Cross - Cultural Management BUS3801 (Chapters 4,5,6,7)

Which of the following characteristics is shared by both openness in communication and resilience in communication? A) tolerance for ambiguity B) extrovertedness C) resourcefulness D) internal locus of control

A) tolerance for ambiguity

________ is the process in which people look for the explanation of another person's behavior. A) Attribution B) Dissonance C) Miscommunication D) Affirmation

Attribution

Jerry, representing a U.S firm, is sent to Saudi Arabia to negotiate his company's contracts. Which of the following should Jerry keep in mind when negotiating with the Arabs? A) Business should be conducted personally and not via telephone or email. B) Arabs value time, and deadlines are to be kept at all costs. C) Be explicit and express doubts wherever the subject's feasibility comes into question. D) Get to the point when presenting and negotiating.

Business should be conducted personally and not via telephone or email.

________ and ________ are personality traits categorized as openness. A) Persistence; resourcefulness B) Proper orientation to knowledge; internal locus of control C) Tolerance for ambiguity; extrovertedness D) Empathy; external locus of control

C) Tolerance for ambiguity; extrovertedness

________ describes the process of sharing meaning by transmitting messages through media such as words, behavior, or material artifacts. A) Ethics B) Communication C) Planning D) Strategy

Communication

________ is the process of translating the received symbols into the interpreted message. A) Decoding B) Transmitting C) Encoding D) Fragmenting

Decoding

Which of the following is most likely a characteristic of low-context cultures? A) Work and social relationships are inseparable. B) Individuals base meaning on subtle gestures. C) Individuals must read between the lines. D) Feelings and thoughts are expressed in words.

Feelings and thoughts are expressed in words.

Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team recently arrived in China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should make token concessions to the Chinese throughout the negotiation process? A) Fizzy executives hope to have other business deals with the Chinese firm in the future. B) Fizzy executives want to demonstrate their aggressiveness and present factual appeals. C) Fizzy executives want to ensure compliance with the ringi system at the Chinese firm. D) Fizzy executives are not certain as to who has decision-making authority at the Chinese firm.

Fizzy executives hope to have other business deals with the chinese firm in the future

Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country? A) GLOCAL B) global elite C) counter trade D) global commons

GLOCAL

________ refers to the processes that management puts in place in order to direct the success of the joint venture's goals. A) IJV control B) Knowledge management C) Turnkey operations D) Offshoring

IJV control

Which of the following is the most accurate statement concerning the role of context in cross-cultural communication? A) In high-context cultures, the message is implicit; in low-context cultures, the message is explicit. B) In high-context cultures, there is a low sensory involvement; in low-context cultures, there is a high sensory involvement. C) In high-context cultures, many tasks are handled simultaneously; in low-context cultures, only one task is handled at a time. D) In high-context cultures, work time is flexible; in low-context cultures, work time is not flexible.

In high-context cultures, the message is implicit; in low-context cultures, the message is explicit.

Which of the following is true about Japanese negotiators? A) Personal benefit is the ultimate aim of the Japanese negotiators. B) Japanese negotiators are often impulsive and make decisions spontaneously. C) Japanese negotiators are outwardly expressive and take conflicts personally. D) Japanese negotiators are calm and patient, and accustomed to long, detailed negotiating

Japanese negotiators are calm and patient, and accustomed to long, detailed negotiating

Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following best supports Kevin's argument that he should be the primary negotiator? A) Kevin has an aggressive and explicit attitude. B) Kevin leads all negotiations with domestic U.S. firms. C) Kevin is the oldest and the most experienced person on the negotiating team. D) Kevin has full knowledge of guanxi; therefore, he should lead the team.

Kevin is the oldest and the most experienced person on the negotiating team

________ is one of the elements of nonverbal communication. A) Ethnicity B) Gender C) Kinesic behavior D) Language

Kinesic behavior

Which of the following tips is most likely to lead to effective intercultural communication? A) Avoid being culturally sensitive over the Internet, as it might result in discrimination. B) It is always better to use long and descriptive sentences. C) Messages need to be encoded carefully. D) Communication processes should be made quicker by removing feedback systems.

Messages need to be encoded carefully.

Which of the following is true about monochronic and polychronic cultures? A) Monochronic cultures experience time in a linear way; polychronic cultures view time as having a past, present, and future. B) Monochronic cultures treat time as a tool for bringing order to life; polychronic cultures tolerate many events occurring simultaneously. C) Monochronic cultures experience time in a nonlinear way; polychronic cultures focus on only one single event at a time. D) Monochronic cultures tolerate many events occurring simultaneously; polychronic cultures treat time as a tool for bringing order to life.

Monochronic cultures treat time as a tool for bringing order to life; polychronic cultures tolerate many events occurring simultaneously.

Which of the following is true about high-context cultures? A) One has to "read between the lines" and interpret meaning from one's general understanding. B) Communication media is entirely explicit and information is readily available. C) People convey their thoughts and plans in a direct, straightforward communication style. D) People are talkative, obvious, and redundant.

One has to "read between the lines" and interpret meaning from one's general understanding.

________ refers to how something is said rather than the content—i.e., the rate of speech, the tone and inflection of voice, other noises, laughing, or yawning. A) Proxemics B) Paralanguage C) Object language D) Kinesic behavior

Paralanguage

Which of the following is a true statement about polychronic cultures? A) Time serves to order life into compartments. B) People in polychronic cultures focus on only one task at a time. C) Polychronic people focus on relationships rather than material systems. D) Polychronic people are highly driven to complete tasks by assigned deadlines.

Polychronic people focus on relationships rather than material systems.

A ________ is an assessment of a firm's capabilities relative to those of its competitors as pertinent to the opportunities and threats in the environment for those firms. A) SWOT analysis B) transactional analysis C) PEST analysis D) break-even analysis

SWOT analysis

Larry is a top-level manager at Smart-Tech, an American semiconductor firm. Larry is involved in the negotiation procedures between Smart-Tech and a Saudi Arabian financial group. Larry has recently arrived in Saudi Arabia for the purpose of negotiating the final terms of the contract. Which of the following statements undermines the argument that Larry should adhere to a strict agenda when negotiating with the Arabs? A) Both Saudi Arabia and the United States are low-contact cultures. B) Both Saudi Arabia and the United States are high-contact cultures. C) Saudi Arabia is a polychronic culture. D) Saudi Arabia is a monochronic culture.

Saudi Arabia is a polychronic culture.

Which of the following is a true statement regarding kinesic behavior? A) Facial expressions have the same meaning across cultures. B) Minor variations in body language are insignificant. C) Hand gestures are universally interpreted. D) The meaning of body movements varies by culture.

The meaning of body movements varies by culture.

