International Management Quiz Quetions

________ is based on a comprehensive set of laws organized into a code.

Civil law

________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level.

Distinctive competencies

________ results from the lessening of trade barriers and the increased flow of goods and services, capital, labor, and technology around the world.

Economic integration

includes the initiation of joint ventures with nationals (individuals or those in firms, labor unions, or government) to reduce political risks.

Equity sharing

________ refers to the belief that the practices of one's own country are best no matter where or under what conditions they are applied.

Ethnocentrism

According to the GLOBE project team, highly assertive societies emphasize loyalty and solidarity.

False

Ethnocentric culture is an integration of the business environments in which firms currently operate.

False

Negotiators in the Far East address issues one at a time, in a linear fashion.

False

________ refers to the establishment of worldwide operations and the development of standardized products and marketing.

Globalization

According to Trompenaars's value dimensions, which of the following is true of the universalistic approach?

It emphasizes applying rules and systems objectively.

In the context of doing business in Asia, what is meant by the phrase "the contract is in the relationship, not on the paper"?

Managers should nurture the relationship to ensure the reliability of the contract.

Josh, a tourist from the United States, goes on a five-day trip to Japan. Apart from learning their rich history and heritage, he notices that people do not shake hands, but bow to each other. He is most likely to conclude that the Japanese have a ________.

low-contact culture

Stereotyping should most likely be avoided by international managers because ________.

many cultures have diverse subcultures

Which of the following is true of countries with low masculinity?

more women in high-level jobs

Which of the following terms refers to the practice by a country of rallying public opinion in favor of national goals and against foreign influences?

nationalism

With regard to small family businesses in China, a "guanxi" can be best described as a ________.

network of relationships centered on mutual obligations and favors

Transparency International is best described as a(n) ________.

nongovernmental organization that fights corruption

The term ________ refers to behavior that communicates without words.

nonverbal communication

According to Hofstede, the extent to which subordinates accept a hierarchical system in a company is known as ________.

power distance

The Paris Union was established for the purpose of ________.

protecting patents

Tokens of appreciation and grease money are considered ________.

questionable payments

An internal analysis focuses on the company's ________.

resources and operations

According to Ghemawat, which of the following offers room for cross-border strategy to have content distinct from single-country strategy?

semi-globalization

Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to ________.

switch from exporting to overseas manufacturing

Licensing is especially suitable for ________.

the mature phase of a product's life cycle when production is relatively standardized

In the American culture, which of the following is most likely considered a rough tactic used during negotiations?

uncomfortable room temperatures

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.

Strategy

________ lies at the intersection of financial, social, and environmental health-sometimes described as the "triple bottom line."

Sustainability

Arabs avoid open admission of error at all costs because weakness is a failure to be manly.

True

Core competencies are challenging and at times difficult for competitors to imitate.

True

Ethical relativism adopts the local moral code of the country in which it is operating.

True

Small- and medium-sized enterprises contribute to their national economies by creating new jobs.

True

In which of the following groups of trade blocs does most of today's world trade take place?

Western Europe, Asia, and the Americas

Intercultural communication most likely occurs when ________.

a member of one culture sends a message to a member of another culture

According to the GLOBE project, a coworker or subordinate from Sweden, a country ranking low on assertiveness, would most likely prefer ________.

a two-way dialogue

According to the GLOBE project, which of the following cultural dimensions refers to how much people in a society are expected to be tough, confrontational, and competitive versus modest and tender?

assertiveness

John, an American national, works as a manager at his firm's subsidiary in Indonesia. A local government official tells John that materials could be delivered to the firm's facility more quickly if John pays an extra fee to the port supervisor. What should be John's first action?

consult both American and Indonesian laws

Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas. In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas?

customer demands

The Foreign Corrupt Practices Act of 1977 was primarily established to ________.

distinguish between harmless customs and actual bribery

The term ________ refers directly to the marketing and sales process via the Internet.

e-commerce

Recently, the level of ________ in Europe, for example, was a great concern around the world, in particular regarding concerns in the eurozone brought about by debt problems in Greece.

economic risk events

Creating Shared Value (CSV) creates ________.

economic value by creating social value

From an American perspective, the ________ stage of negotiation is straightforward, objective, efficient, and direct.

exchanging task-related information

Meryl Software Inc., an American MNC wishing total control of its operations, wants to acquire an existing firm, Graphiti Animations, in Canada. If acquired, Graphiti Animations would be a ________.

fully-owned subsidiary

Japanese negotiators tend to ________.

hide emotions

In ________ cultures, communication occurs within an extensive network of close personal and business relationships.

high-context

According to Hofstede, the tendency of people to look after themselves and their immediate family and to place less emphasis on the needs of the society is known as ________.

individualism

Which of the following is a potential benefit to the host country of MNC operation?

infrastructure development and support

________ is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.

Relationship building

________ is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return.

Political risk