Chapter 17 INT

83. Which of the following practices, with respect to motivating sales personnel, is most common in relationship-oriented countries like Japan? A. Companies lay greater emphasis on incentives that are based on individual performance. B. Companies do not allow local managers to decide the mix between base and incentive pay. C. Commissions are measured by sales revenues generated by each employee. D. Companies are not very tolerant of poor performers and fire them immediately. E. Companies motivate sales representatives through frequent interaction with supervisors.

Companies motivate sales representatives through frequent interaction with supervisors.

81. In the context of global compensation, which of the following strategies should be practiced? A. A similar framework should be created for jobs with different responsibilities. B. The support of senior sales executives need not be sought before taking action. C. Local managers should not decide the mix between base and incentive pay. D. Consistent communication and training themes should be used worldwide. E. The incentive plan should be designed centrally and dictated to local offices.

Consistent communication and training themes should be used worldwide.

75. Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan? A. Emphasis on paternalism. B. High corruption levels. C. Practice of cultural chauvinism. D. Democratic form of government. E. Encouraging individualism.

Emphasis on paternalism.

58. A disadvantage of hiring local nationals is the tendency of headquarters personnel to ignore their advice. Which of the following is most likely to be the reason for this tendency? A. Foreign nationals are not keen on keeping relationships at the home office cordial. B. Foreign nationals lack the understanding of how home-office politics work. C. Foreign nationals have a good grasp of the local culture and prevalent practices. D. Foreign nationals cannot build a close contact with subordinates and customers. E. Foreign nationals have superior technical expertise which makes people at the headquarters insecure.

Foreign nationals lack the understanding of how home-office politics work.

34. Countries such as Germany allow for greater use of expatriates in international sales forces. Which of the following is most likely to be the reason for this? A. Germany is a member of the World Trade Organization. B. Germany is a relationship-oriented culture. C. The German language is easy to master. D. Germany is an information-oriented culture. E. Germany is a member of the European Union.

Germany is an information-oriented culture.

74. Considering the specific characteristics of Japan's culture, which of the following strategies would be most successful in motivating employees in Japanese organizations? A. Individual commission systems B. Group bonus schemes C. Company cars D. Birthday gift vouchers E. Best employee awards

Group bonus schemes

57. Which of the following is the main disadvantage of hiring local nationals in the sales force? A. Headquarters personnel tend to ignore the advice of local nationals. B. Most local nationals turn out to be costlier in the long run. C. Poaching of experienced personnel by competitor companies increases. D. Cultural differences lead to communication issues. E. National interests conflict with the corporate strategy.

Headquarters personnel tend to ignore the advice of local nationals.

44. Which of the following is a strategy that international companies use to encourage sales personnel to accept foreign assignments? A. International experience is considered important to join top management. B. It is made mandatory for all sales personnel to take up expatriate positions. C. A part of the headquarters of the company is set up at the foreign location. D. A support team along with the expatriate manager is shifted to the foreign location. E. Legal obligations are imposed on the expatriate sales representatives.

International experience is considered important to join top management.

68. When hiring new personnel for international marketing, which of the following is considered to be the best way to assess the traits necessary for success? A. Paper-and-pencil ability tests. B. Interviews and role-playing exercises. C. Biographical information. D. Checking references. E. Handwriting analysis.

Interviews and role-playing exercises.

52. Which of the following is a disadvantage of teams managed by virtual expatriates? A. It is difficult to build a close contact with subordinates and customers. B. The cost involved in an actual executive move is excessive. C. The risk of losing visibility at corporate headquarters is very high. D. Virtual expatriates lack the understanding of how home-office politics influence decisions. E. The personnel at the headquarters tend to ignore the advice of the virtual expatriates.

It is difficult to build a close contact with subordinates and customers.

70. Which of the following is the reason for the fact that continual training is more important in foreign markets than in domestic ones? A. Slow adaptation of foreign markets to innovative products. B. Technological inferiority of domestic cultures. C. The need to establish the superiority of domestic cultures. D. Lack of technical knowledge among foreign salespersons. E. Lack of routine contact with the parent company.

Lack of routine contact with the parent company.

42. Which of the following is a disadvantage associated with a sales force comprising expatriate salespeople? A. Adverse effect on the prestige of the product. B. Deterioration of product quality. C. Lack of technological expertise. D. Inadequate knowledge of the company. E. Large cultural barriers.

Large cultural barriers.

80. Which of the following is true of sales compensation practices across the globe? A. Most companies in Japan have adopted the U.S. system with its emphasis on commissions based on individual performance. B. Government intervention in pay determination aimed at leveling pay scales, is gaining popularity in European countries. C. Most multinational companies describe their sales compensation plans as global in nature. D. The International Labor Organization plays a key role in determining compensation practices worldwide. E. Most companies establish sales compensation practices locally either at the country or regional levels.

