Management Multiple Choice Questions Set

Question 1. Question : A push strategy is emphasized when:

Student Answer: distribution channels are short.

sufficient print and electronic media are available to carry the marketing message.
consumers have a low level of literacy.

the products being sold are consumer goods.

professional services are being offered.

Points Received: 1 of 1
Comments:

Question 2. Question : Which of the following is an argument against standardized advertising?

Student Answer: One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
It fails to make use of local talent available in other cultures.

Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
Royalties make it the most expensive form of advertising.

It increases the costs of value creation.

Points Received: 1 of 1
Comments:

Question 3. Question : Which of the following is a drawback of adopting the euro?

Student Answer: Loss of control over national monetary policy

Increase in the cost of capital

Reduction in the liquidity of capital markets

Reduction of price differentials within the euro zone

Loss of investment options open to both individuals and institutions

Points Received: 1 of 1
Comments:

Question 4. Question : Which of the following principles did the Single European Act propose to apply to product standards?

Student Answer: The principle of "mutual recognition"

The principle of "quid pro quo"

The materiality principle

The principle of "market-to-market"

The elimination principle

Points Received: 1 of 1
Comments:

Question 5. Question : Spring, an American firm, recently acquired another company known as Tazel Inc. in Indonesia. The high-level managers at Tazel Inc. quit because they could not cope with the domineering and straightforward approach of their American counterparts. This illustrates how acquisitions may fail because:

  Student Answer:    managers overestimate their ability to create value from an acquisition.
      integration of operations between the two firms takes longer than forecasted.
       there is a clash between the cultures of the acquired and the acquiring firm.
      an acquiring firm overpays for the assets of an acquired firm.

inadequate pre-acquisition screening has been done.

Points Received: 1 of 1
Comments:

Question 6. Question : Which of the following modes of entry into foreign markets have the advantage of being characterized by low development costs and risks?

Student Answer: Exporting

Licensing

A greenfield investment

A wholly owned subsidiary

A joint venture

Points Received: 0 of 1
Comments:

Question 7. Question : The term _____ refers to cooperative agreements between potential or actual competitors.

Student Answer: tactical union

strategic alliance

political affiliation

economic association

nationalization

Points Received: 1 of 1
Comments:

Question 8. Question : Why do firms pursuing global standardization or transnational strategies tend to prefer establishing wholly owned subsidiaries?

Student Answer: It gives firms sound knowledge of the local markets, culture, and the political environment.
It helps protect competitive advantages based on technology.

       It allows firms to use the profits generated in one market to improve its competitive position in another market.
      It is the most politically accepted mode of entry into foreign markets.
      It has the least costs and risks associated with developing a foreign market.

Points Received: 0 of 1
Comments:

Question 9. Question : Which of the following modes of entry is suitable for service firms where the risk of losing control over the management skills or technological know-how is not much of a concern, and where the firms' valuable asset is their brand name?

Student Answer: Exporting

Franchising

Licensing

Turnkey projects

Cross-licensing

Points Received: 0 of 1
Comments:

Question 10. Question : Which of the following is true of market segmentation?

  Student Answer:    An important market segment in a foreign country always has a parallel in a firm's home country.
      Markets can be segmented only on the basis of geography and demography.
      The structure of market segments is quite similar across various countries.
      Since market segments are similar across various countries, firms can pursue a global marketing strategy without varying the marketing mix.
       For a segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions.

Points Received: 1 of 1
Comments:

Question 11. Question : The Andean Community now operates as a _____.

Student Answer: common market

economic union

customs union

command economy

political union

Points Received: 1 of 1
Comments:

Question 12. Question : The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 13. Question : The European Community became the European Union in 1993 following the ratification of the _____.

Student Answer: Maastricht Treaty

Warsaw Pact

Treaty of Rome

Single European Act

Lisbon Treaty

Points Received: 0 of 1
Comments:

Question 14. Question : In international business, an advantage of being a late entrant in a foreign market is the ability to:

Student Answer: create switching costs that tie customers into products or services.
capture demand by establishing a strong brand name.

      build sales volume and ride down the experience curve before early entrants.
       ride on an early entrant's investments in learning and customer education.
      create a cost advantage over first-movers.

Points Received: 1 of 1
Comments:

Question 15. Question : The amount of value a firm creates is measured by:

  Student Answer:    the difference between the previous year's profitability and the current year's profitability.
      dividing the market price of its products by the price that customers are actually willing to pay.
       the difference between its costs of production and the value that consumers perceive in its products.
      dividing the net profits of the firm by total invested capital.

the sum of the profitability of the last two fiscal years.

Points Received: 1 of 1
Comments:

Question 16. Question : Which of the following statements is true about an international strategy?

  Student Answer:    International strategy typically involves taking products first produced for foreign markets and then customizing them for domestic markets.
       International strategy should be pursued by a firm if it manufactures a product that satisfies local, rather than universal, needs.
       When a firm pursues an international strategy, the head office of the firm retains fairly tight control over marketing and product strategy.
      Firms pursuing the international strategy tend to outsource their development functions such as R&D.
      International strategy should be pursued by a firm only if it faces strong competition in foreign markets.

