Question 1

European multi-national corporations seldom use people with an international orientation to staff their management positions.

Accepted Answer

A) True 
 B)False

Question 2

A limitation of ROI as a measure of international performance is that

Accepted Answer

A)  it is a single comprehensive figure examining only one facet of the firm. 
B)  it provides disincentive to use existing assets efficiently. 
C)  it provides an incentive to acquire new assets. 
D)  it is very sensitive to depreciation policy. 
E)  it does not provide the basis for common comparison. 
A)  it is a single comprehensive figure examining only one facet of the firm. 
B)  it provides disincentive to use existing assets efficiently. 
C)  it provides an incentive to acquire new assets. 
D)  it is very sensitive to depreciation policy. 
E)  it does not provide the basis for common comparison.

Question 3

A prior relationship with an alliance partner helps to develop

Accepted Answer

A)  a level of trust. 
B)  a larger profit. 
C)  a stronger contractual agreement. 
D)  less need on negotiations. 
E)  fewer personnel. 
A)  a level of trust. 
B)  a larger profit. 
C)  a stronger contractual agreement. 
D)  less need on negotiations. 
E)  fewer personnel.

Question 4

Which means of international entry is a variation of the turnkey operation?

Accepted Answer

A)  joint venture 
B)  acquisition 
C)  green-field development 
D)  production sharing 
E)  BOT 
A)  joint venture 
B)  acquisition 
C)  green-field development 
D)  production sharing 
E)  BOT

Question 5

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used not to evaluate performance but to minimize taxes.

Accepted Answer

A) True 
 B)False

Question 6

Among the most important barriers to international trade are the different standards for products and services.

Accepted Answer

A) True 
 B)False

Question 7

The global MNC faces the dual challenge of achieving scale economies through standardization while at the same time responding to

Accepted Answer

A)  increased competition. 
B)  local customer differences. 
C)  higher prices. 
D)  global economics. 
E)  increased shipping expenses. 
A)  increased competition. 
B)  local customer differences. 
C)  higher prices. 
D)  global economics. 
E)  increased shipping expenses.

Question 8

Stage 4 of international development is a multi-national corporation with global emphasis.

Accepted Answer

A) True 
 B)False

Question 9

Acquisitions are usually a far more complicated and expensive operation than green-field development.

Accepted Answer

A) True 
 B)False

Question 10

Only ________ of human resource managers have ever worked abroad,so most have little understanding of a global assignment's unique personal and professional challenges and thus fail to develop the training necessary for such an assignment.

Accepted Answer

A)  11% 
B)  21% 
C)  51% 
D)  41% 
E)  31% 
A)  11% 
B)  21% 
C)  51% 
D)  41% 
E)  31%

Question 11

Which of the following is not true of the stages of international development?

Accepted Answer

A)  Corporations operating internationally tend to evolve through five common stages. 
B)  Stage 1 of international development is the domestic company. 
C)  In Stage 4 of international development, the company adds an international division with responsibility for most of the business functions conducted in other countries. 
D)  In Stage 2 of international development, the firm is a domestic company with an export division. 
E)  In Stage 5 of international development, all managers are responsible for dealing with international as well as domestic issues. 
A)  Corporations operating internationally tend to evolve through five common stages. 
B)  Stage 1 of international development is the domestic company. 
C)  In Stage 4 of international development, the company adds an international division with responsibility for most of the business functions conducted in other countries. 
D)  In Stage 2 of international development, the firm is a domestic company with an export division. 
E)  In Stage 5 of international development, all managers are responsible for dealing with international as well as domestic issues.

Question 12

Nationalistic governments tend to be placated by organizations that choose to hire

Accepted Answer

A)  general managers with local experience. 
B)  home country managers. 
C)  managers with general international experience, but not from the host country. 
D)  fewer local managers. 
E)  parent company managers. 
A)  general managers with local experience. 
B)  home country managers. 
C)  managers with general international experience, but not from the host country. 
D)  fewer local managers. 
E)  parent company managers.

Question 13

An MNC uses which international strategy for entering a foreign market by combining the higher labor skills and technology available in the developed countries with the lower cost labor available in the developing countries?

Accepted Answer

A)  licensing 
B)  joint ventures 
C)  production sharing 
D)  exporting 
E)  acquisitions 
A)  licensing 
B)  joint ventures 
C)  production sharing 
D)  exporting 
E)  acquisitions

Question 14

The first stage of international development is the domestic company.

Accepted Answer

A) True 
 B)False

Question 15

Which measure was cited as the most important measure for international performance evaluation?