Most companies establish sales compensation practices locally either at the country or regional levels.

88. Which of the following factors differentiates companies with the least amount of returnee attrition from those with the highest attrition? A. Specialized expatriate department. B. Personal career planning for expatriates. C. Continued cultural training. D. Increased compensation. E. Family migration planning.

Personal career planning for expatriates

61. Which of the following is considered to be the most common job in the United States despite being viewed negatively? A. Construction worker B. Truck driver C. Office manager D. Personal selling E. Teaching

Personal selling

79. In the context of designing compensation systems, the program element most often determined at the global level is: A. Program Design Principles B. Pay Mix C. Job Grades D. Formula Mechanics E. Performance Measures

Program Design Principles

32. Which of the following is the final link in the culmination of a company's marketing and sales efforts? A. Chairperson B. Marketing manager C. Sales representative D. General manager E. Accountant

Sales representative

73. In the context of the rewards from work, Japanese and American salespersons are similar barring one aspect which the Japanese rate as more important than their American counterparts. Identify this aspect. A. Job security B. Promotion C. Accomplishments D. Social recognition E. Personal growth and development

Social recognition

33. In the context of designing an international sales force, which of the following is true of information-oriented cultures? A. They require the most complete local knowledge possessed only by natives. B. Personal selling has to be localized for even the most global of corporations. C. People belonging to such cultures are hostile toward third-country nationals. D. Such cultures allow for greater use of expatriates in the sales force. E. Virtual expatriates are more efficient in selling consulting services in these countries.

Such cultures allow for greater use of expatriates in the sales force.

51. From an international firm's perspective, which of the following is an advantage associated with virtual assignments? A. Sales personnel can avoid health risks involved in flying frequently to foreign countries. B. Customer relationship structures may be improved due to direct customer interaction. C. The extra expense involved in an actual executive move may be avoided. D. Problems related to low morale of personnel due to living in hotels can be avoided. E. Misunderstandings due to lack of cultural skills may be avoided.

The extra expense involved in an actual executive move may be avoided.

82. Unlike the Japanese, the American sales managers do not have to worry about the problem of motivating poor performers. Which of the following is the reason for this situation? A. The group incentive system balances pay differences and thus is motivating enough. B. Companies are more focused on long-term loyalty and are willing to compromise on performance initially. C. Sales personnel are shifted to areas where their performance levels can meet expectations. D. The system of peer-mentoring takes care of the progress of low performers. E. The team usually does not have any low performers as they either quit or are fired.

The team usually does not have any low performers as they either quit or are fired.

50. Which of the following is an advantage of virtual expatriates? A. They can bond well and work better with their subordinates in the foreign country. B. They can establish closer relationships with their customers in the foreign country. C. Their families do not have to be uprooted from their home country. D. They possess complete local knowledge about cultural practices in the foreign country. E. They can avoid cross-cultural communications problems with their foreign colleagues.

Their families do not have to be uprooted from their home country.

64. Which of the following is true of third country-nationals? A. U.S. firms have to pay double tax when hiring them. B. They are local nationals who work for a foreign company. C. They work at the company's headquarters and are located in their home country. D. They manage their foreign offices from their home country. E. Their nationality has little to do with where they work or for whom.

Their nationality has little to do with where they work or for whom

43. Why are third-country nationals sought by American companies for their international sales forces? A. They transcend legal and cultural barriers. B. They are knowledgeable about a country's business structure. C. They are able to speak several languages. D. They cost less to maintain than a staff of expatriates. E. They can lead a company better through unfamiliar referral networks.

They are able to speak several languages.

59. In the context of recruiting marketing and sales personnel, which of the following is true of local nationals? A. They are not keen on maintaining a cordial relationship at the home office. B. They lack the knowledge of local culture and prevalent practices. C. They are better able to lead a company through the maze of unfamiliar referral networks. D. They do not communicate with subordinates and customers directly. E. They are expatriates from their own countries working for a foreign company in a third country.

They are better able to lead a company through the maze of unfamiliar referral networks.

55. Which of the following is an advantage of hiring local nationals in the sales force? A. They are more efficient in communicating with and influencing headquarters' personnel. B. They are more knowledgeable about a country's business structure and systems. C. They are more knowledgeable of the company and its product line. D. They are likely to have superior technical expertise. E. They are less likely to accept any form of bribe.

They are more knowledgeable about a country's business structure and systems.

56. Which of the following is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates? A. They are more efficient in communicating with and influencing headquarters' personnel. B. They cost the firm less with respect to maintenance. C. They are more knowledgeable about the company and its product line. D. They have greater technical expertise. E. They are less likely to accept any form of bribe.

They cost the firm less with respect to maintenance.

