Question 1

Political risk is defined as an organization's risk of _____ due to politically based events or actions by host governments.

Accepted Answer

A)  loss of assets 
B)  managerial control 
C)  earning power 
D)  all of these 
E)  managerial control and earning power only 
A)  loss of assets 
B)  managerial control 
C)  earning power 
D)  all of these 
E)  managerial control and earning power only D

Question 2

Briefly describe two personal challenges for global managers.

Accepted Answer

Managers will be most successful in foreign assignments if they are culturally flexible and if they can easily adapt to new situations. Thus, the two personal challenges that exist for global managers are overcoming ethnocentric tendencies and culture shock. Ethnocentrism is a cultural attitude marked by the tendency to regard one's own culture as superior to others. Culture shock refers to the frustration and stress that result from continually being exposed to new and different situations. Proper training and preparation of incoming global managers is crucial.

Question 3

Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control.

Accepted Answer

A) True 
 B)False  True

Question 4

The Digitec company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make information technology available to people in places like rural Africa and rural India. This is known as what type of strategy?

Accepted Answer

A)  Bottom of the pyramid strategy 
B)  Skimming the barrel strategy 
C)  Cream of the crop strategy 
D)  Top of the peak strategy 
E)  Base price strategy 
A)  Bottom of the pyramid strategy 
B)  Skimming the barrel strategy 
C)  Cream of the crop strategy 
D)  Top of the peak strategy 
E)  Base price strategy

Question 5

A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in _____.

Accepted Answer

The answer of A country that places emphasis on fairness...

Question 6

The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is called _____.

Accepted Answer

A)  standardization 
B)  industrialization 
C)  globalization 
D)  internationalism 
E)  linguistic pluralism 
A)  standardization 
B)  industrialization 
C)  globalization 
D)  internationalism 
E)  linguistic pluralism

Question 7

The primary emphasis of polycentric companies is on their home countries.

Accepted Answer

A) True 
 B)False

Question 8

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use?

Accepted Answer

A)  Wholly owned foreign affiliate 
B)  A greenfield venture agreement 
C)  A franchise 
D)  An export agreement 
E)  Barter trade 
A)  Wholly owned foreign affiliate 
B)  A greenfield venture agreement 
C)  A franchise 
D)  An export agreement 
E)  Barter trade

Question 9

Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses?

Accepted Answer

A)  Direct investment/franchising 
B)  Wholly owned foreign affiliate/countertrade 
C)  Exporting/licensing 
D)  Franchising/licensing 
E)  All of these 
A)  Direct investment/franchising 
B)  Wholly owned foreign affiliate/countertrade 
C)  Exporting/licensing 
D)  Franchising/licensing 
E)  All of these

Question 10

With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.

Accepted Answer

A) True 
 B)False

Question 11

In a(n) _____, people use communication primarily to exchange facts and information.

Accepted Answer

The answer of In a(n) _____, people use communication primarily...

Question 12

As a first step into international business, which two countries are most companies going to today?

Accepted Answer

A)  Russia and Japan 
B)  Sweden and Germany 
C)  China and India 
D)  Brazil and Philippines 
E)  Indonesia and Brazil 
A)  Russia and Japan 
B)  Sweden and Germany 
C)  China and India 
D)  Brazil and Philippines 
E)  Indonesia and Brazil

Question 13

List five of the countries that make up the European Union (EU).

Accepted Answer

Choose any five of the followi

Question 14

Scenario - Sharon Cannon
 Sharon Cannon was an MBA student in Detroit, Michigan, with a managerial position at the Ford Motor Company plant. She was invited to join a company that had entered into a joint venture with a German firm to manage a Volkswagen plant. Sharon would be under contract for one year, with an option to renew for a total of three years. Her salary would be 350% more than she was currently earning, and she would be given two all-expenses paid vacations each year. The money and the benefits sounded very nice, but Sharon wasn't sure what the best choice would be.
-The American firm joining in the joint venture:

Accepted Answer

A)  faces lower risk than if it were using a wholly-owned foreign affiliate. 
B)  enjoys greater control than is it were using the wholly-owned affiliate. 
C)  can anticipate a lower cost than a company that uses global outscoring. 
D)  all of these. 
E)  none of these. 
A)  faces lower risk than if it were using a wholly-owned foreign affiliate. 
B)  enjoys greater control than is it were using the wholly-owned affiliate. 
C)  can anticipate a lower cost than a company that uses global outscoring. 
D)  all of these. 
E)  none of these.

