IB Marketing Strategy and HR Management (Chpt 16 & 17) Practice Quiz

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In which of the following industries is an adaptation strategy LEAST likely to be appropriate?

consumer electronics

When outsourcing work to foreign suppliers, managers must ensure that ________.

worker productivity in the host country meets acceptable levels

Which of the following is true with regard to women in international business?

Female senior managers in international business are still more the exception than the norm.

All of the following are international labor trends EXCEPT ________.

rapidly increasing union membership in most advanced economies

Which of the following refers to a key strategy used by corporations to combat international price escalation?

redesign the product to remove costly features

For which of the following activities would parent-country nationals most likely be employed?

research and development

International Price Setting (Scenario) The Comfy Couch Corporation (CCC) is a leading American manufacturer of sofas, sectionals, and lounge chairs. Managers from the U.S.-based firm recently met a London retailer who expressed an interest in selling CCC lounge chairs in his stores. The retailer sells a number of different furniture brands in his stores, so CCC managers need to price their furniture appropriately if the firm is to be competitive in the European market. If CCC managers employ rigid cost-plus pricing they would most likely be disadvantaged because ________.

rigid cost-plus pricing often fails to account for local market conditions

MNEs often engage in transfer pricing for ________.

shifting profits out of a country that has high corporate income taxes into a country with low corporate income taxes to increase company-wide profitability

Galaxy Inc., a reputed global conglomerate, has suffered substantial losses in recent months owing to the problem of end-user prices shooting high up in the export market. In order to regain its competitive advantage abroad, Galaxy must ________.

shorten the distribution channel

________ are citizens of the country where the MNE's subsidiary is located.

Host-country nationals

Which of the following is true with regard to positioning?

Through positioning, firms emphasize differences from competitors' offerings.

________ refers to the employee's ability to adopt verbal and nonverbal behaviors appropriate in different cultures.

behavioral flexibility

How can international human resource managers effectively minimize culture shock for expatriates?

by training personnel to understand the host country's government, culture, and language

How can international human resource managers effectively minimize culture shock for expatriates?

by training personnel to understand the host country's government, culture, and language

________ refers to the number of distributors or other intermediaries that it takes to get the product from the manufacturer to the market.

channel length

Locating manufacturing in countries with low-cost labor enables a firm to ________.

charge lower prices

________ refers to an industrial relations practice in which labor representatives sit on the corporate board and participate in company decision making.

codetermination

All of the following refer to external factors that impact international pricing EXCEPT ________.

cost of manufacturing

Which of the following offsets some of the benefits of paying low wages abroad?

cost of training

When managers attempt to standardize their international marketing program, they can expect ________.

cost reduction

All of the following factors are important to consider about the target audience of an international advertising campaign EXCEPT ________.

entrepreneurial experiences of consumers

All of the following refer to key tasks of IHRM EXCEPT ________.

evaluating internal accounting practices and audits

Channel length can best be defined as ________.

the number of intermediaries between the manufacturer and the retailer

Which of the following is true with regard to a global positioning strategy?

A global positioning strategy reduces international marketing costs.

Which of the following is the best example of a situation in which a firm is compensating an employee with base remuneration?

An American engineer working in Japan receives a salary comparable to that of engineers working in the U.S.

________ refers to the number of distributors or other intermediaries that it takes to get the product from the manufacturer to the market.

Channel length

________ refers to an industrial relations practice in which labor representatives sit on the corporate board and participate in company decision making.

Codetermination

Which of the following is a recent trend regarding women in business?

Companies worldwide are substantially increasing the number of women on foreign assignments.

International Management Qualifications (Scenario) Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India. Which of the following most supports hiring Craig Springer as manager for CCC's facility in New Delhi?

Craig is able to work independently with little direction.

Which of the following is true with regard to firm strategy in international labor relations?

Cross-border linkages give rise to complex interactions among differing national labor systems.

International Management Qualifications (Scenario) Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India. Which of the following, if true, most seriously undermines the argument in favor of hiring Devon Parks as manager for CCC's facility in New Delhi?

