International Business 3

Content oriented theories examine motivation in more general terms and are more useful in creating a composite picture of employee motivation in ____.

A particular country or region

Conglomerate investments usually are rated as low risk because foreign governments see them as providing fewer benefits to a multinational company and greater benefits to the country than other investments

False

Consent oriented theories tend to focus on individual behavior in specific settings and are more sophisticated than process theories.

False

Examples of ownership-control risks include tariffs on exports and imports, as well as restrictions on exports.

False

Firms with technology that is not available to the government should the firm be taken over have higher risk than those with technology that is easily acquired.

False

In general, although the process for motivation varies across cultures, the content remains the same from one culture to another

False

In the two factor theory of motivation the factors known as motivators relate mainly to Maslows lower level needs

False

International political developments have a major impact on MNCs strategic plans, and domestic political developments have a minor impact on those plans

False

Local knowledge can be internalized primarily as a result of an MNC operating in that market

False

Macro risk has been losing importance in the recent years because a growing number of countries are able to successfully transition into a market-driven economy.

False

Macro risk issues often take such forms as industry regulations, taxes of specific types of business activity and various restrictive local laws

False

One of the characteristics of high achievers identified by researchers is their tendency to be team players.

False

The culture of a nation is the sole factor that influences the degree and type of work centrality within a country

False

The desire for absence of pain is a physiological need according to Maslows hierarchy of needs

False

The difference between a science-based industry and a non-science based industry is that a non-science based industry requires the continuous introduction of new products or services.

False

The drive to satisfy safety needs is greater than the drive to satisfy any other type of need

False

The expectancy theory focuses on how motivation is affected by peoples perception of how fairly they are treated

False

The service sector of economic activity includes agriculture, forestry, and mineral exploration and extraction

False

The value of goal setting remain intact across cultures

False

When host governments do not require alliances as a condition for entry many MNCs:

Find that having an alliance is advantageous to their entry and expansion

Which of the following statements is true about expropriation>

Firms at the greatest risk are in extractive, agricultural, or infrastructural industries such as utilities and transportation

In the context of the special nature of foreign direct investment, primary sector industries usually have the highest risk factor, service sector industries have the next highest, and industrial sector industries have the lowest

True

In the context of work motivation the factors that are controlled by an organization relate more to maslows lower level needs

True

Which of the following is a salient feature of horizontal investments

They involve the production of goods or services that are the same as those at home

A shortcoming of the equity theory is that is it appears to be culture bound

True

Alliances are an arena where both value-claiming activities and value-creating activities take place

True

Collaboration facilitates rapid market entry by allowing firms to share costs and risks, combine product and market complementaries, and reduce the time-to-market

True

Firms in countries where individualism is low often feel that merit based reward systems are too disruptive of their corporate culture and traditional values

True

Geert Hofstede found that job categories are a more effective way of examining motivation than need-satisfaction profiles

True

In the context of the special nature of foreign direct investment, patterns of ownership relate to whether businesses are wholly or partially owned

True

Micro political risk analysis is directed towards government policies and actions that influence selected sectors of the economy or specific foreign business.

True

Policy and control mechanism, along with awareness of the historical treatment of MNCs within certain nations, allows firms to evaluate the inherent risk of doing business in those countries

True

Process theories of work motivation explain how employee behavior is initiated redirected and halted

True

Recent research reports that EU workers see a strong relationship between how well they do their jobs and the ability to get what they want out of life.

True

Research shows that people throughout the world have needs that are similar to those described in Maslows need hierarchy

True

Terrorism is the use of force or violence against others to promote political or social views

True

Work centrality is the ratio of time a person spends carrying out the core duties of his job to the amount of time he spends on executing non-essential duties related to the job

True

The primary sector of economic activity includes:

agriculture, forestry, and mineral exploration and extraction

According to the two-factor theory of motivation, taking care of hygiene factors could lead to

an increase in satisfaction

As discovered by researchers, high achievement needs can be developed in people by teaching them how to:

daydream in positive terms

Which of the following hygiene factors was regarded as a source of satisfaction rather than dissatisfaction in a study that tested Herzberg theory in an Israeli kibbutz

interpersonal relations

In work motivation, factors controlled by the organizations such as hours, earnings, security, benefits, and promotions are referred to as

job-context factors

The importance of work in an individuals life relative to other areas of interest is referred to as

work centrality

Abraham maslow postulated that everyone has six basic needs

False

The achievement motivation theory holds that the need for achievement is innate

False

Benefits of proactive political strategies include all of the following except:

Providing support for national and sub-central governments in transitional economies

Some multinational corporations attempt to manage political risk through simultaneously analyzing a range of variables to derive an overall rating of the degree of political risk in a given jurisdiction. This is referred to as a:

Quantification process

According to the 2012 Transparency International Corruption Perceptions index, which of the following nations is the most corrupt

Somalia

Which of the following is not a critical business issue for successful termination of international alliances?

