MGMT Exam 2 Chapters 7&8

b innovation

22. Organization _______ is the successful implementation of creative ideas in organizations a change b innovation c creativity d development e deployment

b experiential

54. The _____ approach to innovation assumes that innovation is occurring within a highly uncertain environment. a. compression b. experiential c. technological substitution d. generational change e. technological disruption

d Exporting

54. _____ occurs when a company sells domestically produced products to customers in foreign countries. a. Direct foreign investment b. Franchising c. Licensing d. Exporting e. Cooperative contract

b cooperative contract

56. A(n) _____ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country. a. exporting agreement b. cooperative contract c. joint venture d. strategic alliance e. free-trade agreement

a easy access to growing markets

71. The most important factor in an attractive business climate is the _____. a. easy access to growing markets b. presence of established markets c. high political risks d. limited infrastructure e. high competition among companies

c cycle

23. A technology _____ begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology. a. process b. lockout c. cycle d. hierarchy e. continuum

b organization innovation

25. Parkline is a popular brand of formal wear. The company decided on a new marketing strategy that actually involved its target audience participating in the campaign. This included an online virtual reality game that was highly popular among the audience, bringing the brand mass attention. Following this, their sales skyrocketed. This is an example of _____. a. corporate entropy b. organizational innovation c. assembly networking d. organizational networking e. reverse engineering

d S-curve

26. Nearly all technology cycles follow the typical _____ pattern of innovation. a. W-curve b. contingency c. bell-shaped d. S-curve e. lockout

d at both the beginning and end of the cycle

27. In the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance _____. a. early in the cycle b. throughout the cycle c. halfway through the cycle d. at both the beginning and end of the cycle e. in the maturity stage of the cycle

b at the midpoint of the cycle

28. In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance _____. a. during the lockout stage of the cycle b. at the midpoint of the cycle c. only at the end of the cycle d. throughout the cycle e. only at the beginning of the cycle

a It is the buying and selling of goods and services by people from different countries

28. Which of the following is true of global business? a. It is the buying and selling of goods and services by people from different countries. b. It is the buying and selling of goods and services among different states of a country. c. It is the setting up of a factory in a country other than the parent country. d. It is the buying and selling of goods and services within the states of a country. e. It is the setting up of another factory in the parent country.

c at the end of the innovation cycle

29. When significant improvements in performance can only be gained through radical new designs or new performance-enhancing materials, it is likely that a company is _____ in the S-curve pattern of innovation. a. at its breakeven point b. at the problem identification stage of the innovation cycle c. at the end of the innovation cycle d. at either the beginning f the innovation cycle e. at the beginning of its maturity stage

b direct foreign investment

30. _____ is a method in which a company builds a new business or buys an existing business in a foreign country. a. Strategic alliance b. Direct foreign investment c. Global new venture d. Joint venture e. Direct exporting

d Technology

30. _____ is defined as the knowledge, tools, and techniques used to transform inputs into outputs. a. Deskilling b. Entropy c. Synergy d. Technology e. Creativity

d knowledge, tools, and techniques

31. A technology cycle occurs whenever there are major advances or changes in the _____ in a field or discipline. a. human, technical, and conceptual skills needed b. structure or personnel requirements c. internal resource environment d. knowledge, tools, and techniques e. way information is retrieved

d innovation streams

32. Over the long run, the best way for a company to sustain competitive advantage is to create _____ year after year. a. innovation maps b. entropies c. slack resources d. innovation streams e. cognitive dissonances

e tariff barriers and non tariff barriers

33. The two general kinds of trade barriers are _____. a. government import standards and industry import standards b. qualitative and quantitative barriers c. voluntary and involuntary barriers d. nationalistic and geocentric barriers e. tariff barriers and nontariff barriers

b foreign competition

34. Protectionism is the use of trade barriers to protect local companies and their workers from _____. a. international unions b. foreign competition c. trademark infringements d. patent violations e. copyright violations

e Discontinuous change

35. ____ is the phase of a technology cycle characterized by technological substitution and design competition. a. Technological adaptation b. Technological lockout c. The technological growth stage d. Change substitution e. Discontinuous change

