MBA 500 2

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The following is not an example of risk factors for an MNC

Complying with contractual terms of agreements

A worldwide strategy based on cost leadership, differentiation, and, segmentation is referred to as the:

Economic imperative

. For a global retail company, a focused sale campaign on Christmas gift items would be effective in all of the company's markets.

False

Hofstede's research found that the national cultural values of employees have an insignificant impact on their organizational performance, and these values are easily changed by the organization.

False

In high-context societies, the succinct style of communication is very common.

False

In low-context societies, messages are often highly coded and implicit.

False

Organizational culture is complex and cannot be defined as a set of norms regulating the behavior of the employees of a firm.

False

The primary purpose of downward communication flow is to provide feedback, ask questions or obtain assistance from higher-level management.

False

The equity joint venture

Involves a financial investment by the MNC in a business enterprise with a local partner

The nonequity venture

Is characterized by one group merely providing a service for anothe

_____ reviews major political decisions that are likely to affect all business conducted in a particular country

Macro political risk analysis

China's government policies regarding investment in the telecommunications industry fall into the _____ political risk category.

Micro

A structure that is a combination of a global product, an area, or a functional arrangement is referred to as a(n) _____ organizational structure.

Mixed

According to the 2012 Transparency International Corruption Perceptions Index, which of the following is the least corrupt nation?

New Zealand

MNCs using the _____ approach to strategic planning are country-responsive; their approach is designed to protect local market niches

Political imperative

Global structures of MNCs come in three common type

Product, area, and functional

The approach to strategic formulation and implementation utilizing strategies of TQM to meet or exceed customers' expectations and continuously improve products and/or services is referred to as the

Quality imperative

TQM techniques range from traditional inspection and statistical quality control to cutting-edge human resource management techniques, such as

Self managing teams and empowerment

Which of the following is not a challenge of doing business in Russia?

Strong faith in government policies

Wholly owned subsidiaries, mergers and acquisitions, alliances and joint ventures, licensing agreements, franchising, and basic export and import operations are:

The most common entry approaches for international operations

Managers should concentrate on "building common ground—essentially, shared knowledge—across locations, so that employees working offshore can anticipate the actions and decisions of their onshore counterparts without the need for extensive discussion."

True

Regardless of the external environment or their national culture, managers and employees must understand and follow their organization's culture to be successful.

True

The instrumental style of communication is more commonly found in individualistic, low-context cultures such as the United States.

True

To manage a global team, international managers must take into consideration three factors: culture, communication, and trust.

True


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