INT MGT Exam #2

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Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?

clustering

A joint venture is a situation in which two or more partners have different relative ownership shares in the new venture. (T/F)

false

Americans are calm, quiet, patient negotiators; they are accustomed to long, detailed negotiating sessions. (T/F)

false

Compared to Indian negotiators, American negotiators are more likely to withdraw, use silence, and learn from within. (T/F)

false

Cross-border allies usually collaborate effectively, and are most often associated with long lasting trust and loyalty (T/F)

false

During exchange of task-related information, Mexicans tend to engage in lengthy, evasive conversation. (T/F)

false

Fundamental to American culture is a concern for the welfare of the group; anything that affects one member or part of society affects the others. (T/F)

false

In a highly competitive environment, alliances are a slow and risky route to globalization, and therefore, are likely to be avoided. (T/F)

false

Middle Easterners avoid hiring mediators, as they cannot deal with direct conflicts. (T/F)

false

Negotiators in the Far East address issues one at a time, in a linear fashion. (T/F)

false

Risk tolerance is one of the cultural variables that never affects the decision-making process (T/F)

false

The least important single factor determining International Joint Venture success or failure is the choice of a partner. (T/F)

false

The relationship-building process during negotiation is over as soon as a negotiator is done exchanging task-related information. (T/F)

false

The strategic management process consists of independent and discontinuous steps (T/F)

false

The strategic management process invariably follows a linear format. (T/F)

false

Which of the following is a regional risk with regard to strategic entry scanning?

financial and currency instability

Which of the following would most likely be categorized as a global financial objective of an international firm?

foreign-exchange management

Which of the following factors has the maximum influence on the success of multinational firm alliances?

form of governance chosen

Arab negotiators will most likely make concessions because of their interest in ________.

forming long-term relationships

Which of the following cultural norms greatly affects the negotiation process for the Chinese?

ingrained politeness and emotional restraint

The ________ approach to conflict is being used when both parties negotiate on the basis of factual information and logical analysis

instrumental-oriented

A(n) ________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially) compared to competitors.

internal analysis

Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm?

internal sources

A(n) ________ refers to a JV among companies in different countries.

international joint venture

Which of the following strategies would most likely be used by a non-European company wanting to gain quick entry inside the European community?

international joint venture

Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________.

involvement of greater risks

International joint ventures are less likely to break up when ________.

issues are settled before the merger

Parent companies use the IJV control process in order to ensure that the management of the joint venture conforms to ________.

its own interests

A ________ is a new independent entity that is collectively created and owned by two or more parent companies.

joint venture

Opening its own subsidiaries in the host country may be better than contracting with an outside firm in the host country, if it is crucial for the firm to ________.

keep control of proprietary technology and processes

Which of the following is a strategic implementation used by McDonald's?

keeping prices low to build market share

Which of the following terms refers to the process by which the firm integrates and benefits from the experiences and skills learned by its employees?

knowledge management

All of the following are cooperative aspects of strategic alliances, EXCEPT ________.

learning new intangible skills from alliance partners

Which of the following is a national risk with regard to strategic entry scanning?

legal protection

Which of the following is an area where the host government influences the strategic choices and implementations of foreign firms?

level of taxation

Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time?

licensing

In Chinese culture, the term ________ refers to a person's moral character; it is the most important thing defining that person and without it, one cannot function in society.

lien

Where ownership is divided among several partners, the parent organizations are more likely to delegate the operational running of the IJV to ________.

local IJV management

Which of the following variables is LEAST relevant to the profile of an opposing party in a cross-cultural negotiation?

location of the negotiation

A ________ gives a foreign company the rights to oversee the daily operations of a business but not to make decisions regarding ownership, financing, or strategic and policy changes.

management contract

Which of the following entry strategies is most likely to serve as a short-term strategy and to provide limited income?

management contract

According to Berdrow and Lane, the process of transfer can be defined as ________.

managing the flow of existing knowledge between parents and from the parents to the IJV

According to Berdrow and Lane, the process of harvest can be defined as ________.

managing the flow of transformed and newly created knowledge from the IJV back to the parents

According to Berdrow and Lane, the process of transformation can be defined as ________.

managing the transformation and creation of knowledge within the IJV through its independent activities

Which of the following is NOT a characteristic of strategic implementation of the McDonald's corporation?

