Deck 3: International Management and Globalization

Question 1

By forming a strategic alliance,two firms agree to share resources to accomplish a mutually desirable goal.

Answer 1

True

Question 2

People from countries with high collective orientations tend to exhibit emotional dependence on the organizations and institutions to which they belong.

Answer 2

True

Question 3

In low-context cultures,the situation itself may or may not affect what is considered to be appropriate behavior.

Answer 3

True

Question 4

A country's institutional environment consists of its rules,policies,and enforcement processes.

Question 5

In a globally focused organization,strategic decisions are made in the branch offices.

Question 6

In virtual teams,members frequently depend on electronically
mediated communications.

Question 7

The Sarbanes-Oxley Act was enacted by the United States to enforce tariffs and quotas on goods imported from China.

Question 8

Power distance is the extent to which people accept power and authority differences among people.

Question 9

If a country's laws related to intellectual property rights are weak,then firms with valuable technologies will be reluctant to bring them into that country.

Question 10

The institutional environment of a country has little effect on the individuals and organizations that operate within it.

Question 11

An organization using a region-country focus is highly decentralized.

Question 12

Societal culture can dramatically influence how people observe and interpret the business world around them.

Question 13

Managers rarely have to manage multicultural teams within one organization in one location.

Question 14

As firms gain more experience operating in international markets,they prefer to enter markets that have institutional environments and cultures similar to their own.

Question 15

Increasing globalization has dramatically changed the competitive landscape for everyone in recent years.

Question 16

The two major aspects of a country's environment are its heritage and culture.

Question 17

Citizens in nations high in uncertainty avoidance prefer to have fewer rules and tend to be more comfortable in ambiguous situations.

Question 18

Individualism can be defined as the extent to which a person's identity is a function of the groups to which he or she belongs.

Question 19

The most common way of entering international markets is via strategic alliances.

Question 20

A transnational organization tries to be simultaneously centralized and decentralized.

Question 21

Which of the following is similar to the given scenario?

A) In a steel mill in Japan, all tasks take place only after careful planning. The managers proceed to make changes step by step. They believe this reduces risks to a minimum.
B) In an accounting firm in Australia, the manager encourages individual thought process. He puts a high value on personal achievement.
C) Employees of an HR consultancy firm in Pakistan make sure everyone is at the table during lunch hour. This practice also helps them discuss alternatives and reach decisions collectively.
D) Players of the Manchester United soccer team revere their manager Sir Alex Ferguson and trust him completely with respect to team tactics and selection.

Question 22

Rooney,Inc.is a company that manufactures sugar.It is based in South Africa.The company follows the just-in-time approach in which it does not believe in stocking raw materials and maintaining an inventory,but instead relies on a strong supply chain to deliver materials in time.As a part of recent business development plans,the company decided to begin importing raw materials from Borneo.Which of the following,if true,would force the company to question its reliability on the JIT approach?

A) Regulations in Borneo have become stricter.
B) Borneo has recently been classified as an emerging economy.
C) Borneo has yet not relaxed its markets to direct foreign investments.
D) The physical infrastructure in Borneo is weak.

Question 23

________ is when cultures differ in the extent to which they need clarity or can tolerate ambiguity.

A) Collectivism
B) Individualism
C) Power distance
D) Uncertainty avoidance

Question 24

According to Hofstede,________ is the extent to which people accept power and authority differences among people.

A) gender focus
B) individualism
C) power distance
D) uncertainty avoidance

Question 25

When the laws of a country related to enforcement of ________ are weak,firms with valuable technologies are reluctant to bring them into the country.

A) currency exchange rates
B) intellectual property rights
C) infrastructure dimensions
D) environmental protection

Question 26

Of the following,________ is a dimension of a country's distinct institutional environment.

A) human behavior
B) societal values
C) economic development
D) power distance

Question 27

Cluster 4 countries have the most developed institutional infrastructure,with ________.

A) balanced regulatory control and political rights
B) high regulatory control and low political rights
C) low monetary policy and investment restrictions
D) low regulatory control and low political rights

Question 28

________ is a learned set of assumptions,values,and beliefs that have been accepted by members of a group and that affect human behavior.

