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b. OPEC.
c. APEC.
d. None of the above
d. Information technology does not allow the sharing of information around the
world.
c. It reduces competition.
d. It reduces rivalry.
c. Is concerned with developing strategies that deal with operating in more than one
country and culture.
d. None of the above
a. A standard product allows the company to save money because the same product
can be sold anywhere.
b. A company can be more responsive to local cultural conditions.
c. It allows the company to invest more in research and development.
d. All of the above
location
price
flexibility
a high standard
36. According to the text, all of the following includes factors that will shape the future
business environment EXCEPT
a. Blurring of industry barriers.
b. Finding your niche.
c. Ability to find cheap labor.
d. Emphasis on innovation and the learning organization.
a.
b.
c.
d.
ESSAY
1. Discuss how any company can become a multinational company. What are some of
the options available to companies that allow them to use international markets and
locations competitively?
2. Discuss some reasons why reductions in world trade barriers are driving the world
toward a global economy.
3. Discuss at least two major forces that are driving the world toward a global economy.
4. How is the Internet and Information technology helping companies deal with a global
economy? How is the Internet and Information technology helping small companies
and even companies from poorer nations?
5. What is corporate social responsibility? Why are firms trying to become socially
responsible?
6. Discuss the differences between foreign trade and foreign direct investment.
7. What are some of the reasons why globalization and free trade are being criticized?
Do you think that free trade is helping all countries? Why or why not?
8. Look at the information on the worlds leading exporters discussed in the text. Do you
think these trends will continue in the future? Why?
9. Discuss the characteristics of a next generation of multinational managers. How can
you develop those characteristics through education and experience?
10. Why should multinational management be studied? What are some of the elements of
a strategic approach to multinational management?
Chapter 2 Culture and Multinational Management
MULTIPLE CHOICE
1. All the following is true about culture EXCEPT
a. Culture is the shared belief, norms, and values that guide everyday life of a group.
b. Culture is passed from generation to generation through norms, values, and beliefs.
c. Culture is always directly observable.
d. Culture is very pervasive in societies.
c. Masculinity.
d. Long-term orientation.
c. Are norms, values, and beliefs that pertain to all aspects of doing business in a
country.
d. Are the dominant cultures within a country.
12. On which of Hofstede's value dimensions does the U.S. rank highest?
a. Masculinity
b. Individualism
c. Patriotism
d. Power distance
a.
b.
c.
d.
Low masculinity.
Low uncertainty avoidance.
Short term orientations.
High collectivisim (low individualism).
a.
b.
c.
d.
High masculinity
High power distance
High uncertainty avoidance
All of the above
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
40. According to research discussed in the text, which of the following may help
managers become more culturally intelligent?
a. Exposure to new cultural experiences in other countries
b. Learning to trust each people from individualistic cultures
c. Having a short term orientation
d. All of the above are true
10. Discuss the GLOBE cultural framework. How is this cultural framework different
from Hofstedes framework?
Chapter 3 The Institutional Context of Multinational Management
MULTIPLE CHOICE
1. The national context of a society is made up of
a. The national and business cultures of that society.
b. The social institutions of that society.
c. The national cultures and social institutions of that society.
d. The national cultures of that society.
b. Command economy.
c. Socialist economy.
d. Mixed economy.
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8. Which of the following are key social institutions that are the most likely to influence
the business environment of a country?
a. Economic system
b. Level of industrialization
c. Religion
d. All of the above
b. Market transition
c. Education
d. Religion
23. In which of the following societies would people most likely prefer non-monetary
incentives?
a. Industrial society
b. Pre-industrial society
c. Post-industrial society
d. None of the above
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27. The famous German Sociologist, Max Weber, argued that the Protestant work ethic
a. Led to the emergence of capitalism in Western Europe.
b. Led to the decline of capitalism in Western Europe.
c. Led to an acute distaste for the accumulation of wealth.
d. Led to the rise of socialism in Eastern Europe.
