IBUS Final
Non-native employees who work and reside in a foreign country are known as _____. a. host-country nationals b. expatriates c. multinationals d. repatriates
b
Compensation with a _____ makes locations, where pay is higher than in their home country, a more attractive place to work for PCNs and TCNs. a. going rate approach b. balance sheet approach c. pay-per-impression d. merit rate
A
Corporations in continental Europe and Japan rely mostly on _____. a. voice-based, internal mechanisms b. market-oriented, network-based systems c. market-oriented, high-tension systems d. exit-based, external mechanisms
A
In terms of the supply chain, alignment is best defined as _____. a. the combining of interests of various players involved in the supply chain b. the ability to change supply chain configurations in response to long-term changes in the environment and technology c. the ability to quickly react to unexpected shifts in supply and demand d. the way to identify consumers who differ from others in purchasing behavior
A
Private equity is primarily invested through _____. a. leveraged buyouts b. acquisitions c. alliances d. stock swaps
A
The main external governance mechanism is the _____. a. market for corporate control b. market for product competition c. market for private equity d. market for stock options
A
Which country is now Manpower's largest market ahead of the United States? a. France b. Germany c. China d. India
A
Which element of knowledge management faces the common problem of "Not invented here" syndrome? a. Knowledge inflow b. Knowledge transmission c. Knowledge acquisition d. Knowledge outflow
A
Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions? a. Investors b. Top management c. Middle management d. Customers
A
_____ determines the institutional mix of competition and cooperation that gives rise to the market system and also seeks to balance efficiency and fairness. a. Competition policy b. Antitrust policy c. Mutual forbearance d. Fairness policy
A
. At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach? a. Stage 1 b. Stage 2 c. Stage 3 d. Stage 4
B
. In the context of the customer-focused dimension of a global matrix, the _____ structure allows a provider to sell whatever combination of goods and services that customers prefer, including rivals' offerings. a. open innovation b. solutions-based c. global account d. social capital
B
. Which combination of resource similarity and market commonality results in the least intense competition? a. High resource similarity, low market commonality b. Low resource similarity, high market commonality c. Low resource similarity, low market commonality d. High resource similarity, high market commonality
B
65. Knowledge acquisition, one of the knowledge management elements, faces the common problem of _____. a. "How does it help me? " syndrome b. failure to share and integrate external knowledge c. "Not invented here " syndrome d. absorptive capacity
B
A _____ antirust policy would protect established firms that have already invested and nurtured an industry from new entrants. a. pro-imitability b. pro-incumbent c. pro-competition d. pro-consumer
B
A _____ approach is the opposite of an ethnocentric approach. a. telocentric b. polycentric c. geocentric d. regiocentric
B
Corporations in _____ are bank-oriented, network-based systems. a. China b. continental Europe c. the United States d. the United Kingdom
B
In the context of the motives for acquisition, from a resource-based view, the most important _____ rationale is to leverage superior resources. a. managerial b. synergistic c. hubristic d. collusive
B
The _____ strategy endeavors to be simultaneously cost efficient, locally responsive, and learning-driven around the world. a. home replication b. transnational c. global d. localization
B
The combination of operations and management of two firms to establish a new legal entity is called a(n) _____. a. joint venture b. merger c. contractual alliance d. acquisition
B
The most widely used method in expatriate compensation is _____. a. going rate approach b. balance sheet approach c. pay-per-impression d. employee's request approach
B
The vast majority of large firms throughout continental Europe, Asia, Latin America, and Africa feature _____ ownership. a. concentrated state b. concentrated family c. diffused family d. diffused state
B
When expatriates evaluate HCNs, cultural difference may create problems. In ____ countries, performance appraisals based on statements made by subordinates could potentially undermine the power and status of supervisors. a. high individualism b. high power-distance c. high uncertainty avoidance d. high masculinity
B
Which of the following is a theory that studies the interactions between two parties that compete and/or cooperate with each other? a. Predatory pricing b. Game theory c. Prisoner's dilemma d. Cross-market retaliation
B
Which of the following is an advantage of using the balance sheet approach of compensation? a. It does not create disparity in pay between expatriates and HCNs. b. It creates less fluctuation between overseas and parent country pay during repatriation. c. It is organizationally less complex to administer. d. It is the cheapest method of managerial compensation for expatriation.
