Management - Exam 2
Which of these are common economic factors considered in PESTLE analysis? (Select all that apply.)
- A country's ability to meet all of its financial obligations - Exchange rates - Interest and inflation rates - Labor costs - Unemployment - Government policies
Which of these are common technological factors considered in PESTLE analysis? (Select all that apply.)
- A foreign market's ability to turn inputs into outputs - Ability to keep up with technology trends - Level of demand for hard copy vs. digital content - Level of technology expertise
Which of the following are reasons to use Hofstede's model with caution? (Select all that apply.)
- All of the original respondents worked for the same company. - Hofstede failed to look at important, within-country differences.
Which of these are cultural dimensions identified by the Globe project? (Select all that apply.)
- Assertiveness - Future Orientation - Gender Differentiation - Uncertainty avoidance - Power distance - Collectivism/ Societal - In-Group Collectivism - Performance Orientation - Humane Orientation
Select words that describe the ethnocentric approach to global human resource management. (Select all that apply.)
- Conservative - Familiar
Which of these are benefits of globalization? (Select all that apply.)
- Creation of jobs in poorer countries - Lower cost of resources for organizations - Streamlined global manufacturing and marketing processes - Economies of scale
Which of these are factors that indicate whether an expatriate will most likely succeed or fail? (Select all that apply.)
- Empathy (Cultural skills) - Motivational state - Language skills - Job factors - Family situation - Adaptability
Select the true statements about repatriation shock. (Select all that apply.)
- Fewer than 25% of companies talk with expats about roles available to them upon their return from the foreign assignment. - Expats may reject their home culture for their host culture when they return home.
Which of these are common political factors considered in PESTLE analysis? (Select all that apply.)
- Governmental policy actions that affect the firm's profitability - Discriminatory laws against foreign firms - Intellectual property or technology theft - Communication barriers - Expropriation - Nationalization - Obstacles to removing profits or equity from other countries - Election cycles bringing about violence and radical change - Government frequently altering corporate policies for foreign firms - Frequent terroristic attacks - Dictatorships versus republics
Which of these are stages of culture shock? (Select all that apply.)
- Honeymoon - Gradual Adjustment - Biculturalism - Irritation and Hostility
Which of these are drawbacks of globalization? (Select all that apply.)
- Increased wealth gap among countries - Increased likelihood of worker abuse - Loss of blue-collar jobs in the US - Decreased tax revenue in the US
Select words/phrases that describe the polycentric approach to global human resource management. (Select all that apply.)
- Less expensive - More intimate knowledge
With an ethnocentric approach to global human resource management, an organization selects managers in such a way that ______ will be minimized.
- Miscommunications
Select all of the statements that accurately describe outsourcing. (Select all that apply.)
- Moves tasks once performed in house to an outside vendor - Shifts organizational focus to core activities that provide competitive advantage - Allows the firm to lower labor costs
Terrorism affects international business by making it less likely that U.S. companies will do business in which of the following locations? (Select all that apply.)
- Pakistan - India - Philippines
Which of these are characteristics of culture? (Select all that apply.)
- Patterned - Adaptive - Transgenerational
Recruiting a manager who currently works for one of your other overseas subsidiaries in a nearby location describes the ______ approach to global human resource management.
- Regiocentric
In a wholly owned subsidiary, the parent company has complete control or ownership over which of the following? (Select all that apply.)
- Strategic planning - Company stock
Which of these are characteristics of culture? (Select all that apply.)
- Symbolic - Shared - Learned
Which of these are common environmental (ecological) factors considered in PESTLE analysis? (Select all that apply.)
- The ecological and geographic factors of the country where a firm is planning to do business - Proximity of manufacturing center to raw material supply - Proximity of manufacturing center to labor supply - Host country's infrastructure - Proximity of manufacturing center to raw material supply - Likelihood of natural disasters
Which of these are common legal and regulatory factors considered in PESTLE analysis? (Select all that apply.)
