Question 1

In Hofstede's dimensions of culture, almost all cultures tend toward a long-term orientation and emphasize perseverance.

Accepted Answer

A) True 
 B)False  False

Question 2

Uncertainty involved in transactions of any kind contributes to greater transaction costs.

Accepted Answer

A) True 
 B)False  True

Question 3

All sides agree that ethics can make or break a firm.

Accepted Answer

A) True 
 B)False  True

Question 4

Which are true regarding informal constraints?

Accepted Answer

A) When formal institutional constraints fail, informal constraints tend to fail as well. 
B) Following the collapse the former Soviet Union, informal constraints were unable to facilitate growth of entrepreneurial firms. 
C)  Even in developed economies, the best-connected firms can reap significant benefits. 
D)  All of the above. 
A) When formal institutional constraints fail, informal constraints tend to fail as well. 
B) Following the collapse the former Soviet Union, informal constraints were unable to facilitate growth of entrepreneurial firms. 
C)  Even in developed economies, the best-connected firms can reap significant benefits. 
D)  All of the above.

Question 5

Doing business with foreigners may significantly reduce transaction costs over doing business with domestic firms.

Accepted Answer

A) True 
 B)False

Question 6

The best managers, who expect norms to shift over time, constantly decipher the changes in the informal "rules of the game" and then incorporate them in setting the strategies of the firm.

Accepted Answer

A) True 
 B)False

Question 7

In regards to individualism versus collectivism:

Accepted Answer

A) Collectivists never discriminate against out-group members and may be more opportunistic when dealing with in-group members. 
B) Individualists make more distinction between in-group and out-group membership. 
C)  Individualists are more opportunistic when dealing with in-group members. 
D)  Collectivists may view social interactions/activities as unessential and wasteful of resources. 
A) Collectivists never discriminate against out-group members and may be more opportunistic when dealing with in-group members. 
B) Individualists make more distinction between in-group and out-group membership. 
C)  Individualists are more opportunistic when dealing with in-group members. 
D)  Collectivists may view social interactions/activities as unessential and wasteful of resources.

Question 8

Company A purchases its supplies directly from a foreign company. Because of the distance between the two companies, this transaction is considered an arm's-length transaction.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT considered one of the strategic responses to ethical challenges a firm may face?

Accepted Answer

A) ​Reactive. 
B) ​Positive. 
C)  ​Accommodative. 
D)  ​Proactive. 
A) ​Reactive. 
B) ​Positive. 
C)  ​Accommodative. 
D)  ​Proactive.

Question 10

Relational contracting is not advantageous when the size of the economy is limited.

Accepted Answer

A) True 
 B)False

Question 11

Institutions do which of the following?

Accepted Answer

A) Reduce uncertainty. 
B) Signal which conduct is acceptable and which is not. 
C)  Reduce opportunism and transaction costs. 
D)  All of the above. 
A) Reduce uncertainty. 
B) Signal which conduct is acceptable and which is not. 
C)  Reduce opportunism and transaction costs. 
D)  All of the above.

Question 12

Which of the following is an example of a formal institution?​

Accepted Answer

A) ​Rules. 
B) ​Culture. 
C)  ​Ethics. 
D)  ​None of the above. 
A) ​Rules. 
B) ​Culture. 
C)  ​Ethics. 
D)  ​None of the above.

Question 13

Striking differences between institutions in developed and emerging economies has eliminated the institution-based view from strategy discussions.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements about strategy and institutions is TRUE?

Accepted Answer

A) ​When formal institutional constraints fail, informal constraints tend to fail as well. 
B) ​Institutions are little more than background conditions to strategic decisions. 
C)  ​The institution-based view focuses on the dynamic interaction between institutions and firms, and considers strategic choices the outcome of such interaction. 
D)  ​The institutional similarities between developed and emerging economies have propelled the institution-based view to the forefront of strategy discussions. 
A) ​When formal institutional constraints fail, informal constraints tend to fail as well. 
B) ​Institutions are little more than background conditions to strategic decisions. 
C)  ​The institution-based view focuses on the dynamic interaction between institutions and firms, and considers strategic choices the outcome of such interaction. 
D)  ​The institutional similarities between developed and emerging economies have propelled the institution-based view to the forefront of strategy discussions.

Question 15

Hofstede proposed five dimensions of culture, which include power distance and uncertainty avoidance.

Accepted Answer

A) True 
 B)False

Question 16

Describe the purpose of Hofstede's five dimensions of culture and list those five dimensions. Also, indicate why Hofstede's dimensions are valuable.

Accepted Answer

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Question 17

Which of the following statements about institutional transitions is TRUE?