Points Received: 0 of 1
Comments:

Question 17. Question : In terms of licensing, which of the following is an intangible property?

Student Answer: Infrastructure

Machinery

Leased equipment

Advanced computing systems

Patent

Points Received: 1 of 1
Comments:

Question 18. Question : When a firm's competitive advantage is based on technological competence, a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 19. Question : The most significant impact of the North American Free Trade Agreement has not been to create the background for increased political stability in Mexico.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 20. Question : Which of the following is a major obstacle to the establishment of the Free Trade Area of the Americas?

  Student Answer:    The United States wants its southern neighbors to agree to tougher enforcement of intellectual property rights, which they do not want to embrace.
      Some constituent nations insist on a common currency, an initiative that has not found support among many nations.
      Brazil and Argentina want the United States to open up critical industries such as telecom and airlines.
      The major trading blocks in the region, NAFTA and Mercosur, have opposed its establishment.
      There is no consensus on trade policies between Brazil and Argentina.

Points Received: 1 of 1
Comments:

Question 21. Question : Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?

Student Answer: Political union

Customs union

Common market

Economic union

Political union

Points Received: 1 of 1
Comments:

Question 22. Question : Which of the following is true of the provisions of the North American Free Trade Agreement?

  Student Answer:    It does not allow financial institutions unrestricted access to the Mexican market.
      It abolishes special treatment (protection) given to Mexican energy and railway industries.
      It allows lowering of national environmental standards to lure investment.
       It seeks the removal of most barriers on the cross-border flow of services.
      It does not deal with the protection of intellectual property rights.

Points Received: 1 of 1
Comments:

Question 23. Question : Which of the following is true with regard to an economic union?

  Student Answer:    There are restrictions on immigration, emigration, or cross-border flows of capital among member-countries.
      It entails less economic integration and cooperation than a common market.
       It involves the free flow of products and factors of production among member-countries.
      It is defined as a central political apparatus coordinates the economic, social, and foreign policy of the member states.
      It does not adopt a common external trade policy.

Points Received: 1 of 1
Comments:

Question 24. Question : The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _____ and _____.

Student Answer: quality improvement; product standardization

customer surplus; quality improvements

customer surplus; product standardization

cost reductions; local responsiveness

product standardization; cost reductions

Points Received: 0 of 1
Comments:

Question 25. Question : A(n) _____ is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies.

Student Answer: free trade area

command economy

efficient market

foreign exchange market

location economy

1. Question : In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 2. Question : Which of the following is true of choosing a distribution strategy?

  Student Answer:    The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
      A choice of distribution strategy does not determine which channel the firm will use to reach potential consumers.
      The channel length, the final selling price, and the firm's profit margin are completely independent of each other.
      The longer a distribution channel, the lower the aggregate markup.
      The longer a distribution channel, the lower the price that consumers are charged for the final product.

Points Received: 1 of 1
Comments:

Question 3. Question : Economic theories suggest that free trade and investment is a positive-sum game, in which all participating countries stand to gain.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 4. Question : Large-scale entry allows an international firm to learn about a foreign market while limiting the firm's exposure to that market.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 5. Question : According to Michael Porter, _____ and _____ are the two basic strategies for improving creating value and attaining a competitive advantage in an industry.

Student Answer: differentiation; low-cost

value creation; generalization

one-size-fits-all; zero-sum

comparison; standardization

profitability; strategic fit

Points Received: 0 of 1
Comments:

Question 6. Question : Which of the following is a major obstacle to the establishment of the Free Trade Area of the Americas?

Points Received: 1 of 1
Comments:

Question 7. Question : Which of the following factors limits a firm's ability to use the same marketing message?

Student Answer: Channel exclusivity

Channel quality

Cultural differences

Concentrated retail systems

Fragmented retail systems

Points Received: 0 of 1
Comments:

Question 8. Question : For an international business, which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?

Student Answer: Increase in the attractiveness of location economies

Pressure for localization of production

Requirement of standardization of products or services

Pressure for cost reduction

Decrease in the significance of local responsiveness

Points Received: 0 of 1
Comments:

Question 9. Question : Which of the following is a benefit of adopting the euro?

  Student Answer:    The adoption of a common currency makes it easier to compare prices across Europe.
      The adoption of a common currency makes Europe an optimal currency area.
      The introduction of a common currency increases the range of investment options open only to institutions.
      The introduction of a common currency leads to higher prices which translate into substantial gains for European producers.
      The introduction of a common currency decreases competition because it has become easier for consumers to shop around.

Points Received: 1 of 1
Comments:

Question 10. Question : A(n) _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

Student Answer: command economy

customs union

common market

efficient market

free trade area

Points Received: 0 of 1
Comments:

Question 11. Question : Which of the following is true of market segmentation?

Points Received: 1 of 1
Comments:

Question 12. Question : Pressures for local responsiveness imply that it may not be possible to leverage skills and products associated with a firm's core competencies wholesale from one nation to another.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 13. Question : Which of the following is true of international firms considering foreign expansion?

