Test 2 Relyea
very high; medium
With a transnational strategy, the need for complex integrating mechanisms is ________, and in an international strategy, the need is ________.
very important; not important
With a transnational strategy, the role of organizational culture is ________, and in a multidomestic strategy, the role of organizational culture is ________.
the local partner
With regard to less-developed countries, most problems with international joint ventures involve ________.
designing equitable pay scales
With the increasing number of companies that operate around the world and assign and move personnel from one country to another, ________ has become exceedingly complex.
Strategic alliances
_______ are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages.
Cooperative strategies
_______ are transition mechanisms that propel the partners' strategies forward in a turbulent environment faster than would be possible for each company alone.
Born globals
________ are companies that start out with a global reach, typically by using their Internet capabilities and also through hiring people with international experience and contacts around the world.
Expatriates
________ are employees assigned to a country other than their own.
Parent-country nationals
________ are familiar with company goals, products, technology, policies, and procedures; they know how to get things accomplished through headquarters.
Inpatriates
________ are managers with global experience who are transferred to the organization's headquarters country, so their overseas business and cultural experience and contacts can facilitate interactions among the country's far-flung operations.
Parent-country nationals
________ are the most preferred staffing choice for a foreign subsidiary where proprietary technology is used extensively.
Distinctive competencies
________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level.
Parent-country nationals
________ are usually preferable when a high level of technical capability is required and maintenance of close control is desired.
The inability of the spouse to adjust
________ has been found to be the most frequently cited reason for expatriate failure in U.S. and European companies.
Environmental assessment
________ includes environmental scanning and continuous monitoring to keep abreast of variables around the world that are pertinent to the firm.
Licensing
________ is an ideal strategy for small businesses with few financial and managerial resources for direct investment abroad.
International human resource management
________ is increasingly being recognized as a major determinant of success or failure in international business.
Knowledge management
________ is the conscious and active management of creating, disseminating, evolving, and applying facts, information, or skills acquired through experience or education, to strategic ends.
Problem recognition
________ is the first stage in a comprehensive plan for developing expatriates.
Internationalization
________ is the process by which a firm gradually changes in response to the imperatives of international competition, domestic market saturation, and desire for expansion.
Globalization
________ refers to the establishment of worldwide operations and the development of standardized products and marketing.
IJV control
________ refers to the processes that management puts in place in order to direct the success of the joint venture's goals.
Financial ratios
________ reveal an inefficient use of assets that restricts profitability.
Ethnocentric
________ staffing approach serves to perpetuate particular personnel selections and other decision-making processes because the same types of people are making the same types of decisions.
Ethnocentric
________ staffing approach usually results in a higher level of authority and decision making at headquarters compared to the polycentric approach.
Third-country nationals
________, when placed in key positions, are perceived by employees as acceptable compromises between headquarters and local managers.
ethnocentric
When the company is at the internationalization stage of strategic expansion and has a centralized structure, it will likely use a(n) ________ staffing approach to fill key managerial positions with PCNs.
local IJV management
Where ownership is divided among several partners, the parent organizations are more likely to delegate the operational running of the IJV to ________.
They help small- and medium-sized companies to go global without the internal capabilities to carry out global activities.
Which of the following best describes the role of e-commerce enablers?
information technology expansion
Which of the following can be regarded as a pressure to globalize?
health insurance
Which of the following can be termed as a benefit in the context of expatriate compensation?
organizational mission
Which of the following charts the direction of the company and provides a basis for strategic decision making?
management contract
Which of the following entry strategies is most likely to serve as a short-term strategy and to provide limited income?
exporting
Which of the following entry strategies requires little investment and enables quick and easy market withdrawal?
expropriation threats
Which of the following environmental factors would most likely increase the risk for a firm that has established a fully owned subsidiary in a country?
form of governance chosen
Which of the following factors has the maximum influence on the success of multinational firm alliances?
employee leadership
Which of the following factors most significantly affects all other variables necessary for the successful implementation of a global alliance?
headquarters mentality
Which of the following factors will hinder the integration of expatriate staff with local staff?
global functional structure
Which of the following forms of organization is particularly appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers?