minimizing autonomy

According to Ghemawat, which of the following offers room for cross-border strategy to have content distinct from singlecountry strategy?

semi-globalization

Axiomatic appeals are generally based on ________.

socially accepted ideals

Which of the following terms refers to the nature and appearance of the relationship between the people pursuing common goals in a negotiation?

software of negotiation

Which of the following primarily determines the extent of control exercised over an IJV by its parent company?

staffing choices for top IJV positions

Which of the following human resource problems can be simplified by increasing the autonomy of the IJV?

staffing friction

According to Pierre Casse, which of the following is a typical characteristic of a successful Indian negotiator?

stays humble and trusts the opponent

Which of the following is the quickest and cheapest way to develop a global strategy?

strategic alliances

The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ________.

strategic planning

A company's choice to operate in a business or businesses and the ways in which it differentiates itself from its competitors is called its ________.

strategy

Which of the following is a common Chinese tactic used during negotiations with Americans?

suggesting that the Americans are reneging on their friendship

Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to ________.

switch from exporting to overseas manufacturing

Overlooking cultural differences in cross-border alliances can create a negative impact when ________.

target country has conflicting practices and systems

What are the two negotiation stages that Americans should expect when negotiating with the Chinese?

technical and commercial

Business people report two major areas of conflict in negotiating with the Chinese—their apparent insincerity about reaching an agreement and ________.

the amount of details desired about product characteristics

Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations?

the firm searches for less restrictive operating environments overseas

A major advantage of global and cross-border alliances is that they share the cost and risk of research and development of new products. (T/F)

true

A merger is a transition mechanism that propels the partner's strategies forward in a turbulent environment faster than would be possible for each company alone. (T/F)

true

Alliances can be formed for various purposes, e.g., sharing technology, marketing, or production joint ventures. (T/F)

true

Companies seek out less restrictive foreign operating environments when the regulations and restrictions enforced by the firm's home government become expensive. (T/F)

true

Culturally based differences in verbal and nonverbal negotiation behavior influence the negotiation process at every stage. Such tactics and actions include promises, threats, initial concessions, silent periods, interruptions, facial gazing, and touching; some parties resort to various dirty tricks. (T/F)

true

During the stage of concessions and agreement, Russians and Chinese generally take extreme positions. (T/F)

true

Globalization of competitors is one of the reactive reasons that prompt a company to operate overseas (T/F)

true

Guanxihu refers to a bond between specially connected firms that generates preferential treatment for members of the network. (T/F)

true

MNCs often partner with local small enterprises to capture new ideas and innovations. (T/F)

true

Many Arab negotiators, following Islamic tradition, use mediators to settle disputes. (T/F)

true

Most global manufacturers have equity alliances with suppliers, sub-assemblers, and distributors-forming a network of internal family and financial links. Risk-sharing is often the motive behind equity alliances. (T/F)

true

Nontask sounding involves general, polite conversation and informal communication before meetings. (T/F)

true

One pressing reason for many large firms to expand overseas is to seek economies of scale. (T/F)

true

Relationship building is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions. (T/F)

true

Russians employ axiomatic appeals—that is, their appeals are based on the ideals generally accepted in their society. (T/F)

true

Since the Chinese have a preference for emotional restraint and saving face, aggressive or emotional attempts at persuasion in negotiation are likely to fail. (T/F)

true

The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called strategic planning. (T/F)

true

The ringi process involves gaining approval on a proposal by circulating documents to those concerned throughout the company (T/F)

true

The term International Joint Venture (IJV) control refers to the processes that management puts in place so as to direct the success of the firm's goals. (T/F)

true

Transformational outsourcing refers to the view that global sourcing can produce gains in efficiency and profitability by fully leveraging talent around the world. (T/F)

true

Working partnerships between two or more companies across national boundaries and increasingly across industries are referred to as global strategic alliances. (T/F)

true

Which of the following is a contractual entry mode?

turnkey projects

All of the following would be examples of international joint ventures EXCEPT ________.

two Venezuelan companies sharing ownership of a company in Venezuela

In the American culture, which of the following is most likely considered a rough tactic used during negotiations?

uncomfortable room temperatures

Which of the following most likely provides a strategic advantage during the implementation of a global alliance?

unified technology infrastructure

The primary motive in the contract manufacturing strategy is ________.

utilizing inexpensive overseas labor

Which of the following is one of the stages in the negotiation process?

preparation

________ reveal an inefficient use of assets that restricts profitability.

Financial ratios

Which of the following statements is true of licensing?

