IB Global Test 2

19) Which of the following statements is true according to the MOW research study? A) The Japanese hold work to be of minimal significance in their lives. B) Arabs do not take work seriously. C) Israelis derive a higher level of interest and satisfaction from work as compared with the Germans. D) The British regard work to be the most important aspect in their lives.

C) Israelis derive a higher level of interest and satisfaction from work as compared with the Germans.

6) In the context of the study conducted by Lazarova and Caligiuri, which of the following refers to a top-five ranked practice for successful repatriation? A) providing foreign-language training B) assistance on tax payments C) preparing the expatriate to adjust in the host country D) career planning sessions

D) career planning sessions

12) For most people, the basic meaning of work is tied to ________. A) self-actualization needs B) subordinateship C) group membership D) economic necessity

D) economic necessity

35) The process of gathering information and forecasting relevant trends, competitive actions, and circumstances that will affect operations in geographic areas of potential interest is called ________. A) internal analysis B) sustainable development C) cultural analysis D) environmental scanning

D) environmental scanning

10) France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of TCL-Thomson Electronics. This is best described as a(n) ________. A) turnkey operation B) acquisition C) international licensing agreement D) equity strategic alliance

D) equity strategic alliance

2) Historically, a firm reorganizes as it internationalizes to ________. A) inhibit organizational change B) curb competition C) boost domestic competition D) accommodate new strategies

D) accommodate new strategies

9) To be effective, firms reorganizing into a domestic structure plus foreign subsidiary in one or more countries should ________. A) categorically ignore niche markets B) stop investing in domestic businesses C) refrain from exporting D) allow a great deal of autonomy to subsidiary managers

D) allow a great deal of autonomy to subsidiary managers

20) Trade barriers, such as tariffs and quotas, decrease risk and increase profits. Hence, they are attractive to foreign companies.

false

29) Feelings of alienation due to the loss of contact with family, friends, and daily life speed up the resocialization process.

false

31) One major advantage of cross-border alliances is that there is a potential loss of a company's technology and knowledge.

false

8) People with high uncertainty avoidance are motivated by more risky opportunities for variety and fast-track advancement.

false

18) It is impossible for small businesses, such as those with fewer than 500 workers, to do business overseas.

fasle

1) The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ________. A) strategic planning B) strategic delegation C) organizational design D) product planning

strategic planning

3) A company's choice to operate in a business or businesses and the ways in which it differentiates itself from its competitors is called its ________. A) strategy B) procedure C) mission D) process

strategy

5) Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to ________. A) develop joint ventures with local firms B) import supplies from foreign vendors C) expand the exportation of raw materials D) switch from exporting to overseas manufacturing

switch from exporting to overseas manufacturing

7) Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations? A) the firm searches for less restrictive operating environments overseas B) the firm responds to customers' demands more promptly C) the firm becomes entangled in lengthy litigation D) the firm expands its domestic operations

the firm searches for less restrictive operating environments overseas

24) The degree of general importance that working has in the life of an individual at any given point in time is known as work centrality.

true

25) For a firm, the ability to develop a globally experienced top management team depends largely on the success of expatriates' assignments.

true

25) Managers around the world have similar needs but show differing levels of satisfaction of those needs derived from their jobs.

true

26) A major advantage of global and cross-border alliances is that they share the cost and risk of research and development of new products.

true

26) Effective human resource management of a company's global cadre ends with the successful repatriation of the executive into company headquarters.

true

27) According to the study by Lazarova and Caligiuri, career planning sessions are associated with successful repatriation.

true

28) Reverse culture shock occurs primarily because of the difficulty of reintegrating into the organization.

true

29) A major benefit of cross-border alliances is that they facilitate the access to specific markets where regulations favor domestic companies.

true

3) The need to outsource employees is a complex issue for international human resource (IHR) managers as they seek to support strategic mandates.

true

30) To maximize the long-term use of their global cadre, companies need to make sure that the foreign assignment and the reintegration process are positive experiences.

true

4) International human resource management is a vital component of implementing global strategy.

true

5) Building global corporate cultures and staffing organizations with global leaders are some of the major challenges faced by the HR function in the global arena.

true

14) Globalization of competitors is one of the reactive reasons that prompt a company to operate overseas.

trur

3) ________ are transition mechanisms that propel the partners' strategies forward in a turbulent environment faster than would be possible for each company alone. A) Cooperative strategies B) Entry strategies C) Options strategies D) Competitive strategies

A) Cooperative strategies

34) ________ involves the ability to inspire and influence the thinking, attitudes, and behavior of people anywhere in the world. A) Effective global leadership B) An ethnocentric approach to management C) Effective repatriation D) An autocratic style of leadership

A) Effective global leadership

13) ________ is one of the informal means that firms often use to help the trailing spouse find a position at the same location. A) Intercompany networking B) Organizational shuffling C) Predeparture training D) Global management

A) Intercompany networking

1) ________ is increasingly being recognized as a major determinant of success or failure in international business. A) International human resource management B) Procurement of raw materials from abroad C) Outsourcing D) Insourcing

A) International human resource management

13) A study of average work hours in various countries conducted by Steers found that ________ worked longer hours and took fewer vacation days. A) Koreans B) Japanese C) British D) Indonesians

A) Koreans

2) ________ suggests being motivated by more risky opportunities for variety and fast-track advancement. A) Low uncertainty avoidance B) High uncertainty avoidance C) Small power distance D) Large power distance

A) Low uncertainty avoidance

14) ________ are usually preferable when a high level of technical capability is required and maintenance of close control is desired. A) Parent-country nationals B) Host-country nationals C) Expatriates D) Third-country nationals