international licensing agreement
Which of the following grants the rights to a firm in the host country to either produce or sell a product, or both?
staffing friction
Which of the following human resource problems can be simplified by increasing the autonomy of the IJV?
having an international team
Which of the following is NOT a barrier for maintaining globalization momentum?
minimizing autonomy
Which of the following is NOT a characteristic of strategic implementation of the McDonald's corporation?
distributing knowledge to clients and media outlets
Which of the following is NOT a knowledge management process?
regional structure
Which of the following is NOT a stage in Stopford's stages model?
to test marketing campaigns overseas
Which of the following is NOT a typical reason for forming cross-border alliances?
global
Which of the following is NOT necessarily a characteristic of the best organizational structure for a firm?
International Technology Units
Which of the following is NOT one of proctor & Gamble's Four Pillars?
financial performance reports
Which of the following is NOT one of the direct control mechanisms used by McDonald's in Russia?
fairly autonomous divisions
Which of the following is a characteristic of Intel's organizational structure?
accelerating diffusion of industry standards and new technologies to create barriers to entry
Which of the following is a competitive aspect of strategic alliances?
creating economies of scale in tangible assets
Which of the following is a cooperative aspect of strategic alliances?
choice of distributor
Which of the following is a critical success factor for exporting?
organizational formality
Which of the following is a cultural difference that can significantly affect cross-border alliances?
lack of managerial effectiveness of PCNs in foreign countries
Which of the following is a disadvantage of the ethnocentric staffing approach?
speaking the local language
Which of the following is a factor that facilitates integration of expatriate staff with local staff?
inflation levels
Which of the following is a financial variable in MNC reports that complicates financial statements and performance evaluations?
economic and financial risk
Which of the following is a global risk with regard to strategic entry scanning?
simplifying traditional hierarchies
Which of the following is a major structural changes occurring within many emerging market companies, such as Lenovo and Mittal Steel?
legal protection
Which of the following is a national risk with regard to strategic entry scanning?
transfer pricing
Which of the following is a non-financial measure for the performance evaluation of a subsidiary?
disputes over management
Which of the following is a pitfall of cross-border alliances?
customer demands
Which of the following is a reactive reason that prompts a firm to expand overseas?
financial and currency instability
Which of the following is a regional risk with regard to strategic entry scanning?
keeping prices low to build market share
Which of the following is a strategic implementation used by McDonald's?
Personnel skills and experience are maximized
Which of the following is a true statement about the matrix structure of organizational design?
screening orders
Which of the following is a typical task performed by e-commerce enablers?
ability to protect proprietary technology
Which of the following is a venture-specific factor that affects the choice of international entry mode for a company?
enforcing antidumping laws
Which of the following is a way in which formal institutions affect international competition?
full control over decision making
Which of the following is an advantage of establishing a new, fully-owned foreign manufacturing?
Local managers tend to be instrumental in staving off or more effectively dealing with problems in sensitive political situations.
Which of the following is an advantage of the polycentric staffing approach?
maintenance of close control over subsidiaries
Which of the following is an advantage of the staffing approach that employs parent-country nationals as top managers?
management contract
A ________ gives a foreign company the rights to oversee the daily operations of a business but not to make decisions regarding ownership, financing, or strategic and policy changes.
joint venture
A ________ is a new independent entity that is collectively created and owned by two or more parent companies.
SWOT analysis
A ________ is an assessment of a firm's capabilities relative to those of its competitors as pertinent to the opportunities and threats in the environment for those firms.
turnkey operation
A company designs and constructs a facility abroad, trains local personnel, and then transfers the facility to local management for a fee. Which of the following entry strategies is being implemented by the company?
strategy
A company's choice to operate in a business or businesses and the ways in which it differentiates itself from its competitors is called its ________.
providing incentives
A country seeks new infusions of capital, technology, and know-how. It announces that it shall exempt taxes and grant concessions for foreign investors. Which of the following measures is the country employing?
more resources tend to be provided to the international division
A firm that uses an international division structure may experience conflict among all of its divisions because ________.
provides a greater pool of qualified and willing applicants from which to choose
A global staffing policy ________.
