of the parent company (and the parent country of the MNE) by relying on parent-country nationals (PCNs).
ethnocentric approach
In a supply chain, having a recognized leader exercising power leads to:
facilitation of legitimacy in the supply chain.
Free market advocates argue firms may lose their character as capitalistic enterprises when they:
focus on social welfare.
The urgency of global sustainability in the 21st century is due to the:
increase in population and poverty.
In the context of institutions and corporate social responsibility (CSR), firms adopting defensive strategy:
initially admit responsibility but often fight it.
Training and development programs for expatriates who are assigned to work for a short period in a foreign country should ideally:
involve survival-level language training.
In the context of organizing acquisitions, _____ is the similarity in culture, systems, and structures between two or more firms.
organizational fit
A _____ is indicated by relatively little or no support by top management for corporate social responsibility (CSR) causes.
reactive strategy
Expatriates acting as ambassadors:
represent the interests of the subsidiaries when interacting with headquarters.
In most of the cases, alliances have emerged as great instruments of real options because they help companies to:
sequentially scale up or scale down their investments.
The term global sustainability is defined as the ability:
to meet the needs of the present without compromising the ability of future generations to meet their needs in future.
Which of the following is true of expatriate failure?
A combination of work-related and family-related problems leads to expatriate failure.
_____ is a type of wholly owned subsidiary.
A greenfield project
During one of the routine inspections, Harlose Motors, an automobile manufacturing company, found that a few of its new practices were detrimental to the environment. Immediately, it replaced them with environmentally friendly practices though it involved additional costs. In this scenario, which of the following strategies is followed by Harlose Motors?
A proactive strategy
_____ is defined as a project in which clients pay contractors to design and construct new facilities and train personnel.
A turnkey project
Which of the following modes of entry call for the establishment of independent organizations overseas?
An equity mode
Which of the following is the fifth C that implicates actions for non-HR (human resource) managers?
Career
In the context of corporate social responsibility (CSR) and the VRIO (Value, Rarity, Imitability, and Organization) framework, which of the following is true of organization?
Complementary assets, when combined with valuable, rare, and hard-to-imitate capabilities, may enable a firm to fully utilize its corporate social responsibility (CSR) potential.
Ocan Foods Inc., a food and beverage retailer, invests ten percent of its annual revenue in Bright Diaries Inc., a diary manufacturer. Bright Diaries, on the other hand, invests 15 percent of its annual revenue in Ocan Foods. Which of the following equity-based alliances is shown in the given scenario?
Cross-shareholding
Which of the following is a formal barrier to trade when foreign firms enter new markets?
Currency risk
Which of the following is one the components of the marketing mix?
Promotion
Which of the following is a formal institution that affects corporate social responsibility?
Regulatory pressures
_____ is the process of returning to expatriate's home country after an extended period overseas.
Repatriation
If a firm decides to engage in crude oil and petroleum business abroad, which of the following countries will provide location-specific advantage to the firm?
Russia
_____ refers to human resource management (HRM) activities associated with hiring employees and filling positions.
Staffing
At the heart of corporate social responsibility (CSR), the concept of _____ refers to any group or individual who can affect or is affected by a firm's actions.
Stake holder
_____ is the flow of products, services, finances, and information that passes through a set of entities from a source to the customer.
Supply chain
_____ refers to activities to plan, organize, lead, and control the flow of products, services, finances, and information that passes through a set of entities from a source to the customer.
Supply chain management
Which of the following factors leads to excessive bargaining in a supply chain?
Supply chain members of more or less equal standing