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31. The educational attainment scores
a. Are fairly similar for most countries.
b. Give an idea of the abundance of engineers for research and development
purposes.
c. Reflect the mean years of schooling of people in any society.
d. All of the above are true of educational attainment scores.
d. Government regulation
3. The ethical philosophies that consider actions as good or bad regardless of their
outcomes are
a. The teleological ethical theories.
b. Utilitarianism.
c. Deontological theories of ethics.
d. None of the above
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7. Moral languages
a. Are a form of deontological ethical theory.
b. Focus on the consequences of actions rather than their worth.
c. Describe the ways people think about general issues.
d. Are used to explain ethical choices.
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11. Written ethical codes may include which of the following?
a. Contracts
b. International laws
c. Laws of a country
d. All of the above
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19. Pressures for ethical convergence include all of the following EXCEPT
a. The growth of international trade and trading blocs.
b. Increased interaction between foreign trading partners.
c. The need to have unique norms and values to manage their employees differently.
d. All of the above are true
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23. When companies use the logic of ethical relativism to behave any way they please,
this is known as
a. Prescriptive ethical management.
b. Proscriptive ethical management.
c. Convenient relativism.
d. Universal ethics applications.
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31. A multinational manager decides that it would be unethical to close a foreign plant as
employees in that plant are not being treated with dignity. Which ethical theory is the
manager using to reach that conclusion?
a. Teleological ethical theory
b. Utilitarian ethical theory
c. Deontological ethical theory
d. None of the above
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38. According to the text, which of the following is NOT a consequence of corruption?
a. Companies typically make up the bribe by increasing the contract price.
b. Companies use poorer quality materials to make up for the bribe.
c. Companies devote some of the bribe to socially responsible causes.
d. Corruption can also result in collusions among firms.
3. Discuss the difference between teleological and deontological theories of ethics. Give
examples of how an international manager might appeal to either type of theory when
faced with the opportunity to offer a bribe.
4. How do social institutions and culture affect the practice of business ethics in different
countries?
5. Compare and contrast ethical relativism and ethical universalism. What are some of
the dangers of adopting either ethical relativism or ethical universalism when making
decisions?
6. Describe the U.S. FCPA, what makes it challenging for U.S. firms, and how they deal
with that challenge.
7. What are moral languages? How can moral languages help multinational become
more ethical?
8. Discuss some of the pressures for ethical convergence. What are some implications
for multinational management?
9. Compare and contrast prescriptive codes of ethics with proscriptive codes.
Chapter 5
Strategic Management in the Multinational Company: Content and Formulation
MULTIPLE CHOICE
1. Generic strategies
a. Occur when a company can outmatch its rivals in attracting and maintaining its
customers.
b. Represent basic ways that domestic and multinational companies keep and achieve
competitive advantage.
c. Are all based on finding ways to provide superior value to the customer.
d. None of the above
a.
b.
c.
d.
c. Represents all the activities that a firm uses to design, produce, market, deliver,
and support its products.
d. None of the above
c. Cash cows.
d. Problem children.
c. Opportunities.
d. Distinctive competencies.
c. Transnational
d. Global
a.
b.
c.
d.
Direct exporting.
Franchising.
Indirect exporting.
Licensing.
22. When a firm from another country has an equity (or ownership) position in a separate
company, it is engaging in
a. An international cooperative alliance.
b. A turnkey operation.
c. A contract manufacturer.
d. FDI.
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34. If a company believes that it needs to control foreign sales, customer credit, and sale
of product to the customer, it is more likely to choose
a. Indirect exporting.
b. Rely on foreign intermediaries for export purposes.
c. Direct exporting.
d. None of the above
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2. Definitions of small businesses discussed in the text include the following EXCEPT
a. Number of employees.
b. Sales revenue.
c. Industry.
d. Type of product or service.
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6. A global start-up is
a. A company that goes global from day one of its life.
b. A company that starts a global strategy after exporting.
c. A company that skips the first stage of the Small Business Model of
Internationalization.
d. None of the above
international business.
a. The energy and creativity entrepreneurs can put in their multinational operations.
b. The ease by which small companies can become global start-ups.
c. The speed by which entrepreneurs can react to changing conditions and capture
significant sales before larger companies can react.
d. The number of venture capitalists willing to invest in successful small businesses.
d. Catalog expositions
b. Functional department.
c. Product department.
d. Liaison office.