globalization
A specific strategy that treats the world as one market by using a standardized approach to products and markets is called ________.
culture shock
A state of disorientation and anxiety that results from not knowing how to behave in an unfamiliar culture is called ________.
internal analysis
A(n) ________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially) compared to competitors.
ethnocentric
A(n) ________ policy is likely to be used where a company notes the inadequacy of local managerial skills and determines a high need to maintain close communication and coordination with headquarters.
international joint venture
A(n) ________ refers to a JV among companies in different countries.
polycentric
A(n) ________ staffing approach is more likely to be effective when implementing a multinational strategy.
managing the flow of transformed and newly created knowledge from the IJV back to the parents
According to Berdrow and Lane, the process of harvest can be defined as ________.
managing the flow of existing knowledge between parents and from the parents to the IJV
According to Berdrow and Lane, the process of transfer can be defined as ________.
managing the transformation and creation of knowledge within the IJV through its independent activities
According to Berdrow and Lane, the process of transformation can be defined as ________.
partners can become competitors
According to David Lei, the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that ________.
Avoid partners that compete in your industry if they enjoy superior bargaining power.
According to Dovev Lavie, which of the following is a caution given to global companies by value capture strategies?
assimilating network resources to acquire new skills and capabilities
According to Dovev Lavie, which of the following is a value-creation strategy?
semi-globalization
According to Ghemawat, which of the following offers room for cross-border strategy to have content distinct from single-country strategy?
the risk of asymmetric learning by the partner is low
According to Gupta and Govindarajan, an alliance-based entry strategy is most suitable when ________.
psychological capital
According to Mansour Javidan, the ability to function successfully in the host country through internal acceptance of different cultures and a strong desire to learn from new experiences is termed ________.
autocratic leadership qualities
According to Mansour Javidan, which of the following is NOT a global mind-set attribute that a successful expatriates possesses?
biculturalism
According to Oberg, which of the following is the final stage of culture shock?
honeymoon
According to Oberg, which of the following is the first stage of culture shock?
culture assimilators
According to Tung, the ________ training technique exposes trainees to the kinds of situations they are likely to encounter, which are critical to successful interactions.
area studies
According to Tung, which of the following refers to a training technique where the trainees are acquainted with documentary programs about the country's geography, economics, sociopolitical history, and so forth?
stress tolerance
According to Tye and Chen, which of the following characteristics has the greatest predictive value of determining expatriate success?
U.S.
According to research by Neghandi and Welge, ________ firms require the greatest number of functional reports not including performance reviews.
global web of networked companies
According to the author, the future for MNC structure most likely lies in a ________.
centralized vertical structure
All of the following are characteristics of a firm with transnational capability EXCEPT ________.
learning new intangible skills from alliance partners
All of the following are cooperative aspects of strategic alliances EXCEPT ________.
regional authorities
All of the following are examples of international joint venture control mechanisms used by parent firms EXCEPT ________.
greater demands for information systems
All of the following are signs of international organizational malaise EXCEPT ________.
cooperative strategies
Alliances are also known as ________.
equity strategic alliances
Alliances in which two or more partners have different relative ownership shares in the new venture are called ________.
non-equity strategic alliances
Alliances that are carried out through contract rather than ownership sharing are called ________.
motivate employees
An appropriate compensation and benefits package is most likely to ________.
resources and operations
An internal analysis focuses on the company's ________.
functional, product, geographic
An international division may be organized along what lines?
cultural lines
An international division with an integrated global structure can be organized along all of the following lines EXCEPT ________.
transnational corporation
As a company becomes larger, more complex, and more sophisticated in its approach to world markets, it will most likely evolve into a(n) ________.
biculturalism
As described by Oberg, ________ refers to the stage in culture shock in which the manager and family members grow to accept and appreciate local people and practices, and are able to function effectively in two cultures.
gradual adjustment
As described by Oberg, in the ________ stage of culture shock the expatriate and his or her family members come to understand and predict patterns of behavior, use the language, deal with daily activities, and accept their new life.
homesickness
As described by Oberg, which of the following is most likely a characteristic of the irritation and hostility stage of culture shock?
multinational, regional, and local
At which three levels should firms ideally perform global environmental analysis?
