MAN3600 Exam 4
where are the majority of the world's top licensing firms based?
US
which of the following countries is home to the largest number of franchisors?
US
the Agreement of Trade-Related Aspects of Intellectual Property Rights TRIPS was created by the _
WTO
in which of the following industries is standardization more likely to be pursued?
credit cards
which of the following is true with regard to firm strategy in international labor relations?
cross-border linkages give rise to complex interactions among differing national labor systems
_ refers to an employee's ability to function effectively with those from different cultural backgrounds or in different cultural contexts
cultural intelligence
buyer receptiveness differs as a function of _
culture and language
_ refers to the confusion and anxiety experienced by a person who lives in a foreign culture for an extended period
culture shock
leasing is especially beneficial to _
developing economies
adaptation is often necessitated due to _
differences across countries in language, culture, economic conditions, and other factors
managers consider several different rationales when adapting marketing program elements, such as _
differences in living standards and economic conditions
which of the following makes it difficult to completely duplicate a food franchise in every global market?
different local ingredients
which of the following most likely occurs as a result of expatriate failure?
diminished careers
a firm that uses the internet to provide detailed product information and the means for foreigners to buy offerings is using _
direct marketing
which of the following most likely complicates international performance appraisals?
distance from the headquarters
in a system franchising agreement, the franchisee provides _
down-payment plus royalty
international experiences tends to _
enhance problem-solving and crisis management skills
an advantage of licensing is that firms are able to _
enter markets with extensive trade barriers
all of the following factors are important to consider about the target audience of an international advertising campaign EXCEPT _
entrepreneurial experiences of consumers
by establishing a brand name and market power through a licensing agreement, licensors are able to _
establish a more durable presence in the local market
all of the following refer to key tasks of IHRM EXCEPT _
evaluating internal accounting practices and audits
which of the following is true with regard to women in international business?
female senior managers in international business are still more than exception than the norm
which of the following is true with regard to a global market segment?
firms target global market segments by using a relatively uniform marketing strategy and programs
which of the following statements is true about international franchisors?
franchisees may use franchise knowledge to start a competing business
when a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as
franchising
serving a key global customer in a consistent and standardized manner, regardless of where in the world it operates is known as _
global account management
a _ is a group of managers within a firm that determines which elements of the product will be standardized and which will be adapted locally
global new-product planning team
if a computer contains a microprocessor from Costa Rica and a hard risk drive from the Philippines, the computer manufacturer, who is based in Texas and operates across Europe and West Asia, most likely uses _ as an entry strategy
global sourcing
which of the following is true with regard to global sourcing?
global sourcing is a low-control strategy in which the focal firm sources from independent suppliers through contractual agreements
a _ is a firm's integrated network of sourcing, production, and distribution, organized on a worldwide scale and located in countries where competitive advantage can be maximized
global supply chain
in international business, firms frequently market segments by _
grouping countries based on macro-level variables
which of the following best characterizes the purpose of a global marketing strategy?
guides firms in targeting the right customer segments
which of the following measures would a progressive firm most likely take to ensure female equality in international business?
have female executives serve as mentors and role models for aspiring women
which of the following refers to a risk, stemming from environmental factors, that is closely associated with global sourcing?
high energy costs
_ are citizens of the country where the MNE's subsidiary is located
host-country nationals
_ are typically the largest proportion of workers hired abroad and usually work in manufacturing, assembly, basic service activities, clerical work, and other non managerial functions
host-country nationals
in international business, marketing is concerned with _
identifying, measuring, and pursuing customer needs and market opportunities abroad
an industrial design is intended to _
improve a product's performance and marketability
information technology has increased the success and growth of international franchising operations by _
improving communication between MNE managers and their franchisees
to maximize returns, management should outsource those activities _
in which it is relatively weak
_ tends to worsen culture shock
inadequate cross-cultural skills
which of the following is true with regard to the risks of global sourcing?
inadequate legal systems, red tape, convoluted tax systems, and complex business regulations complicate local operations in many countries
given the potential hardships of working abroad, many MNEs also provide _ to expatriate employees which is similar to a bonus
incentives
which of the following sums up the goal of training Conrad for his assignment in Romania?
increasing Conrad's effectiveness abroad
in a system franchising agreement, the franchisor provides _
production and marketing methods
which of the following refers to an advantage for firms that adapt a unique marketing program for an individual market?
products are tailored to specifically meet the exclusive needs of customers in that market
all of the following are international labor trends EXCEPT _
rapidly increasing union membership in most advanced economies
when outsourcing, managers can minimize the risk of creating employee tension by _
reaching a consensus of managers and labor
_ refers to searching for and locating potential job candidates to fill the firm's needs
recruitment
which of the following refers to key strategy used by corporations to combat international price escalation?
