Test Bank Questions (Ch. 7-9)

A country or region that has an attractive business climate for companies that want to go global has 3 things:

(1) easy access to growing markets; (2) cost-efficient location; and (3) lower level of political risk

Global consistency:

(1) has offices, manufacturing plants, and distribution facilities in different countries all which run based on the same rules, guidelines, policies, and procedures (2) simplify decisions (why managers of multinational firms prefer it)

Which of the following statements about functional departmentalization is true?

Functional departmentalization allows work to be done by highly qualified specialists

The signing of the _______ created a regional trading zone in Europe.

Maastricht Treaty

One of the major questions that a company must typically answer about its future, once it has decided to go global is_____.

To what extent should the company standardize or adapt business procedures?

The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the ______.

World Trade Organization

Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of _______.

a trade barrier

________is used to assess how well managers and their families are likely to adjust to foreign cultures.

adaptability screening

Functional departmentalization:

allows work to be done by highly qualified specialists

In the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance ________.

at both the beginning and end of the cycle

In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance ______.

at the midpoint of the cycle

_______ is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish their jobs.

autonomy

_______ of authority is the location of most authority at the upper levels of management.

centralization

Where standardization is important, it is appropriate to _____.

centralize authority

A(n) _______ is the individual who is formally in charge of guiding a change effort.

change agent

According to social psychologist Kurt Lewin, _____ lead to differences in the form, quality, or condition of an organization over time, while ______ support the status quo, or the existing state of conditions in an organization.

change forces; resistance forces

Which of the following is NOT one of the basic methods for managing resistance to change?

change simulation

Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?

coercion

In a(n) _______, managers from different parts of the matrix report to matrix managers who help them sort out problems and conflicts.

complex

A firm using a ______ strategy to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt their business in that country.

control

What are the strategies that can be used to minimize or adapt to the political risk inherent to global business?

control, avoidance, and cooperative strategies

The ________ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.

cooperation

The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is _____.

costs

_______ is the location of a significant amount of authority in the lower levels of an organization.

decentralization

According to John Kotter, which of the following actions will adversely influence refreezing efforts?

declaring victory too soon

When a U.S. automaker learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which stage of the technology cycle did it enter?

discontinuous change

Job specialization can result in ______.

employee boredom

There are eight general steps for organizational development intervention. The first step is _____.

entry

Decentralization leads to:

faster decision making and more satisfied customers and employees

Protectionism is the use of trade barriers to protect local companies and their workers from _______.

foreign competition

New companies with sales, employees, and financing in different countries that are found with an active global strategy are called _____.

global new ventures

Which of the following is NOT one of the components of creative work environments?

group compensation

According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as _____.

having a short term orientation

During the ______ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design.

incremental change

Patterns of innovation over time that can create sustainable competitive advantage are called _______.

innovation streams

Organizational development ______.

is a philosophy and collection of planned change interventions

An organization that has increased the number of different tasks that a worker performs within one particular job has engaged in _____.

job enlargement

_____ is characterized by simple, easy-to-learn steps; low variety; and high repetition.

job specialization

________ is defined as an agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor's product, sell its service, or use its brand name in a specified foreign market.

licensing

A(n) ______ function is an activity that contributes directly to creating or selling the company's products.

line

The primary advantage of ______ departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplication.

matrix

Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ______.

multinational corporation

Which of the following countries has the largest direct foreign investment in the United States?

netherlands

A ______ is a nontax method of increasing the cost or reducing the volume of imported goods.

non tariff barrier

The Japanese government has proclaimed that its snow is different from that found in any other region of the world and as a result ensures that all snow skis marketed for sale in Japan must be manufactured in Japan. This is an example of what?

non tariff barrier and government import standard

Modular organizations:

outsource all but the core business activities that they can perform best

________ is defined as the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business.

policy uncertainty

What are the two types of political risk that affect companies conducting global business?

political uncertainty and policy uncertainty

Which of the following factors helps a company determine the growth potential of a foreign market?

purchasing power

Which of the following is a trend that has allowed companies to skip the phase model when going global?

quick, reliable air travel

To protect its farmers, Japan put limitations on the amount of mushrooms and leeks that could be imported into Japan from China. This limitation is an example of a(n) _____.

quota

The purpose of pre-departure language and cross-cultural training is to _______.

reduce the uncertainty for those becoming expatriates

A(n) ______ is a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources directly.

simple

A ______ function is an activity that does not contribute directly to creating or selling the company's product.

staff

______ is the degree to which a job is perceived to have a substantial impact on others inside or outside the organization.

task significance

The development of the DVD player was a source of _______ to companies in the movie industry just as VHS tapes had once been.

technological discontinuity

In order from beginning to end, the phases of a technology cycle within an innovation stream consist of ______.

technological discontinuity, discontinuous change, dominant design, and incremental change

The purchase of new technologies to replace older ones is an example of ______.

technological substitution

Companies need to excel at managing _______ in order to successfully manage innovation streams.

the sources of innovation

As a result of their structures, matrix organizations automatically violate the principle of ______.

unity of command

Three factors that support the emergence of global new ventures:

(1) quick, reliable air travel; (2) low-cost communication technologies; and (3) critical mass of business people with extensive international business experience

Which of the following is a component of a creative work environment that encourages creativity?

all of these

Which of the following statements describes an advantage of the results-driven change approach to managing change?

all of these were cited as advantages of the results-driven change approach

Which of the following statements about the organic form of organization design is true?

the organic form of organization design is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge

The General Agreement on Tariffs and Trade (GATT):

all of these (decreases both tariffs and non tariff barriers, puts stricter limits on government subsidies, eliminates tariffs in ten specific industries, protects intellectual property, such as trademarks, patents, and copyright)

The central concern of the job characteristics model (JCM) is _____.

internal motivation

Roughly 70 percent of all reengineering projects fail because ______.

of how the process affects people in the workplace

A(n) _____ organization is one that is characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge.

organic

Which of the following approaches is aimed at changing large systems, small groups, or individuals?

organizational development

________ is the vertical and horizontal configuration of departments, authority, and jobs within a company.

organizational structure

While ______ emphasizes jobs and their authority relationships, _____ emphasizes the activities through which work gets done in the organization.

organizational structure; organizational process

________ are defined as areas in which tariff and nontariff barriers on trade are reduced or eliminated.

regional trading zone

_______ forces support the status quo.

resistance

According to the job characteristics model, ______ means pushing some managerial authority down to workers.

vertical loading

A ______ organization is a network in which many companies share skills, costs, capabilities, markets, and customers with each other.

virtual

The composition of a ______ organization is always changing.

virtual