Devon has few local connections in New Delhi where success is largely determined by local connections and networking.

International human resource management is usually more complex than domestic human resource management because ________.

IHRM managers are required to demonstrate greater involvement in employees' 39; personal lives

________ tends to worsen culture shock.

Inadequate cross-cultural skills

Which of the following best summarizes the goal of cross-cultural awareness training for expatriates?

It enables expatriates to effectively communicate with local customers and employees and be sensitive to the host-country's culture.

Which of the following best summarizes the goal of cross-cultural awareness training for expatriates?

It enables expatriates to effectively communicate with local customers and employees and be sensitive to the host-country's culture.

Employee Categories (Scenario) Styleco Inc. is an international manufacturer of leather wallets and briefcases. Based in Canada, the firm has subsidiaries throughout Europe and Asia. High-level Styleco employees are often re-located for months at a time to foreign offices depending on the needs of the firm. Shelly Eaton, a Canadian, has been sent to manage the Styleco office in Italy. Raj Patel, an Indian, is an experienced software designer who is on assignment for Styleco in its Paris office. Keiko Tran of Japan is employed as a manager in Styleco's Tokyo office. Marcus Field is a Canadian working at the Styleco headquarters in Ontario as a manufacturing engineer. Which of the following employees is most likely a host-country national?

Keiko Tran

Which of the following is true about the taxation of expatriates?

Most parent-country governments have devised regulations that allow expatriates to minimize double taxation.

________ is a formal process for assessing how effectively employees perform their jobs.

Performance appraisal

Employee Categories (Scenario) Styleco Inc. is an international manufacturer of leather wallets and briefcases. Based in Canada, the firm has subsidiaries throughout Europe and Asia. High-level Styleco employees are often re-located for months at a time to foreign offices depending on the needs of the firm. Shelly Eaton, a Canadian, has been sent to manage the Styleco office in Italy. Raj Patel, an Indian, is an experienced software designer who is on assignment for Styleco in its Paris office. Keiko Tran of Japan is employed as a manager in Styleco's Tokyo office. Marcus Field is a Canadian working at the Styleco headquarters in Ontario as a manufacturing engineer. Which of the following employees is most likely a third-country national?

Raj Patel

Employee Categories (Scenario) Styleco Inc. is an international manufacturer of leather wallets and briefcases. Based in Canada, the firm has subsidiaries throughout Europe and Asia. High-level Styleco employees are often re-located for months at a time to foreign offices depending on the needs of the firm. Shelly Eaton, a Canadian, has been sent to manage the Styleco office in Italy. Raj Patel, an Indian, is an experienced software designer who is on assignment for Styleco in its Paris office. Keiko Tran of Japan is employed as a manager in Styleco's Tokyo office. Marcus Field is a Canadian working at the Styleco headquarters in Ontario as a manufacturing engineer. Which of the following employees is a parent-country national working in a host country?

Shelly Eaton

Refrigerator Adaptations (Scenario) Cold-Aire Inc. manufactures refrigerators from its facilities in the United States and China and ships them to retail stores around the world. Kitchen sizes vary around the world, and as a result, refrigerator sizes must vary as well. U.S. retailers want large refrigerators, while European and Asian retailers demand smaller units. Cold-Aire manufactures over 20 different models of refrigerators, which often vary in size by only a few inches. Cold-Aire managers are concerned that the firm is losing money because of product adaptations. Cold-Aire management is meeting to discuss the various cost-saving options for the firm. Which of the following best supports Cold-Aire making fewer refrigerator adaptations?

Standardization reduces manufacturing expenses.

International Price Setting (Scenario) The Comfy Couch Corporation (CCC) is a leading American manufacturer of sofas, sectionals, and lounge chairs. Managers from the U.S.-based firm recently met a London retailer who expressed an interest in selling CCC lounge chairs in his stores. The retailer sells a number of different furniture brands in his stores, so CCC managers need to price their furniture appropriately if the firm is to be competitive in the European market. Which of the following questions would be the most important to evaluate before setting a price for the lounge chairs exported to England?

What is the mark up price quoted by the London retailer for CCC's products?