A major advantage of licensing is that it is the least risky method of international expansion.

Research shows that managers from ________ have the highest tolerance for risk.

America

Which of the following is true about Arab negotiators?

Arab negotiators use mediators to settle disputes.

According to Dovev Lavie, which of the following is a caution given to global companies by value capture strategies?

Avoid partners that compete in your industry if they enjoy superior bargaining power.

According to the research conducted by Tung et al., people in ________ are bureaucratic, educated, diversified, highly relationship-oriented, and more direct

Beijing

________ are companies that start out with a global reach, typically by using their Internet capabilities and also through hiring people with international experience and contacts around the world.

Born globals

In the ________ culture, negotiators tend to use the word "no" repeatedly, and they are best described as spontaneous and talkative.

Brazilian

During the exchange of task-related information, who among the following people would most likely ask many questions of their counterparts, delve specifically and repeatedly into the details at hand, and provide only vague and ambiguous material during a presentation?

Chinese

________ are transition mechanisms that propel the partners' strategies forward in a turbulent environment faster than would be possible for each company alone.

Cooperative strategies

________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level.

Distinctive competencies

________ includes environmental scanning and continuous monitoring to keep abreast of variables around the world that are pertinent to the firm

Environmental assessment

________ are based on what North Americans believe is objective information, presented with the assumption that it is understood by the other side on a logical basis.

Factual appeals

Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team recently arrived in China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should make token concessions to the Chinese throughout the negotiation process?

Fizzy executives hope to have other business deals

Which of the following statements best differentiates between franchising and licensing?

Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property.

Which of the following cultural groups enjoys debate and conflicts and will often interrupt presentations to argue about an issue even if it has little relevance to the topic being presented?

French

Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country?

GLOCAL

________ refers to the establishment of worldwide operations and the development of standardized products and marketing

Globalization

________ refers to the processes that management puts in place in order to direct the success of the joint venture's goals.

IJV control

Which of the following statements is true of clustering?

It helps a firm gain an increase in efficiencies

Yu Fei, a negotiator for Tama Inc., has a conference with an American competitor's officials. Her seniors advise her to completely understand the Americans' viewpoint during the conference. Which of the following benefits will be most likely achieved by Yu Fei if she listens to her seniors' advice?

It will encourage Yu Fei to assess a wide range of alternatives for a resolution.

Which of the following cultures views formal contracts as insulting and wasteful, and prefers to make agreements based on mutual understanding and trust?

Japanese

Which of the following is true about Japanese negotiators?

Japanese negotiators are calm and patient, and accustomed to long, detailed negotiating sessions.

Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following best supports Kevin's argument that he should be the primary negotiator?

Kevin is the oldest and the most experienced person on the negotiating team.

________ is the conscious and active management of creating, disseminating, evolving, and applying facts, information, or skills acquired through experience or education, to strategic ends

Knowledge management

________ is an ideal strategy for small businesses with few financial and managerial resources for direct investment abroad.

Licensing

Which of the following is most likely to be true about negotiators in the Far East?

Negotiators approach issues in a holistic manner, deciding on the whole deal at the end.

Barton & Green is an MNC based in the United States that provides a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following best supports the argument that Barton & Green should outsource its IT infrastructure to TMC Enterprises, one of the best IT infrastructure maintenance firms in India?

Outsourcing will enhance Barton & Green's competitiveness.

Panera Bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. The company began in 1981 with stores primarily located along the east coast of the United States. Since then, the firm has expanded to over 1,300 locations throughout the United States and Canada. The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following, if true, supports the argument that Panera Bread should expand into Asia through franchising?

Panera Bread executives want fast access to the Asian market without a significant investment of capital.

Panera Bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. The company began in 1981 with stores primarily located along the east coast of the United States. Since then, the firm has expanded to over 1,300 locations throughout the United States and Canada. The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following, if true, undermines the argument that Panera Bread should expand into Asia through franchising?

Quality control is a high priority for Panera Bread.

________ is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.

Relationship building

A ________ is an assessment of a firm's capabilities relative to those of its competitors as pertinent to the opportunities and threats in the environment for those firms.

SWOT analysis

According to the research conducted by Tung et al., which of the following cities in China has people who are businesssavvy, confident, career-oriented, and materialistic?