A) Parent-country nationals

9) What is an equity alliance? A) a collaborative arrangement in which at least one collaborating company takes an ownership position in the other B) a collaboration in which each contributor receives an equitable return based on relative contribution C) a collaboration in which partners agree to share technology with each other D) a wholly owned acquisition to prevent appropriation of intellectual property

A) a collaborative arrangement in which at least one collaborating company takes an ownership position in the other

36) MNCs often partner with local SMEs in order to ________. A) capture new innovations and ideas B) reduce the potential risks of the company C) ensure international expansion D) maximize the autonomy of the partners

A) capture new innovations and ideas

25) Which of the following is a cooperative aspect of strategic alliances? A) creating economies of scale in tangible assets B) accelerating diffusion of industry standards to erect barriers to entry C) learning new intangible skills from alliance partners D) denying technological and learning initiative to partners

A) creating economies of scale in tangible assets

10) Which of the following is a reactive reason that prompts a firm to expand overseas? A) customer demands B) seeking economies of scale C) growth opportunities D) seeking incentives

A) customer demands

6) Smaller firms are most likely to reorganize into ________ during their internationalization. A) domestic structure plus export department B) domestic structure plus foreign subsidiary C) global product structure D) global functional structure

A) domestic structure plus export department

32) Which of the following refers to a problem that firms with structurally sophisticated global networks are most likely to face? A) environmental volatility B) competition from domestic firms C) low cost savings D) import tariffs

A) environmental volatility

32) Which of the following is a regional risk with regard to strategic entry scanning? A) financial and currency instability B) varying fiscal strategies C) repatriation policies D) shifting production and consumption

A) financial and currency instability

37) ________ reveal an inefficient use of assets that restricts profitability. A) Sales-force analyses B) Concentration ratios C) Financial ratios D) Competitive analyses

C) Financial ratios

26) Which of the following would most likely be categorized as a global financial objective of an international firm? A) foreign-exchange management B) long-term profit growth C) quality and cost control D) company market share

A) foreign-exchange management

21) In which of the following staffing approaches, are the best managers recruited from within or outside of the company, regardless of nationality? A) geocentric staffing approach B) global staffing approach C) ethnocentric staffing approach D) polycentric staffing approach

A) geocentric staffing approach

31) Anna Preston is a senior manager in a high-technology company in the United States. She has an in-depth knowledge of her company's resources, and the ability to recognize and exploit market opportunities abroad. Her thorough understanding of how the business and people operate at the local level in international markets makes her an invaluable asset to her company. Anna is ________. A) global business savvy B) an authoritarian leader C) an enthnocentric manager D) a self-protective leader

A) global business savvy

19) Which of the following organizational structures is particularly appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers? A) global functional structure B) international division C) global product structure D) matrix structure

A) global functional structure

25) Given the generally accepted consensus that staffing, along with structure and systems, must "fit" the desired strategy, firms desiring a truly worldwide posture should adopt a(n) ________. A) global staffing approach B) geocentric staffing approach C) regiocentric staffing approach D) ethnocentric staffing approach

A) global staffing approach

29) A specific strategy that treats the world as one market by using a standardized approach to products and markets is called ________. A) globalization B) localization C) differentiation D) integration

A) globalization

25) The second part of the strategic management process involves the ________. A) implementation phase B) assessment stage C) planning phase D) analysis stage

A) implementation phase

6) A(n) ________ refers to a JV among companies in different countries. A) international joint venture B) equity joint venture C) global joint venture D) transnational joint venture

A) international joint venture

28) Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________. A) involvement of greater risks B) presence of stable market conditions C) enforcement of government controls D) presence of stable exchange rates

A) involvement of greater risks

21) With the geographic structure, the focus is on ________, since products can be adapted to local requirements. A) marketing B) innovation C) divesting D) importing

A) marketing

McDonald's corporation? A) minimizing autonomy B) hiring locals whenever possible C) forming paradigm-busting arrangements with suppliers D) making minor changes to the standard menu based on location

A) minimizing autonomy

24) Cross-border allies often have difficulty collaborating effectively, especially in competitively sensitive areas. This generally leads to ________. A) mistrust and secrecy B) limitation of investment C) short-term corporate restructuring D) lowering of exit barriers

A) mistrust and secrecy

18) Lauryn, an American national, was sent to Japan on an assignment. According to her, it was during this time that she learned to understand situations from the viewpoint of local employees and business people. As an expatriate, which of the following skills did Lauryn attain? A) multiple perspectives B) ability to work with others C) tolerance for ambiguity D) technical skills

A) multiple perspectives

12) Runnerz Inc., a leading manufacturing and retail company that designs and develops footwear and apparel, has signed a contract with a particular courier service for managing the delivery process. The courier service is required to deliver goods from the factory to the warehouse, to customers, and also to collect customer payments for the goods. This is a typical example of a(n) ________. A) non-equity strategic alliance B) turnkey operation C) greenfield investment D) international licensing agreement

A) non-equity strategic alliance

20) Which staffing approach will most likely be effective when implementing a global strategy of "acting local"? A) polycentric B) talent-intensive C) ethnocentric D) cost-intensive

A) polycentric

5) People generally prefer little consultation between superiors and subordinates in cultures where ________ is high. A) power distance B) fatalism C) individualism D) self-actualization

A) power distance

1) In order to maximize a firm's global human resources, IHR managers need to ________. A) promote the role of women in international management B) develop line supervisors through extensive training programs C) acquire low-cost resources D) promote their organizations through word-of-mouth communication