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16. The worldwide geographic structure is usually considered best to implement a _____
strategy.
a. Multidomestic or regional
b. Transnational
c. International
d. Indirect exporting
environment for local adaptation and for product standardization with its
associated economies of scale.
d. Decision making.
27. Which of the following types of control system uses budgets, statistical reports,
standard operating procedures, and centralized decision making to manage
organizational processes?
a. Profit center
b. Bureaucratic control system
c. Decision-making control
d. Cultural control system
b. Ownership.
c. Domination.
d. None of the above
d. Can never exist in high technology relationships since the risk of losing the
technology is too great.
succeed.
b. Objectives can be different if they are not in conflict.
c. Cultural differences must be dealt with first.
d. Parent companies must leave the strategic alliance management to develop their
own strategic goals.
34. The psychological identification with a relationship in a strategic alliance and the
pride of association with the partner and the alliance is known as
a. Calculative commitment.
b. Credibility trust.
c. Benevolent trust.
d. Attitudinal commitment.
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38. Which of the following statements regarding international joint ventures is FALSE?
a. International joint ventures usually have two or more partners.
b. International joint ventures are usually not legally binding.
c. International joint ventures with a large number of partners are known as
consortiums.
d. Companies do not need equal ownership to form an international joint venture.
2. What are some of the common value chain links companies use to gain strategic
benefits from alliances? Pick two of these links and describe some of the benefits
partners gain from pursuing these links.
3. Under what conditions should a firm choose one of the various management
structures available for a strategic alliance?
4. What are the different kinds of commitment needed in a strategic alliance? Explain.
5. What are some of the difficulties of assessing IJV or ICA performance? How do these
differ for companies with different strategic goals?
6. What are the different management structures possible for strategic alliances? Pick
two of these management structures and discuss when they are most appropriate.
7. Compare and contrast the three main types of strategic alliances.
8. Discuss some of the things multinational managers can do to build and sustain trust
and commitment.
9. If an alliance fails to meet strategic goals, what two options do top managers have to
choose from to resolve the situation? How can an alliance be improved?
Chapter 10 Multinational e-Commerce: Strategies and Structures
MULTIPLE CHOICE
1. Ebay is a prime example of which form of e-commerce?
a. Business to business transactions (B2B)
b. Business to consumer transactions (B2C)
c. Consumer to business transactions (C2B)
d. Consumer to consumer transactions (C2C)
b. An internet host.
c. A computer that has its own Internet Protocol address.
d. A computer that has its own World Wide Web address.
6. Which of the following is NOT one of the necessary steps to ensure a successful ECommerce strategy?
a. Building on current business models and experimenting with new e-commerce
models
b. Allocating resources to the e-commerce business
c. Making sure that the entire firm is prepared to embrace the e-commerce model
d. Training all upper level management in computer programming
in each country.
d. Corporate headquarters of the business provides the vision, strategy and leadership
and also takes charge of the local strategies in each country.
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24. MNCs face rising pressures to maintain the __________ of their customers.
a. Data
b. Privacy
c. Support
d. Repeat business
d. C2B (consumer-to-business)
35. The internet has enabled the emergence of a new form of multinational, known as
a. Internet Service Providers.
b. Virtual enablers.
c. Internet businesses.
d. Born-globals.
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39. Southeast Asian countries represent opportunities for e-commerce growth due to
a. Spanish language websites.
b. Membership in ASEAN.
c. Global demand.
d. Internet economy.
5. What are some of the major factors to take into consideration when picking a country
for setting up an e-commerce business? Why do trading blocks such as Mercosur,
ASEAN, and the European Union present significant potential for e-commerce
businesses?
6. Discuss the three-tiered ideal organizational structure of a multinational e-corporation.
What are some of the essential functions served by the headquarters of the
multinational e-corporation? Why should company headquarters not be responsible
for local strategies?