Barton & Green is an MNC based in the U.S. that makes a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following questions is the most relevant to Barton & Green's decision to outsource its IT infrastructure to TMC Enterprises, a firm in India? A) Which type of operating system is primarily used by TMC Enterprises? B) What is the attitude of U.S. consumers about TMC Enterprises? C) What is the financial health of TMC Enterprises? D) Which other firms have outsourced their processes to TMC Enterprises?

What is the financial health of TMC Enterprises?

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

Which of the following statements is true of licensing? A) Licensing restricts finances needed for international expansion. B) Cross licensing grants a company the right to use a property but does not grant it sole access to a market. C) A major advantage of licensing is that it is the least risky method of international expansion. D) Licensing increases the likelihood that a licensor's product will appear on the black market.

a major advantage of licensing is that it is the least risky method of international expansion

Intercultural communication most likely occurs when ________. A) messages are transmitted between members of the same culture B) a member of one culture sends a message to a member of another culture C) people from one culture migrate to another region D) the communication process between two cultures is hindered

a member of one culture sends a message to a member of another culture

According to the GLOBE project, a coworker or subordinate from Sweden, a country ranking low on assertiveness, would most likely prefer ________. A) explicitness in communication B) a two-way dialogue C) a gift exchange before talking business D) a direct approach along with facts and figures

a two-way dialogue

Which of the following is a venture-specific factor that affects the choice of international entry mode for a company? A) competition in local market B) level of global competition C) ability to protect proprietary technology D) corporate culture and structure

ability to protect proprietary technology

Interaction posture is best defined as the ________. A) tendency to contradict the beliefs of others B) understanding and modeling of local proxemics C) ability to respond to others in a nonjudgmental way D) capacity to be flexible to promote group communication

ability to respond to others in a nonjudgmental way

Which of the following is a competitive aspect of strategic alliances? A) sharing resources to limit investment risk when entering new markets or uncertain technological fields B) lowering exit barriers in mature industries, therefore, assisting short-term corporate restructurings C) accelerating diffusion of industry standards and new technologies to create barriers to entry D) creating a critical mass to develop new technologies to protect domestic, strategic industries

accelerating diffusion of industry standards and new technologies to create barriers to entry

Which of the following is a characteristic of a person in a monochronic culture? A) considers time to be flexible B) adheres to plan commitments C) focuses on multiple tasks at a time D) is accustomed to long-term relationships

adheres to plan commitments

Which of the following types of appeals, typically used by Arabs, is based on emotions and subjective feelings? A) factual appeals B) affective appeals C) axiomatic appeals D) virtual appeals

affective appeals

Research shows that managers from ________ have the highest tolerance for risk. A) America B) Germany C) Belgium D) Austria

america

Organizational design as a mechanism for factoring international joint venture control refers to the ________. A) human resource plans and policies of the joint venture B) market share and profitability ratios of the organization C) geographic location of the joint venture's facilities D) amount of decision-making power that the joint venture holds

amount of decision-making power that the joint venture holds

Which of the following is true about Arab negotiators? A) Arab negotiators do not use conferences as mediating devices. B) Arab negotiators generally use factual rather than affective appeals. C) Arab negotiators prefer short-term relationships to long-term relationships. D) Arab negotiators use mediators to settle disputes.

arab negotiators use meditators to settle disputes

According to Pierre Casse, Arab negotiators ________. A) are able to resist any kind of pressure B) prefer short-term relationships to long-term relationships C) confront opponents directly and openly D) do not use conferences as mediating devices

are able to resist any kind of pressure

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

assimilating network resources to acquire new skills and capabilities

Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts and effects the communication process? A) customs B) attitudes C) traditions D) values

attitudes

According to Hall and Hall, when people experience a failure in communication, they tend to blame the confusion on the other person's stupidity, deceit, or craziness. This process of trying to explain the other person's behavior is known as ________. A) cultural noise B) attribution C) stereotyping D) kinesic behavior

attribution

Which of the following types of decision making is generally used in China, Germany, Turkey, and India? A) participative B) autocratic C) totalitarian D) theocratic

autocratic

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.

avoid partners that compete in your industry if they enjoy superior bargaining power

Using a problem-solving approach during cross-cultural negotiations requires a negotiator to ________. A) reduce the amount of specific details and facts B) avoid focusing on long-term issues C) make frequent counterproposals D) avoid criticizing the other party in a personal way

avoiding criticizing the other party in a personal way

Linda, the operations executive for Tango, is asked to travel to China in order to set up a new operational facility. When negotiating with the Chinese investors, Linda should ________. A) be direct and explicit when conveying information, as time is of immense value B) be focused on establishing long-term, trusting relationships, even at the expense of some immediate returns C) be aggressive D) be quick in decision making and confront problems directly

be focused on establishing long-term, trusting relationships, even at the expense of some immediate returns

According to the research conducted by Tung et al., people in ________ are bureaucratic, educated, diversified, highly relationship-oriented, and more direct. A) Shenzhen B) Shanghai C) Beijing D) Guangzhou

beijing

________ are companies that start out with a global reach, typically by using their Internet capabilities and also through hiring people with international experience and contacts around the world. A) GLOCALS B) Global civics C) Born globals D) Global commons

born globals

In the ________ culture, negotiators tend to use the word "no" repeatedly, and they are best described as spontaneous and talkative. A) Brazilian B) Arabian C) American D) Japanese

brazilian

Brenda is the head of a sports firm in Sweden. In order to communicate effectively with her workers, Brenda should ________. A) build friendly relationships and encourage two-way dialogues B) communicate information in a direct and explicit way C) communicate information with facts and figures D) exchange gifts with her employees frequently

build friendly relationships and encourage two-way dialogues

One of the primary purposes of relationship building during the negotiation process is to ________. A) build mutual trust B) create formal contracts C) exchange task-related information D) avoid direct confrontations

build mutual trust

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

capture new innovation and ideas

The method of using extreme positions during the concessions and agreement stage of negotiation involves ________. A) careful timing of the disclosure of information and concessions B) approaching the issue in a holistic manner C) general and polite conversation to socialize D) building mutual trust before embarking on business discussions

careful timing of the disclosure of information and concessions

Which of the following is a characteristic of a person from a polychronic culture? A) focuses only on one thing at a time B) changes plans frequently C) adheres to time commitments D) is accustomed to short-term relationships

changes plans frequently

During the exchange of task-related information, who among the following people would most likely ask many questions of their counterparts, delve specifically and repeatedly into the details at hand, and provide only vague and ambiguous material during a presentation? A) Chinese B) Arabs C) Americans D) Mexicans

chinese

The most important single factor determining IJV success or failure is the ________. A) percentage of equity share held by each partner B) choice of a partner C) proprietary technologies held by a partner D) amount of decision-making control given to each firm

choice of a partner

Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels? A) outsourcing B) dumping C) franchising D) clustering