- The laws and regulations put forth by the home country, host country, and international community - Data protection - Regulatory obligations - Safety standards - Patent protection - Labor laws - Antitrust protection
Which of these are reasons a company may use a joint venture as an international activity? (Select all that apply.)
- To share costs and risks - To better understand the host country's business environment
Which of these are common sociocultural factors considered in PESTLE analysis? (Select all that apply.)
- Values - Beliefs - Attitudes
The Gradual Adjustment stage of culture shock ______. (Select all that apply.)
- brings increasing acceptance of his/her new life as an expat - represents recovery from the Irritation and Hostility stage
The Irritation and Hostility stage of culture shock ______. (Select all that apply.)
- can last up to two years - is characterized by disorientation
Monochronic cultures are characterized by people ______.
- doing only one thing at a time - arriving to meetings on time
One of the purposes of the European Union is to ______.
- eliminate tariffs among member countries - Ratify a single currency across the region
A company may choose to offshore in order to ______. (Select all that apply.)
- escape overregulation in the home country - decrease labor costs
Terrorism has affected international business by ______. (Select all that apply.)
- fueling a multi-billion dollar industry - raising human risk and safety concerns
Offshoring can best be described as ______.
- moving a part of your business operations to another country while still controlling this aspect of operations - a specific form of outsourcing that sends work to other countries
The three major players in the international environment are ______. (Select all that apply.)
- multinational enterprises - nongovernmental organizations - multinational corporations
Polychronic cultures are characterized by people ______.
- participating in multiple activities at the same time - multitasking - focusing primarily on building relationships
The GLOBE project sought to ______ Hofstede's work. (Select all that apply.)
- re-evaluate - possibly replace
______ can be described as a method of distributing your firm's products in another country.
Franchising
______ involves increasing integration of various systems in your organization across geographic regions, while ______ involves taking your business across national borders for the first time.
Globalization; internationalization
Outsourcing
Hiring an outside vendor to do something your firm once did in house, in order to lower your firm's labor costs
Parochialism
Ignorance of another culture's way of doing things, combined with a lack of interest in learning what those different ways might be - rooted in ignorance
Companies wishing to gain their resources from or send their final products to other companies in foreign markets will likely engage in which set of international activities?
Importing and exporting
The tendency for people to look after themselves and their immediate family is known as ______.
Individualism
Which of these lists represents the drivers of globalization?
International trade pacts and technology
Franchising
Licensing your firm's intellectual property, operational systems, and trademarks to another company for a fee while still maintaining ownership of these things
Which of these phrases best describes a drawback of the regiocentric approach to global human resource management?
Misperception
Offshoring
Moving a part of your business operations to another country while still controlling this aspect of firm operations
Symbolic
Represented by monuments, flags, and statues that illustrate its importance
Patterned
Seemingly complex, but easily understood by those who reside within it
Exporting
Selling products in a foreign country, which were produced in the home country
Which statement best describes nongovernmental organizations?
They function independently of a government and aim to serve the world's population.
Uncertainty avoidance
Tolerance for ambiguity and risk
Joint venture
Two distinct organizations sharing ownership of and responsibility for a new business entity
Shared Culture
Understood at the group, rather than the individual, level
Which of the following best describes the international activity of outsourcing?
Using outside vendors for jobs that were previously done inside the organization, in order to focus on core activities that provide competitive advantage
The GLOBE project extended Hofstede's work by creating a more inclusive set of ______.