A) promote the role of women in international management

22) Joint ventures are often the chosen form of multinational firm alliances because they ________. A) provide greater control of proprietary technology B) increase the level of competition between partner firms C) enhance the specific skills of the personnel D) enhance the rewards of the firm

A) provide greater control of proprietary technology

11) A country seeks new infusions of capital, technology, and know-how. It announces that it shall exempt taxes and grant concessions for foreign investors. Which of the following measures is the country employing? A) providing incentives B) imposing regulations C) establishing trade barriers D) ensuring economies of scale

A) providing incentives

20) In the Middle East, ________ plays a major role in all aspects of life, including work. A) religion B) materialism C) individualism D) leisure

A) religion

10) "The longer a person is away, the more difficult it is to get back into the swing of things." In the context of repatriation, this often leads to ________. A) reverse culture shock B) expatriate retention C) assimilation D) segregation

A) reverse culture shock

11) An expatriate manager who returns after a few years from an overseas assignment to find that there is no position for him in his home country office experiences a(n) ________. A) reverse culture shock B) expatriate failure C) cognitive dissonance D) assimilation effect

A) reverse culture shock

1) The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ________. A) strategic planning B) strategic delegation C) organizational design D) product planning

A) strategic planning

) A company's choice to operate in a business or businesses and the ways in which it differentiates itself from its competitors is called its ________. A) strategy B) procedure C) mission D) process

A) strategy

3) Organization ________ refers to the formal arrangement of roles, responsibilities, and relationships within an organization. A) structure B) systems C) culture D) strategy

A) structure

7) Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations? A) the firm searches for less restrictive operating environments overseas B) the firm responds to customers' demands more promptly C) the firm becomes entangled in lengthy litigation D) the firm expands its domestic operations

A) the firm searches for less restrictive operating environments overseas

20) Jeff Richards works for an American MNC. For more than 10 years, Jeff was posted in the company's subsidiary in Ghana. Upon returning to his home country a few months ago, Jeff reported that his international experience had substantially enhanced his skills of making decisions with less information and more uncertainty about the outcome. In this instance, Jeff alludes to which of the following acquired skills? A) tolerance for ambiguity B) technical skills C) managerial skills D) multiple perspectives

A) tolerance for ambiguity

17) ________ staffing approach serves to perpetuate particular personnel selections and other decision-making processes because the same types of people are making the same types of decisions. A) Global B) Ethnocentric C) Polycentric D) Regiocentric

B) Ethnocentric

38) According to Dovev Lavie, which of the following is a caution given to global companies by value capture strategies? A) Set organizational and technological buffers between competing partners. B) Avoid partners that compete in your industry if they enjoy superior bargaining power. C) Learn and assimilate network resources in order to develop new skills and capabilities. D) Align organizational units and create a coherent interface with each partner in the alliance.

B) Avoid partners that compete in your industry if they enjoy superior bargaining power.

30) ________ refers to the ability to recognize global market opportunities for a company and having a vision of doing business worldwide. A) Cross-cultural awareness B) Global business savvy C) Global positioning D) Technology savvy

B) Global business savvy

23) Which of the following is true with regard to the global geographic structure? A) With the geographic structure, the focus is on importing. B) Marketing-oriented companies are most likely to opt for this structure. C) The geographic structure is not an adequate structure for consolidating regional expertise. D) In a geographic structure, problems of coordination across different regions are virtually nonexistent.

B) Marketing-oriented companies are most likely to opt for this structure.

12) ________ are familiar with company goals, products, technology, policies, and procedures; they know how to get things accomplished through headquarters. A) Expatriates B) Parent-country nationals C) Third-country nationals D) Host-country nationals

B) Parent-country nationals

6) Which of the following is true about collectivist cultures? A) People place high emphasis on autonomy, opportunities for personal achievements, and a work-life balance. B) People are motivated when they feel that the company is providing them with good working conditions, fringe benefits, and training. C) People typically opt for high pay, personal accomplishment, and job advancement. D) People typically opt for risky opportunities for variety and fast-track advancement.

B) People are motivated when they feel that the company is providing them with good working conditions, fringe benefits, and training.

1) ________ are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages. A) Greenfield investments B) Strategic alliances C) Foreign subsidiaries D) Turnkey operations

B) Strategic alliances

19) Which of the following is true with regard to a global product structure? A) A global product structure is disadvantageous for firms with diversified product lines that are aimed at dissimilar or dispersed markets. B) The advantages of this organizational form are market concentration, innovation, and responsiveness to new opportunities in a particular environment. C) In a global product structure, a cluster of products are grouped into a single division. D) A global product structure does not facilitate diversification and inhibits growth.

B) The advantages of this organizational form are market concentration, innovation, and responsiveness to new opportunities in a particular environment.

23) Which of the following statements is true of the strategic formulation process? A) The global strategic formulation process is completely independent of the process followed in domestic companies. B) The strategic formulation process is part of the strategic management process in which most firms engage, either formally or informally. C) Strategic formulation consists of four defined stages that occur in a consecutive order. D) Most firms operate on planning cycles of one or two years with periodic strategy reviews.

B) The strategic formulation process is part of the strategic management process in which most firms engage, either formally or informally.

