BMGT392 Quizzes
The flow of FDI is related to the Stock of FDI as... ice is related to water sunrise is related to sunset water from the faucet is related to water in the sink waves are related to the shore
water from the faucet is related to water in the sink
The following are mechanisms for economic transformation, except for: Free Press Deregulation Privatization Legal Systems
Free Press
What is Ford's current global strategy? International Strategy Localization Strategy Positioning Strategy Global Standardization Strategy Transnational Strategy
Global Standardization Strategy
There's a correspondence between the strategy and organizational architecture that firms use internationally. Which of the below is the wrong pairing? International Strategy: International Division Localization Strategy: Worldwide area Global Standardization: Worldwide area Transnational Strategy: Matrix
Global Standardization: Worldwide area
An "intangible" in terms of a definition for this class is... Unable to be touched or grasped Not having physical presence Knowledge based skill embedded in firms Something difficult to explain
Knowledge based skill embedded in firms
Expatriate pay packages include all the following, except... Base salary Profit sharing Foreign service premium (International) Allowances
Profit sharing
According to the textbook from among the below countries, the country that's the biggest source of FDI outflows is... US UK Netherlands Germany Japan France
US
Gains from trade are greatest when... US trades with Vietnam US trades with China Canada trades with Vietnam Canada trades with China
US trades with China
An expatriate manager is... A citizen of one country that gave up their citizenship A citizen of one country that gave up their citizenship to work in another country A citizen of one country that works abroad A citizen of one country that works abroad in a foreign subsidiary of their company
A citizen of one country that works abroad in a foreign subsidiary of their company
Which root of unethical behavior likely caused Walmart to bribe government officials in Mexico to obtain permits to build stores? National culture A company's leadership / top management A company's culture A company's decision-making process
A company's leadership / top management
The theory of comparative advantage states all, except... A country can be less efficient at making everything than other countries, but still gain from trade A country has to be best (the most efficient) at making something to gain from trade Countries specialize and trade with other countries that also specialize Countries are better off because more of all goods are produced
A country has to be best (the most efficient) at making something to gain from trade
Strategic trade policy is... A government protecting domestic firms that are part of the military industrial complex A government choosing carefully which industries/products to put trade barriers on A government helping a domestic firm gain first mover advantage in an industry with substantial economies of scale A government coordinating with other countries' governments to create the strongest trading block
A government helping a domestic firm gain first mover advantage in an industry with substantial economies of scale
National culture is related to firm culture as... A part is to the whole Sun is to the moon Smoke is to a chimney Gasoline is to automobile
A part is to the whole
A "push" marketing strategy is preferred for all the below situations, except... For consumer goods Industrial products or complex new products When distribution channels are short When few print or electronic media are available
For consumer goods
With a tariff, the three constituent groups affected include all, except... Consumers - who are harmed Domestic producers - who benefit Government setting the tariff - that collects the tariff Foreign government - that collects the tariff
Foreign government - that collects the tariff
Consumer surplus is highest under... No trade Free open trade Trade with tariffs Same in all of the above
Free open trade
The engines of growth are supported by all except: Market economy GDP growth Property rights Democracy
GDP growth
Of the "Four-tiered" Structure of Markets, which is the most important for multinational firms? Global Glocal Local Bottom
Glocal
Applying the Four Tier-Structure of Markets to human resource management, which of the following tier level to manager level links is incorrect? Global level tier - global manager Glocal level tier - global manager Glocal level tier - subsidiary manager Local level tier - local manager
Glocal level tier - global manager
All of the below apply to a market economy, except... Demand from consumers signals firms how much to produce The interaction of supply and demand determine prices Government sometimes intercedes to prevent monopolies Government takes ownership of some important businesses
Government takes ownership of some important businesses
All the below are pressures for cost reduction, except... Greater scale economies Greater convergence of consumer trends and universal needs Greater cultural differences and unique local customer needs Greater global sourcing
Greater cultural differences and unique local customer needs
The locations/countries that do more product development feature all these traits, except... More spending on basic R&D Greater military spending Stronger demand Consumers are affluent Competition is intense
Greater military spending
The two main forms of foreign direct investment (FDI) are... Greenfield and alliances Greenfield and acquisition/merger Brownfield and acquisition/merger Brownfield and alliances
Greenfield and acquisition/merger
These all made it difficult to transfer the Toyota Production System to the old GM plant in Fremont CA, except... The same workforce was used to make Toyota Corollas that made GM cars The workers were told at GM never to allow the production line to stop Having the US workers train in a Japanese plant using the Toyota Production System The workers were accustomed to no one helping them if they had a problem