Rights over sales territories and obligations to customers

Which of the following needs is correctly matched with its description 2

Safety needs the desires for security, stability, and the absence of pain

In the two factor motivation theory, job context variable such as salary interpersonal relations, technical supervision work confiscation and company policies and administration are referred to as hygiene factors

True

Vertical investments run the risk of being taken over by government because they are export-oriented and governments like a business that helps it to generate foreign capital.

True

Tensions continue to rise as U.S. politicians have become frustrated by China's unwillingness to revalue the yuan, and concerns have grown over the safety of goods imported from China.

Tue

In China _____ is an important need and _____ is a goal

group affiliation, harmony

The ratings factors that are quantified for multinational companies to manage political risk reflect all of the following except _____.

social conditions

Which of the following is a content theory of work motivation

the hierarchy of needs theory

A true statement about horizontal investments is that:

they are unlikely to be takeover targets because these investments typically are made with an eye toward satisfying the host countrys market demands

Political risks can be broken down into three basic categories, these are:

transfer risks, operational risks, and ownership-control risks

The factors Welsh, Luthans, and Sommer observed among the Russian workforce that seemed to increase worker performance are

value of extrinsic reward and participative techniques

_____ designs are job designs that blend personnel and technology.

sociotechnical

A workers quality of work life is directly related to his or her countrys

culture

Comprehensive political strategies are most important in stable policy environments.

False

According to survey results, which of the following is the least important goal for professional technical personnel from various countries?

A successful company

_____ theory holds that individuals can have a need to get ahead to attain success and to reach objectives

Achievement motivation

Multinational companies can minimize their chances of expropriation by _____.

Acquiring an affiliate that depends on the parent company for key areas of operation

_______ tends to occur once and often has poorly defined objectives, and therefore members are not as committed.

Amateur terrorism

Which of the following statements is true of the impact of domestic and international political developments on multinational companies.

As government policies change, it is imperative that multinational companies be willing and able to adjust their strategies and practices to accommodate new perspectives.

All of the following actions raise the political risk of doing business in China except ________.

Concerns on safety and reliability of product quality

Which of the following factors would be classified as a motivator as per Herzbergs two-factor theory of motivation?

Career advancement

Which of the following is not an example of risk factors for a multinational company?

Complying with contractual terms of agreements

Which of the following is an example of an integrative technique for responding to political risk?

Creating joint ventures and hiring local people to manage and run operations

Which of the following is an example of a protective and defensive technique for responding to a political risk

Doing as little local manufacturing as possible and conducting all research and development outside the country

Examples of proactive political strategies include all of the following except _____:

Downsizing and transferring business elsewhere

Which of the following criteria involves maximum political risk

Effectiveness of public administration

Expectancy theory postulates all of the following except that

Employees are controlled by their external environment

Which of the following theories states that the belief held by people that they are not being treated fairly has a negative effect on their job performance

Equity theory

Which of the following is an external economic relations factor that multinational companies may use to evaluate political risk

Freedom to setup or engage in partnerships

Which researcher concluded that "the Herzberg model appears to have validity across occupational levels"?

George Hines

Which of the following is a quality of high achievers identified by researchers

High achievers want concrete feedback on their performance

"Balance in synergy" would require a moving away from all of the following except:

Holistic and idealistic thinking

Which of the following is a true statement of the to the quality of work life in Japan

In Japan, there is strong uncertainty avoidance

A salient feature of vertical investments is that they:

Include the production of raw materials or intermediate goods that are to be processed into final products

_______ techniques are designed to help the overseas operation become part of the host countrys infrastructure

Integrative

Identify a true statement about classic terrorism

It entails a specific, well-defined objective pursued by well-trained, professional, underground members.

Which of the following is true of a conglomerate investment

It is a type of high risk investment in which goods or services produced are different from those produced at home

Which of the following statements is true of the impact of terrorism within a country on multinational companies in the macro sense?

It is extremely difficult to guarantee that companies can fully avoid harm from terrorism, but political risk analysis and preparation may forestall it

_____ consists of a job's content, the methods that are used on the job and the way in which the job relates to others in the organization.

Job design

In work motivation, factors internally controlled, such as responsibility, achievement, and the work itself are referred to as _____.

Job-content factors

A basic assumption of Maslows theory is that:

Lower level needs must be satisfied before higher level needs become motivators

Which of the following needs is correctly matched with its description 1

Physiological needs consist of the needs for food, clothing, shelter, and other basic, physical needs.

China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all MNCs.