A) Culture
B) History
C) Nationality
D) Ethnicity

Question 29

A country's ________ consists of its rules,policies,and enforcement processes.

A) cultural milieu
B) economic dimension
C) institutional environment
D) socioeconomic landscape

Question 30

Which one of the following economies tends to have a more effective capital market than the rest?

A) emerging
B) developing
C) developed
D) expansive

Question 31

Brian,a senior manager in a logistics firm,has a democratic style of leadership.Brian is very approachable,and employees in his department are free to consult with him at any time.The culture in Brian's department is one of ________.

A) low power distance
B) gender focus
C) uncertainty avoidance
D) economic development

Question 32

Which of the following is true about the economic development of an institutional environment?

A) Economies that are not highly developed but are growing rapidly are classified as developing economies.
B) Developing economies tend to have more effective capital markets than developed economies.
C) Developed economy countries have rapidly growing economies.
D) Developed economies tend to be larger than less-developed or emerging economies.

Question 33

Cluster 1 countries largely consist of developing and transition economies that ________.

A) are low on monetary policies
B) have strong physical infrastructures
C) have balanced regulatory controls and political rights
D) are high in regulatory control and low in political rights

Question 34

Which of the following is a dimension of national culture?

A) political stability
B) uncertainty avoidance
C) regulations
D) economic development

Question 35

Which of the following is a dimension of the country's physical infrastructure?

A) welfare of the citizens
B) production of raw materials
C) number of airports
D) political stability

Question 36

According to Thomas Friedman,the third stage of globalization involves ________.

A) internationalization of countries
B) countries moving into international markets
C) individuals collaborating or competing on a global basis
D) increasing influence of national governments on local economies

Question 37

________ refers to the flow of goods and services,capital,and knowledge across country borders.

A) Marketing
B) Globalization
C) Repatriation
D) Entrepreneurialism

Question 38

A global mind-set can allow a manager to influence individuals,groups,and organizations from diverse sociocultural and institutional environments.

Question 39

In EduTech,a software company,the views and suggestions of managers are considered unquestionable and employees never go against what has been suggested by the managers.Sole authority rests in the hands of the managers.What is this an example of?

A) uncertainty avoidance
B) power distance
C) individualism
D) gender focus

Question 40

When Maria arrived from Mexico to study in the U.S.,she noticed a difference between the students in Mexico and the students in the U.S.The American students felt comfortable asking questions,they were eager to share a thought or an opinion,and in some instances they even contradicted the teacher.Maria comes from a country that has ________.

A) individualism
B) gender focus
C) high power distance
D) uncertainty avoidance

Question 41

Business meetings in Japan follow elaborate procedure,often take a long time as seemingly little details are scrutinized,and end with all parties signing detailed protocols to leave no room for misunderstandings.This is because Japan ranks high when it comes to ________.

A) personal freedom
B) uncertainty avoidance
C) individualism
D) gender focus

Question 42

People who live in countries that score high on individual orientations tend to ________.

A) value collective decisions
B) emphasize group membership
C) emphasize and reward individual achievement
D) exhibit emotional dependence on organizations

Question 43

Which of the following is likely to be an advantage for the licensor in a licensing arrangement?

A) low cost and little risk
B) major returns on investment irrespective of sales
C) strict control over the use of its product and brand name
D) low royalty percentages

Question 44

Countries emphasizing feminine traits value ________.

A) activities that lead to success
B) activities that lead to money
C) activities that lead to possessions
D) activities that enhance quality of life

Question 45

In a steel mill in Japan,all tasks take place only after careful planning.The employees rely on the rules,laws,and regulations set by the authorities.They proceed to make changes step by step.The managers of the mill believe this reduces risks to a minimum.This is an example of ________.

A) collectivism
B) individualism
C) uncertainty avoidance
D) group membership

Question 46

Which of the following is true about exporting goods?

A) Exporting is not a popular entry strategy because of its high risks and capital requirements.
B) Exporting requires establishing operations in the country and a large capital investment.
C) An export strategy most likely provides big returns because of shared costs with local firms.
D) An exporting firm must establish a means of marketing and distributing its goods within the country.