  Student Answer:    The timing and scale of entry of foreign expansion are minor details in comparison with the choice of foreign market.
      The long-run economic benefits of doing business in a country are solely a function of the country's population size.
       If the firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.
      The costs and risks associated with foreign expansion are higher in economically advanced nations.
      Politically unstable and less developed nations offer favorable benefit-cost-risk trade-off conditions.

Points Received: 0 of 1
Comments:

Question 14. Question : Which of the following is a drawback of adopting the euro?

Student Answer: Loss of control over national monetary policy

Increase in the cost of capital

Reduction in the liquidity of capital markets

Reduction of price differentials within the euro zone

Loss of investment options open to both individuals and institutions

Points Received: 1 of 1
Comments:

Question 15. Question : The Andean Community now operates as a _____.

Student Answer: common market

economic union

customs union

command economy

political union

Points Received: 1 of 1
Comments:

Question 16. Question : Which of the following is an argument against standardized advertising?

Student Answer: One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
It fails to make use of local talent available in other cultures.

Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
Royalties make it the most expensive form of advertising.

It increases the costs of value creation.

Points Received: 1 of 1
Comments:

Question 17. Question : If an international firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 18. Question : Jupiter Systems is a high-tech firm looking to set up operations in a foreign country to profit from its technological know-how which is its core competency. Which of the following modes of entry would be most favorable to the firm if it wants to keep a tight control over its technology?

Student Answer: Wholly owned subsidiary

Joint venture

Franchising

Licensing

Turnkey project

Points Received: 1 of 1
Comments:

Question 19. Question : Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?

Student Answer: Political union

Customs union

Common market

Economic union

Political union

Points Received: 1 of 1
Comments:

Question 20. Question : Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 21. Question : _____ refers to agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.

Student Answer: Regional economic integration

Cross-cultural integration

Zoning agreement

Administrative trade policies

Balance-of-trade equilibrium

Points Received: 1 of 1
Comments:

Question 22. Question : In international marketing, a message that means one thing in one country may mean something quite different in another due to cultural differences.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 23. Question : Which of the following is an element of a firm's marketing mix?

Student Answer: Product attributes

Employee management

Customer service

Population demographics

Domestic competition

Points Received: 1 of 1
Comments:

Question 24. Question : The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 25. Question : In terms of licensing, which of the following is an intangible property?

Student Answer: Infrastructure

Machinery

Leased equipment

Advanced computing systems

Patent

Points Received: 1 of 1

Question : _____ refers to agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.

Student Answer: Regional economic integration

Cross-cultural integration

Zoning agreement

Administrative trade policies

Balance-of-trade equilibrium

Points Received: 1 of 1
Comments:

Question 2. Question : Which of the following is an argument against standardized advertising?

Student Answer: One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
It fails to make use of local talent available in other cultures.

Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
Royalties make it the most expensive form of advertising.

It increases the costs of value creation.

Points Received: 1 of 1
Comments:

Question 3. Question : Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?

Student Answer: Turnkey projects

Joint ventures

Licensing

Exporting

Franchising

Points Received: 1 of 1
Comments:

Question 4. Question : Which of the following is true of choosing a distribution strategy?

Points Received: 1 of 1
Comments:

Question 5. Question : In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 6. Question : The stated aim of the Asia-Pacific Economic Cooperation is to increase multilateral cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 7. Question : In the context of barriers to international communication, _____ refer(s) to the amount of other messages competing for a potential consumer's attention.

Student Answer: alternative signals

source effects

noise

channel effects

country of origin effects

Points Received: 1 of 1
Comments:

Question 8. Question : Which of the following statements is true about an international strategy?

  Student Answer:    International strategy typically involves taking products first produced for foreign markets and then customizing them for domestic markets.
      International strategy should be pursued by a firm if it manufactures a product that satisfies local, rather than universal, needs.
       When a firm pursues an international strategy, the head office of the firm retains fairly tight control over marketing and product strategy.
      Firms pursuing the international strategy tend to outsource their development functions such as R&D.
      International strategy should be pursued by a firm only if it faces strong competition in foreign markets.

Points Received: 1 of 1
Comments:

Question 9. Question : Which of the following is a threat facing the emergence of single markets?

Student Answer: Threat of getting engulfed in a trade war

Increased price competition throughout the European Union

Increase in price differentials across nations

Reduced environmental standards in order to lure investments
Threat of greenfield investments

Points Received: 0 of 1
Comments:

Question 10. Question : Which of the following is true of a product?

  Student Answer:    A product can be viewed as the focal point of a marketing mix.
      A product can be viewed as the center of market segmentation.
       A product can be viewed as a bundle of attributes.

A product can be viewed as a forced need or want.

A product can be viewed as an object that transcends customer behavior.

Points Received: 0 of 1
Comments:

Question 11. Question : Pull strategies tend to be emphasized:

Student Answer: for complex new products

for consumer goods

for industrial goods

when distribution channels are short.

when few print or electronic media are available.

Points Received: 0 of 1
Comments:

Question 12. Question : Which of the following is true of the factors regarding the selection of a foreign market?

