IBUS 1

11. Which aspect of the negotiation process should most likely occur on a continuous basis? a. Persuasion b. Exchanging task related information c. Preparation d. Concessions and agreements e. Relationship building

e. Relationship building

32. Which of the following is not a possible difference in accounting practices in foreign countries? a. Use of accounting reserves b. Valuation and revaluation of assets c. Valuation of inventories d. Dealing with the tax authorities e. all are possible difference in accounting practices

e. all are possible difference in accounting practices

39. A(n) ______ is a systematic collection of data about all elements of the firm's external and internal environments. a. Environment scan b. Strategic analysis c. Strategic formulation d. Situation analysis e. Mission statement

a. Environment scan

41. Which business strategy calls for a firm to target specific types of products for certain customer groups or regions? a. Focus strategy b. Single-business strategy c. Related diversification strategy d. Cost leadership strategy e. Differentiation strategy

a. Focus strategy

4. People in _______ cultures expect other to understand unarticulated moods, subtle gestures and environmental clues that people from _______ cultures simply do not process. a. High-context; low-context b. Low-contact; high-contract c. Low-context; high-context d. Monochromic; polychromic e. High power distance; low power distance

a. High-context; low-context

12. Which of the following approaches to conflict handles a situation directly and explicitly and draws a distinction between the people involved and the information or opinion they represent? a. Instrumental orientated b. Expressive orientated c. Objective orientated d. Subjective orientated e. Political orientated

a. Instrumental orientated

36. Parker Sportswear is an MNE with retail stores around the world. Parker views itself as a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market. Parker most likely uses a ______ strategy. a. Multi-domestic b. Home replication c. Transnational d. Global e. Cost leadership

a. Multi-domestic

9. The different stages of the negotiation process are: a. Preparation, relationship building, exchange of task-related information, persuasion, concessions & agreement b. Preparation, relationship building, proposal, circulation, approval c. Relationship building, proposal, exchange of task-related information, persuasion d. Proposal, circulation, persuasion, approval, record e. Proposal, agreement, contract, celebration

a. Preparation, relationship building, exchange of task-related information, persuasion, concessions & agreement

28. When the Venezuelan government requires that Spanish oil company Total SA maintain all profits from its local operations in Venezuelan banks for one full year before they can be sent home to the parent company, this is an example of what kind of law directed at a foreign firm? a. Repatriation b. Expropriation c. Constraints on foreign ownership d. Privatization e. Nationalization

a. Repatriation

8. _______ is the unconscious use the one's own culture to help assess new cultures and surroundings. a. Self-reference criterion b. Cultural illiteracy c. Cross-cultural literacy d. Individualism e. Acculturation

a. Self-reference criterion

29. A possible negative effect of MNCs on the local economy includes ______ as a result of competition with local firms a. The loss of jobs in local companies b. Lower prices c. Increased selection d. Quality of products e. None of the above

a. The loss of jobs in local companies

20. What are the three elements of the Triple Bottom Line framework for defining corporate social responsibility? a. Economic mission, sustainability and the natural environment, general social welfare b. Customer, employees, stakeholders c. Investors, local government, employees d. Defensive, accommodative, proactive e. Public relations, profitability, legal compliance

a. economic mission, sustainability and the natural environment, general social welfare

45. When Samsung produces LCD screen in its factories in Korea, then ships them to its joint venture plant in Vietnam for assembly into phones and computer monitors for eventful export globally, ________ has a. Indirect exporting of Samsung's LCD screens b. An intracorporate transfer of Samsung's LCD screens c. A semi-corporate transfer of Samsung LCD screens d. Licensing of Samsung's LCD screens e. Direct exporting of Samsung's LCD screens

b. An intracorporate transfer of Samsung's LCD screens

2. Which of the following statements regarding the characteristics of culture is false? a. Culture is learned b. Culture is not affected/changed by external forces c. Cultural traits are interrelated in all aspects of a society d. Cultural traits are shared and define membership in a society e. All of the above statements are true

b. Culture is not affected/changed by external forces

34. JBX Automobile, a global firm, builds factories to serve more than one country and lower their production costs. JBX Automobile most likely benefits from ______. a. Multinational flexibility b. Economic of scale c. Location efficiencies d. Economies of scope e. Worldwide learning

b. Economic of scale

26. Until recently, the U.S. prohibited all trade and investment with Cuba. This was an example of a(n) _____. a. Boycott b. Embargo c. Comprehensive tariff d. Preferential tariff e. Sanction