Question 47

________ is the extent to which a person's identity is a function of the group(s)to which he or she belongs and the extent to which group members are expected to look after each other.

A) Individualism
B) Collectivism
C) Power distance
D) Uncertainty avoidance

Question 48

Which of the following is a characteristic of collectivism?

A) high emotional independence
B) value for individual decisions
C) emphasis on individual achievement
D) group membership

Question 49

Chucks' Eggs is a company that distributes eggs in Latin America and is planning to enter the North American market.As the risks are greater when entering new markets,Chucks' decides to join hands with another firm that has mutually desirable goals.This way,they can share the costs and have access to each other's resources.Which of the following ways is Chucks' implementing to enter a new market?

A) exporting
B) creating a strategic alliance
C) licensing
D) purchasing a local firm

Question 50

A foreign company can enter a new market via ________ agreements that allow a local firm in the new market to manufacture and distribute the foreign company's product.

A) exporting
B) importing
C) licensing
D) marketing

Question 51

Swedish companies usually have a flat and team-oriented structure with few management levels.The result is a simple and direct decision-making process.In Swedish companies,the concept of personal responsibility is paramount.This is because Swedish companies have ________.

A) low power distance
B) high uncertainty avoidance
C) gender focus
D) collectivism

Question 52

Refer to the scenario above.Which of the following best supports the firm's decision to use licensing as a strategy to enter the Chinese market?

A) Even though the company is experiencing profits, it cannot afford to take risks while investing in a foreign market.
B) Cocoabeans has little control over the sales of its products in the U.S. and is looking for the support of a local firm.
C) The firm has partnered with a local firm on mutually profitable terms.
D) Cocoabeans has purchased a local firm to market its product in China because it does not want to give full rights to anyone else.

Question 53

________ are cooperative arrangements between two firms in which they agree to share resources to accomplish a mutually desirable goal.

A) Strategic alliances
B) Licensing arrangements
C) Cross-border acquisitions
D) Wholly-owned subsidiaries

Question 54

As a teacher in a primary school in Scottsdale,Arizona,Ruth likes to make decisions that are independent of the school organization.She is dedicated to inculcating the habit of making choices in her students and places a high reward on personal achievement.This is an example of ________.

A) uncertainty avoidance
B) power distance
C) collectivism
D) individualism

Question 55

Which of the following is true for the dimensions of national culture?

A) Power distance is a measure of the extent to which a group has power and status differences.
B) Citizens in nations high in uncertainty avoidance prefer to have fewer rules.
C) Countries emphasizing masculine traits value activities that lead to success, money, and possessions.
D) Individualism is the extent to which a person's identity is a function of the group(s) to which the person belongs.

Question 56

________ involves manufacturing products in a firm's home country and shipping them to a foreign market.

A) Importing
B) Exporting
C) Outsourcing
D) Strategic marketing

Question 57

Countries emphasizing masculine traits value ________.

A) activities that encourage forgiveness
B) activities that lead to success
C) activities that show caring for others
D) activities that enhance quality of life

Question 58

For smaller firms and for firms entering into foreign markets,________ is the most common way to enter an international market.

A) licensing arrangements
B) exporting goods
C) creating strategic alliances
D) cross-border acquisition

Question 59

________ is the extent to which people's identities are self-oriented and people are expected to take care of themselves and their immediate families.

A) Individualism
B) Power distance
C) Collectivism
D) Uncertainty avoidance

Question 60

Ruth belongs to a community where members have a strong feeling of involvement in each other's lives,as well as a strong feeling of loyalty and responsibility to their community.This community is an example of?

A) avoidance
B) power distance
C) collectivism
D) gender focus

Question 61

A ________ is often called a "Greenfield venture."

A) strategic alliance
B) licensing arrangement
C) wholly-owned subsidiary
D) cross-border acquisition

Question 62

Which of the following is a challenge associated with cross-border acquisitions?

A) little control over the product
B) increased costs of transportation
C) integration of two previously independent companies
D) complexity in launching

Question 63

A foreign firm can enter a new international market by using a(n)________ to purchase a local firm in that market.

A) strategic alliance
B) licensing agreement
C) cross-border acquisition
D) exporting strategy

Question 64

In ________,people pay close attention to the situation and its various elements.