  Student Answer:    All nation states in the world hold the same profit potential for a firm contemplating foreign expansion.
       The long-run economic benefits of foreign expansion are a function of factors such as the likely future wealth of consumers.
      Less populous nations have a higher potential for economic growth.
      Politically unstable nations by virtue of their higher potential for growth are the best foreign markets.
      The attractiveness of a country as a potential market for an international business depends only on its geographical location.

Points Received: 1 of 1
Comments:

Question 13. Question : Economic theories suggest that free trade and investment is a positive-sum game, in which all participating countries stand to gain.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 14. Question : Responding to pressures for cost reduction requires a firm to try to lower the costs of value creation.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 15. Question : The most significant impact of the North American Free Trade Agreement has not been to create the background for increased political stability in Mexico.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 16. Question : A push strategy is emphasized when:

Student Answer: distribution channels are short.

sufficient print and electronic media are available to carry the marketing message.
consumers have a low level of literacy.

the products being sold are consumer goods.

professional services are being offered.

Points Received: 0 of 1
Comments:

Question 17. Question : The amount of value a firm creates is measured by:

the sum of the profitability of the last two fiscal years.

Points Received: 1 of 1
Comments:

Question 18. Question : Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Student Answer: Global standardization strategy

Localization strategy

International strategy

Transnational strategy

Nationalization strategy

Points Received: 1 of 1
Comments:

Question 19. Question : Which of the following strategies focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets?

Student Answer: International strategy

Global standardization strategy

Localization strategy

Transnational strategy

Nationalization strategy

Points Received: 1 of 1
Comments:

Question 20. Question : Which of the following principles did the Single European Act propose to apply to product standards?

Student Answer: The principle of "mutual recognition"

The principle of "quid pro quo"

The materiality principle

The principle of "market-to-market"

The elimination principle

Points Received: 1 of 1
Comments:

Question 21. Question : Which of the following is a major obstacle to the establishment of the Free Trade Area of the Americas?

  Student Answer:    The United States wants its southern neighbors to agree to tougher enforcement of intellectual property rights, which they do not want to embrace.
       Some constituent nations insist on a common currency, an initiative that has not found support among many nations.
      Brazil and Argentina want the United States to open up critical industries such as telecom and airlines.
      The major trading blocks in the region, NAFTA and Mercosur, have opposed its establishment.
      There is no consensus on trade policies between Brazil and Argentina.

Points Received: 0 of 1
Comments:

Question 22. Question : The Andean Community now operates as a _____.

Student Answer: common market

economic union

customs union

command economy

political union

Points Received: 1 of 1
Comments:

Question 23. Question : If an international firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 24. Question : The _____ industry is often thought of as one in which global standardization of the marketing mix is the norm.

Student Answer: electronics

retail

pharmaceutical

financial services

heavy machinery

Points Received: 0 of 1
Comments:

Question 25. Question : Which of the following can be used to overcome quality control problems associated with franchising as a mode of entry into foreign markets?

Student Answer: Licensing agreements

Subsidiaries

Turnkey projects

Export licenses

Cross-licensing agreements

Points Received: 0 of 1

Question : Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?

Student Answer: Political union

Customs union

Common market

Economic union

Political union

Points Received: 1 of 1
Comments:

Question 2. Question : A push strategy is emphasized when:

Student Answer: distribution channels are short.

sufficient print and electronic media are available to carry the marketing message.
consumers have a low level of literacy.

the products being sold are consumer goods.

professional services are being offered.

Points Received: 1 of 1
Comments:

Question 3. Question : Which of the following is an important attribute for a product development team to function effectively and meet all of its development milestones?

  Student Answer:    It should be led by a "heavyweight" project manager who has high status within the organization.
      The team members should always be physically in diverse locations in order to cover multiple bases.
       It should have preset processes for communication and conflict resolution that are developed by top management.
      It should have at least three members from each key function included.
      Its team members should be a part of more than two cross-functional teams.

Points Received: 0 of 1
Comments:

Question 4. Question : The Andean Community now operates as a _____.

Student Answer: common market

economic union

customs union

command economy

political union

Points Received: 1 of 1
Comments:

Question 5. Question : A(n) _____ is defined as a group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies.

Student Answer: free trade area

command economy

efficient market

foreign exchange market

location economy

Points Received: 0 of 1
Comments:

Question 6. Question : Which of the following is a threat facing the emergence of single markets?

Student Answer: Threat of getting engulfed in a trade war

Increased price competition throughout the European Union

Increase in price differentials across nations

Reduced environmental standards in order to lure investments
Threat of greenfield investments

Points Received: 1 of 1
Comments:

Question 7. Question : Which of the following terms best represents the norms and value systems that are shared among the employees of an organization?

Student Answer: Process scenario

Organizational structure

Business structure

Organizational culture

Management structure

Points Received: 1 of 1
Comments:

Question 8. Question : Which of the following is true of international firms considering foreign expansion?

Points Received: 1 of 1
Comments:

Question 9. Question : The European Community became the European Union in 1993 following the ratification of the _____.

