Chapters 9-17
Knowledge outflow, one of the knowledge management elements, faces the common problem of _____.
"How does it help me?" syndrome
In the European Union, small and medium-sized enterprises (SMEs) are defined as firms with less than _____.
250 employees
Which of the following refers to a neutral, third-party intermediary in the supply chain that provides logistics and other support services?
3PL
What is signaling?
A firm's indirect way of letting other firms know it wants to cooperate
Which of the following is an advantage of R&D contracts?
Ability to tap into the best cost-effective locations
Which of the following is defined as the ability to recognize the value of new information, assimilate it, and apply it?
Absorptive capacity
Which of the triple As refers to the ability to change supply chain configurations in response to longer-term changes in the environment and technology?
Adapability
Which of the triple As requires firms to continuously monitor major geopolitical, social, and technological trends in the world, and reconfigure the supply chain accordingly?
Adaptability
Which of the following statements about the board of directors is NOT true?
Affiliated directors are independent directors.
The costs associated with principal-agent relationships are referred to as which of the following?
Agency
Who are persons to whom authority is delegated?
Agents
Which of the following terms refers to the clustering of economic activities in certain locations?
Agglomeration
Which of the triple As focuses on flexibility that can overcome short-term fluctuation in the supply chain?
Agility
Laws that make it illegal for an exporter to sell goods below cost abroad with the intent to raise prices after eliminating local rivals are called what kind of laws?
Antidumping
Which of the following is designed to combat monopolies and cartels?
Antitrust policy
Which of the following is an advantage of direct exports?
Better control over distribution
Which of the following nations has the highest level of informal investment, as a percentage of GDP, in the world?
China
Which of the following supports the notion that most new ventures in China are financed by friends and family?
China lacks formal market-supporting institutions.
Which of the following statement concerning principal-agent versus principal-principal conflicts is true?
Considering ownership pattern in principal-principal conflicts, often greater than 50 percent of equity is controlled by the largest shareholders.
Supporters believe that a sharing economy will provide which of the following?
Consumers with better value
Which of the following terms refers to the positive or negative perception of firms and products from a certain country?
Country-of-origin effect
Market orientation seeks to place the highest priority on which of the following?
Creation of superior customer value
Which of the following is an attack on a competitor's other markets if this competitor attacks a firm's original market?
Cross-market retaliation
Which of the following terms refers to a loan that the firm needs to pay back at a given time with interest?
Debt
Which of the following terms refers to a firm's failure to satisfy the terms of a loan obligation?
Default
Once rivals have a fairly comprehensive picture of how their rivals compete, what is their next hurdle from a resource-based perspective?
Determining how to imitate
Which of the following refers to longer term, broader preparation to improve managerial skills for a better career?
Development
Firms with what type of ownership have numerous small shareholders but none with a dominant level of control?
Diffused
Firms with which of the following types of ownership have a separation of ownership and control?
Diffused
Which of the following terms refers to the set of firms that facilitate the movement of goods from producers to consumers?
Distribution channel
Which of the following strategies involves selling below cost with a plan to raise prices after eliminating local rivals?
Dumping
Which of the following terms is defined as the identification and exploitation of previously unexplored opportunities?
Entrepreneurship
Which of the following terms refers to the stock in a firm (usually expressed in shares), which represents the owners' rights?
Equity
The distinction between which of the following factors defines a firm as an MNE rather than one that merely exports or imports?
Equity and non-equity modes of entry
Which of the following is true of modes of entry?
Equity modes are indicative of relatively larger, harder-to-reverse commitments.
In an MNE, a perceived lack of talent and skills of HCNs often necessitates what type of approach?
Ethnocentric
Which approach emphasizes the norms and practices of the parent company relying on parent-country nationals?
Ethnocentric
What professionals perform an important "middleman" function by linking sellers and buyers overseas?
Export intermediaries
Which of the following is a late-mover advantage?
Fewer technological and market uncertainties
Which of the following conforms to the notion put forward by the school of thought associated with stage models?
Firms enter culturally distant countries in later stages when they may gain more confidence.