clustering

Which of the following would most likely occur in a low-contact culture? A) colleagues greeting each other by formal touch B) colleagues standing close to each other C) colleagues maintaining a respectful distance while greeting each other D) colleagues greeting each other by giving a peck on the cheek

colleagues maintaining a respectful distance while greeting each other

Futura-Core Technologies, an electronics manufacturing firm, has advantages in financial capability and sustainability, but a disadvantage in speed of innovation. It is also at a disadvantage relative to Core-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions. Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix? A) comparative advantage B) collective bargaining C) competitive advantage D) absolute advantage

comparative advantage

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

complementary products and skills

Which of the following is most likely the last stage of negotiation? A) analysis of an opponent's position B) relationship building C) concessions and agreement D) training

concessions and agreement

The dual role of strategic alliance refers to the ________. A) constant requirement of resources and markets B) process of finding skilled personnel and training them to work efficiently C) conflict between cooperation and competition D) differences between home and host governments

conflict between cooperation and competition

Which of the following is most likely a characteristic of communication channels in low-context cultures? A) rapid spread of information B) informal flow of information C) upward flow of information D) controlled flow of information

controlled flow of information

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

cooperative strategies

________ 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

cooperative strategies

Which of the following represents government influence on IJVs? A) copyright protection B) partnership of firm C) organization structure D) negotiation practice

copyright protection

Which of the following will a person working in a high-contact culture most likely experience? A) coworkers spending time together socially B) managers using hand motions to express emotion C) managers bowing to their seniors as a token of respect D) coworkers putting an arm over their colleague's back

coworkers putting an arm over their colleague's back

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

creating economies of scale in tangible assets

The need for knowledge management in IJVs primarily stems from ________. A) employee concerns regarding job security and benefits B) cultural and system differences between partners C) local government regulations and restrictions D) proprietary information legalities

cultural and system differences between partners

Which of the following terms refers to any cultural variables that undermine the communication of intended meaning? A) cultural ethics B) cultural empathy C) cultural noise D) cultural attribution

cultural noise

Which of the following variables is frequently overlooked when deciding on entry strategies and alliances, particularly when the target country is perceived to be similar to the home country? A) political stability B) culture C) currency stability D) competition

culture

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

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

Which of the following is a typical characteristic of a Japanese work group? A) open expression of conflicts B) decision making based on a patient, long-term perspective C) lack of cooperation D) lack of mutual confidence

decision making based on a patient, long-term perspective

In the American culture, which of the following is most likely to be considered a "dirty trick" during cross-cultural negotiations? A) establishing personal relationships B) deliberately distorting facts C) hard bargaining D) exchanging irrelevant information

deliberately distorting facts

When preparing for cross-cultural negotiations, managers should first evaluate their own negotiation styles in order to ________. A) understand the reasons for failing or succeeding in domestic negotiations B) determine how they differ from the norm in other countries C) analyze the various stages of the negotiation process D) assess all social and cognitive influences

determine how they differ from the norm in other countries

Which of the following is most likely to be a reason for ineffective international business negotiations? A) differences in cultural values and problem-solving techniques B) highly restrictive government legislations C) lack of socializing with the opposite party D) lack of of nonverbal communication

differences in cultural values and problem-solving techniques

Globe Cars, a leading automobile ancillary firm in China, has decided to form a global alliance with Fulda, a German tire manufacturing company. Which of the following is a primary challenge that Globe Cars is most likely to face in this alliance? A) existing competitors B) risk of investment C) extreme trade barriers in China D) differences in national cultures

differences in national cultures

Which of the following is a pitfall of cross-border alliances? A) increase in the number of existing competitors B) disputes over management C) convincing expatriates D) finding local skilled employees

disputes over management

________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level. A) Break-even points B) Comparative advantages C) Absolute advantages D) Distinctive competencies

distinctive competencies

Which of the following is NOT a knowledge management process? A) transferring existing knowledge B) transforming and creating of knowledge C) harvesting knowledge from the IJV to the parents D) distributing knowledge to clients and media outlets

distributing knowledge to clients and media outlets

According to the GLOBE project, workers from countries that ranked low on performance orientation, e.g., Russia or Greece, ________. A) do not take hard facts and figures seriously B) prefer direct and explicit communication C) make avoiding conflict a priority D) do not encourage friendly relationships

do not take hard facts and figures seriously

According to Pierre Casse, which of the following is a typical characteristic of a Swedish negotiator? A) inflexible B) down to earth and overcautious C) inefficient D) confronts openly and directly

down to earth and overcautious

NextLinx Corporation provides a wide range of strategic implementation services for small- and medium-sized organizations. It allows all trading partners to collaborate in a single online location, using the same information and processes. Therefore, NextLinx is an example of a(n) ________. A) e-commerce enabler B) knowledge management firm C) IJV controller D) outsourcing company

e-commerce enabler

Which of the following terms refers to company specialists who provide other companies with services such as Web site translation? A) e-commerce enablers B) virtual global teams C) e-businesses D) born globals

e-commerce enablers

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

economic and financial risk

The first broad scan of all potential world markets should result in the firm being able to ________. A) identify the strengths and weaknesses of its competitors B) eliminate markets with unreasonable entry conditions C) determine the best sources for raw materials D) eliminate countries with high cultural risk

eliminate markets with unreasonable entry conditions

Which of the following factors most significantly affects all other variables necessary for the successful implementation of a global alliance? A) organizational policies B) organizational structure C) employee leadership D) product performance

employee leadership

Trust improves cross-cultural communication by ________. A) making sure that all of the business transactions are based on arm's-length relationships B) replacing formal legal contracts for global firms C) encouraging the open exchange of ideas and information D) helping people plan for known circumstances

encouraging the open exchange of ideas and information

Which of the following is a way in which formal institutions affect international competition? A) decreasing trade restrictions B) enforcing organizational laws C) enforcing antidumping laws D) enforcing strict exit barriers

enforcing antidumping laws

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

environmental assessment

________ 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

environmental assessment

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

environmental scanning

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

equity strategic alliance

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

establishment of the company's mission

From an American perspective, the ________ stage of negotiation is straightforward, objective, efficient, and direct. A) relationship building B) exchanging task-related information C) nonverbal communication D) motivation

exchanging task-related information

Which of the following approaches to conflict involves handling the situation indirectly and implicitly without clear delineation of the situation from the person handling it? A) instrumental-oriented B) expressive-oriented C) objective-oriented D) problem-oriented

expressive-oriented

Which of the following environmental factors would most likely increase the risk for a firm that has established a fully owned subsidiary in a country? A) expropriation threats B) unreliable distributors C) infrastructure weaknesses D) quality control issues

expropriation threats

Research in the United States indicates that during the final stage of negotiations, it is best to start with ________. A) extreme positions B) a holistic approach C) relationship building D) finalized formal contracts