Having the US workers train in a Japanese plant using the Toyota Production System
A firm chooses to "make" versus "buy" when the particular activity/task has all, except... High asset specificity High fixed costs High frequency High uncertainty
High fixed costs
All the below are types of entry modes, except... Exporting Importing Licensing / Franchising Joint venture Wholly owned subsidiary
Importing
According to a table in the textbook, which of the four below countries has the highest GDP Growth Rate, 2002-11? US Japan India Brazil
India
The key determinants of the spot rate of foreign exchange includes all, except... Supply of a currency in the international currency market Demand for a currency in the international currency market Inflation - prices for the same bundle of goods increases Trade balance / Balance of Payments - country has a greater trade deficit Government Intervention - country's gov't buy & sells its currency
Inflation - prices for the same bundle of goods increases
All of the below are "Primary Activities" of the Value Chain, except... Information Systems R&D Production Marketing and Sales Customer Service
Information Systems
The engines of growth are: Innovation and entrepreneurship Innovation and legal systems Productivity and efficiency Productivity and entrepreneurship
Innovation and entrepreneurship
Types of control systems include all the below, except... Personal controls Bureaucratic controls Input controls Output controls Cultural controls
Input controls
Which is not an example of a global institution? International Investment Organization World Trade Organization International Monetary Fund United Nations
International Investment Organization
Below are all types of legal systems, except for... International law Common law Theocratic law Civil law
International law
The mindset of a global manager includes all the below, except... Works well in multiple environments Understands key differences across multiple environments Can harness differences for firm's advantage Is a conduit /building block for existing knowledge
Is a conduit /building block for existing knowledge
"Free movement of factors" affects a country's production possibility frontier by ... Shrinking the country's PPF, so a country can produce less of what it has comparative advantage in Lessening the curvature of the PPF, so a country can produce more of what it has comparative advantage in Increasing the curvature of the PPF, so a country can produce less of what it has comparative advantage in None of the above
Lessening the curvature of the PPF, so a country can produce more of what it has comparative advantage in
How is the fact that (1) Toyota's Lexus brand sells identical products around the world and (2) Toyota's Toyota brand sells differentiated products around the world consistent with the "Four-tiered" Structure of Markets? It's not consistent, therefore Toyota should make some changes Lexus is a stronger brand than Toyota, so they don't have to change their products Lexus is using a global standardization strategy, while Toyota is using a transnational strategy Lexus is for "global" customers, while Toyota is for "glocal" customers
Lexus is for "global" customers, while Toyota is for "glocal" custom
All the below are categories of factors that affect whether a firm prefers concentrated versus decentralized production, except... Country factors Local factors Technological factors Product factors
Local factors
What global strategy did Ford use immediately before the strategy in the prior question (Q7)? International Strategy Localization Strategy Positioning Strategy Global Standardization Strategy Transnational Strategy
Localization Strategy
For new product development, a forward-looking strategy that some firms follow is... Locating R&D facilities not just in usual suspect locations, but also emerging markets Doing most R&D at the home location Having foreign subsidiaries make clones of what's made at home Having foreign subsidiaries make some modifications to better meet local requirements
Locating R&D facilities not just in usual suspect locations, but also emerging markets
Benefits from an Economic Union's member countries having only one currency versus multiple currencies (like EU nations having the Euro vs the Deutsche Mark, Franc, Lira, Peseta, etc) include all, except... Lower foreign exchange and other currency transaction costs Ability to compare prices among sellers, increasing competition, which benefits consumers Loss of purchasing power Elimination of exchange rate risks
Loss of purchasing power
The set of global strategies includes all, except... International Strategy Localization Strategy Positioning Strategy Global Standardization Strategy Transnational Strategy
Positioning Strategy
Using a turn signal when driving is a norm that some places use more. What underlying value might it indicate? blinking lights are valued imitating others is valued courteousness is valued all of the above
courteousness is valued
Risks a manager should consider before doing business in a foreign country include: Political risk Economic risk Legal risk All of the above
All of the above
Roots of unethical behavior include... National culture A company's leadership / top management A company's culture A company's decision-making process All of the above
All of the above
The Foreign Corrupt Practices Act... Outlaws the paying of bribes Applies to US firms Allows "facilitation payments" All of the above
All of the above
A "production function" relates how... A country's output is a function of inputs. A country's inputs include capital, labor and materials. A country's output can increase from innovation and entrepreneurship. All of the above.