Relative to licensing and franchising, what strategy allows a firm to have better control of how its proprietary technology is used while entering foreign markets?
Foreign direct investments
Which country is now Manpower's largest market ahead of the United States?
France
In a service industry, what term refers to firm A's agreement to give Firm B the rights to use A's proprietary assets for a royalty fee paid to A by B.
Franchising
Which of the following is a popular way to enter into international service markets?
Franchising
Which of the following is one of the methods by which entrepreneurial firms internationalize by entering foreign markets?
Franchising
With regard to investment in start-ups, investment by which of the following is considered an informal investment?
Friends
Which of the following is a theory that studies the interactions between two parties that compete and/or cooperate with each other?
Game theory
Which of the following staffing approaches is said to be color blind (the "color" refers to the color of the manager's passport)?
Geocentric
Which structure is appropriate for a localization strategy?
Geographic area
MNEs may designate centers of excellence when adopting which of the following strategies?
Global
In the context of the customer-focused dimension of a global matrix, which of the following structures supplies customers in a coordinated and consistent way across various countries?
Global account
For which of the following categories of customers can MNEs market localized products and services under local brands?
Global agnostics
Which of the following category of customers are most likely to lead anti-globalization demonstrations?
Global agnostics
The coordination of responsibilities between product divisions and geographic areas is the hallmark of which of the following strategies?
Global matrix
Which structure allows for consolidation on a worldwide or regional basis and reduces inefficient duplication in multiple countries?
Global product division
The global product division structure supports which of the following strategies?
Global standardization
The ability to meet the needs of the present without compromising the ability of future generations to meet their needs is known as which of the following?
Global sustainability
A compensation approach that pays expatriates the prevailing rate for comparable positions in a host country is called what approach?
Going rate
Compensation with which approach makes locations where pay is higher than in their home country more attractive places to work for PCNs and TCNs?
Going rate
Entrepreneurs selling an equity stake or the entire firm to foreign entrants are using what type of strategy to internationalize?
Harvest and exit
Which of the following is one of the methods by which entrepreneurial firms internationalize by staying in domestic markets?
Harvest and exit sell-offs to foreign entrants
When expatriates evaluate HCNs, cultural difference may create problems. In what type of countries could performance appraisals based on statements made by subordinates potentially undermine the power and status of supervisors?
High power-distance
Which combination of resource similarity and market commonality results in the most intense competition?
High resource similarity, low market commonality
MNEs with which strategic orientation follow an ethnocentric staffing approach?
Home replication
Which of the following strategies is often known as "international strategy"?
Home replication
Which of the following strategies is usually the first one adopted when firms venture abroad?
Home replication
MNEs pursuing localization strategy typically hire what type of employees as top managers at local subsidiaries?
Host-country nationals
Which of the following types of employees in MNEs are often known as locals?
Host-country nationals
In terms of supply chain management, what type of firms typically source from abroad and market products domestically?
Import assembler
Which of the following is a way to reach overseas customers by exporting through domestic-based export intermediaries?
Indirect exports
Which of the following types of societies would most likely foster more entrepreneurship?
Individualistic and low uncertainty-avoidance
Which of the following is one of the four major characteristics associated with a growing entrepreneurial firm?
Internationalization
Which of the following characterizes an MNE from a non-MNE?
It enjoys OLI advantages.
How does the stakeholder primacy view differ from the shareholder primacy view?
It shifts the emphasis from primary stakeholders to secondary stakeholders.
Among developed countries, which has the lowest rate of start-ups?
Japan
Which element of knowledge management faces the common problem of "Not invented here" syndrome?
Knowledge inflow
Which element of knowledge management faces the common problem of employee turnover?
Knowledge retention
Which of the following industrial characteristics makes a collusion difficult but leads to competition?
Lack of market commonality
What is a financial contract that states that the importer's bank will pay a specific sum of money to the exporter upon delivery of the merchandise called?
Letter of credit
Which of the following types of contracts are used between exporters and importers to reduce transaction risks?
Letters of credit
Which of the following is a means by which investors, often in partnership with incumbent managers, issue bonds and use the cash raised to purchase the firm's stock?
Leveraged buyout
In a manufacturing industry, what term refers to firm A's agreement to give firm B the rights to use A's proprietary technology (such as a patent) or trademark (such as a corporate logo) for a royalty fee paid to A by B?
Licensing
Which of the following is a disadvantage of licensing and franchising?
Little control over marketing
MNEs interested in which strategy are typically polycentric in nature when staffing?
Localization
Which of the following strategies is an extension of the home replication strategy?
Localization
Which strategy focuses on a number of foreign countries/regions, each of which is regarded as a standalone market worthy of significant attention and adaptation?
Localization
Which strategy is also known as a multidomestic strategy?
Localization
Which combination of resource similarity and market commonality results in the least intense competition?
Low resource similarity, high market commonality
Which of the following is an advantage of hiring parent-country nationals (PCNs)?
Managers are given international experience.
Which of the following is an argument of critics of a sharing economy?
Many workers suffer from meager pay and little (or no) benefits.
Mutual forbearance generally stems from a high degree of what?
Market commonality
Which of the following is defined as the informal interpersonal relationships among managers of different units that may greatly facilitate intersubsidiary cooperation among various units?
Micro-macro link
If a firm chooses not to counterattack because the attacked market is of marginal value, the managers lack what?
Motivation
Which of the following occurs when firms engage the same rivals in numerous markets.
Multimarket competition
What type of innovation uses purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation?
Open
Which of the following are often labeled independent directors?
Outside directors
MNEs pursuing home replication strategy typically hire which type of employees as top managers at local subsidiaries?
Parent-country nationals
Which of the following entails the evaluation of employee's work for promotion, retention, or termination purposes?
Performance appraisal
Which of the following is an example of tacit knowledge?
Performing surgery
What type of approach is the opposite of an ethnocentric approach?
Polycentric
Which of the following staffing approaches focuses on the norms and practices of the host country?
Polycentric
Which of the following refers to the expenditures a customer is willing to pay for a product?
Price
Which of the following terms is used to describe how demand changes when price changes?
Price elasticity
Which of the following four Ps of marketing includes TV, radio, print, and online advertising, as well as coupons, direct mail, billboards, direct marketing, and public relations?
Promotion
Which of the following is one of the four Ps in the marketing mix?
Promotion
Which of the following refers to all the communications that marketers insert into the marketplace?
Promotion
Which of the following is an advantage shared by both greenfield operations and acquisitions?
Protection of know-how
The price leader's capacity to do which of the following is defined as having sufficient resources to deter and combat defection?
Punish
In supply chain management, what type of orientation is defined as a focus to establish, maintain, and enhance associations with customers?
Relationship
Which of the following is defined as the extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm?
Resource similarity
Which of the following drives the urgent need for global sustainability?
Rising levels of population and poverty calling for new ideas and solutions
Which of the following types of entrepreneurs are best described as people who start, grow, and sell several businesses throughout their career?
Serial entrepreneurs
In the context of the customer-focused dimension of a global matrix, which of the following structures allows a provider to sell whatever combination of goods and services that customers prefer, including rivals' offerings?
Solutions-based
Microfinance provides small loans used to do what?
Start small businesses
Corporate governance in what type of enterprises has relatively weak external and weak internal governance mechanisms?
State-owned
Which of the following is defined as is the flow of products, services, finances, and information that passes through a set of entities from a source to the customer?
Supply chain
When firms indirectly coordinate actions by signaling their intention to reduce output and maintain prices at certain levels, they are engaged in which of the following?
Tactic collusion
What is the rarest outcome in an antidumping case, happening in about 5% of the cases in the US?
The defendant wins the case.
Which of the following is true of licensing/franchising?
The licensor/franchisor does not have tight control over technology and marketing.
Which of the following statements with respect to differences in knowledge management among the four types of MNEs is true?
There is extensive flow of knowledge and people in multiple directions in a transnational strategy.
Which of the following is true of SMEs?
They account for over 95 per cent of total firms around the world.
Which of the following is a benefit of large-scale entries?
They demonstrate strategic commitment to certain markets.
Which of the following is true of indirect exports?
They export through domestically based export intermediaries.
According to a 1997 Business Roundtable Statement on Corporate Governance, what the paramount duty of management and boards of directors?
To deal fairly and ethically with suppliers
Which of the following refers to the cost needed to own a product, consisting of initial purchase cost and follow-up maintenance/service cost?
Total cost of ownership
Specific preparation to do a particular job is called what?
Training
In theory, a global matrix structure supports the goals of which of the following strategies?
Transnational
Which strategy endeavors to be simultaneously cost efficient, locally responsive, and learning-driven around the world?
Transnational
In which of the following strategies do clients pay contractors to design and construct new facilities and train personnel?
Turnkey projects
Which of the following countries is leading the world in managerial compensation?
United States
Which of the following may be a hindrance to successful knowledge management?
Use of single-subsidiary-based incentives
In the context of governance mechanisms, what mechanism refers to shareholders' willingness to work with managers, usually through the board?
Voice-based
Which of the following is an equity mode of entry?
Wholly owned subsidiaries
A thrust on rivals' core markets likely to result in a bloody price war is referred to as _____.
a red ocean
Companies with market-seeking strategic goals search for _____.
abundance of strong market demand and customers willing to pay
In the context of which of the following strategic responses would adopting a code of conduct be a tangible indication of a firm's willingness to accept CSR?
accomodative
What type of strategy is characterized by some support from top managers, who may increasingly view CSR as a worthwhile endeavor?
accomodative
The costs associated with principal-agent relationships are referred to as which of the following?
agency
Who are persons to whom authority is delegated?
agents
The category of customers who are skeptical about whether global brands deliver higher quality goods are called _____.
antiglobals
The most widely used method in expatriate compensation is _____.
balance sheet approach
A loan issued by the firm is called a(n) _____.
bond
International new ventures are also referred to as _____.
born global firms
"People of the same trade seldom meet together, even for merriment and diversion, but their conversation often ends in a conspiracy against the public." This quote from Adam Smith is referring to which of the following business relationship terms?
collusion
The process of anticipating rivals' actions in order to both revise a firm's plan and prepare to deal with rivals' response is called _____.
competitor analysis
The percentage of total industry sales accounted for by the top firms is called the _____.
concentration ratio
A set of written policies and standards outlining the proper practices for a firm is called a code of _____.
conduct
Which of the following terms refers to a loan that the firm needs to pay back at a given time with interest?
debt
Which of the following terms refers to a firm's failure to satisfy the terms of a loan obligation?
default
The general attitude of the top management using what type of strategy is that CSR is an added cost or nuisance?
defensive
What type of strategy focuses on regulatory compliance?
defensive
With regard to foreign market entry, the resource-based view argues that foreign firms need to _____.
deploy overwhelming resources and capabilities to offset their liability of foreignness
Blue ocean strategy focuses on _____.
developing new markets
Firms with what type of ownership have numerous small shareholders but none with a dominant level of control?
diffused
Firms with which of the following types of ownership have a separation of ownership and control?
diffused
Efficiency-seeking firms go to countries that have _____.
economies of scale and abundance of low-cost factors
Co-marketing refers to _____.
efforts among a number of firms to jointly market their products and services
Which of the following is an example of secondary stakeholder groups?
environmental groups
Which of the following is a part of the triple bottom line?
environmental performace
Which of the following terms refers to the stock in a firm (usually expressed in shares), which represents the owners' rights?
equity
A code of conduct is also called a code of _____
ethics
Corporations in the United States and the United Kingdom rely mostly on _____.
exit-based, external mechanisms
The process of selecting, managing, and motivating non-native employees to work abroad is called _____.
expatriation
Dumping is defined as a(n) _____.
exporter selling below cost abroad
Activities that enrich controlling shareholders at the expense of minority shareholders are referred to as _____.
expropriation
Knowledge acquisition, one of the knowledge management elements, faces the common problem of _____.