What is the financial health of TMC Enterprises?
Barton & Green is an MNC based in the U.S. that makes a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following questions is the most relevant to Barton & Green's decision to outsource its IT infrastructure to TMC Enterprises, a firm in India?
Outsourcing will enhance Barton & Green's competitiveness.
Barton & Green is an MNC based in the U.S. that provides a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following best supports the argument that Barton & Green should outsource its IT infrastructure to TMC Enterprises, one of the best IT infrastructure maintenance firms in India?
controlling and improving cash flow
Based on Samsung's 2009 reorganization, which of the following best describes the firm's new strategy?
rationalization
By selecting the manufacturing location for each product based on where the best combination of cost, quality, and technology can be obtained, a firm will most likely achieve ________.
global functional
Company XYZ is a small firm with a highly centralized system and a narrow spectrum of customers. It most likely has a ________ structure.
allows the firm to carry out its strategic goals
Contingency theory proposes that the best organizational structure is that which ________.
mistrust and secrecy
Cross-border allies often have difficulty collaborating effectively, especially in competitively sensitive areas. This generally leads to ________.
improving the efficiency of the supply chain
Dell Computer uses the Internet to streamline the global supply system, which has the result of ________.
globally integrated company
Dell is an American corporation that deals with computer technology. With its worldwide sourcing and fully merged production and marketing system, Dell is considered to be a ________.
customer demands
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?
Felix wants to maintain close control of the Nicaragua store for at least three years.
Felix Department Store has over 900 stores in the U.S. and over 300 stores in Mexico and Canada. Felix has been particularly successful in Mexico, and the firm's executives believe Felix should expand into other Latin American countries. As a result, plans are underway for the construction of a new Felix store in Managua, Nicaragua. The construction, once started, is expected to be completed within a year, so staff selection needs to begin soon. Felix's executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following, if true, best supports the argument that parent-country nationals should manage the Felix store in Managua, Nicaragua?
) Felix is implementing a strategy of global expansion by acting local.
Felix Department Store has over 900 stores in the U.S. and over 300 stores in Mexico and Canada. Felix has been particularly successful in Mexico, and the firm's executives believe Felix should expand into other Latin American countries. As a result, plans are underway for the construction of a new Felix store in Managua, Nicaragua. The construction, once started, is expected to be completed within a year, so staff selection needs to begin soon. Felix's executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following, if true, undermines the argument that parent-country nationals should manage the Felix store in Nicaragua?
affects of governmentalism
Firms typically internationalize in response to all of the following EXCEPT ________.
level of taxation
Which of the following is an area where the host government influences the strategic choices and implementations of foreign firms?
lateral communication network
Which of the following is an essential element of the transnational structure of Asea-Brown Boveri (ABB)?
industry growth rate
Which of the following is an external factor that affects the choice of international entry mode for a company?
global experience of firm and managers
Which of the following is an internal factor that affects the choice of international entry mode for a company?
new, fully-owned subsidiaries
Which of the following is generally viewed as the most risky entry strategy?
tight budgets
Which of the following is most likely NOT an indication that changes need to be made to a firm's organizational design?
U.S. firms use communication and coordination processes more extensively than Japanese firms.
Which of the following is suggested by the research on monitoring systems by Ueno and Sekaran?
technical training
Which of the following is the LEAST critical area of expatriate preparation?
labor market
Which of the following is the LEAST relevant variable to consider in organizational design
debriefing expatriate and family to improve IHRM process
Which of the following is the final stage of the IHRM process that is used to maximize the effectiveness of expatriate assignments?
establishment of the company's mission
Which of the following is the first step of the planning phase of a strategic management process?
the partner's local contacts and markets will be utilized
Which of the following is the most beneficial aspect of an international joint venture?
globalization of competitors
Which of the following is the most common reactive reason for a firm to extend its operations overseas?
quality control
Which of the following is the most critical aspect of a franchising strategy?
equity strategic alliance
France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of TCL-Thomson Electronics. This is best described as a(n) ________.