Student Answer: Maastricht Treaty

Warsaw Pact

Treaty of Rome

Single European Act

Lisbon Treaty

Points Received: 1 of 1
Comments:

Question 10. Question : In theory, the World Trade Organization rules should ensure that a free trade agreement results in trade diversion.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 11. Question : The emphasis of the European Free Trade Association has been on free trade in consumer goods.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 12. Question : An international firm that enters into a turnkey deal has a long-term interest in the foreign country.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 13. Question : Which of the following is the aim of the Central America Free Trade Agreement?

  Student Answer:    Lowering of trade barriers between the United States and the Central American Common Market countries
      Elimination of trade barriers between the CARICOM and Central American Common Market countries
      Reduction of trade barriers between Caribbean Single Market and Economy nations and Central American Common Market countries
      Introduction of a common currency for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua
       Reductions in tariffs and quotas between Costa Rica, Dominican Republic, and Nicaragua

Points Received: 0 of 1
Comments:

Question 14. Question : Successful global expansion requires the transfer of core competencies to foreign markets where indigenous competitors lack them.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 15. Question : Which of the following is a disadvantage of greenfield ventures as a mode of entering foreign markets?

  Student Answer:    Greenfield ventures have a higher potential for throwing up unpleasant surprises.
      It is much more difficult to build an organizational culture from scratch than to change the culture of an existing unit.
      Companies find it difficult to avoid the hubris hypothesis of acquisitions.
       There is a possibility of being preempted by aggressive global competitors who enter via acquisitions.
      A firm does not have the freedom to build the kind of subsidiary that it wants.

Points Received: 1 of 1
Comments:

Question 16. Question : Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?

Student Answer: Turnkey projects

Joint ventures

Licensing

Exporting

Franchising

Points Received: 1 of 1
Comments:

Question 17. Question : In international marketing, a message that means one thing in one country may mean something quite different in another due to cultural differences.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 18. Question : According to Michael Porter, _____ and _____ are the two basic strategies for improving creating value and attaining a competitive advantage in an industry.

Student Answer: differentiation; low-cost

value creation; generalization

one-size-fits-all; zero-sum

comparison; standardization

profitability; strategic fit

Points Received: 1 of 1
Comments:

Question 19. Question : Which of the following is an advantage of acquisitions as a means of entry into foreign markets?

Student Answer: When a firm makes an acquisition, it buys a set of assets that are producing a known revenue.
Acquiring firms underpay for the assets of the acquired firm.

      After an acquisition, many acquired companies face a rise in recruitments.
      Integrating the operations of the acquired and acquiring entities often takes a short period of time.
      Most acquisitions succeed due to detailed pre-acquisition screening.

Points Received: 1 of 1
Comments:

Question 20. Question : The amount of value a firm creates is measured by:

the sum of the profitability of the last two fiscal years.

Points Received: 1 of 1
Comments:

Question 21. Question : Which of the following strategies is most likely to be pursued by a firm when there are strong pressures for cost reductions and demands for local responsiveness are minimal?

Student Answer: Domestic strategy

Global standardization strategy

International strategy

Transnational strategy

Nationalization strategy

Points Received: 1 of 1
Comments:

Question 22. Question : Which of the following is an argument against standardized advertising?

Student Answer: One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
It fails to make use of local talent available in other cultures.

Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
Royalties make it the most expensive form of advertising.

It increases the costs of value creation.

Points Received: 1 of 1
Comments:

Question 23. Question : The term _____ refers to cooperative agreements between potential or actual competitors.

Student Answer: tactical union

strategic alliance

political affiliation

economic association

nationalization

Points Received: 1 of 1
Comments:

Question 24. Question : The two phenomena that help explain the experience curve are:

Student Answer: learning effects and economies of scale.

technology inputs and wealth transfer.

leveraging subsidiary and local responsiveness.

standardized manufacturing and global web.

efficiency frontier and location economies

Points Received: 1 of 1
Comments:

Question 25. Question : Which of the following is true of choosing a distribution strategy?

Points Received: 1 of 1
Comments:

Grading Summary
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. Date Taken: 1/5/2015
Time Spent: 24 min , 56 secs
Points Received: 24 / 25 (96%)

Question Type: # Of Questions: # Correct:
True/False 6 6
Multiple Choice 19 18

Grade Details - All Questions
Page: 1 2

Question 1. Question : In terms of licensing, which of the following is an intangible property?

Student Answer: Infrastructure

Machinery

Leased equipment

Advanced computing systems

Patent

Points Received: 1 of 1
Comments:

Question 2. Question : When a firm's competitive advantage is based on technological competence, a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 3. Question : _____ refers to the pact among Argentina, Brazil, Paraguay, and Uruguay that originated in 1988 to establish a free trade area.

Student Answer: ASEAN

NAFTA

Mercosur

CARICOM

CAFTA

Points Received: 1 of 1
Comments:

Question 4. Question : Which of the following is true of price discrimination as a part of international pricing strategy?

  Student Answer:    The more competitors there are, the lesser consumers' bargaining power will be.
      The more competitors there are, the less likely consumers will be to buy from the firm that charges the lowest price.
       A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense.
      Many competitors cause low elasticity of demand.

