321 final exam

_____ is the cost needed to own a product, consisting of initial purchase cost and follow-up maintenance/service cost.

Total Cost of ownership

_____ is specific preparation to do a particular job.

Training

Which strategy is organizationally complex and most difficult to implement?

Transnational strategy

The two key elements to achieve alignment are power and _____.

Trust

_____ is leading the world in managerial compensation.

United States

Which of the following may be a hindrance to successful knowledge management?

Use of single-subsidiary-based incentives

A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.

acquisition

The difference between the acquisition price and the market value of target firms is called _____.

acquisition premium

The institution-based view driving alliances and acquisitions focuses on _____ concerns.

antitrust

In HRM, _____ refers to the determination of salary and benefits.

compensation

Pre-acquisition analysis often focuses on strategic fit, which is the effective matching of ____ strategic capabilities.

complementary

A non-equity based alliance is also called a _____.

contractual alliance

When an MNE is locally responsive, _____.

costs increase

Market orientation seeks to place the highest priority on which of the following?

creation of superior customer value

In the context of equity based alliances _____ involves both firms investing in each other

cross-shareholdering

At stage 1 in the formation of an alliance, a firm must _____.

decide whether growth can be achieved through market transactions

The act of investigating prior to signing contracts is called _____.

due diligence

_____ alliances are based on ownership or financial interest between the firms.

equity based

In an MNE, a perceived lack of talent and skills of HCNs often necessitates a(n) _____ approach.

ethnocentric

A(n) _____ emphasizes the norms and practices of the parent company relying on parent-country nationals.

ethnocentric approach

Non-native employees who work and reside in a foreign country are known as _____.

expatriates

Which of the following alliances is a contractual alliance?

franchising

Disregarding nationality, a(n) _____ approach focuses on finding the most suitable managers, who can be PCNs, HCNs, or TCNs.

geocentric

The _____ structure is appropriate for a localization strategy.

geographic area

MNEs adopting the _____ strategy may designate centers of excellence

global

In the context of the customer-focused dimension of a global matrix, the ____ structure supplies customers in a coordinated and consistent way across various countries

global account

For which of the following categories of customers can MNEs market localized products and services under local brands?

global agnostics

The category of customers who are in favor of buying global brands that signal prestige and cachet are called ______

global citizens

The _____ structure allows for consolidation on a worldwide or regional basis and reduces inefficient duplication in multiple countries.

global product division

The _____ structure is the opposite of the geographic area structure.

global product division

An MNE following a _____ strategy is more likely to hire a mix of parent-, host-, and third-country nationals as managers in their local subsidiary.

global standardization

The _____ strategy focuses on development and distribution of standardized products worldwide to reap maximum benefits from low-cost advantages.

global standardization

The global product division structure supports the _____ strategy.

global standardization

The second phase in an alliance dissolution is _____.

going public

Which is one of the four phases in an alliance dissolution?

going public

A compensation approach that pays expatriates the prevailing rate for comparable positions in a host country is called the _____ approach.

going rate

Compensation with a _____ makes locations, where pay is higher than in their home country, a more attractive place to work for PCNs and TCNs.

going rate approach

Which is the best-case scenario for an equity-based alliance?

high tacitness and high importance to direct organizational monitoring and control

When expatriates evaluate HCNs, cultural difference may create problems. In ____ countries, performance appraisals based on subordinate expressions could potentially undermine the power and status of supervisors.

high-power distance

MNEs with a _____ strategic orientation follow an ethnocentric staffing approach.

home replication

Which of the following strategies is usually the first one adopted when firms venture abroad?

home replication

In staffing, elimination of language and cultural barriers is an advantage of hiring _____.

host-country nationals

MNEs pursuing localization strategy typically hire _____ as top managers at local subsidiaries.

host-country nationals

The majority of a multinational enterprise's employees would typically comprise of _____.

host-country nationals

Bristall Inc. is a steel manufacturing company headquartered in the United States with subsidiaries in India, China, and the United States. To create a global mind-set for its subsidiary employees, Bristall Inc. relocated its employees in India to the United States. This employee relocation is an example of _____.

inpatriation

Which of the following occurs in the uncoupling stage of an alliance dissolution?

last minute salvage

MNEs interested in a _____ strategy are typically polycentric in nature when staffing.

localization

The _____ strategy focuses on a number of foreign countries/regions, each of which is regarded as a standalone market worthy of significant attention and adaptation.

localization

The _____ strategy is also known as multidomestic strategy.

localization

The _____ strategy is an extension of the home replication strategy.

localization

Which of the following strategies has the lowest interdependence on knowledge management?

localization strategy

Which strategy is best for environments where there are clear differences among national and regional markets and there is a low pressure for cost reduction?

localization strategy

The combination of operations and management of two firms to establish a new legal entity is called a(n) _____.

merger

_______ is the informal interpersonal relationships among managers of different units that may greatly facilitate intersubsidiary cooperation among various units

micro-macro link

_____ are associations between firms that are based on contracts and do not involve the sharing of ownership.

non-equity based alliances

In the context of acquisitions, the similarity in cultures, systems, and structures between firms is called _____.

organizational fit

MNEs pursuing home replication strategy typically hire _____ as top managers at local subsidiaries.

parent-country nationals

A _____ approach is the opposite of an ethnocentric approach.

polycentric

An informal understanding of expected delivery of benefits in the future for current services is referred to as a(n) _____.

psychological contract

A(n) ____ is an investment in real operations as opposed to financial capital.

real option

The ability to successfully manage interfirm relationships is called _____.

relational capability

In supply chain management, _____ is a focus to establish, maintain, and enhance associations with customers.

relationship orientation

Returning expatriates are referred to as _____.