8) The management of the reentry phase of the career cycle, if not handled adequately, ________. A) can lead to culture shock B) can lead to the negation of the long-term benefits of that executive's international experience C) is most likely to nullify the monetary benefits associated with the executive's international experience D) is most likely to decrease general apathy toward overseas assignments

B) can lead to the negation of the long-term benefits of that executive's international experience

39) In order to minimize potential problems in alliances, companies should most likely choose partners with ________. A) competitively sensitive technology B) complementary products and skills C) significant control of the target market D) superior bargaining power in the same industry

B) complementary products and skills

2) Alliances are also known as ________. A) competitive strategies B) cooperative strategies C) relational strategies D) virtual strategies

B) cooperative strategies

24) Which of the following is the first step of the planning phase of a strategic management process? A) assessment of the external environment that the firm will face in the future B) establishment of the company's mission C) analysis of the firm's relative capabilities to deal successfully with the external environment D) seeking alternative strategies using competitive analysis

B) establishment of the company's mission

9) Alec is an American working for a software company in Texas. He has been assigned to work on a project in China for a year. He would be considered as a(n) ________ in China. A) domicile resident B) expatriate C) host-country national D) third-country national

B) expatriate

22) Which of the following is the most common form of organizing foreign operations in which divisions are created to cover various regions? A) global functional structure B) global geographic structure C) global product structure D) matrix structure

B) global geographic structure

24) Marketing-oriented companies, such as Nestlé and Unilever, which produce a range of products that can be marketed through similar channels of distribution to similar customers, will usually opt for the ________. A) domestic structure plus foreign subsidiary B) global geographic structure C) matrix structure D) domestic structure plus export department

B) global geographic structure

28) The critical factors necessary for successful leadership abroad have come to be known as the ________. A) global logistics B) global mindset C) cultural diversity D) cultural quotient

B) global mindset

33) Increasingly, global companies are requiring that their managers who will progress to top management positions must ________. A) adopt an ethnocentric approach to management B) have overseas assignment experience C) adhere to an autocratic style of leadership D) refrain from empowering subordinates

B) have overseas assignment experience

26) No matter what the stage of internationalization, a firm's structural choices always involve ________. A) low standardization procedures B) integration and differentiation C) vertical job specialization D) mass marketing and niche marketing

B) integration and differentiation

36) A(n) ________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially) compared to competitors. A) transactional analysis B) internal analysis C) structural analysis D) break-even analysis

B) internal analysis

10) A(n) ________ permits managers to allocate and coordinate resources for foreign activities under one roof, and thus enhances the firm's ability to respond, both reactively and proactively, to market opportunities. A) local division B) international division C) export department D) domestic structure plus foreign subsidiary

B) international division

21) With regard to transitioning economy in Russia, Russian managers primarily emphasize ________. A) self-esteem B) job security C) intellectual capital D) self-actualization

B) job security

4) A ________ is a new independent entity that is collectively created and owned by two or more parent companies. A) subsidiary B) joint venture C) greenfield investment D) turnkey operation

B) joint venture

34) At which three levels should firms ideally perform global environmental analysis? A) product, domestic market, and consumer B) multinational, regional, and local C) operational, tactical, and top management D) innovation, production, and local distribution

B) multinational, regional, and local

21) A repatriated manager says, "I learned to understand situations from the viewpoint of local employees and businesspeople when I worked overseas." Which of the following acquired skills is the manager referring to in this instance? A) technical skills B) multiple perspectives C) managerial skills D) tolerance for ambiguity

B) multiple perspectives

10) Kelly Roberts, an American, is a senior manager at her firm's headquarters in New York. Kelly is a(n) ________. A) expatriate B) parent-country national C) host-country national D) third-country national

B) parent-country national

19) A(n) ________ staffing approach is more likely to be effective when implementing a multinational strategy. A) ethnocentric B) polycentric C) regional D) local

B) polycentric

7) In addition to the global war for talent, there are considerable strategic competitive challenges for firms. Which of the following is one such challenge? A) increasing talent in order to lower the costs of operations B) relocating operations around the world C) obtaining competent talent at higher wages than competitors D) obtaining talent using a regiocentric approach

B) relocating operations around the world

15) Which of the following is the primary benefit for a firm that carefully manages its expatriates' careers? A) creating global opportunities for junior managers B) retaining managers with global experience and skills C) maintaining close connections with national subsidiaries D) recruiting fresh college graduates for global management positions

B) retaining managers with global experience and skills

33) In their rush to get on the globalization bandwagon, too many firms have ________. A) opted for niche marketing B) sacrificed the ability to respond to local market structures and consumer preferences C) overly focused on local markets at the cost of losing out on market share abroad D) wrongly overestimated the importance of mass customization for the global market

B) sacrificed the ability to respond to local market structures and consumer preferences

5) Effective human resource management of a company's global cadre ends with ________. A) allocation of an overseas assignment to the executive B) successful repatriation of the executive into company headquarters C) preparing the executive for cultural differences D) providing foreign-language training to the executive

B) successful repatriation of the executive into company headquarters

4) Neil Grahams is a strategic HR advisor in an American MNC. He believes that in today's globalized economy, both the knowledge and management resources as well as the skilled and unskilled employee resources, central to the success of an organization, are dispersed around the world. According to him, an organization can significantly improve global competitiveness by maximizing its global human resources in the long run. With which of the following is Neil most likely to agree? A) that maximizing long-term retention adversely affects the ability of an organization to maximize its global human resources in the long run B) that IHR managers must develop effective global management teams to improve global competitiveness C) that women have little or no role to play in international management D) that the use of international cadre through career management is unlikely to improve global competitiveness

B) that IHR managers must develop effective global management teams to improve global competitiveness

35) The content of leadership comprises ________. A) community relations B) the attributes of the leader C) the level of risk faced by the leader D) the business environment

B) the attributes of the leader

17) Work centrality refers to ________. A) the division of work roles between men and women in a given society B) the degree of general importance that working has in the life of an individual at any given point in time C) t???????????????