International Management Qualifications (Scenario) Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India. Which of the following would be the most important for human resources managers to determine before deciding who should manage the New Delhi facility?

Which candidate possesses the ability to be a flexible and sensitive leader with superior cross-cultural knowledge?

International Management Qualifications (Scenario) Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India. Which of the following would be the most important for human resources managers to determine before deciding who should manage the New Delhi facility?

Which candidate possesses the ability to be a flexible and sensitive leader with superior cross-cultural knowledge?

A global brand can best be defined as ________.

a brand whose positioning, advertising strategy, look, and personality are standardized worldwide

A global market segment refers to ________.

a group of customers who share similar characteristics across many national markets

A global market segment refers to ________.

a group of customers who share similar characteristics across many national markets

The root cause of gray market activity is ________.

a large enough difference in price of the same product between two countries

Manufacturers of branded products are concerned about gray market activity because it can lead to ________.

a tarnished brand image

Which of the following refers to the additional payment that allows the expatriate to maintain a standard of living similar to that at home?

allowance

In which of the following situations is the employee considered a host-country national?

an American MNE employs a Mexican citizen for its subsidiary in Mexico

In which of the following situations is the employee considered a host-country national?

an American MNE employs a Mexican citizen for its subsidiary in Mexico

Which of the following best describes an expatriate?

an employee who is assigned to live and work in a foreign country for an extended period

A strike refers to ________.

an organized, collective refusal to work with the aim of pressuring management to grant union demands

International Management Position (Scenario) Global Choppers Inc. is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from the company headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods. Conrad's training for his assignment in Romania would most likely include ________.

area studies

In which of the following industries is standardization more likely to be pursued?

credit cards

Buyer receptiveness differs as a function of ________.

culture and language

________ refers to the confusion and anxiety experienced by a person who lives in a foreign culture for an extended period.

culture shock

Adaptation is often necessitated due to ________.

differences across countries in language, culture, economic conditions, and other factors

Which of the following most likely occurs as a result of expatriate failure?

diminished careers

A firm that uses the Internet to provide detailed product information and the means for foreigners to buy offerings is using ________.

direct marketing

A firm that uses the Internet to provide detailed product information and the means for foreigners to buy offerings is using ________.

direct marketing

Linda Grahams, an American citizen, works in a global conglomerate based in Washington D.C. A few months ago, Linda was assigned to work in the company's office in Hong Kong and live there for the next three years. Which of the following can Linda be best described as?

expatriate

Linda Grahams, an American citizen, works in a global conglomerate based in Washington D.C. A few months ago, Linda was assigned to work in the company's office in Hong Kong and live there for the next three years. Which of the following can Linda be best described as?

expatriate

Area studies refer to ________.

factual knowledge of the historical, political, and economic environment of the host country

A ________ is a group of managers within a firm that determines which elements of the product will be standardized and which will be adapted locally.

global new-product planning team

In international business, firms frequently formulate market segments by ________.

grouping countries based on macro-level variables

Which of the following best characterizes the purpose of a global marketing strategy?

guides firms in targeting the right customer segments

Which of the following measures would a progressive firm most likely take to ensure female equality in international business?

have female executives serve as mentors and role models for aspiring women

In international business, marketing is concerned with ________.

identifying, measuring, and pursuing customer needs and market opportunities abroad

International Management Position (Scenario) Global Choppers Inc. is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from the company headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods. Which of the following sums up the goal of training Conrad for his assignment in Romania?

increasing Conrad's effectiveness abroad

Brand equity can best be defined as the ________.

market value of a brand

International Management Position (Scenario) Global Choppers Inc. is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from the company headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods. Which of the following sums up the goal of training Conrad for his assignment in Romania?

increasing Conrad's effectiveness abroad

The problem of end-user prices reaching exorbitant levels in the export market, caused by multilayered distribution channels, intermediary margins, tariffs, and other international customer costs is known as ________.

international price escalation

Which of the following is NOT one of the four dimensions of cultural intelligence?

introversion

An MNE would most likely employ a host-country national when ________.