B
Which of the following statements about governance mechanisms is misleading? a. Governance mechanisms can be classified as voice-based and exit-based mechanisms. b. As an external governance mechanism, private equity utilizes the stock market to discipline managers. c. In general, boards are likely to use "carrots" before considering "sticks." d. Product market competition complements the market for corporate control and the market for private equity.
B
Which of the following was considered the primary sector for organized economic activities during the Industrial Revolution? a. Retail b. Agriculture c. Manufacturing d. Service
B
Which of the following was viewed the tertiary sector for organized economic activities during the Industrial Revolution? a. Agriculture b. Residual service activities c. Manufacturing d. Retail
B
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? a. Home replication strategy b. Localization strategy c. Global standardization strategy d. International strategy
B
Who benefits the most from the acquisition premium valued during an acquisition? a. The shareholders of the acquiring firm b. The shareholders of the target firm c. The opportunistic partner d. The partner who possesses hard-to-imitate capabilities
B
____ innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation. a. Collaborative b. Open c. Closed d. Absorptive
B
____ requires firms to continuously monitor major geopolitical, social, and technological trends in the world, and reconfigure the supply chain accordingly. a. Agility b. Adaptability c. Alignment d. Aggregation
B
. Returning expatriates are referred to as _____. a. crossovers b. inbounds c. repatriates d. inpatriates
C
66. ____ is the informal interpersonal relationships among managers of different units that may greatly facilitate intersubsidiary cooperation among various units. a. Social capital b. Absorptive capacity c. Micro-macro link d. Subsidiary initiative
C
A member of the board who is a top executive of the firm is called a(n) _____. a. outside director b. executive manager c. inside director d. co-manager
C
Corporations in _____ are market-oriented, high-tension systems. a. Japan b. continental Europe c. the United States d. China
C
If a firm is operating in an environment with a high pressure for globalization, which of the following is the most preferred strategy? a. Defender strategy b. Extender strategy c. Dodger strategy d. Collusion strategy
C
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. a. solutions-based b. open innovation c. global account d. social capital
C
Knowledge outflow, one of the knowledge management elements, faces the common problem of _____. a. inappropriate channels b. absorptive capacity c. "How does it help me?" syndrome d. "Not invented here" syndrome
C
. Which of the following staffing approaches is said to be color blind (the "color" refers to the color of the manager's passport)? a. Ethnocentric approach b. Polycentric approach c. Regiocentric approach d. Geocentric approach
D
Activities that enrich controlling shareholders at the expense of minority shareholders are referred to as _____. a. amortization b. accretion c. backwardation d. expropriation
D
Corporations in the United States and the United Kingdom rely mostly on _____. a. voice-based, internal mechanism b. bank-oriented, network-based systems c. bank-oriented, high-tension systems d. exit-based, external mechanism
D
For which of the following categories of customers can MNEs market localized products and services under local brands? a. Global dreamers b. Global activists c. Global citizens d. Global agnostics
D
Market orientation seeks to place the highest priority on which of the following? a. Coordinating operations b. Supply chain efficiency c. Relationships with customers d. Creation of superior customer value
D
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 _____. a. onboarding b. orientation c. nepotism d. inpatriation
D
The _____ structure allows for consolidation on a worldwide or regional basis and reduces inefficient duplication in multiple countries. a. geographic area b. global matrix c. international division d. global product division
D
The _____ structure is the opposite of the geographic area structure. a. international division b. global matrix c. multidomestic d. global product division
D
The ability to successfully manage interfirm relationships is called _____. a. hubristic capability b. synergistic capability c. contractual capability d. relational capability
D
The global product division structure supports the _____ strategy. a. transnational b. global matrix c. multidomestic d. global standardization
D
The two key elements to achieve alignment are power and _____. a. agility b. promotion c. aggregation d. trust
D
Which element of knowledge management faces the common problem of employee turnover? a. Knowledge inflow b. Knowledge transmission c. Knowledge outflow d. Knowledge retention
D
Which of the following may be a hindrance to successful knowledge management? a. Bonuses tied to measurable knowledge outflows and inflows b. Investment in codifying tacit knowledge c. Facilitation of informal social capital d. Use of single-subsidiary-based incentives
D
Which of the following statement concerning principal-agent versus principal-principal conflicts is true? a. Formal institutional protection is often lacking in principal-agent conflicts. b. Courts are more protective of minority shareholder rights in principal-principal conflicts. c. Manifestations in principal-agent conflicts take the form of expropriation. d. Considering ownership pattern in principal-principal conflicts, often greater than 50 percent of equity is controlled by the largest shareholders.