issues are settled before the merger
International joint ventures are less likely to break up when ________.
the more issues that can be settled before the merger, the less likely it will be to break up
International joint ventures are like a marriage because ________.
strategic management
Jamie decides to plan his strategies for starting an electric equipment manufacturing company. His main aim is to ensure that it runs efficiently. He decides to do this in two phases: the planning phase and the implementation phase. Which of the following processes is Jamie employing?
subculture shock
Joan Kerry, an American national, worked as a senior manager in her firm's headquarters in New Jersey. When her firm opened a new office in San Francisco, she was transferred to California. Soon, she started feeling like an immigrant in her own country owing to the differences in attitudes and lifestyle between New Jersey and California. Joan is most likely experiencing ________.
provide greater control of proprietary technology
Joint ventures are often the chosen form of multinational firm alliances because they ________.
parent-country national
Kelly Roberts, an American, is a senior manager at her firm's headquarters in New York. Kelly is a(n) ________.
the mature phase of a product's life cycle when production is relatively standardized
Licensing is especially suitable for ________.
polycentric staffing approach
Local managers are hired to fill key positions in their own country under the ________.
capture new innovations and ideas
MNCs often partner with local SMEs in order to ________.
information and communication technologies
Managerial training in ________ is particularly critical for firms in new economy and emerging markets.
born global phenomenon
Many emerging market companies are avoiding the traditional method of internationalization and instead capitalizing on the ________.
global geographic
Marketing-oriented companies like Nestle and Unilever are more likely to use a ________ structure because products can be adapted to local requirements.
fully-owned subsidiary
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 ________.
inpatriates
More recently, a staffing option known as ________ has been utilized to provide a linking pin between the company's headquarters and local host subsidiaries.
the greater costs of expatriate staffing
Most MNCs tend to start their operations in a particular region by selecting primarily from their own pool of managers. Over time, and with increasing internationalization, they tend to move to a predominantly polycentric or regiocentric policy because of ________.
strategy
Structure must fit an organization's ________, or it will not work.
balance sheet approach
The ________ is often used to equalize the standard of living between the host country and the home country, and to add some compensation for inconvenience or qualitative loss.
localization approach
The ________ pays the expatriate the going rate for similar positions in the host country, plus whatever allowances and benefits for the assignment that the manager negotiates.
transnational
The ________ strategy involves maximizing opportunities for both efficiency and local responsiveness by adopting a structure that uses alliances, networks, and horizontal design formats.
global product
The advantages of the ________ structure are market concentration, innovation, and responsiveness to new opportunities in a particular environment.
standard of living is at par with that of colleagues at home
The concept of "keeping the expatriate whole" in terms of compensation most likely means ensuring that the expatriate's ________.
international division
The creation of a(n) ________ facilitates the beginning of a global strategy by allowing managers to coordinate resources for foreign activities from one location.
conflict between cooperation and competition
The dual role of strategic alliance refers to the ________.
eliminate markets with unreasonable entry conditions
The first broad scan of all potential world markets should result in the firm being able to ________.
culture shock
The goal of cross-cultural training is to ease the expatriate's adjustment to the new environment by reducing ________.
navigate poor infrastructures
The initial challenge in implementing strategies in emerging markets is likely to be how to ________.
choice of a partner
The most important single factor determining IJV success or failure is the ________.
cultural and system differences between partners
The need for knowledge management in IJVs primarily stems from ________.
platformisation
The organizational structure at Intel which involves customizing a range of chips in a combination suitable for a particular target market is known as ________.
global-local format that allows local managers to act independently
The organizational structure of Levi Strauss is best described as a ________.
adapt products to local needs and demands
The primary advantage of a global geographic structure is the firm's ability to ________.
utilizing inexpensive overseas labor
The primary motive in the contract manufacturing strategy is ________.
market share
The problem regarding noncomparability of performance data across countries is primarily caused by all of the following variables EXCEPT ________.
strategic planning
The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ________.
environmental scanning
The process of gathering information and forecasting relevant trends, competitive actions, and circumstances that will affect operations in geographic areas of potential interest is called ________.