Question 15

Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America.

Accepted Answer

A) True 
 B)False

Question 16

Collectivist values are represented in the social framework of which of these?

Accepted Answer

A)  The United States 
B)  Australia 
C)  Ecuador 
D)  Great Britain 
E)  All of these 
A)  The United States 
B)  Australia 
C)  Ecuador 
D)  Great Britain 
E)  All of these

Question 17

Countries that value high power distances normally have cities that are geographically separated and so have the need to transport electrical energy over large distances.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following countries possesses a high performance orientation?

Accepted Answer

A)  Israel 
B)  Sweden 
C)  Taiwan 
D)  Russia 
E)  Venezuela 
A)  Israel 
B)  Sweden 
C)  Taiwan 
D)  Russia 
E)  Venezuela

Question 19

There are three components to cultural intelligence: cognitive, emotional, and physical.

Accepted Answer

A) True 
 B)False

Question 20

How many nations signed on for negotiation when GATT was created in 1947?

Accepted Answer

A)  15 
B)  23 
C)  28 
D)  40 
E)  57 
A)  15 
B)  23 
C)  28 
D)  40 
E)  57

Political risk is defined as an organization's risk of _____ due to politically based events or actions by host governments.

Briefly describe two personal challenges for global managers.

Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control.

The Digitec company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make information technology available to people in places like rural Africa and rural India. This is known as what type of strategy?

A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in _____.

The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is called _____.

The primary emphasis of polycentric companies is on their home countries.

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use?

Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses?

With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.

In a(n) _____, people use communication primarily to exchange facts and information.

As a first step into international business, which two countries are most companies going to today?

List five of the countries that make up the European Union (EU).

Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America.

Collectivist values are represented in the social framework of which of these?

Countries that value high power distances normally have cities that are geographically separated and so have the need to transport electrical energy over large distances.

Which of the following countries possesses a high performance orientation?

There are three components to cultural intelligence: cognitive, emotional, and physical.

How many nations signed on for negotiation when GATT was created in 1947?

The World of Innovative Management

The Evolution of Management Thinking

The Environment and Corporate Culture

Managing Ethics and Social Responsibility

Managing Start Ups and New Ventures

Managerial Planning and Goal Setting

Strategy Formulation and Execution

Managerial Decision Making

Designing Organization Structure

Managing Change and Innovation

Managing Human Resource

Managing Diversity

Understanding Individual Behavior

Leadership

Motivating Employees

Managing Communication

Leading Teams

Managing Quality and Performance

Filters

Exam 4: Managing in a Global Environment

Political risk is defined as an organization's risk of _____ due to politically based events or actions by host governments.

Briefly describe two personal challenges for global managers.

Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control.

The Digitec company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make information technology available to people in places like rural Africa and rural India. This is known as what type of strategy?

A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in _____.

The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is called _____.

The primary emphasis of polycentric companies is on their home countries.

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use?

Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses?

With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.

In a(n) _____, people use communication primarily to exchange facts and information.

As a first step into international business, which two countries are most companies going to today?

List five of the countries that make up the European Union (EU).

Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America.

Collectivist values are represented in the social framework of which of these?

Countries that value high power distances normally have cities that are geographically separated and so have the need to transport electrical energy over large distances.

Which of the following countries possesses a high performance orientation?

There are three components to cultural intelligence: cognitive, emotional, and physical.

How many nations signed on for negotiation when GATT was created in 1947?

The World of Innovative Management

The Evolution of Management Thinking

The Environment and Corporate Culture

Managing Ethics and Social Responsibility

Managing Start Ups and New Ventures

Managerial Planning and Goal Setting

Strategy Formulation and Execution

Managerial Decision Making

Designing Organization Structure

Managing Change and Innovation

Managing Human Resource

Managing Diversity

Understanding Individual Behavior

Leadership

Motivating Employees

Managing Communication

Leading Teams

Managing Quality and Performance

Filters