IBC201 Final

Ace your homework & exams now with Quizwiz!

"Balance in synergy" would require a moving away from all of the following except: A. Individualistic thinking B. Avoidance of risk taking C. Holistic and idealistic thinking D. Emphasis on control

"Expanding the pie" as a method of generating alternative solutions is a complex process, as it requires much more detailed information about the other party than do other methods.

"Transformational leaders are able to get their followers to question old paradigms and to accept new views of the world regarding how things now need to be done". Which characteristic factor of transformational leaders is being described? A. Idealized influence B. Inspirational motivation C. Intellectual stimulation D. Individualized consideration

'Dirigiste' is used to describe the _____ dimension. A. Economics B. Philosophical C. Cultural D. Structural

1. Transaction exposure is defined as A. the sensitivity of realized domestic currency values of the firm's contractual cash flows denominated in foreign currencies to unexpected exchange rate changes. B. the extent to which the value of the firm would be affected by unanticipated changes in exchange rate. C. the potential that the firm's consolidated financial statement can be affected by changes in exchange rates. D. ex post and ex ante currency exposures.

10. With any successful hedge A. you are guaranteed to lose money on one side. B. you can avoid the accounting ramifications of a loss on one side by keeping it off the books. C. both a and b D. none of the above

101. A 5-year swap contract can be viewed as a portfolio of 5 forward contracts with maturities of 1,2,3,4 and 5 years.One important exception is that A)the forward price is the same for the swap contract but not for the forward contracts. B)the swap contract will have daily resettlement. C)the forward contracts will have resettlement risk. D)none of the above.

104. Generally speaking, a firm with recurrent exposure can best hedge using which product? A)Options B)Swaps C)Futures D)All of the above

105. The current exchange rate is €1.25 = £1.00 and a British firm offers a French customer the choice of paying a £10,000 bill due in 90 days with either £10,000 or €12,500. A)The seller has given the buyer an at-the-money put option. B)The seller has given the buyer an at-the-money call option. C)Both a) and b) are correct D)None of the above

107. An exporter faced with exposure to a depreciating currency can reduce transaction exposure with a strategy of A)paying or collecting early. B)paying or collecting late. C)paying late, collecting early. D)paying early, collecting late.

108. An exporter faced with exposure to an appreciating currency can reduce transaction exposure with a strategy of A)paying or collecting early. B)paying or collecting late. C)paying late, collecting early. D)paying early, collecting late.

109. Find the net exposure of the MNC with the following intra affiliate transactions shown. A)$55 B)$65 C)$800 D)none of the above

11. The choice between a forward market hedge and a money market hedge often comes down to A. interest rate parity. B. option pricing. C. flexibility and availability. D. none of the above

110. In evaluating the pros and cons of corporate risk management,one argument against hedging is A)if the corporate guys were good at forecasting exchange rates, they would make more money on Wall Street, so only incompetent managers are left at corporations to hedge. B)shareholders who are diversified have already managed their exchange rate risk. C)the hedging costs go into someone else's pocket. D)none of the above

111. If a firm faces progressive tax rates, A)they should spread income out across time and subsidiaries. B)they should focus on maximizing income in one division or subsidiary. C)they should manage their income recognition without regard to their taxes. D)none of the above

113. ABC Inc.,an exporting firm,expects to earn $20 million if the dollar depreciates,but only $10 million if the dollar appreciates.Assume that the dollar has an equal chance of appreciating or depreciating.Calculate the expected tax of ABC if it is operating in a foreign country that has progressive corporate taxes as shown below: Corporate income tax rate = 15% for the first $7,500,000. Corporate income tax rate = 30% for earnings exceeding $7,500,000. A)$3,375,000 B)$6,000,000 C)$1,500,000 D)$4,500,000

114. ABC Inc.,an exporting firm,expects to earn $20 million if the dollar depreciates,but only $10 million if the dollar appreciates.Assume that the dollar has an equal chance of appreciating or depreciating.Step one: calculate the expected tax of ABC if it is operating in a foreign country that has progressive corporate taxes as shown below: Corporate income tax rate = 15% for the first $7,500,000. Corporate income tax rate = 30% for earnings exceeding $7,500,000. Step two: ABC is considering implementing a hedging program that will eliminate their exchange rate risk: they will make a certain $15 million whether or not the dollar appreciates or depreciates.How much will they save in taxes if they implement the program? A)$0 B)$3,375,000 C)$1,500,000 D)$4,500,000

12. Since a corporation can hedge exchange rate exposure at low cost A. there is no benefit to the shareholders in an efficient market. B. shareholders would benefit from the risk reduction that hedging offers. C. the corporation's banker would benefit from the risk reduction that hedging offers. D. none of the above

13. A CFO should be least worried about A. transaction exposure. B. translation exposure. C. economic exposure. D. none of the above

14. Exchange rate risk of a foreign currency payable is an example of A. transaction exposure. B. translation exposure. C. economic exposure. D. none of the above

15. A stock market investor would pay attention to A. anticipated changes in exchange rates that have been already discounted and reflected in the firm's value. B. unanticipated changes in exchange rates that have not been discounted and reflected in the firm's value.

16. Your firm has a British customer that is willing to place a $1 million order, but wants to pay in pounds instead of dollars. The spot exchange rate is $1.85 = £1.00 and the one-year forward rate is $1.90 = £1.00. The lead time on the order is such that payment is due in one year. What is the fairest exchange rate to use? A. $1.85 = £1.00 B. $1.8750 = £1.00 C. $1.90 = £1.00 D. none of the above

17. Your firm has a British customer that is willing to place a $1 million order (with payment due in 6 months), but insists upon paying in pounds instead of dollars. A. The customer essentially wants you to discount your price by the value of a put option on pounds. B. The customer essentially wants you to discount your price by the value of a call option on pounds. C. None of the above

18. From the perspective of a corporate CFO, when hedging a payable versus a receivable A. credit risk considerations are more germane for a payable. B. credit risk considerations are more germane for a receivable. C. none of the above

19. A U.S. firm has sold an Italian firm €1,000,000 worth of product. In one year the U.S. firm gets paid. To hedge, the U.S. firm bought put options on the euro with a strike price of $1.65. They paid an option premium $0.01 per euro. If at maturity, the exchange rate is $1.60, A. the firm will realize $1,145,000 on the sale net of the cost of hedging. B. the firm will realize $1,150,000 on the sale net of the cost of hedging. C. the firm will realize $1,140,000 on the sale net of the cost of hedging. D. none of the above

2. The most direct and popular way of hedging transaction exposure is by A. exchange-traded futures options. B. currency forward contracts. C. foreign currency warrants. D. borrowing and lending in the domestic and foreign money markets.

20. Buying a currency option provides A. a flexible hedge against exchange exposure. B. limits the downside risk while preserving the upside potential. C. a right, but not an obligation, to buy or sell a currency. D. all of the above

21. Communication is the process of: A. transferring meanings from sender to receiver. B. choosing a course of action among alternatives. C. giving teams the resources they need to develop ideas and effectively implement them. D. using reports and other written forms to control business operations.

21. Countries can have only one culture; however cultures can span national borders.

21. Which of the following options strategies are internally consistent? A. Sell puts and buy calls B. Buy puts and sell calls C. Buy puts and buy calls D. Both a and b

22. The notion that negotiation is both art and science is especially valid at the cross-cultural or international level.

22. XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank in Tokyo. Which of the following is NOT part of a money market hedge? A. Buy the ¥750 million at the forward exchange rate. B. Find the present value of ¥750 million at the Japanese interest rate. C. Buy that much yen at the spot exchange rate. D. Invest in risk-free Japanese securities with the same maturity as the accounts payable obligation.

22. _____ is the information that surrounds a communication and helps convey the message. A. Contingency B. Stipulation C. Context D. Circumstance

23. Messages are implicit and often highly coded in: A. low-context societies. B. moderate-context societies. C. high-context societies. D. variable-context societies.

23. There are six factors in the environmental context that make international negotiations more challenging than domestic negotiations and these factors can act to limit or constrain organizations that operate internationally whether negotiators understand or appreciate their effects..

23. XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank in Tokyo. The current spot rate is ¥116/$1.00 and the one year forward rate is ¥109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. The future dollar cost of meeting this obligation using the money market hedge is A. $6,450,000. B. $6,545,400. C. $6,653,833. D. $6,880,734.

24. In terms of verbal communication styles, an example of a low-context society is _____. A. Canada B. Japan C. Italy D. Brazil

24. Political considerations may enhance or detract from the conduct of business negotiations in various countries at different times.

24. XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank in Tokyo. The current spot rate is ¥116/$1.00 and the one year forward rate is ¥109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. The future dollar cost of meeting this obligation using the forward hedge is A. $6,450,000. B. $6,545,400. C. $6,653,833. D. $6,880,734.

25. Ideological clashes increase the communication challenges in cross-border negotiations in the broadest sense because the parties may disagree on the most fundamental levels about what is being negotiated.

25. In terms of verbal communication styles, an example of a high-context society is _____. A. Iceland B. Australia C. Canada D. Japan

25. To hedge a foreign currency payable, A. buy call options on the foreign currency. B. buy put options on the foreign currency. C. sell call options on the foreign currency. D. sell put options on the foreign currency.

26. In all cross-cultural negotiations, both parties approach the negotiation deductively.

26. Researchers have found that the contextual style of communication is often associated with: A. low-power-distance, collective, high-context cultures. B. low-power-distance, individualistic, high-context cultures. C. high-power-distance, individualistic, low-context cultures. D. high-power-distance, collective, high-context cultures.

26. To hedge a foreign currency receivable, A. buy call options on the foreign currency with a strike in the domestic currency. B. buy put options on the foreign currency with a strike in the domestic currency. C. sell call options on the foreign currency with a strike in the domestic currency. D. sell put options on the foreign currency with a strike in the domestic currency.

27. A call option on £1,000 with a strike price of €1,250 is equivalent to A. a put option on €1,250 with an exercise price of €1,000. B. a portfolio of options: a put on €1,250 with a strike price in dollars plus a call on £1,000 with a strike price in dollars. C. a put option on £1,000 with an exercise price of €1,250. D. both a and b

27. High-conflict situations that are based on ethnicity, identity or geography are most easy to resolve.

27. Which of the following are the three degrees of communication quantity? A. Elaborate, exacting, and succinct B. Unified, equivocal, and refined C. Succinct, affective, and precise D. Flexible, detailed, and fixed

28. A call option to buy £10,000 at a strike price of $1.80 = £1.00 is equivalent to A. a put option to sell $18,000 at a strike price of $1.80 = £1.00. B. a call option on $18,000 at a strike price of $1.80 = £1.00. C. a put option on £10,000 at a strike price of $1.80 = £1.00. D. none of the above

28. The relationship the principal negotiating parties develop before the actual negotiations will have an important impact on the negotiation process and outcome.

28. The steps taken to improve communication effectiveness in the international arena include all of the following except: A. improving feedback systems. B. incorporating U.S. values regarding time into international operations. C. providing language and cultural training. D. increasing flexibility and cooperation.

29. A put option to sell $18,000 at a strike price of $1.80 = £1.00 is equivalent to A. a call option to buy £10,000 at a strike price of $1.80 = £1.00. B. a call option on $18,000 at a strike price of $1.80 = £1.00. C. a put option on £10,000 at a strike price of $1.80 = £1.00. D. none of the above

29. Tangible and intangible factors play only a minor role in determining the outcomes of cross-border negotiations.

29. Which of the following styles of communication focuses on precision and the use of the right amount of words to convey the message? A. Flexible B. Succinct C. Elaborate D. Exacting

3. If you have a long position in a foreign currency, you can hedge with: A. A short position in an exchange-traded futures option B. A short position in a currency forward contract C. A short position in foreign currency warrants D. Borrowing (not lending) in the domestic and foreign money markets

30. Many popular books and articles on international negotiation treat culture as expected behavior, providing lists of dos and don'ts to obey when negotiating with people from different cultures.

30. The _____ communication style is most common in Asia, where people tend to say few words and allow understatements, pauses, and silence to convey meaning. A. succinct B. exacting C. flexible D. elaborate

30. XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank in Tokyo. The current spot rate is ¥116/$1.00 and the one year forward rate is ¥109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. Assume that the forward rate is the best predictor of the future spot rate. The future dollar cost of meeting this obligation using the option hedge is A. $6,450,000. B. $6,545,400. C. $6,653,833. D. $6,880,734.

31. Multiparty negotiations differ from two-party deliberations in which of the following ways? A) Multiparty negotiations have more negotiators at the table. B) More issues and more information are introduced than when two parties negotiate. C) The environment changes from a one-on-one dialogue to small group discussion. D) The process for multiparty negotiators is more complex than two-party ones. E) All of the above statements about multiparty negotiations are true.

31. The "culture-as-shared-values" approach has advantages over the "culture-as-dialectic" approach because it can explain variations within cultures.

31. Which of the following is not a property of a coalition? A) A coalition is an interacting group of individuals. B) A coalition is independent of the formal structure of the organization. C) A coalition consists of mutually perceived membership. D) A coalition is focused on a goal or goals internal to the coalition. E) All of the above are properties of coalitions.

31. Which of the following styles of communication focuses on the speaker and relationship of the parties? A. Personal B. Contextual C. Individual D. Indigenous

31. Your U.S. firm has a £100,000 payable with a 3-month maturity. Which of the following will hedge your liability? A. Buy the present value of £100,000 today at the spot exchange rate, invest in the U.K. at i£. B. Buy a call option on £100,000 with a strike price in dollars. C. Take a long position in a forward contract on £100,000 with a 3-month maturity. D. All of the above

32. A coalition is determined by the commitment of its members to A) meet on a regular basis. B) collectively focus their action on an intended target. C) the formal hierarchy of the coalition. D) maintain regular and accurate communication. E) A coalition is determined by the commitment of its members to all of the above.

32. A(n) _____ style of communication focuses on the speaker and the reduction of barriers between the parties. A. personal B. contextual C. affective D. instrumental

32. One of the most fundamental consequences of increasing the number of parties in a negotiation is that A) the negotiation situation tends to become less lucid. B) the negotiation situation tends to become more complex. C) the negotiation situation tends to become more demanding. D) there will be more values, interests, and perceptions to be integrated or accommodated. E) All of the above are fundamental consequences of increasing the number of parties in a negotiation.

32. Outside of North America there appears to be a great deal of variation across cultures in the extent to which negotiation situations are initially perceived as distributive or integrative

32. Your U.S. firm has a £100,000 payable with a 3-month maturity. Which of the following will hedge your liability? A. Buy a call option on £100,000 with a strike price in euro. B. Buy a put option on £100,000 with a strike price in dollars. C. Buy a call option on £100,000 with a strike price in dollars. D. None of the above

33. In contrast to the contextual style, the personal style is more popular in: A. low-power-distance, collective, high-context cultures. B. low-power-distance, individualistic, low-context cultures. C. high-power-distance, individualistic, low-context cultures. D. high-power-distance, collective, high-context cultures.

33. Risk-oriented cultures will be more willing to move early on a deal and will generally take more chances.

33. What is the result of procedural complexity in multiparty negotiations? A) The fewer the number of parties, the more complex the decision making process becomes. B) The increased number of negotiators will streamline the decision making process. C) Negotiators can ignore the problem of multiple related issues. D) Negotiators will probably have to devote discussion time to how they will manage the process to arrive at the type of solution or agreement they want. E) All of the above are the result of procedural complexity in multiparty negotiations.

33. Which of the following lists three of the major types of coalitions? A) potential coalitions, operating coalitions, and recurring coalitions B) external coalitions, operating coalitions, and recurring coalitions C) latent coalitions, established coalitions, and potential coalitions D) established coalitions, operating coalitions, and temporary coalitions E) None of the above lists three major types of coalitions.

34. In multiparty negotiations, research shows that parties who approached multiple issues simultaneously: A) achieved lower quality agreements. B) increased the likelihood of achieving agreement. C) exchanged less information. D) have less insight into the preferences and priorities of the other parties at the table. E) Research shows that parties who approached multiple issues simultaneously achieved all of the above.

34. Research studies suggest that culture does have an effect of negotiation outcomes, although it may not be direct and it likely has an influence through differences in the negotiation process in different cultures

34. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts) are available on the London exchange in units of €10,000 with strike prices of £0.80 = €1.00. Options (calls and puts) are available on the Frankfurt exchange in units of £10,000 with strike prices of €1.25 = £1.00. For a U.K. firm to hedge a €100,000 receivable, A. buy 10 call options on the euro with a strike in pounds sterling. B. buy 8 put options on the pound with a strike in euro. C. buy 10 put options on the euro with a strike in pounds sterling. D. buy 8 call options on the pound with a strike in euro. E. both a and b F. both c and d

34. Tactics used in international negotiation include: A. location, time limits, and buyer-seller relations. B. buyer-seller relations, verbal behaviors, and chromatics. C. location, barrier-free linguistics, and nonverbal behaviors. D. time limits, mental imaging, and buyer-seller relations.

34. ____________ ____________ are emergent interest groups that have not yet formed into an operating coalition. A) Informal coalitions B) Formal coalitions C) Latent coalitions D) Dormant coalitions E) All of the above are emergent interest groups that have not yet formed into an operating coalition.

35. One-on-one negotiations in full view of all group members would have all but one of the following consequences on negotiators. Which one would not be a consequence? A) Negotiators who have some way to control the number of parties at the table (or even in the room) may begin to act strategically. B) Since the exchanges are under surveillance negotiators will be sensitive to being observed and may feel the need to be tough. C) Negotiators can simply choose to ignore the complexity of the three or more parties and proceed strategically as a two-party negotiation. D) Negotiators can explicitly engage in coalition building as a way to marshal support. E) Negotiators will have to find satisfactory ways to explain modification of their positions.

35. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts) are available on the Philadelphia exchange in units of €10,000 with strike prices of $1.60/€1.00. Options (calls and puts) are available on the Philadelphia exchange in units of £10,000 with strike prices of $2.00/£1.00. For a U.S. firm to hedge a €100,000 payable, A. buy 10 call options on the euro with a strike in dollars. B. buy 8 put options on the pound with a strike in dollars. C. sell 10 call options on the euro with a strike in dollars. D. sell 8 put options on the pound with a strike in dollars. E. both a and b F. both c and d

35. The _____ style of communication is characterized by language that requires the listener to carefully note what is being said and to observe how the sender is presenting the message. A. instrumental B. conductive C. affective D. facilitating

35. The best approach to manage cross-cultural negotiations is to be insensitive to the cultural norms of the other negotiator's approach.

35. What is the "paradox" of being a coalition founder? A) Early in the coalition building process, the founder may have to give away a lot in order to apparently gain a little. B) The founder's position shifts from strength to weakness as the coalition grows. C) The founder is usually not a part of the leadership of the coalition. D) The founder's early share in the coalition is large, and grows as more members are added. E) None of the above describes the paradox of being a coalition founder.

36. Coalitions build by A) organizing members through formal meetings . B) adding one member at a time. C) mobilizing departments or divisions. D) unification in a single, defining event. E) Coalitions are built by all of the above.

36. Research suggests that negotiators may naturally negotiate differently when they are with people from their own culture than when they are with people from other cultures.

36. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts) are available on the Philadelphia exchange in units of €10,000 with strike prices of $1.60/€1.00. Options (calls and puts) are available on the Philadelphia exchange in units of £10,000 with strike prices of $2.00/£1.00. For a U.S. firm to hedge a €100,000 receivable, A. buy 10 call options on the euro with a strike in dollars. B. buy 10 put options on the pound with a strike in dollars. C. sell 10 call options on the euro with a strike in dollars. D. sell 8 put options on the pound with a strike in dollars. E. both a and b F. both c and d

36. The transmission of information from manager to subordinate is referred to as: A. lateral communication. B. upward communication. C. downward communication. D. horizontal communication.

36. There are five ways in which the complexity increases as three or more parties simultaneously engage in negotiation. One of those listed below is not a correct statement. Which one? A) There are simply more parties involved in the negotiation. B) More parties bring more issues and positions to the table, and thus more perspectives must be presented and discussed. C) When negotiations become socially more complex, the social norms emerge that affect member participation, which reduces the stronger pressures to conform and suppress disagreement. D) As the negotiations become procedurally more complex, the parties may have to negotiate a new process that allows them to coordinate their actions more effectively. E) As the negotiations become more strategically complex, the parties must monitor the moves and actions of several other parties in determining what each will do next.

37. Considering the many attributes of an effective group, under which one of the following would you find a need to fully explain or define key words or language that may be part of the agreement? A) Test assumptions and inferences. B) Focus on interests, not positions. C) Disagree openly with any member of the group. D) Agree on the meaning of important words. E) Keep the discussion focused.

37. Francis found that negotiators from a familiar culture (Japan) who made no attempt to adapt to American ways were perceived more positively than negotiators who made moderate adaptations.

37. Suppose that $2 = £1, $1.60 = €1, and the cross exchange rate is €1.25 = £1.00. If you own a call option on £10,000 with a strike price of $1.50, you would exercise this option at maturity if A. the $/£ exchange rate is at least $1.60/£. B. the $/€ exchange rate is at least $1.60/€. C. the €/£ exchange rate is at least €1.25/£. D. none of the above

37. The "joining threshold" is A) the total number of people who can join a specific coalition. B) the level where a minimum number of people have joined a coalition and others begin to join because they recognize that their current friends and associates are already members. C) the minimum number of people required for a coalition to be successful. D) the level at which a new member must "pay" in order to join the coalition. E) None of the above defines the joining threshold.

37. _____ do not use silent periods at all during negotiations, but they do make frequent use of other nonverbal behaviors. A. Brazilians B. Japanese C. Arabians D. Americans

38. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts) are available on the London exchange in units of €10,000 with strike prices of £0.80 = €1.00. Options (calls and puts) are available on the Frankfurt exchange in units of £10,000 with strike prices of €1.25 = £1.00. For an Italian firm to hedge a £100,000 payable, A. buy 10 call options on the pound with a strike in euro. B. buy 8 put options on the euro with a strike in pounds. C. both a and b will work. D. simultaneously use strategies a and b E. none of the above

38. The "strength-is-weakness" dynamic in coalitions states that A) coalition founders will go to those who are the weakest for support. B) the weakest members may need to be in the coalition the most. C) the weakest members will demand the least payoff from joining the coalition. D) the weakest members may hold power in the coalition. E) The "strength is weakness" dynamic in coalitions states all of the above.

38. The primary purpose of subordinate-initiated upward communication is to: A. convey orders and information. B. let individuals know what is to be done and how well they are doing. C. provide feedback, ask questions, or obtain assistance from higher-level management. D. facilitate the flow of information to those who need it for operational purposes.

38. Weiss states that a negotiator should only use one strategy throughout an entire negotiation.

38. What are the three key stages and phases that characterize multilateral negotiations? A) the prenegotiation stage, managing the actual negotiations, and managing the agreement stage. B) the coalition building stage, the relationship development stage, the networking stage. C) the coalition building stage, the networking stage, and the actual negotiation stage. D) the prenegotiation stage, the networking stage, and the managing the agreement stage. E) None of the above lists the three key stages and phases that characterize multilateral negotiations.

39. In the context of writing business letters of complaint, Park, Dillon, and Mitchell reported that American writers: A. used a direct organizational pattern. B. shared explanatory details related to a problem first. C. tended to delay the reader's discovery of the main point. D. used vague, emotional, and accusatory characters.

39. Many complex international negotiations devote a great deal of time to the question of just who will be recognized and who can speak for others. The issue about participants can be decided by asking which of the following questions? A) Whose presence is likely to keep other parties from achieving their objectives? B) Whose presence is likely to help other parties achieve their objectives? C) Who could spoil the deal if they were excluded? D) All of the above questions can help decide who to recognize. E) None of the above questions will help determine inclusion/exclusion.

39. Negotiators using the "adapt to the other party's approach" strategy maintain a firm grasp on their own approach, but make modifications to help relations with the other negotiator.

39. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts) are available on the London exchange in units of €10,000 with strike prices of £0.80 = €1.00. Options (calls and puts) are available on the Frankfurt exchange in units of £10,000 with strike prices of €1.25 = £1.00. For a French firm to hedge a £100,000 receivable, A. buy 10 call options on the pound with a strike in euro. B. buy 8 put options on the pound with a strike in euro. C. buy 10 put options on the pound with a strike in euro. D. buy 8 call options on the euro with a strike in pounds. E. both a and b F. both c and d

39. Those advocating a need allocation standard argue that A) those who contributed more should receive more, in proportion to the magnitude of their contribution. B) everyone should receive the same outcome. C) parties should receive more in proportion to some demonstrated need for the resource. D) decision rules in coalitions should be made on an individual, case-by-case basis. E) Those advocating a need standard argue for all of the above.

4. If you owe a foreign currency denominated debt, you can hedge with A. a long position in a currency forward contract. B. a long position in an exchange-traded futures option. C. buying the foreign currency today and investing it in the foreign county. D. both a and c

40. A minor currency is A. anything other than the "big six": U.S. dollar, British pound, Japanese yen, euro, Canadian dollar, and Swiss franc. B. any currency that trades at less than one U.S. dollar. C. any currency that is less than a $20 denomination. D. none of the above

40. Oculesics refers to communicating through the use of _____. A. eye contact and gaze B. physical space C. bodily contact D. artifacts and charts

40. The prenegotiation phase of multilateral negotiations A) is when the parties are employing decision rules and criteria. B) manages the group process and outcome. C) is when the chair is appointed. D) is characterized by lots of informal contact among the parties. E) All of the above characterize the prenegotiation phase of multilateral negotiations

40. To use the "improvise an approach" strategy, both parties to the negotiation need to have high familiarity with the other party's culture and a strong understanding of the individual characteristics of the other party.

40. Which of the following statements about strength in coalitions is false? A) Those parties who have relatively fewer resources in a coalition may be stronger. B) The more resources one holds or controls, the more likely that he or she will be a critical coalition member. C) Coalition players with strength often become the center of communication networks. D) The more power one holds or controls, the more likely that he or she will be a central figure in pulling the coalition together and dictating its strategy. E) All of the above statements about strength in coalitions are true.

41. Haptics refers to communicating through the use of _____. A. eye contact and gaze B. physical space C. bodily contact D. artifacts and charts

41. In the Connect Model and the Requirements for Building a Relationship, what does the "t" stand for? A) Toss it! B) Try it! C) Time it! D) Track it! E) Trash it!

41. Perception is A) the process by which individuals connect to their environment. B) strongly influenced by the receiver's current state of mind, role and understanding or comprehension of earlier communications. C) a factor that can affect how meanings are ascribed. D) a complex physical and psychological process. E) All of the above describe perception.

41. Strategic power in coalitions A) emerges from the availability of alternative coalition partners. B) derives from what parties consider a fair or just distribution of the outcomes and results of a coalition. C) is dependent on which party's arguments ultimately shape the allocation rule used by the group. D) is shaped by the compatibility of preferences between two or more parties. E) Strategic power in coalitions is described by all of the above.

41. We use the term "culture" to refer to the A) religious beliefs of a group of people. B) ethnicity of a group of people. C) geographic nationality of a group of people. D) shared values and beliefs of a group of people. E) Culture refers to none of the above.

41.A U.S.-based MNC with exposure to the Swedish krona could best cross-hedge with A. forward contracts on the euro. B. forward contracts on the ruble. C. forward contracts on the pound. D. forward contracts on the yen.

42. According to Salacuse, which of the following is not a factor in the environmental context of negotiations? A) political and legal pluralism B) foreign governments and bureaucracies C) relative bargaining power D) international economic factors E) All of the above are factors in the environmental context of negotiations.

42. Block argues that authentic tactics require parties to A) say "yes" when they mean "no." B) share only the information that is relevant to the issue at hand. C) use language that describes reality. D) reposition their endorsement or support for the sake of acceptance. E) Authentic tactics require parties to do all of the above.

42. Canadians shake hands, Japanese bow, and Middle Easterners of the same sex kiss on the cheek. These gestures are examples of _____. A. chromatics B. haptics C. chronemics D. proxemics

42. When cross-hedging, A. try to find one asset that has a positive correlation with another asset. B. the main thing is to find one asset that covaries with another asset in some predictable way. C. try to find one asset that has a negative correlation with another asset. D. none of the above

42. Which of the following lists the stages of the perceptual process in the correct order? A) stimulus, translation, attention, recognition, behavior B) stimulus, behavior, translation, attention, recognition C) stimulus, attention, recognition, translation, behavior D) behavior, stimulus, recognition, attention, translation E) None of the above lists the stages of the perceptual process in the correct order.

43. Allies can be defined as A) people with whom a negotiator has conflicting goals and objectives, but who can be trusted to be principled and candid in their opposition. B) parties who are in agreement with their goals and vision, and whom the negotiator trusts. C) parties with whom a negotiator has high agreement on the vision or objectives, but low to moderate levels of trust. D) negotiators who are low in agreement and low in trust. E) None of the above statements defines allies.

43. During the planning stage of negotiations, consideration should be given to all of the following areas except: A. determining the location in which to discuss the various issues. B. setting limits on single-point objectives. C. dividing issues into short- and long-term considerations and deciding how to handle each. D. focusing on common ground between the parties.

43. Halo effects occur when A) attributes are assigned to an individual solely on the basis of his or her membership in a particular social or demographic group. B) people generalize about a variety of attributes based on the knowledge of one attribute of an individual. C) the perceiver singles out certain information that supports or reinforces a prior belief, and filters out information that does not confirm that belief. D) people ascribe to others the characteristics or feelings that they possess themselves. E) All of the above describe halo effects.

43. When a group wants to achieve a consensus or unanimous decision, the responsibility of the chair is to be constantly attentive to the group process. Identify which of the pointers below for how to chair a multiparty negotiation effectively is not correct. A) Explicitly describe the role you will take as chair. Assure individual members that they will have an opportunity to make opening statements or other ways of placing their individual concerns and issues on the table. B) Introduce the agenda or build one based on the group's issues, concerns, and priorities. Be an active gatekeeper. C) Make logistical arrangements that will help the negotiation process. Listen for interests and commonalities. D) Introduce unnecessary ground rules or let the parties suggest them to distract. Introduce internal information that will help illuminate the issues and interests. E) Create or review decision standards and rules. Summarize frequently, particularly when conversation becomes stalled, confused, or tense

43. Which of the following is an immediate context factor in cross-cultural negotiations? A) external stakeholders B) instability C) international economic factors D) relationship between negotiators E) All of the above are immediate context factors in cross-cultural negotiations.

43. Your firm is bidding on a large construction contract in a foreign country. This contingent exposure could best be hedged A. with put options on the foreign currency. B. with call options on the foreign currency. C. both a and b, depending upon the specifics ("the rest of the story"). D. with futures contracts.

44. Bedfellows are parties with whom a negotiator has A) high agreement and low trust. B) low agreement and high trust. C) low agreement and low trust. D) high agreement and high trust. E) Bedfellows have none of the above characteristics.

44. During the information management phase, coordinators A) "patrol" the environment and bring in relevant external information that may be useful to the group. B) represent a formal link to some important constituency and help to acquire resources the group needs to continue to operate. C) provide a more formal link between the group members and the constituencies they represent. D) are specifically designated to keep some information inside the group and assure that there are no leaks or premature disclosures of key information or discussions. E) Coordinators accomplish all of the above.

44. On a recent sale, Boeing allowed British Airways to pay either $18 million or £10 million. A. At the due date, British airways will be indifferent between paying dollars or pounds since they would of course have hedged their exposure either way. B. Boeing has provided British Airways with a free option to buy $18 million with an exercise price of £10 million. C. Boeing has provided British Airways with a free option to sell up to £10 million with an exercise price of $18 million. D. All of the above

44. Political and legal pluralism can make cross cultural negotiations more complex because A) there may be implications for the taxes that the organization pays. B) there may be implications for the labor codes or standards that the organization must meet. C) there may be different codes of contract law and standards of enforcement. D) political considerations may enhance or detract from the conduct of business negotiations in various countries at different times. E) Political and legal pluralism can make cross cultural negotiations more complex because of all of the above.

44. Projection occurs when A) attributes are assigned to an individual solely on the basis of his or her membership in a particular social or demographic group. B) people generalize about a variety of attributes based on the knowledge of one attribute of an individual. C) the perceiver singles out certain information that supports or reinforces a prior belief, and filters out information that does not confirm that belief. D) people ascribe to others the characteristics or feelings that they possess themselves. E) All of the above describe projection.

44. Which of the following "distances" is used for communicating very confidential messages? A. Social B. Public C. Personal D. Intimate

45. A moderator who sends out a questionnaire to all parties asking for input is one strategy used to avoid destructive conflict and emotion. That strategy is known as A) nominal group technique. B) the Delphi technique. C) brainstorming. D) the consensus technique. E) the compromise technique.

45. Adversaries can be described as A) parties who will not take a stand one way or the other on the issue. B) people with whom negotiator has conflicting goals and objectives, but who can be trusted to be principled and candid in their opposition. C) parties who a negotiator believes are in agreement with their goals and vision, and whom they trust. D) negotiators who are low in agreement and low in trust. E) None of the above statements describes adversaries.

45. Contingent exposure can best be hedged with A. options. B. money market hedging. C. futures. D. all of the above

45. Frames are important in negotiation because A) they allow parties to develop separate definitions of the issues B) they can be avoided C) disputes are often nebulous and open to different interpretations D) do not allow negotiators to articulate an aspect of a complex social situation E) all of the above

45. Which of the following "distances" is used for talking with family and close friends? A. Intimate B. Social C. Personal D. Public

45. Which of the following factors most influences relative bargaining power? A) the extent to which negotiators frame the negotiation differently B) tangible and intangible factors C) management control D) personal motivations of external stakeholders E) None of the above factors influence relative bargaining power.

46. A 5-year swap contract can be viewed as a portfolio of 5 forward contracts with maturities of 1, 2, 3, 4 and 5 years. One important exception is that A. the forward price is the same for the swap contract but not for the forward contracts. B. the swap contract will have daily resettlement. C. the forward contracts will have resettlement risk. D. none of the above.

46. In which type of frame would parties be more likely to engage primarily in distributive (win-lose or lose-lose) negotiations than in other types? A) Identity B) Loss-gain C) Outcome D) Process E) Substantive

46. Which of the following is not one of Janosik's four ways that culture is used in international negotiation? A) culture as learned behavior B) culture as economic indicator C) culture as shared values D) culture as dialectic E) Each of the above is one of Janosik's four ways that culture is used in international negotiation.

46. _____ distance is used to handle most business transactions while communicating on a face-to-face basis. A. Social B. Public C. Personal D. Intimate

47. An insight drawn from research of the frames negotiators use in disputes would suggest that parties discussing salary may be likely to use outcome frames and may be related to which of the following. A) Negotiators can use more than one frame. B) Mismatches in frames between parties are sources of conflict. C) Particular types of frames may led to particular types of agreements. D) Specific frames may be likely to be used with certain types of issues. E) Parties are likely to assume a particular frame because of various factors.

47. The "culture-as-shared-value" approach A) concentrates on documenting the systematic negotiation behavior of people in different cultures. B) concentrates on understanding the central values and norms of a culture and then building a model for how these norms and values influence negotiations within that culture. C) recognizes that all cultures contain dimensions or tensions among their different values. D) recognizes that no human behavior is determined by a single cause. E) All of the above are elements of the "culture as shared" value approach.

47. To find the swap rate for a 3-year swap, you would A. take the arithmetic average of the 1-, 2-, and 3-year forward rates. B. take the geometric average of the 1-, 2-, and 3-year forward rates. C. bootstrap the LIBOR yield curve. D. none of the above

47. _____ distance is used when calling across the room or giving a talk to a group. A. Personal B. Public C. Intimate D. Social

48. A good example of proxemics is _____. A. office layout B. eye gaze C. business structure D. body language

48. Generally speaking, a firm with recurrent exposure can best hedge using which product? A. Options B. Swaps C. Futures D. All of the above

48. The individualism/collectivism dimension describes A) the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. B) the extent to which the society is organized around individuals or the group. C) the extent to which cultures hold values that were traditionally perceived as masculine or feminine. D) the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. E) None of the above describes the individualism/collectivism dimension.

48. Those attempting to negotiate in China recognize the value the Chinese place in saving "face." Which of the following cultural elements should also be examined in approaching discussions with the Chinese? A) Social linkage B) Harmony C) Roles D) Reciprocal obligations E) All of the above should be considered

49. Chronemics refers to the way in which _____. A. color is used in a culture B. time is used in a culture C. posture is used to communicate D. touch is used to communicate

49. Frames are shaped by conversations that the parties have with each other about the issues in the bargaining mix. Which of the following factors can affect how the conversation is shaped? A) Negotiators tend to argue for stock issues, or concerns that are raised every time the parties negotiate. B) Each party attempts to make the best possible case for his or her preferred position or perspective. C) Frames may define major shifts and transitions in a complex overall negotiation. D) Multiple agenda items operate to shape issue development. E) All of the above contribute to the shaping of the conversation.

5. If you own a foreign currency denominated bond, you can hedge with A. a long position in a currency forward contract. B. a long position in an exchange-traded futures option. C. buying the foreign currency today and investing it in the foreign county. D. a swap contract where pay the cash flows of the bond in exchange for dollars.

50. A monochronic time schedule is one in which: A. things are done in a linear fashion. B. people tend to do several things at the same time irrespective of the amount of work involved. C. people tend to place higher value on personal involvement than on getting things done on time. D. things are done in a random way.

50. One of the most important aspects of framing as issue development is the process of reframing, or the manner in which the thrust, tone, and focus of a conversation change as the parties engage in it. Reframing is or occurs: A) the way parties challenge each other, as they present their own case or refute the other's. B) a dynamic process that may occur many times in a conversation. C) when using metaphors, analogies, or specific cases to illustrate a point. D) and may be used intentionally by one side or the other. E) all of the above apply to reframing as parties often propose new ways to approach a problem.

50. The current exchange rate is €1.25 = £1.00 and a British firm offers a French customer the choice of paying a £10,000 bill due in 90 days with either £10,000 or €12,500. A. The seller has given the buyer an at-the-money put option on euro with a strike in pounds. B. The seller has given the buyer an at-the-money put option on pounds with a strike in euro. C. The seller has given the buyer an at-the-money call option on euro with a strike in pounds. D. None of the above

50. What consequences do negotiators from high uncertainty-avoidance cultures bring to negotiations? A) Negotiators will strongly depend on cultivating and sustaining a long-term relationship. B) Negotiators may be more likely to "swap" negotiators, using whatever short-term criteria seem appropriate. C) Negotiators may need to seek approval from their supervisors more frequently. D) Negotiators may not be comfortable with ambiguous situations and may be more likely to seek stable rules and procedures when they negotiate. E) All of the above are consequences of high uncertainty avoidance cultures.