A) power distance
B) individualism
C) gender focus
D) high-context cultures

Question 65

In high-context cultures,the situation has a ________ on what is considered appropriate behavior.

A) minimal influence
B) marginal influence
C) significant influence
D) negligible influence

Question 66

In an organization using a region-country focus,the primary authority to determine competitive strategy rests with the ________.

A) corporate stockholders
B) corporate board of directors
C) home office management team
D) management of the international subsidiary

Question 67

Romano Ware manufactures kitchen utensils.It is headquartered in Jakarta and has an international presence.Its production sites and sales locations are situated in Europe,Asia,and Australia.The organization is highly decentralized,and region or country managers can tailor their strategies to local market conditions and demands.Which of the following approaches is Romano Ware using?

A) supply chain
B) region-country focused
C) globally focused
D) transnationally focused

Question 68

________ is the degree to which a situation influences behavior or perception of the appropriateness of behavior.

A) Cultural milieu
B) Cultural context
C) Cultural elasticity
D) Cultural dimensionality

Question 69

A ________ is an organization that invests the primary authority for major strategic decisions in the home office.

A) globally focused
B) region-country focused
C) transnational focus
D) state focused

Question 70

Which of the following is NOT a characteristic of geographically dispersed multicultural teams?

A) Mutual trust is unimportant.
B) They often lack traditional supervision.
C) They must work more autonomously.
D) Coordination between team members is challenging.

Question 71

Which of the following is true for a globally focused organization?

A) Managers can tailor strategies to local market conditions and demands.
B) It allows a subsidiary to react quickly to changes in the marketplace.
C) They attempt to market a relatively standardized product across geographic markets.
D) It strives to be simultaneously centralized and decentralized.

Question 72

________ rely on electronically mediated communication.

A) Ad hoc teams
B) Virtual teams
C) Swift trust teams
D) Cross-functional teams

Question 73

In ________,contextual variables have much less impact on the determination of appropriate behaviors.

A) low-context cultures
B) power distance
C) gender focus
D) collectivism

Question 74

In an organization using transnational focus,________.

A) innovative products are developed in the home country market
B) subsidiaries react quickly to changes in the marketplace
C) strategic decisions are decentralized
D) managers can tailor their strategies to local market conditions and demands

Question 75

Jenson Foods is headquartered in New Jersey and has subsidiaries in many countries across the world.The home office has centralized authority and the international subsidiaries follow the same or a similar strategy in each of their markets.Jenson Foods is following a ________.

A) global focus
B) region-country focus
C) transnational focus
D) state focus

Question 76

MGN is company that manufactures hardware,headquartered in London,UK.The company strives to be simultaneously centralized and decentralized.As such,its goal is to achieve global efficiency while maintaining local market responsiveness.Which approach is the organization following?

A) transnational focus
B) state focus
C) region-country focus
D) global focus

Question 77

Which of the following is true about the cultural context?

A) In high-context cultures, contextual variables have much less impact on the determination of appropriate behaviors.
B) In low-context cultures, people pay close attention to the situation and its various elements.
C) In low-context cultures, the situation may or may not affect what is considered appropriate behavior.
D) In low-context cultures, the context has a significant influence on this judgment.

Question 78

When a company ________ a foreign country,it makes a direct investment to establish a business that it solely owns and controls there.

A) creates a new, wholly-owned subsidiary in
B) enters into a licensing arrangement with
C) exports goods to
D) purchases a local firm to enter

Question 79

In an organization using a region-country focus,________.

A) attempts are made to market a relatively standardized product across geographic markets
B) managers can tailor their strategies to local market conditions and demands
C) the goal is to achieve global efficiency while maintaining local market responsiveness
D) the firm's home office makes major strategic decisions

Question 80

Which of the following is true for organizations that are transnational in nature?

A) These organizations attempt to market a standardized product across geographic markets.
B) Subsidiaries of transnational organizations cannot respond to changes in customers' needs in the local market.
C) This approach can be expensive for the company because it cannot achieve economies of scale.
D) Its goal is to achieve global efficiency while maintaining local market responsiveness.