If a firm raises its prices above those of its competitors, consumers will refuse to switch to the competitors' products.

Points Received: 1 of 1
Comments:

Question 5. Question : Why do firms pursuing global standardization or transnational strategies tend to prefer establishing wholly owned subsidiaries?

  Student Answer:    It gives firms sound knowledge of the local markets, culture, and the political environment.
      It helps protect competitive advantages based on technology.
       It allows firms to use the profits generated in one market to improve its competitive position in another market.
       It is the most politically accepted mode of entry into foreign markets.
      It has the least costs and risks associated with developing a foreign market.

Points Received: 0 of 1
Comments:

Question 6. Question : In theory, the World Trade Organization rules should ensure that a free trade agreement results in trade diversion.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 7. Question : Successful global expansion requires the transfer of core competencies to foreign markets where indigenous competitors lack them.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 8. Question : According to Michael Porter, _____ and _____ are the two basic strategies for improving creating value and attaining a competitive advantage in an industry.

Student Answer: differentiation; low-cost

value creation; generalization

one-size-fits-all; zero-sum

comparison; standardization

profitability; strategic fit

Points Received: 1 of 1
Comments:

Question 9. Question : The term _____ refers to cooperative agreements between potential or actual competitors.

Student Answer: tactical union

strategic alliance

political affiliation

economic association

nationalization

Points Received: 1 of 1
Comments:

Question 10. Question : Which of the following is the aim of the Central America Free Trade Agreement?

  Student Answer:    Lowering of trade barriers between the United States and the Central American Common Market countries
      Elimination of trade barriers between the CARICOM and Central American Common Market countries
      Reduction of trade barriers between Caribbean Single Market and Economy nations and Central American Common Market countries
      Introduction of a common currency for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua
      Reductions in tariffs and quotas between Costa Rica, Dominican Republic, and Nicaragua

Points Received: 1 of 1
Comments:

Question 11. Question : The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _____ and _____.

Student Answer: quality improvement; product standardization

customer surplus; quality improvements

customer surplus; product standardization

cost reductions; local responsiveness

product standardization; cost reductions

Points Received: 1 of 1
Comments:

Question 12. Question : Three countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following levels of economic integration best describes this arrangement?

Student Answer: Political union

Customs union

Common market

Economic union

Political union

Points Received: 1 of 1
Comments:

Question 13. Question : The most significant impact of the North American Free Trade Agreement has not been to create the background for increased political stability in Mexico.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 14. Question : In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 15. Question : Which of the following is true of international firms considering foreign expansion?

Points Received: 1 of 1
Comments:

Question 16. Question : Which of the following strategies focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets?

Student Answer: International strategy

Global standardization strategy

Localization strategy

Transnational strategy

Nationalization strategy

Points Received: 1 of 1
Comments:

Question 17. Question : The value creation activities of a firm are categorized as _____ and _____.

Student Answer: primary activities; support activities

strategic activities; functional activities

ancillary functions; tertiary functions

primary activities; core activities

goal-oriented activities; organizational activities

Points Received: 1 of 1
Comments:

Question 18. Question : Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 19. Question : Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Student Answer: Global standardization strategy

Localization strategy

International strategy

Transnational strategy

Nationalization strategy

Points Received: 1 of 1
Comments:

Question 20. Question : A push strategy is emphasized when:

Student Answer: distribution channels are short.

sufficient print and electronic media are available to carry the marketing message.
consumers have a low level of literacy.

the products being sold are consumer goods.

professional services are being offered.

Points Received: 1 of 1
Comments:

Question 21. Question : Which of the following is true of the provisions of the North American Free Trade Agreement?

Points Received: 1 of 1
Comments:

Question 22. Question : Which of the following is true with regard to an economic union?

Points Received: 1 of 1
Comments:

Question 23. Question : Which of the following is true of a product?

A product can be viewed as a forced need or want.

A product can be viewed as an object that transcends customer behavior.

Points Received: 1 of 1
Comments:

Question 24. Question : Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?

Student Answer: Turnkey projects

Joint ventures

Licensing

Exporting

Franchising

Points Received: 1 of 1
Comments:

Question 25. Question : For an international business, which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?

Student Answer: Increase in the attractiveness of location economies

Pressure for localization of production

Requirement of standardization of products or services

Pressure for cost reduction

Decrease in the significance of local responsiveness

Points Received: 1 of 1
Comments:

Page: 1 2

* Times are displayed in (GMT-05:00) Eastern Time (US & Canada)

1. Question : Firms that pursue a localization strategy try to create value by:

Student Answer: emphasizing local responsiveness.

encouraging a global staffing approach.

emphasizing transnational strategies.

building an informal management network.

transferring products and competencies overseas.

Points Received: 0 of 1
Comments:

Question 2. Question : _____ refers to a strategy that is concerned with the selection of employees for particular jobs.

Student Answer: Compensation policy

Staffing policy

Performance appraisal policy

Training policy

Management development policy

Points Received: 1 of 1
Comments:

Question 3. Question : From a strategic perspective, the key issue in international labor relations is:

Student Answer: dealing with multiple business units.

       the degree to which organized labor can limit the choices of an international business.
      whether to hire parent-country nationals, host-country nationals, or third-country nationals.
      helping expatriates cope with new role demands.

the extent to which a reciprocal tax treaty can be brought into effect.