51. An exporter can shift exchange rate risk to their customers by A. invoicing in their home currency. B. invoicing in their customer's local currency. C. splitting the difference, and invoicing half of sales in local currency and half of sales in home currency. D. invoicing sales in a currency basket such as the SDR as the invoice currency.

51. Chromatics is the use of: A. sound to communicate messages. B. symbols to communicate messages. C. gestures to communicate messages. D. color to communicate messages.

51. Distributive bargaining strategies A) are the most efficient negotiating strategies to use. B) are used in all interdependent relationships. C) are useful in maintaining long term relationships. D) can cause negotiators to ignore what the parties have in common. E) None of the above describes distributive bargaining strategies.

51. Risk-avoiding cultures will A) be willing to move early on a deal. B) generally take more chances. C) seek further information. D) be less likely to take a wait-and-see stance. E) Risk avoiding cultures will generally take all of the above actions

51. The irrational escalation of commitment bias refers to A) the standard against which subsequent adjustments are measured during negotiation. B) the perspective or point of view that people use when they gather information and solve problems. C) how easily information can be recalled and used to inform or evaluate a process of a decision. D) a negotiator's commitment to a course of action, even when that commitment constitutes irrational behavior on his/her part. E) None of the above refer to irrational escalation of commitment.

51. What are the most critical precursors for achieving negotiation objectives? A) Effective strategizing, planning and preparation B) goal setting and target planning C) defining frames and setting goals D) framing and strategizing E) none of the above

51. Which of the following is not an element of integrative negotiations? A) a focus on commonalties B) an attempt to address positions C) a required exchange of information and ideas D) the use of objective criteria for standards of performance E) All of the above are elements of integrative negotiations.

52. An exporter can share exchange rate risk with their customers by A. invoicing in their customer's local currency. B. splitting the difference, and invoicing half of sales in local currency and half of sales in home currency. C. invoicing sales in a currency basket such as the SDR as the invoice currency. D. both b and c

52. In group-oriented cultures A) the individual comes before the group's needs. B) decisions are primarily made by senior executives. C) decision making is an efficient, streamlined process. D) negotiators may be faced with a series of discussions over the same issues and materials with many different people. E) All of the above occur in group-oriented cultures.

52. In the United States, it is common to wear black when one is in mourning, while in some locations in India people wear white when they are in mourning. This is an example of: A. chronemics. B. chromatics. C. proxemics. D. haptics.

52. The target point is the A) point at which a negotiator would like to conclude negotiations. B) negotiator's bottom line. C) first offer a negotiator quotes to his opponent. D) initial price set by the seller. E) None of the above describes the target point.

52. Which of the following is not a cognitive bias? A) the irrational escalation of commitment B) the belief that the issues under negotiation are all "fixed pie" C) the process of anchoring and adjustment in decision making D) the winner's curse E) All of the above are cognitive biases.

52. Which of the following is not a reason that negotiations fail? A) Allowing insufficient time for planning B) Failing to set clear objectives C) Understanding the strengths and weaknesses of their and the other party's positions D) Depending on being quick and clever during negotiations

53. A negotiator's goals: A) are intrinsically in conflict with his opponent's goals B) have no boundaries or limits C) are explicitly stated wishes D) must be reasonably attainable E) all of the above

53. According to Graham, which of the following statements would be characteristic of a Japanese negotiator? A) Higher profits are associated with making opponents feel uncomfortable. B) Higher profits are achieved by making opponents feel comfortable. C) The use of powerful and deceptive strategies is more likely to receive higher outcomes. D) Representational strategies are negatively related to profits. E) None of the above is characteristics of a Japanese negotiator.

53. An exporter faced with exposure to a depreciating currency can reduce transaction exposure with a strategy of A. paying or collecting early. B. paying or collecting late. C. paying late, collecting early. D. paying early, collecting late.

53. Starting points A) are usually contained in the opening statements each negotiator makes. B) are usually learned or inferred as negotiations get under way. C) are not known to the other party. D) are given up as concessions are made. E) None of the above describes starting points.

53. The availability of information bias operates with which of the following statements? A) when negotiators sometimes maintain commitment to a course of action even when that commitment constitutes irrational behavior on their part. B) when thorough preparation, along with the use of a devil's advocate or reality check, can help prevent errors. C) when information that is presented in vivid, colorful, or attention-getting ways becomes easy to recall, and thus also becomes central and critical in evaluating events and options. D) when the tendency of negotiators to believe that their ability to be correct or accurate is greater than is actually true E) when the tendency will often lead to a self-fulfilling prophecy, as follows: People who expect to be treated in a distributive manner will (1) be more likely to perceive the other party's behavior as distributive, and (2) treat the other party in a more distributive manner

53. Which of the following is a major step in the integrative negotiation process? A) identifying and defining the problem B) understanding the problem and bringing interests and needs to the surface C) generating alternative solutions to the problem D) choosing a specific solution E) All of the above are major steps in the integrative negotiation process.

53. Which of the following is a persuasion tool generally used by the Japanese during negotiations? A. Time pressure B. Intergroup connections C. Hospitality D. Emphasis on family

54. According to Weiss, when choosing a strategy, negotiators should A) choose one strategy and stick with it throughout the entire negotiation. B) be aware of their own culture, but minimize the other culture's norms. C) not try to predict or influence the other party's approach. D) understand the specific factors in the current relationship. E) Weiss states that negotiators should do all of the above when preparing for negotiations.

54. An exporter faced with exposure to an appreciating currency can reduce transaction exposure with a strategy of A. paying or collecting early. B. paying or collecting late. C. paying late, collecting early. D. paying early, collecting late.

54. In which major step of the integrative negotiation process of identifying and defining the problem would you likely find that if the problem is complex and multifaceted the parties may not even be able to agree on a statement of the problem? A) define the problem in a way that is mutually acceptable to both sides. B) state the problem with an eye toward practicality and comprehensiveness. C) state the problem as a goal and identify the obstacles to attaining this goal. D) depersonalizing the problem. E) separate the problem definition from the search for solutions.

54. In which of the following countries do people like to be greeted by their title? A. Germany B. Japan C. Mexico D. Arab countries

54. The less concrete and measurable goals are: A) the harder it is to communicate to the other party what we want B) the easier it is to understand what your opponent wants C) the easier it is to determine whether a particular outcome satisfies our goals D) the harder it is to restate what the initial goal was E) all of the above

54. The objective of both parties in distributive bargaining is to obtain as much of which of the following as possible? A) bargaining range B) resistance point C) target point D) bargaining mix E) None of the above.

54. Which of the following cognitive biases can lead negotiators to discount the worth or validity of the judgment of others? A) Irrational escalation of commitment B) Mythical fixed-pie beliefs C) Anchoring and adjustment D) Availability of information E) Overconfidence

55. A MNC seeking to reduce transaction exposure with a strategy of leading and lagging A. can probably employ the strategy more effectively with intra firm payables and receivables than with customers or outside suppliers. B. can employ the strategy most easily with customers, regardless of market structure. C. can employ the strategy most easily with suppliers, regardless of market structure. D. none of the above

55. The Endowment Effect A) is making attributions to the person or the situation B) is drawing conclusions from small sample sizes C) is negotiators believing that their ability to be correct or accurate is greater than actually true D) is the tendency to overvalue something you own or believe you possess

55. The resistance point is established by the ____________ expected from a particular outcome, which is in turn the product of the ____________ and ____________ of an outcome. A) cost, value, worth B) value, worth, cost C) value, cost and timeliness D) cost, importance, value E) None of the above.

55. Which is not a difference between strategy and tactics? A) Scale B) Goals C) Perspective D) Immediacy

55. Which of the following processes is central to achieving almost all integrative agreements? A) moderating the free flow of information to ensure that each party's position is accurately stated B) exchanging information about each party's position on key issues C) emphasizing the commonalties between the parties D) searching for solutions that maximize the substantive outcome for both parties E) All of the above processes are central to achieving integrative agreements.

55. Which of the following strategies should negotiators with a low familiarity with the other culture choose? A) employ agents or advisers B) adapt to the other party's approach C) coordinate adjustment D) embrace the other party's approach E) Negotiators with a low familiarity with the other culture should not choose any of the above strategies.

55. Which of the following terms refers to the process of bargaining with one or more parties for the purpose of arriving at a solution that is acceptable to all? A. Negotiation B. Empowerment C. Propitiation D. Codetermination

56. A strong interest in achieving only substantive outcomes tends to support which of the following strategies? A) collaborative B) accommodating C) competitive D) avoidance E) none of the above

56. An interest is instrumental if A) the parties value it because it helps them derive other outcomes in the future. B) the parties value the interest in and of itself. C) it relates to "tangible issues" or the focal issues under negotiation. D) the relationship is valued for both its existence and for the pleasure that sustaining the relationship creates. E) All of the above relate to instrumental interests.

56. In evaluating the pros and cons of corporate risk management, one argument against hedging is A. if the corporate guys were good at forecasting exchange rates, they would make more money on Wall Street, so only incompetent managers are left at corporations to hedge. B. shareholders who are diversified have already managed their exchange rate risk. C. the hedging costs go into someone else's pocket. D. none of the above

56. Reactive devaluation A) leads negotiators to minimize the magnitude of a concession made by a disliked other. B) leads to reduced willingness to respond with a concession of equal size. C) may be minimized by maintaining a more objective view of the process. D) can lead to motivation to seek even more once a concession has been made. E) All of the above are elements of reactive devaluation.

56. Substantive interests A) are the interests that relate to the focal issues under negotiation. B) are related to the way we settle the dispute. C) mean that one or both parties value their relationship with each other and do not want to take actions that will damage the relationship. D) regard what is fair, what is right, what is acceptable, what is ethical, or what has been done in the past and should be done in the future. E) All of the above relate to substantive interests.

56. The more you can convince the other party that your costs of delay or aborting negotiations are ____________, the more modest will be the other's resistance point. A) high B) modest C) extreme D) low E) None of the above.

56. Which of the following lists only joint strategies for cross-cultural negotiations? A) employ agents or advisors, bring in a mediator, adapt to the other party's approach, improvise an approach B) employ agents or advisors, adapt to the other party's approach, embrace the other party's approach, effect symphony C) bring in a mediator, coordinate adjustment, improvise an approach, effect symphony D) coordinate adjustment, improvise an approach, adapt to the other party's approach, embrace the other party's approach E) None of the above list only joint strategies for cross cultural negotiations.

56. Which of the following statements about negotiation is false? A. It is used in creating joint ventures with local firms and in getting the operation off the ground. B. It is a learnable skill that is imperative for the international manager but not for the domestic manager. C. It often follows assessing political environments. D. It can be used as an approach to conflict management.

57. "Adapting to the other party's approach" is best used by parties with A) no familiarity. B) low familiarity. C) moderate familiarity. D) high familiarity. E) Adapting to the other party's approach is equally effective for all parties.

57. A strong interest in achieving only the relationship outcomes suggests one, if any, of the following strategies. Which one? A) competitive B) accommodation C) collaborative D) avoidance E) none of the above

57. If a firm faces progressive tax rates, A. they should spread income out across time and subsidiaries. B. they should focus on maximizing income in one division or subsidiary. C. they should manage their income recognition without regard to their taxes. D. none of the above

57. The best way to manage perceptual and cognitive biases is: A) to be aware that they exist. B) to participate in group discussions. C) to tell people about the bias. D) complete a questionnaire. E) All of the above help manage biases but may not be enough in and of themselves.

57. The more you can convince the other that you value a particular outcome outside the other's bargaining range, the more pressure you put on the other party to set by one of the following resistance points. A) high B) low C) modest D) extreme E) None of the above.

57. Which of the following statements about integrative negotiation is true? A. It occurs when two parties with opposing goals compete over a set value. B. It is characterized by overlapping interests. C. It focuses on the individual relationships and is based on a short-term interaction. D. It often results in a win-lose situation.

57. Which of the following statements about interests is true? A) There is only one type of interest in a dispute. B) Parties are always in agreement about the type of interests at stake. C) Interests are often based in more deeply rooted human needs or values. D) Interests do not change during the course of an integrative negotiation. E) All of the above statements about interests are true.

58. "Coordinating adjustment" involves A) adopting completely the approach of the other party. B) making conscious changes to your approach so that it is more appealing to the other party. C) both parties making mutual adjustments to find a common process for negotiation. D) crafting an approach that is specifically tailored to the negotiation situation. E) "Coordinating adjustment" involves all of the above.

58. A large majority of agreements in distributive bargaining are reached when the deadline is A) near. B) flexible. C) past. D) undefined. E) None of the above.

58. Avoidance could best be used when: A) negotiation is necessary to meet your needs B) the time and effort to negotiate are negligible C) the available alternatives are very strong D) the only available negotiator is a senior manager. E) all of the above

58. In evaluating the pros and cons of corporate risk management, "market imperfections" refer to A. information asymmetry, differential transaction costs, default costs, and progressive corporate taxes. B. leading and lagging, receivables and payables, and diversification costs. C. economic costs, noneconomic costs, arbitrage costs, and hedging costs. D. management costs, corporate costs, liquidity costs, and trading costs.

58. Successful logrolling requires A) that the parties establish more than one issue in conflict and then agree to trade off among these issues so one party achieves a highly preferred outcome on the first issue and the other person achieves a highly preferred outcome on the second issue. B) no additional information about the other party than his/her interests, and assumes that simply enlarging the resources will solve the problem. C) that one party is allowed to obtain his/her objectives and he/she then "pays off" the other party for accommodating his/her interests. D) a fundamental reformulation of the problem such that the parties are disclosing sufficient information to discover their interests and needs and then inventing options that will satisfy both parties' needs. E) Successful logrolling requires all of the above.

58. The distinction between mood and emotion is based on which of the following characteristics? A) specificity B) intensity C) duration D) all of the above E) none of the above

58. Which of the following statements about distributive negotiation is true? A. It occurs when two parties with opposing goals compete over a set value. B. It focuses on reaching a best-case outcome where everyone benefits. C. It is characterized by overlapping interests. D. It involves cooperation between two groups to integrate interests, create value, and invest in an agreement.

59. A study of Fortune 500 firms hedging practices shows that A. over 90 percent of Fortune 500 firms use forward contracts. B. over 90 percent of Fortune 500 firms use options contracts. C. both a and b D. none of the above

59. Disruptive action tactics can cause A) embarrassment. B) increased costs. C) anger. D) escalation of conflict. E) Disruptive action tactics can cause all of the above.

59. Negative emotions may lead parties to A) more integrative processes B) escalate the conflict C) promote persistence D) define the situation as integrative E) more integrative outcomes

59. The "embrace the other party's approach" strategy involves A) adopting completely the approach of the other party. B) both parties making mutual adjustments to find a common process for negotiation. C) creating a new approach that may include aspects of either home culture or practices from a third culture. D) persuading the other party to use your approach. E) The "embrace the other party's approach" strategy involves all of the above.

59. What approach can parties use to generate alternative solutions by redefining the problem or problem set? A) brainstorming B) logrolling C) surveys D) nonspecific compensation E) None of the above approaches can be used to redefine the problem.

59. Which of the following tends to reduce understanding in cross-cultural negotiations? A. Not identifying a counterpart's home culture too quickly B. Accepting the tendency to formulate simple, consistent, stable images C. Being aware of the Western bias toward "doing" D. Not overestimating one's familiarity with his or her counterpart's culture

59. Which one of the following is as much a win-lose strategy as competition, although it has a decidedly different image? A) collaboration B) avoidance C) engagement D) accommodation

6. The sensitivity of "realized" domestic currency values of the firm's contractual cash flows denominated in foreign currency to unexpected changes in the exchange rate is A. transaction exposure. B. translation exposure. C. economic exposure. D. none of the above

60. Characteristics of collaborative strategies include: A) long-term focus B) trust and openness C) efforts to find mutually satisfying solutions D) pursuit of goals held jointly with others E) all of the above

60. In nonspecific compensation A) resources are added in such a way that both sides can achieve their objectives. B) one party achieves his/her objectives and the other's costs are minimized if he/she agrees to go along. C) the parties are able to invent new options that meet each sides' needs. D) one person is allowed to obtain his/her objectives and "pay off" the other person for accommodating his interests. E) All of the above are related to nonspecific compensation.

60. In the context of negotiations, _____ starts with the negotiators identifying the objectives they would like to attain. A. planning B. interpersonal relationship building C. exchanging task-related information D. persuasion

60. Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed €10 million payable in one year.The money market interest rates and foreign exchange rates are given as follows:Assume that Boeing sells a currency forward contract of €10 million for delivery in one year,in exchange for a predetermined amount of U.S.dollar.Which of the following is (or are)true? On the maturity date of the contract Boeing will: (i)have to deliver €10 million to the bank (the counterparty of the forward contract) (ii)take delivery of $14.6 million (iii)have a zero net pound exposure (iv)have a profit,or a loss,depending on the future changes in the exchange rate,from this British sale A)(i) and (iv) B)(ii) and (iv) C)(ii), (iii), and (iv) D)(i), (ii), and (iii)

60. The opening stance is A) another name for the first round of concessions. B) the first price that a buyer quotes to a seller. C) the attitude to adopt during the negotiation. D) a package of concessions. E) All of the above describe the opening stance.

60. When working to create a new approach that may include aspects of either home culture or adopt practices from a third culture, negotiators are using what approach? A) effect symphony B) improvise an approach C) embrace the other party's approach D) employ agents or advisors E) Negotiators are using all of the above approaches.

60. Which of the following statements about how emotion plays a part in negotiation is accurate? A) Negotiations only create negative emotions. B) Positive feelings do not promote persistence. C) Negative feelings may create positive outcomes. D) Positive emotion may result from impasse. E) Negative emotions do not undermine a negotiator's ability to analyze a situation accurately.

61. In an accommodative negotiation, the relationships have: A) a short-term focus B) a long-term focus C) may be either short term or long term D) none of the above

61. In which of the following steps of the negotiation process does each group set forth its position on critical issues? A. Persuasion B. Exchanging task-related information C. Interpersonal relationship building D. Planning

61. The bargaining range is defined by A) the opening stance and the initial concession. B) the initial round of concessions. C) the bargaining mix and the opening stance. D) the opening offer and the counteroffer. E) The bargaining range is defined by all of the above.

61. What questions can be asked to facilitate nonspecific compensation? A) What are the other party's goals and values? B) How can both parties get what they are demanding? C) What issues are of higher and lower priority to me? D) What risks and costs does my proposal create for the other? E) None of the above can be used to facilitate nonspecific compensation.

61. Your firm is a U.K.-based exporter of British bicycles.You have sold an order to an American firm for $1,000,000 worth of bicycles. Payment from the American firm (in U.S.dollars)is due in six months.Detail a strategy using futures contracts that will hedge your exchange rate risk. A)Go short 12 six-month forward contracts; pay £555,600. B)Go short 16 six-month forward contracts.Pay approximately £537,600. C)Go long 12 six-month forward contracts.Receive approximately £549,500. D)Go long 16 six-month forward contracts; raise approximately £537,600.

61.Your firm is a U.S.-based exporter of bicycles.You have sold an order to a French firm for €1,000,000 worth of bicycles.Payment from the French firm (in euro)is due in three months.Detail a strategy using futures contracts that will hedge your exchange rate risk.Have an estimate of how many contracts of what type and how much (in $)your firm will have. A)Go short 12 six-month forward contracts; pay $1,290,000. B)Go short 16 six-month forward contracts.Pay $1,230,000. C)Go long 16 six-month forward contracts; raise $1,230,000. D)Go long 12 six-month forward contracts.Receive $1,230,000.

