HTM Exam 4

C. inpatriate.

A citizen of Great Britain who works for a multinational company moves to the United States to work at its headquarters in New York. This person would be classified as a(n) A. outsourced employee. B. fourth country employee. C. inpatriate. D. domestic employee. E. polycentric employee.

False

A lead factory would typically be located near a competitor's headquarters to function as the intelligence-gathering unit of the company.

B. perceptual ability

According to Mendenhall and Oddou, _____ provides an expatriate the ability to understand why people of other countries behave the way they do. A. cultural toughness B. perceptual ability C. self-orientation D. others-orientation E. willingness to communicate

D. the inability to cope with larger overseas responsibilities.

According to the results of a seminal study by R. L. Tung, the top reason why Japanese expatriate managers fail is A. the inability of their spouses to adjust. B. the lack of technical competence. C. their personal or emotional problems. D. the inability to cope with larger overseas responsibilities. E. their inability to deal with difficulties in the new environment.

D. inability of spouse to adjust to a new environment

According to the results of a seminal study by R. L. Tung, what was the major reason for expatriate failure among European expatriates?

A. a citizen of one country who is working abroad in one of the firm's subsidiaries.

An expatriate manager refers to A. a citizen of one country who is working abroad in one of the firm's subsidiaries. B. a parent-country national who works in the parent country. C. a host-country national who works in the host country. D. any person who lives in a foreign country. E. a person willing to work in different departments of a foreign firm.

D. hardship

An expatriate might receive a(n) _____ allowance when being sent to a difficult location, usually defined as one where such basic amenities as health care, schools, and retail stores are grossly deficient by the standards of the expatriate's home country. A. housing B. cost-of-living C. education D. hardship E. out-of-pocket

A. expatriate

Arjun, a U.S. citizen, is a product manager who moved to Argentina to work at the South American office of Senlot Corporation, an American company. Based on this information, Arjun is a(n) ________ manager. A. expatriate B. third-country C. inpatriate D. polycentric E. virtual

D. The product to be made is a nonessential item that has little effect on the global firm's core competencies and customer expectations.

Assuming all other elements are the same, what would most likely lead a global firm to purchase an item from an outside supplier? A. There is proprietary technology involved in making the product that should not be shared with other parties. B. Quality control is important to the global firm. C. The global firm wants to have control over certain elements of the production process. D. The product to be made is a nonessential item that has little effect on the global firm's core competencies and customer expectations. E. The global firm has excess capacity that otherwise would not be productively used.

C. cultural myopia.

Carson does not how to adjust the distribution strategy at the company's international affiliate, so he directs the affiliate to follow the same procedures as the home-country office. Unfortunately, his lack of knowledge cost the company more in transportation costs and taxes. This example shows the effect of A. purchasing parity. B. the balance sheet approach. C. cultural myopia. D. multipoint pricing. E. the geocentric approach.

ISO 9000

Certification process that requires certain quality standards that must be met.

A. unintentional bias

In terms of the performance appraisal process, _____ can make it difficult to evaluate the performance of expatriate managers objectively. A. unintentional bias B. other-orientation C. cross-cultural awareness D. cultural toughness E. empathy

C. ethnocentric

In the Italian company FormFit Inc., all the important positions in its foreign subsidiaries are held by Italian nationals. According to this information, what staffing policy is pursued by the company? A. polycentric B. third-country C. ethnocentric D. geocentric E. transnational

True

Industrial products have few national differences in consumer taste and preference, hence the need for local responsiveness is reduced for such products. True or False

B. expatriate

Juanita is a citizen of Brazil but is working in Canada for a subsidiary of her company. Juanita is a(n) _____ manager. A. ethnocentric B. expatriate C. geocentric D. host-country E. domestic

Total Quality Management (TQM)

Management philosophy that takes as its central focus the need to improve the quality of a company's products and services.

D. source

Manuel manages a factory in Mexico for Two-Wheel Motor Corp. In his role, he determines what raw materials and component parts are needed there to build motorcycles and bikes. He uses the suppliers of the home office for these items. He is also the go-to person for questions regarding product customization and process changes. While he doesn't work at the main factory in St. Louis, Manuel knows his factory is also at the top of the standards in the global supply chain. What type of factory does Manuel manage? A. offshore B. lead C. contributor D. source E. outpost

A. self-orientation

Mindy quickly adapted to her foreign posting and enjoyed the food, entertainment, and leisure opportunities she experienced in a new country. Which of Mendenhall and Oddou's dimensions is Mindy demonstrating? A. self-orientation B. ethnocentrism C. technical competence D. perceptual ability E. others-orientation

A. trying to establish international labor organizations.

One of the actions taken by organized labor in response to the increased bargaining power of multinational corporations is A. trying to establish international labor organizations. B. intensifying efforts to increase domestic union membership. C. adopting a reconciliatory stance. D. investing in efforts to improve skills of unionized labor. E. adopting a pro-capitalist stance in negotiations with multinationals.