Shanghai

________ are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages.

Strategic alliances

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.

Strategy

In which of the following countries do people typically begin the concessions and agreement stage of negotiation with what they are prepared to accept rather than take extreme positions?

Sweden

Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should be prepared with specific details about the product specifications and technology that will be used?

The Chinese firm uses a two-stage negotiation process: the technical and the commercial.

Which of the following statements is true regarding a negotiation process?

The cultural norms of the place determine the order of the negotiation process stages.

Which of the following best describes the role of e-commerce enablers?

They help small- and medium-sized companies to go global without the internal capabilities to carry out global activities.

Which of the following is true about the negotiating tactics used by the Russians?

They stall for time

Which of the following is a similarity between the negotiation styles of both North Americans and Latin Americans?

They tend to be argumentative when they think they are right.

Barton & Green is an MNC based in the U.S. that makes a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following questions is the most relevant to Barton & Green's decision to outsource its IT infrastructure to TMC Enterprises, a firm in India?

What is the financial health of TMC Enterprises?

What is an equity alliance?

a collaborative arrangement in which at least one collaborating company takes an ownership position in the other

The method of using extreme positions during the concessions and agreement stage of negotiation involves ________.

careful timing of the disclosure of information and concessions

The most important single factor determining IJV success or failure is the ________.

choice of a partner

Which of the following is a venture-specific factor that affects the choice of international entry mode for a company?

ability to protect proprietary technology

Which of the following is a competitive aspect of strategic alliances?

accelerating diffusion of industry standards and new technologies to create barriers to entry

Which of the following types of appeals, typically used by Arabs, is based on emotions and subjective feelings?

affective appeals

Organizational design as a mechanism for factoring international joint venture control refers to the ________.

amount of decision-making power that the joint venture holds

According to Pierre Casse, Arab negotiators ________.

are able to resist any kind of pressure

According to Dovev Lavie, which of the following is a value-creation strategy?

assimilating network resources to acquire new skills and capabilities

Which of the following types of decision making is generally used in China, Germany, Turkey, and India?

autocratic

Using a problem-solving approach during cross-cultural negotiations requires a negotiator to ________.

avoid criticizing the other party in a personal way

Linda, the operations executive for Tango, is asked to travel to China in order to set up a new operational facility. When negotiating with the Chinese investors, Linda should ________.

be focused on establishing long-term, trusting relationships, even at the expense of some immediate returns

One of the primary purposes of relationship building during the negotiation process is to ________.

build mutual trust

MNCs often partner with local SMEs in order to ________.

capture new innovations and ideas

Futura-Core Technologies, an electronics manufacturing firm, has advantages in financial capability and sustainability, but a disadvantage in speed of innovation. It is also at a disadvantage relative to Core-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions. Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix?

comparative advantage

In order to minimize potential problems in alliances, companies should most likely choose partners with ________.

complementary products and skills

Which of the following is most likely the last stage of negotiation?

concessions and agreement

The dual role of strategic alliance refers to the ________.

conflict between cooperation and competition

Alliances are also known as ________.

cooperative strategies

Which of the following represents government influence on IJVs?

copyright protection

Which of the following is a cooperative aspect of strategic alliances?

creating economies of scale in tangible assets

The need for knowledge management in IJVs primarily stems from ________.

cultural and system differences between partners

Which of the following variables is frequently overlooked when deciding on entry strategies and alliances, particularly when the target country is perceived to be similar to the home country?

culture

Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas. In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas?

customer demands

Which of the following is a reactive reason that prompts a firm to expand overseas?

customer demands

Which of the following is a typical characteristic of a Japanese work group?

decision making based on a patient, long-term perspective

In the American culture, which of the following is most likely to be considered a "dirty trick" during cross-cultural negotiations?

deliberately distorting facts

When preparing for cross-cultural negotiations, managers should first evaluate their own negotiation styles in order to ________.

determine how they differ from the norm in other countries

Which of the following is most likely to be a reason for ineffective international business negotiations?

differences in cultural values and problem-solving techniques

Globe Cars, a leading automobile ancillary firm in China, has decided to form a global alliance with Fulda, a German tire manufacturing company. Which of the following is a primary challenge that Globe Cars is most likely to face in this alliance?

differences in national cultures

Which of the following is a pitfall of cross-border alliances?