b. Embargo

35. Mercedes-Benz relies on its brand name and reputation for well-energized, luxurious cars to succeed in foreign markets. Mercedes-Benz is most likely using the ______ strategy. a. Multi-domestic b. Home replication c. Transnational d. Global e. Focus

b. Home replication

5. In cultural characterized by _______, people at all levels in a firm accept the decision of those above them because if the implicit belief that higher-level positions carry the right-privilege to make decisions a. Collectivism b. Power respect c. Uncertainty avoidance d. Passive goal behavior e. Long term time orientation

b. Power respect

30. The _______ provides that a country will honor and enforce within its own territory the judgments and decisions of foreign courts with certain limitations a. Helms-Burton Act b. Principle of comity c. Arbitration agreement d. Principle of fairness e. Act of forum shopping

b. Principle of comity

48. Bechtel, a construction and engineering firm, has a contract with the Indian government to expand the airport in New Delhi. Bechtel will design, construct and equip the airport before turning the facility over the Indian government upon completion. Which entry mode for international business is used by Bechtel? a. B-O-T project b. Turnkey project c. Contract manufacturing d. Foreign direct investment e. Management contract

b. Turnkey project

10. During a Joint Venture negotiation with a Chinese company, an American manager makes a proposal on financing the venture. The Chinese counterpart nods his head and replies with a verbal "yes". The meaning of this reply is probably: a. Yes, I agree b. Yes, I understand c. No d. Tomorrow e. None of the above

b. Yes, I understand

22. Logix manufacturing is a U.S. firm with a factory in Mexico City. Local leaders in Mexico City ask Logix managers to make contributions to a youth sport organization and Logix provides the league with new equipment and uniforms. Which stance towards social responsibility does Logix most likely have? a. Proactive b. Obstructionist c. Accommodative d. Defensive e. Partnership

c. Accommodative

17. Which term refers to an individual's personal beliefs about whether a decision, behavior, or action is right or wrong? a. Values b. Culture c. Ethics d. Norms e. None of the above

c. Ethics

50. Compared to a Greenfield entry strategy, an acquisition entry strategy has which of the following advantages: a. Building of sites and facilities to meet exact needs b. Less up-front costs c. Faster market entry d. All of the above are advantages of an acquisition strategy over a greenfield strategy e. A and b only

c. Faster market entry

14. Which of the following is not a step on the decision-making process? a. Define the problem b. Gather and analyze relevant data c. Focus on solutions that have proven successful in the past d. Decide on the best solution e. All of the above are steps in the decision-making process

c. Focus on solutions that have proven successful in the past

3. Social structure a. Is the means by which a society's membership communicate with each other b. Shapes the attitudes its adherents have toward work, consumption, individual reasonability, and planning for the future c. Is the overall framework that determines the roles of individuals within a society, the stratification of the society of the society and the individuals' mobility within the society d. Shapes the behavior of and opportunities available to MNCs operating in a given culture e. Stems from deep-seated beliefs about the individual's position in relation to his or her deity, the family, and social hierarchy

c. Is the overall framework that determines the roles of individuals within a society, the stratification of the society of the society and the individuals' mobility within the society

46. The Nintendo Company manufactures electronic video console and game cartridges. Nintendo consoles function. The game design firms create the game and then pay Nintendo a fee to manufacture those games. What mode of entry is described in this example? a. Exporting b. Franchising c. Licensing d. Joint venture e. None of the above

c. Licensing

33. Garmin Footwear of the U.S. establishes facilities anywhere in the world that yields the lowest production or distribution cost. Garmin most likely benefits from _____. a. Multinational flexibility b. Economic of scale c. Location efficiencies d. Economies of scope e. Worldwide learning

c. Location efficiencies

31. The current civil war in Syria is an example of: a. Ordinary political risk b. Micro political risk c. Macro political risk d. Inclusive political risk e. Exclusive political risk

c. Macro political risk

43. Gameware recently entered the German market. Gameware executives also wanted to enter the Canadian market but had to delay because of limited resources. What type of costs will Gameware incur as a result of being unable to enter the Canadian market? a. Indirect costs b. Direct costs c. Opportunity costs d. Variable costs e. Future costs

c. Opportunity costs

16. In considering the style of negotiators, research has shown that a(n) ________ approach is essential to successful cross-cultural negotiations. a. Short term b. Inflexible c. Problem-solving d. Adversarial e. None of the above

c. Problem-solving

40. A(n) __________ calls for the firm to operate in several different nut fundamentally related businesses, industries, or markets at the same time a. Corporate strategy b. Single-business strategy c. Related diversification strategy d. Unrelated diversification strategy e. None of the above