All of the above.
To curtail unethical behavior, the main levers include adjusting all of the below, except... Hiring and promotion Changing industry culture Organizational culture and leadership Decision making processes
Changing industry culture
Dimensions of firms' distribution strategy include all the below, except... Retail concentration Channel length Channel exclusivity Channel numbers Channel quality
Channel numbers
Is Australia more collective or individual focused versus the US? Collective Individual
Collective
Theodore Levitt argued in a Harvard Business Review article that... "...the world is currently undergoing two struggles: the drive for prosperity and development, symbolized by Lexus automobiles, and the desire to retain identity and traditions, symbolized by the olive tree." "...gaps in power and technology between human societies originate primarily in environmental differences, which are amplified by various positive feedback loops." "...gone are accustomed differences in national or regional preferences... the global corporation... sells the same thing in the same way everywhere." "...economics is, at root, the study of incentives."
"...gone are accustomed differences in national or regional preferences... the global corporation... sells the same thing in the same way everywhere."
The WTO is need because... Countries' governments raise trade barriers, which triggers retaliation Countries' governments don't always act in their country's best economic interests Countries' governments may lack trust that other countries' governments will reciprocate if they lowered trade barriers All of the above
All of the above
Instruments of trade policy include... Tariffs Subsidies Quota/Voluntary export restraints All of the above
All of the above
More thoughtful philosophical approaches include... Utilitarian - weigh all the social benefits & costs Rights theories - people have fundamental rights Justice theories - distribute equally, but unequal is also ok if advantageous to all All of the above
All of the above
Reasons for a government to apply trade barriers on another country's imports include... Protecting domestic jobs National security Retaliating against another country's trade barriers All of the above
All of the above
Reasons for a government to lower trade barriers on another country's imports include... Wanting to build a stronger relationship with that country Promoting better human rights in that country Protecting the environment All of the above
All of the above
Why are property rights important for Death Wish Coffee (DWC)? Allows the entrepreneurs behind DWC to capture the revenues from their ideas. Discourages others from copying DWC's ideas. Encourages the entrepreneurs behind DWC to open a business around their ideas. All of the above.
All of the above.
Ways the chapter says that firms reduce defects, which lowers their costs include all, except... Total quality management Automation & robotics Six Sigma ISO9000
Automation & robotics
Which of these companies manufacturing plants are more (geographically) concentrated? Boeing Ford/Toyota a concrete company all the above have similar concentration
Boeing
The following countries have similar social strata (measured by income inequality), but which of the below countries has lower social mobility? Italy UK Switzerland Canada
Canada
Apple's organizational structure is... Centralized Decentralized
Centralized
Reasons for regional integration include all, except... Establishing free trade and investment among a limited number of adjacent countries Greater world production than would be possible with trade restrictions Creating incentives for political cooperation among countries Certain groups may lose from integration
Certain groups may lose from integration
Walmart bribing government officials in Mexico to obtain permits to build stores is an example of what type of ethical issue? Employment Human rights Pollution Corruption Moral obligation
Corruption
GNI (or GDP) per person across countries can be misleading because Population in each country may be hard to count Some countries don't keep good track of how much they produce We shouldn't focus on "gross" but "net" Cost of living across countries is not considered
Cost of living across countries is not considered
Determinants of national culture include all except... Social Structure Religious Systems Language Cultural Change
Cultural Change
The Trump administration's trade barriers for goods entering the US had what effect on BMW? Concentrated more production in the US Concentrated more production in Europe Decentralized production, moving activity out of the US Decentralized production, moving activity out of Europe Doesn't affect concentration or decentralization of production
