International Management Final Exam

Firms frequently use groups​ because, in​ theory, people working together as a group can accomplish more than they can working individually. It is important to understand group dynamics especially in​ multi-cultural settings. Of the​ following, which is NOT a characteristic of a mature​ team?

team members share a common background and skill set

You want to expand your dessert business by selling your trademark chocolates to other countries in the European Union. A French department store cancels a large order stating that the butter fat content of your truffles is too low according to established French standards. The department store cannot refuse to sell your product for that reason because of​ ________.

the concept of mutual recognition

As the head of an individual​ firm, what feature would be the LEAST beneficial should your country become a member of a regional economic​ bloc?

the effect of economic integration on specific sectors within the national economy

Differences in distribution practices also affect​ __________________

the final price the end customer pays

Two conditions must be met if a firm is to successfully practice market pricing. Of the​ following, which describes one of those​ conditions?

the firm must face different demand or cost conditions in the countries in which it sells its products

Of the​ following, which represents the most common organization design for a​ company's rapidly expanding international​ business?

the firm would form an international division

Which of the following is FALSE regarding the fourth P of the international marketing​ mix, known as​ place, when applied to an international​ firm?

the transportation mode chosen does not involve a trade-off between time and money

Marvel Comics attempted to introduce the​ "new" Spider-Man in India. They changed his​ alter-ego's name to Pavitr​ Prabhakar, gave him his powers from a yogi instead of a​ spider, and changed his costume to a loincloth. Why did they do​ this?

to increase sales

Because productivity can be low when moving facilities to areas where traditionally​ low-cost labor can​ found, a critical element for an international business that wants to take full advantage of locating production abroad is​ _______________________.

training

You are working in a foreign branch of a large corporation and need to gain some insights into different strategies based on local practices. Which of the following strategies would be best for this​ practice?

transnational strategy

Successful firms continually monitor major markets to exploit opportunities as they become available especially in those markets​ ______________________.

undergoing technological or regulatory changes

Which of the following countries uses the International Trade Administration​ (ITA) to investigate complaints of unfair trade​ practices?

united states

The U.S. and Canada are friendly trade nations that do not want to damage their relations. They both import and export each​ other's products in large volume and recognize that the potential for problems exists. What could they put in place to help with​ this?

voluntary export restraint

Which of the following BEST describes the difference between a multinational corporation and a multinational​ organization?

A multinational organization is an organization that has involvement in multiple countries and may be​ for-profit or​ not-for-profit; a multinational corporation is a​ for-profit organization that has involvement in multiple countries.

Which of the following statements is TRUE of a common​ market?

It establishes external trade policies toward​ nonmembers, eliminates internal trade​ barriers, and eliminates the controls on the free movement of​ labor, capital, and technology internal trade barriers among members.

The firms in which country pioneered​ just-in-time inventory management​ techniques?

Japan

Which is NOT one of the elements of the model developed by Pankaj​ Ghemawat, of IESE Business School in​ Barcelona, as a useful framework for understanding the operating challenges facing international businesses because of national​ differences?

Labor Distance

Melanie works in the United States selling computer hardware to a company in Germany. This is known as which of the​ following?

Merchandise Export

Which of these major trading blocs has the strictest policy concerning rules of origin on manufactured​ goods?

North American Free Trade Agreement (NAFTA)

When using an ethnocentric staffing​ model, you would primarily use​ ________ to staff​ higher-level foreign positions.

PCNs

A functional arrangement in which the partners agree to undertake joint research to develop new products or services is known as a​ (n) ________.

R&D alliance

Which of the following describes an acceptable exemption to the most favored nation​ (MFN) principle?

The United States lowers tariffs on electronic parts manufactured in Mexico and Canada to increase trade among NAFTA members

What factor could account for Canada and the United States having modest economic​ gains, while​ Mexico's gains have been​ dramatic?

The previous bilateral trading relationship between Canada and the United States.