c. Related diversification strategy

7. What kind of people place a high premium on material possessions, money, and assertiveness? a. Those who are at high levels of the social hierarchy b. Those who are high in individualism c. Those who are high in aggressive goal (masculine) behavior d. Those who are high in time orientation e. Those who are high in power tolerance

c. Those who are high in aggressive goal (masculine) behavior

37. Firms with highly centralized control, and who conduct business in the same way everywhere in the world will utilize which strategic alternatives? a. Global b. Home replication c. Multi-domestic d. A or b only e. None of the above

d. A or b only

19. Which of the following is an area of organizational ethics that a manager should consider when evaluating his/her organization? a. How employee treat the organization b. How the organization treats its employees c. How the employee and organizations treat other economic agents d. All of the above e. A and b only

d. All of the above

42. Which of the following factors is commonly considered when assessing alternative foreign markets? a. Current and future size of market b. Legal and political environment in the market c. Competitive levels in the morning d. All of the above e. A and b only

d. All of the above

23. Which of the are the subject to the 1977 Foreign Corrupt Practices Act? a. U.S. Citizens work working for a private foreign company outside the U.S. b. Foreign companies with securities listed with a U.S. stock exchange c. Private foreign companies whose principal places of business is on the U.S., or in a U.S. territory or commonwealth d. All of the above are subject to the FCPA e. B and c only

d. All of the above are subject to the FCPA

1. Which of the following is not one of the basic elements of culture? a. Social structure b. Language c. Religion d. Architecture e. Values

d. Architecture

25. Walton Enterprise, a U.S. firm, has a facility in Burma. Walton managers in Burma frequently complain about the arbitrary rules and decisions implemented by Burmese government and legal authorities. Such legal unpredictability suggests that Burma has a system based on ______ law. a. Civil b. Common c. Theocratic d. Bureaucratic e. Military

d. Bureaucratic

13. The expressive orientated approach to conflict resolution is associated with what type of culture? a. Low context b. Individual c. Legalistic d. High context e. Western

d. High context

44. Exporting offers all of the following advantages expect: a. Relatively low financial exposure b. Gradual market entry c. Opportunity to gain knowledge about the local market d. Logistical complexities e. Avoidance of restrictions on foreign investments

d. Logistical complexities

18. Which of the following is likely the most important in reinforcing/improving the effectiveness of a published code of ethics for an international company? a. Relevancy to local religions b. Similarity to home country ethics c. Explanation through online training d. Organizational practices that are in line with the published code e. Public punishment for violations of the code

d. Organizational practices that are in line with the published code

49. A greenfield strategy can be beneficial because of all of the following except: a. It allows the firm to select the site that meets its needs b. The firm can construct modern facilities c. The firm starts with a clean slate d. The firm can start operations in the new market immediately e. All of the above are benefits of a greenfield strategy

d. The firm can start operations in the new market immediately

6. Formal rules, detailed procedures, and standards in the workplace would not be attractive to individuals from what type of cultures? a. Aggressive goal behavior b. Power respect c. Uncertainty avoidance d. Uncertainty acceptance e. Individualism

d. Uncertainty acceptance

21. Which of the following are considered primary stakeholders in the corporation stakeholder model? a. Employees b. Competitors c. Investors d. All of the above e. A and c only

e. A and c only

47. International franchising is most likely to succeed when the franchisor has ________. a. A strong global brand/image b. Exported other products c. A transferable success model from its domestic market d. All of the above e. A and c only

e. A and c only

24. Which of the following are not prohibited under the 1977 Foreign Corrupt Practices Act? a. Non-monetary bribes to foreign government officials b. Facilitation payments to government officials c. Bribes to foreign government officials under $1,000 in value d. Bribe to foreign private businesspeople e. B and d only

e. B and d only

15. Which of the following cultural influence on the decision-making process would have the greatest impact on employees from a typically high uncertainty avoidance culture? a. Objective verse subjective approach b. Risk tolerance c. Perceived control over the outcome d. Preferences for known solutions verses trying new things e. Both b and d

e. Both b and d

38. Sony has unique, cutting edge technology, the most efficient distribution network in its industry, and superior organizational practices. These characteristics are most relevant to which component of international strategy? a. Worldwide learning b. Scope of operations c. Resources deployment d. Synergy e. Distinctive competence

e. Distinctive competence

27. The government of Greece has recently agreed to allow a private foreign company to purchase and operate the country's main facilities, which used to be owned and operated by the government. This is an example of: a. Expropriation b. A government's attempt to regulate business activates conducted outside its borders c. Nationalization with no compensation d. Nationalization with compensation e. Privatization

e. Privatization