D
_____ refers to the ability to quickly react to unexpected shifts in supply and demand. a. Aggregation b. Adaptability c. Alignment d. Agility
D
. In firms with separation of ownership and control, ownership is concentrated with a few owners.
F
. In the principal-agent relationship, principals are managers to whom authority is delegated.
F
An MNE with transnational strategy typically staffs host-country nationals.
F
Collusion is more difficult between firms with high market commonality than firms with low market commonality.
F
During the Industrial Revolution, residual service activities was often the secondary sector for organized economic activities.
F
European MNEs are more likely to appoint PCNs to lead subsidiaries.
F
From a corporate governance perspective, the market for corporate control complements product market competition and the market for private equity.
F
In the context of internal governance mechanisms, if accounting-based measures are adopted, stock prices are subject to too many forces for a manager to manipulate the price.
F
Integrating individuals from two (parent and host) countries is a lot more complex than molding managers from a variety of nationalities.
F
MNEs intend to eventually replace even top-level expatriates with TCNs, in part to save cost.
F
Market for private equity is also known as the takeover market.
F
One of the disadvantages of the geographic area structure is that the country and regional managers are not given sufficient voice relative to the heads of the domestic divisions.
F
PCNs generally stay in their positions longer and thus provide more continuity of management.
F
Private equity utilizes the stock market, as opposed to the bond market, to discipline managers.
F
The advantage of hiring employees who are parent-country nationals is that they bridge the gap between headquarters and the subsidiary.
F
The geographic area structure is appropriate for a transnational strategy.
F
The global product division structure organizes the MNE according to different geographic areas.
F
The leading US union, the AFL-CIO, expanded into Mexico in the 1990s.
F
The majority of an MNE's employees are typically parent-country nationals. a. True b. False
F
The terms knowledge management and information management can be used interchangeably.
F
The three potential motives for alliances are synergistic, hubristic, and managerial motives.
F
The triple As underpinning supply chain management are agility, adaptability, and aggregation.
F
Voice-based governance mechanisms are external mechanisms.
F
When MNEs adopt a localization strategy, the interdependence on knowledge management is high.
F
Within a single product category, product attributes are standardized.
F
. The Anglo-American and the continental European-Japanese systems are the two primary corporate governance families in the world.
T
. The market for corporate control enables the "wholesale" removal of entrenched managers.
T
Companies with diffused ownership have a separation of ownership and control.
T
Externally, HRM is shaped by national and industry contexts.
T
Inpatriation is sometimes used for filling skill shortages at headquarters.
T
Most inpatriates are expected to eventually return to their home country to replace expatriates
T
Other than families, the state is another major owner of firms around the world.
T
The "imitability" of an alliance is based on the trust and understanding between the partners.
T
The antitrust policies in the United States make it difficult for incumbents to raise entry barriers for new entrants.
T
The defender strategy centers on local assets in areas in which MNEs are weak.
T
The degree of tacitness is low in non-equity-based alliances.
T
The global account structure and solutions-based structure are two of the primary customer-focused dimensions of an MNE.
T
The international division structure is an organizational structure typically set up when a firm first engages in a home replication strategy.
T
The minimization of principal-agent conflicts through concentration of ownership and control, unfortunately, introduces more principal-principal conflicts.
T
The vast majority of large firms throughout continental Europe, Asia, Latin America, and Africa feature concentrated family ownership and control.
T
The second phase in an alliance dissolution is _____. a. going public b. imitation c. strategizing d. uncoupling
A
Which element of knowledge management faces the common problem of absorptive capacity? a. Knowledge inflow b. Knowledge transmission c. Knowledge outflow d. Knowledge retention
A
Which of the following is a key element to achieving alignment in the supply chain? a. Power b. Standardization c. Localization d. Productivity
A
Which of the following occurs in the uncoupling stage of an alliance dissolution? a. Last minute salvage b. New relationships c. Reconciliation d. Mediation by third parties
A
In developed economies, a firm's key concern is to enhance competitiveness to fight off low-cost rivals from emerging economies.