B) the degree of general importance that working has in the life of an individual at any given point in time

23) In the context of needs, Eastern cultures tend to focus on ________. A) the needs of the individual B) the needs of society C) materialistic needs D) self-actualization needs

B) the needs of society

21) Which of the following motivates a company to form cross-border alliances? A) to regulate and favor domestic companies B) to gain rapid entry into a new and consolidating market C) to remove exporting barriers for domestic companies D) to allow local companies to gain access to international products and services

B) to gain rapid entry into a new and consolidating market

20) Which of the following is NOT a typical reason for forming cross-border alliances? A) to avoid import barriers B) to share R&D costs and risks C) to gain access to specific markets D) to test marketing campaigns overseas

B) to share R&D costs and risks

6) Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain? A) customer demands B) trade barriers C) globalization of competitors D) growth opportunities

B) trade barriers

14) As women continue to move up the corporate ladder, the accompanying spouse is often male—estimated at more than ________ percent. A) 85 B) 5 C) 25 D) 50

C) 25

16) ________ research focused on how some people are motivated by internal aspirations and life goals, whereas others are primarily motivated by the job conditions. A) Henry Mintzberg's B) Henri Fayol's C) Abraham Maslow's D) Frederick Herzberg's

C) Abraham Maslow's

14) Blackmoor Industries is an American firm that manufactures automotive parts. The firm has several manufacturing facilities in the United States and one in a foreign country. Blackmoor's global managers have recently reported that workers in the foreign facility are more comfortable with the traditional division of work and roles. Consequently, flexible roles and work networks are unlikely to find favor in this particular facility, unlike in those spread across the United States. If the above information is true, which of the following can be fittingly inferred? A) Blackmoor's foreign facility is located in a low uncertainty avoidance culture. B) Blackmoor's foreign facility is located in a highly individualist culture. C) Blackmoor's foreign facility is located in a masculine culture. D) Blackmoor's foreign facility is located in a low power distance culture.

C) Blackmoor's foreign facility is located in a masculine culture.

16) Which of the following best explains the attrition rate for expatriates? A) The skills of expatriates are not marketable because of their time spent overseas. B) Expatriates are usually relegated to junior positions upon returning to their home country. C) Expatriates feel unappreciated and dissatisfied both during and after the assignment and leave the company. D) Expatriates receive less compensation overseas than they receive domestically.

C) Expatriates feel unappreciated and dissatisfied both during and after the assignment and leave the company.

12) Jade International is a highly diversified global firm with headquarters in New Jersey. It manufactures a variety of products ranging from home security systems to automotive components. Jade's 100,000 employees work at facilities located in more than 60 countries around the world. Jade frequently sends American managers overseas to manage the firm's foreign facilities. The HR department is considering the idea of redesigning Jade's expatriate support services program. Which of the following, if true, best supports Jade's decision to provide assistance to trailing spouses in finding jobs overseas? A) Jade puts great emphasis on promoting the role of women in global management. B) The majority of Jade's expatriate managers have long-term international experience. C) Jade has lost a significant chunk of its global cadre in the recent past owing to its failure to offer feasible options to address the dual-career couples dilemma. D) Female managers at Jade have reported discriminatory treatment while on overseas assignments.

C) Jade has lost a significant chunk of its global cadre in the recent past owing to its failure to offer feasible options to address the dual-career couples dilemma.

1) Which of the following is true with regard to Japanese workers? A) Japanese workers consider work to be less important in their lives compared to leisure. B) Japanese workers are typically lazy and are not dedicated to group goals. C) Japanese workers typically feel strong kinship to their employers. D) Japanese workers do not consider friendship to be an integral part of the workplace.

C) Japanese workers typically feel strong kinship to their employers.

7) Sedona Inc. is an American firm that manufactures high-quality handbags, duffel bags, and leather belts at its facility in Arizona. Sedona's products have been featured in various fashion magazines and as a result, consumer demand has increased significantly. Currently, Sedona is organized as a domestic structure plus export department. Executives at Sedona believe the firm is ready to internationalize its operations, and they are considering various organizational structures. Which of the following best supports the argument that Sedona should give its subsidiary managers significant autonomy? A) Praxis Inc., one of Sedona's domestic competitors, has a flat organizational structure. B) Sedona is a family-owned business that began as a subsidiary to Aloha enterprises. C) Sedona has recently reorganized into a domestic structure plus foreign subsidiary. D) Sedona conducts a large percentage of domestic sales through the company's web site.

C) Sedona has recently reorganized into a domestic structure plus foreign subsidiary.

2) ________ is the framework that managers apply to determine the competitive moves and business approaches that run the company. A) Competition B) Growth C) Strategy D) Vision

C) Strategy

8) ________ are employees assigned to a country other than their own. A) Host-country nationals B) Inpatriates C) Third-country nationals D) Expatriates

C) Third-country nationals

37) According to Dovev Lavie, which of the following is a value-creation strategy? A) setting organizational buffers between competing partners B) allying with multiple partners in one industry to limit power C) assimilating network resources to acquire new skills and capabilities D) aligning organizational units to create coherent interfaces

C) assimilating network resources to acquire new skills and capabilities

22) Japanese workers are likely to ________. A) emphasize personal goals over group-wide goals B) be motivated by materialistic rewards C) be insulted by material incentives D) emphasize individual achievement over group achievement

C) be insulted by material incentives

8) Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas. In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas? A) trade barriers B) manufacturer demands C) customer demands D) tax incentives

C) customer demands

2) There are various categories of resources—both people and processes—which IHR managers and others must develop and maintain; in particular it is essential for them to ________. A) minimize long-term retention and use of international cadre B) develop culturally homogeneous teams C) develop effective global management teams D) consider host-country labor relations system as essentially anarchic