extreme positions

________ are based on what North Americans believe is objective information, presented with the assumption that it is understood by the other side on a logical basis. A) Factual appeals B) Affective appeals C) Axiomatic appeals D) Nonverbal messages

factual appeals

In high-context cultures, ________. A) feelings and thoughts are not explicitly expressed B) information is readily shared C) people have high sensory involvement D) nonverbal communication is not important

feelings and thoughts are not explicitly expressed

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

financial and currency instability

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

financial ratios

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

foreign-exchange management

Which of the following factors has the maximum influence on the success of multinational firm alliances? A) form of governance chosen B) introduction of new competition C) differing national cultures D) cumulative learning of partner

form of governance chosen

Arab negotiators will most likely make concessions because of their interest in ________. A) saving valuable time B) preventing embarrassment C) forming long-term relationships D) creating a good first impression

forming long term relationships

Which of the following statements best differentiates between franchising and licensing? A) Licensing gives a company greater control than franchising over the sale of its product in a target market. B) Franchising is common in manufacturing industries while licensing is primarily used in service industries. C) Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property. D) Licensees must often meet strict guidelines on product quality, day-to-day management duties, and marketing promotions unlike franchisees.

franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property

Which of the following cultural groups enjoys debate and conflicts and will often interrupt presentations to argue about an issue even if it has little relevance to the topic being presented? A) Mexicans B) French C) Arabs D) Chinese

french

Which of the following is an advantage of establishing a new, fully-owned foreign manufacturing? A) absence of expropriation risks B) currency stability C) full control over decision making D) repatriation

full control over decision making

Meryl Software Inc., an American MNC wishing total control of its operations, wants to acquire an existing firm, Graphiti Animations, in Canada. If acquired, Graphiti Animations would be a ________. A) fully-owned subsidiary B) holding company C) greenfield investment D) shell corporation

fully-owned subsidiary

Which of the following is a part of the rational decision-making process? A) background check on individuals involved in decision-making B) gathering and analyzing relevant data C) comparison of competitor products D) marketing the respective products or services

gathering and analyzing relevant data

Which of the following does NOT constitute a normal interpersonal communication task for managers? A) coordinating activities B) disseminating information C) motivating employees D) giving speeches at conferences

giving speeches at conferences

Which of the following is an internal factor that affects the choice of international entry mode for a company? A) potential of local market B) knowledge of local market C) industrial globalization D) global experience of firm and managers

global experience of firm and managers

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

global strategic alliance

________ refers to the establishment of worldwide operations and the development of standardized products and marketing. A) Customization B) Globalization C) Nationalization D) Regionalization

globalization

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

Dell is an American corporation that deals with computer technology. With its worldwide sourcing and fully merged production and marketing system, Dell is considered to be a ________. A) greenfield investment B) turnkey operation C) shell corporation D) globally integrated company

globally integrated company

Communication to managers is of vital importance because it ________. A) demonstrates the manager's depth of knowledge B) immediately results in an increase of revenue C) indicates technological advancement D) greatly helps in negotiating future plans

greatly helps in negotiating future plans

Which of the following terms refers to a bond between specially connected firms that generates preferential treatment to members of the network? A) kanban B) kaizen C) guanxihu D) guanxi

guanxihu

American managers believe strongly in self-determination and perceive problem situations as something they can change. This shows that they ________. A) belong to a high-context culture B) believe in socialism C) have internal locus of control D) belong to a high power distance culture

have internal locus of control

Japanese negotiators tend to ________. A) lack emotional sensitivity B) be argumentative C) hide emotions D) lack commitment to their employers

hide emotions

A ________ culture is characterized by people standing close together and touching a great deal. A) low-contact B) monochronic C) high-contact D) polychronic

high-contact

The international business manager of Toro Automobiles, based in London, is currently in Indonesia negotiating with potential partners to set up a manufacturing plant. He is intrigued and startled by the lack of apprehension shown by every person he has met in standing close to him when greeting him. This is because the persons or the groups involved in the meeting are a part of a ________. A) low-context culture B) polychronic culture C) high-context culture D) high-contact culture

high-contact culture

In ________ cultures, communication occurs within an extensive network of close personal and business relationships. A) high-contact B) monochronic C) high-context D) low-contact

high-context

In ________ cultures, people expect others to understand unarticulated moods, subtle gestures, and environmental clues. A) high-contact B) low-contact C) high-context D) monochronic

high-context

Larry is a top-level manager at Smart-Tech, an American semiconductor firm. Larry is involved in the negotiation procedures between Smart-Tech and a Saudi Arabian financial group. Larry arrives in Saudi Arabia hoping to quickly conclude the business deal. However, to his surprise the Arabs show no great interest in coming to a decision, despite several rounds of discussion. This type of behavior from the Saudi Arabian financial group is most likely attributed towards its ________. A) high-context culture B) monotheistic culture C) monochronic culture D) low-contact culture

high-context culture

The executives from Carlo Foods, United States, are in Japan to negotiate with Jeong, the head of a local investment firm. While Jeong listens to their plans, he realizes that there are considerable amounts of calculation errors in the market statistics involved in the plan. He starts showing signs of impatience and folds his hands, with a frown on his face. The executives realize that something is wrong and are confused about it. Jeong most likely belongs to a ________. A) low-contact culture B) high-context culture C) high power-distance culture D) polychronic culture

high-context culture

In the Far East, details are likely to be worked out ahead of time through the "backdoor" approach. Which of the following terms refers to this approach? A) mottainai B) lien C) guanxi D) houmani

houmani

Which of the following is the first step in developing a successful export strategy? A) identification of a potential market B) match market needs to the company's abilities C) initiation of meetings D) commitment of resources

identification of a potential market

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

implementation phase

Understanding foreign languages is especially important for international managers because of ________. A) increased diversity in the global workforce B) reduced incidence of outsourcing C) dominance of English in business communication D) decline in the status of the United States as a superpower

increased diversity in the global workforce

A negotiation support system provides support to the negotiation process by ________. A) increasing the likelihood that an agreement is reached when a zone of agreement exists B) increasing the ability to communicate nonverbally C) increasing costs associated with time delays D) increasing the fees paid to the attorneys

increasing the likelihood that an agreement is reached when a zone of agreement exists