T
A high degree of _____ suggests that if a firm attacks in one market, its rivals may engage in cross-market retaliation. a. market commonality b. explicit collusion c. multimarket competition d. predatory pricing
A
_____ strategy centers on leveraging home-grown competencies abroad. a. Contender b. Extender c. Defender d. Dodger
B
A(n) ____ is an investment in real operations as opposed to financial capital. a. real account b. hubris c. real option d. foreign direct investment
C
The _____ strategy is an extension of the home replication strategy. a. global b. transnational c. localization d. export
C
The category of customers who are skeptical about whether global brands deliver higher quality goods are called _____. a. global citizens b. global dreamers c. antiglobals d. global agnostics
C
The hallmark of the _____ structure is the coordination of responsibilities between product divisions and geographic areas. a. global product division b. geographic area c. global matrix d. international division
C
Which of the following industrial characteristics makes a collusion difficult but leads to competition? a. Existence of few firms in the industry b. Existence of an industry price leader c. Lack of market commonality d. High barriers of entry
C
Which of the following was considered the secondary sector for organized economic activities during the Industrial Revolution? a. Retail b. Residual service activities c. Manufacturing d. Agriculture
C
Enhancing agility often entails making a series of make-or-buy decisions.
F
Every alliance or acquisition decision is driven by imitation.
F
Flow of knowledge is limited in the home replication strategy.
F
Global standardization or transnational strategies often necessitate an ethnocentric approach, resulting in a mix of HCNs, PCNs, and TCNs.
F
In a transnational strategy, the flow of knowledge is unidirectional.
F
In the context of market orientation vs. relationship orientation, relationship orientation capabilities contribute more toward performance.
F
In the context of segmentation based on customer categories, global citizens are always skeptical about whether global brands deliver high quality goods.
F
In the context of market orientation vs. relationship orientation, for truly outstanding performance, relationships are necessary but not sufficient.
T
Introducing third-party logistics (3PL) providers may more effectively align the interests in the supply chain.
T
Knowledge inflow faces the common problem of "Not invented here" syndrome.
T
Learning aquatic zumba is an example of tacit knowledge.
T
Many firms phase out the international division structure after their initial stage of overseas expansion.
T
Mergers and acquisitions represent the largest proportion of foreign direct investment (FDI) flows.
T
The alliance dissolution is a four-step process.
T
In which of the following strategies is knowledge mostly developed and retained at the center and key locations? a. Global standardization strategy b. Transnational strategy c. Localization strategy d. Home replication strategy
A
. The advantage of hiring employees who are host-country nationals is that it facilitates control by headquarters.
F
Acquisition premium is the difference between the acquisition price and the market value of the acquiring firm.
F
Adaptability in supply chain management refers to the ability to quickly react to unexpected shifts in supply and demand.
F
Alliances preclude acquisitions
F
Knowledge retention faces the common problem of absorptive capacity.
F
The United States has the world's oldest antitrust frameworks dating back to the 1890 Sherman Act.
T
MNEs adopting the _____ strategy may designate centers of excellence. a. global b. home replication c. localization d. transnational
A
____ refers to the expenditures a customer is willing to pay for a product. a. Total cost b. Price c. Total cost of ownership d. Price elasticity
B
In the first half of the 20th century, the services sector was more important than manufacturing.
F
Explicit knowledge is codifiable.
T
In theory, a global matrix structure supports the goals of the _____ strategy. a. transnational b. localization c. global standardization d. home replication
A
Which of the following motives for acquisition faces the resource-based issue of access to complementary resources? a. Collaborative b. Hubristic c. Managerial d. Synergistic
D
Which of the following strategies is often known as "international strategy"? a. Localization b. Global standardization c. Transnational d. Home replication
D
. In the context of achieving alignment, if a recognized leader in a supply chain exercises power, it facilitates legitimacy and efficiency of the whole supply chain.
T
A localization strategy is effective when differences among national and regional markets are clear, and pressures for cost reductions are low.
T
As one of the Ps in the marketing mix, place is also often referred to as the distribution channel.
T
During the first stage of alliance formation, a firm decides whether growth can be achieved strictly through market transactions, acquisitions, or alliances.
T
