International Management Exam 2

_____ are straight-line, one-factor projections from present to future.

Forecasts

_____ refers to a company establishing a new, wholly owned subsidiary from scratch where no previous facilities exist. http://glossary.reuters.com/index.php/Greenfield_Investment

Greenfield venture

_____ refers to buying goods and services from foreign sources and bringing them back into the home country

Importing

Which of the following statements holds true for the World Customs Organization (WCO)?

It created a framework that calls for cooperation between the customs administrations of different countries.

T or f A company should invest equally in training for all jobs rather than disproportionately investing more in developing people in the key strategic jobs on which the company's success is most dependent.

False

T or f A sense of ethics is determined by a number of social, cultural, and religious factors; this sense influences us beginning early in adulthood.

False

T or f According to Geert Hofstede, values are mostly conscious

False

T or f One disadvantage of partnering is the possibility that the partner's goals differ from the firm's goals.

False

T or f The customs invoice acts as proof that the shipment was made and that the goods have been received

False

T or f The sight draft is payable at a later time, typically 30, 60, 90, or 120 days in the future as specified by the draft.

False

T or f Under a licensing agreement, the licenser is normally paid a royalty on each unit produced and sold.

False

Which of the following is true of acquisitions?

The acquiring company gains control of another firm by purchasing its stock

T or f An organization, when it is expanding in a foreign country, chooses to enter it through a domestic partner. This would improve the chances of success for the organization.

True

T or f Developing an effective international workforce is much more difficult for a competitor to emulate than buying technology or securing capital.

True

T or f Diversity in a group in terms of expertise, gender, age, thought, and background, can help to avoid problem of groupthink.

True

T or f Ethics is a branch of philosophy that seeks to address questions about morality.

True

T or f Managers also need to take into consideration the macroeconomic factors that will have near-term and long-term effects on the success of their strategy.

True

T or f Most companies consider the market-entry option of licensing to be a high-risk option because of the heavy upfront investment.

True

T or f Product differentiation plays a critical role for companies entering a new market.

True

T or f Tests that are given to candidates as a part of the evaluation process must be related to the job skills required.

True

T or f The "make" decision is useful when it is too difficult to predict exactly which skills will be needed in the future.

True

T or f The draft that allows a period of 120 days to pay is very attractive for the importer because it allows time for the importer to sell the goods before having to pay for them.

True

T or f The employee-performance aspects of the Balanced Scorecard analyze employee capabilities, satisfaction, retention, and productivity.

True

T or f The internet has made exporting easier as even small firms can access critical information about foreign markets, examine a target market, research the competition, and create lists of potential customers.

True

T or f The more similar markets in different regions are, the lesser the pressure for an industry to globalize.

True

T or f The new principles of management require a focus on outcomes and results, not just numbers and compliance

True

T or f The study of cross-cultural analysis incorporates the fields of anthropology, sociology, psychology, and communication.

True

T or f Understanding culture is important in determining the success of a business because different cultures have business practices, communication, and management styles that are different from those to which you are accustomed.

True

True or false A PESTEL analysis helps managers gain a better understanding of the opportunities and threats they face

True

Foreign Corrupt Practices Act refers to the:

U.S. law that specifically bans any form of bribery.

_____ refer to the forces of change whose direction and pace is largely unknown.

Uncertainties

Which of the following questions would help an organization determine the favorability of the legal factors for business expansion in a PESTEL analysis?

What are the country's foreign-trade regulations?

Which of the following questions would help an organization determine the favorability of the sociocultural factors for business expansion in a PESTEL analysis?

What are the current exchange rates between critical markets?

Which of the following questions would help an organization determine the favorability of the economic factors for business expansion in a PESTEL analysis?

What are the local taxation policies? How do these affect your business?

Which of the following does the term Corporate Social Responsibility relate to?

environmental practice ethical conduct wellbeing of employees community investment All of the above

Normative ethics involves:

establishing moral standards that regulate right and wrong conduct.

The view that a person's own culture is central and other cultures are measured in relation to it is referred to as:

ethnocentrism.

Companies employ _____ to understand the latent, unarticulated needs of local consumers.

ethnographers

A(n) _____ is an independent company that performs the duties that a firm's own export department would execute.

export management company

The term _____ refers to a situation in which an exporter sells a time draft at a discount to an intermediary (often a bank) that will pay the exporter immediately and then collect the full amount from the importer at the later date.

factoring

In Swedish cultures, both genders swap roles and the focus is on quality of life, service, and independence. Sweden serves as an example of a(n):

feminine culture.

In human resources management (HRM), "buying" an employee means:

hiring an employee who has all the necessary skills and experience to fulfill the role from day one.