Decentralized production, moving activity out of the US
Below are all types of totalitarianism, except for... Communist totalitarianism Right-wing totalitarianism Democratic totalitarianism Theocratic totalitarianism
Democratic totalitarianism
All the below are country factors that influence whether a firm prefers concentrated versus decentralized production, except... Differences in fixed costs Differences in political economy Trade barriers Location externalities
Differences in fixed costs
Regional economic integration is beneficial because of all the below, except... Increases economic gains for member countries by increasing trade Promotes political stability by further linking member countries' economies Creates / increases trade among member nations Diverts / decrease trade from non-member nations
Diverts / decrease trade from non-member nations
All of the following are steps of comparative advantage, except... Countries aggregate their productive capabilities, AKA engage in trade Each country specializes in what it does absolutely better than the other country Each country specializes in what it does relatively better than the other country More is produced, therefore more can be consumed; or the same can be produced using less resources
Each country specializes in what it does absolutely better than the other country
The levels of economic integration include all, except... Free Trade Area Customs Union Economic Market Common Market Economic Union
Economic Market
Of the below goods/services, which would we expect Purchasing Power Parity to work well for; that the price for that good/service would be the same across countries. Homes Big Macs Expensive watches Movie theater tickets
Expensive watches
Managerial (company) gains/benefits from regional economic integration include all, except... Accessing a larger market (composed of member countries) without having to build facilities in all member countries Reducing costs by producing a product in other member countries versus importing the product from non-member countries Facing greater competition from companies in other member countries Can increase a resident firm's competitiveness by shifting some activities from the firm's home country to member countries
Facing greater competition from companies in other member countries
Theories for why FDI occurs includes all, except... Limits to licensing / internalization Strategic behavior / multipoint competition Product life cycle Managerial synergies Eclectic paradigm
Managerial synergies
Which type of economy is more likely to generate more innovations that customers are willing to pay for? Command economy Market economy Mixed economy Innovation economy
Market economy
A largely discredited theory of international trade is... Mercantilism - exports good, imports bad Absolute Advantage - country exports what it is good at Comparative Advantage - country exports what it is relatively good (or least bad) at Heckscher-Ohlin - factor endowments determine what a country is relatively good at
Mercantilism - exports good, imports bad
Types of staffing policy include all the below, except... Ethnocentric Monocentric Polycentric Geocentric
Monocentric
Tom Matano, a global manager for Mazda, was responsible for what key feature of Mazda automobiles? The "Zoom, zoom" advertising campaign Reintroducing convertible cars to the Mazda product line up More highly styling the front of Mazda cars More highly styling the rear of Mazda cars
More highly styling the rear of Mazda cars
A company that has value-added/productive activities in two or more countries is called a? Exporter / importer Foreign flagged company Multinational enterprise Multi-country company
Multinational enterprise
Countries welcome FDI for all the reasons below, except... Resource transfer Out competing local firms Balance of Payment offset/credit Employment creation
Out competing local firms
The "O", "L", and "I" in the Eclectic Paradigm stand for... Organization, Logistics, International Ownership, Location, Internalization Ownership, Location, International Organization, Logistics, Internalization
Ownership, Location, Internalization
Some languages don't have future tenses. Instead of "it will rain tomorrow", the language says "it rain tomorrow". What is the relationship to savings rate? People who speak a language with no future tense has no relationship to savings. People who speak a language with no future tense save the same as others. People who speak a language with no future tense save more. People who speak a language with no future tense save less.
People who speak a language with no future tense save more.