62. "What are the other's real underlying interests and needs?" is a question that can facilitate the _____________ process. A) expanding the pie B) logrolling C) nonspecific compensation D) bridging E) The question should not be used with any of the above processes.

62. Accommodative strategies emphasize: A) Subordinating one's own goals in favor of those of others. B) Secrecy and defensiveness C) Abandonment of bad images and consideration of ideas based on merit D) A key attitude of "I win; you lose" E) All of the above

62. What action can be taken after the first round of offers? A) hold firm B) insist on the original position C) make some concessions D) make no concessions E) All of the above.

62. Which of the following steps in the negotiation process comes after exchanging task-related information? A. Interpersonal relationship building B. Planning C. Identifying objectives D. Persuasion

62.Your firm is a U.K.-based exporter of bicycles. You have sold an order to a French firm for €1,000,000 worth of bicycles. Payment from the French firm (in euro)is due in 12 months. Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type and maturity. A)Go short 100 12-month euro futures contracts; and short 80 12-month pound futures contracts. B)Go long 100 12-month euro futures contracts; and long 80 12-month pound futures contracts. C)Go long 100 12-month euro futures contracts; and short 80 12-month pound futures contracts. D)Go short 100 12-month euro futures contracts; and long 80 12-month pound futures contracts. E)None of the above

63. Getting to know the other party and understanding similarities and differences represents what key step in the negotiation process: A) preparation B) information gathering C) relationship building D) information using E) None of the above

63. Good distributive bargainers will A) begin negotiations with the other party with an opening offer close to their own resistance point. B) ensure that there is enough room in the bargaining range to make some concessions. C) accept an offer that is presented as a fait accompli. D) immediately identify the other party's target point. E) All of the above are actions that good distributive bargainers will take.

63. In brainstorming A) individuals work in a large group to select a single optimal solution. B) all solutions are judged and critiqued as they are recorded, and a weighted-average percentage is assigned to each solution. C) parties are urged to be spontaneous and even impractical. D) the success of the approach depends on the item-by-item evaluation and critique of the solutions as presented. E) None of the above is a part of the brainstorming process.

63. The final step in the negotiation process is: A. the persuasion phase. B. interpersonal relationship building. C. the agreement phase. D. exchanging task-related information.

64. According to Trompenaars and Hampden-Turner, U.S. negotiators: A. tend to open negotiations with an extreme initial position. B. tend to use an emotional appeal in their negotiation style. C. believe it is important to be factual and objective while negotiating. D. treat deadlines as only general guidelines for wrapping up negotiations.

64. Parties feel better about a settlement when negotiations involve a(n) A) immediate settlement. B) single round of concessions. C) progression of concessions. D) fait accompli. E) All of the above.

64. The general structure of a phase model of negotiations involves: A) Three phases: initiation; problem-solving; resolution B) Four phases: pre-initiation; initiation; problem-solving; resolution C) Two phases: problem-solving and resolution D) None of the above

64. When identifying options in an integrative negotiation, solutions are usually attained through: A) hard work B) information exchange C) focusing on interests rather than positions D) firm flexibility E) Solutions are attained by using all of the above.

65. Research by Trompenaars and Hampden-Turner shows that Arab negotiators: A. tend to open negotiations with a neutral initial position. B. analyze things subjectively and treat deadlines as only general guidelines for wrapping up negotiations. C. do not believe in making concessions and never reciprocate an opponent's concessions. D. never use an emotional appeal in their negotiation style.

65. What statement about concessions is false? A) Concessions are central to negotiations. B) Concessions is another word for adjustments in position. C) Concession making exposes the concession maker to some risk. D) Reciprocating concessions is a haphazard process. E) All of the above statements are true.

65. When confronted with complex problems, or a large number of alternative options, which of the following steps is necessary? A) broaden the range of solution options B) evaluate solutions on the basis of quality, standards, and acceptability C) decide on criteria while evaluating options D) maintain a focus on the influence of tangibles in selecting options E) All of the above steps should be used when confronted with complex problems.

65. Which is not a key step to an ideal negotiation process? A) Preparation B) Relationship Building C) Information Gathering D) Bidding E) All of the above are key steps

66. Concession making A) indicates an acknowledgment of the other party. B) shows a movement toward the other's position. C) implies a recognition of the legitimacy of the other party's position. D) recognizes the other party's position. E) All of the above are characteristics of concession making.

66. What is the dominant force for success in negotiation? A) a distributive vs. integrative strategy B) the planning that takes place prior to the dialogue C) the discussions that precede planning sessions D) the tactics selected in support of strategic goals E) all of the above

66. Which guideline should be used in evaluating options and reaching a consensus? A) keep the range of solution options as wide as possible B) evaluate the solutions on the basis of speed and expediency C) keep detailed records throughout the discussion and evaluation process D) be alert to the influence of intangibles in selecting options E) None of the above should be used in the evaluation process.

66. Which of the following places would be the best neutral site for a Brazilian firm carrying on negotiations with an Italian firm? A. Milan B. Sardinia C. Florence D. New York City

67. A common goal is one in which A) all parties share the result equally B) the parties work toward a common end but benefit differently C) all parties work together to achieve some output that will be shared D) individuals with different personal goals agree to combine them in a collective effort. E) All of the above are characteristics of a common goal.

67. Effective planning requires hard work on the following points: A) Defining the issues B) Defining the bargaining limit C) Defining interests D) Defining limits and alternatives E) All of the above

67. When successive concessions get smaller, the most obvious message is that A) the negotiator is reaching the fatigue point. B) the resistance point is being reached. C) the concession maker's position is weakening. D) the negotiator has passed the resistance point. E) None of the above.

67. Which of the following is not a principle advocated by Fisher and Ury, authors of the book Getting to Yes, to help avoid disasters while negotiating for mutual benefit? A. Separate the people from the problem B. Focus on positions rather than interests C. Generate a variety of options before settling on an agreement D. Insist that the agreement be based on objective criteria

68. A joint goal is one in which A) all parties share the result equally. B) the parties work toward a common end but benefit differently. C) individuals with different personal goals agree to combine them in a collective effort. D) all parties work together to achieve some output that will be shared. E) All of the above are characteristics of a common goal.

68. In the context of negotiations, all of the following is true of a neutral third party except that: A. he or she can be bought in to assess the desires of each side. B. he or she can compose an initial proposal. C. he or she has the last word in what the true "final draft" is. D. he or she has the right to force the parties to the negotiation to accept its proposal.

68. Interests can be: A) substantive, directly related to the focal issues under negotiation B) process based, related to the manner in which we settle this dispute C) relationship based, tied to the current or desired future relationship between the parties D) based in the intangibles of the negotiation E) all of the above

68. Skilled negotiators may A) suggest different forms of a potential settlement that are worth about the same to them. B) recognize that not all issues are worth the same amount to both parties. C) frequently save a final small concession for near the end of the negotiation to "sweeten" the deal. D) make the last concession substantial to indicate that "this is the last offer". E) Skilled negotiators may take all of the above actions.

68. Your firm is a U.K.-based importer of bicycles.You have placed an order with a Swiss firm for SFr.1,000,000 worth of bicycles.Payment (in Swiss francs)is due in 12 months.Detail a strategy using futures contracts that will hedge your exchange rate risk.Have an estimate of how many contracts of what type and maturity. A)Go short 100 12-month Swiss franc futures contracts; and long 50 12-month pound futures contracts. B)Go long 100 12-month Swiss franc futures contracts; and short 50 12-month pound futures contracts. C)Go short 100 12-month Swiss franc futures contracts; and short 50 12-month pound futures contracts. D)Go long 100 12-month Swiss franc futures contracts; and long 50 12-month pound futures contracts. E)None of the above

69. A commitment A) should not be interpreted as a threat. B) postpones the threat of future action. C) is designed to increase both parties' choices to a portfolio of options. D) removes ambiguity about the actor's intended course of action. E) All of the above.

69. Which is not true of limits? A) Are the point where you should stop the negotiation B) Are also called resistance point C) Establishing them is a critical part of planning D) They should be ignored in a bidding war E) All of the above

69. Which of the following is not a reason why an extreme bargaining position tends to produce better results? A. It shows the other party that the bargainer will not be exploited. B. It extends the negotiation and gives the bargainer a better opportunity to gain information on the opponent. C. It lets the bargainer gain less than would probably be possible if a more extreme initial position had been taken. D. It modifies the opponent's beliefs about the bargainer's preferences.

69. Which of the following is not necessary for integrative negotiation to succeed? A) Each party should be as interested in the objectives and problems of the other as each is in his/her own—each must assume responsibility for the other's needs and outcomes as well as for his/her own. B) The parties must be committed to a goal that benefits both of them rather than to pursuing only their own ends. C) The parties must be willing to adopt interpersonal styles that are more congenial than combative, more open and trusting than evasive and defensive, more flexible (but firm) than stubborn (but yielding). D) Needs have to be made explicit, similarities have to be identified, and differences have to be recognized and accepted. E) All of the above are essential for integrative negotiation to succeed.

7. The sensitivity of the firm's consolidated financial statements to unexpected changes in the exchange rate is A. transaction exposure. B. translation exposure. C. economic exposure. D. none of the above

70. A commitment statement should have a A) low degree of finality. B) high degree of specificity. C) an indefinite statement of consequences. D) a high degree of emotionality. E) None of the above should be included in a commitment statement.

70. Does any of the following represent the point at which we realistically expect to achieve a settlement? A) specific target point B) resistance point C) alternative D) asking price E) none of the above

70. Research conducted by John L. Graham shows that during a buyer-seller negotiation simulation: A. Brazilians use a discussion of rewards and commands less than Americans. B. Brazilians use self-disclosures more than Americans. C. Americans make first offers that have equal profit levels as their opponents. D. Americans make more use of commands than their Japanese counterparts.

70. Which of the following is a major characteristic of a pre-settlement settlement? A) The settlement results in a firm, legally binding written agreement between the parties. B) It occurs in advance of the parties undertaking a full-scale negotiation. C) The parties intend that the agreement will be replaced by a more clearly delineated long-term agreement which is to be negotiated. D) It resolves only a subset of the issues on which the parties disagree, and may simply establish a framework within which the more comprehensive agreement can be defined and delineated. E) All of the above are characteristics of a pre-settlement settlement.

71. Negotiators who make threats A) are perceived as more powerful than negotiators who do not use threats. B) receive higher outcomes than negotiators who do not use threats. C) are perceived as more cooperative in distributive negotiations. D) should use detailed, complex statements of demands, conditions and consequences. E) All of the above describe negotiators who make threats.

71. Which of the following factors does not contribute to the development of trust between negotiators? A) We are more likely to trust someone we perceive as similar to us or as holding a positive attitude toward us. B) We often mistrust people who are dependent upon us because we are in a position to help or hurt them. C) We are more likely to trust people who initiate cooperative, trusting behavior. D) We are more likely to trust negotiators who make concessions. E) All of the above contribute to the development of trust between negotiators.

71. Which represents the best deal we can possibly hope to achieve? A) specific target point B) resistance point C) alternative D) asking price E) none of the above

71. Your firm is a Swiss importer of bicycles.You have placed an order with an Italian firm for €1,000,000 worth of bicycles.Payment (in euro)is due in 12 months.Use a money market hedge to redenominate this one-year receivable into a Swiss franc-denominated receivable with a one-year maturity.The following were computed without rounding.Select the answer closest to yours. A)SFr.1,728,900.26 B)SFr.1,600,000 C)SFr.1,544,705.88 D)SFr.800,000

72. Reactive strategies: A) encourage negotiators to be more flexible and creative B) can efficiently clear up confusion about issues C) will lessen a negotiator's defensive posture D) can make negotiators feel threatened and defensive E) none of the above

72. To prevent the other party from establishing a committed position, a negotiator could A) give them the opportunity to evaluate the matter fully. B) acknowledge the other's commitment. C) reiterate the commitment. D) make a joke about the commitment. E) None of the above should be used to prevent the other party from establishing a committed position.

72. When people do not trust each other they are more than likely to engage in which of the following behaviors? A) promoting collaboration B) communicating accurately C) positional bargaining D) committing to a joint solution E) none of the above

72. Your firm is an Italian exporter of bicycles.You have sold an order to a British firm for £1,000,000 worth of bicycles.Payment from the customer (in pounds sterling)is due in 12 months.Use a money market hedge to redenominate this one-year receivable into a euro-denominated receivable with a one-year maturity.The following were computed without rounding.Select the answer closest to yours. A)€1,225,490.20 B)€1,244,212.10 C)€1,250,000 D)€1,219,815.78

73. Hardball tactics are designed to A) be used primarily against powerful negotiators. B) clarify the user's adherence to a distributive bargaining approach. C) pressure targeted parties to do things they would not otherwise do. D) eliminate risk for the person using the tactic. E) Hardball tactics are designed to accomplish all of the above.

73. If the other party has a strong and viable alternative, he/she will A) be dependent on achieving a satisfactory agreement B) appear aggressive and hostile in negotiations C) set and push for high objectives D) have unlimited negotiating authority E) all of the above

73. When formal channels of communication break down, negotiators are permitted to finding alternatives and can use which of the following? A) conversations over coffee breaks B) separate meetings between chief negotiators outside of the formal sessions C) off-the-record contacts between key subordinates D) all of the above E) none of the above

73. Your firm is an Italian importer of British bicycles.You have placed an order with a British firm for £1,000,000 worth of bicycles.Payment (in pounds sterling)is due in 12 months.Use a money market hedge to redenominate this one-year receivable into a euro-denominated receivable with a one-year maturity.The following were computed without rounding.Select the answer closest to yours. A)€1,225,490.20 B)€1,244,212.10 C)€1,250,000 D)€1,219,815.78

74. A negotiator should ask which of the following questions when presenting issues to the other party to assemble information. A) What facts support my point of view? B) Whom may I consult or take with to help me elaborate or clarify the facts? C) What is the other party's point of view likely to be? D) How can I develop and present the facts so they are most convincing? E) All of the above questions should be asked.

74. Aggressive behavior tactics include A) the relentless push for further concessions. B) asking for the best offer early in negotiations. C) asking the other party to explain and justify their proposals item by item. D) forcing the other side to make many concessions to reach an agreement. E) Aggressive behavior tactics include all of the above.

74. Integrative negotiation fails because A) negotiators fail to perceive the integrative potential of the negotiating problem. B) of distributive assumptions about the negotiation problem. C) of the mixed-motive nature of the issues. D) of the negotiator's previous relationship with one another. E) All of the above are reasons why integrative negotiations fail.

75. The negotiator's basic strategy is to A) get information about the opposition and its positions. B) reach the final settlement as close to the other's resistance point as possible. C) convince members of the other party to change their minds about their ability to achieve their own goals. D) promote his or her own objectives as desirable, necessary, and inevitable. E) All of the above.

75. Under which of the following questions of protocol would you find a bargaining relationship discussion about procedural issues that should occur before the major substantive ones have been raised? A) What agenda should we follow? B) Where should we negotiate? C) What is the time period of the negotiation? D) What might be done if negotiation fails? E) How will we keep track of what is agreed to?

75. Which of the following 5-step processes has been used successfully in a collective bargaining situation? A) commitment, explanation, validation, prioritization, negotiation B) commitment, exploration, verification, prioritization, negotiation C) collaboration, explanation, validation, prioritization, negotiation D) collaboration, exploration, verification, prioritization, negotiation E) None of the above processes have been used in collective bargaining.

8. The extent to which the value of the firm would be affected by unexpected changes in the exchange rate is A. transaction exposure. B. translation exposure. C. economic exposure. D. none of the above

80. Your firm is a U.K.-based exporter of British bicycles.You have sold an order to an Italian firm for €1,000,000 worth of bicycles.Payment from the Italian firm (in €)is due in twelve months.Your firm wants to hedge the receivable into pounds.Not dollars.Interest rates are 3% in €,2% in $ and 4% in £.Detail a strategy using spot exchange rates and borrowing or lending that will hedge your exchange rate risk. A.Borrow €970,873.79 in one year you owe €1m, which will be financed with the receivable.Convert €970,873.79 to dollars at spot, receive $1,165,048.54.Convert dollars to pounds at spot, receive £728,155.34. B.Sell €1m forward using 16 contracts at $1.20 per €1.Buy £750,000 forward using 12 contracts at $1.60 per £1. C.Sell €1m forward using 16 contracts at the forward rate of $1.29 per €1.Buy £750,000 forward using 12 contracts at the forward rate of $1.72 per £1. D.None of the above

82. A Japanese EXPORTER has a €1,000,000 receivable due in one year. Estimate the cost today of an options strategy that will eliminate exchange rate risk. A)$20,000 B)$5,000 C)$12,500 D)None of the above

83. A Japanese IMPORTER has a $1,250,000 PAYABLE due in one year. Detail a strategy using forward contracts that will hedge his exchange rate risk. A)Go short in 12 yen forward contracts. B)Go long in 12 yen forward contracts. C)Go short in 16 yen forward contracts. D)None of the above

84. A Japanese IMPORTER has a €1,000,000 PAYABLE due in one year.The one-year risk free rates are i$ = 4.03%; i€ = 6.05%; and i¥ = 1%.Detail a strategy using forward contracts that will hedge his exchange rate risk.Have an estimate of how many contracts of what type. A)Go short in 12 yen forward contracts.Go long in 16 euro contracts. B)Go long in 12 yen forward contracts.Go short in 16 euro contracts. C)Go short in 16 yen forward contracts.Go long in 12 euro contracts. D)None of the above

85. A call option on £1,000 with a strike price of €1,250 is equivalent to A)a put option on €1,250 with an exercise price of €1,000. B)a portfolio of options: a put on €1,250 with a strike price in dollars plus a call on £1,000 with a strike price in dollars. C)a put option on £1,000 with an exercise price of €1,250. D)both a) and b)

87. A put option to sell $18,000 at a strike price of $1.80 = £1.00 is equivalent to A)a call option to buy £10,000 at a strike price of $1.80 = £1.00. B)a call option on $18,000 at a strike price of $1.80 = £1.00. C)a put option on £10,000 at a strike price of $1.80 = £1.00. D)none of the above

88. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts)are available on the London exchange in units of €10,000 with strike prices of £0.80 = €1.00.Options (calls and puts)are available on the Frankfurt exchange in units of £10,000 with strike prices of €1.25 = £1.00.For a U.K.firm to hedge a €100,000 receivable, A)buy 10 call options on the euro with a strike in pounds sterling. B)buy 8 put options on the pound with a strike in euro. C)buy 10 put options on the euro with a strike in pounds sterling. D)buy 8 call options on the pound with a strike in euro. E)both a) and b) F)both c) and d)

89. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts)are available on the Philadelphia exchange in units of €10,000 with strike prices of $1.60/€1.00. Options (calls and puts)are available on the Philadelphia exchange in units of £10,000 with strike prices of $2.00/£1.00. For a U.S.firm to hedge a €100,000 payable, A)buy 10 call options on the euro with a strike in dollars. B)buy 8 put options on the pound with a strike in dollars. C)sell 10 call options on the euro with a strike in dollars. D)sell 8 put options on the pound with a strike in dollars. E)both a) and b) F)both c) and d)

9. With any hedge A. your losses on one side should about equal your gains on the other side. B. you should try to make money on both sides of the transaction: that way you make money coming and going. C. you should spend at least as much time working the hedge as working the underlying deal itself. D. you should agree to anything your banker puts in front of your face.

90. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts)are available on the Philadelphia exchange in units of €10,000 with strike prices of $1.60/€1.00. Options (calls and puts)are available on the Philadelphia exchange in units of £10,000 with strike prices of $2.00/£1.00. For a U.S.firm to hedge a €100,000 receivable, A)buy 10 call options on the euro with a strike in dollars. B)buy 10 put options on the pound with a strike in dollars. C)sell 10 call options on the euro with a strike in dollars. D)sell 8 put options on the pound with a strike in dollars. E)both a) and b) F)both c) and d)

91. Suppose that $2 = £1,$1.60 = €1,and the cross exchange rate is €1.25 = £1.00.If you own a call option on £10,000 with a strike price of $1.50,you would exercise this option at maturity if A)the $/£ exchange rate is at least $1.60/£. B)the $/€ exchange rate is at least $1.60/€. C)the €/£ exchange rate is at least €1.25/£. D)none of the above.

93. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts)are available on the London exchange in units of €10,000 with strike prices of £0.80 = €1.00. Options (calls and puts)are available on the Frankfurt exchange in units of £10,000 with strike prices of €1.25 = £1.00. For an Italian firm to hedge a £100,000 payable, A)buy 10 call options on the pound with a strike in euro. B)buy 8 put options on the euro with a strike in pounds. C)both a) and b) will work. D)simultaneously use strategies a) and b) E)none of the above

94. Suppose that the exchange rate is €1.25 = £1.00. Options (calls and puts)are available on the London exchange in units of €10,000 with strike prices of £0.80 = €1.00.Options (calls and puts)are available on the Frankfurt exchange in units of £10,000 with strike prices of €1.25 = £1.00.For a French firm to hedge a £100,000 receivable, A)buy 10 call options on the pound with a strike in euro. B)buy 8 put options on the pound with a strike in euro. C)buy 10 put options on the pound with a strike in euro. D)buy 8 call options on the euro with a strike in pounds. E)both a) and b) F)both c) and d)

95. A minor currency is A)anything other than the "big six": U.S.dollar, British pound, Japanese yen, euro, Canadian dollar, and Swiss franc. B)any currency that trades at less than one U.S.dollar. C)any currency that is less than a $20 denomination. D)none of the above

96. When cross-hedging, A)try to find one asset that has a positive correlation with another asset. B)the main thing is to find one asset that covaries with another asset in some predictable way. C)try to find one asset that has a negative correlation with another asset. D)none of the above

97. Your firm is bidding on a large construction contract in a foreign country.This contingent exposure could best be hedged A)with put options on the foreign currency. B)with call options on the foreign currency. C)both a) and b), depending upon the specifics ("the rest of the story"). D)with futures contracts.

99. On a recent sale,Boeing allowed British Airways to pay either $18 million or £10 million. A)At the due date, British airways will be indifferent between paying dollars or pounds since they would of course have hedged their exposure either way. B)Boeing has provided British Airways with a free option to buy $18 million with an exercise price of £10 million. C)Boeing has provided British Airways with a free option to sell up to £10 million with an exercise price of $18 million. D)All of the above

A _____ group is a group in which all members but one have the same background, such as a group of Japanese retailers and a British attorney. A. Token B. Multicultural C. Bicultural D. Homogeneous

A _____ group is a group in which there are individuals from three or more different ethnic backgrounds, such as three U.S., three German, three Uruguayan and three Chinese managers who are looking into mining operations in South America. A. Homogeneous B. Token C. Multicultural D. Bicultural

A _____ group is a group in which two or more members represent each of two distinct cultures, such as four Mexicans and four Taiwanese who have formed a team to investigate the possibility of investing in a venture. A. Multicultural B. Bicultural C. Token D. Homogeneous

A _____ group is a group that is characterized by members who share similar backgrounds and generally perceive, interpret and evaluate events in similar ways. A. Multicultural B. Bicultural C. Token D. Homogeneous

A _____ manager believes that people are basically lazy and that coercion and threats of punishment must be used to get them to work. A. Theory Z B. Theory X C. Theory A D. Theory Y

A basic assumption of Maslow's theory is that: A. Lower-level needs must be satisfied before higher-level needs become motivators B. Higher-level needs must be satisfied before lower-level needs become motivators C. There are more ways to satisfy lower-level needs than higher-level ones D. A need that has been satisfied can continue to serve as a motivator

A characterization frame can clearly be shaped by experience with the other party but identity frames (of self) tend to be negative while the characterization frames tend to be positive.

A coalition is created by formal organizational designation.

A common goal is one in which all parties share the result equally.

A company with a(n) _____ predisposition allows the values and interests of the parent company to guide the strategic decisions. A. Polycentric B. Geocentric C. Ethnocentric D. Regiocentric

A company with a(n) _____ predisposition tries to integrate a global systems approach to decision making. A. Regiocentric B. Globalcentric C. Ethnocentric D. Geocentric

A competitive strategy would be appropriate when the relationship outcome is relatively more important to the strategizer than the substantive outcome.

A creative negotiation that meets the objectives of all sides may not require compromise.

A group of workers who meet on a regular basis to discuss ways of improving the quality of work is a: A. Task force B. Committee C. Self-managed team D. Quality control circle

A legal system that requires workers and their managers to discuss major decisions is referred to as: A. Employee empowerment B. Reengineering C. Holistic management D. Codetermination

A negative bargaining range occurs when the buyer's resistance point is above the seller's.

A number of research efforts have been undertaken to replicate the two-factor theory and they: A. Cast doubt on Herzberg's findings B. Support Herzberg's findings C. Are unable to either refute or support Herzberg's findings D. Prove Herzberg's findings to be utterly worthless

A perceptual bias is the subjective mechanism through which people evaluate and make sense out of situations.

A public commitment statement means that the wider the audience, the less likely the commitment will be changed.

A resistance point will be influenced by the cost an individual attaches to delay or difficulty in negotiation.

A single negotiator is simply one of the parties in a multiparty negotiation and wants to ensure that his or her own issues and interests are clearly incorporated into the final agreement

A single planning process can be followed for both a distributive and an integrative process.

A situation in which solutions exist so that both parties are trying to find a mutually acceptable solution to a complex conflict is known as which of the following? A) mutual gains B) win-lose C) zero-sum D) win-win E) None of the above

A small concession late in negotiations may indicate that there is little room left to move.

A temporary coalition operates for a short period of time and is usually focused around a single issue or problem.

A typical assessment center would involve simulation exercises that would include the following except: A. In-basket exercises B. Oral communications of a business plan C. Business decision exercises D. Preparation of a business plan

A widely held belief that has not been found to be accurate is that organizational culture: A. Tends to erase the impact of national culture B. Tends to be affected by national culture C. Cannot easily change the cultural values employees bring to the workplace D. Is different in different subsidiaries

A worker's QWL is directly related to his or her country's: A. Predominant religious beliefs B. Geographic location C. Governmental structure D. Culture

A zero-sum situation is a situation in which individuals are so linked together that there is a positive correlation between their goal attainments

A zero-sum situation is also known by another name of a situation. Which of the following is that? A) integrative B) distributive C) win-lose D) negotiative E) None of the above.

A(n) _____ culture is one in which both public and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well. A. Diffuse B. Neutral C. Emotional D. Specific

A(n) _____ culture is one in which emotions are held in check. A. Emotional B. Buoyant C. Neutral D. Specific

A(n) _____ culture is one in which people are accorded status based on how well they perform their functions. A. Achievement B. Ascription C. Diffuse D. Specific

A(n) _____ culture is one in which status is attributed based on who or what a person is. A. Diffuse B. Ascription C. Specific D. Achievement

A(n) _____ is an evaluation tool that is used to identify individuals with the potential to be selected or promoted to higher-level positions. A. Behavior evaluation center B. Employment suitability center C. Assessment center D. Employment testing center

A(n) _____ organizational culture is characterized by a strong emphasis on equality and orientation to the person. A. Incubator B. Eiffel Tower C. Family D. Guided missile

A(n) _____ predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis. A. Geocentric B. Globalcentric C. Ethnocentric D. Regiocentric

According to Adler, the primary orientation of a global firm is: A. Strategy B. Price C. Market D. Product or service

According to Bass, the active management-by-exception leader: A. Is a visionary agent with a sense of mission, who is capable of motivating their followers to accept new goals and new ways of doing things B. Clarifies what needs to be done and provides both psychic and material rewards to those who comply with his or her directives C. Is an individual who exchanges rewards for effort and performance and works on a "something for something" basis with employees D. Monitors follower performance and takes corrective action when deviations from standards occur

According to Bass, the most effective leaders were characterized by four interrelated factors. These are: A. Idealized influence, inspirational motivation, intellectual stimulation and individualized consideration B. Nurturing personality, creative mindset, willingness to give recognition and intellectual stimulation C. High self-esteem, outgoing personality, inspirational motivation and willingness to give recognition D. Internal locus of control, outgoing personality, individualized consideration and nurturing personality

According to Dutch researcher Geert Hofstede, there are four dimensions of culture. These are: A. Power distance, uncertainty avoidance, individualism and masculinity B. Tolerance, group orientation, aggressiveness and forwardness C. Group orientation, uncertainty avoidance, aggressiveness and masculinity D. Tolerance, power distance, individualism and aggressiveness

According to Hofstede, countries with a high _____ index, place great importance on earnings, recognition, advancement and challenge. A. Power distance B. Masculinity C. Uncertainty avoidance D. Individualism

According to Trompenaars, _____ refers to people regarding themselves as individuals, while _____ refers to people regarding themselves as part of a group. A. Individualism; communitarianism B. Individualism; specificism C. Universalism; particularism D. Communitarianism; universalism

According to a cross-cultural study of differences in work values, _____ managers place a high value on deference to superiors, on company commitment and on the cautious use of aggressiveness and control. A. U.S B. German C. French D. Japanese

According to a cross-cultural study of differences in work values, _____ managers place a high value on the tactful acquisition of influence and regard for others. A. Chinese B. German C. French D. U.S

According to a study conducted by England and Lee, all of the following are accurate descriptions of the similarities in cultural values across nations except: A. Although there are country differences in the relationship between values and success, findings across the four countries included in the study are quite similar B. It is evident that value patterns predict managerial success and could be used in selection and placement decisions C. There is a relatively weak relationship between the level of success achieved by managers and their personal values D. The general pattern indicates that more successful managers appear to favor pragmatic, dynamic, achievement-oriented values, while less successful managers prefer more static and passive values

According to the text, one of the primary areas where TQM is having a big impact is: A. Human resources management B. Manufacturing C. Marketing D. Finance

According to the text, the amount of _____ directly relates to how well or how poorly a unit is judged to perform. A. Revenue B. Expense C. Asset D. Profit

According to the text, the highest cultural priority (or value) in Japan is considered as: A. Cooperation B. Individualism C. Family security D. Belonging

According to the text, the highest cultural priority (or value) in the U.S. is considered as: A. Family security B. Belonging C. Freedom D. Cooperation

According to the text, the most important motivational variable in Zambia is: A. Growth opportunity B. Relations with other C. Work nature D. Fairness in organizational practices

According to the text, value can be added to the marketing approach by carefully tailoring the advertising message to the particular culture. Therefore, advertising in the United States should: A. Target individual achievement B. Be much more indirect and subtle C. Emphasize group references and interpersonal trust D. Emphasize shared responsibility

According to the text, which of the following is a recognized style of leader behaviors? A. Suppressive B. Autocratic C. Participative D. Team-oriented

According to the theory of achievement motivation, all of the following are characteristics of high achievers except: A. They like situations in which they take personal responsibility for finding solutions to problems B. They tend to be team players C. They want concrete feedback on their performance D. They tend to be moderate risk-takers

According to the work of Horovitz, all of the following are common characteristics of British control except: A. Operating units had a large amount of marketing autonomy B. Control was used more for general guidance than for surveillance C. Financial reports were simple and lightly emphasized D. Top management tended to focus attention on major problem areas and did not get involved in specific, detailed matters of control

According to this theory, a great deal of creative potential basically goes untapped and if these abilities can be tapped, workers will provide much higher quantity and quality of output. A. Theory X B. Theory Z C. Theory Y D. Theory A

Achievement motivation theory is associated with the work of Harvard psychologist: A. Geert Hofstede B. Abraham Maslow C. Frederick Herzberg D. David McClelland

Advertising in _____ is predominantly emotional, dramatic and symbolic. A. Japan B. China C. Germany D. France

All negotiations consist of multiple issues.

All of the following are accurate depictions of the Japanese approach to leadership except: A. Management's concern for its employees extends to the whole life, business and social, of the worker B. Decision-making is carried out via group decision-making techniques C. Employment is often for life; layoffs are rare D. Control mechanisms are very explicit; people know exactly what to control and how to do it

All of the following are accurate depictions of the U.S. approach to leadership except: A. Employment is usually short-term; layoffs are common B. Responsibility is shared collectively C. Evaluation and promotion is very fast; those not quickly promoted often seek employment elsewhere D. Decision-making is carried out by the individual manager

All of the following are accurate descriptions of the main characteristics of culture except: A. Culture is inherited or biologically based; it is not acquired by learning and experience B. People as members of a group, organization or society share culture; it is not specific to a single individual C. Culture is cumulative, passed down from one generation to the next D. Culture is based on the human capacity to symbolize or use one thing to represent another

All of the following are assumptions that underlie Theory X management except: A. By their very nature, people do not like to work and will avoid it whenever possible B. Workers have little ambition, try to avoid responsibility and like to be directed C. The primary need of employees is job security D. The expenditure of physical and mental effort at work is as natural to people as resting

All of the following are assumptions that underlie Theory Y management except: A. The expenditure of physical and mental effort at work is as natural to people as resting or playing B. Commitment to objectives is determined by the rewards that are associated with their achievement C. Under proper conditions, the average human being learns not only to accept but to seek responsibility D. The primary need of employees is job security

All of the following are characteristics of low-context cultures except: A. Authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down B. Insiders and outsiders are easily distinguishable and outsiders typically do not gain entrance to the inner group C. Agreements tend to be in writing rather than spoken D. Deep personal involvement with others is not valued greatly

All of the following are characteristics of the Malaysian culture except: A. Relationships between people are relatively short-lived and individuals tend to not feel a deep personal involvement with each other B. Communication often is implicit and individuals are taught from an early age to interpret these messages accurately C. People in authority are personally responsible for the actions of their subordinates and this places a premium on loyalty to both superiors and subordinates D. Agreements tend to be spoken rather than written

All of the following are relevant to leadership examined in the now classic Haire, Ghiselli and Porter study except: A. Communication skills B. Capacity for leadership and initiative C. Sharing information and objectives D. Participation

All the advantages of a committed position work against a negotiator when the other party becomes committed, so it is important to try to prevent the other negotiator from becoming committed.

All the following are true regarding business customs in South Africa except: A. Most South Africans prefer face-to-face interactions B. First meetings are less about business and more about establishing a relationship C. Appointments should be made as far in advance as possible D. Female representatives may encounter condescending behavior or "tests" that would not be extended to male counterparts

All the following factors facilitate the need for international firms to develop unique strategies for different cultures except: A. The importance of being an insider, as in the case of customers who prefer to "buy local" B. The need to allow subsidiaries to use their own abilities and talents and not be restrained by headquarters C. The diversity of worldwide industry standards such as those in broadcasting, where television sets must be manufactured on a country-by-country basis D. A continual demand by local customers for global products and in the case of globally recognized products such as McDonald's hamburgers and Sony televisions

Alternatives are very important in both distributive and integrative processes because they define whether the current outcome is better than any other possibility.

Although a number of approaches to decision-making are used around the world, the overall trend currently is toward: A. Decentralization B. Team-based decision-making C. Centralization D. Decision-making by consensus

Although there is no guarantee that trust will lead to collaboration, there is plenty of evidence to suggest that mistrust inhibits collaboration.

An MNC with an ethnocentric predisposition: A. Redistributes profits globally B. Redistributes profits within the region C. Takes back its profits to its home country D. Retains profits in the host country

An effective means of countering the intimidation tactic is to ignore it.

An important cultural contrast between Arabs and Americans is that of emotion and logic. Arabs often act based on _____; in contrast, those in an Anglo culture are taught to act on _____. A. Emotion; logic B. Logic; emotion C. Reasoning; empathy D. Aptitude; excitement

An individual who pursues his or her own outcomes strongly and shows little concern for whether the other party obtains his or her desired outcomes is using another of the following strategies. Which one? A) yielding B) compromising C) contending D) problem solving E) None of the above

An integrative negotiation problem should be defined as a solution process rather than as a specific goal to be attained.

An organizational strategy and the accompanying techniques that result in the delivery of high-quality products or services to customers is referred to as: A. Total quality management B. Just-in-time management C. Reengineering D. ISO 9000

Anything outside the bargaining range will be summarily rejected by one of the negotiators.

Areas that are examined by the ISO 9000 certification team include all of the following except: A. Design (product or service specifications) B. Process control (instruction for manufacturing or service functions) C. Purchasing service (e.g., instructions for conducting after-sales service) D. Environmental management standards

As a general statement, most evidence indicates that European managers tend to use this approach to leadership. A. Paternalistic B. Participative C. Autocratic D. Authoritarian

As companies become what Alder calls "multinational firms", they often find that _____ tends to dominate all other considerations and the direct impact of culture may lessen slightly. A. Quality B. Serviceability C. Durability D. Price

As firms begin exporting to foreign clients and become what Alder calls "international corporations", they must: A. Increase the standardization of products and services B. Adapt their products but not their approach to those of the local market C. Adapt their approach and products to those of the local market D. Adapt their approach but not their products to those of the local market

As the coalition builds and strengthens, other prospective partners will have more interest in joining on their own, and the founder's power position shifts from strength to weakness.

Austria, the United Kingdom, the United States and Switzerland are all _____ cultures. A. Diffuse B. Specific C. Emotional D. Neutral

Authentic tactics require parties to tell everything they know, so that they can maximize what others know, maximize the common pool of information, and increase the ability of the parties to arrive at a solution that is in their individual and collective interests.

Authoritarian leadership has all of the following characteristics except: A. It typically involves the use of one-way communication from manager to subordinate B. The focus of attention usually is on work progress, work procedures and roadblocks that prevent goal attainment C. It is widely used by Theory Y managers D. It is often effective in handling a crisis

BATNA stands for A) best alternative to a negotiated agreement. B) best assignment to a negotiated agreement. C) best alternative to a negative agreement. D) best alternative to a negative assignment. E) BATNA stands for none of the above

Bass found that the most effective leaders were _____ leaders. A. Transformational B. Transactional C. Variable D. Functional

Because others will be skeptical of lending their support to the coalition, a founder needs to give early partners enough to "make it worth their while."

British managers tend to use a highly _____ leadership approach. A. Authoritarian B. Participative C. Paternalistic D. Autocratic

Buildings and art are considered to be the _____ of a culture. A. Explicit artifacts and product B. Norms and values C. Formal values D. Basic assumptions that govern behavior

Change in the incubator culture is: A. Slow and calculated B. Almost non-existent C. Moderate and methodological D. Fast and spontaneous

Coalitions lack any internal hierarchy or formal legitimate authority.

Coalitions must be permanent, large, and public to be effective.