7. What are e-commerce enablers? Why are e-commerce enablers becoming increasingly
popular? Discuss some of the essential services provided by e-commerce enablers.
8. Discuss some of the technical capabilities that are needed for multinational ecommerce.
9. Discuss some of the major problems companies face when they try to globalize their
Web sites. What can companies do to face these challenges?
10. What is e-commerce security? Discuss the four key aspects of information security.
What can a multinational do to ensure that its e-commerce system is secure?
Chapter 11 International Human Resource Management
MULTIPLE CHOICE
1. The process by which companies choose people to fill vacant position is
a. Recruitment.
b. Compensation.
c. Selection.
d. Training and development.
30. Extra money paid to expatriates for particularly difficult posting due to issues such as
high risk or poor living conditions is known as
a. Foreign service premiums.
b. Hardship allowance.
c. Relocation allowances.
d. Home-leave allowances.
2. Describe the types of nationals employed by multinational firms. Explain when each
type would be used.
3. Discuss and contrast the four IHRM orientations. Describe how each can support a
multinational strategy.
4. Contrast the positive and negative issues for using short term flexpatriates and
international cadre members as expatriate managers. Consider both the organization's
perspective and the career implications for the individual manager.
5. Discuss the options available for expatriate compensation. Consider how these
options might be used for a transnational and a multidomestic company.
6. Discuss how multinational companies can deal with the repatriation problem. Why is
it necessary to deal with this issue?
7. What are some advantages women have in expatriate positions? Discuss some
challenges that are faced by women in international assignments.
8. Discuss any three of the key expatriate success factors and their implications for
selection.
Chapter 12 HRM in the Local Context: Knowing When and How to Adapt
MULTIPLE CHOICE
1. Differences in HRM policies and practices among countries stem from
a. Education and training of the labor force.
b. Laws and cultural expectations for selection practices.
c. Laws and traditions regarding labor practices.
d. All of the above
d. Managerial culture
d. Internal recruiting
a.
b.
c.
d.
26. Which of the following is FALSE about recruitment and selection processes in
collectivist cultures?
a. Companies prefer to hire directly out of school.
b. There is a preference for family and friends.
c. Personal information is considered important for selection.
d. Technical skills are considered crucial for selection.
1. Describe and discuss the major factors in the national context that affect a nation's
HRM practices.
2. What are some of the recruitment strategies used by U.S. companies? Why is open
and public advertisements seen as the most effective recruitment strategies? Why
would such strategies not work in more collectivist cultures?
3. Some U.S. politicians have called for the development of a German-type
apprenticeship training system in the U.S. If you were a manager of a U.S. Fortune
500 multinational company, how would you respond to this proposal and why? What
are the current challenges facing the German system now?
4. You have been given the assignment to set up a training program for first level
managers in a formerly government-owned eastern European company. How would
you go about developing a curriculum? Why?
5. Compare and contrast the appraisal and compensation systems in the U.S. and more
collectivist culture nations. Discuss legal and cultural problems that multinational
managers might face using a collectivist approach to these systems in the U.S. and
using a U.S. approach in more collectivist cultures.
6. Contrast the different types of unions and discuss the challenges each type may pose
to a multinational manager.
7. Define and describe union membership density as it has been historically and is now.
Why is it important to multinational managers?
8. How is feedback on performance given in collectivist societies, especially for
managers?
Chapter 13 International Negotiation and Cross-Cultural Communication
MULTIPLE CHOICE
1. International negotiation
a. Is the process of making business deals across national and cultural boundaries.
b. Is less complex than domestic negotiation.
c. Can be successful regardless of ease of communication.
d. All of the above
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17. At the __________ stage in the negotiation, both parties exchange the specifics of
their needs for the agreement.
a. Exchanging Information and the First Offer
b. Building the relationship
c. Persuasion
d. Concession
24. If negotiators are using deliberate deception as a dirty tricks, the best way to deal with
the deception is
a. Not to make any concessions.
b. To ignore the ploy and focus on the agreement.
c. To not reveal your negotiation plans.
d. To point out directly what you believe is happening.