redesign the product to remove costly features
a focal firm's overreliance on suppliers can potentially lead to _
reduced control over important value-chain tasks
which of the following is the term used to describe an expatriate's return to his/her home country following completion of a foreign assignment?
repatriation
business activities that would most likely be offshored are characterized by _
routine tasks that do not relate to the firm's primary service or product
_ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset
royalty
_ refers to the tendency to view other cultures through the lends of your own culture
self-reference criterion
which of the following is characteristic of master franchise arrangements?
subfranchises to other independent businesses and thus assumes the role of the local franchisor
the growth of global sourcing has been driven by _
technological advances in communications
differences in culture, laws, and media availability imply _
that it is seldom possible to duplicate in foreign markets the type and mix of advertising used in the home market
_ is a key player in global sourcing in South Asia
the Philippines
which of the following is most likely to occur if a US firm outsources some of its business operations to a Japanese company, and the Japanese yen strengthens against the dollar?
the US company will experience higher costs in using the services of the Japanese company
which of the following is protected under copyright laws?
the art of Jackson Pollack
_ is an arrangement in which the focal firm or a consortium of firms plans, finances, organizes, manages, and implements all phases of a project abroad and then hands it over to a foreign customer after training local workers
turnkey contracting
the problem of end-user prices reaching exorbitant levels in the export market, caused by multilayered distribution channels, intermediary margins, tariffs, and other international customer costs is known as _
international price escalation
which of the following is NOT on of the four dimensions of cultural intelligence?
introversion
a collective mark _
is a logo belonging to an organization whose members use it to identify themselves and associate their products with a level of quality or accuracy, geographical origin, or other positive characteristic
which of the following statements is true of infringement of intellectual property?
it amounts to piracy and takes the form of production and distribution of counterfeit goods
which of the following best summarizes the goal of cross-cultural awareness training for expatriates?
it enables expatriates to effectively communicate with local customers and employees and be sensitive to the host-country's culture
which of the following is a disadvantage of licensing for technological firms?
it increases the risk of creating a future competitor
which of the following is an advantage of franchising to the franchisor?
it is low-risk, low-cost entry strategy
an MNE would most likely employ a host-country national when _
it needs specialized knowledge about the local market
_ is the process of dividing the firm's total customer base into homogenous clusters in a way that allows management to formulate unique marketing strategies for each group.
market segmentation
brand equity can best be defined as the _
market value of a brand
which of the following activities is highly important to firms as a strategic asset?
marketing and branding
taken together, the key elements of a company's marketing program are known as the _
marketing mix
a cross-border contractual relationship provides the focal firm with _ over the foreign partner
moderate level of control
an american automaker operating in the asian and the european markets designs various models around a standardized platform. the firm adds parts, features, and regular units to this basic standardized platform according to the preference of its customers. this exemplifies _
modular architecture
which of the following is true about the taxation of expatriates?
most parent-country governments have devised regulations that allow expatriates to minimize double taxation
which of the following issues most likely complicates international human resource management?
political risk and terrorism
_ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer's mind, emphasizing differences from competitors' offerings
positioning
managers typically consider all of the following elements when developing compensation packages for employees working abroad EXCEPT _
premium
strikes organized by labor unions are aimed at _
pressuring management to grant union demands
which of the following is an example of trademark licensing agreement?
a UK based cosmetics manufacturer that is allowed to use an american cosmetics manufacturing firm's logo for its new line of Titanium makeup products
which of the following is an example of franchising?
a US based quick-service restaurant gives rights to another business to use its entire business system in exchange for compensation and royalties
a global brand can best be defined as _
a brand whose positioning, advertising strategy, look, and personality are standardized worldwide
which of the following is provided by the licensor in a licensing agreement?
a combination fo intellectual property and technical information and assistance
in a licensing agreement, the licensee provides _
a combination of down-payment plus royalty
which of the following is the best example of a situation in which a firm is compensating an employee with base remuneration?
an american engineer working in Japan receives a scary comparable to that of engineers working in the US
contract manufacturing can best be defined as _
an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications
which of the following best describes an expatriate?
an employee who is assigned to live and work in a foreign country for an extended period
_ refers to an industrial relations practice in which labor representatives sit on the corporate board and participate in company decision making
codetermination
which of the following is a recent trend regarding women in business?
companies worldwide are substantially increasing the number of women on foreign assignments
to minimize the complexity of franchising, focal firms must _
conduct advance research on the host country's laws on intellectual property
the pattern or geographic arrangement of locations where the firm carries out value-chain activities is known as _
configuration of value-adding activity
in which of the following industries is an adaptation strategy LEAST likely to be appropriate?