C) develop effective global management teams

27) Which of the following refers to focusing on and specializing in specific markets? A) integration B) implementation C) differentiation D) globalization

C) differentiation

31) Which of the following is a global risk with regard to strategic entry scanning? A) economic and fiscal policies B) corruption C) economic and financial risk D) trade restrictions

C) economic and financial risk

30) Which of the following terms refers to the continuous process of gathering and evaluating information about variables and events around the world that may pose threats or opportunities to the firm? A) business process reengineering B) PEST analysis C) environmental assessment D) fundamental analysis

C) environmental assessment

17) Sigma Inc. is designed on the basis of the company's business activities such as production, finance, and marketing. Foreign operations at Sigma are integrated into the activities and responsibilities of each division to achieve economies of scale and operative specialization. In other words, Sigma has a(n) ________. A) domestic structure with foreign subsidiary B) domestic structure with export department C) global functional structure D) international division structure

C) global functional structure

4) Which of the following is the most common reactive reason for a firm to extend its operations overseas? A) tax incentives B) economies of scale C) globalization of competitors D) resource access and cost savings

C) globalization of competitors

27) The task of ________ is the essence of leadership. A) maintaining the status quo B) helping management reduce costs C) helping employees realize their highest potential in the workplace D) insulating the organization from changes in the external business environment

C) helping employees realize their highest potential in the workplace

34) The ________ the level of the company at which managers make decisions, the more that organization is ________. A) higher; decentralized B) lower; centralized C) higher; centralized D) higher; unstructured

C) higher; centralized

4) Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges? A) collectivism B) democracy C) individualism D) anarchy

C) individualism

35) Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm? A) computer database B) corporate clipping service C) internal sources D) information packages

C) internal sources

22) According to Berthoin, which of the following types of knowledge gained abroad helps in understanding the differences in customer preferences? A) knowledge about why B) knowledge about when C) knowledge about what D) knowledge about who

C) knowledge about what

16) Which of the following is a disadvantage of the ethnocentric staffing approach? A) increased opportunities or development for local managers at the expense of PCNs B) low adaptation of expatriates in the parent country C) lack of managerial effectiveness of PCNs in foreign countries D) lack of managerial effectiveness of PCNs in the parent country

C) lack of managerial effectiveness of PCNs in foreign countries

33) Which of the following is a national risk with regard to strategic entry scanning? A) energy availability and prices B) regional instability C) legal protection D) political turmoil

C) legal protection

11) A firm that uses an international division structure sometimes experiences intra-organizational conflict because ________. A) such a structure disallows managers to coordinate resources for foreign activities under one roof B) the international division invariably fails to respond to cultural differences C) more resources and management attention tend to get channeled toward the international division than toward the domestic divisions D) such a structure depresses the firm's ability to respond to market opportunities

C) more resources and management attention tend to get channeled toward the international division than toward the domestic divisions

11) Alliances that are carried out through contract rather than ownership sharing are called ________. A) cultural strategic alliances B) equity strategic alliances C) non-equity strategic alliances D) transmodal strategic alliances

C) non-equity strategic alliances

27) Which of the following charts the direction of the company and provides a basis for strategic decision making? A) environmental assessment B) corporate structure C) organization

C) organization

27) Which of the following charts the direction of the company and provides a basis for strategic decision making? A) environmental assessment B) corporate structure C) organizational mission

C) organizational mission

23) According to David Lei, the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that ________. A) good venture partners are hard to find B) technologies change very rapidly C) partners can become competitors D) governments can be fickle

C) partners can become competitors

3) Low power distance implies that ________. A) people would be more likely to prefer an autocratic leadership style B) most people would be more comfortable with the traditional division of work and roles C) people would be more motivated by teamwork and relations with peers D) most people would be more comfortable with a clear distinction between managers and subordinates rather than with a blurring of decision-making responsibility

C) people would be more motivated by teamwork and relations with peers

9) The psychological process of readapting to one's home culture after working in a host-country culture is called ________. A) social loafing B) assimilation effect C) reverse culture shock D) expatriate failure

C) reverse culture shock

36) The context of leadership comprises ________. A) clarity of information available in host area B) the technical knowledge of the leader C) the business environment D) the communication skills of the leader

C) the business environment

2) Which of the following should ideally dictate the organizational structure and staffing needs of the firm? A) the firm's customers B) the size of the firm C) the firm's strategy D) the firm's short-term objectives

C) the firm's strategy

7) Which of the following is the most beneficial aspect of an international joint venture? A) the international partner receives the entire profit B) the responsibility of risks is solely taken by the international partner C) the partner's local contacts and markets will be utilized D) the entire cost of production will be borne by the local partner

C) the partner's local contacts and markets will be utilized

32) Which of the following refers to one of the four personal development strategies, outlined by Morrison, Gregersen, and Black, through which companies and managers can meet the requirements of effective global leadership? A) global positioning B) hiring C) training D) technology

C) training

26) Which of the following terms is increasingly replacing the term "expatriate" due to the global staffing approach? A) repatriate B) global manager C) transpatriate- this is when executive goes one foreign assignment to the next without going home D) line manager

C) transpatriate-

29) ________ includes environmental scanning and continuous monitoring to keep abreast of variables around the world that are pertinent to the firm. A) Environmental mitigation B) Internal analysis C) Competitive analysis D) Environmental assessment

D) Environmental assessment

1) ________ is the process by which a firm gradually changes in response to global competition; domestic market saturation; and the desire for expansion, new markets, and diversification. A) Segmentation B) Integration C) Segregation D) Internationalization

D) Internationalization

17) ________ are all about learning how to deal with a wide range of people, to adapt to their cultures through compromise, and not to be a dictator. A) Multiple perspectives B) Tolerance levels C) Technical skills D) Managerial skills

D) Managerial skills

37) Which of the following is true with regard to the global leader's role? A) Managers on international assignments do not represent the parent firm. B) The global leader's role comprises the interaction of two sets of variables, technology and information. C) The cumulative effects of one or more weak managers hardly have a significant negative impact on the ability of the organization to meet its objectives. D) Managers on international assignments try to maximize leadership effectiveness by juggling several important, and sometimes conflicting, roles.