a tariff

36. A(n) _____ is a direct tax on imported goods. a. tariff b. nontariff barrier c. trade roadblock d. boycott quota e. import subsidy

b non tariff barrier

38. A _____ is a nontax method of increasing the cost or reducing the volume of imported goods. a. tariff b. nontariff barrier c. trade roadblock d. risk-aversive boycott e. subsidy quota

a technological substitution

38. _____ occurs when customers purchase new technologies to replace older technologies. a. Technological substitution b. Entropy c. Incremental environmental change d. Organizational synergy e. Transition management

d subsidies

40. _____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries. a. Quotas b. Voluntary export restraints c. Cooperative contracts d. Subsidies e. Tariffs

c discontinuous change

41. During the last decade, there was an increase in sales in CDs, DVDs, pen drives, and portable hard discs, as people sought to replace their obsolete floppy discs. In terms of the technology cycle, this is an example of _____. a. adaptive change b. design iteration c. discontinuous change d. dominant design e. innovative lockout

e quota

41. To protect its farmers, Japan put limitations on the amount of mushrooms and leeks that could be imported from China. This limitation is an example of a(n) _____. a. tariff b. voluntary import restraint c. subsidy d. agricultural import standard e. quota

b Design competition

42. Which of the following is a characteristic of discontinuous change? a. Synergy b. Design competition c. Incremental change d. Entropy e. Innovative reciprocity

c eliminated tariffs in ten specific industries

42. ​The General Agreement on Tariffs and Trade (GATT): a. ​replaced the United Nations court system. b. ​eliminated government subsidies. c. ​eliminated tariffs in ten specific industries. d. ​operated in a fashion similar to the Chamber of Commerce. e. ​imposed tariffs on all countries.

c world trade organization

43. The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the _____. a. Maastricht Treaty of Europe b. North American Free Trade Agreement c. World Trade Organization d. Asia-Pacific Economic Cooperation e. Asian Free Trade Arrangement

c General Agreement of Tariffs and Trade

44. The acronym GATT stands for the _____. a. Global Agreement on Temporal Trade b. Governing Agreement on Trade and Transactions c. General Agreement on Tariffs and Trade d. Government Aid for Trade and Transactions e. Global Arrangement for Trade and Taxes

d protected intellectual property

45. The General Agreement on Tariffs and Trade (GATT) _____. a. increased both tariffs and nontariff barriers b. removed limits on government subsidies c. imposed tariffs on specific industries d. protected intellectual property e. increased tariffs by 40 percent on average worldwide

d technological discontinuity

45. The phases of a technology cycle within an innovation stream begins with: a. incremental change. b. discontinuous change. c. dominant design. d. technological discontinuity. e. design iteration.

d it solves a practical problem

46. A technology can become a dominant design if: a. it resembles an old technology. b. it is extensively used by a small number of people. c. it is the most expensive technology in the market. d. it solves a practical problem. e. it is not considered as a market standard.

a by building a creative work environment

47. How can companies foster the generation of new ideas? a. By building a creative work environment b. By using micromanagement techniques c. By adopting a centralized organizational structure d. By making tasks less challenging for employees e. By incorporating organizational impediments

a Maastricht Treaty

47. The _____ created a regional trading zone in Europe. a. Maastricht Treaty b. Free Trade Agreement c. Global Agreement for Transactional Trading d. Asia-Pacific Economic Cooperation e. Association of Southeast Asian Nations

d North American Free Trade Agreement

48. The _____ has liberalized trade between countries so that business can plan for one market rather than for three separate markets. a. Maastricht Treaty of Europe b. Association of Southeast Asian Nations c. Asia-Pacific Economic Cooperation d. North American Free Trade Agreement e. General Agreement on Tariffs and Trade

a creative work environments

48. _____ are defined as workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. a. Creative work environments b. Centralized work environments c. Homogeneous work environments d. Bureaucratic work teams e. Hierarchical work stations

b global consistency

50. A multinational company that acts with _____ has offices, manufacturing plants, and distribution facilities in different countries that are run based on the same rules, guidelines, policies, and procedures. a. policy certainty b. global consistency c. global adaptation d. global certainty e. regiocentrism

