MAN3600 Final

Which of the following nations is a popular base for technical and use-support for English, French, and German speaking customers throughout Europe? - Saudi Arabia - USA - South Africa - Germany

- South Africa

Which of the following is true with regard to global advertising agencies? - They are also known as unauthorized intermediaries. - They rarely offer additional services such as market research, publicity, and package design. - They can create advertising that is both global and sensitive to local conditions - Typically, they do not cater to MNEs

- They can create advertising that is both global and sensitive to local conditions

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) was created by the __________. - IMF - United Nations - WTO - World Bank

- WTO

Which of the following is protected under copyright law? - the Nike swoosh - the art of Jackson Pollack - McDonald's clown shaped man with puffed out costume legs - Winnie the Pooh image

- Winnie the Pooh image

Where are the majority of the world's top licensing firms based? - Europe - United States - China - Japan

United States

Which of the following is an example of intellectual property? - systems of measurement - Volkswagen's logo - an unpublished book - a phone directory

Volkswagen's logo

One of the advantages for the franchisor is that it is easier to maintain control over the franchisee. T or F

True

_________ refers to an employees ability to function effectively with those from different cultural backgrounds or in different cultural contexts.

cultural intelligence

Which of the following most likely occurs as a result to expatriate failure? - culture shock - diminished careers - acculturation - knowledge sharing

diminished careers

A firm that uses the internet to provide detailed info and the means for foreigners to buy offerings is using _____.

direct marketing

In which of the following industries is an adaptation strategy least likely to be appropriate?

electronics

Prof Sean Petersons class of international business has been studying the controversies surrounding global sourcing. Prof Peterson divided the class into two groups, A and B. Group A was assigned the task of defending global sourcing, whereas group B was assigned the task of arguing against global sourcing. The concept of creative destruction can be reasonably used by group A to support the view that _________.

global sourcing creates opportunities and stimulates innovation

A __________ is the firm's integrated network of sourcing, production, and distribution, organized on a worldwide scale and located in countries where competitive advantages can be maximized - demand chain - buying center - global supply chain - decision making unit

global supply chain

In a system franchising agreement, the franchisor provides _______.

production and marketing methods

The problem of end-user prices reaching exorbitant levels in the export market, caused by multilayered distribution channels, intermediary margins, tariffs, and other international customer costs is known as _______. - international price escalation - incremental pricing - standardization - puffery

international price escalation

Which of the following activities is highly important to firms as a strategic asset? - manufacturing of parts - customer service - sales and distribution - marketing and branding

marketing and branding

Contract manufacturing can best be defined as ________.

an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications

Which of the following is a recent trend regarding women in business?

companies worldwide are substantially increasing the number of women on foreign assignments

When managers attempt to standardize their international marketing program, they can expect __________. - diminished efficiency - cost reduction - brand dilution - very high profit margins

cost reduction

___________ makes performance evaluations more complex in the international context. - The problem of non comparable outcomes - Inadequate cross-cultural skills - Overproduction - Knowledge sharing

problem of non comparable outcomes

The likelihood of internalizing ___________ rather than outsourcing it is considerable high - R&D - manufacturing of parts - sales and distribution - customer service

- R&D

Which of the following is true with regard to global sourcing? - Global sourcing has declined significantly in the current phase of globalization - Global sourcing is a low-control strategy in which the focal firm sources from independent suppliers through contractual agreements - Global sourcing refers to the relocation of a business process or entire manufacturing facility to a foreign country - Global sourcing does not represent the firm's initial involvement in international business

- Global sourcing is a low-control strategy in which the focal firm sources from independent suppliers through contractual agreements

___________ are typically the largest proportion of workers hired abroad and usually work in manufacturing, assembly, basic service activities, clerical work, and other non managerial functions. - Home country nationals - Parent country nationals - Third country nationals - Host country nationals

- Host country nationals

Which of the following is true about franchising as an entry strategy? - It provides firms with minimum control over foreign operations - It is an ownership-based international business activity. - It restricts a firm's ability to expand more rapidly abroad. - It is typically characterized as an unstable, short-term entry strategy.

- It restricts a firm's ability to expand more rapidly abroad.

Which of the following is true with regard to the distinctive features of labor around the world? - US labor union have lost their standings as an important political force. - Given the weak ties between Chinese labor and gov't, Western managers rarely deal with China's national and local gov'ts in managing labor relations. - Union in Europe do not represent white collar workers. - Labor activism and dispute resolution unions have grown significantly in China in recent years.

- Labor activism and dispute resolution unions have grown significantly in China in recent years.

Which of the following is an examples of a trademark licensing agreement? - a China based consumer electronic company that has invented a flexible casing for its MP3 player - a Thailand based pharmaceutical company that receives manufacturing knowledge from a US based pharmaceutical - a UK based cosmetics manufacturer that is allowed to use an American cosmetics manufacturing firm's logo for its new line of "Titanium" makeup products - a US based clothing company that opens a factory in Vietnam and Cambodia to utilize low-labor costs.