Which of the following is an external factor that affects the choice of international entry mode for a company? A) industry growth rate B) long-term strategy C) costs of making or enforcing contracts with local partners D) intent to conduct research and development with local partners

industry growth rate

Which of the following can be regarded as a pressure to globalize? A) decreasing competitive clout B) information technology expansion C) increasing tariffs D) spread of economic nationalism

information technology expansion

ich of the following cultural norms greatly affects the negotiation process for the Chinese? A) ingrained politeness and emotional restraint B) emphasis on impersonal relationships C) belief in explicit and direct approach D) tendency to approach conflicts directly

ingrained politeness and emotional restraint

The ________ approach to conflict is being used when both parties negotiate on the basis of factual information and logical analysis. A) instrumental-oriented B) expressive-oriented C) affective-oriented D) individual-oriented

instrumental-oriented

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

internal analysis

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

internal sources

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

international joint venture

Which of the following strategies would most likely be used by a non-European company wanting to gain quick entry inside the European community? A) international joint venture B) greenfield investment C) turnkey operation D) offshoring

international joint venture

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

involvement of greater risks

International joint ventures are less likely to break up when ________. A) issues are settled before the merger B) new policies are created after the merger C) one partner has all the decision-making autonomy and the other has none D) each firm explicitly states its actions and requirements after the merger

issues are settled before the merger

Which of the following statements is true of clustering? A) It uses different suppliers and distribution channels for interdependent companies within an industry. B) It helps a firm gain an increase in efficiencies. C) It seldom uses specialized labor. D) It typically increases the costs of production and distribution.

it helps a firm gain an increase in efficiencies

Yu Fei, a negotiator for Tama Inc., has a conference with an American competitor's officials. Her seniors advise her to completely understand the Americans' viewpoint during the conference. Which of the following benefits will be most likely achieved by Yu Fei if she listens to her seniors' advice? A) It will help Yu Fei fine tune her listening skills and help point out loopholes. B) It will encourage Yu Fei to assess a wide range of alternatives for a resolution. C) It will motivate Yu Fei to adapt to the negotiation style of the Americans. D) It will help Yu Fei to delve specifically and repeatedly into the details at hand.

it will encourage Yu Fei to assess a wide range of alternatives for a resolution

Parent companies use the IJV control process in order to ensure that the management of the joint venture conforms to ________. A) international accounting standards B) qualitative standards C) its own interests D) industry standards

its own interests

Which of the following cultures views formal contracts as insulting and wasteful, and prefers to make agreements based on mutual understanding and trust? A) Swedes B) Japanese C) Russians D) Americans

japanese

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

joint venture

Opening its own subsidiaries in the host country may be better than contracting with an outside firm in the host country, if it is crucial for the firm to ________. A) produce gains in efficiency, productivity, and quality B) keep control of proprietary technology and processes C) minimize job losses in the home country D) market its products in the host country

keep control of proprietary technology and processes

Which of the following is a strategic implementation used by McDonald's? A) keeping prices low to build market share B) altering menu items significantly to match cultural norms C) using American managers to run international franchises D) forming joint ventures with foreign restaurants to enter new markets

keeping prices low to build market share

Posture, gestures, facial expressions, and eye contact are examples of ________. A) kinesic behavior B) proxemics C) paralanguage D) object language

kinesic behavior

Which of the following terms refers to the process by which the firm integrates and benefits from the experiences and skills learned by its employees? A) knowledge management B) employee value proposition C) employee retention D) business process outsourcing

knowledge management

________ is the conscious and active management of creating, disseminating, evolving, and applying facts, information, or skills acquired through experience or education, to strategic ends. A) Business continuity management B) Employee value proposition C) Knowledge management D) Employee retention

knowledge management

All of the following are cooperative aspects of strategic alliances, EXCEPT ________. A) creating economies of scale in tangible assets B) forming upstream—downstream divisions of labor C) limiting investment risks through shared resources D) learning new intangible skills from alliance partners

learning new intangible skills from alliance partners

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

legal protection

Which of the following is an area where the host government influences the strategic choices and implementations of foreign firms? A) level of taxation B) equity share in joint venture C) knowledge management D) partnership of target firms

level of taxation

Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time? A) franchising B) licensing C) management contract D) strategic alliance

licensing

________ is an ideal strategy for small businesses with few financial and managerial resources for direct investment abroad. A) A joint venture B) Licensing C) Offshoring D) A turnkey operation

licensing

In Chinese culture, the term ________ refers to a person's moral character; it is the most important thing defining that person and without it, one cannot function in society. A) mien-tzu B) lien C) guanxi D) houmani

lien

Where ownership is divided among several partners, the parent organizations are more likely to delegate the operational running of the IJV to ________. A) local IJV management B) parent company management C) middle managers at the parent company level D) management teams from the largest company in the joint venture

local IJV management

Which of the following variables is LEAST relevant to the profile of an opposing party in a cross-cultural negotiation? A) bases of trust B) value and uses of time C) risk-taking propensity D) location of the negotiation

location of the negotiation

Josh, a tourist from the United States, goes on a five-day trip to Japan. Apart from learning their rich history and heritage, he notices that people do not shake hands, but bow to each other. He is most likely to conclude that the Japanese have a ________. A) low-context culture B) monotheistic culture C) polychronic culture D) low-contact culture

low-contact culture

Al Razim, a construction engineer, recently traveled to Germany in order to find investors for his real-estate project. While he finally succeeded in getting an investor, he was surprised by the explicitness of the Germans. Sometimes all he got was a direct "No." This is because Germans are a ________ culture. A) polychronic B) high-context C) low-context D) high-contact

low-context

When encoding a message during cross-cultural communication, it is most effective for senders to ________. A) use idioms and expressions B) make gestures C) rely on personal interpretations D) speak slowly and loudly in their native language

make gestures

A ________ gives a foreign company the rights to oversee the daily operations of a business but not to make decisions regarding ownership, financing, or strategic and policy changes. A) licensing agreement B) management contract C) turnkey operation

management contract

Which of the following entry strategies is most likely to serve as a short-term strategy and to provide limited income? A) joint venture B) management contract C) offshoring D) fully owned subsidiary

management contract

According to Berdrow and Lane, the process of transfer can be defined as ________. A) managing the flow of existing knowledge between parents and from the parents to the IJV B) managing the transformation and creation of knowledge within the IJV through its independent activities C) managing the flow of transformed and newly created knowledge from the IJV back to the parents D) capturing and keeping knowledge confidential that exists among the local partners

managing the flow of existing knowledge between partners and from the partners of the IJV

According to Berdrow and Lane, the process of harvest can be defined as ________. A) managing the flow of existing knowledge between parents and from the parents to the IJV B) managing the flow of transformed and newly created knowledge from the IJV back to the parents C) capturing knowledge of local partners and keeping it confidential D) managing the transformation and creation of knowledge within the IJV through its independent activities

managing the flow of transformed and newly created knowledge from the IJV back to the parents

According to Berdrow and Lane, the process of transformation can be defined as ________. A) transforming the existing knowledge of parents and managing the flow of this transformed knowledge between parents B) managing the transformation and creation of knowledge within the IJV through its independent activities C) capturing and keeping knowledge that exists within the local partners confidential D) managing the flow of transformed and newly created knowledge from the IJV back to the parents

managing the transformation and creation of knowledge within the IJV through its independent activities