it needs specialized knowledge about the local market it emphasizes R&D and manufacturing

Typically, ________ provide(s) a means for collective bargaining.

labor unions

________ is the process of dividing the firm's total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group.

market segmentation

An American automaker operating in the Asian and the European markets designs various models around a standardized platform. The firm adds parts, features, and regular units to this basic standardized platform according to the preferences of its customers. This exemplifies ________.

modular architecture

gray market activity is also called ____.

parallel importation

Richard Johnson, an American citizen, is a senior manager in a telecom company based in Texas. He is currently posted in and works from the company's subsidiary in Uganda, Africa. Richard is a ________.

parent-country national

________ is a formal process for assessing how effectively employees perform their jobs.

performance appraisal

Which of the following issues most likely complicates international human resource management?

political risk and terrorism

________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer's mind, emphasizing differences from competitors' offerings.

positioning

Managers typically consider all of the following elements when developing compensation packages for employees working abroad EXCEPT ________.

premium

Strikes organized by labor unions are aimed at ________.

pressuring management to grant union demands

International Advertising (Scenario) Quik-Vac Corporation, a U.S.-based company, manufactures small, inexpensive vacuum cleaners that work on rechargeable batteries. Quik-Vac customers typically live in small apartments where a large vacuum cleaner is neither necessary nor easy to use. Quik-Vac managers believe there is a market for the vacuum cleaners outside of the United States, especially in communities where living space is limited. The Quik-Vac marketing department has been assigned the task of creating an advertising campaign to introduce Quik-Vac's offerings to global consumers. Standardized advertising, if used by Quik-Vac, would most likely ________.

simplify Quik-Vac's communications strategy and save costs

firms with global mindsets are characterized by

staff diversity

A furniture company that makes its marketing program elements uniform, targeting entire regions with similar products, is demonstrating ________.

standardization

furniture company that makes its marketing program elements uniform, targeting entire regions with similar products, is demonstrating ________.

standardization

International Advertising (Scenario) Quik-Vac Corporation, a U.S.-based company, manufactures small, inexpensive vacuum cleaners that work on rechargeable batteries. Quik-Vac customers typically live in small apartments where a large vacuum cleaner is neither necessary nor easy to use. Quik-Vac managers believe there is a market for the vacuum cleaners outside of the United States, especially in communities where living space is limited. The Quik-Vac marketing department has been assigned the task of creating an advertising campaign to introduce Quik-Vac's offerings to global consumers. Which of the following can be reasonably inferred if Quik-Vac places increased emphasis on international promotional activities?

that it intends to stimulate an initial purchase, immediate purchase, or increased purchases of its products

Differences in culture, laws, and media availability imply ________.

that it is seldom possible to duplicate in foreign markets the type and mix of advertising used in the home market

Adaptation is defined as ________.

the firm's efforts to modify one or more elements of its international marketing program to accommodate specific customer requirements in a particular market

International Advertising (Scenario) Quik-Vac Corporation, a U.S.-based company, manufactures small, inexpensive vacuum cleaners that work on rechargeable batteries. Quik-Vac customers typically live in small apartments where a large vacuum cleaner is neither necessary nor easy to use. Quik-Vac managers believe there is a market for the vacuum cleaners outside of the United States, especially in communities where living space is limited. The Quik-Vac marketing department has been assigned the task of creating an advertising campaign to introduce Quik-Vac's offerings to global consumers. Before developing a print media campaign, which of the following must the marketing department of Quik-Vac determine about the company's target market?

the literacy rate among the target population

All of the following are true of global new-product planning teams EXCEPT ________.

they are responsible for global promotion of products and services

The practice of pricing intermediate or finished products exchanged among the subsidiaries and affiliates of the same corporate family located in different countries is known as ________.

transfer pricing

Gray marketers are ________.

unauthorized intermediaries

Under which of the following circumstances would an MNE most likely hire a parent- country national?

when the MNE wants to maintain strong control over its foreign operations

Under which of the following circumstances would an MNE most likely hire a parent-country national?

when the MNE wants to maintain strong control over its foreign operations


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