Values
A franchisee stands to gain ______ from the franchisor.
a percentage of company sales
Uncertainty avoidance is defined as a culture's ______.
comfort level with risk and ambiguous situations
Multinational corporations are defined as ______.
companies that build facilities and sell products in a number of different countries
Multinational enterprises are defined as ______.
companies that sell their services in a number of different countries
An organization setting up company facilities in a foreign country for the first time is engaging in ______, while an organization trying to integrate systems across different geographic regions is engaging in ______.
internationalization; globalization
Nonprofit organizations that function independently of any government and serve the world's population are known as ______.
nongovernmental organizations
The collapse of the Communist party and the breakup of the USSR affected international business by ______ western corporations.
opening much of central Europe to business opportunities with
Forming a wholly owned subsidiary as an international activity involves ______.
ownership of an entire foreign company that may operate independently, but whose stock, strategic planning, and direction are under your control
Stock ownership in a wholly owned subsidiary is characterized by the parent company ______ the subsidiary's stock.
owning 100% of
Using host country nationals to fill key management positions describes the ______ approach to global human resource management.
polycentric
Internationalization is defined as the ______.
process of an organization crossing national borders for the first time to do business
Once it decides to do business in the international environment, a company must determine whether to ______.
rely on expatriates, third country nationals, or host country nationals to run its international operations
One purpose of NAFTA is to ______.
remove about 99% of all tariffs across its three member countries
The process expatriates go through when they return home after their assignments are over is known as ______.
repatriation
Stereotypes can help us to ______ others.
understand
Sociotyping is defined as ______.
using stereotypes as sources of initial information
Expatriates are defined as ______.
employees assigned to work in another country
Third country nationals are defined as ______.
employees from a country other than the home country or the host country
Cross-cultural training is defined as ______.
helping the expatriate learn skills to help her/him improve social exchanges with host country employees
The country in which the parent organization is headquartered is known as the ______.
home country
The country in which an organization operates a facility or conducts other business activities is known as the ______.
host country
Power Distance
Comfort level when socializing across different organizational levels
Masculinity vs. femininity
Consideration of quantity of life vs. quality of life
The feeling of anxiety and apprehension one experiences when not knowing how to behave or act in new surroundings is known as ______.
Culture shock
The process of an organization crossing national borders for the first time to do business is known as ______.
internationalization
Stabilizing oil markets while securing a consistent supply of petroleum to its customers is one purpose of ______.
OPEC
Wholly owned subsidiary
Owning 100% of the stock in a foreign company that may still operate independently of you
In order to conduct business internationally without experiencing any major pitfalls, a company should conduct a ______ analysis.
PESTLE
The home country is defined as the ______.
country in which the parent organization is headquartered
The values, orientations, and beliefs that affect individuals in a society and influence their worldview define ______.
culture
Power distance is defined as the ______.
degree to which people accept an unequal distribution of power across institutions, organizations, and people
The purpose of APEC is to ______.
establish new markets for agricultural products
Seeking to fill key managerial positions with home country nationals describes the ______ approach to global human resource management.
ethnocentric
The GLOBE project ultimately ______ Hofstede's work.
extended
In culture, the extent to which procedures are written down and followed through with almost bureaucratic precision is known as ______.
formality
Recruiting the very best manager for a position, regardless of where s(he) is from, describes the ______ approach to global human resource management.
geocentric
Companies will be more open to engaging in ______ if there are more opportunities to access needed resources from the international than from the domestic market.
importing
Countries that have more incidents of terrorism are prone to experience ______.
less economic growth and trade
A culture's tendency to focus on the future is known as ______.
long-term orientation
Social networks such as Facebook and Instagram have made it easier for companies to ______.
market their products and services across the globe
When your own culture creates blinders that make it impossible to understand why people from other cultures do what they do, you are using ______.
self-reference criterion
A culture's tendency to focus on the present is known as ______.
short-term orientation
Over the past 30 years, shifting ideologies in central Europe have created ______.
some of the world's most transformative, vibrant economies
Collectivism is defined as the tendency for people to ______.
subordinate their own needs for the greater good of a group
People taking notice of previously ignored phenomena, worldwide networks of buyers and sellers, and opportunities for global marketing are all ways that ______ has affected international business.
technology
Ethnocentrism
tendency to judge another culture based on preconceptions found in one's own culture - rooted in arrogance
The purpose of Hofstede's research was to better understand international differences in ______.
work-related values