disputes over management

Which of the following is NOT a knowledge management process?

distributing knowledge to clients and media outlets

According to Pierre Casse, which of the following is a typical characteristic of a Swedish negotiator?

down to earth and overcautious

NextLinx Corporation provides a wide range of strategic implementation services for small- and medium-sized organizations. It allows all trading partners to collaborate in a single online location, using the same information and processes. Therefore, NextLinx is an example of a(n) ________.

e-commerce enabler

Which of the following terms refers to company specialists who provide other companies with services such as Web site translation?

e-commerce enablers

Which of the following is a global risk with regard to strategic entry scanning?

economic and financial risk

The first broad scan of all potential world markets should result in the firm being able to ________.

eliminate markets with unreasonable entry conditions

Which of the following factors most significantly affects all other variables necessary for the successful implementation of a global alliance?

employee leadership

Which of the following is a way in which formal institutions affect international competition?

enforcing antidumping laws

Which of the following terms refers to the continuous process of gathering and evaluating information about variables and events around the world that may pose threats or opportunities to the firm?

environmental assessment

The process of gathering information and forecasting relevant trends, competitive actions, and circumstances that will affect operations in geographic areas of potential interest is called ________.

environmental scanning

France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of TCL-Thomson Electronics. This is best described as a(n) ________.

equity strategic alliance

From an American perspective, the ________ stage of negotiation is straightforward, objective, efficient, and direct.

exchanging task-related information

Which of the following approaches to conflict involves handling the situation indirectly and implicitly without clear delineation of the situation from the person handling it?

expressive-oriented

Which of the following environmental factors would most likely increase the risk for a firm that has established a fully owned subsidiary in a country?

expropriation threats

Research in the United States indicates that during the final stage of negotiations, it is best to start with ________.

extreme positions

Which of the following is an advantage of establishing a new, fully-owned foreign manufacturing?

full control over decision making

Meryl Software Inc., an American MNC wishing total control of its operations, wants to acquire an existing firm, Graphiti Animations, in Canada. If acquired, Graphiti Animations would be a ________.

fully-owned subsidiary

Which of the following is a part of the rational decision-making process?

gathering and analyzing relevant data

Which of the following is an internal factor that affects the choice of international entry mode for a company?

global experience of firm and managers

Which of the following types of alliances can be formed between a company and a foreign government?

global strategic alliance

Which of the following is the most common reactive reason for a firm to extend its operations overseas?

globalization of competitors

Dell is an American corporation that deals with computer technology. With its worldwide sourcing and fully merged production and marketing system, Dell is considered to be a ________.

globally integrated company

Which of the following terms refers to a bond between specially connected firms that generates preferential treatment to members of the network?

guanxihu

American managers believe strongly in self-determination and perceive problem situations as something they can change. This shows that they ________.

have internal locus of control

Japanese negotiators tend to ________.

hide emotions

In the Far East, details are likely to be worked out ahead of time through the "backdoor" approach. Which of the following terms refers to this approach?

houmani

Which of the following is the first step in developing a successful export strategy?

identification of a potential market

The second part of the strategic management process involves the ________.

implementation phase

A negotiation support system provides support to the negotiation process by ________.

increasing the likelihood that an agreement is reached when a zone of agreement exists

Which of the following is an external factor that affects the choice of international entry mode for a company?

industry growth rate

Which of the following can be regarded as a pressure to globalize?

information technology expansion

Trout Corp., Kirgo Ltd., and Sturgeon Inc., three of the leading construction companies in the United States, have decided to join hands and create a new cement manufacturing company. According to their agreement, Trout Corp. will have 50 percent equity, Kirgo Ltd. will have 20 percent equity, and Sturgeon Inc. will have 30 percent equity. In this given scenario, Sturgeon Inc. is referred to as a ________.

minority JV partner

Cross-border allies often have difficulty collaborating effectively, especially in competitively sensitive areas. This generally leads to ________.

mistrust and secrecy

Regional strategies are more appropriate than global strategies for firms that operate in ________.

multidomestic industries

At which three levels should firms ideally perform global environmental analysis?

multinational, regional, and local

The initial challenge in implementing strategies in emerging markets is likely to be how to ________.

navigate poor infrastructures

Which of the following terms refers to the process by which two or more parties meet to try to reach an agreement regarding conflicting interests?