think globally and act locally
The purpose of proctor & Gamble's Four Pillars organizational structure is to enable it to ________.
implementation phase
The second part of the strategic management process involves the ________.
follow the evolution of the internationalization process
The stages model is best described as the stages of change in an organizational structure that ________.
structure and staffing procedures
The two primary means of direct control for foreign operations are ________.
outsourcing
The use of professional or skilled workers located in countries other than that of the home country is referred to as ________.
strategy, structure, and staffing
Those who design organizational structures must account for the relationships among the three interdependent factors of ________.
parent-country products
Training for host-country nationals during the export stage of globalization will most likely focus on ________.
the firm searches for less restrictive operating environments overseas
Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations?
consolidating business operations into two operating divisions
What was the primary aspect of Samsung's 2009 reorganization?
internal sources
Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm?
rapid entry and exit from markets
Which of the following is the primary advantage of using e-business as a local-level entry strategy?
seeking economies of scale
Which of the following is the proactive reason that prompts firms to expand overseas?
provision of incentives
When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits. This is most likely an example of a firm expanding overseas due to ________.
strategic alliances
Which of the following is the quickest and cheapest way to develop a global strategy?
Recruiting third-country nationals is a common aspect of the global staffing strategy.
Which of the following is true with regard to the global staffing approach?
foreign-exchange management
Which of the following would most likely be categorized as a global financial objective of an international firm?
matrix structure
Which organizational form is a hybrid structure with overlapping responsibilities?
polycentric
Which staffing approach will most likely be effective when implementing a global strategy of "acting local"?
third-country nationals
Who, among the following, when used to manage subsidiaries, usually brings more cultural flexibility and adaptability to a situation?
high; low
With a globalization strategy, the need for complex integrating mechanisms is ________, and in a multi-domestic strategy, the need is ________.
emerging market companies
Infosys, Lenovo, and Tata Motors are examples of ________.
ethnocentric staffing approach
Fred Sanders, an American, works as a manager at his firm's headquarters in New York. He recently learned that he has been assigned to manage the firm's subsidiary office in Tokyo, and he will be relocating to Japan within the next six weeks. Which of the following staffing approaches is being employed in this scenario?
comparative advantage
Futura-Core Technologies, an electronics manufacturing firm, has advantages in financial capability and sustainability, but a disadvantage in speed of innovation. It is also at a disadvantage relative to Core-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions. Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix?
global staffing approach
Given the generally accepted consensus that staffing, along with structure and systems, must "fit" the desired strategy, firms desiring a truly worldwide posture should adopt a(n) ________.
differences in national cultures
Globe Cars, a leading automobile ancillary firm in China, has decided to form a global alliance with Fulda, a German tire manufacturing company. Which of the following is a primary challenge that Globe Cars is most likely to face in this alliance?
involvement of greater risks
Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________.
domestic track records
Historically, personnel directors selected potential expatriates on the basis of a candidate's ________.
three
How many sets of financial statements from subsidiaries are usually required to reconcile an MNC's accounting statements?
the target country is similar to the home country
In a cross-border alliance, cultural differences can be overlooked when ________.
local managers
In a global geographic structure, decisions are primarily made by ________.
production; sales
In a global product division, each strategic business unit (SBU) is responsible for ________ and ________.
relocating operations around the world
In addition to the global war for talent, there are considerable strategic competitive challenges for firms. Which of the following is one such challenge?
finance
In most international organizations, decisions regarding ________ functions are centralized.
complementary products and skills
In order to minimize potential problems in alliances, companies should most likely choose partners with ________.
they are anxious to get into an attractive market
In spite of the potential problems with local partners, many firms rush the process of partner selection because ________.
the need for training is high
In the global stage of a firm's globalization, ________.
global functional structure
In which of the following are a firm's foreign operations integrated into the activities and responsibilities of each department to gain functional specialization and economies of scale?
global staffing approach
In which of the following staffing approaches, are the best managers recruited from within or outside of the company, regardless of nationality?
e-commerce enabler
NextLinx Corporation provides a wide range of strategic implementation services for small- and medium-sized organizations. It allows all trading partners to collaborate in a single online location, using the same information and processes. Therefore, NextLinx is an example of a(n) ________.
trade barriers
Offshoring provides the company with access to foreign markets while avoiding ________.
keep control of proprietary technology and processes
Opening its own subsidiaries in the host country may be better than contracting with an outside firm in the host country, if it is crucial for the firm to ________.