"Tragedy of the commons" is the logic behind which ethical issue in international business? Employment Human rights Pollution Corruption Moral obligation
Pollution
When a country's money supply increases without a commensurate increase in the country's output of goods/services, what happens to prices of goods/services in the country? Price stay the same Prices decrease (deflation) Prices increase (inflation) Prices increase and GDP growth slows (stagflation)
Prices increase (inflation)
Limits on imports into a country help... Consumers in that country Producers in that country that compete with imports The government of that country All of the above
Producers in that country that compete with imports
A central feature of a Common Market is "free movement of factors". Examples of "free movement of factors" includes all, except... Citizens of common market member countries being able to work in member countries freely, for example, without needing a work visa Purchases by citizens of common market member countries not having to pay taxes on purchases made in member countries Materials made in common market member countries being able to be exported into member countries without any restrictions Financial capital from common market member countries being able to be transferred into member countries without any transaction or border fees
Purchases by citizens of common market member countries not having to pay taxes on purchases made in member countries
Elements of "value creation" include all, except... Value, "V" Price, "P" Quantity, "Q" Cost, "C"
Quantity, "Q"
Given the existence of the World Trade Organization (WTO), why would countries want to enter regional agreements? Regional agreements help countries reduce trade barriers more rapidly than via the WTO The WTO doesn't let some countries join Regional agreements are the same as the WTO Regional agreements are a necessary stepping stone to joining the WTO
Regional agreements help countries reduce trade barriers more rapidly than via the WTO
A company can exchange currencies via all the following, except... Spot exchange rate Forward exchange rate Reverse exchange rate Currency swap
Reverse exchange rate
Among philosophical approaches, what philosophy would advocate "applying the same standards a company uses in its home country"... Friedman doctrine Cultural relativism Righteous moralist Naïve immoralist
Righteous moralist
Voting model of trade protection has all the following steps, except... A tariff negatively affects many consumers, but the effect is small Since the effect on consumers is small, consumers don't speak out against tariffs A tariff positively affects fewer domestic workers, but the effect is large Since the effect on domestic workers is large, domestic workers don't lobby for tariffs
Since the effect on domestic workers is large, domestic workers don't lobby for tariffs
The advantages of "make" include all, except... Facilitating specialized investments Accumulating dynamic capabilities Strategic flexibility Improving scheduling
Strategic flexibility
Japan inventing laser printers is an example of which topic in the chapter? Product factors Hidden costs of foreign locations Strategic role of a foreign production site Strategic alliance with suppliers
Strategic role of a foreign production site
The ways that Global Expansion improves firms' profits include all, except... Expanding the market Location economies Experience effects Strategic synergies Leveraging subsidiary skills
Strategic synergies
The elements of organizational architecture include all the below, except... Synergies Structure Control systems and incentives Processes Culture
Synergies
Implementing organizational change has all the below stages, except... Targeting the new state Unfreezing the organization Moving to the new state Refreezing the organization
Targeting the new state
Before going abroad, managers receive the following categories of training, except... Technical training Cultural training Language training Practical training
Technical training
Loading goods on ships before containerization was like which video game? Pac-man Fortnite Tetris Pong
Tetris
"Purchasing Power Parity" suggests... That the price of an identical basket of goods will be different across countries That the price of an identical basket of goods will be the same across countries That the price of a random basket of goods will be the same across countries None of the above
That the price of an identical basket of goods will be the same across countries
That two neighboring gas stations charge different prices for gas indicates... The station pricing higher will go out of business The difference in price reflects what people are willing to pay The station pricing lower could be pricing higher That most people don't pay attention to gas prices
The difference in price reflects what people are willing to pay
The three steps of Internalization theory include all, except... Firm possesses valuable knowledge-based skills Knowledge is mostly tacit vs codified making transfer to another company difficult The firm licensing its knowledge to maximize its profits The firm conducts foreign direct investment
The firm licensing its knowledge to maximize its profits
Reasons that expatriate managers fail abroad include all, except... Manager's inability to adjust Manager's personal or emotional maturity Inability to cope with larger overseas responsibility Too expensive to live abroad Lack of technical competence
Too expensive to live abroad
Collective is to Individual as... Property rights is to corruption Socialism is to Communism Totalitarian is to Democracy Common law is to Theocratic law
Totalitarian is to Democracy
Barriers that would impede a firm's communication strategy include all the below, except... Cultural barriers Trade barriers Source and country origin effects Noise levels
Trade barriers
The theory of absolute advantage states all, except... Trade is a zero-sum game (as much as one country benefits, the other loses) Nations differ in what they are best at making Countries specialize in what they are best at Countries trade with other countries that also specialize Countries are better off because more of all goods are produced
Trade is a zero-sum game (as much as one country benefits, the other loses)