Which of the following is NOT a characteristic of strategic implementation of the 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

minimizing autonomy

Trout Corp., Kirgo Ltd., and Sturgeon Inc., three of the leading construction companies in the United States, have decided to join hands and create a new cement manufacturing company. According to their agreement, Trout Corp. will have 50 percent equity, Kirgo Ltd. will have 20 percent equity, and Sturgeon Inc. will have 30 percent equity. In this given scenario, Sturgeon Inc. is referred to as a ________. A) minority JV partner B) majority JV partner C) sole proprietor D) franchisor

minority JV partner

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

mistrust and secrecy

Classified and compartmentalized, time serves to order life in a ________. A) monochronic culture B) low-contact culture C) high-contact culture D) polychronic culture

monochronic culture

Regional strategies are more appropriate than global strategies for firms that operate in ________. A) multi-domestic industries B) high-tech industries C) newly emerging industries D) mature industries

multi-domestic industries

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

multinational, regional, and local

The initial challenge in implementing strategies in emerging markets is likely to be how to ________. A) compete with other emerging markets B) allocate responsibilities between the partners C) set up new policies and regulations D) navigate poor infrastructures

navigate poor infrastructure

Which of the following terms refers to the process by which two or more parties meet to try to reach an agreement regarding conflicting interests? A) polarization B) social loafing C) globalization D) negotiation

negotiation

Which of the following is most likely to be true about negotiators in the Far East? A) Negotiators avoid building informal relationships. B) Negotiators approach issues in a holistic manner, deciding on the whole deal at the end. C) Negotiators begin the discussions by pointing out proposals that they are prepared to accept. D) Negotiators are particular about formal contracts and insist on specific clauses.

negotiators approach issues in a holistic manner, deciding on the whole deal at the end

Which of the following best defines guanxi? A) personal reputation B) common group goals C) network of personal relations D) unacceptable negotiating tactics

network of personal relations

Which of the following behaviors is NOT consistent with Casse's profile of successful American negotiators? A) refuses to make concessions in advance B) exhibits a good sense of timing C) never compromises D) understands the issues

never compromises

Which of the following is generally viewed as the most risky entry strategy? A) turnkey operations B) new, fully-owned subsidiaries C) international joint ventures D) service sector outsourcing

new, fully-owned subsidiaries

The Japanese preference for humanity, reciprocity, and analytic logic is known as ________. A) kieretsu B) ringi-sho C) ningensei D) allogato

ningensei

Anything that serves to undermine the communication of the intended meaning is known as ________. A) noise B) encoded message C) decoded message D) feedback

noise

Phil sent an email requesting Mel to join him in the conference room at 2 P.M. and to bring the final report on the building's floor plans. However, Mel's personal secretary skips reading the entire email and just informs Mel to join Phil in the conference room at 2 P.M. This is an example of ________. A) ambiguity B) divergence C) noise D) feedback

noise

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

non-equity strategic alliance

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

non-equity strategic alliances

Which of the following terms refers to general, polite conversation and informal communication before meetings? A) nontask sounding B) cultural noise C) kinesics behavior D) nonverbal behavior

nontask sounding

The term ________ refers to behavior that communicates without words. A) thought patterns B) nonverbal communication C) intrapersonal communication D) cultural noise

nonverbal communication

Which of the following is most likely a subtle and complex behavior that makes cross-cultural negotiations difficult? A) developing goals of negotiation B) nonverbal communication C) exchanging objective information D) employing information technology

nonverbal communication

The manner in which people communicate through material artifacts such as architecture, office design, and cars is known as ________. A) object language B) oculesics C) paralanguage D) proxemics

object language

Subtle differences in eye behavior are known as ________. A) proxemics B) tics C) stereotypes D) oculesics

oculesics

The tendency of Americans to look people in the eye contrasts with the tendency of the British to keep looking away while conversing. Such differences are categorized as ________. A) oculesics B) proxemics C) paralanguage D) object language

oculesics

Which of the following is a cultural difference that can significantly affect cross-border alliances? A) use of e-commerce enablers B) emergence of market firms in the host country C) organizational formality D) protectionist legislation

organizational formality

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 D) SWOT analysis

organizational mission

Recognizing that one's knowledge, perceptions, and beliefs are valid only for oneself and not for everyone else is known as ________. A) other-oriented role behavior B) orientation to knowledge C) tolerance for ambiguity D) interaction posture

orientation to knowledge

The use of professional or skilled workers located in countries other than that of the home country is referred to as ________. A) franchising B) licensing C) outsourcing D) importing

outsourcing

Barton & Green is an MNC based in the United States that provides a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following best supports the argument that Barton & Green should outsource its IT infrastructure to TMC Enterprises, one of the best IT infrastructure maintenance firms in India? A) The main competitor of Barton & Green outsources all IT functions. B) Outsourcing will enhance Barton & Green's competitiveness. C) Barton & Green's employees frequently need IT support, so it is best to outsource the IT infrastructure. D) Barton & Green has proprietary technology and processes.

outsourcing will enhance Barton & Green's competitiveness

Panera Bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. The company began in 1981 with stores primarily located along the east coast of the United States. Since then, the firm has expanded to over 1,300 locations throughout the United States and Canada. The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following, if true, supports the argument that Panera Bread should expand into Asia through franchising? A) Panera Bread executives want to test the Asian market with a short-term commitment that allows them to make quick profits. B) Panera Bread executives want fast access to the Asian market without a significant investment of capital. C) The Panera Bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. D) The Panera Bread mission is to make excellent bread available to customers around the world.

panera bread executives want fast access to the asian market without a significant investment of capital

Changing the meaning of words by changing the inflection of your voice is an example of ________. A) paralanguage B) object language C) proxemics D) oculesics

paralanguage

The considerable variation between Americans and Chinese in the use of silence during meetings is an aspect of ________. A) proxemics B) haptics C) paralanguage D) object language

paralanguage

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

partners can become competitors

What forms the basis for the enforcement of most business contracts in Mexico and China? A) legal systems B) scientific research C) personal commitments to individuals D) international regulations

personal commitments to individuals

During which stage of the negotiations process does hard bargaining begin? A) persuasion B) relationship building C) information gathering D) agreement

persuasion

Which of the following stages of negotiations is most likely to take place immediately after the exchange of task-related information? A) relationship building B) persuasion C) preparation D) concessions and agreement

persuasion

In ________ cultures, people tolerate many things occurring simultaneously and change plans frequently. A) polychronic B) low-contact C) material D) haptic

polychronic

As manager with an international trade firm, John Smith frequently travels between Europe and Saudi Arabia. On John's most recent trip to Saudi Arabia, he noticed that Tariq, his business associate, not only talked about business matters but also talked about several other things, such as upcoming events in Saudi Arabia and the associated impact on the economy. This most likely indicates that Tariq is from a ________. A) low-contact culture B) polychronic culture C) low-context culture D) high power-distance culture