Employees at Organix complain that they are too bogged down with administrative tasks to focus on creating new products and concepts.
Organix Cosmetic Company manufactures all-natural cosmetics and skin-care products. Organix is based in the U.S. with international divisions located in Singapore and London. Executives at Organix are considering making a change to the firm's organizational structure. Which of the following best supports the argument that Organix should change its organizational structure?
amount of decision-making power that the joint venture holds
Organizational design as a mechanism for factoring international joint venture control refers to the ________.
target country has conflicting practices and systems
Overlooking cultural differences in cross-border alliances can create a negative impact when ________.
Panera Bread executives want fast access to the Asian market without a significant investment of capital.
Panera Bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. The company began in 1981 with stores primarily located along the east coast of the U.S. Since then, the firm has expanded to over 1,300 locations throughout the U.S. and Canada. The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following, if true, supports the argument that Panera Bread should expand into Asia through franchising?
Quality control is a high priority for Panera Bread.
Panera Bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. The company began in 1981 with stores primarily located along the east coast of the U.S. Since then, the firm has expanded to over 1,300 locations throughout the U.S. and Canada. The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following, if true, undermines the argument that Panera Bread should expand into Asia through franchising?
its own interests
Parent companies use the IJV control process in order to ensure that the management of the joint venture conforms to ________.
regiocentric staffing approach
Recruiting managers from Latin America for a position in Brazil is an example of ________.
integration and differentiation
Regardless of the stage of internationalization, a firm's structural choices always involve which two opposing forces?
multidomestic industries
Regional strategies are more appropriate than global strategies for firms that operate in ________.
allowance
Relocation expense is an example of a(n) ________.
switch from exporting to overseas manufacturing
Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to ________.
trade barriers
Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain?
network structure
Royal Phillips Electronics' structure would best be described as a(n) ________.
non-equity strategic alliance
Runnerz Inc., a leading manufacturing and retail company that designs and develops footwear and apparel, has signed a contract with a particular courier service for managing the delivery process. The courier service is required to deliver goods from the factory to the warehouse, to customers, and also to collect customer payments for the goods. This is a typical example of a(n) ________.
Sedona executives are prepared to give subsidiary managers significant autonomy.
Sedona Industries is a U.S. firm that manufactures high-quality handbags, luggage, and belts from its facility in Arizona. Sedona's products have been featured in various fashion magazines, and as a result, consumer demand has increased significantly. Currently, Sedona is organized as a domestic structure plus export department. Executives at Sedona believe the firm is ready to internationalize its operations, and they are considering various organizational structures. Which of the following best supports the argument that Sedona should reorganize into a domestic structure plus foreign subsidiary?
Sedona has a narrow spectrum of customers that it serves.
Sedona Industries is a U.S. firm that manufactures high-quality handbags, luggage, and belts from its facility in Arizona. Sedona's products have been featured in various fashion magazines, and as a result, consumer demand has increased significantly. Currently, Sedona is organized as a domestic structure plus export department. Executives at Sedona believe the firm is ready to internationalize its operations, and they are considering various organizational structures. Which of the following best supports the argument that Sedona should reorganize into a global functional structure?
host-family surrogate
Simon Parker, an American, works with a Houston-based MNC, Orpheus Inc. When he was sent to Africa to manage his company's newly-opened facility in Lagos, Nigeria, Simon was placed with Mr. Adeyami and his family as part of a familiarization program. Orpheus paid for this field experience known as ________.
exporting
Small firms typically begin their international involvement by ________.
joint venture
SoftCorp and TechGig, upcoming software companies in San Diego, have decided to create a new and independent telecommunications company, ST-source. Each parent firm has agreed to have 50 percent equity in the new company. This is an example of a(n) ________.
