MGMT 420 Final

It has been evidenced that the presence of diversity in the workplace increases employee satisfaction. The text notes that in the case of minority workers, improved satisfaction occurs when representation exceeds at least _____ of the workforce.

15%

Recent survey results suggest that U.S. CEOs earn roughly ______ -times the pay of non-U.S. CEOs.

2

The United States-Mexico-Canada Agreement renegotiated NAFTA and requires automakers to produce Blank______ of a vehicle's content in North America to qualify for zero tariffs.

75%

What three things should a company take into consideration when choosing a strategic alliance partner?

A good partner does not act opportunistically. A good partner helps the firm achieve its strategic goals. A good partner shares the firm's vision for the purpose of the alliance.

What are the considerations that help determine where an international firm will locate its production facilities?

Ability to minimize costs and improve quality

What are two ways a company can set up a wholly owned subsidiary in a foreign country?

Acquire an established firm A greenfield venture

What are two impediments to establishing economic integration?

Concerns over national sovereignty Costs of integration

What are three things a firm must do to maximize profitability according to the basic strategy paradigm?

Configure internal operations to support the firm's choice on the efficiency frontier Make sure firm has the correct structure in place to support the selected strategy Pick a position on the efficiency frontier in which there is enough demand to support the choice

What two factors are critically important to the success of global supply chain coordination?

Coordination Integration

What are four examples of communication channels a company can use?

Direct selling Social media Sales promotion Advertising

What are the four main institutions responsible for determining economic policy in the EU?

European Commission European Parliament Court of Justice Council of the European Union

According to the text, what three things help managers develop a global mindset?

Grow up in a bicultural family Learn foreign languages as a part of family life Live in a foreign country

Which two factors would lead a firm to choose a concentrated production configuration?

High minimum efficient scale of production High fixed costs

In many cases, which two groups are responsible for evaluating the performance of expatriate managers?

Home-office managers Host-nation managers

What are three arguments in support of global advertising?

Many brand names are global. One large advertising effort will produce better results. Significant economic advantages

What are three factors that would lead a company to establish a concentrated production configuration?

Value-to-weight ratio is high. High fixed costs Product serves universal needs

Which three groups are part of the upstream/inbound portion of the global supply chain?

Vendors Suppliers Partners

What two factors are particularly important in the others-orientation dimension identified by Mendenhall and Oddou?

Willingness to communicate Relationship development

Bob's Bicycle Company is planning to enter into foreign markets where there are already well-established incumbent enterprises and in which global competitors are also interested in establishing a presence. Based on these circumstances, Bob's Bicycle Company should enter the foreign markets via ______.

acquisition

An argument against regional free trade agreements contends that the benefits have been oversold, but ______ have often been ignored.

costs

A problem that arises when a home-office manager evaluates the performance of an expatriate is ______, which can be alleviated by receiving input from on-site managers.

cultural bias

A commodity's production costs tend to decline over time. This is referred to as the ______ curve.

experience

When focusing on the strategic perspective, no matter what compensation system is used, international managers should be rewarded for

following the corporate strategy.

The concept that valuable knowledge does not just reside in a firm's domestic operations but can be found in foreign subsidiaries is known as ______.

global learning

According to some researchers, a manager who demonstrates cognitive complexity and a cosmopolitan outlook has a(n)

global mindset

Levitt promoted the idea that the success of companies like McDonald's and Coca-Cola that sell essentially the same products everywhere reflects the

globalization of markets and brands.

During the campaign for leaving the EU, one of the recent claims said that leaving the EU would allow the British to take back control of _____.

immigration

Conrad's U.S. based company entered the European market long after its competitors had established themselves. This is known as ________ entry.

late

A company that engages in international purchasing, but does so in a reactive and uncoordinated way, is at which level of global purchasing?

level 2

Rasheed's report outlined that consumers living on the West Coast had purchased 80 percent more of the company's line of "green" products as compared to consumers living in the southeastern part of the country. His report identifying specific groups is an example of

market segmentation.