Points Received: 1 of 1
Comments:

Question 4. Question : International businesses pursuing a(n) _____ strategy are increasingly using management development as a strategic tool as they need a strong unifying corporate culture and informal management networks to assist in coordination and control.

Student Answer: localization

international

transnational

global standardization

ethnocentric

Points Received: 1 of 1
Comments:

Question 5. Question : Broadly speaking, a(n) _____ staffing approach is compatible with an international strategy.

Student Answer: ethnocentric

geocentric

polycentric

transnational

ethical

Points Received: 1 of 1
Comments:

Question 6. Question : Megan, a U.S. citizen, is the operations manager at the Middle East office of HS Constructions Inc., an American firm. In this situation, she is an example of a(n) _____ manager.

Student Answer: immigrant

host-country

inpatriate

expatriate

virtual

Points Received: 1 of 1
Comments:

Question 7. Question : During performance appraisals, two groups evaluate the performance of expatriate managers-host-nation managers and home-office managers. This is aimed at avoiding the problem of _____.

Student Answer: cultural conflict

unintentional bias

operational errors

central tendency

culture shock

Points Received: 0 of 1
Comments:

Question 8. Question : A concern of organized labor is that an international business keeps highly skilled tasks in its home country and farm out low-skilled tasks to foreign plants.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 9. Question : Which of the following is an advantage of adopting a polycentric staffing approach?

  Student Answer:    It is less expensive to implement as compared to other staffing approaches.
      It gives host-country nationals unlimited opportunities to gain experience outside their own country.
      It increases career mobility.

It increases interaction between the headquarters of a firm and its foreign subsidiaries.
It bridges the gap between host-country managers and parent-country managers.

Points Received: 1 of 1
Comments:

Question 10. Question : Transnational firm managers need not be able to detect pressures for local responsiveness because it is not part of their skill set.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 11. Question : Organizational architecture refers to an organization's norms and value systems.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 12. Question : If a firm tries to create value by transferring core competencies to a foreign operation and, therefore, transfers parent-country nationals who have knowledge of that competency to the foreign operation, it pursues a(n) _____ staffing policy.

Student Answer: ethnocentric

polycentric

geocentric

eurocentric

transnational

Points Received: 1 of 1
Comments:

Question 13. Question : In international businesses, a geocentric staffing policy is one in which all key management positions are filled by parent-country nationals.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 14. Question : It is important that the spouse of an expatriate manager, and perhaps the whole family, be included in cultural training programs.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 15. Question : A firm's failure to understand host-country cultural differences that require different approaches to marketing and management is referred to as _____.

Student Answer: cultural parity

cultural myopia

power distance

cultural toughness

cultural polarization

Points Received: 1 of 1
Comments:

Question 16. Question : Which of the following steps is true of bias in performance evaluations?

  Student Answer:    More weight should be given to an off-site manager's appraisal than an on-site manager's appraisal.
      Cultural bias increases when the on-site manager is of the same nationality as the expatriate.
      Home-office managers should write performance evaluations without consulting on-site managers to avoid bias.
       Due to proximity, an on-site manager is more likely to evaluate the soft variables that are important aspects of an expatriate's performance.
      A performance appraisal is invalid when the on-site manager is of the same nationality as the expatriate manager.

Points Received: 1 of 1
Comments:

Question 17. Question : Unless a host country has a reciprocal tax treaty with the expatriate's home country, an expatriate must pay income tax to both the home- and host-country governments.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 18. Question : An expatriate manager refers to:

Student Answer: a citizen of one country who is working abroad in one of the firm's subsidiaries.
a parent-country national who works in the parent country.

a host-country national who works in the host country.

any person who lives in a foreign country.

a person willing to work in different departments of a foreign firm.

Points Received: 1 of 1
Comments:

Question 19. Question : A(n) _____ staffing policy is one in which all key management positions are filled by parent-country nationals.

Student Answer: ethnocentric

global

polycentric

geocentric

transnational

Points Received: 1 of 1
Comments:

Question 20. Question : International firms try to create value by:

Student Answer: transferring products and competencies overseas.

following a local staffing policy.

focusing on local responsiveness.

emphasizing a localization strategy.

adopting an ethnocentric staffing approach.

Points Received: 1 of 1
Comments:

Question 21. Question : Which of the following is the most common approach to expatriate pay which equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home?

Student Answer: Merit approach

Correspondence approach

Balance sheet approach

Parity approach

Perceptual approach

Points Received: 0 of 1
Comments:

Question 22. Question : An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 23. Question : In international businesses, firms pursue a polycentric staffing policy because they see it as the best way to maintain a unified corporate culture.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 24. Question : A polycentric staffing approach is effective for firms pursuing a(n) _____ strategy.

Student Answer: international

localization

global

transnational

regional

Points Received: 1 of 1
Comments:

Question 25. Question : The _____ function of an international business is typically responsible for international labor relations.