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28. In competitive negotiation
a. Negotiators seek out mutually satisfactory ground that is beneficial that allows
both companies to win.
b. Competitive negotiators view the negotiation as a win-win game.
c. Competitive negotiators use dirty tricks and any plot that leads to their advantage.
d. Competitive negotiators search for possible win situations where the outcome of
the negotiation is mutually satisfactory to both sides.
languages.
d. All of the above are true.
7. Identify and describe some common dirty tricks in international negotiation. What can
be done to counteract these dirty tricks?
8. Describe several forms of nonverbal communication. If you were a negotiator, how
might you prepare for differences in these forms?
9. What are interpreters? What can managers do to ensure appropriate use of
interpreters?
15. Which types of motivation theories explain motivation arising from satisfaction of
needs and values combined with an individual's beliefs regarding the work
environment?
a. Needs theories
b. Work centrality theories
c. Process and reinforcement theories
d. Work functions theories
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19. All of the following statements are true EXCEPT
a. Equity norms prevail in individualistic cultures.
b. Equality norms prevail over equity norms in collectivist cultures.
c. Equity norms prevail in collectivist cultures.
d. All of the above are true.
a. When working in groups, people in individualistic cultures often feel less pressure
to work and less responsible for work outcomes.
b. Workers in groups in individualistic cultures often believe that the group will make
up any slack in their personal efforts.
c. People in individualistic cultures often give priority to their own work over the
group.
d. All of the above are reasons to explain social loafing in individualistic cultures.
38. According to the text, those who are underrewarded are likely to
a. Return their rewards.
b. Reduce their inputs.
c. Increase their inputs.
d. None of the above
4. What are the three major principles of allocating rewards? Discuss how each principle
works. Why is equality preferred in more collectivistic cultures while individualistic
cultures favor equity?
5. Discuss some of the implications of the operant-conditioning model for multinational
management.
6. Explain why performance drops off when teams are used in individualistic cultures.
Explain the significance of social loafing in the process. How can social loafing be
reduced?
7. Compare and contrast the Job Diagnostics Design Approach to the European
Sociotechnical Systems Approach to job design.
8. Discuss equity theory. What are the implications for multinationals?
Chapter 15 Leadership and Management Behavior in Multinational Companies
MULTIPLE CHOICE
1. All the following statements are true about leadership EXCEPT
a. Leadership is influencing group members to achieve organizational goals.
b. Excellent leaders motivate their employees to achieve more than minimal
organizational requirements.
c. Companies can achieve success with or without good leaders.
d. Leading in a multinational company is an even greater challenge than in a
domestic one.
d. Democratic leadership.
b. PM theory has two dimensions, the performance function (P) and the maintenance
function (M), which are the basic aspects of the theory.
c. The maintenance function (M) is similar to task-centered leadership.
d. PM theory suggests that groups perform best when both P and M are present.
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14. Which of the following is NOT one of the leadership styles of the path-goal theory of
leadership?
a. Directive style
b. Supportive style
c. Task-oriented style
d. Participative style
a. In counties with high power distance values, including many of the Latin and
Asian countries, subordinates expect autocratic leadership.
b. In low power distance countries, such as Sweden and Norway, subordinates expect
the leader to be more like them.
c. Weak masculinity norms often lead to the acceptance of more authoritarian
leadership.
d. Strong uncertainty avoidance norms may cause subordinates to expect the leader to
provide more detail in directions.
PTS: 1
32. A multinational manager discovers that his leadership style is more effective when he
displays visible sign of status (e.g chauffeur driven cars) and he behaves as an
authoritarian leader. The manager is most likely leading in which of the following
cultures?
a. A feminine culture
b. A high uncertainty avoidance culture
c. A low power distance culture
d. A high power distance culture
6. Discuss whether transformational leadership qualities are culture free. That is, are
transformational leaders similar regardless of cultural background or are there
different types of transformational leaders for each cultural group?
7. What is attribution theory? How can leaders use attribution theory to help them be
good leaders?
8. What is the fundamental attribution error? What are some implications for leadership
in multinationals?
9. Compare and contrast U.S. and Japanese perspectives on leadership behavior.