Accepted Answer

A)  rate of return 
B)  ROI 
C)  budget analysis 
D)  ROE 
E)  stock price 
A)  rate of return 
B)  ROI 
C)  budget analysis 
D)  ROE 
E)  stock price

Question 16

The reasons cited for a large percent of expats sent abroad who return home early are

Accepted Answer

A)  failure to learn the language and difficult job responsibilities. 
B)  difficulties adjusting to the culture and the language. 
C)  job dissatisfaction or difficulties adjusting to a foreign country. 
D)  job dissatisfaction and lack of technical skills. 
E)  lack of technical skills and inability to fulfill job responsibilities. 
A)  failure to learn the language and difficult job responsibilities. 
B)  difficulties adjusting to the culture and the language. 
C)  job dissatisfaction or difficulties adjusting to a foreign country. 
D)  job dissatisfaction and lack of technical skills. 
E)  lack of technical skills and inability to fulfill job responsibilities.

Question 17

The most successful MNCs move into a fifth stage of international development in which they have worldwide human resources,R&D,and financing strategies.

Accepted Answer

A) True 
 B)False

Question 18

What is the activity that occurs in Stage 1 of international development?

Accepted Answer

A)  The company invests in production facilities in key countries. 
B)  The company exports, but trade is minor and handled by an export department. 
C)  The company establishes its own export division with sales offices in other countries. 
D)  The company operates in a global industry and establishes worldwide human resources, R&D, and financing strategies. 
E)  The company establishes local operating divisions in host countries to better serve individual country markets. 
A)  The company invests in production facilities in key countries. 
B)  The company exports, but trade is minor and handled by an export department. 
C)  The company establishes its own export division with sales offices in other countries. 
D)  The company operates in a global industry and establishes worldwide human resources, R&D, and financing strategies. 
E)  The company establishes local operating divisions in host countries to better serve individual country markets.

Question 19

Forming a joint venture between a foreign corporation and a domestic company is the most popular strategy used to enter a new country.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not one of the ways MNCs can reduce taxes and capture profits from a subsidiary?

Accepted Answer

A)  dividends 
B)  royalties 
C)  management fees 
D)  transfer pricing 
E)  exporting 
A)  dividends 
B)  royalties 
C)  management fees 
D)  transfer pricing 
E)  exporting

European multi-national corporations seldom use people with an international orientation to staff their management positions.

A limitation of ROI as a measure of international performance is that

A prior relationship with an alliance partner helps to develop

Which means of international entry is a variation of the turnkey operation?

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used not to evaluate performance but to minimize taxes.

Among the most important barriers to international trade are the different standards for products and services.

The global MNC faces the dual challenge of achieving scale economies through standardization while at the same time responding to

Stage 4 of international development is a multi-national corporation with global emphasis.

Acquisitions are usually a far more complicated and expensive operation than green-field development.

Only ________ of human resource managers have ever worked abroad,so most have little understanding of a global assignment's unique personal and professional challenges and thus fail to develop the training necessary for such an assignment.

Which of the following is not true of the stages of international development?

Nationalistic governments tend to be placated by organizations that choose to hire

An MNC uses which international strategy for entering a foreign market by combining the higher labor skills and technology available in the developed countries with the lower cost labor available in the developing countries?

The first stage of international development is the domestic company.

Which measure was cited as the most important measure for international performance evaluation?

The reasons cited for a large percent of expats sent abroad who return home early are

The most successful MNCs move into a fifth stage of international development in which they have worldwide human resources,R&D,and financing strategies.

What is the activity that occurs in Stage 1 of international development?

Forming a joint venture between a foreign corporation and a domestic company is the most popular strategy used to enter a new country.

Which of the following is not one of the ways MNCs can reduce taxes and capture profits from a subsidiary?

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

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Exam 9: Strategy Implementation: Global Strategy

European multi-national corporations seldom use people with an international orientation to staff their management positions.

A limitation of ROI as a measure of international performance is that

A prior relationship with an alliance partner helps to develop

Which means of international entry is a variation of the turnkey operation?

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used not to evaluate performance but to minimize taxes.

Among the most important barriers to international trade are the different standards for products and services.

The global MNC faces the dual challenge of achieving scale economies through standardization while at the same time responding to

Stage 4 of international development is a multi-national corporation with global emphasis.

Acquisitions are usually a far more complicated and expensive operation than green-field development.

Only ________ of human resource managers have ever worked abroad,so most have little understanding of a global assignment's unique personal and professional challenges and thus fail to develop the training necessary for such an assignment.

Which of the following is not true of the stages of international development?

Nationalistic governments tend to be placated by organizations that choose to hire

An MNC uses which international strategy for entering a foreign market by combining the higher labor skills and technology available in the developed countries with the lower cost labor available in the developing countries?

The first stage of international development is the domestic company.

Which measure was cited as the most important measure for international performance evaluation?

The reasons cited for a large percent of expats sent abroad who return home early are

The most successful MNCs move into a fifth stage of international development in which they have worldwide human resources,R&D,and financing strategies.

What is the activity that occurs in Stage 1 of international development?

Forming a joint venture between a foreign corporation and a domestic company is the most popular strategy used to enter a new country.

Which of the following is not one of the ways MNCs can reduce taxes and capture profits from a subsidiary?

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters