FINAL EXAM IMS

In which of the following strategies is knowledge mostly developed and retained at the center and key locations?

a. Global standardization strategy

Which of the following is a disadvantage of the home replication strategy?

a. It lacks local responsiveness.

Which element of knowledge management faces the common problem of "Not invented here" syndrome?

a. Knowledge inflow

Which element of knowledge management faces the common problem of absorptive capacity?

a. Knowledge inflow

____ is the informal benefits individuals and organizations derive from their networks.

a. Social capital

MNEs adopting the _____ strategy may designate centers of excellence.

a. global

Which of the following is an example of tacit knowledge?

a. performing surgery

In theory, a global matrix structure supports the goals of the _____ strategy

a. transnational

The _____ strategy is characterized by some support from top managers, who may increasingly view CSR as a worthwhile endeavor.

accommodative

A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.

acquisition

The difference between the acquisition price and the market value of target firms is called _____.

acquisition premium

The institution-based view driving alliances and acquisitions focuses on _____ concerns.

antitrust

Which are the two primary pressures MNEs confront?

b. Cost reductions and local responsiveness

Which of the following strategies is usually the first one adopted when firms venture abroad?

b. Home replication strategy

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?

b. Localization strategy

Which strategy is organizationally complex and most difficult to implement?

b. Transnational strategy

Knowledge acquisition, one of the knowledge management elements, faces the common problem of _____.

b. failure to share and integrate external knowledge

______ Innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation.

b. open

70. 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.

b. solutions-based

The _____ strategy endeavors to be simultaneously cost efficient, locally responsive, and learning-driven around the world.

b. transnational

Knowledge outflow, one of the knowledge management elements, faces the common problem of _____.

c. "How does it help me?" syndrome

____ is the ability to recognize the value of new information, assimilate it, and apply it.

c. Absorptive capacity

_____ is the informal interpersonal relationships among managers of different units that may greatly facilitate intersubsidiary cooperation among various units.

c. Micro-macro link

Which of the following statements with respect to differences in knowledge management among the four types of MNEs is true?

c. There is extensive flow of knowledge and people in multiple directions in a transnational strategy.

The _____ structure is appropriate for a localization strategy.

c. geographic area

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.

c. global account

The hallmark of the _____ structure is the coordination of responsibilities between product divisions and geographic areas.

c. global matrix

52. The global product division structure supports the _____ strategy.

c. global standardization

The _____ strategy focuses on a number of foreign countries/regions, each of which is regarded as a standalone market worthy of significant attention and adaptation.

c. localization

The _____ strategy is an extension of the home replication strategy

c. localization

Which of the following strategies has the lowest interdependence on knowledge management?

c. localization strategy

A _____ is a set of written policies and standards outlining the proper practices for a firm.

code of conduct

A code of conduct is also called _____.

code of ethics

Pre-acquisition analysis often focuses on strategic fit, which is the effective matching of ____ strategic capabilities.

complementary

A non-equity based alliance is also called a _____.

contractual alliance

In the context of equity-based alliances, _____ involves both firms investing in each other.

cross-shareholding

Which of the following strategies is often known as "international strategy"?

d. Home replication

Which element of knowledge management faces the common problem of employee turnover?

d. Knowledge retention

60. Which of the following may be a hindrance to successful knowledge management?

d. Use of single-subsidiary-based incentives

When an MNE is locally responsive, _____.

d. costs increase

The _____ structure allows for consolidation on a worldwide or regional basis and reduces inefficient duplication in multiple countries.

d. global product division

The _____ structure is the opposite of the geographic area structure.

d. global product division

The _____ strategy focuses on development and distribution of standardized products worldwide to reap maximum benefits from low-cost advantages.

d. global standardization

The _____ strategy is also known as multidomestic strategy

d. localization

At stage 1 in the formation of an alliance, a firm must _____.

decide whether growth can be achieved through market transactions

A(n) _____ strategy focuses on regulatory compliance.

defensive

The general attitude of the top management using a(n) _____ strategy is that CSR is an added cost or nuisance.

defensive

The act of investigating prior to signing contracts is called _____.

due diligence

The second phase in an alliance dissolution is _____.

going public

The combination of operations and management of two firms to establish a new legal entity is called a(n) _____.

merger

In an alliance, keeping critical skills and technologies not meant to be shared a secret helps prevent _____.

opportunism

In the context of acquisitions, the similarity in cultures, systems, and structures between firms is called _____.

organizational fit

Constituents on which the firm relies for its continuous survival and prosperity are _____ groups

primary stakeholder

Social issue participation refers to a firm's participation in social causes not directly related to the management of its _____.

primary stakeholders

A strategy that endeavors to do more than is required in CSR is called a(n) _____ strategy.

proactive

From a CSR perspective, the best firms embrace a(n) _____ strategy when engaging in CSR.

proactive

It is not realistic to implement a(n) _____ strategy when the firm has numerous reactive employees and consumers.

proactive

Top management at a(n) _____ firm not only supports and champions CSR activities, but also views CSR as a source of differentiation that permeates throughout the corporate DNA.

proactive

A strategy that would only respond to CSR causes when required by disasters and outcries is called a(n) _____ strategy.

reactive

A(n) _____ strategy is indicated by relatively little or no support by top management of CSR causes.

reactive

A(n) ____ is an investment in real operations as opposed to financial capital.

real option

In terms of corporate social responsibility, MNEs should

reinvest some profits in the host country.

The ability to successfully manage interfirm relationships is called _____.

relational capability

Free market advocates believe that the first and foremost stakeholder group is _____.

shareholders

Any group or individual who can affect or is affected by the achievement of the organization's objectives is called a(n)

stakeholder

In the context of the motives for acquisition, from a resource-based view, the most important _____ rationale is to leverage superior resources.

synergistic

With respect to the motives for acquisition, _____ motives add value.

synergistic

The set of informal institutions that stresses the cognitive pillar lays emphasis on _____.

the internalized taken-for-granted values and beliefs that guide firm behavior

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?

Accommodative

Which of the following is one of the four segments of the strategic response framework?

Accommodative

. _____ is the consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains a firm seeks.

Corporate social responsibility

In the context of acquisitions, which of the following is a resource-based issue faced by synergistic motives?

Enhancement of market power and scale economies

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 performance

_____ alliances are based on ownership or financial interest between the firms.

Equity-based

Which of the following are not engaged in transactions with the corporation and are not essential for its survival?

Fair labor associations

Which of the following alliances is a contractual alliance?

Franchising

Which of the following corporate social responsibilities with regard to employment practices is recommended for MNEs by international organizations?

Give advance notice of plant closures and mitigate the adverse effects

____ is the ability to meet the needs of the present without compromising the ability of future generations to meet their needs.

Global sustainability

Which is one of the four phases in an alliance dissolution?

Going public

Which is the best-case scenario for an equity-based alliance?

High tacitness and high importance to direct organizational monitoring and control

____ refers to overconfidence in one's capabilities.

Hubris

Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions?

Investors

Which of the following occurs in the uncoupling stage of an alliance dissolution?

Last minute salvage

Which is the best-case scenario for a non-equity-based alliance?

Low tacitness and low importance of direct organizational monitoring and control

Which of the following reasons for cross-border acquisition failure is associated with pre-acquisition?

Nationalistic concerns against foreign takeovers (political and media levels)

_____ are associations between firms that are based on contracts and do not involve the sharing of ownership.

Non-equity based alliances

Which of the following is a disadvantage of alliances?

Partner opportunism

In a non-equity-based alliance, which of the following should be high for possible upgrading to equity-based relationships?

Potential as real option

_____ firms actively participate in regional, national, and international policy and standards discussions.

Proactive

_____ firms often build alliances with stakeholder groups.

Proactive

_____ firms often engage in voluntary activities that go beyond what is required by regulations.

Proactive

Which of the following is one of the underlying motivations behind MNEs voluntary "green practices"?

Requirements of MNE headquarters for worldwide compliance of higher CSR standards

Which of the following corporate social responsibilities is recommended for MNEs by the UN?

Respect human rights and fundamental freedoms in host countries

Which of the following drives the urgent need for global sustainability?

Rising levels of population and poverty calling for new ideas and solutions

. _____ groups are those who influence or affect, or are influenced or affected by, the corporation, but are not engaged in transactions with the corporation and are not essential for its survival.

Secondary stakeholder

_____ explicitly places shareholders as the single most important stakeholder group.

Shareholder capitalism

Which of the following is an example of a primary stakeholder group?

Shareholders

At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach?

Stage 2

In which type of equity-based alliance does one firm invest in another?

Strategic investment

Which of the following alliances is an equity-based alliance?

Strategic investment

Which of the following motives for acquisition faces the resource-based issue of access to complementary resources?

Synergistic

Who benefits the most from the acquisition premium valued during an acquisition?

The shareholders of the target firm