IMS Study Guide

A policy of hiring and promoting based on the parent company's home-country frame of reference is

Ethnocentric

Incoterms are developed and maintained by

International Chamber of Commerce

Bills of lading serve each of the following purposes except

Serves 3 purposes: - contract for carriage between the shipper and the carrier - receipt from the carrier for the goods shipped - certificate of ownership.

An organization that coordinates economic activity to deliver value to customers using resources outside the traditional boundaries of the organization is known as a(n)

Virtual Corporation Network Corporation Modular Corporation

International Strategy

a plan that guides the way firms make choices about developing and deploying scarce resources to achieve their international objectives

Companies controlled by other companies, but less-than-majority owners may exercise control by a variety of means, both those involving stock ownership and those involving non-ownership mechanisms, are known as

affiliates

Employee compensation payments added to base salaries because of higher expenses encountered when living abroad are considered

allowances

The main difference between a free trade area and a customs union is that in a customs union, there is

common external tariffs to the FTA

Action plans to enable organizations to reach their objectives are known as

competitive strategies

Independent businesses that handle import shipments for compensation are

customhouse brokers

Knowledge that an individual has that is easy to express clearly in words, pictures, or formulas is known as

explicit knowledge

The sale of an exporter's accounts receivable on ordinary goods, with the balance of the payment due upon delivery or soon after is

factoring

The sale of an exporter's accounts receivable on capital goods, commodities, and other high value goods, with the payment due at least 180 days out is

forfaiting

Mercosur or Mercosul, NAFTA and CAFTA are

free trade area (FTA)

A structure organized by more than one dimension at the top level is known as a

hybrid organization

The ___________ organization has evolved from management's attempt to mesh product and regional and functional expertise while maintaining clear lines of authority

matrix organization

An organization in which top level divisions are required to heed input from a staff composed of experts of another organizational dimension in an attempt to avoid the double-reporting difficulty of a matrix organization but still mesh two or more dimensions is known as

matrix overlay

An employee who is a citizen of the nation in which the parent company is headquartered is known as

parent-country national (PCN) aka home-country national

A policy of hiring and promoting based on the specific local context in which the subsidiary operates is

polycentric policy

A middle ground between an ad campaign that is standardized worldwide and an entirely local ad campaign is called

programmed-management approach

________ are organizational forms in which product divisions are defined as though they were independent businesses.

strategic business units (SBUs)

Legitimate, shared standards against which the appropriateness of behavior can be evaluated are known as

team norms

The social desirability bias is

the respondent's desire to please that leads to answers designed to please the interviewer rather than reflect the respondent's true beliefs or feelings.

Disintermediation is

the unraveling of traditional distribution structures and is most often the result of firms' ability to combine the Internet with fast delivery services such as FedEx and UPS. shaking up traditional distribution channels and making rapid service possible with or without a formal distribution structure.

Description of the company's desired future position if it can acquire the necessary competencies and successfully implement its strategy is known as a

vision statement