D) Managers on international assignments try to maximize leadership effectiveness by juggling several important, and sometimes conflicting, roles.

3) Felix Johnson is a senior HR manager in a global conglomerate. He believes that an important factor contributing to international competitiveness is the ability of an organization to maximize its global human resources in the long run. With which of the following is Felix most likely to agree? A) Outsourcing is the most logical method of achieving economies of scale and maximizing benefits. B) Extensive training programs are unlikely to help organizations improve the quality of their workers. C) The promotion of women in international management is unlikely to positively impact an organization's competitiveness in the global business arena. D) Maximizing long-term retention through career management increases the odds in favor of global competitiveness.

D) Maximizing long-term retention through career management increases the odds in favor of global competitiveness.

15) ________ are the most preferred staffing choice for a foreign subsidiary where proprietary technology is used extensively. A) Expatriates B) Host-country nationals C) Third-country nationals D) Parent-country nationals

D) Parent-country nationals

) Which of the following is true, according to the MOW research study on work centrality? A) The British are indifferent to leisure. B) The Japanese hold leisure to be very important in their lives. C) The British hold work to be very important in their lives. D) The Japanese hold work to be very important in their lives.

D) The Japanese hold work to be very important in their lives.

24) ________, when placed in key positions, are perceived by employees as acceptable compromises between headquarters and local managers. A) Repatriates B) Parent-country nationals C) Home-country nationals D) Third-country nationals

D) Third-country nationals

19) ________ is an acquired skill that refer(s) to making decisions with less information and more uncertainty about the process and the outcome. A) Technical skills B) Managerial skills C) Multiple perspectives D) Tolerance for ambiguity

D) Tolerance for ambiguity

31) The downside of rationalization is ________. A) high cost of production B) widely varying product design for different markets around the world C) different marketing and sales strategies are adopted for each country D) a lack of differentiation and specialization for local markets

D) a lack of differentiation and specialization for local markets

11) A(n) ________ policy is likely to be used where a company notes the inadequacy of local managerial skills and determines a high need to maintain close communication and coordination with headquarters. A) global B) regiocentric C) polycentric D) ethnocentric

D) ethnocentric

13) When the company is at the internationalization stage of strategic expansion and has a centralized structure, it will likely use a(n) ________ staffing approach to fill key managerial positions with PCNs. A) polycentric B) regiocentric C) global D) ethnocentric

D) ethnocentric

8) A ________ structure is the ideal way to organize work when global integration is more important than local responsiveness and the industry structure encourages cost leadership. A) decentralized B) matrix C) divisional D) functional

D) functional

16) In which of the following is a firm's foreign operations integrated into the activities and responsibilities of each department to gain operative specialization and economies of scale? A) global matrix structure B) global geographic structure C) global divisional structure D) global functional structure

D) global functional structure

13) Which of the following types of alliances can be formed between a company and a foreign government? A) international joint venture B) equity strategic alliance C) non-equity strategic alliance D) global strategic alliance

D) global strategic alliance

28) Which of the following refers to the coordination of specific markets? A) differentiation B) globalization C) diversification D) integration

D) integration

29) Which of the following is NOT one of the typical characteristics of a successful leader with a global mindset? A) high flexibility B) personal autonomy C) emotional resilience D) low cultural quotient

D) low cultural quotient

25) A ________ is a hybrid organization of overlapping responsibilities. A) functional structure B) divisional structure C) product structure D) matrix structure

D) matrix structure

18) In ________, operations outside the home country are managed by individuals from the host country. A) vertical integration B) horizontal integration C) ethnocentric staffing D) polycentric staffing

D) polycentric staffing

22) A global staffing policy ________. A) avoids recruiting third-country nationals B) relies primarily on local managers to fill key managerial positions abroad C) is overly in favor of filling key managerial positions with people from headquarters D) provides a greater pool of qualified and willing applicants from which to choose

D) provides a greater pool of qualified and willing applicants from which to choose

12) When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits. This is most likely an example of a firm expanding overseas due to ________. A) globalization of competitors B) restrictive trade barriers C) home country regulations D) provision of incentives

D) provision of incentives

30) Managers choose the manufacturing location for each product based on where the best combination of cost, quality, and technology can be attained in order to achieve ________. A) customer loyalty B) integration C) segregation D) rationalization

D) rationalization

5) Which of the following does NOT represent a typical way in which firms organize their international activities? A) domestic structure plus export department B) matrix structure C) domestic structure plus foreign subsidiary D) regional structure

D) regional structure

41) An internal analysis focuses on the company's ________. A) vision and mission B) market share C) competitors D) resources and operations

D) resources and operations

9) Which of the following is the proactive reason that prompts firms to expand overseas? A) avoiding restrictive trade barriers B) solving logistics-related problems C) responding to foreign competition D) seeking economies of scale

D) seeking economies of scale

20) Which of the following refers to a self-contained business within a company with its own functional departments and accounting systems? A) buying center B) supply chain C) value chain D) strategic business unit SBU

D) strategic business unit SBU

5) Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to ________. A) develop joint ventures with local firms B) import supplies from foreign vendors C) expand the exportation of raw materials D) switch from exporting to overseas manufacturing