47. Which of the following best defines a virtual expatriate? A. They can easily transcend the legal and cultural barriers of the assignment country. B. They lack an understanding of how home-office politics influences decision making. C. They work abroad in one country after another for the greater part of their career. D. They are expatriates from their own countries working for a foreign company in a third country. E. They manage operations in foreign countries but do not move there.

They manage operations in foreign countries but do not move there.

65. Which of the following is the most important quality that a recruiter should consider while hiring marketing personnel? A. They should have little cultural empathy as this might distract them from their main purpose. B. When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market. C. They should be able to represent a culturally superior image of their country and its products. D. They should be hypersensitive to the behavioral variations in different countries. E. They should possess a considerable breadth of knowledge of many subjects both on and off the job.

They should possess a considerable breadth of knowledge of many subjects both on and off the job.

49. Which of the following is true of virtual expatriates? A. They stay in hotels, make long visits to the foreign country to which they have been assigned, and maintain their families at home. B. They are expatriates working in a foreign country for a short period of a year. C. They are expatriates from their own countries working for a foreign company in a third country. D. They are essentially professional expatriates, working abroad in country after country. E. They are usually more knowledgeable about the foreign country's business structure and systems.

They stay in hotels, make long visits to the foreign country to which they have been assigned, and maintain their families at home.

45. Which of the following is a characteristic of a professional expatriate? A. They work abroad for a period of one month and then return to the home office. B. They work for a foreign company in a third country for a short period. C. They work abroad in country after country for the greater part of their careers. D. They work in their home branches for most of their careers. E. They manage operations in other countries but do not move there.

They work abroad in country after country for the greater part of their careers.

62. _____ are expatriates from their own countries working for a foreign company in another country. A. Long-term virtual expatriates B. Native salespeople C. Third-country nationals D. Short-term virtual expatriates E. Local nationals

Third-country nationals

86. Which of the following is the single most important reason for expatriate dissatisfaction? A. Unsuccessful family adjustment. B. Cultural conflict in the foreign country. C. Non-cooperation of foreign colleagues. D. Communication issues with home-country headquarters. E. Redundant skills in a foreign country.

Unsuccessful family adjustment.

87. Which of the following is a reason for an expatriate's failure to function effectively in a foreign assignment? A. Differing customer expectations on product features. B. Lack of personal career planning. C. Reduced compensation and benefits. D. Unsuccessful family adjustment. E. Interference from work councils.

Unsuccessful family adjustment.

39. Which of the following is true of an expatriate sales force? A. In relationship-based cultures, an expatriate sales force proves to be most efficient. B. An expatriate sales force is unsuitable when a company wants to sell high-technology products. C. An expatriate sales force is found to be lacking in knowledge regarding the product line of the company. D. Information-oriented cultures do not respond favorably to an expatriate sales force. E. When selling requires an extensive background of information, an expatriate sales force is the best choice.

When selling requires an extensive background of information, an expatriate sales force is the best choice.

40. In which of the following situations is an expatriate sales force most likely to have an advantage over a native sales force? A. When selling consulting services. B. When selling in relationship-oriented countries. C. When the product caters to a niche market. D. When the product is highly technical. E. When the product is global in nature.

When the product is highly technical.

89. In the context of international marketing, most expatriate failures are caused by a lack of: A. management skills. B. technical skills. C. an understanding of cultural differences. D. knowledge of the product line. E. knowledge of the company.

an understanding of cultural differences.

76. Nontaxable perks such as a company vehicle given to an expatriate is an example of a(n): A. overseas premium. B. family compensation. C. displacement allowance. D. fringe benefit. E. separation allowance.

fringe benefit.

66. The marketer who expects to be effective in the international marketplace should: A. be antagonistic toward other cultures. B. not let the local culture influence their decisions. C. practice cultural chauvinism. D. not let market behavior influence their decisions. E. have a positive outlook on an international assignment.

have a positive outlook on an international assignment.

84. In the context of evaluating and controlling sales representative, the primary control tool used by American sales managers is the: A. threat of termination. B. quota system. C. incentive system. D. attraction of a foreign assignment. E. threat of foreign postings.

incentive system.

71. The training of foreign employees is likely to be most effective when: A. a standard method is used to ensure uniformity. B. it is tailored to the recipients' ways of learning. C. national differences are ignored during motivational sessions. D. the superiority of their culture is emphasized over others. E. it is different from the familiar ways of communication.

it is tailored to the recipients' ways of learning.

36. In countries like Japan, a sales force is likely to be most effective if it consists mostly of: A. professional expatriates. B. local nationals. C. virtual expatriates. D. third world nationals. E. expatriates from Asian countries.

local nationals.

46. Norman, a German national, works as a sales manager for Black Oil Corporation in the Middle-East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information we can say that Norman is a: A. virtual manager. B. virtual expatriate. C. third-country national. D. professional expatriate. E. native salesperson.

professional expatriate.