- a UK based cosmetics manufacturer that is allowed to use an American cosmetics manufacturing firm's logo for its new line of "Titanium" makeup products

In a licensing agreement, the licensee provides ______________. - the rights to use its industrial design - intellectual property, technical information and assistance - a combination of down-payment and royalty - the know-how and supporting products such as, raw materials and components.

- a combination of down-payment and royalty

A cross-border contractual relationship provides the focal firm with __________ over the foreign partner. - a low level of control - a moderate level of control - a high level of control - seldom any control

- a moderate level of control

Contract manufacturing can best be defined as __________. - the outsourcing to independent suppliers of business service function such as accounting, payroll, HR, travel services, customer service, or technical support - the relocation of a business process or entire manufacturing facility to a foreign country - sourcing from the firm's own production facilities - an arrangement in which the focal firm contract with an independent supplier to manufacture products according to well-defined specifications

- an arrangement in which the focal firm contract with an independent supplier to manufacture products according to well-defined specifications

Which of the following best describes an expatriate? - an employee who is assigned to live and work in a foreign country for an extended period of time - an employee who returns to his home country after a foreign assignment - an employee hired on a temporary basis by an MNE - an employee who is a host-country national

- an employee who is assigned to live and work in a foreign country for an extended period of time

Which of the following is the best example of a back-office BPO activity? - customer service - billing - marketing - technical support

- billing

Locating manufacturing in those countries with low-cost labor enables a firm to _______. - charge premium prices - create artificial demand - standardize products - charge lower prices

- charge lower prices

All of the following refer to external factors that impact international pricing EXCEPT _______. - cost of manufacturing - value-added taxes - shipping - anticipated fluctuations in currency exchange rates

- cost of manufacturing

To maximize returns, management should outsource those activities _________. - that offer great value to the bottom line - in which it is relatively weak - that are critical to the firm's core competencies - in which it has the greatest expertise and knowledge

- in which it is relatively weak

Critics of global sourcing maintain that it __________. - leads to reduced national competitiveness - results in job loss in host countries - enhances standards of living - causes production to drop draatically

- leads to reduced national competitiveness

Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a rep from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig and Devon. The CCC HR dept is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India. Which of the following, if true, would strengthen the argument in favor of hiring a local manager for the New Delhi facility? - Indians are mostly multilingual - local connections are crucial to achieve success in the local marketplace in India. - CCC wants to have strong control over all its foreign operations - the quality of labor in New Delhi is no lesser than that in Texas.

- local connections are crucial to achieve success in the local marketplace in India.

Which of the following is NOT provided by the licensor? - ongoing managerial guidance - technical information and assistance - an advisory role - trademark

- ongoing managerial guidance

________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer's mind, emphasizing differences from competitors' offerings - positioning - standardization - diversifying - adaption

- positioning

A furniture company that makes its marketing program elements uniform, targeting entire regions with similar products, is demonstrating _____________. - product diversification - customization - standardization - adaption

- standardization

Many MNEs employ relatively standardize advertising around the world, primarily because by doing so ________________. - they can cater to a wide variety of audiences with different preferences - they can benefit from consumer inputs on effective marketing - they are able to produce high-quality ads - they are able to save costs

- they are able to save costs

Which of the following is an example of licensing? - An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada. - An Indian automobile manufacturing company, buys engines from a Japanese manufacturer for its environment friendly cars. - A South-Korean consumer electronics manufacturer produces the screens for its brand of television and sends orders to a factory in China to manufacture the casing for the television - A U.K-based motorcycle manufacturer, produces limited-edition customizations of the company's stock models and sells it to customers around the world.

An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada.

International human resource management is usually more complex than domestic human resource management because _________.

IHRM managers are required to demonstrate greater involvement in employees personal lives

An American company that planned to outsource IT development would be most likely to save significantly in salary costs by hiring quality professionals from ________.

Philippines

Which of the following challenges is applicable to the franchisee in a franchising agreement? - The franchisee must make their own arrangements to acquire initial training and know-how - The franchisor holds much power, including superior bargaining power - There is no scope to operate and independent business - There is decreased likelihood of business success

The franchisor holds much power, including superior bargaining power

Wonder Cat is a popular, new cartoon series created by the U.S. based All Cartoon Channel (ACC). Currently, th only Wonder Cat item available for sale are his shirts that are sold exclusively through the ACC website. The cartoon series is a big hit in China, and as a result ACC has been approached by a Chinese firm about a licensing agreement. ACC executives are considering the pros and cons of such an agreement before making any final decisions. Which of the following statements most like;y supports an ACC decision to enter a licensing agreement with the Chinese firm?

The wonder cat brand's products could be easily counterfeited in other markets except in the Chinese markets

Which of the following is true with regard to positioning? - Unlike branding, positioning is not intended to evoke the specific attributes that consumers associate with a product. - More often than not, positioning dilutes brand equity. - Through positioning, firms emphasize differences from competitors' offerings. - Positioning refers to the process of scaling up production in a market characterized by high demand.