D. electronic data interchange

Ride Inc., a manufacturer of car components, wants to set up a system that will send invoices to its customers once orders for input supply are placed. What should the company use to perform this function? A. computer-aided design system B. lean production C. just-in-time inventory system D. electronic data interchange E. social networking

A. logistics

Sasha's department at Concord Manufacturing is responsible for the flow of the raw material and component parts into the company that are needed to manufacture its stand-alone projection screens and television mounts. What department does Sasha work in? A. logistics B. marketing C. production D. commerce E. quality control

C. shipment consolidation

Sigmund Jewelers creates inexpensive costume necklaces, bracelets, and rings. As a way to save costs on sending out these small items, the company combines 10 to 12 different orders into one. Which operational objective is the company applying here? A. variance reduction B. quality C. shipment consolidation D. inventory reduction E. responsiveness

True

Source factories should be located where production costs are low. True or False?

foreign service premium

The company offered Gwendolyn a(n) _____ for living in an unfamiliar country isolated from her family, dealing with a new culture and language, and adapting to new work habits and practices. She received this as a percentage of her base salary. A. tax differential B. hardship allowance C. foreign service premium D. housing allowance E. out-of-pocket allowance

minimum efficient scale

The level of output at which most plant-level scale economies are exhausted

B. produce component parts or finished goods at a lower cost than possible at home or in any other market.

The main role of an offshore factory is to A. gather intelligence. B. produce component parts or finished goods at a lower cost than possible at home or in any other market. C. test new ideas and products. D. create new processes, products, and technologies that can be used throughout the global firm in all parts of the world. E. overcome intangible and tangible barriers in the global marketplace.

B. contributor

U.S.-based Filcore Company has a factory in Peru that serves the South American region. The factory has responsibilities for product and process engineering and development. It is also used to test new ideas and products. According to this information, what is the strategic role of the factory in Peru? A. lead B. contributor C. outpost D. server E. source

A. National immigration policies may limit its implementation.

What is a disadvantage of adopting a geocentric staffing approach? A. National immigration policies may limit its implementation. B. Experience curve and location economies may be difficult to achieve. C. It can limit the multidirectional transfer of core competencies. D. A gap can form between host-country managers and parent-country managers. E. It can limit advancement opportunities for host-country nationals.

D. employee turnover

What is an example of a "hidden" cost associated with basing production in a foreign location? A. border tariffs B. component parts C. returns and recycling D. employee turnover E. competitor value

C. localization strategy

What strategy is compatible with a polycentric staffing approach? A. global standardization strategy B. flexible strategy C. localization strategy D. international strategy E. transnational strategy

B. secondary

When Shondra shops at the warehouse club, she buys paper towels and tissues in bulk. What type of packaging do these products come in? A. transit B. secondary C. containerized D. pallet E. unit-load

balance sheet approach

Which approach to expatriate pay equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home?

D. Japan

Which country pioneered the concept of just-in-time inventory? A. England B. Germany C. Mexico D. Japan E. United States

B. product's value-to-weight ratio is low

Which factor favors decentralization of production? A. trade barriers are low B. product's value-to-weight ratio is low C. product serves universal needs D. exchange rates are expected to remain stable E. high fixed costs of production technology

ethnocentric

Which staffing policy requires all the expatriates to be home-country nationals who are transferred abroad?

C. Poor product quality

________ is a hidden cost to basing production in a foreign location. A. Low employee turnover B. Low labor cost C. Poor product quality D. Expensive higher education system E. Low inventory turnover

Six Sigma

a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company

flexible manufacturing technology

allow the company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output

lean production

allows companies to produce a wider variety of products at a cost that previously could only be achieved through mass production of a standardized product

Others-orientation

attributes of _____ enhance an expatriate's ability to interact effectively with host-country nationals and build long-lasting friendships.

Supply Chain Management

goals are to (1) lower the costs of value creation and (2) add value by better serving customer needs

Upstream Supply Chain

includes all of the organizations (e.g., suppliers) and resources that are involved in the portion of the supply chain from raw materials to the production facility

Downstream Supply Chain

includes all of the organizations (e.g., wholesaler, retailer) that are involved in the portion of the supply chain from the production facility to the end-customer

Logistics

part of the supply chain that plans, implements, and controls the effective flows and inventory of raw material, component parts, and products used in manufacturing.

Reverse logistics

process of moving inventory from the point of consumption to the point of origin in supply chains for the purpose of recapturing value or proper disposal.

minimum efficient scale

refers to the level of output at which most plant-level scale economies are exhausted.

Expatriate failure

the premature return of an expatriate manager to his or her home country.

lead factory

typically located in an area in which highly skilled employees can be found and tends to create new processes and products.

responsiveness

which operational objective refers to a global firm's ability to satisfy customers' requirements across global supply chain functions in a timely manner?