repatriates

Who benefits the most from the acquisition premium valued during an acquisition?

shareholders of the target firm

In the context of the customer-focused dimension of a global matrix, the ____ structure allows a provider to sell whatever combination of goods & services that customers prefer, including rivals offerings

solutions-based

At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach?

stage 2

In which type of equity-based alliance does one firm invest in another?

strategic investment

Which of the following alliances is an equity-based alliance?

strategic investment

In the context of the motives for acquisition, from a resource-based view, the most important _____ rationale is to leverage superior resources.

synergistic

With respect to the motives for acquisition, _____ motives add value.

synergistic

The set of informal institutions that stresses the cognitive pillar lays emphasis on _____.

the internalized taken-for-granted values and beliefs that guide firm behavior

In theory, a global matrix structure supports the goals of the _____ strategy.

transnational

MNEs with a _____ strategic orientation follow a geocentric staffing approach.

transnational

Knowledge outflow, one of the knowledge management elements, faces the common problem of ____

"How does it help me" syndrome

______ is the ability to recognize the value of new information, assimilate it, and apply it

Absorptive capacity

Enhancing ____ often entails making a series of make-or-buy decisions.

Adaptability

____ refers to the ability to change supply chain configurations in response to long-term changes in the environment and technology.

Adaptability

____ requires firms to continuously monitor major geopolitical, social, and technological trends in the world, and reconfigure the supply chain accordingly.

Adaptability

____ focuses on flexibility that can overcome short-term fluctuation in the supply chain.

Agility

_____ refers to the ability to quickly react to unexpected shifts in supply and demand.

Agility

Which of the following is one of the triple As in supply chain management?

Alignment

The most widely used method in expatriate compensation is _____.

Balance sheet approach

Which of the following must be practiced to avoid blunders in international marketing?

Be susceptible to nationalistic feelings of local consumers, employees, and governments

Which are the two primary pressures MNEs confront?

Cost reductions and local responsiveness

_____ refers to the positive or negative perception of firms and products from a certain country.

Country-of-origin effect

_____ refers to longer term, broader preparation to improve managerial skills for a better career.

Development

_____ is the set of firms that facilitate the movement of goods from producers to consumers.

Distribution Channel

In the context of acquisitions, which of the following is a resource-based issue faced by synergistic motives?

Enhancement of market power and scale economies

The process of selecting, managing, and motivating non-native employees to work abroad is called _____.

Expatriation

Which of the following is an advantage of hiring parent-country nationals?

Facilitates control and coordination by headquarters

Knowledge acquisition, one of the knowledge management elements, faces the common problem of

Failure to share and integrate external knowledge

Which country is now Manpower's largest market ahead of the United States?

France

Which of the following staffing approaches is said to be color blind (the "color" refers to the color of the manager's passport)?

Geocentric approach

Which of the following category of customers are most likely to lead anti-globalization demonstrations?

Global Agnostics

For which of the following customer categories are firms advised to leverage the global brands and their relatively more standardized products and services?

Global citizens and global agnostics

Which of the following types of employees in MNEs are often known as locals?

Host-country nationals

____ refers to overconfidence in one's capabilities.

Hubris

Relocating employees of a foreign subsidiary to the MNE's headquarters for the purposes of filling skill shortages at headquarters and developing a global mind-set for such employees is called _____.

Inpatriation

Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions?

Investors

Which of the following is an advantage of using the balance sheet approach of compensation?

It creates less fluctuation between overseas and parents country pay during repatriation

Which element of knowledge management faces the common problem of "Not invented here" syndrome?

Knowledge inflow

Which element of knowledge management faces the common problem of absorptive capacity?

Knowledge inflow

Which is the best-case scenario for a non-equity-based alliance?

Low tacitness and low importance of direct organizational monitoring and control

Which of the following is an advantage of hiring parent-country nationals (PCNs)?

Managers are given international experience

______ divides consumers based on purchasing behavior

Market Segmentation

_____ refers to a philosophy or way of thinking that places the highest priority on the creation of superior customer value in the marketplace.

Market orientation

Which of the following reasons for cross-border acquisition failure is associated with pre-acquisition?

Nationalistic concerns against foreign takeovers (political and media levels)

____ innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation.

Open

Which of the following is a disadvantage of alliances?

Partner Opportunism

_____ entails the evaluation of employee's work for promotion, retention, or termination purposes

Performance appraisal

Which of the following is an example of tacit knowledge?

Performing surgery

Which of the following four Ps in the marketing mix includes the online marketplace?

Place

Which of the following staffing approaches focuses on the norms and practices of the host country?

Polycentric approach

In a non-equity-based alliance, which of the following should be high for possible upgrading to equity-based relationships?

Potential as real option

Which of the following is a key element to achieving alignment in the supply chain?

Power

____ refers to the expenditures a customer is willing to pay for a product.

Price

_____ shows how demand changes when price changes.

Price elasticity

Which of the following four Ps of marketing includes TV, radio, print, and online advertising, as well as coupons, direct mail, billboards, direct marketing, and public relations?

Promotion

Which of the following is one of the four P's in the marketing mix?

Promotion

_____ refers to all the communications that marketers insert into the marketplace.

Promotion

_____ refers to HRM activities associated with hiring employees and filling positions.

Staffing

______ is the flow of products, services, finances, and information that passes through a set of entities from a source to the customer

Supply chain

Which of the following motives for acquisition faces the resource-based issue of access to complementary resources?

Synergistic

In terms of the supply chain, alignment is best defined as _____.

The combining of interests of various players involved in the supply chain

Which of the following statements with respect to differences in knowledge management among the four types of MNEs is true?

There is extensive flow of knowledge and people in multiple directions in a transnational strategy