d freedom

50. Which of the following is a component of a creative work environment? a. Homogeneity b. Job specialization c. Centralization d. Freedom e. Micromanagement

d global consistency

51. In a multinational firm, managers at company headquarters value _____ because it simplifies decisions. a. local consistency b. local adaptation c. global adaptation d. global consistency e. domestic adaptation

c absence of organizational impediments

51. Which of the following is a component of a creative work environment that encourages creativity? a. Easy work b. Micromanagement c. Absence of organizational impediments d. Absence of heterogeneous work groups e. Absence of supervisors

a phase model of globalization

52. Most companies have used the _____ to successfully enter foreign markets. a. phase model of globalization b. global new venture technique c. ripple method d. market echo approach e. guerrilla approach

c Exporting; cooperative contracts; strategic alliances; wholly owned affiliates

53. Which of the following represents the correct sequence of the phase model of globalization? a. Exporting; wholly owned affiliates; cooperative contracts; strategic alliances b. Exporting; direct investment; strategic alliances; job ventures c. Exporting; cooperative contracts; strategic alliances; wholly owned affiliates d. Exporting; strategic alliances; cooperative contracts; wholly owned affiliates e. Exporting; job ventures; strategic alliances; direct investment

b Franchising and licensing

57. _____ are two kinds of cooperative contracts. a. Licensing and joint ventures b. Franchising and licensing c. Direct investment and indirect investment d. Direct exporting and indirect exporting e. Joint ventures and strategies alliances

b milestones

59. Formal project review points used to assess progress and performance are called _____. a. prototypes b. milestones c. dominant designs d. change forces e. change agents

c Multifunctional teams

60. Which of the following is an aspect of the experiential approach to learning? a. Technological lockout b. Product duplication c. Multifunctional teams d. Centralization e. Micromanagement

a compression

61. The _____ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that reducing the time it takes to complete those steps can speed up innovation. a. compression b. milestones c. dialectical d. generational e. prototypical

a joint venture

62. A _____ is a strategic alliance in which two existing companies collaborate to form a third, independent company. a. joint venture b. franchise c. wholly owned affiliate d. global new venture e. cooperative contract

b compression

63. It is appropriate to use a(n) _____ approach to manage innovation in more certain environments, in which the goals are lower costs and incremental improvements in the performance and function of an existing technological design. a. experiential b. compression c. prototypical d. milestones e. reinforcement

a represent a merging of four cultures

63. Managing global joint ventures can be difficult because they: a. ​represent a merging of four cultures. b. ​increase the number of tariffs that have to be paid. c. ​can only be used by large companies that already have an international presence. d. ​use local consistency in marketing. e. ​help companies to allow nontariff barriers to entry.

e cost of building new operations

66. The primary disadvantage of wholly owned business is the _____. a. dumping of products b. countertrading of goods c. nontariff barriers associated with buying existing businesses d. difficulty in adjusting to a new culture e. cost of building new operations

c generational change

67. Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in _____. a. corrective change b. dominant design manipulation c. generational change d. technological lockout e. design duplication

a global new ventures

68. State-of-the-art companies with sales, employees, and financing in different countries that are found with an active global strategy are called _____. a. global new ventures b. strategic alliances c. wholly owned affiliates d. franchisees e. subsidized corporations

d organizational decline

68. When companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival, it results in _____. a. design competition b. resistance to change c. discontinuous change d. organizational decline e. generational change

e the development and communication of a company's global vision from inception by the founders

69. Which of the following is a common factor of global new ventures? a. A mechanistic organizational culture b. The use of local adaptation strategy c. The development of cultural specific implementation policies d. The ability to respond quickly and efficiently to any changes in the external environment e. The development and communication of a company's global vision from inception by the founders.

b. Managers wrongly assume that they can easily correct the problems, so they don't feel the situation is urgent.