Macro

In recent years, _______ risk analysis has become of increasing concern to multinational companies because of the growing number of countries that are finding their economies in trouble as in Southeast Asia or, even worse, unable to make the transition to a market-driven economy

Macro

The economies of China, Russia, India and Vietnam present _____ political risk for MNCs.

Macro

________ reviews major political decisions that are likely to affect all businesses conducted in a particular country

Macro political risk analysis

The industrial sector of economic activity includes

Manufacturing operations

Chinas government policies regarding investment in the telecommunications industry fall into the ______ political risk category.

Micro

_________ risk issues often take forms such as industry regulation, taxes on specific types of business activity, and various restrictive local laws

Micro

__________ is a psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives

Motivation

According to the 2012 Transparency International Corruption Perceptions index, which of the following nations is the least corrupt

New Zealand

Price controls, financing restrictions, export commitments, taxes, and local-sourcing requirements are examples of ____.

Operational risks

Identify a true statement about protective strategies for responding to political risks.

Organizations with an emphasis on innovative technology prefer a protective technique as a way to safeguard actions such as counterfeiting

_____ risks are brought about by government policies or actions that inhibit ownership or control of local operations.

Ownership-control

Foreign ownership limitations, pressure for local participation, confiscation, expropriation, and abrogation of property rights are examples of _____.

Ownership-control risks

Which of the following is not a critical legal issue for successful termination of international alliances?

People-related issues

The following are listed as techniques for responding to political risks except:

Realistic bargaining power analysis

Maslow postulated that everyone has five basic needs, which constitute a need hierarchy. In ascending order, beginning with the most basic, they are:

Physiological, safety, social, esteem and self-actualization needs

Not all MNCs are confident about international investment in countries with:

Political unrest

In their attempts to forestall harm in risky venues, multinational companies must thoroughly evaluate the political environment, install modern security systems, compile a crisis handbook, and ______.

Prepare employees for situations that may arise.

Broadly, ______ strategies may include leveraging bilateral, regional, and international trade and investment agreements, drawing on bilateral and multilateral financial support, and using project finance structures to separate project exposure from overall firm risk.

Proactive political

The theory behind _____ is quite simple. The MNC works to maintain a stronger bargaining power position than that of the host country.

Relative bargaining power

According to Herzbergs two-factor theory, which of the following conditions is necessary for employee satisfaction?

The presence of motivators

The needs to interact and affiliate with others are included in

social needs

Which of the following cultural differences tends to be more disruptive for international joint ventures than others?

Uncertainty avoidance

One of the generally agreed on starting assumptions about work motivation in the international arena is that the motivation process is

Universal

Which of the following statements is true regarding the goal setting theory

Unlike many theories of motivation, it has been continually refined and developed.

According to a study on work motivation conducted in Zambia, which of the following is a factor that adds to work motivation?

Work nature

In the Haire groups study on Maslows need hierarchy, esteem needs were divided into two groups; esteem and _____.

autonomy

Nevis suggested that a Chinese hierarchy of needs would have four levels, which from lowest to highest would be:

belonging, physiological, safety, and self actualization in the service of society

A criticism of Herzbergs theory is that it

classifies money as a hygiene factor

Researchers have suggested that maslows theory needs a collectivist perspective

collectivist perspective

Work motivation theories can be broken down into two general categories, which are:

content and process

Work motivation in terms of what arouses, energizes, or initiates employee behavior are explained by

content theories

Most research in international human resource management has been _____, because these theories examine motivation in more general terms and are more useful in creating a composite picture of employee motivation in a particular country or region.

content-oriented

MNCs would be wise to apply motivation-hygiene theory on _______ basis.

country-by-country or a regional

Hofstedes research shows that ___ needs rank highest for professionals and managers

esteem and self-actualization

The needs for power and status are included in

esteem needs

The seizure of businesses by a host country with little, if any, compensation to the owners is referred to as _____.

expropriation

Use of _____ to motivate employees is very common in countries with high individualism.

financial incentives

Which of the following is a reason why workers in America and Japan work long hours

high cost of living

The two-factor theory of motivation holds that two sets of factors influence job satisfaction. These are ______.

hygiene factors and motivators

Laws that require that nations hold a majority interest in the operation are known as ______.

indigenization laws

According to the two-factor theory, efforts to motivate human resources must provide recognition, a chance to achieve and grow, advancement, and _____.

interesting work

The three basic elements in the process of motivation are

needs, drives, and goal attainment

Researchers like Hofstede recommend that MNCs should focus on giving ___ to their lower level personnel in different countries

physical rewards

A number of research efforts have been undertaken to replicate the two-factor theory, and in the main, they_____.

support Herzbergs findings

Based on survey results, the top-ranking goal for professional technical personnel from various countries is ____.

training