consumer electronics
which of the following refers to an advantage of firms that enter new markets through FDI?
control over pricing strategy
_ is the primary rationale for sourcing abroad
cost efficiency
all of the following refer to external factors that impact international pricing EXCEPT _
cost of manufacturing
which of the following offsets some of the benefits of paying low wages abroad?
cost of training
when managers attempt to standardize their international marketing program, they can expect _
cost reduction
as a strategic asset, _ is of the lowest importance to a firm
manufacturing of parts
international human resource management is usually more complex than domestic human resource management because _
IHRM managers are required to demonstrate greater involvement in employees' personal lives
an american company that planned to outsource IT development would be most likely to save significantly in salary costs by hiring qualified professionals from _
Philippines
for which of the following activities would parent-country nationals most likely by employed?
R&D
the likelihood of internalizing _ rather than outsourcing it is considerably high
R&D
which of the following statements is true with regard to the R&D activities of a firm?
R&D activities are usually concentrated at home
which of the following nations is a popular base for technical and user-support services for English, French, and German-speaking customers throughout Europe?
South Africa
which of the following is true with regard to a global positioning strategy?
a global positioning strategy reduces international marketing costs
a global market segment refers to _
a group of customers who share similar characteristics across many national markets
the root cause of gray market activity is _
a large enough difference in price of the same product between two countries
which of the following is true about cross-border contractual relationship?
a local firm allows the focal firm to blend into the local market, attracting less attention
which of the following statements is true of leasing?
a major advantage for the focal firm is the ability to gain quick access to target markets, while putting assets to use in earning profits
manufacturers of branded products are concerned about gray market activity because it can lead to _
a tarnished brand image
which of the following is a benefit of global sourcing?
access to qualified personnel abroad
adaptation is more costly than standardization because _
adaptation often requires the firm to engage in substantial modifications to product design, manufacturing, pricing, distribution, and communications
professional service firms, such as PriceWaterhouseCooper, often enter large international markets through FDI but usually use _ to enter small markets
affiliates
the purpose of intellectual property rights is to _
allow inventors monopoly advantage for a specified period of time
which of the following refers to the additional payment that allows the expatriate to maintain a standard of living similar to that at home?
allowance
global sourcing becomes a catalyst to overhaul organizational processes and company operations and increases the firm's overall competitive advantages by _
allowing firms to free expensive analysts, engineers, and managers from routine tasks to spend more time on high-value-adding activities
in which of the following situations is the employee considered in a host-country national?
an american MNE employs a mexican citizen for its subsidiary in Mexico
which of the following is an example of licensing?
an american electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada
critical incident analysis examines _
an episode in which tension arises between employee and foreign counterpart due to a cross-cultural misunderstanding
a strike refers to _
an organized, collective refusal to work with the aim of pressuring management to grant union demands
promotional activities _
are short-term marketing activities intended to stimulate an initial purchase, immediate purchase, or increased purchases of the product
cross-licensing often occurs in the semiconductor and chemical industries in order to _
avoid research duplication and building on each other's innovations
_ refers to the employee's ability to adopt verbal and nonverbal behaviors appropriate in different cultures
behavioral flexibility
which of the following is the best example of a back-office BPO activity?
billing
how can international human resource managers effectively minimize cultural shock for expatriates?
by training personnel to understand the host country's government, culture, and language
_ refers to sourcing from the firm's own production facilities
captive sourcing
if Fun Play decides to source from its own wholly owned subsidiary, it would be engaging in _
captive sourcing
_ refers to the number of distributors or other intermediaries that it takes to get the product from the manufacturer to the market
channel length
locating manufacturing in those countries with low-cost labor enables a firm to _
charge lower prices
which of the following is characteristic of a know-how agreement?
exchanging technological or management information for royalties
Linda Grahams, an american citizen, works in a global conglomerate based in Washington DC. A few months ago, Linda was assigned to work in the company's office in Hong Kong and live there for the next 3 years. Which of the following can Linda be best described as?
expatriate
area studies refer to _
factual knowledge of the historical, political, and economic environment of the host country
which of the following is an advantage of licensing?
it requires very little capital investment in the foreign market
which of the following is true about franchising as an entry strategy?
it restricts a firm's ability to expand more rapidly abroad
the strategic view of global sourcing suggests that _
just as firms achieve gains in efficiency, productivity, quality, and revenues by leveraging offshore talent, they also obtain the means to turn around failing businesses, speed up innovation, restructure operations, and fund otherwise-unafforadable development projects
which of the following is true with regard to the distinctive features of labor around the world?