Compared to non-entrepreneurs, entrepreneurs typically A. Make linear changes to products and systems B. Rely on an organization to guide their thinking C. Require structure support D. Are more creative and innovative

Conflict doesn't usually occur when the two parties are working toward the same goal and generally want the same outcome.

Conflict is a natural part of group life that improves members' ability to complete tasks, work together, and sustain these relationships.

Confucianism, associated with China, does not lay emphasis on: A. Respect for authority B. Balance C. Harmony D. Profit

Context issues (e.g., history of the relationship) can affect negotiation.

Controls that are generally used by MNCs to monitor performance on a monthly basis are: A. Direct B. Indirect C. External D. Internal

Controls that involve face-to-face or personal meetings to monitor operations are A. Direct B. Indirect C. Parallel D. Circular

Controls that use reports and other written forms of communication to control operations are: A. Cultural B. Parallel C. Indirect D. Direct

Countries in which people blindly obey the orders of their superiors have a high: A. Uncertainty avoidance B. Masculinity index C. Power distance D. Individualism index

Countries that have high individualism and relatively low power distance show the following features: A. Prefer others to do things for them B. Are upset when others have more power than they do C. Are not upset when others have more power than they do D. Are collectivist in their approach

Culturally, a German can be expected to have a _____ handshake. A. Gentle B. Light and quick C. Brusk and firm D. Long and involved

Culture is: A. Individual B. Acquired C. Inherited D. Unstructured

Cultures with a low masculinity place great importance on conservation of the environment and tend to favor: A. Third world countries B. Less developed countries C. Underdeveloped countries D. Small-scale enterprises

Cultures with low _____ have people who are more willing to accept that risks are associated with the unknown and that life must go on in spite of this. A. Individualism versus collectivism B. Power distance C. Uncertainty avoidance D. Masculinity versus femininity

Differences in time preferences have the potential to create value in a negotiation.

Differences in work values have been found to reflect: A. Culture only B. Culture and education C. Culture and industrialization D. Industrialization only

Disputes over rights are sometimes referred to formal or informal arbitrators to decide whose standards or rights are more appropriate.

Distributive bargaining strategies and tactics are useful when a negotiator wants to maximize the value obtained in a single deal.

Distributive bargaining strategies are the only strategies that are effective in interdependent situations.

Distributive strategies may generate a pattern of constantly giving in to keep the other happy or to avoid a fight.

Drawing up a firm list of issues before the initial negotiation meeting is a valuable process because it forces negotiators to think through their positions and decide on objectives.

During the information management phase of multiparty negotiations, scouts represent a formal link to some important constituency and help to acquire resources the group needs to continue to operate.

Each party's resistance point is openly stated at the conclusion of negotiations.

Early in a negotiation, it is common for the parties to "talk past each other."

Early in the coalition building process, founders offer only a small share of profits or benefits to potential partners.

Eiffel Tower cultures are most commonly found in: A. Northwestern European countries, such as Germany, Denmark and France B. Asian countries, such as Taiwan, South Korea and Japan C. South American countries, such as Brazil, Argentina and Chile D. North Atlantic countries, such as England, Ireland and Canada

Even though there are distinctions among organization cultures, research shows that managers from different countries often have: A. Same organization policies B. Value similarities C. Class similarities D. Similar political views

Expectancy theory postulates all of the following except: A. Effort will lead to performance B. Performance will lead to specific outcomes C. The outcomes will be of value to the individual D. The employees are controlled by the external environment

Experienced travelers report that the primary criterion for doing business in China is: A. Persuasive top management B. Savvy marketing C. Technical competence D. Hard currency

Financial performance evaluation of a foreign subsidiary or affiliate usually is based on: A. Profits and assets B. Assets and return on investment C. Profit and return on investment D. Assets and owners' equity

Firms with a _____ predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates. A. Polycentric B. Globalcentric C. Regiocentric D. Geocentric

Focusing on interests allows parties to move beyond opening positions and demands to determine what the parties really want—what needs truly must be satisfied.

For positive problem solving to occur, both parties must be committed to stating the problem in neutral terms.

For successful integrative negotiation to occur, each party should be as interested in the objectives and problems of the other side as each is in his own.

Four distinct predispositions, which help determine the specific steps an MNC will follow, are: A. Ethnocentric, polycentric, regiocentric and geocentric B. Intercentric, polycentric, regiocentric and network centric C. Globalcentric, networkcentric, geocentric and polycentric D. Geocentric, intercentric, extracentric, ethnocentric

Frames are important in negotiation because disputes are often nebulous and open to different interpretations.

Framing is about focusing, shaping, and organizing the world around us but does not define persons, events or processes.

French and German managers tend to use work-centered and _____ approach to leadership. A. Authoritarian B. Autocratic C. Paternalistic D. Participative

Gathering information about the other party is a critical step in preparing for negotiation.

General Motor's decision to close some of its U.S. factories and to establish production operations on a worldwide basis is a strategic move aiming to: A. Reduce costs B. Increase quality C. Attack competition D. Diversify risks

George England, a researcher in the area of culture and values, found that personal value systems are: A. Relatively stable and do not change rapidly B. Relatively stable but change rapidly C. Relatively unstable and change rapidly D. Relatively unstable and do not change rapidly

Global firms need: A. Neither an internal nor an external diversity focus B. Both an internal and an external diversity focus C. An internal but not an external diversity focus D. An external but not an internal diversity focus

Halo effects can be positive or negative.

Hardball tactics are infallible if used properly.

Hardball tactics work most effectively against powerful, well-prepared negotiators.

Herzberg-type motivators are of more importance to job satisfaction in: A. Japan B. South Africa C. Zambia D. Israel

Hofstede's _____ dimension focused on the tendency of people to look after themselves and their immediate family rather than the tendency to belong to groups to look after each other in exchange for loyalty. A. Individualism versus collectivism B. Masculinity versus femininity C. Uncertainty avoidance D. Power distance

Hofstede's _____ dimension looked at the relationship between gender and work roles. A. Power distance B. Uncertainty avoidance C. Masculinity versus femininity D. Individualism versus collectivism

How much to believe of what the other party tells you A) depends on the reputation of the other party. B) is affected by the circumstances of the negotiation. C) is related to how he or she treated you in the past. D) is the dilemma of trust. E) All of the above

Hygiene factors include all of the following except: A. Interpersonal relations B. Technical supervision C. Advancement D. Working conditions

ISO 9000 refers to the International Standards Organization (ISO) certification to ensure: A. Quality products and services B. On-time delivery C. Safety standards D. Compliance with worldwide workplace equality standards

Identify an incorrect statement about the French. A. The French are more attracted to those who agree with them B. The French often determine a person's trustworthiness based on his or her firsthand evaluation of the individual's character C. In the workplace, many French people are not motivated by competition or the desire to emulate fellow workers D. The French tend to be friendly, humorous and sardonic, in contrast to Americans

Identify common characteristics found between Australian and Indian managers. A. Both are highly individualistic B. Both are highly pragmatic C. Both have high moral orientation D. Both strongly lay emphasis on competition and risk

Identify the country in which Shell's operating company prioritized the HAIRL appraisal system as Leadership, Analysis, Reality, Imagination and Helicopter. A. Netherlands B. Germany C. France D. Britain

Identify the handshake that does not accurately match the culture it is associated. A. Asian-gentle B. French-light and quick C. Latin America-moderate grasp; repeated frequently D. United States-soft

Identify the leadership style that is best summarized by the statement, "Work hard and the company will take care of you". A. Autocratic B. Authoritarian C. Participative D. Paternalistic

Identify the statement which accurately depicts difference between French and Danish managers in their approach to the decision-making process. A. French managers do not spend as much time analyzing alternatives to optimize production B. Danes do not emphasize control in operations C. French managers are less emotionally responsive and tend to take a straightforward approach D. Danes present each opportunity with a sense of creativity and logic

If a U.S. manager acted the same way with a British manager as he/she does with a Chinese manager, the U.S. manager will be exhibiting a behavioral process referred to as: A. Simplification B. Parochialism C. Ethnocentrism D. Symbolism

If a culture encourages stability, it means that it: A. Is averse to formal procedures B. Encourages innovation C. Is resistant to change D. Focuses on short-term horizons

If a major concession has been made on a significant point, it is expected that the return offer will be on the same item or one of similar weight and comparable magnitude.

If both parties understand the motivating factors for the other, they may recognize possible compatibilities in interests that permit them to invent positions which both will endorse as an acceptable settlement.

If both substance and relationship outcomes are important, the negotiator should pursue a competitive strategy.

If centralized decision-making is in place, the most important decisions are made at the: A. Top management level B. Middle management level C. Level of self-managed work teams D. Operational personnel

If cultural norms do not give employees bonuses or commissions as a form of recognition, it means that the culture: A. Encourages stability B. Is informal C. Is high on organizational loyalty D. Frowns upon individual rewards

If decentralized decision-making is in place, decisions are: A. Made at the top management level B. Made at the middle management level C. Delegated to operating personnel D. Contracted to external consultants

If intangibles are a key point of the bargaining mix, negotiators must know the point at which they are willing to abandon the pursuit of an intangible in favor of substantial gains on tangibles.

If perceptual distortions and initial assumptions are correct, then negotiators may not be able to reverse their effects.

If the group has been through a great deal of divisive and unproductive conflict to reach the first agreement, then the renegotiations do not have to specifically attend to changing and managing the conflict process.

If what we want exceeds what the other party is capable of or willing to give, we must either change our goals or end the negotiation.

In "calculated incompetence," the negotiator is intentionally given false or misleading information to reveal to the other party.

In China _____ is an important need and _____ is a goal. A. Group affiliation; professional achievement B. Professional achievement; individual success C. Group affiliation; harmony D. Individual success; harmony

In China, the term guanxi means: A. Technical competence B. Good connections C. Punctuality D. Business partnership

In Great Britain, Ireland and the United States, managers value their individualism and are motivated by all the following opportunities except: A. Earnings B. Profit-sharing plans C. Advancement D. Recognition

In Japan, what should be done is called _____, while what one really feels, which may be quite different is _____. A. Tatemae; honne B. Honne; ringisei C. Honne; tatemae D. Ringisei; tatemae

In _____, one's social class is very important and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle and the lower. A. India B. Great Britain C. France D. The United States

In a distributive negotiation, the other party may be less likely to disclose information about their limits and alternatives.

In an Israeli kibbutz, the following hygiene factor was regarded as a source of satisfaction rather than dissatisfaction: A. Salary B. Working conditions C. Interpersonal relations D. Technical supervision

In any industry in which repeat business is done with the same parties, there is always a balance between pushing the limit on any particular negotiation and making sure the other party—and your relationship with him—survives intact.

In brainstorming, participants are urged to be spontaneous, even impractical, and to censor anyone's ideas (including their own).

In comparing the control mechanisms used by U.S. and European firms, it has been found that U.S. firms make greater use of _____ control, while European firms rely more heavily on _____ control. A. Output, behavioral B. Bureaucratic, participative C. Behavioral, output D. Participative, bureaucratic

In contrast, non-zero-sum or integrative or mutual gains situations are ones where many people can achieve their goals and objectives.

In domestic situations, when competition increases, management will: A. Integrate product or service lines B. Centralize authority C. Decentralize authority D. Diversify product and service lines

In general, parties tend to argue for the allocation standard that is most likely to serve their individual needs.

In generating alternative solutions to the problem, groups should also adopt procedures for defining the problem, defining the interests, and generating options, however, to prevent the group process from degenerating into a win-lose competition or a debating event.

In his early research, Trompenaars found that in countries such as the United States, Australia, Germany, Sweden and the United Kingdom, there was high: A. Particularism B. Communitarianism C. Universalism D. Specificism

In integrative negotiation, decisions must be finalized in each step of the negotiation process.

In integrative negotiation, the goals of the parties are mutually exclusive.

In integrative negotiations, negotiators are encouraged to state the problem in terms of their preferred solution and to make concessions from these most desired alternatives.

In intragroup conflict, A) sources of conflict can include ideas, thoughts, emotions, values, predispositions, or drives that are in conflict with each other. B) conflict occurs between individual people. C) conflict affects the ability of the group to resolve differences and continue to achieve its goals effectively. D) conflict is quite intricate because of the large number of people involved and possible interactions between them. E) None of the above describes intragroup conflict.

In logrolling, if the parties do in fact have different preferences on different issues, each party gets their most preferred outcome on their high priority issue and should be happy with the overall agreement.

In multiparty negotiations, research shows that parties who approached multiple issues simultaneously achieved lower quality agreements.

In new bargaining relationships, discussions about procedural issues should occur after the major substantive issues are raised.

In organizational settings, veto players are most likely to be founders because they already control a majority of the power in the organization.

In practice, guanxi resembles: A. Nepotism B. Individualism C. Commercialism D. Parochialism

In regard to the cultural dimension, "What is the conception of space?" the dominant characteristic for American managers is: A. Private B. Mixed C. Shared D. Public

In regard to the cultural dimension, "What is the person's relationship to other people?" the dominant characteristic for American managers is: A. Hierarchic B. Collectivist C. Communal D. Individualist

In the Dual Concerns Model, the level of concern for the individual's own outcomes and the level of concern for the other's outcomes are referred to as the A) cooperativeness dimension and the competitiveness dimension. B) the assertiveness dimension and the competitiveness dimension. C) the competitiveness dimension and the aggressiveness dimension. D) the cooperativeness dimension and the assertiveness dimension. E) None of the above

In the _____ stage of group development, attention may be directed more toward describing and analyzing the problem or task that has been assigned. A. Entry B. Work C. Action D. Reflection

In the _____ stage of group development, the focus should be on building trust and developing team cohesion. A. Entry B. Work C. Action D. Reflection

In the context of job design and work centrality, the acronym QWL stands for: A. Quantity of Work Load B. Quality of Work Life C. Quality of Work Load D. Quality of Work Level

In the graphic representation of the model of culture, the center or heart of culture is the: A. Explicit artifacts and products of the society B. Norms and values that guide the society C. Implicit, basic assumptions that guide people's behavior D. History of a nation and the resulting norms of behavior

In the two-factor motivation theory, the job content factors which include achievement, recognition, responsibility, advancement and the work itself are referred to as: A. Inducement factors B. Reward factors C. Hygiene factors D. Motivators

In which of the following countries are spots viewed as cultural events and reviewed as if they were literature or films? A. India B. China C. Germany D. France

In work motivation, factors controlled by the organization, such as conditions, hours, earnings, security, benefits and promotions are referred to as: A. Job context factors B. Job content factors C. Job process factors D. Job inducement factors

In work motivation, factors internally controlled, such as responsibility, achievement and the work itself are referred to as: A. Job process factors B. Job inducement factors C. Job content factors D. Job context factors

Individualistically motivated parties in multiparty negotiations are more trusting and engage in less argumentation.

Initially, after the breakup of the Soviet Union, the republics called themselves the: A. Newly Independent States B. Commonwealth of Independent States C. Federation of Independent Republics D. United Republics of the former Soviet Union

Intangibles can lead the negotiator to fight harder to attain a particular solution option if that option satisfies both tangibles and intangibles.

Integrative agreements have been shown to be facilitated when parties exchanged information about their positions on particular issues, but not necessarily about their priorities on those issues.

Interdependent parties' relationships are characterized by A) interlocking goals. B) solitary decision making. C) established procedures. D) rigid structures. E) Interdependent relationships are characterized by all of the above

Interests are what a negotiator wants.

Interests may be process-based and relationship-based.

International managers use a _____ to establish performance standards of operations. A. Control approach B. Strategic approach C. Organizing approach D. Objective standard

Intragroup conflict occurs between groups.

Intrinsic relationship interests exist when the parties derive positive benefits from the relationship and do not wish to endanger future benefits by souring it.

It is important to set priorities and possibly assign points for both tangible and intangible issues.

It is important to signal to the other party with either behavior or words that the concessions are almost over.

It is not possible to evaluate packages the same way as evaluating individual issues.

It is possible to ignore intangibles, because they affect our judgment about what is fair, or right, or appropriate in the resolution of the tangibles.

It is sufficient to learn about the other party's interests and resources.

It is uncommon for coalitions to exist before negotiations begin.

Japan is well-known for favoring this approach to leadership. A. Paternalistic B. Autocratic C. Authoritarian D. Suppressive

Japanese firms tend to have a culture of deference which is supported by all of the following except A. the unwillingness of workers to report problems to their superiors B. the unwillingness of workers to question their superiors C. the unwillingness of workers to challenge what has been decided D. the unwillingness of workers to be loyal to the firm

Kaizen is a Japanese term that means: A. Employee empowerment B. Continuous improvement C. Quality comes first D. Teamwork

Large bargaining mixes allow many possible components and arrangements for settlement.

Latent coalitions are interests groups which previously formed, but which are currently inactive.

Leader behaviors can be translated into three commonly recognized styles. These are: A. Autocratic, suppressive and cooperative B. Authoritarian, paternalistic and participative C. Suppressive, paternalistic and team-oriented D. Cooperative, team-oriented and participative

MNCs based in the United States tend to use fairly _____ decision-making in managing their overseas operations. A. Decentralized B. Participative C. Team-based D. Centralized

MNCs generally use direct controls to monitor performance on a: A. Semi-annual basis B. Monthly basis C. Bi-monthly basis D. Quarterly basis

Malaysia has what is called a _____. A. Moderate-context culture B. Low-context culture C. Variable-context culture D. High-context culture

Many in the United States believe that it is more difficult to get along with the _____ than with other Europeans. A. Germans B. Austrians C. Spanish D. French

Many of the most important factors that shape a negotiation result do not occur during the negotiation, but occur after the parties have negotiated.

Maslow postulated that everyone has five basic needs, which constitute a need hierarchy. In ascending order, beginning with the most basic, they are: A. Physiological, safety, social, esteem and self-actualization needs B. Social, safety, physiological, self-actualization and esteem needs C. Safety, physiological, esteem, self-actualization and social needs D. Esteem, social, physiological, safety and self-actualization needs

Most French organizations tend to be: A. Highly centralized and have rigid structures B. Highly decentralized and have lose structures C. Highly centralized and have lose structures D. Highly decentralized and have rigid structures

Most of the complexities in multiparty negotiations will increase linearly, if not exponentially, as more parties, constituencies, and audiences are added.

Most research in international human resource management has been _____, because these theories examine motivation in more general terms and are more useful in creating a composite picture of employee motivation in a particular country or region. A. Content-oriented B. Context-oriented C. Procedure-oriented D. Process-oriented

Most situations are mixed-motive negotiations, containing some elements that require distributive bargaining processes, and others that require integrative negotiation.

Multicultural teams are most effective when they face tasks requiring: A. Cost-cutting B. Confidentiality C. The application of routine technologies D. Innovativeness

Multiple communication channels should not be used as they inevitably pass along inaccurate and confusing information.

Nations that are collectivist in their approach tend to be characterized by: A. Large power distance and low individualism B. Low power distance and high individualism C. Small power distance and weak uncertainty avoidance D. Large power distance and weak uncertainty avoidance

Negotiation is a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for an organized lobby

Negotiation is a strategy for productively managing conflict

Negotiation situations have fundamentally the same characteristics,

Negotiations with a positive settlement range are obvious from the beginning.

Negotiators always ask about the other party's perceptions and thoughts.

Negotiators do not have to be versatile in their comfort and use of both major strategic approaches to be successful.