Companies are exposed to a couple categories of foreign exchange risk that include all, except... Transaction Exposure Translation Exposure Transamerica Exposure Economic Exposure
Transamerica Exposure
Which of the below strategies has the highest interdependence, performance ambiguity, and costs of control in its organizational structure? Localization Strategy International Strategy Global Standardization Transnational Strategy
Transnational Strategy
Which strategies result in unique products in different parts of the world? Global Standardization and International Strategy Transnational Strategy and Localization Strategy Global Standardization and Transnational Strategy International Strategy and Localization Strategy
Transnational Strategy and Localization Strategy
The Foreign Corrupt Practices Act states that... European firms can bribe foreign government officials to obtain/maintain business US firms can bribe foreign government officials to obtain/maintain business US firms can't bribe foreign government officials to obtain/maintain business US firms can bribe foreign government officials to obtain/maintain business, if other competing firms do
US firms can't bribe foreign government officials to obtain/maintain business
For the theory of competitive advantage, looking at countries' Production Possibility Frontiers (PPFs), which of the below is most important? How much a country can make of a good (where the production possibility frontier strikes the x and y axes) What the country's opportunity cost is (what the slope of the production possibility frontier is)
What the country's opportunity cost is (what the slope of the production possibility frontier is)
Purchasing Power Parity suggests... What the exchange rate between two currencies should be in the short run What the exchange rate between two currencies should be in the long run That two countries should have the same purchasing power That two countries should have different purchasing power
What the exchange rate between two currencies should be in the long run
Exchange rates helps to autocorrect trade imbalance (a country having a trade surplus) via all the below steps, except... When a country is a net exporter, its currency weakens When a country is a net exporter, its currency strengthens When a country's currency strengthens, the country's goods become more expensive for foreigners When a country's goods become more expensive, foreigners buy less of them, reducing that country's exports
When a country is a net exporter, its currency weakens
Greenfield and acquisitions are both types of... Licensing / Franchising Joint ventures Wholly owned subsidiary Strategic alliances
Wholly owned subsidiary
Of the below entry modes, which is Toyota the most likely to choose in the US? Licensing Joint venture Wholly owned subsidiary - acquisition Wholly owned subsidiary - greenfield
Wholly owned subsidiary - greenfield
Entry Strategy encompasses all the following dimensions/decisions, except... Which market/country to enter When to enter Why to enter At what scale (how much resources to use) to enter
Why to enter
The four global firm organizational structures include all the below, except... International Division Worldwide Area Worldwide Product Worldwide Matrix Global Matrix
Worldwide Matrix
Notice that Apple's hardware products are identical around the world. Based on this, what is their likely organizational structure... International division Worldwide area Worldwide product Matrix
Worldwide product
All the below are advantages of strategic alliances, except... aids competitors gain access to technology facilitate entry sharing of costs brings together complementary skills help establish technical standards
aids competitors gain access to technology
A country raising trade barriers leads to... decreased trade importers and consumers in that country paying more other countries likely retaliating all of the above
all of the above
Hofstede's measures were very innovative, but a shortcoming is... assumes a one-to-one correspondence between culture and a country weren't responses from the average person in the country, but western oriented managers all the managers were from just one company (IBM) all of the above
all of the above
There are concerns that globalization leads to problems with all these topics except... causing inflation / raising prices the poor getting poorer greater pollution child labor
causing inflation / raising prices
Social strata are... a category of clouds hierarchical basis of social categories a famous model of Italian sports car a social media app for runners
hierarchical basis of social categories
Globalization of markets helps Apple by... decreasing costs sourcing computer components from all over the world increasing revenues making their brand stronger
increasing revenues
All the below are pros of the acquisition entry mode, except quick to execute can pre-empt competitors less risky / known performance reduces risk by sharing with a partner
reduces risk by sharing with a partner
What is globalization? viewing things as a globe process by which businesses or other organizations develop global influence businesses starting to operate on a global scale shift towards a more integrated and interdependent world economy
shift towards a more integrated and interdependent world economy
Hofstede's four dimensions of workplace culture include all except... power distance strategic synergies uncertainty avoidance masculinity-femininity
strategic synergies
When a firm looks at countries to enter it considers all of the below, except... market size & growth of each country the institutions & infrastructure of each country the control versus risk tradeoff for entry modes extent of competition in each country
the control versus risk tradeoff for entry modes
For location within a country, the stronger a competitor the entering foreign firm is... the closer to existing industry it locates the farther from existing industry it locates neither close nor far from existing industry the closer to metropolitan areas it locates
the farther from existing industry it locates
A country has comparative advantage in a good if... the slope of its production possibility frontier is steeper towards that good the slope of its production possibility frontier is flatter towards that good
the slope of its production possibility frontier is flatter towards that good