85. Qualified and ambitious sales personnel refuse to take up foreign assignments for fear of hampering their career development. This "out of sight, out of mind" fear is most closely linked to the problems of: A. conflict of interests. B. acculturation. C. skill redundancy. D. variable compensation. E. repatriation.

repatriation.

77. Overseas premiums that are paid to the family of expatriates during short-term assignments if they do not relocate to the foreign country are called: A. resettlement claims. B. pension plans. C. displacement reserves. D. official benefits. E. separation allowances.

separation allowances.

60. In relationship-oriented cultures such as France, Mexico, and Japan, sales representatives: A. are available only during the peak hiring season. B. tend to be on the bottom rung of the social ladder. C. are better paid than their U.S. counterparts. D. lack proper knowledge of their culture. E. are respected and held in high esteem.

tend to be on the bottom rung of the social ladder.

67. Cultural empathy involves: A. being subservient to a superior culture. B. the ability to understand another culture and not be antagonistic. C. the belief that the people of inferior cultures should be enlightened. D. the attitude that one's own culture is superior to others. E. being hostile to one's own culture and adopting a new culture.

the ability to understand another culture and not be antagonistic.

69. Japanese sales representatives are most satisfied with their jobs when: A. their values are consistent with those of their company. B. they receive high salaries and many perks. C. they are better educated than their colleagues. D. their technological knowledge is superior to that of others. E. they do not have to travel too much.

their values are consistent with those of their company.

54. In the context of recruiting sales and marketing personnel for an international sales force, there is a clear biased in favor of the locals. The reason for this is most likely that: A. they transcend both cultural and legal barriers. B. they have greater technological expertise than expatriates. C. they are more knowledgeable and experienced as compared to expatriates. D. they have a better understanding of home-office politics. E. they are less likely to accept bribes as compared to expatriates.

they transcend both cultural and legal barriers.

63. David is a Canadian national who works for a U.S. company in Japan. David may be considered to be a _____. A. long-term virtual expatriate B. native salesperson C. third-country national D. short-term virtual expatriate E. local national

third-country national

48. George, an American citizen, works as the sales manager at Blue Inc. He is posted at the company headquarters in the U.S. and manages operations in China. He makes long visits to conduct business meetings with his colleagues working in China. George may be considered to be a: A. repatriate. B. virtual expatriate. C. third-country national. D. professional expatriate. E. local sales manager.

virtual expatriate

53. The difference between professional expatriates and virtual expatriates is that: A. professional expatriates can avoid misunderstandings that arise from cross-cultural communications. B. for virtual expatriates, building a close contact with customers is much easier. C. professional expatriates do not incur any extra expense to the company. D. for virtual expatriates, establishing a good working relationship with subordinates is much easier. E. virtual expatriates work from their home branch and do not relocate to the assignment country.

virtual expatriates work from their home branch and do not relocate to the assignment country.

37. A multinational company, with its headquarters in the U.S., wants to sell a new high-technology product in foreign markets. For effective selling, the sales force for this company should consist mostly of: A. local nationals. B. college recruits. C. temporary personnel. D. American expatriates. E. veterans.

American expatriates.

72. Which of the following is likely to be most effective in making home-office personnel aware of the problems of foreign operations? A. Cross-cultural training. B. Global selling techniques. C. Advanced technical skills. D. Telecommuting and teleconferencing. E. Email etiquettes.

Cross-cultural training.

35. In the context of designing an international sales force, which of the following is true of Japan? A. Japan has an information-oriented culture. B. Japan allows for greater use of expatriates. C. In Japan, personal selling need not be localized. D. Japan is not a member of World Trade Organization. E. In Japan, complete local knowledge is important for salespeople.

In Japan, complete local knowledge is important for salespeople.

90. Which of the following is a trait of a person with good cultural skills? A. They have a clear set of principles and do not tolerate ambiguity. B. They are proud of their culture and practice cultural chauvinism. C. They monitor the behavior of their employees and remain judgmental. D. They convey a sincere interest in people and their culture. E. They do not allow their culture and values to influence one's judgment.

They convey a sincere interest in people and their culture.

41. Which of the following is one of the advantages of a sales force consisting of expatriate sales representatives? A. They possess greater technical training. B. They transcend cultural and legal barriers. C. They cost less to maintain in a foreign location. D. The cultural gap can be easily narrowed. E. They have a better understanding of distribution channels.

They possess greater technical training.

78. Which of the following agencies or bodies is actively involved in setting rules about compensation companywide in Europe? A. Pension committees. B. Work council. C. The World Health Organization. D. The European Union. E. The World Trade Organization.

Work council.

38. The largest personnel requirement for international marketing for most companies is in the: A. management team. B. finance department. C. information technology team. D. advertising department. E. sales force.

sales force.