Negotiators pursuing the yielding strategy A) show little interest or concern in whether they attain their own outcomes, but are quite interested in whether the other party attains his or her outcomes. B) pursue their own outcome strongly and shows little concern for whether the other party obtains his or her desired outcome. C) shows little interest or concern in whether they attain their own outcomes, and does not show much concern about whether the other party obtains his or her outcomes. D) show high concern for attaining their own outcomes and high concern for whether the other attains his or her outcomes. E) Negotiators pursuing the yielding strategy demonstrate none of the above behaviors

Negotiators usually set clear objectives that can serve as standards for evaluating offers and packages.

Negotiators who are firmer about insisting that their own point of view become incorporated into the group solution achieve less integrative agreements than those who are less firm.

Negotiators who feel positive emotions are more likely to be inflexible in how they arrive at a solution to a problem.

Negotiators who have some way to control the number of parties at the table may begin to strategically manipulate this control to serve their objectives.

Normative power has no strategic function.

Norms are reflected by things such as: A. Common language, terminology and rituals B. How employees and customers should be treated C. The amount of work to be done D. By the way participants feel about the way they are treated by higher-level management

Observed behavioral regularities are typified by the following except: A. Common language B. Terminology C. Customer relations D. Rituals

One pointer on how to chair a multiparty negotiation effectively is to encourage people to express interests, mirror them back, and encourage people to identify not only what they want, but also why they want it.

One reason that Americans and Japanese work such long hours is due to: A. High stress levels B. Low employee turnover C. High cost of living D. Employee complacency

One way negotiators may convey the message that "this is the last offer" is by making the last concession substantial.

Opponents are parties with whom a negotiator has high agreement on the vision or objectives, but low to moderate levels of trust.

Organizational climate is reflected by: A. The degree of cooperation between management and employees B. Common language, terminology and rituals C. High product and service quality D. The way participants interact with each other

Parties are likely to assume a particular frame because of one factor.

Parties feel better about a settlement when negotiations involve a progression of concessions.

Parties pursuing one of the following strategies show little interest or concern in whether they attain their own outcomes, and do not show much concern about whether the other party obtains his or her outcomes. Which of the ones listed below? A) contending B) compromising C) problem solving D) yielding E) None of the above

Parties should enter the integrative negotiation process with few preconceptions about the solution.

Paternalism, measured by a manager's involvement in both personal and off-the-job problems of subordinates is very important in: A. The United States B. Australia C. Japan D. France

PepsiCo, personnel are expected to be cheerful, positive, enthusiastic and have committed optimism. This is an example of: A. Being influenced by the external environment B. Trying to "fit-in" C. A top-down form of management D. Promoting community values

Perception is the process by which individuals "connect" to their environment.

Positive organizational scholarship consists of the following subunits except: A. Enablers B. Motivations C. Outcomes or effects D. Followers

Positive organizational scholarship: A. Focuses on positive outcomes, processes and attributes of organizations and their members B. Focuses avoiding, intervening or accepting responsibility for follower actions C. Takes action or intervenes in situations only when standards are not met D. Monitors follower performance and takes corrective action when deviations from standards occur

Power distance describes A) the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. B) the extent to which the society is organized around individuals or the group. C) the extent to which cultures hold values that were traditionally perceived as masculine or feminine. D) the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. E) None of the above describes power distance.

Process theories of work motivation: A. Explain how employee behavior is aroused and energized B. Explain how employee behavior is initiated C. Give a composite picture of employee motivation in a particular region D. Have more value to the study of employee motivation in international setting

Reframing does not require negotiators to be flexible during a negotiation but they should anticipate that multiple contingencies may arise during negotiations...

Remember that every possible interdependency has an alternative; negotiators can always say "no" and walk away.

Research on policy-making and decision-making groups has shown that efforts to minimize and avoid conflict can frequently lead to group decision-making disasters.

Research reveals that far from addressing regional differentiation issues, many MNCs are committed to a(n) _____, which is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness. A. International complacency B. Globalization imperative C. Worldwide indifference D. Cross-cultural contentment

Researchers have suggested that Maslow's theory needs a(n): A. Capitalist perspective B. Collectivist perspective C. Individualist perspective D. Social individualist perspective

Researchers like Hofstede recommended that lower-level personnel should be given: A. Physical rewards B. The opportunity to use one's skill C. A cooperative environment D. Autonomy

Return on investment (ROI) is measured by dividing: A. Profit by assets B. Revenues by profit C. Expenses by revenues D. Profit by expenses

Rules that dictate the dos and don'ts of employee behavior relating to areas such as productivity, customer relations and intergroup cooperation, are characteristics associated with organizational: A. Ethics B. Ambience C. Culture D. Structure

Salary under Herzberg's theory is: A. A social need B. A motivator C. Esteem need D. A hygiene factor

Satisfaction with a negotiation is determined by A) the process through which an agreement is reached and the dollar value of concessions made by each party. B) the actual outcome obtained by the negotiation as compared to the initial bargaining positions of the negotiators. C) the process through which an agreement is reached and by the actual outcome obtained by the negotiation. D) the total dollar value of concessions made by each party. E) Satisfaction with a negotiation is determined by none of the above

Selective presentation can be used to lead the other party to form the desired impression of your resistance point or to open up new possibilities for agreement that are more favorable to the presenter than those that currently exist.

Single-issue negotiations and the absence of a long-term relationship with the other party are the strongest drivers of claiming value strategies.

Single-issue negotiations can often be made integrative by working to decrease the number of issues.

Societal collectivism refers to the degree to which: A. Individuals express pride, loyalty and cohesiveness in their organizations or families B. Individuals in organizations or societies encourage and reward individuals for being fair C. Organizational and societal institutional practices encourage and reward collective distribution of resources and collective action D. Individuals in organizations or societies are confrontational

Stereotyping and halo effects are examples of perceptual distortion by the anticipation of encountering certain attributes and qualities in another person.

Studies indicate that negotiators who make low or modest opening offers get higher settlements than do those who make extreme opening offers.

Successful bridging requires a fundamental reformulation of the problem such that the parties are no longer squabbling over their positions; instead, they are disclosing sufficient information to discover their interests and needs and then inventing options that will satisfy both parties' needs.

Tangible factors A) include the price and terms of agreement. B) are psychological motivations that influence the negotiations. C) include the need to look good in negotiations. D) cannot be measured in quantifiable terms. E) None of the above statements describe tangible factors

Telling people about a perceptual or cognitive bias, or having them discuss things in a group meeting, will make the bias go away.

The Delphi technique may tend to generate compromise settlements rather than truly creative, integrative solutions.

The Haire and follow-up studies dealt only with: A. Clerks B. Managers C. Technicians D. Unskilled workers

The Japanese method of training workers for all jobs on the line, even though they eventually are assigned to a single workstation is known as: A. Training overkill B. Taguchi method C. Kaizen D. Ringisei

The People's Republic of China had a long tradition of isolation until Deng Xiaoping opened his country to the world in: A. 1947 B. 1989 C. 1932 D. 1979

The U.S. cultural value that suggests that individuals can influence the future is reflected in which management function? A. goal setting and career development B. loyalty and commitment C. career development and marketing D. planning and scheduling

The United Kingdom shows the following characteristics regarding the corporate dimension: A. Administrative B. Industrial C. Pragmatic D. Commercial

The United States has what is called a _____. A. Moderate-context culture B. Low-context culture C. Variable-context culture D. High-context culture

The _____ organizational culture is oriented to work, which typically is undertaken by teams or project groups. A. Family B. Incubator C. Guided missile D. Eiffel Tower

The amount remaining after all expenses are deducted from total revenues is referred to as: A. Remuneration B. Profit C. Returns D. Proceeds

The benefits or advantages of culturally diverse groups include the following except: A. Enhanced creativity B. Improved decision-making C. Increased effectiveness of organization performance D. Glass-ceiling protection

The best response to the chicken tactic is to challenge the other party by responding with one's own chicken tactic, thereby calling the other's bluff.

The creation of uncertainty and the analysis of many alternatives regarding future action is referred to as: A. Variety expansion B. Variety subtraction C. Variety amplification D. Variety reduction

The decision-making process called ringisei is generally used by the A. Germans B. Chinese C. Japanese D. Italians

The definition of issues at stake in a negotiation may not change as the discussion evolves.

The desire to fulfill one's basic needs of food, clothing and shelter are included in: A. Esteem needs B. Social needs C. Physiological needs D. Safety needs

The dominant force for success in negotiation is in the dialogue that takes place prior to the planning.

The dual concerns model has two dimensions: the vertical dimension is often referred to as the cooperativeness dimension, and the horizontal dimension as the assertiveness dimension.

The effective negotiator needs to understand how people will adjust and readjust, and how the negotiations might twist and turn, based on one's own moves and the others' responses.

The external control process differs from the internal control in that the external control: A. Encourages harmony, responsiveness and sensibility B. Focuses on self, function, one's own group and one's own organization C. Proves to be uncomfortable when the environment seems out of control or changeable D. Has a dominating attitude bordering on aggressiveness toward the environment

The factors Welsh, Luthans and Sommer observed among the Russian workforce that seemed to increase worker performance are: A. Value of extrinsic reward and participative techniques B. Value of extrinsic reward and behavioral management C. Participative techniques and behavioral management D. Value of intrinsic reward and participative techniques

The failure to reach integrative agreements is often linked to the failure to exchange sufficient information that will allow the parties to identify integrative options.

The family culture is foreign to most in: A. China B. United States C. Venezuela D. Turkey

The first assumption about the motivation process is that it is: A. Universal B. Country specific C. Culturally explicit D. Regionally distinct

The first step for a negotiator completing a distributive bargaining negotiation is to obtain information about the other party's outcome values and resistance points.

The five criteria in the acronym HAIRL stands for: A. Helicopter, analysis, imagination, reality and leadership B. Hierarchy, awareness, ingenuity, reverie and leadership C. Helicopter, action, interest, reality and leadership D. Hierarchy, action, ingenuity, reverie and leadership

The focus of attention of this leadership style usually is on work progress, work procedures and roadblocks that are preventing goal attainment. A. Participative B. Authoritarian C. Paternalistic D. Laissez-faire

The following are accurate representation of the differences in control measures used by European and American managers except: A. Americans tend to control operations through reports and other objective, performance related data B. Socio-emotional control systems are preferred by European firms C. American managers like task-oriented control D. European firms are more centralized than American firms

The following are common problems that MNCs face in attempting to control their overseas operations except: A. The objectives of the foreign operation and the corporate objectives are similar B. The objectives of joint-venture partners and corporate management conflict C. Amount of experience and competence in planning are widely diverse among foreign CEOs D. Basic philosophic conflicts exist about objectives and policies of foreign operations, largely because of cultural differences between home and host-country managers

The following are the steps outlined by Numeroff and Abrahams used during mergers and acquisitions except: A. Establishing the purpose, goal and focus of the merger B. Developing mechanisms to identify the least important organizational structures and management roles C. Determining who has authority over the resources needed for getting things done D. Identifying the expectations of all involved parties and facilitate communication

The following deal with largest, global markets: A. International Corporations B. Domestic Corporations C. Global Corporations D. Multinational Corporations

The following definitions accurately match their dimension of culture except: A. People as members of a group, organization or society share culture B. Culture has structure and is integrated C. Culture is based on the human capacity to change or adapt D. Culture is cumulative, passed down from one generation to another

The following factors encourage the use of centralized decision-making except: A. Large company size B. Large capital investment C. Heterogeneous product lines D. High degree of technology

The following factors encourage the use of decentralized decision-making except: A. Small company size B. Relatively low importance to MNC C. High degree of technology D. Stable environment

The following is not a motivator: A. Advancement B. Responsibility C. Working conditions D. The work

The following needs are correctly matched with their descriptions except: A. Physiological needs-the need for food, clothing, shelter and other basic, physical needs B. Safety needs-the desire for security, stability and the absence of pain C. Social needs-the need for power and status D. Self-actualization needs-the desire to reach one's full potential by becoming everything one is capable of becoming

The frames of those who hear or interpret communication may create biases of their own.

The hierarchy-of-needs theory is based primarily on work by _____; a well-known U.S. psychologist now deceased. A. David McClelland B. Geert Hofstede C. Frederick Herzberg D. Abraham Maslow

The importance of work in an individual's life relative to other areas of interest is referred to as: A. Work prominence B. Work centrality C. Work salience D. Work objectivity

The internal control process differs from the external control in that the internal control: A. Encourages harmony, responsiveness and sensibility B. Focuses on the self, function, one's own group and one's own organization C. Proves to be comfortable with waves, shifts and cycles, which are regarded as "natural" D. Has a flexible attitude, willing to compromise and keep the peace

The leadership process used by Japanese managers places a strong emphasis on _____ goals. A. Distinct B. Indeterminate C. Ambiguous D. Specific

The leadership scholar that coined the terms "Theory X" and "Theory Y" management was: A. Robert Blake B. William Ouchi C. Sheila Puffer D. Douglas McGregor

The least important goal for professional technical personnel from various countries is: A. Benefits B. Security C. Efficient department D. A successful company

The limiting of uncertainty and the focusing of action on a limited number of alternatives is referred to as: A. Variety amplification B. Variety reduction C. Variety augmentation D. Variety expansion

The more sophisticated the level of technology, the greater the use of _____ decision-making. A. Participative B. Centralized C. Decentralized D. Team-based

The more you can do to convince the other party that his or her costs of delay or aborting negotiations will be costly, the more likely he or she will be to establish a modest resistance point.

The most common types of performance measures used for control purposes include the following except: A. Financial performance B. Quality performance C. International monetary performance D. Personnel performance

The need to interact and affiliate with and, to feel wanted by others are included in: A. Physiological needs B. Safety needs C. Social needs D. Esteem needs

The needs for power and status come under: A. Self-actualization needs B. Esteem needs C. Social needs D. Safety needs

The objective of "closing the deal" is to build commitment to the agreement.

The parties prefer to negotiate and search for agreement rather than to fight openly, have one side dominate and the other capitulate, permanently break off contact, or take their dispute to a higher authority to resolve it

The pattern of give-and-take in negotiation is a characteristic exclusive to formal negotiations.

The philosophical assumptions of both the Chinese and the Russian managers help dictate the leadership approach that they use. The assumptions are most easily seen in the: A. Managers' pay scale B. Managers' behavior C. Managers' qualifications D. Managers' years of experience

The philosophy, "Anything worth doing in the area of quality is worth overdoing." is the management attitude of the A. French B. Danish C. Japanese D. Americans

The process of choosing a course of action among alternative is referred to as: A. Supervision B. Directing C. Decision-making D. Controlling

The process of evaluating results in relation to plans or objectives and deciding what action, if any, to take is referred to as: A. Directing B. Decision-making C. Supervising D. Controlling

The process of exhibiting the same orientation toward different culture groups is referred to as: A. Parochialism B. Symbolism C. Nationalism D. Simplification

The process of giving individuals and teams the resources, information and authority they need to develop ideas and effectively implement them is referred to as: A. Total quality management B. Reengineering C. Empowerment D. Kaizen

The process of influencing people to direct their efforts toward the achievement of some particular goal is referred to as: A. Leadership B. Management C. Directing D. Controlling

The pursuit of only a singular, substantive goal often tends to support the choice of a competitive strategy.

The question of how best to manage perceptual and cognitive bias is not a difficult one.

The resistance point is the point at which a negotiator would like to conclude negotiations.

The tables from Hofstede's research show that _____ needs rank highest for professionals and managers. A. Safety and social B. Social and esteem C. Esteem and self-actualization D. Social and physiological

The theory that focuses on how individuals go about setting goals and responding to them and the overall impact of this process on motivation is: A. Equity theory B. Motivation theory C. Expectancy theory D. Goal-setting theory

The theory that focuses on how motivation is affected by people's perception of how fairly they are being treated is the: A. Goal-setting theory B. Equity theory C. Motivation theory D. Expectancy theory

The three basic elements in the process of motivation are: A. Needs, abilities and desires B. Desires, drives and accomplishments C. Needs, drives and goal attainment D. Perceptions, attitudes and goal attainment

The top-ranking goal for professional technical personnel from various countries is: A. Personal time B. Friendly department C. Autonomy D. Training

The two-factor theory of motivation holds that two sets of factors influence job satisfaction. These are: A. Inducement, subsistence B. Advancement, responsibility C. Hygiene, motivators D. Recognition, rewards

The two-factor theory was formulated by well-known work-motivation theorist: A. Frederick Herzberg B. Geert Hofstede C. David McCelland D. Abraham Maslow

The typical broad, self-deprecating _____ commercial amuses by mocking both the advertiser and consumer. A. British B. Chinese C. Japanese D. French

The use of monthly operating reports that are sent to the home office is a common example of: A. Direct control B. Indirect control C. External control D. Cultural control

The use of quality circles is a TQM technique associated with the control function which was popularized by the: A. Japanese B. Germans C. French D. Chinese

The value of a person's BATNA is always relative to the possible settlements available in the current negotiation, and the possibilities within a given negotiation are heavily influenced by the nature of the interdependence between the parties.

The way an issue is framed will not influence how negotiators perceive risk and behave in relation to it.

The word namaste means "greetings to you" in: A. China B. Japan C. India D. Russia

Theory Z leadership is associated with the work of: A. Robert Blake B. William Ouchi C. Sheila Puffer D. Douglas McGregor

There are three aspects of organizational functions that seem to be especially important in determining an MNC's organizational culture. These are: A. The general views that employees hold about the MNC's purpose, destiny, goals and their places in them; the age of the organization; and the degree of cultural diversity among the members of the organization B. The general relationship between the managers and rank-and-file employees in the organization; the degree of cultural diversity among the members of the organization; and the hierarchical system of authority that defines the roles of managers and subordinates C. The degree of cultural diversity among the members of the organization; the age of the organization; and the strength of the organization's leadership D. The general relationship between the employees and their organization; the hierarchical system of authority that defines the roles of managers and subordinates; and the general views that employees hold about the MNC's purpose, destiny, goals and their places in them

There are three ways in which the complexity increases as five or more parties simultaneously engage in negotiation.

These leaders are individuals who exchange rewards for effort and performance and work on a "something for something" basis. A. Variable B. Functional C. Transactional D. Transformational

These leaders are visionary agents with a sense of mission, who are capable of motivating their followers to accept new goals and new ways of doing things. A. Transactional B. Negotiable C. Transformational D. Formational

These leaders expect everyone to work hard; in turn, the employees will be guaranteed employment and given security benefits such as medical and retirement programs. A. Participative B. Paternalistic C. Autocratic D. Authoritarian

This certification is becoming a necessary prerequisite to doing business in the EU and also is increasingly used as a screening criterion for bidding on contracts or getting business in the United States and other parts of the world. A. ISO 10006 B. ISO 9000 C. ISO 14000 D. ISO 19011

This individual monitors follower performance and takes corrective action when deviations from standards occur. A. Contingent reward leader B. Active management-by-exception leader C. Passive management-by-exception leader D. Laissez-faire leader

This is a dynamic view that factors in fundamental concerns, but ultimately emphasizes positive human potential. A. GLOBE B. CR C. POS D. LF

This leader avoids intervening or accepting responsibility for follower actions. A. Passive management-by-exception leader B. Laissez-faire leader C. Contingent reward leader D. Active management-by-exception leader

This leadership is the use of work-centered behavior that is designed to ensure task accomplishment. A. Authoritarian B. Suppressive C. Paternalistic D. Laissez-faire

This leadership style uses work-centered behavior coupled with a protective employee-centered concern. A. Participative B. Paternalistic C. Authoritarian D. Autocratic

This manager believes that under the right conditions, people will not only work hard but also seek increased responsibility and challenges. A. Theory X B. Theory Z C. Theory Y D. Theory A

Those advocating an equity allocation standard argue that those who contributed more should receive more , in proportion to the magnitude of their contribution.