Accepted Answer

A) ​Without relational contracting, institutional transitions cannot be made. 
B) ​Arm's-length transactions with third-party enforcement are the most effective approach to institutional transitions. 
C)  ​Institutional transitions are widespread in the world, especially in emerging economies. 
D)  ​The nature of institutional frameworks is unrelated to strategic decision making during transitions. 
A) ​Without relational contracting, institutional transitions cannot be made. 
B) ​Arm's-length transactions with third-party enforcement are the most effective approach to institutional transitions. 
C)  ​Institutional transitions are widespread in the world, especially in emerging economies. 
D)  ​The nature of institutional frameworks is unrelated to strategic decision making during transitions.

Question 18

Which of the following is TRUE regarding cultures and strategic choices?

Accepted Answer

A) Managers in high power distance countries have a greater penchant for decentralized authority. 
B) Solicitation of subordinate feedback and participation is a sign of weak leadership in high power distance countries. 
C)  Individualistic cultures prefer more informal contractual safeguards in alliances than collectivistic cultures. 
D)  Managers in low uncertainty avoidance countries place a high premium on job security and retirement benefits. 
A) Managers in high power distance countries have a greater penchant for decentralized authority. 
B) Solicitation of subordinate feedback and participation is a sign of weak leadership in high power distance countries. 
C)  Individualistic cultures prefer more informal contractual safeguards in alliances than collectivistic cultures. 
D)  Managers in low uncertainty avoidance countries place a high premium on job security and retirement benefits.

Question 19

In high femininity societies (such as Sweden):

Accepted Answer

A) ​Men frequently assume the roles of teachers, nurses, and househusbands. 
B) ​Women have occupations that fall primarily in the caring professions. 
C)  ​Men experience a strong form of societal-level sex role differentiation. 
D)  ​Women seldom take on the roles of politicians and scientists. 
A) ​Men frequently assume the roles of teachers, nurses, and househusbands. 
B) ​Women have occupations that fall primarily in the caring professions. 
C)  ​Men experience a strong form of societal-level sex role differentiation. 
D)  ​Women seldom take on the roles of politicians and scientists.

Question 20

The institutional distance between two firms, based on their country of origin, is the same thing as cultural distance.

Accepted Answer

A) True 
 B)False

In Hofstede's dimensions of culture, almost all cultures tend toward a long-term orientation and emphasize perseverance.

Uncertainty involved in transactions of any kind contributes to greater transaction costs.

All sides agree that ethics can make or break a firm.

Which are true regarding informal constraints?

Doing business with foreigners may significantly reduce transaction costs over doing business with domestic firms.

The best managers, who expect norms to shift over time, constantly decipher the changes in the informal "rules of the game" and then incorporate them in setting the strategies of the firm.

In regards to individualism versus collectivism:

Company A purchases its supplies directly from a foreign company. Because of the distance between the two companies, this transaction is considered an arm's-length transaction.

Which of the following is NOT considered one of the strategic responses to ethical challenges a firm may face?

Relational contracting is not advantageous when the size of the economy is limited.

Institutions do which of the following?

Which of the following is an example of a formal institution?

Striking differences between institutions in developed and emerging economies has eliminated the institution-based view from strategy discussions.

Which of the following statements about strategy and institutions is TRUE?

Hofstede proposed five dimensions of culture, which include power distance and uncertainty avoidance.

Describe the purpose of Hofstede's five dimensions of culture and list those five dimensions. Also, indicate why Hofstede's dimensions are valuable.

Which of the following statements about institutional transitions is TRUE?

Which of the following is TRUE regarding cultures and strategic choices?

In high femininity societies (such as Sweden):

The institutional distance between two firms, based on their country of origin, is the same thing as cultural distance.

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Exam 4: Emphasizing Institutions, Cultures, and Ethics

In Hofstede's dimensions of culture, almost all cultures tend toward a long-term orientation and emphasize perseverance.

Uncertainty involved in transactions of any kind contributes to greater transaction costs.

All sides agree that ethics can make or break a firm.

Which are true regarding informal constraints?

Doing business with foreigners may significantly reduce transaction costs over doing business with domestic firms.

The best managers, who expect norms to shift over time, constantly decipher the changes in the informal "rules of the game" and then incorporate them in setting the strategies of the firm.

In regards to individualism versus collectivism:

Company A purchases its supplies directly from a foreign company. Because of the distance between the two companies, this transaction is considered an arm's-length transaction.

Which of the following is NOT considered one of the strategic responses to ethical challenges a firm may face?

Relational contracting is not advantageous when the size of the economy is limited.

Institutions do which of the following?

Which of the following is an example of a formal institution?​

Striking differences between institutions in developed and emerging economies has eliminated the institution-based view from strategy discussions.

Which of the following statements about strategy and institutions is TRUE?

Hofstede proposed five dimensions of culture, which include power distance and uncertainty avoidance.

Describe the purpose of Hofstede's five dimensions of culture and list those five dimensions. Also, indicate why Hofstede's dimensions are valuable.

Which of the following statements about institutional transitions is TRUE?

Which of the following is TRUE regarding cultures and strategic choices?

In high femininity societies (such as Sweden):

The institutional distance between two firms, based on their country of origin, is the same thing as cultural distance.

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Which of the following is an example of a formal institution?