minority JV partner
Trout Corp., Kirgo Ltd., and Sturgeon Inc., three of the leading construction companies in the U.S., have decided to join hands and create a new cement manufacturing company. According to their agreement, Trout Corp. will have 50 percent equity, Kirgo Ltd. will have 20 percent equity, and Sturgeon Inc. will have 30 percent equity. In this given scenario, Sturgeon Inc. is referred to as a(n) ________.
globalization and localization
What are the two major variables that determine the structure and design of an organization?
environmental volatility
What is the greatest risk for firms that have structurally sophisticated global networks?
global geographic structure
What is the most common form of organizing foreign operations?
lack of differentiation and specialization for local markets
What is the primary disadvantage of rationalization?
global economic conditions
What led Samsung to reorganize in 2009?
family businesses
What was the origin of most emergent market companies?
Many multinationals wish to train their employees to bridge the divide between the firm's successful corporate culture and practices, and the local culture and work practices.
Which of the following is true with regard to training and compensating host-country nationals?
extending the expatriate's tour
Which of the following methods is used by many firms to reduce the overall costs of expatriate assignments?
providing domestic subsidies
Which of the following most likely encourages firms to localize?
subculture shock
Which of the following most likely occurs when a manager is transferred to another part of the country where there are significant cultural differences?
unified technology infrastructure
Which of the following most likely provides a strategic advantage during the implementation of a global alliance?
to gain rapid entry into a new and consolidating market
Which of the following motivates a company to form cross-border alliances?
matrix structure
Which of the following organizational structures is typical of most transnational companies?
staffing choices for top IJV positions
Which of the following primarily determines the extent of control exercised over an IJV by its parent company?
ownership of problems and visibility
Which of the following refers to a core concept of the Toyota Way?
addressing security and privacy concerns
Which of the following refers to a training priority for e-business development?
copyright protection
Which of the following represents government influence on IJVs?
the firm's strategy
Which of the following should ideally dictate the organizational structure and staffing needs of the firm?
It helps a firm gain an increase in efficiencies.
Which of the following statements is true of clustering?
The strategic formulation process is part of the strategic management process in which most firms engage, either formally or informally.
Which of the following statements is true of the strategic formulation process?
international joint venture
Which of the following strategies would most likely be used by a non-European company wanting to gain quick entry inside the European community?
domestic structure plus export department
Which of the following structures represents the most common way that small firms enter the global market?
GLOCAL
Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country?
transpatriate
Which of the following terms is increasingly replacing the term "expatriate" due to the global staffing approach?
guanxihu
Which of the following terms refers to a bond between specially connected firms that generates preferential treatment to members of the network?
strategic business unit
Which of the following terms refers to a self-contained business within a company with its own functional departments and accounting systems?
e-commerce enablers
Which of the following terms refers to company specialists who provide other companies with services such as Web site translation?
differentiation
Which of the following terms refers to focusing on and specializing in specific markets?
clustering
Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?
MIS adequacy
Which of the following terms refers to the ability to gather timely and accurate information necessary for international management, especially in less developed countries?
strategy
Which of the following terms refers to the basic means by which a company competes?
environmental assessment
Which of the following terms refers to the continuous process of gathering and evaluating information about variables and events around the world that may pose threats or opportunities to the firm?
indirect controls
Which of the following terms refers to the control of foreign operations through the use of reports, budgets, and financial controls?
integration
Which of the following terms refers to the coordination of markets?
knowledge management
Which of the following terms refers to the process by which the firm integrates and benefits from the experiences and skills learned by its employees?
transformational outsourcing
Which of the following terms suggests that global sourcing can produce gains in efficiency, productivity, quality, and profitability by fully leveraging talent around the world?
global strategic alliance
Which of the following types of alliances can be formed between a company and a foreign government?
culture
Which of the following variables is frequently overlooked when deciding on entry strategies and alliances, particularly when the target country is perceived to be similar to the home
management practices
Which of the following variables will most likely affect the appropriateness of monitoring systems?
regiocentric staffing approaches
Which of the following will most likely produce a specific mix of parent-country nationals, home-country nationals, and third-country nationals, according to the needs of the company?
Bird and Osland Model
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