Those founders who have a small, uniform network of strong ties are in a better situation to form a coalition than those who have a large, diverse network of weak ties.

To build trust among virtual team members, managers should A. Deep-six the egos and be friendly B. Build a shared mythology C. Avoid long lags in responding, unilateral priority shifts, and failure to follow up on commitments D. Keep the door open except when on private calls

To ensure good communication in global teams, managers should do all of the following except A. Hold an initial meeting in which all members introduce themselves and describe their jobs B. Hold regular meetings throughout the project to ensure everyone is "on the same page" C. Avoid the use of email, and use only video conferencing of telephone communication to avoid misunderstandings D. Put the details of the project in writing

To most people the words "bargaining" and "negotiation" are A) mutually exclusive. B) interchangeable. C) not related. D) interdependent. E) None of the above

To motivate employees, especially in foreign countries with high individualism companies tend to offer: A. Non-financial perks B. Telecommunications C. Local area networks D. Financial incentives

To respond to hardball tactics, a negotiator must identify the tactic quickly and understand what it is and how it works.

Trompenaars found that a(n) _____ organizational culture is common in countries such as Turkey, Pakistan, Venezuela, China, Hong Kong and Singapore. A. Eiffel Tower B. Family C. Guided missile D. Incubator

Two common ways of looking at how MNCs control operations are: A. Determining whether the organization uses accounting or strategic controls and by choosing whether the enterprise uses simple or complex controls B. By looking at the ways in which the organization uses hierarchical and bureaucratic controls and by looking at the ways in which the organization uses external or internal controls C. Choosing whether the enterprise uses simple or complex controls and by determining whether the organization uses financial or strategic controls D. Determining whether the enterprise chooses to use internal or external control and by looking at the ways in which the organization uses direct and indirect controls

U.S. managers believe that to motivate workers, it is necessary to satisfy their: A. Higher-order needs B. Safety needs C. Lower-order needs D. Physiological needs

Under GLOBE analysis, which of the following countries were the most assertive? A. Spain and U.S B. Egypt and U.S C. Spain and Ireland D. Ireland and Sweden

Under a(n) _____ culture, jobs are well defined, employees know what they are supposed to do and everything is coordinated from the top. A. Guided missile B. Family C. Eiffel Tower D. Incubator

Usually, this leadership behavior satisfies some employee needs and in turn subordinates tend to exhibit loyalty and compliance. A. Participative B. Authoritarian C. Paternalistic D. Autocratic

Visits by top executives to overseas affiliates or subsidiaries is a common form of: A. Indirect control B. External control C. Cultural control D. Direct control

What are the two dilemmas of negotiation? A) the dilemma of cost and the dilemma of profit margin B) the dilemma of honesty and the dilemma of profit margin C) the dilemma of trust and the dilemma of cost D) the dilemma of honesty and the dilemma of trust E) None of the above.

When UpJohn Company merged with Pharamcia AB, problems emerged forcing the partners to meet and talk about their cultural differences. This is an example which illustrates that: A. Organizational culture clashes often occur when partners do not fully understand the culture of the new partner B. There often are substantial differences between the organizational cultures of different subsidiaries and of course, this can cause coordination problems C. Organizational culture tends to moderate or erase the impact of national culture D. Companies deliberately maintain distinct business cultures because they do not want one culture influencing the other

When _____ occurs, group participants believe that their ideas and actions are correct and that those who disagree with them are either uninformed or deliberately trying to sabotage their efforts. A. Group cognitive inertia B. Group reverse vigilance C. Groupthink D. Static decision-making

When a chairperson is also advocating a particular position or preferred outcome, it will be difficult for that individual to act or be seen as "neutral."

When a specific solution must meet the criteria of both quality and acceptability, those evaluating the solution options may have to be prepared to make trade-offs between the two to insure that both criteria are met.

When a team negotiates against a solo negotiator, these positive benefits of team negotiation do not occur.

When brought into the conversation, these secondary concerns often transform the conversation about the primary issues.

When doing business in India, all of the following behaviors are appropriate except: A. Being "fashionably late" for meetings B. Avoiding personal questions unless the other individual is a friend or close associate C. Addressing doctors or professors in accordance with their titles D. Refraining from public displays of affection

When individuals join a multinational corporation they bring their national culture, which greatly affects all the following except: A. Learned beliefs B. Ethnicity C. Attitudes and values D. Behaviors

When it works well, the _____ culture can catalyze and multiply the energies of the personnel and appeal to their deepest feelings and aspirations. A. Incubator B. Guided missile C. Eiffel Tower D. Family

When the goals of two or more people are interconnected so that only one can achieve the goal—such as running a race in which there will be only one winner—this is a competitive situation, also known as a non-zero-sum or distributive situation

When the subsidiary is selling new products in growing markets, _____ decision making is more likely. A. External B. Decentralized C. Centralized D. Neutralized

Whereas distributive bargaining is often characterized by mistrust and suspicion, integrative negotiation is characterized by which of the following? A) obligation and perseverance B) avoidance and compromise C) influence and persuasiveness D) trust and openness E) cognition and emotion

Whether the integrative negotiation is simple or complex, the evaluation and selection steps must always be kept separate, or a contamination of the negotiation effort may occur after an informal decision has already been made.

Which is not a characteristic of a negotiation or bargaining situation? A) conflict between parties B) two or more parties involved C) an established set of rules D) a voluntary process E) None of the above is a characteristic of a negotiation

Which of the following are accurate depictions of the leadership style adopted by the managers of many Middle Eastern companies? A. Highly authoritarian tone; rigid instructions B. Less bureaucratic; more delegation of authority C. Informal control mechanisms; routine checks on performance D. Formal planning; decisions made at all levels of management

Which of the following are behavioral practices that affect doing business in China? A. The Chinese appreciate loud, boisterous behavior and when speaking to each other, they maintain a greater physical distance than is typical in the West B. The Chinese are proud of their economic accomplishments and want to share these feelings with outsiders C. The Chinese society is one in which individualism is highly prized D. The Chinese are much more animated than Westerners

Which of the following contribute to conflict's destructive image? A) increased communication B) misperception and bias C) clarifying issues D) minimized differences; magnified similarities E) All of the above contribute to conflict's destructive image.

Which of the following correctly matches a firm's predisposition with its culture? A. Polycentric-home-country B. Geocentric-global C. Regiocentric-host-country D. Ethnocentric-regional

Which of the following correctly matches a firm's predisposition with its strategy? A. Ethnocentric-global integration and national responsiveness B. Polycentric-national responsiveness C. Regiocentric-global integration D. Geocentric-regional integration and national responsiveness

Which of the following countries prefer advertising that is factual and rational? A. India B. China C. Germany D. France

Which of the following describes the "attitude toward authority" in an Eiffel Tower corporate culture? A. Status is achieved by individuals exemplifying creativity and growth B. Status is achieved by project group members who contribute to a targeted goal C. Status is ascribed to superior roles that are distant yet powerful D. Status is ascribed to parent figures that are close and powerful

Which of the following describes the "relationships between employees" in a family corporate culture? A. Diffuse relationships to organic whole to which one is bonded B. Specific role in mechanical system of required interaction C. Specific tasks in cybernetic system targeted on shared objectives D. Diffuse, spontaneous relationships growing out of shared creative process

Which of the following describes the "ways of thinking and learning" in a guided missile culture? A. Process oriented, creative, ad hoc, inspirational B. Problem centered, professional, practical, cross-disciplinary C. Logical, analytical, vertical and rationally efficient D. Intuitive, holistic, lateral and error-correcting

Which of the following does not pertain to similarities in managerial activities in the United States and Korea? A. As organizational size increased, commitment proportionally increased B. As structure became more employee-focused, commitment increased C. The more positive the perceptions of organizational climate, the greater the employee commitment D. As in the U.S. studies, Korean employees' position in the hierarchy, tenure in their current position and age all related to organizational commitment

Which of the following factors encourages the use of centralized decision-making? A. Small company size B. Small capital investment C. Relatively low importance to the MNC D. Highly competitive environment

Which of the following is a traditional behavior of Chinese business people? A. The Chinese never use intermediaries for negotiating business deals B. If the Chinese give concessions, they do not expect anything in return C. The Chinese are quick in formulating a plan of action D. The Chinese place values and principles above money and expediency

Which of the following is an accurate values profile of successful Japanese managers? A. Highly pragmatic, highly individualistic and strong achievement and competence orientation B. Highly pragmatic, strong emphasis on size and growth and high value on competence and achievement C. Highly pragmatic high achievement and competence orientation, an emphasis on profit maximization, organizational efficiency and high productivity D. High moral orientation, high humanistic orientation and low value on achievement, success, competition and risk

Which of the following is an accurate values profile of successful U.S. managers? A. High moral orientation, highly individualistic and a strong focus on organization compliance and competence B. Highly pragmatic, highly individualistic and strong achievement and competence orientation C. Highly pragmatic, high achievement and competence orientation, an emphasis on profit maximization, organizational efficiency and high productivity D. Highly pragmatic, strong emphasis on size and growth and high value on competence and achievement

Which of the following is an example of a multicultural group? A. A group of male German bankers are forecasting the economic outlook for a foreign investment B. A group of Japanese retailers and a British attorney are looking into the benefits and shortcomings of setting up operations in Bermuda C. A group of four Mexicans and four Canadians have formed a team to investigate the possibility of investing in Russia D. A group of three Americans, three Germans, three Uruguayan and three Chinese managers are looking into mining operations in Chile

Which of the following is likely to be the strategic predisposition of a company that has a 'top-down' system of governance? A. Regiocentric B. Globalcentric C. Ethnocentric D. Geocentric

Which of the following is not a form of direct control? A. Visits by top executives to overseas affiliates or subsidiaries B. The staffing practices of MNCs C. The organizational structure of MNCs D. The use of financial ratios that provide insights into the unit's financial health

Which of the following is not a quality needed to be a servant leader? A. Listening B. Empathy C. Entrepreneurship D. Conceptualization

Which of the following is not an advantage of virtual teams? A. They can reduce problems associated with personality conflicts B. They can keep a project moving around the clock C. They provide a competitive advantage D. They force managers to rely on subjective data when assessing team members' work

Which of the following is not an intangible factor in a negotiation? A) the need to look good B) final agreed price on a contract C) the desire to book more business D) fear of setting a precedent E) All of the above are intangible factors

Which of the following leaders clarifies what needs to be done and provides both psychic and material rewards to those who comply with his/her directives? A. Contingent reward leader B. Active management-by-exception leader C. Passive management-by-exception leader D. Laissez-faire leader

Which of the following leaders has explored how the individual ability of an executive works to inspire and motivate his/her subordinates? A. Formational B. Charismatic C. Transactional D. Negotiable

Which of the following leaders takes action or intervenes in situations only when standards are not met? A. Passive management-by-exception leader B. Laissez-faire leader C. Contingent reward leader D. Active management-by-exception leader

Which of the following leadership styles uses both a work-centered and people-centered approach? A. Participative B. Paternalistic C. Autocratic D. Authoritarian

Which of the following needs is correctly matched with its description? A. Physiological needs-the need to interact and affiliate with others and the need to feel wanted by others B. Safety needs-the desire for security, stability and the absence of pain C. Esteem needs-the need for food, clothing, shelter and other basic, physical needs D. Self-actualization needs-the need for power and status

Which of the following questions should not be asked as part of the requirements for building a relationship in the connect model? A) Can we agree to have a constructive conversation? B) Can our conversation be productive enough to make a difference? C) Can we restructure the agreement to include the original issue? D) Can we all commit to making improvements? E) Can we understand and appreciate each other's perspective?

Which of the following selections accurately reflects compensation practices in China? A. Use technical training as reward; recognize egalitarian values; and use "more work more pay" with caution B. Consider all aspects of labor costs C. Note high labor costs for manufacturing D. Use recognition and praise as motivator; avoid pay for performance

Which of the following selections accurately reflects labor relations in China? A. Treat unions as partners; allow time for negotiations B. Tap large pool of labor cities; lax labor laws may become more stringent C. Understand changing Mexican labor law; prepare for increasing unionization of labor D. Be prepared for high wages and short work week; expect high productivity from unionized workers

Which of the following selections accurately reflects labor relations in Germany? A. Treat unions as partners; allow time for negotiations B. Tap large pool of labor cities; lax labor laws may become more stringent C. Be prepared for high wages and short work week; expect high productivity from unionized workers D. Understand changing Mexican labor law; prepare for increasing unionization of labor

Which of the following selections accurately reflects recruitment and selection processes in Japan? A. Recent public policy shifts encourage use of sophisticated selection procedures B. Use of expatriates sparingly; recruit home country nationals at U.S. colleges C. Obtain skilled labor from government subsidized apprenticeship program D. Prepare for a long process; ensure that your firm is "here to stay"; and develop trusting relationship with recruits

Which of the following selections accurately reflects recruitment and selection processes in Mexico? A. Recent public policy shifts encourage use of sophisticated selection procedures B. Use of expatriates sparingly; recruit home country nationals at U.S. colleges C. Obtain skilled labor from government subsidized apprenticeship program D. Prepare for a long process; ensure that your firm is "here to stay"; and develop trusting relationship with recruits

Which of the following sets of characteristics is typical of French negotiators? A. Look for a meeting of people, social competence is very important, persuasion through emotional appeal is employed B. Trust is developed on the basis of frequent and warm interpersonal contact and transaction C. A contract is viewed as a long-lasting relationship, socialization always precedes negotiations, which are characterized by an exchange of grand ideas and general principles, social competence is very important D. Look for a meeting of minds, intellectual competence is very important and a contract is viewed as a well-reasoned transaction

Which of the following shows the identity dimension of corporate culture? A. To put the demands of the job before the needs of the individual B. To put the needs of the individual before the needs of the job C. To identify with and uphold the expectations of the employing organizations D. To strive for accuracy and attention to detail

Which of the following statements about conflict is true? A) Conflict is the result of tangible factors. B) Conflict can occur when two parties are working toward the same goal and generally want the same outcome. C) Conflict only occurs when both parties want a very different settlement. D) Conflict has a minimal effect on interdependent relationships. E) All of the above statements about conflict are true

Which of the following would be associated with the dimension of pragmatic conduct? A. To put the expertise and standards of the employing organization first B. To put the demands and expectations of the customers first C. To comply with clear and definite systems D. To pursue clear aims and objectives

Which of the following would be considered a typical U.S. cultural value? A. Competition leads to imbalances and disharmony B. Withholding information to gain or maintain power is acceptable C. Competition stimulates high performance D. Symbols and the process are more important than the end points

Which perspective can be used to understand different aspects of negotiation? A) economics B) psychology C) anthropology D) law E) All of the above perspectives can be used to understand different aspects of negotiation.

Which researcher concluded that "the Herzberg model appears to have validity across occupational levels"? A. David McClelland B. George Hines C. Maslow D. Hofstede

Which type of leadership is popular in many technologically advanced countries? A. Paternalistic B. Authoritarian C. Autocratic D. Participative

William Ouchi's theory of leadership, which combines Japanese and U.S. assumptions and approaches to leader behavior is referred to as: A. Theory X B. Theory Z C. Participative leadership D. Paternalistic leadership

Work-motivation in terms of what arouses, energizes or initiates employee behavior are explained by: A. Extrinsic theories B. Content theories C. Intrinsic theories D. Process theories

Work-motivation theories can be broken down into two general categories which are: A. Method and outcome B. Internal and external C. Implicit and explicit D. Content and process

_____ are basic convictions that people have regarding what is right and wrong, good and bad, important or unimportant. A. Tenets B. Edicts C. Norms D. Values

_____ can be a difficult problem for many international managers, who often come from advanced economies and believe that their state-of-the-art knowledge is more than adequate to handle the challenges of doing business in less developed countries. A. Nationalism B. Ethnocentrism C. Parochialism D. Symbolism

_____ consists of a job's content, the methods that are used on the job and the way in which the job relates to others in the organization. A. Job design B. Task portfolio C. Job composition D. Job structure

_____ culture is a project-oriented culture. A. Family B. Eiffel Tower C. Guided missile D. Incubator

_____ culture is characterized by a strong emphasis on equality in the workplace and orientation to the task. A. Guided missile B. Family C. Incubator D. Eiffel Tower

_____ culture is characterized by a strong emphasis on the hierarchy and orientation to the person. A. Family B. Eiffel Tower C. Incubator D. Guided missile

_____ culture is characterized by a strong emphasis on the hierarchy and orientation to the task. A. Incubator B. Family C. Guided missile D. Eiffel Tower

_____ cultures often create environments where participants thrive in an intense, emotional commitment to the nature of the work. A. Eiffel Tower B. Family C. Guided missile D. Incubator

_____ designs are job designs that blend personnel and technology. A. Sociotechnical B. Sociocultural C. Socioengineering D. Sociohostilic

_____ is "the extent to which less powerful members of institutions and organizations power is distributed unequally". A. Uncertainty avoidance B. Individualism versus collectivism C. Tolerance versus intolerance D. Power distance

_____ is "the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these". A. Power distance B. Uncertainty avoidance C. Individualism versus collectivism D. Masculinity versus femininity

_____ is a pattern of basic assumptions that are developed by a group as it learns to cope with problems of external adaptation and internal integration and that are taught to new members as the correct way to perceive, think and feel in relation to these problems. A. Organizational culture B. Organizational learning C. Organizational change D. Organizational structure

_____ is a psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives. A. Ability B. Inducement C. Assurance D. Motivation

_____ is acquired knowledge that people use to interpret, experience and generate social behavior. A. Edification B. Culture C. Symbol D. Cognition

_____ is the belief that circumstances dictate how ideas and practices should be applied. A. Universalism B. Individualism C. Communitarianism D. Particularism

_____ is the belief that ideas and practices can be applied everywhere in the world without modification. A. Particularism B. Universalism C. Communitarianism D. Individualism

_____ is the tendency to view the world through one's own eyes and perspectives. A. Parochialism B. Symbolism C. Nationalism D. Simplification

_____ leaders typically encourage their people to play an active role in assuming control of their work and authority commonly is highly decentralized. A. Paternalistic B. Autocratic C. Authoritarian D. Participative

_____ like exclusive arrangements and often negotiate with just one firm at a time. A. Americans B. Russians C. The British D. Canadians

_____ theory holds that individuals can have a need to get ahead, to attain success and to reach objectives. A. Achievement motivation B. Two-factor C. Hierarchy of needs D. Quality of life

IBC201 Final

Related study sets

Chapter 3

US History Chapter 5 Test Prep

Chapter 8 study guide

Prieto WH: Chapter 14

Immune

Chapter 8 - Socioemotional Development in Early Childhood

Freshman 15-30 Vocabulary Words

FUNDIES 2 EXAM 2 PRACTICE QUESTIONS

Astronomy

Intro to Professional Nursing- Chapter 2

MGMT 425 Ch 2 Quiz

Physics Midterm #3: Modules 7-9

Inquizitive 7

Radiology chapter 38,39,40,41,42

Programming Fundamentals

Client/Server Programming - Week 13

Chapter 9: Violence and Abuse

Chapter 23-24

CSCI BRCC'S final exam

Marketing and Consumer Mountain Exam 2