SEVI Exam 3 In-Class Questions

What is known to be the most discreet financial institution in the world? A) Bank for International Settlements B) World Bank C) International Monetary Fund D) Federal Deposit Insurance Corporation

A) Bank for International Settlements

What is a disadvantage of top-down planning? A) It restricts initiative at lower levels of the organization. B) It is highly sensitive to differences in local conditions. C) It reduces the need for consultation, especially in an international company. D) It has corporate headquarters develop and provide guidelines.

A) It restricts initiative at lower levels of the organization.

An evolving structure for an international organization over time is normal, as the company's involvement in foreign markets increases over time. A) True B) False

A) True

Sir Isaac Newton established the price of gold in 1717 in terms of British currency. A) true B) false

A) True

A fixed peg currency arrangement means that A) a country's exchange rates fluctuate around a fixed rate within a narrow band. B) monetary authorities will approve any movement; the peg is national. C) currency relationships are under the control of the central bank. D) allied nations' currencies will move in opposition, creating a balance.

A) a country's exchange rates fluctuate around a fixed rate within a narrow band.

The Triffin paradox refers to what occurs when A) a national currency that is also a reserve currency runs a deficit. B) a reserve currency replaces a national currency. C) inflation occurs as the result of a lower currency rating. D) spot exchange rates replace forward exchange rates.

A) a national currency that is also a reserve currency runs a deficit.

What is found at the base, or bottom level, of the Pyramid Model of Global Leadership? A) global knowledge B) attitude and orientations C) threshold traits D) system skills

A) global knowledge

Melanie is known at work for being the manager with the greatest concern for the well-being of others. Which leader style does she possess? A) humane B) team-oriented C) autonomous D) participative

A) humane

Madison Enterprises is an international corporation that sells sporting equipment and has had regional units for the past ten years. Recently, the company acquired an international business that specializes in skincare products for athletes. Madison Enterprises has brought that company in and retained its product division setup. What type of structure does Madison Enterprises now use? A) hybrid B) matrix overlay C) virtual D) matrix

A) hybrid

According to Mintzberg and others, the roles of the global leader include A) negotiator and change agent. B) supervisor and administrator. C) superintendent and monitor. D) marketer and salesperson for change.

A) negotiator and change agent.

Exchange rate fluctuations are best described as A) not yet fully understood by economists. B) well understood and supported by solid theory. C) random phenomena. D) the result of so many variables that they cannot be explained.

A) not yet fully understood by economists.

Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because A) time, talent, and money are scarce. B) there are an abundance of resources. C) there are few or no alternative ways to use the company's scarce resources. D) the company's mission is constantly changing.

A) time, talent, and money are scarce.

The GLED model of global leadership development assumes that outcomes are influenced by a A) transformational process. B) monitoring process. C) training schedule. D) predetermined objective.

A) transformational process.

Companies rely on a mission statement to determine where it is going in the future, how it will get there, and whether or not goals are achieved. A) True B) False

B) False

To be effective, a company's international strategy must be A) the same as the leaders of the industry. B) consistent among all the functions and activities of the company. C) the same as the company's domestic strategy. D) externally consistent among the company's products and regional units.

B) consistent among all the functions and activities of the company.

In which type of currency arrangement would a currency be readjusted periodically at a fixed, pre-announced rate? A) stabilized B) crawling peg C) managed floating D) conventional fixed-peg

B) crawling peg

A value-added tax is actually a sales tax that is A) paid by the firm rather than the consumer. B) paid in stages along the process from raw materials to consumer. C) paid by the government. D) voluntarily paid on exports.

B) paid in stages along the process from raw materials to consumer.

SDR Refers to A) a special deposit for corporate reimbursement. B) special drawing rights, an international reserve asset. C) a special deficit refund, made to compensate for currency devaluation. D) a paper credit issued by the Bank for International Settlements.

B) special drawing rights, an international reserve asset.

The time horizon of a strategic plan will vary according to: A) the size of the company and the size of its industry. B) the age of the firm and the stability of its market. C) the geographic scope of the company. D) the diversity of a company's operations.

B) the age of the firm and the stability of its market.

When designing the structure of an IC, the element a company considers while it assesses population groups is A) product and technical expertise. B) functional expertise. C) customer expertise. D) geographical expertise.

C) customer expertise.

Research indicates that many CEOs feel that a prerequisite for global industry dominance is A) being socially responsible. B) having good technology. C) developing a company global mind-set. D) understanding culture and geography.

C) developing a company global mind-set.

When selecting the manager for the new global team, the company wanted to find someone who understood the importance of developing relationships with co-workers, vendors, and suppliers. Which of the traits identified by Aperian Global does this represent? A) localize B) integrate and lead change C) make connections D) negotiating

C) make connections

Caroline works in Asia for an affiliate of Sheppard Electronics based in Oklahoma. She has learned that a large geographic sector in Asia would benefit from the company's master recharging station and shares that information with headquarters in her monthly report. Which aspect of reporting does this reflect? A) economics B) technological C) market opportunities D) financial

C) market opportunities

Global leaders confront increased ambiguity because A) they find themselves unable to make decisions. B) their environment is more difficult than that of the domestic leader. C) much of the information they receive is difficult to give meaning to. D) each global unit runs independently.

C) much of the information they receive is difficult to give meaning to.

An assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service is known as A) economic value added. B) internal analysis. C) value chain analysis. D) SWOT analysis.

C) value chain analysis.

Most significantly for the international manager, the balance of payments reveals A) demand for a firm's products. B) a firm's financial position. C) a country's import and export patterns. D) demand for a country's currency.

D) demand for a country's currency.

Connor works at the headquarters of FiberNet Corp. He receives bimonthly reports that reveal if surplus funds are available. It is then Connor's job to determine how those funds should be allocated. What type of report would provide Connor with this information? A) economics B) technological C) market opportunities D) financial

D) financial

Changes in the way corporate planning is done today include A) greater use of structured formats to planning. B) the use of advanced computing techniques to make detailed five-year forecasts. C) heavy emphasis on the use of specialized headquarters staff. D) interaction with important customers, distributors, and suppliers.

D) interaction with important customers, distributors, and suppliers.

After acquiring two new foreign affiliates, Henson Manufacturing created a new organizational chart to indicate where formal authority would lie within the organization. This organizational chart is an indication of A) production development. B) organizational design. C) production logistics. D) organizational structure.

D) organizational structure.

In which stage of Kurt Lewin's change model does a company prepare employees for change? A) mapping. B) refreezing. C) bridging. D) unfreezing.

D) unfreezing.

Some ways that an IC can exercise control over a subsidiary's activities include all of the following EXCEPT A) retaining control of technology. B) writing up a management contract. C) retaining control of the finances. D) using its ownership to outvote its partner.

D) using its ownership to outvote its partner.

Companies controlled by other companies, in which less-than-majority owners may exercise control by a variety of means, both those involving stock ownership and those involving non-ownership mechanisms, are known as A) international companies. B) affiliates. C) networked organizations. D) subsidiaries.

affiliates

An organization in which top-level divisions are required to heed input from a staff composed of experts from another organizational dimension in an attempt to avoid the double-reporting difficulty of a matrix organization but still mesh two or more dimensions is known as a A) hybrid organization. B) matrix organization. C) matrix overlay. D) virtual corporation.

matrix overlay