chapter 10,12,13

How has China been affected by its one-child-per-family policy and appreciation of its currency?

The country's advantage in low-cost manufacturing is now reduced.

What are poison pills?

They are defensive provisions that kick in should a buyer reach a certain level of share ownership.

Which of the following accurately describes an organic organization?

a flexible organization that fosters fast decision making and high employee motivation

The name for an agreed-upon code of conduct in business, based on societal norms, is

business ethics.

________ refers to the degree to which decision making is concentrated at the top of the organization.

centralization

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

exporting

During the period of Globalization 1.0, the mode of entry into foreign markets primarily involved

exporting goods

In Michael Porter's diamond framework, ________ conditions describe a country's endowments in terms of natural, human, and other resources.

factor

The board of directors of a public stock company consists of

individuals who formally represent the firm's shareholders and oversee the work of executives.

What do we call the board members who are part of a company's senior management team appointed by shareholders to provide the board with necessary information pertaining to the company's internal workings and performance?

inside directors

Because keeping cost low is critical to IKEA's value innovation, it switched from a(n)

international strategy to a global-standardization strategy.

When a firm diversifies into different product lines and geographies, a ________ structure is preferred.

multidivisional

________ define appropriate employee attitudes and behaviors.

norms

Which of the following is part of Geert Hofstede's cultural dimensions?

power distance

Which of the following characteristics of a public stock company deals with principals and agents

separation of legal ownership and management control

Employees learn about an organization's culture through the process of

socialization.

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

structure

The MBA oath first developed at Harvard Business School and now signed by students at over 300 business schools is modeled after

the Hippocratic oath in medicine.

Which of the following is a major issue at the forefront of CEO compensation in recent years?

the absolute size of the CEO pay package compared with the pay of the average employee

Organizational design is

the process of creating, implementing, and modifying the structure of an organization.

Which of the following is the source of the principal-agent problem in publicly traded companies?

the separation of ownership and control

Which of the following factors is the most important determinant of economic distance?

the wealth and per capita income of consumers

Which of the following statements is true of shareholders in a public stock company?

They are granted a charter of incorporation by the state and legally own company stock.

Which of the following is true of the board of directors in a public stock company?

Votes at shareholder meetings determine whose representatives are appointed to the board of directors.

________ describes the collectively shared values and norms of an organization's members.

Organizational culture

________ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure.

Organizational inertia

The process of closer integration and exchange between different countries and peoples worldwide is

globalization

Which of the following is an unintended side effect of a high degree of specialization in an organization?

reduced employee satisfaction due to repetition of tasks

When two neighboring, democratic countries that are part of a trading bloc follow different religions and social norms, they most likely have high ________ distance.

cultural

A firm is said to be pursuing a polycentric innovation strategy when

it draws from multiple, equally important research facilities located throughout the world.