failure to share and integrate external knowledge
Which of the following are not engaged in transactions with the corporation and are not essential for its survival?
fair labor associations
The category of customers who are in favor of buying global brands that signal prestige and cachet are called _____.
global citizens
The category of customers who may not be able to afford, but nevertheless admire, global brands are called _____.
global dreamers
The relationship among various participants in determining the direction and performance of corporations is called corporate _____.
governance
In staffing, elimination of language and cultural barriers is an advantage of hiring _____.
host-country nationals
The majority of a multinational enterprise's employees would typically be _____.
host-country nationals
A member of the board who is a top executive of the firm is called a(n) _____.
inside director
Which of the following is a means by which investors, often in partnership with incumbent managers, issue bonds and use the cash raised to purchase the firm's stock?
leveraged buyiut
Which of the following entry modes is a type of strategic alliance?
licensing
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?
localization
The basic laws in supply and demand suggest that in general, the larger the pool of capital providers, the _____.
lower the cost of capital
The ability to raise prices without the fear of losing customers is known as what?
market power
The term for a global movement to help eradicate poverty by lending small sums used to start small businesses is referred to as _____.
microfinance
A non-management member of the board is called a(n) _____
outside director
A non-management member of the board is called a(n) _____.
outside director
Which of the following are often labeled independent directors?
outside directors
The act of setting prices below cost to eliminate rivals while intending to raise them in the long run to make up for the initial losses is known as _____.
predatory pricing
Constituents on which the firm relies for its continuous survival and prosperity make up what type of group?
primary stakeholder
Social issue participation refers to a firm's participation in social causes not directly related to the management of its _____.
primary stakeholders
In an agency relationship, a person who delegates authority is called a(n) _____.
principal
The conflicts between controlling shareholders and minority shareholders are called _____.
principal-principal conflicts
Equity capital invested in non-public companies is called _____.
private equity
Firms using what type of strategy often build alliances with stakeholder groups?
proactive
Firms using what type of strategy often engage in voluntary activities that go beyond what is required by regulations?
proactive
From a CSR perspective, the best firms embrace what type of strategy when engaging in CSR?
proactive
It is not realistic to implement what type of strategy when the firm has numerous reactive employees and consumers?
proactive
Top management at what type of firm not only supports and champions CSR activities, but also views CSR as a source of differentiation that permeates throughout the corporate DNA?
proactive
What type of strategy endeavors to do more than is required in CSR?
proactive
An informal understanding of expected delivery of benefits in the future for current services is referred to as a(n) _____.
psychological contract
A strategy that would only respond to CSR causes when required by disasters and outcries is called what type of strategy?
reactive
What type of strategy is indicated by relatively little or no support by top management of CSR causes?
reactive
Returning expatriates are referred to as _____.
repatriates
Which of the following terms refers to the amount of resources committed to entering a foreign market?
scale of entry
Free market advocates believe that the first and foremost stakeholder group is _____.
shareholders
The model of internationalization that portrays the slow step-by step process an SME must go through to internationalize its business is referred to as the_____.
stage model
Corporate governance in what type of enterprises has relatively weak external and weak internal governance mechanisms?
state-owned
An advantage of joint ventures is _____.
the access to partners' assets
In terms of the supply chain, alignment is best defined as _____.
the combining of interests of various players involved in the supply chain
A recent survey revealed that more than nine out of ten people prefer a watch made by firms in Switzerland to one made in India, the US, or any other country. This is an example of _____.
the country-of-origin effect
The country-of-origin effect refers to _____.
the positive or negative perception of firms and products from a certain country
Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries. This is a counter example of _____.
the stage model
If asked what the purpose of a firm is, how might followers of Milton Friedman respond?
to make money
The two key elements to achieve alignment are power and _____.
trust
A form of corporate theft that diverts resources from the firm for personal or family use is called _____.
tunneling
In the context of governance mechanisms, what mechanism refers to shareholders' willingness to work with managers, usually through the board?
voice-based
Corporations in continental Europe and Japan rely mostly on _____.
voice-based, internal mechanisms