Through positioning, firms emphasize differences from competitors' offerings

Which of the following is true with regard to strategies for minimizing the risks of global sourcing

To ensure the success of sourcing ventures, focal firms must exercise great care to identify/screen potential suppliers, then monitor activity of those suppliers

Which of the following is provided by the licensor in a licensing agreement? - a monetary down-payment plus royalties for all products sold locally - a combination of intellectual property and technical information and assistance - a storefront or facility and the necessary materials to make the product - a combination of a lump-sum payment and the intellectual know-how

a combination of intellectual property and technical information and assistance

A cross border contractual relationship provides the focal firm with ________ over the foreign partner.

a moderate level of control

In which of the following situations is the employee considered a host-country national? - a French MNE sends a French employee to work in its Canadian subsidiary - a Japanese MNE sends an American employee to work at its Hong Kong subsidiary - a Chinese MNE employs a Chinese citizen for its subsidiary in Singapore - an American MNE employs a Mexican citizen for its subsidiary in Mexico

an American MNE employs a Mexican citizen for its subsidiary in Mexico

Critical incident analysis examines _______. - a situation under which an MNE is forced to relocate operations abroad - an episode in which tension arises between employee and foreign counterpart due to a cross-cultural misunderstanding - an episode in which tension arises between an employee and a manager with regard to performance evaluation - a critical situation in which the internal stakeholders of a firm fail to reach a consensus with regard to a common issue

an episode in which tension arises between an employee and a manager with regard to performance evaluation

Gray marketers are _________ - typically large business conglomerates - unauthorized intermediaries - authorized distributors - a firm's most effective promotional channels

authorized distributors

Locating manufacturing in those countries with low cost labor enables a firm to _________.

charge lower prices

Which of the following is a characteristic of a know-how agreement? - exclusive rights to reproduce original art work - permission to use manufacturing facilities for a fee - exchanging technological or management information for royalties - trading the use of a name brand for management advice

exchanging technological or management information for royalties

An MNE would most likely employ a host-country national when _______. - it has substantial knowledge regarding upstream value-chain adding activities - it emphasizes R&D and manufacturing - it wants to maintain strong control over local operations - it needs specialized knowledge about the market

it needs specialized knowledge about the market

Which of the following is an advantage of licensing? - It is ideal for products, services, or knowledge that is highly complex - It is easy to maintain control over how the licensed asset is used - it requires very little capital investment in the foreign market - it guarantees a basis for future expansion in the market

it requires very little capital investment in the foreign market

Typically, __________ provide(s) a means for collective bargaining. - government agencies - the top management of MNEs - labor unions - NGOs

labor unions

Which of the following constitutes a major disadvantage for exporting firms that primarily use independent distributors based abroad? - inability to monitor currency exchange rates - lack of control over pricing - absence of brand loyalty among customers - limited access to low-cost labor

lack of control over pricing

A collective mark is a_________.

logo belonging to an organization whose members use it to identify themselves and associate their product with a level of quality, accuracy, geographical origin, or other positive characteristic

A subsidiary is most likely to receive favorable treatment from an MNE if it is located in a country with _________. - lower corporate income-tax rates. - significant restrictions on profit repatriation - low tariffs for the product in question - political instability

lower corporate income-tax rates

Richard Johnson, an American citizen, is a senior manager in a telecom company based in Texas. He is currently posted in and works from the company's subsidiary in Uganda, Africa. Richard is a ________. - host-country national - parent-country national - third-country national - repatriate

parent-country national

_________ is a formal process for assessing how effectively employees perform their jobs - performance planning - performance management - performance appraisal - performance guarentee

performance appraisal

Firms with global mindsets are characterized by _____________. - staff diversity - parochialism - a strong sense of national pride - rigid hiring policies

staff diversity

Perhaps the most important distinction between standardization and adaptation is that ________. - standardization helps the firm customize products according to customer preferences, while adaptions helps the firm save time - standardization helps the firm cut costs, while local adaptation helps the firm more precisely cater to local needs and requirements - standardization helps the firm cater to the needs of local customers, while adaptation helps the firm save costs through mass production - standardization helps the firm upgrade quality to suit the unique taste of consumers, while adaptation emphasized uniformity

standardization helps the firm cut costs, while local adaptation helps the firm more precisely cater to local needs and requirements

The greatest amount of licensing occurs in the __________ industries. - pharmaceutical - music - toy - mining

toy

The practice of pricing intermediate or finished products exchanged among the subsidiaries and affiliates of the same corporate family located in different countries is known as - transfer pricing - break-even pricing - premium pricing - discounting

transfer pricing

__________ is an arrangement in which the focal firm or a consortium of firms plans, finances, organizes, manages, and implements all phases of a project abroad and then hands it over to a foreign customer after training local workers - home-replication strategy - exporting - turnkey contracting - equity-based collaborative venture

turnkey contracting

Base remuneration is also referred to as __________. - incentives - allowance - wages - benefits

wages