polychronic culture

Which of the following serves as a bridge from relationship building to the more formal stages of negotiating? A) mediating B) posturing C) conceding D) evaluating

posturing

According to Adler, in order to understand the perspectives of both sides and to prepare for meetings effectively, a negotiator must ________. A) avoid the use of nonverbal communication B) engage in lengthy, evasive conversations C) practice role reversal D) avoid direct conflicts

practice role reversal

What is the best method for avoiding miscommunication? A) taking detailed notes of the messages B) learning foreign phrases and idioms C) practicing projective listening D) relying on technology to interpret meanings

practicing projective listening

Which of the following is one of the stages in the negotiation process? A) preparation B) link building C) feedback D) orientation

preparation

A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. Which of the following terms best describes the Frenchman's mistake? A) cognitive dissonance B) moral idealism C) parochialism D) projective cognitive similarity

projective cognitive similarity

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

provide greater control of proprietary technology

Tom manages a U.S. pharmaceutical subsidiary located in Ireland. In order to communicate effectively with Irish employees and improve their productivity, Tom should ________. A) emphasize achieving objective end results B) challenge the employees to perform better C) provide positive support to employees D) address conflicts during group meetings

provide positive support to employees

Which of the following most likely encourages firms to localize? A) increasing tariffs at the host country B) providing domestic subsidies C) demand for undifferentiated, standardized products D) need for economies of scale

providing domestic subsidies

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

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

Which of the following terms refers to the influence of closeness and space on communication? A) oculesics B) kinesics C) aesthetics D) proxemics

proxemics

Panera Bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. The company began in 1981 with stores primarily located along the east coast of the United States. Since then, the firm has expanded to over 1,300 locations throughout the United States and Canada. The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following, if true, undermines the argument that Panera Bread should expand into Asia through franchising? A) Quality control is a high priority for Panera Bread. B) Panera Bread wants to access the Asian market quickly. C) Panera Bread's primary competitor has already expanded to Asia. D) Many Panera Bread managers have expressed interest in relocating to Asia.

quality control is a high priority for panera bread

Which of the following is the primary advantage of using e-business as a local-level entry strategy? A) shared costs and risks B) access to highly skilled workers C) rapid entry and exit from markets D) avoidance of tariffs and regulations

rapid entry and exit from markets

For long-term positive relations, the goal of negotiation should most likely be to ________. A) establish clear objectives of the parties involved B) reach a settlement that benefits all parties C) establish a clear line of communication D) avoid nonverbal communication

reach a settlement that benefits all parties

Which of the following is a characteristic of the Japanese ningensei style? A) reciprocity B) explicitness C) verbal agility D) immediate feedback

reciprocity

All of the following are examples of IJV control mechanisms used by parent firms EXCEPT ________. A) staffing policies B) legal contracts C) regional authorities D) organizational design

regional authorities

In the negotiation process, participation in social events, tours, ceremonies, and informal conversation is a characteristic of the ________ stage. A) preparation B) information exchange C) relationship building D) concessions and agreement

relationship building

Which aspect of the negotiation process will most likely occur on a continuous basis? A) persuasion B) relationship building C) preparation D) concessions and agreement

relationship building

Which of the following aspects of negotiating is most closely associated with nontask sounding? A) relationship building B) information exchange C) persuasion D) final agreement stage

relationship building

________ is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions. A) Exchange of task-related information B) Relationship building C) Conflict management D) Persuasion

relationship building

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

resources and operations

In Japanese culture, the term ________ refers to a process which involves gaining approval on a proposal by circulating documents to those concerned throughout the company. It usually comprises four steps: proposal, circulation, approval, and record. A) nemawashi B) kaizen C) shinyo D) ringi

rinigi

During a business meeting in the United States, a relaxed posture is acceptable, but in Europe or Asia such body language would most likely be interpreted as ________. A) personal space invasion B) rudeness C) curiosity D) reluctance

rudeness

Which of the following is a typical task performed by e-commerce enablers? A) evaluating skill sets of personnel B) conducting performance appraisals C) establishing criteria for partnership D) screening orders

screening orders

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

According to Ghemawat, which of the following offers room for cross-border strategy to have content distinct from single-country strategy? A) regional integration B) nationalization C) semi-globalization D) privatization

semi-globalization

According to the research conducted by Tung et al., which of the following cities in China has people who are business-savvy, confident, career-oriented, and materialistic? A) Beijing B) Chengdu C) Shanghai D) Guangzhou

shanghai

Which of the following will help an international business manager cultivate trust in cross-cultural communications? A) staying away from conflicts that need to be addressed B) making communications as formal as possible and refraining from open communications C) socializing when possible and making friendly contacts with persons involved D) establishing trust and achieving hidden agenda without being conspicuous

socializing when possible and making friendly contacts with persons involved

Axiomatic appeals are generally based on ________. A) socially accepted ideals B) level of loyalty C) subjective feelings D) objective information

socially accepted ideals

Which of the following terms refers to the nature and appearance of the relationship between the people pursuing common goals in a negotiation? A) software of negotiation B) diplomacy of negotiation C) objectivity of negotiation D) transparency of negotiation

software of negotiation

Which of the following primarily determines the extent of control exercised over an IJV by its parent company? A) staffing choices for top IJV positions B) policies of the smaller firm C) cultural background D) IJV industry

staffing choices for top IJV positions

Which of the following human resource problems can be simplified by increasing the autonomy of the IJV? A) workplace deviance B) employment discrimination C) staffing friction D) employee silence

staffing friction

Which of the following is an example of proxemics? A) using facial expressions B) standing close to others C) speaking quickly D) using a translator

standing close to others

According to Pierre Casse, which of the following is a typical characteristic of a successful Indian negotiator? A) never changes his or her mind B) lacks patience C) uses trade secrets to strengthen his position D) stays humble and trusts the opponent

stays humble and trusts the opponent

In an interview, a British journalist asked a German athlete, "Are you a typical German?" When asked to clarify, the journalist explained that a typical German loved machines, worked hard, and was dependable. This is an example of ________. A) cultural noise B) discrimination C) kinesic behavior D) stereotyping

stereotyping

Which of the following is the quickest and cheapest way to develop a global strategy? A) fully-owned subsidiaries B) greenfield investments C) strategic alliances D) acquisitions

strategic alliances

________ 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

strategic alliances

Jamie decides to plan his strategies for starting an electric equipment manufacturing company. His main aim is to ensure that it runs efficiently. He decides to do this in two phases: the planning phase and the implementation phase. Which of the following processes is Jamie employing? A) retrenchment B) organizational restructuring C) strategic management D) globalization