Since unit costs decrease as plant output increases, a ______ of output is necessary for a plant to realize all major plant-level scale economies.

minimum efficient scale

Based on economic theories, free trade is viewed as a ______ as all participating nations stand to gain.

positive - sum game

For most companies, there is a critical link among channel length, the final selling price, and the company's

profit margin

The process that involves preparing expatriate managers to return to their home-country organization is called ______. Multiple choice question.

repatriation

The Single European Act abolished restrictions on cabotage, which is the

right of foreign truckers to pick up and deliver goods within another member state's borders.

When considering the three basic decisions a firm must make when it decides to enter a foreign market, it must determine the market to enter, the timing of entrance, and

scale

Following a month-long social media attack on German imports, German electronic manufacturers decided to implement an advertising campaign to negate the attack and reassure U.S. consumers that German-made electronics were of the highest quality and relied on U.S. parts to complete the product. Which international communication barrier did the German electronic manufacturers address?

source effects

When a consumer reads an advertisement and evaluates the content of the ad on the basis of the image of the company that placed the ad, he or she is being influenced by

source effects

Decisions and actions that managers take to meet the company's goals are known as ______.

strategy

After his company introduced a new line of hair dryers, Jeremy realized that the dryers could not be sold in Europe because the electrical adapters would not fit into the existing design. Jeremy's company failed to take into account ______ standards that limited globalization.

technical

While no longer an area of concern now that most people stream music, originally DVD equipment made in the United States would not play DVDs recorded on equipment made in Germany. This shows how _____ can influence consumer behavior.

technical standards

Theodore Levitt believed that _____ was driving the world toward a converging commonality.

technology

Once a manager has been selected for an international posting, the next step is to

train for responsibiltiies of job

Companies using a _____ strategy are more likely to foster management development as these managers must be able to detect pressures for local responsiveness.

transnational

More and more international businesses are incorporating management development techniques. This is especially evident in companies using a(n) _____ strategy.

transnational

Lisette works for Southwest Petroleum Corp. Her company is responsible for every aspect of setting up a refinery location for its clients. Southwest Petroleum builds the site, trains personnel, and notifies the client when the refinery is ready for operation. What foreign entry mode does this represent?

turnkey project

The difference between a firm's production costs and the value consumers perceive in its products is called ______.

value creation

As the pressure to reduce costs increases, a firm will focus on location and experience curve economies. These firms would MOST LIKELY consider franchising and joint ventures entry modes.

False

The political structure responsible for economic policies in the EU consists of a single office known as the Court of Justice.

False - 4 institutions

What are three forms of economic integration?

Free trade area Full political union Common market

Which two political factors support the idea for economic integration of nations through trade?

Interdependency among nations decreases the potential for violent conflict. It can enhance the political weight of those countries in the world.

Which three statements are TRUE about franchising?

It is similar to a license but with a longer time commitment. The franchiser typically receives a royalty payment. The franchisee commits to abiding by strict rules on how it does business.

_____ is an inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. This method requires producers to forecast demand accurately.

JIT

Pressures for local responsiveness can impact a company's strategy by decreasing or eliminating the full benefits from what three things?

Learning effects Location economies Economies of scale

A company that engages in global purchasing activities that are integrated across worldwide locations and functional groups is at which level of global purchasing?

Level V

in which type of distribution channel is it more likely for the consumer to end up paying a higher price for the final product?

Long

Which three factors would lead a company to adopt a decentralized production configuration strategy?

Low value-to-weight ratio Low fixed costs High trade barriers

Which agreement was an attempt at regional economic integration in the United States?

North American Free Trade Agreement

Expatriates with high self-esteem, self-confidence, and mental well-being are more likely to succeed in a foreign posting. Which of Mendenhall and Oddou's dimensions does this represent?

Self-orientation

What are three strategic roles a foreign factory might have?

Server factory Offshore factory Outpost factory