negotiation

Which of the following best defines guanxi?

network of personal relations

Which of the following behaviors is NOT consistent with Casse's profile of successful American negotiators?

never compromises

Which of the following is generally viewed as the most risky entry strategy?

new, fully-owned subsidiaries

Runnerz Inc., a leading manufacturing and retail company that designs and develops footwear and apparel, has signed a contract with a particular courier service for managing the delivery process. The courier service is required to deliver goods from the factory to the warehouse, to customers, and also to collect customer payments for the goods. This is a typical example of a(n) ________.

non-equity strategic alliance

Alliances that are carried out through contract rather than ownership sharing are called ________.

non-equity strategic alliances

Which of the following terms refers to general, polite conversation and informal communication before meetings?

nontask sounding

Which of the following is most likely a subtle and complex behavior that makes cross-cultural negotiations difficult?

nonverbal communication

Which of the following is a cultural difference that can significantly affect cross-border alliances?

organizational formality

Which of the following charts the direction of the company and provides a basis for strategic decision making?

organizational mission

The use of professional or skilled workers located in countries other than that of the home country is referred to as ________.

outsourcing

According to David Lei, the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that ________.

partners can become competitors

What forms the basis for the enforcement of most business contracts in Mexico and China?

personal commitments to individuals

During which stage of the negotiations process does hard bargaining begin?

persuasion

Which of the following stages of negotiations is most likely to take place immediately after the exchange of task-related information?

persuasion

Which of the following serves as a bridge from relationship building to the more formal stages of negotiating?

posturing

According to Adler, in order to understand the perspectives of both sides and to prepare for meetings effectively, a negotiator must ________.

practice role reversal

A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. Which of the following terms best describes the Frenchman's mistake?

projective cognitive similarity

Joint ventures are often the chosen form of multinational firm alliances because they ________.

provide greater control of proprietary technology

Which of the following most likely encourages firms to localize?

providing domestic subsidies

A country seeks new infusions of capital, technology, and know-how. It announces that it shall exempt taxes and grant concessions for foreign investors. Which of the following measures is the country employing?

providing incentives

When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits. This is most likely an example of a firm expanding overseas due to ________.

provision of incentives

Which of the following is the primary advantage of using e-business as a local-level entry strategy?

rapid entry and exit from markets

For long-term positive relations, the goal of negotiation should most likely be to ________.

reach a settlement that benefits all parties

All of the following are examples of IJV control mechanisms used by parent firms EXCEPT ________.

regional authorities

In the negotiation process, participation in social events, tours, ceremonies, and informal conversation is a characteristic of the ________ stage.

relationship building

Which aspect of the negotiation process will most likely occur on a continuous basis?

relationship building

Which of the following aspects of negotiating is most closely associated with nontask sounding?

relationship building

An internal analysis focuses on the company's ________.

resources and operations

In Japanese culture, the term ________ refers to a process which involves gaining approval on a proposal by circulating documents to those concerned throughout the company. It usually comprises four steps: proposal, circulation, approval, and record.

ringi

Which of the following is a typical task performed by e-commerce enablers?

screening orders

Which of the following is the proactive reason that prompts firms to expand overseas?

seeking economies of scale

With regard to less-developed countries, most problems with international joint ventures involve ________.

the local partner

Licensing is especially suitable for ________.

the mature phase of a product's life cycle when production is relatively standardized

International joint ventures are like a marriage because ________.

the more issues that can be settled before the merger, the less likely it will be to break up

Which of the following is the most beneficial aspect of an international joint venture?

the partner's local contacts and markets will be utilized

According to Gupta and Govindarajan, an alliance-based entry strategy is most suitable when ________.

the risk of asymmetric learning by the partner is low

In a cross-border alliance, cultural differences can be overlooked when ________.

the target country is similar to the home country

In spite of the potential problems with local partners, many firms rush the process of partner selection because ________.

they are anxious to get into an attractive market

Which of the following motivates a company to form cross-border alliances?

to gain rapid entry into a new and consolidating market

Which of the following is NOT a typical reason for forming cross-border alliances?

to test marketing campaigns overseas

Offshoring provides the company with access to foreign markets while avoiding ________.

trade barriers

Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain?

trade barriers

Which of the following terms suggests that global sourcing can produce gains in efficiency, productivity, quality, and profitability by fully leveraging talent around the world?

transformational outsourcing


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