In cultures where organizations are seen as "guardians," any effort to lay off employees:

is considered unethical.

Achieving cultural diversity is a talent-management practice that is important for an organization because:

it brings about open-mindedness across cultures.

Developing global leaders is a talent-management practice that is important for an organization because:

it gives the employees exposure to international experience through job rotation.

The most successful organizations manage and measure HR performance in terms of:

its strategic impact on the organization's functioning.

Consumer safari refers to the initiatives taken by Unilever executives to spend a day with consumers in their homes to:

understand how they use products.

Perceptual ability forms one of the key characteristics that decide the ability of a manager to succeed as an expatriate. Perceptual ability refers to the ability to:

understand why people of other countries behave the way they do.

Which of the following is true about a project team?

A project team usually meets on a part-time rather than a full-time basis and deals with specific issues.

_____ is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers, and manages the selected process based on defined and measurable performance criteria.

Business-process outsourcing

_____ refers to the measure of the impact that activities like transportation and manufacturing have on the environment, especially on climate change.

Carbon Footprint

The GDP of France is 2.113 trillion USD whereas Sierra Leone's GDP is approximately 4.812 billion USD. According to the CAGE framework, this is a case of:

Economic distance

Which of the following statements is true about individualistic cultures?

Individual effort is appreciated and applauded.

_____ refers to people's tendency to take care of themselves and their immediate circle of family and friends, perhaps at the expense of the overall society

Individualism

Hofstede added a sixth dimension to the list of value dimensions, which is:

Indulgence

Which of the following statements holds true for pay for performance?

It refers to a form of pay that is tied directly to an individual's performance in meeting specific business goals or objectives.

Which of the following statements holds true for "countertrade"?

It refers to a situation where companies trade goods and services for other goods and services.

_____ refers to a contractual, strategic partnership between two or more separate business entities to pursue a business opportunity together.

Joint venture

The _____ is a legal document issued by a bank at the importer's (or buyer's) request wherein the importer promises to pay a specified amount of money when the bank receives documents about the shipment.

Letter of credit

_____ refers to the granting of permission by one party to another party to use intellectual property rights, such as trademarks, patents, brand names, or technology, under defined conditions without providing any other service or product.

Licensing

_____ is the ethical theory, which investigates where our ethical principles come from, and what they mean

Metaethics

In Japan, managers are trained using the _____ in order to gain experience within the company.

Rotational

_____ is a strategic-management tool that helps an organization take stock of its internal characteristics and assess the external environmental conditions.

SWOT analysis

T or F Culture influences communication and, therefore, affects business if one is sourcing from different countries.

True

T or F In theory, most global firms have clear guidelines articulating antidiscrimination policies whereas in reality, they routinely self-censor.

True

A(n) _____ is a transaction in which a firm gains control of another firm by purchasing its stock, exchanging the stock for its own, or, in the case of a private firm, paying the owners a purchase price.

acquisition

Cultural toughness forms one of the key characteristics that decides the ability of a manager to succeed as an expatriate. Cultural toughness refers to the ability to:

adjust to a particular posting given the culture of the assignment's country.

Workforce Scorecard refers to the application of the _____ concept to an organization's human capital to identify and measure the behaviors, skills, mind-sets, and results required for the workforce to contribute to the company's success

balanced scorecard

At-will employment refers to a doctrine that stipulates that a contract of employment:

can be terminated by either the employer or the employee at any time for any legal reason.

Human capital refers to the

collective sum of the attributes, life experiences, knowledge, inventiveness, energy, and enthusiasm that a company's employees choose to invest in their work

When firms operate in a country, they have to assess how new employees will fit into their respective _____, which usually emphasize creativity, innovation, and teamwork, balanced with individual accomplishment, and a keen sense of privacy.

corporate culture

Corporations should prepare for disruptions to business by doing _____?

crisis management

Americans use the English language as the primary means of communication whereas Asian Indians have a host of local languages that also serve as the means of communication. This difference between the two countries would be categorized as:

cultural distance.

Firms export mostly to countries that are close to their facilities because:

of lower transportation costs.

In _____ the company delegates an entire process (e.g., accounts payable) to an outsource vendor.

outsourcing

In low-context cultures,

people tend to be explicit and direct in their communications.

Government policies on foreign-trade regulation and taxation constitute the _____ factors that have a significant influence on business.

political

A principle from manufacturing that works well in talent management is:

running smaller batch sizes

Protecting a corporation from virtual terrorism should include all of the following except:

separate planning and preparation from government entities.

The term "national culture" refers to:

the culture of a nation wherever it exists irrespective of boundaries.