Question 1

​The cognitive pillar that supports informal institutions does so through:

Accepted Answer

A)  ​The way in which values and norms of the relevant players influence firm behavior. 
B)  ​The taken-for-granted values and beliefs that guide individual and firm behavior. 
C)  ​The way in which laws and regulations influence firm behavior. 
D)  ​Formal institutions. 
A)  ​The way in which values and norms of the relevant players influence firm behavior. 
B)  ​The taken-for-granted values and beliefs that guide individual and firm behavior. 
C)  ​The way in which laws and regulations influence firm behavior. 
D)  ​Formal institutions. B

Question 2

With his diamond model,Porter describes the factors that determine the competitive advantage of globally leading industries.
​

Accepted Answer

A) True 
 B)False  True

Question 3

​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. B

Question 4

​In Porter's diamond model,the four factors that determine the competitive advantage of different industries in different nations include the history and institutions that influence firm rivalries.

Accepted Answer

A) True 
 B)False

Question 5

​Which of the following is NOT one of the four factors in Porter's "diamond" model?

Accepted Answer

A)  ​Firm strategy,structure,and rivalry. 
B)  ​Relational contracting. 
C)  ​Factor endowments. 
D)  ​Domestic demand. 
A)  ​Firm strategy,structure,and rivalry. 
B)  ​Relational contracting. 
C)  ​Factor endowments. 
D)  ​Domestic demand.

Question 6

What is ethical in one country may be unethical or illegal in other countries - and vice versa.Nevertheless,ethical imperialism (absolute belief that "there is only one set of Ethics,and we have it!")is alive and well.You may be able to identify some values that seem to be almost universally accepted.However,such is not the case with all values.As a result,doesn't a global company need to "pick sides" in ethical controversies and thus be an "ethical imperialist?"

Accepted Answer

Some students may try to evade the quest

Question 7

Catastrophes may allow ethical firms to shine.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

​Which of the following is descriptive of ethical relativism?

Accepted Answer

A)  ​Ethical and unethical behaviors are universally agreed upon for the most part. 
B)  ​Ethical standards vary significantly around the world. 
C)  ​It contradicts the cliché "When in Rome,do as the Romans do." 
D)  ​Ethics is an instrument to impose the values of the elite on the masses. 
A)  ​Ethical and unethical behaviors are universally agreed upon for the most part. 
B)  ​Ethical standards vary significantly around the world. 
C)  ​It contradicts the cliché "When in Rome,do as the Romans do." 
D)  ​Ethics is an instrument to impose the values of the elite on the masses.

Question 10

Which is the instrumental view regarding motivation to become ethical?

Accepted Answer

A)  Jump on the "bandwagon" to appear more legitimate without becoming more ethical. 
B)  Be self-motivated to "do it right" regardless of social pressures. 
C)  Good ethics are a way to achieve good profits. 
D)  Ethics is an instrument to impose the values of the elite on the masses. 
A)  Jump on the "bandwagon" to appear more legitimate without becoming more ethical. 
B)  Be self-motivated to "do it right" regardless of social pressures. 
C)  Good ethics are a way to achieve good profits. 
D)  Ethics is an instrument to impose the values of the elite on the masses.

Question 11

​Strategists who are sensitive to cultural differences in making strategic decisions will find that:

Accepted Answer

A)  ​A long-term orientation is always more helpful when it comes to strategy. 
B)  ​The identity of an individual is based on the identity of his or her collective group. 
C)  ​It is not especially helpful in avoiding strategic blunders. 
D)  ​They better understand business situations in other parts of the world. 
A)  ​A long-term orientation is always more helpful when it comes to strategy. 
B)  ​The identity of an individual is based on the identity of his or her collective group. 
C)  ​It is not especially helpful in avoiding strategic blunders. 
D)  ​They better understand business situations in other parts of the world.

Question 12

How do institutions reduce uncertainty?

Accepted Answer

A)  Ethical contracting. 
B)  Arm's-length transaction with third party enforcement. 
C)  Transaction costs. 
D)  Opportunism. 
A)  Ethical contracting. 
B)  Arm's-length transaction with third party enforcement. 
C)  Transaction costs. 
D)  Opportunism.

Question 13

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 14

Ethical imperialism is best expressed by which of the following:

Accepted Answer

A)  "When in Rome,do as the Romans do." 
B)  "There is only one set of Ethics,and we have it!" 
C)  "Respect for human dignity and basic rights should be the absolute,minimal ethical threshold for ALL operations around the world." 
D)  "Ignore corruption." 
A)  "When in Rome,do as the Romans do." 
B)  "There is only one set of Ethics,and we have it!" 
C)  "Respect for human dignity and basic rights should be the absolute,minimal ethical threshold for ALL operations around the world." 
D)  "Ignore corruption."

Question 15

​Economic crises have always been considered to be a force majeure.