In 1930 the United States raised tariffs on imported goods in an effort to protect domestic industries. Which of the following was NOT a result of this economic​ policy?

a competitive trading environment benefiting efficient producers

While the benefits for European business in creating a common market are​ substantial, the European Union still faces many future challenges as illustrated by the demise of the constitution drafted at the 2002 European Convention. Which of the following best summarizes the MOST fundamental challenge of the​ EU's future success and​ effectiveness?

a governance structure that is adequate for effective decision making within the growing EU membership

Advantages such as synergy and competitive advantage combine with other advantages to make strategic alliances successful. The primary idea is that these advantages enable the collaborating firms to​ _____________.

achieve more and to compete more effectively than if they attempted to enter a new market or industry alone

An international corporation is in favor of a level playing field in foreign trade policy. Which of the following would be a​ preference?

advocating for limited foreign competition

Raja has a great ability to get along well with others. He is​ gentle, cooperative,​ understanding, and​ good-natured in his dealings with others. Which personality trait is Raja​ exhibiting?

agreeableness

The sale of goods by a firm in one country to an affiliated firm in another country is known as​ ________.

an intra-corporate transfer

You work in a large agricultural firm that ships grain overseas to foreign markets. They take the grain and make quality baked goods that they send back to you for sale in lieu of payment. Which type of system is​ this?

buy-back

Tanya is a manager that is known as someone who has the ability to inspire and motivate those she supervises. Which of the following leadership behaviors is she​ exhibiting?

charismatic/value-based leadership

All of the following are common situational factors that affect appropriate leadership behavior EXCEPT​ ________.

compensation

Which of the following is important because it can help lower marketing costs and create a unified marketing​ effort?

coordination

Which of the following is a form of differential compensation allowance paid to expatriate managers to offset expenses in their assigned​ country?

cost-of-living adjustment

Which method of trade payment occurs when a firm accepts something other than money for goods or​ services?

countertrade

Which of the following is an ad valorem tariff on an imported good that is imposed by the importing country to counter the impact of foreign​ subsidies?

coutervailing duty (CVD)

Which of the following is NOT considered an advantage of franchising for the​ franchisor?

creates dependence on the franchisee

Which of the following help shape a​ firm's scope of​ internationalization, level of​ centralization, and staffing​ philosophy?

determine the skills and abilities its international managers need

A core competency is​ a(n) ________.

distinctive strength or advantage that is central to a firms operations

When host country customers prefer to deal with a local​ factory, which form of foreign market entry is​ preferred?

either acquisition or greenfield strategy

A country whose recent growth or prospects for future growth exceed that of traditional markets is known as which of the​ following?

emerging market

You are an operations manager looking for some new ways to improve productivity. You have improved operations and spent more money on research and development of new products. Which area should you look at​ next?

employee involvement

Which of the following is FALSE about the German business​ structure?

established operating procedures are often ignored

A manager in a company met with his senior leaders about sales. They had to decide between a takeover and some other creative action to increase their sales base and weighted the pros and cons of each. Which step in the process was​ this?

evaluating alternatives

Which of the following terms describes a policy for national governments that actively intervene to ensure that domestic​ firms' exports receive an equitable share of foreign​ markets?

fair trade

A marketing strategy that involves marketing managers concentrating their efforts on particular segments of the consumer market or on particular areas or regions within a market is referred to as​ ________.

focus strategy

Which of the following is a type of international investment that involves the purchase of foreign financial assets for a purpose other than​ control

foreign portfolio investment

Which of the following would represent an advantage in​ tariffs?

foreign trade zone

Tesco is an international firm that has branches in five different foreign markets. They use the same strategies in each market and do not vary from one market to the next.​ Decision-making power and policy construction are all done at the​ firm's headquarters. Which of the following types of control is in​ effect?

generic organizational control

Which of the following organization designs organizes the​ firm's activities around specific areas or regions of the​ world?

global area design

The ability to meet the specific needs of each customer segment and track how well the​ firm's products or services are doing among those segments is known as which of the​ following?

global customer approach

Which organizational design is useful when the various customer groups targeted by a firm are so diverse as to require totally distinct marketing​ approaches?

global customer design

​Need-based models of motivation are likely to vary across cultures. Which of the following cultures would be less likely to work toward a reward of personal satisfaction and more likely to be motivated by​ money?

goal behavior

Damien believes he is a worthwhile and deserving individual. Damien seeks higher job​ status, is confident in his ability to achieve higher levels of​ performance, and derives greater intrinsic satisfaction from his accomplishments. Damien is displaying which of the following personality​ attributes?

high self-esteem

You are managing a new plant in a foreign country and have a mixture of workers from three different cultures you must place into teams. The work you will have to do will be​ complex, and have some ambiguity based on your knowledge. Which of the following teams would make the most​ sense?

homogenous

You are interested in improving employee productivity in your corporation. You want to ensure that the organization is well trained and motivated. Which of the following strategies are you focusing​ on?

human resources

Which of the following is a disadvantage of implementing standardized international​ marketing?