70. Which of the following is a characteristic of the inaction stage of organizational decline? a. Management announce belt-tightening plans designed to cut costs, increase efficiency, and restore profits. b. Managers wrongly assume that they can easily correct the problems, so they don't feel the situation is urgent. c. Key managers fail to recognize the internal or external changes that will harm their organizations. d. Cutbacks and layoffs will have reduced the level of talent among employees. e. The company is dissolved through bankruptcy proceedings or by selling assets in order to pay suppliers, banks, and creditors.

c faulty action

71. In the _____ stage of organizational decline, managers typically assume that if they just run a tighter ship, company performance will return to previous levels. a. blinded b. dissolution c.faulty action d. inaction e. crisis

c crisis

72. In the _____ stage of organizational decline, cutbacks and layoffs will have reduced the level of talent among employees. a. faulty action b. inaction c. crisis d. dissolution e. blinded

b Purchasing power

72. Which of the following factors helps a company determine the growth potential of a foreign market? a. Political uncertainty b. Purchasing power c. Type of infrastructure d. Land availability e. Policy uncertainty

e dissolution

73. In the _____ stage of organizational decline, a new CEO may be brought in to oversee the closing of stores, offices, and manufacturing facilities, the final layoff of managers and employees, and the sale of assets. a. crisis b. blinded c. Inaction d. faulty action e. dissolution

c dissolution stage

74. At which stage of organizational decline does the decline become irreversible? a. Crisis stage b. Faulty action stage c. Dissolution stage d. ​Inaction stage e. Blinded stage

a political uncertainty and policy uncertainty

74. What are the two types of political risk that affect companies conducting global business? a. Political uncertainty and policy uncertainty b. Policy uncertainty and expropriation potential c. Cultural strength and political risks d. Infrastructure dynamism and political uncertainty e. Nationalism and economic uncertainty

c Political uncertainty

75. _____ is associated with the risk of major changes in governmental regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events. a. ​Power distance b. Individualism c. ​​Political uncertainty d. ​Short-term orientation e. ​Policy uncertainty

a policy uncertainty

78. _____ refers to the risk associated with changes in laws and government schemes that directly affect the way foreign companies conduct business.​ a. ​Policy uncertainty b. ​Power distance c. ​Political uncertainty d. ​Cultural simulations e. Purchasing power

e control, avoidance, and cooperation strategies

80. What are the strategies that can be used to minimize or adapt to the political risk inherent in global business? a. Protectionist, avoidance, and offensive strategies b. Creative, cooperative, and defensive strategies c. Cooperative, customary, and nationalistic strategies d. Avoidance, protectionist, and guerrilla strategies e. Control, avoidance, and cooperation strategies

b control

81. A firm using a(n) _____ strategy to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt its business in that country. a. defensive b. control c. cooperative d. protectionist e. avoidance

c cooperation

82. The _____ strategy of minimizing or adapting to the political risk inherent in global business makes use of joint ventures and collaborative contracts. a. defensive b. control c. cooperation d. avoidance e. offensive

b national culture

84. _____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country. a. National mindset b. National culture c. Cultural nationalization d. Cultural diversity e. National diversity

d five consistent dimensions of cultural differences across countries

85. Hofstede's research has shown that there are _____. a. no cultural differences among nations in which Spanish is the national language b. two distinct methods for dealing with cultural differences--adaptation and continuation c. direct relationships existing between type of infrastructures and growth potential d. five consistent dimensions of cultural differences across countries e. four factors upon which a company should base its decision to globalize

c having a short-term orientation

86. According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as _____. a. having a long-term orientation b. being masculine c. having a short-term orientation d. being individualistic e. being feminine

b feminine

87. According to Hofstede's research on cultural dimensions, _____ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life. a. economic-based b. feminine c. relationship-oriented d. individualistic e. masculine

c feminine

88. A particular society emphasizes the importance of relationship in its culture. They take good care of the weak people in their society and value modesty. In this context, this society has a(n) _____ culture. a. ​masculine b. ​long-term oriented c. ​feminine d. ​short-term oriented e. ​individualistic

d uncertainty avoidance

89. The term _____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations. a. power distance b. masculinity c. short-term/long-term orientation d. uncertainty avoidance e. political uncertainty

b lives and works outside his or her own country

90. An expatriate is someone who _____. a. claims dual citizenship b. lives and works outside his or her own country c. believes strongly in nationalization d. is unhappy with his or her present residence e. desires to be employed in a country other than his or her own country