Accepted Answer

A) True 
 B)False

Question 16

​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 17

​How does bounded rationality affect strategic decision making?

Accepted Answer

A)  ​Managers pursue their interests and make choices within the formal and informal constraints in a given institutional framework. 
B)  ​Relying on informal connections as a strategy is only relevant for firms in emerging economies. 
C)  ​Only with prior experience can managers of multinationals make rational strategy decisions. 
D)  ​Bounded rationality has no effect on decision making. 
A)  ​Managers pursue their interests and make choices within the formal and informal constraints in a given institutional framework. 
B)  ​Relying on informal connections as a strategy is only relevant for firms in emerging economies. 
C)  ​Only with prior experience can managers of multinationals make rational strategy decisions. 
D)  ​Bounded rationality has no effect on decision making.

Question 18

​A company realizes one of its products could potentially have a defective part.Although no problems have been reported,the company recalls the product to check for and if necessary replace the part in question.This company is using a _________ strategic response to its ethical challenge.

Accepted Answer

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

Question 19

​Australia,considered an individualistic society,fosters a higher level of entrepreneurship than generally found in collectivistic societies.

Accepted Answer

A) True 
 B)False

Question 20

​At its core,the institution-based view focuses on how certain strategic choices are diffused from a few firms to many.Such forces of institutionalization are driven by a combination of regulatory,normative,and cognitive pillars.Think of an example of how a firm has strategically responded to an ethical challenge.Describe that challenge and indicate which of the four strategic choices given in the text you think the firm used to address that challenge.Explain why it used that type of response.

Accepted Answer

​Answers will vary greatly,but should in

The cognitive pillar that supports informal institutions does so through:

With his diamond model,Porter describes the factors that determine the competitive advantage of globally leading industries.

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

In Porter's diamond model,the four factors that determine the competitive advantage of different industries in different nations include the history and institutions that influence firm rivalries.

Which of the following is NOT one of the four factors in Porter's "diamond" model?

Catastrophes may allow ethical firms to shine.

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

Which of the following is descriptive of ethical relativism?

Which is the instrumental view regarding motivation to become ethical?

Strategists who are sensitive to cultural differences in making strategic decisions will find that:

How do institutions reduce uncertainty?

In regards to individualism versus collectivism:

Ethical imperialism is best expressed by which of the following:

Economic crises have always been considered to be a force majeure.

Which of the following statements about institutional transitions is TRUE?

How does bounded rationality affect strategic decision making?

A company realizes one of its products could potentially have a defective part.Although no problems have been reported,the company recalls the product to check for and if necessary replace the part in question.This company is using a _________ strategic response to its ethical challenge.

Australia,considered an individualistic society,fosters a higher level of entrepreneurship than generally found in collectivistic societies.

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

​The cognitive pillar that supports informal institutions does so through:

With his diamond model,Porter describes the factors that determine the competitive advantage of globally leading industries. ​

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

​In Porter's diamond model,the four factors that determine the competitive advantage of different industries in different nations include the history and institutions that influence firm rivalries.

​Which of the following is NOT one of the four factors in Porter's "diamond" model?

Catastrophes may allow ethical firms to shine.

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

​Which of the following is descriptive of ethical relativism?

Which is the instrumental view regarding motivation to become ethical?

​Strategists who are sensitive to cultural differences in making strategic decisions will find that:

How do institutions reduce uncertainty?

In regards to individualism versus collectivism:

Ethical imperialism is best expressed by which of the following:

​Economic crises have always been considered to be a force majeure.

​Which of the following statements about institutional transitions is TRUE?

​How does bounded rationality affect strategic decision making?

​A company realizes one of its products could potentially have a defective part.Although no problems have been reported,the company recalls the product to check for and if necessary replace the part in question.This company is using a _________ strategic response to its ethical challenge.

​Australia,considered an individualistic society,fosters a higher level of entrepreneurship than generally found in collectivistic societies.

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

The cognitive pillar that supports informal institutions does so through:

With his diamond model,Porter describes the factors that determine the competitive advantage of globally leading industries.

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

In Porter's diamond model,the four factors that determine the competitive advantage of different industries in different nations include the history and institutions that influence firm rivalries.

Which of the following is NOT one of the four factors in Porter's "diamond" model?

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

Which of the following is descriptive of ethical relativism?

Strategists who are sensitive to cultural differences in making strategic decisions will find that:

Economic crises have always been considered to be a force majeure.

Which of the following statements about institutional transitions is TRUE?

How does bounded rationality affect strategic decision making?

A company realizes one of its products could potentially have a defective part.Although no problems have been reported,the company recalls the product to check for and if necessary replace the part in question.This company is using a _________ strategic response to its ethical challenge.

Australia,considered an individualistic society,fosters a higher level of entrepreneurship than generally found in collectivistic societies.