strategic management

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

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

________ 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

The Topangins are a minority group in the Canary Island, with a set of preferences, attitudes, and taboos, distinct from that of the national culture. Therefore, they are often overlooked when foreign businesses choose to customize their products for the inhabitants of the islands. The Toro-Hessian community is an example of ________. A) cultural universal B) monoculture C) subculture D) stratification

subculture

Which of the following is a common Chinese tactic used during negotiations with Americans? A) refusing to answer the Americans' inquiries B) suggesting that the Americans are reneging on their friendship C) refusing to compromise until the last possible moment D) asking for concessions relating to product cost and delivery time

suggesting that the Americans are reneging on their friendship

In which of the following countries do people typically begin the concessions and agreement stage of negotiation with what they are prepared to accept rather than take extreme positions? A) China B) Sweden C) Russia D) United States

sweden

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

Overlooking cultural differences in cross-border alliances can create a negative impact when ________. A) target country has similar views on organizational formality B) target country and host country equally participate in decision making C) target country is technologically superior to the host country D) target country has conflicting practices and systems

target country has conflicting practices and systems

What are the two negotiation stages that Americans should expect when negotiating with the Chinese? A) informational and agreement B) gift-exchange and socializing C) propositions and marketing D) technical and commercial

technical and commercial

Business people report two major areas of conflict in negotiating with the Chinese—their apparent insincerity about reaching an agreement and ________. A) their unwillingness to develop relationships beyond a superficial level B) their insistence on a compromise whenever progress becomes difficult C) the amount of details desired about product characteristics D) the use of bureaucratic mechanisms to stall negotiations

the amount of details desired about the product characteristics

Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should be prepared with specific details about the product specifications and technology that will be used? A) The Chinese firm has joint ventures with many international firms. B) The Chinese firm is state-owned and located in Beijing. C) The Chinese firm uses a two-stage negotiation process: the technical and the commercial. D) The Chinese firm reportedly uses delay tactics during negotiations.

the chinese firm uses a two-stage negotiation process: the technical and the commercial

Which of the following statements is true regarding a negotiation process? A) The negotiation process consists of six different stages. B) The stages of the negotiation process are distinctly separate. C) The concession and agreement stage typically occurs before the preparation stage. D) The cultural norms of the place determine the order of the negotiation process stages.

the cultural norms of the place determine the order of the negotiation process stages

Which of the following is the primary cause of noise in the communication process? A) a lack of cultural empathy B) ineffective listening skills C) the technology used in the medium of communication D) the difference between two individuals' life space

the difference between two individuals' life space

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

With regard to less-developed countries, most problems with international joint ventures involve ________. A) the parent corporation B) the local partner C) differences in accounting standards between nations D) differences in control system information management between nations

the local partner

Licensing is especially suitable for ________. A) firms with a single product line and a constant technological environment B) large firms with huge financial and managerial resources for direct investment abroad C) the mature phase of a product's life cycle when production is relatively standardized D) firms that want to control all of the licensee's activities and performances

the mature phase of a product's life cycle when production is relatively standardized

International joint ventures are like a marriage because ________. A) the firms cannot be separated into single entities after the merging B) each firm will have access to all of the others' proprietary technologies and competitively sensitive information C) the more issues that can be settled before the merger, the less likely it will be to break up D) each firm will have equal decision-making powers

the more issues that can be settled before the merger, the less likely it will be to break up

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

the partners local contacts and markets will be utilized

According to Gupta and Govindarajan, an alliance-based entry strategy is most suitable when ________. A) firms have a significant amount of capital B) the risk of asymmetric learning by the partner is low C) cultural distance between home and host countries is extremely low D) the subsidiary would be highly integrated with the rest of the global operations

the risk of asymmetric learning by the partner is low

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.

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

In a cross-border alliance, cultural differences can be overlooked when ________. A) the target country is similar to the home country B) when there is a considerable difference in practices of the target country C) the target country has a high number of domestic mergers D) the target country insists on participating in the decision-making processes

the target country is similar to the home country

In spite of the potential problems with local partners, many firms rush the process of partner selection because ________. A) they want to reduce the amount spent on establishing subsidiaries abroad B) they want to take advantage of the local partner's technological innovations C) they mostly aim at increasing the number of equity shares within a short period of time D) they are anxious to get into an attractive market

they are anxious to get into an attractive market

Which of the following best describes the role of e-commerce enablers? A) They facilitate multinational companies to collaborate with medium-sized organizations. B) They allow innovative transnational companies to gain entry into foreign markets. C) They help small- and medium-sized companies to go global without the internal capabilities to carry out global activities. D) They reduce the risks involved in joint venture and other forms of alliances.

they help small and medium sized companies to go global without the internal capabilities to carry out global activities

Which of the following is true about the negotiating tactics used by the Russians? A) They are quick decision makers. B) They believe that "time is money." C) They stall for time. D) They are outwardly expressive.

they stall for time

Which of the following is a similarity between the negotiation styles of both North Americans and Latin Americans? A) They highly value emotional sensitivity. B) They display strong commitment to their employers. C) They give great importance to documentation. D) They tend to be argumentative when they think they are right.

they tend to be argumentative when they think they are right

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

to gain rapid entry into a new and consolidating market

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

to test marketing campaigns overseas

Offshoring provides the company with access to foreign markets while avoiding ________. A) relocation of the company to other countries B) competition between companies in the global market C) trade risks D) trade barriers

trade barriers

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

trade barriers

Which of the following terms suggests that global sourcing can produce gains in efficiency, productivity, quality, and profitability by fully leveraging talent around the world? A) transformational outsourcing B) business process reengineering C) inverted sourcing D) lean integration

transformational outsourcing

Which of the following is one of the reasons that language frequently causes miscommunication during international business situations? A) frequent use of idioms with explanations B) translating a local language too literally C) speaking the local language with a native accent D) conveying information using appropriate body language or symbols

translating a local language too literally

Which of the following is a contractual entry mode? A) wholly owned subsidies B) turnkey projects C) joint ventures D) strategic alliances

turnkey projects

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

two Venezuelan companies sharing ownership of a company in Venezuela

In the American culture, which of the following is most likely considered a rough tactic used during negotiations? A) confrontations during conflicts B) use of emotional appeals C) informal seating arrangement D) uncomfortable room temperatures

uncomfortable room temperatures

Which of the following most likely provides a strategic advantage during the implementation of a global alliance? A) non-collaboration in competitively sensitive areas B) unified technology infrastructure C) centralized decision making by one partner D) high levels of competition between the partners

unified technology infrastructure

The primary motive in the contract manufacturing strategy is ________. A) utilizing inexpensive overseas labor B) obtaining rights to patented technology C) sharing managerial expertise D) sharing financial resources

utilizing inexpensive overseas labor

Which of the following is an element of paralanguage? A) hand gesture B) body posture C) yawning D) personal touch

yawning