D) switch from exporting to overseas manufacturing

23) Who, among the following, when used to manage subsidiaries, usually brings more cultural flexibility and adaptability to a situation? A) parent-country nationals B) home-country nationals C) managers with minimal global exposure D) third-country nationals

D) third-country nationals

5) All of the following would be examples of international joint ventures EXCEPT ________. A) two Japanese companies sharing ownership of a company in Canada B) a Danish company sharing ownership with a South African company in South Africa C) a government-owned company from China sharing ownership with an Australian company in Panama D) two Venezuelan companies sharing ownership of a company in Venezuela

D) two Venezuelan companies sharing ownership of a company in Venezuela

7) In the context of the study conducted by Lazarova and Caligiuri, which of the following refers to the most important HRM practice for successful repatriation? A) continuous communication with the home office B) financial and tax assistance C) agreement about position upon repatriation D) visible signs that the company values international experience

D) visible signs that the company values international experience

15) The degree of general importance that working has in the life of an individual at any given point in time is called ________. A) intrinsic motivation B) extrinsic motivation C) self-actualization D) work centrality

D) work centrality

16) A joint venture is a situation in which two or more partners have different relative ownership shares in the new venture.

False

16) Customer demands have no impact on a company international business strategy.

False

17) Wholly owned operations abroad inhibit a company's ability to pursue a global strategy.

False

18) It is impossible for small businesses, such as those with fewer than 500 workers, to do business overseas.

False

20) Trade barriers, such as tariffs and quotas, decrease risk and increase profits. Hence, they are attractive to foreign companies.

False

27) In a highly competitive environment, alliances are a slow and risky route to globalization, and therefore, are likely to be avoided.

False

28) Cross-border allies usually collaborate effectively, and are most often associated with long lasting trust and loyalty.

False

31) Typically, firms use highly formal means to help the accompanying spouse find a position at the same location.

False

2) ________ is the framework that managers apply to determine the competitive moves and business approaches that run the company. A) Competition B) Growth C) Strategy D) Vision

Strategy

13) The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called strategic planning.

True

14) Alliances can be formed for various purposes, e.g., sharing technology, marketing, or production joint ventures.

True

14) Globalization of competitors is one of the reactive reasons that prompt a company to operate overseas.

True

15) Companies seek out less restrictive foreign operating environments when the regulations and restrictions enforced by the firm's home government become expensive.

True

17) One pressing reason for many large firms to expand overseas is to seek economies of scale.

True

19) The availability of raw materials and other resources offers both greater control over inputs and lower transportation costs.

True

23) In the globalized economy, the knowledge and management resources required for the firm to succeed are no longer concentrated in a single region but are distributed around the world.

True

32) The attrition rate for expatriates is considerably higher than that of non-expatriates.

True

30) Cross-border alliances are used to gain rapid entry into a new or consolidating industry and to take advantage of synergies.

True(Santander, Austria: Economic and Political Outline)

7) Which of the following is true about highly feminine cultures? A) Opportunities for individual advancement and autonomy are the driving factors for people in feminine cultures. B) People are more comfortable with the traditional division of work and roles.

c

16) Customer demands have no impact on a company international business strategy.

false

10) In individualistic cultures, employees typically value their autonomy, and are unlikely to be motivated by fringe benefits and training provided by the employer.

correct

11) Low power distance implies that people would be more motivated by teamwork and relations with peers.

correct

9) People in countries with a high level of national individualism are more likely to be motivated by opportunities for personal advancement.

correct

10) Which of the following is a reactive reason that prompts a firm to expand overseas? A) customer demands B) seeking economies of scale C) growth opportunities D) seeking incentives

customer demands

8) Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas. In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas? A) trade barriers B) manufacturer demands C) customer demands D) tax incentives

customer demands

15) A merger is a transition mechanism that propels the partner's strategies forward in a turbulent environment faster than would be possible for each company alone.

false

4) Which of the following is the most common reactive reason for a firm to extend its operations overseas? A) tax incentives B) economies of scale C) globalization of competitors D) resource access and cost savings

globalization of competitors

11) A country seeks new infusions of capital, technology, and know-how. It announces that it shall exempt taxes and grant concessions for foreign investors. Which of the following measures is the country employing? A) providing incentives B) imposing regulations C) establishing trade barriers D) ensuring economies of scale

providing incentives

12) When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits. This is most likely an example of a firm expanding overseas due to ________. A) globalization of competitors B) restrictive trade barriers C) home country regulations D) provision of incentives

provision of incentives

9) Which of the following is the proactive reason that prompts firms to expand overseas? A) avoiding restrictive trade barriers B) solving logistics-related problems C) responding to foreign competition D) seeking economies of scale

seeking economies of scale

12) Internationalization is the process by which a firm gradually changes in response to global competition; domestic market saturation; and the desire for expansion, new markets, and diversification.

true

13) Small firms typically start their international involvement by getting involved in exporting

true

13) The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called strategic planning.

true

15) Companies seek out less restrictive foreign operating environments when the regulations and restrictions enforced by the firm's home government become expensive.

true

17) One pressing reason for many large firms to expand overseas is to seek economies of scale.

true

18) Most global manufacturers have equity alliances with suppliers, sub-assemblers, and distributors-forming a network of internal family and financial links. Risk-sharing is often the motive behind equity alliances.

true

19) The availability of raw materials and other resources offers both greater control over inputs and lower transportation costs.

true

19) Working partnerships between two or more companies across national boundaries and increasingly across industries are referred to as global strategic alliances.

true

24) IHR managers are responsible for developing effective global management teams.

true