labor activism and dispute resolution through unions have grown significantly in China in recent years
typically, _ provide(s) a means for collective bargaining
labor unions
which of the following constitutes a major disadvantage for exporting firms that primarily use independent distributors based abroad?
lack of control over pricing
which of the following is true with regard to workforce reduction and employee termination?
laying off workers requires management to consider local norms, regulations, and labor unions
critics of global sourcing maintain that it _
leads to reduced national competitiveness
a subsidiary is most likely to receive favorable treatment from an MNE if it is located in a country with _
lower corporate income-tax rates
which of the following is a major challenge often faced by focal firms that engage in global sourcing?
lower-than-expected cost savings
_ is an arrangement in which a contractor supplies managerial know-how to operate a hotel, hospital, airport, or other facility in exchange for compensation
management contract
the relocation of a business process or entire manufacturing facility to a foreign country is known as _
offshoring
which of the following is true with regard to offshoring?
offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities
which of the following is NOT provided by the licensor?
ongoing managerial guidance
the procurement of selected value-adding activities, including production of intermediate goods or finished products, from independent supplies is known as _
outsourcing
gray market activity is also called _
parallel importation
Richard Johnson, an american citizen, is a senior manager in a telecom company based in Texas. He is currently posted in and works from the company's subsidiary in Uganda, Africa. Richard is a _
parent-country national
which of the following is an essential method used by a focal firm to protect its intellectual property in a foreign country?
password-based security systems
_ is a formal process for assessing how effectively employees perform their jobs.
performance appraisal
MNEs often engage in transfer pricing for _
shifting profits out of a country that has high corporate income taxes into a country with low corporate income taxes to increase company-wide profitability
Galaxy Inc, a reputed global conglomerate, has suffered substantial losses in recent months owing to the problem of end-user prices shooting high up in the export market. In order to regain its competitive advantage abroad, Galaxy must _
shorten the distribution channel
before undertaking contractual entry strategies abroad, management _
should register patents and copyrights with local governments
which of the following most likely explains why India is a popular offshoring destination?
skilled workers who works for low wages
firms with global mindsets are characterized by _
staff diversity
a furniture company that makes its marketing program elements uniform, targeting entire regions with similar products, is demonstrating _
standardization
perhaps the most important distinction between standardization and adaptation is that _
standardization helps the firms cut costs, while local adaptation helps the firm more precisely cater to local needs and requirements
which of the following characterize the most successful global brands?
status symbols
adaptation is defined as _
the firm's efforts to modify one or more elements of its international marketing program to accommodate specific customer requirements in a particular market
which of the following challenges is applicable to the franchisee in a franchising agreement?
the franchisor holds much power, including superior bargaining power
firms prefer HCNs when _
the host country environment is complex
in a licensing agreement, _ is responsible for local sales
the licensee
which of the following is characteristic of exclusive licensing agreements?
the licensee is prohibited from sharing the licensed asset with another company within a specific region
channel length can best be defined as _
the number of intermediaries between the manufacturer and the retailer
_makes performance evaluations more complex in the international context
the problem of noncomparable outcomes
focal firms typically source from external suppliers for all of the following reasons EXCEPT _
the supplier offers the same product to competing firms
many MNEs employ relatively standardized advertising around the world, primarily because by doing so _
they are able to save costs
all of the following are true of global new-product planning teams EXCEPT _
they are responsible for global promotion of products and services
which of the following is true with regard to global advertising agencies?
they can create advertising that is both global and sensitive to local conditions
which of the following is true with regard to positioning?
through positioning, firms emphasize differences from competitors' offerings
which of the following is true with regard to strategies for minimizing the risks of global sourcing?
to ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources
the greatest amount of licensing occurs in the _ industries
toy
the practice of pricing intermediate of finished products exchanged among the subsidiaries and affiliates of the same corporate family located in different countries is known as _
transfer pricing
gray marketers are _
unauthorized intermediaries
which of the following is an advantage of franchising to the franchisee?
use of a well-known, recognizable brand name
the reputation of a licensor will be jeopardized by a licensing agreement if the licensee _
uses the licensing asset to create products of poor quality
which of the following is an example of intellectual property?
volkswagen's logo
base remuneration is also referred to as _
wages
which of the following is characteristic of cross-border contractual relationships?
when compared to FDI, they are less susceptible to volatility and risk, and tend to bring both parties a predictable stream of revenue
under which of the following circumstances would an MNE most likely hire a parent-country national?
when the MNE wants to maintain strong control over it's foreign operations
when outsourcing work to foreign suppliers, managers must ensure that _
worker productivity in the host country meets acceptable levels