ignores local legal differences

International trade and investment declined throughout the 1930s as a result of​ _______________

increased tariffs and quotas

What should a firm consider in order to determine the level of competition in a foreign​ market?

individual and collective strengths and weaknesses of all firms competing in the target market

Barbara believes if she works hard she will succeed. She believes her behavior has a real effect upon what happens to her. Barbara exhibits which of the following personality​ traits?

internal locus of control

When​ Denzel's firm authorizes a firm in a second country to use its​ patents, the firm is engaging in​ ________________________.

international licensing

​Jamal's company sells the rights to use its logo to a foreign company. This is an example of which of the​ following?

international licensing

Which of the following describes a primary difference between international licensing and international​ franchising?

international licensing involves only intellectual property such as patents, trademarks, brand names, and copyrights; international franchising involves operating systems as well.

In the United​ Kingdom, service exports and imports such as​ banking, travel, and accounting activities are known as​ ________ trade.

invisible

Which of the following does proper organization design NOT​ accomplish?

it creates a permanent organizational structure that should never be altered

Of the​ following, which is NOT a key reason a strategic alliance may​ fail?

lack of investment commitments

The​ informational, political, and cultural disadvantages that foreign firms face when trying to compete against local firms in the host country market is referred to as​ ________.

liability of foreignness

Which area of international operations management is concerned with modes of transportation and methods of inventory​ control?

logistics

Which of the following is an agreement whereby one firm provides managerial​ assistance, technical​ expertise, or specialized services to a second firm for some​ agreed-upon time in return for monetary​ compensation?

management contract

Which of the following BEST describes the difference between merchandise import and service​ import?

merchandise import involves purchasing tangible items, service import involves purchasing intangible items

As the financial officer for an international​ firm, you need to keep a certain balance on foreign currency. You see that the yen is expected to rise again in the future as more plants resume​ production, so you keep a larger supply of the yen on hand than you normally would in anticipation of this. What strategy are you​ using?

minimizing foreign exchange risk

A major international corporation has steadily bought up all of a certain resource so they control it. Because they have done​ this, they are the only corporation manufacturing and marketing the finished product. Which of the following is​ occurring?

monopoly profit

MNCs commonly use which method of transfer​ pricing?

non-market transfer pricing

Which of the following industries uses the U.S. dollar as its main currency for​ transactions?

oil

You are trying to produce a solid budget for the next five years and are worried about some new projects that are just starting. You want to calculate how long it will take to break even from these projects. What are you looking​ at?

payback period

Which of the following is the second step in international strategy​ formulation?

performing a SWOT analysis

Which of the following is FALSE regarding public​ relations?

public relations touts the specific advantages of an individual product or service

​_______________________ may be imposed by a country to trade in the form of numerical limits on the amount of a good it will export

quantitative barriers

Which of the following is NOT an issue that is more complicated when the transaction involves a buyer and a seller from two different​ countries?

reaching agreement on price, quantity, and delivery date

Singapore uses a tiered tax system based on engine​ displacement, which hurts the sales of large motorcycles.​ Taiwan's transportation ministry has been slow to issue regulations that would allow motorcycles with engines larger than 500cc to travel on its highways throughout the​ day, while Thailand has an outright ban of motorcycles on its highways. This is an example of what type of​ non-quantitative NTB?

regulatory controls

You own a series of upscale boutiques that sells​ make-up and hair products. You have just expanded to include body lotions and foot creams. Which of the following concepts is in​ effect?

related diversification

​Non-joint venture strategic alliances are​ __________________ because of their narrow mission and lack of a formal organizational structure

relatively less stable than joint ventures

Which of the four basic components of strategy development needs to answer the question​ "Where are we going to conduct​ business?"

scope of operations

Your firm makes complicated copy machinery that customers normally have to be trained to use effectively. In response to​ this, you offer consultation and training to help them learn the different features. Which service characteristic are you taking care​ of?

services are tied to the purchase of other products

Which type of arrangement requires a high level of coordination and​ near-perfect agreement between the participating​ partners?

shared management agreement

Which of the following is NOT one of the potential disadvantages of strategic​ alliances?

shared risk

Which of the following terms is used to describe the major objectives the firm wants to​ accomplish?

strategic goals

You are working on expanding your corporation and need to set up the framework for achieving the goals. Which of the following would you work​ on?

strategic planning

Your firm pays a large amount in taxes in some of the foreign countries you deal with. You decided to do something about this by opening a small subsidiary in the Cayman Islands and using it to conduct monetary transactions. What would the Cayman Islands be used as in this​ case?

tax haven