Student Answer: public relations

human resource management

finance and accounting

legal

logistics

Points Received: 1 of 1
Comments:

Question 1. Question : According to R. L. Tung's study, which of the following is the most important reason for expatriate failures for U.S. multinationals?

Student Answer: Inability of the spouse to adjust

Difficulties with the new environment

Insufficient pay

Personal or emotional problems

Lack of technical competence

Points Received: 1 of 1
Comments:

Question 2. Question : What is the advantage of a geocentric staffing policy?

  Student Answer:    It requires firms to provide little or no documentation to hire a foreign national.
       It enables firms to build a cadre of international executives who feel at home working in a number of cultures.
      It is inexpensive to implement the policy in a firm.

It allows all key management positions of the firms and their subsidiaries to be filled by parent-country nationals.
It helps firms to follow a localization strategy.

Points Received: 0 of 1
Comments:

Question 3. Question : If a firm tries to create value by transferring core competencies to a foreign operation and, therefore, transfers parent-country nationals who have knowledge of that competency to the foreign operation, it pursues a(n) _____ staffing policy.

Student Answer: ethnocentric

polycentric

geocentric

eurocentric

transnational

Points Received: 1 of 1
Comments:

Question 4. Question : A firm's failure to understand host-country cultural differences that require different approaches to marketing and management is referred to as _____.

Student Answer: cultural parity

cultural myopia

power distance

cultural toughness

cultural polarization

Points Received: 1 of 1
Comments:

Question 5. Question : Organizational architecture refers to an organization's norms and value systems.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 6. Question : International firms try to create value by:

Student Answer: transferring products and competencies overseas.

following a local staffing policy.

focusing on local responsiveness.

emphasizing a localization strategy.

adopting an ethnocentric staffing approach.

Points Received: 1 of 1
Comments:

Question 7. Question : Organized labor responds to the increased bargaining power of multinational corporations by:

  Student Answer:    trying to impose regulations on multinationals through organizations such as GATT.
       trying to achieve international regulations on multinationals through the United Nations.
      trying to establish regional boards.

lobbying for multinational corporations to restrict their global reach to three or fewer foreign countries.
trying to develop a local trade forum.

Points Received: 1 of 1
Comments:

Question 8. Question : According to Mendenhall and Oddou, what is the major problem in the selection of appropriate candidates for overseas assignments in many firms?

Student Answer: Lack of technical abilities

       Equating domestic performance with overseas performance potential
      Lack of communication between line managers and HR managers
      A geocentric staffing policy

A polycentric staffing policy

Points Received: 1 of 1
Comments:

Question 9. Question : The _____ function of an international business is typically responsible for international labor relations.

Student Answer: public relations

human resource management

finance and accounting

legal

logistics

Points Received: 1 of 1
Comments:

Question 10. Question : With regard to the types of allowances often included in an expatriate's compensation package, a(n) _____ allowance is paid when the expatriate is being sent to a difficult location.

Student Answer: education

housing

hardship

cost-of-living

reciprocal

Points Received: 1 of 1
Comments:

Question 11. Question : The norms and value systems of an organization constitute its _____.

Student Answer: corporate social responsibility

cultural toughness

cultural sensitivity

corporate culture

perceptual ability

Points Received: 0 of 1
Comments:

Question 12. Question : A(n) _____ staffing policy is one in which all key management positions are filled by parent-country nationals.

Student Answer: ethnocentric

global

polycentric

geocentric

transnational

Points Received: 1 of 1
Comments:

Question 13. Question : Which of the following strategies is compatible with a geocentric staffing policy?

Student Answer: Global standardization strategy

Localization strategy

International strategy

Ethical strategy

Global strategy

Points Received: 0 of 1
Comments:

Question 14. Question : During performance appraisals, two groups evaluate the performance of expatriate managers-host-nation managers and home-office managers. This is aimed at avoiding the problem of _____.

Student Answer: cultural conflict

unintentional bias

operational errors

central tendency

culture shock

Points Received: 1 of 1
Comments:

Question 15. Question : Repatriation refers to:

Student Answer: sending expatriate managers to a new host country.

      training expatriate managers to adjust to the new environment of the host country.
       reentry of expatriate managers into their home-country organization.
      helping expatriate managers build rapport with local employees.
      the process of increasing expatriate managers' effectiveness in dealing with host-country nationals.

Points Received: 1 of 1
Comments:

Question 16. Question : According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, which of the following is a result of the attribute of others-orientation?

Student Answer: The expatriate has high self-esteem.

The expatriate empathizes with the host-country nationals.

       The expatriate speaks to the host-country nationals in the local language.
      The expatriate adjusts to the inhospitable climate of the host country.
      The expatriate is comfortable working in a male-dominated environment.

Points Received: 1 of 1
Comments:

Question 17. Question : An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 18. Question : Transnational firm managers need not be able to detect pressures for local responsiveness because it is not part of their skill set.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 19. Question : Unless a host country has a reciprocal tax treaty with the expatriate's home country, an expatriate must pay income tax to both the home- and host-country governments.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 20. Question : A(n) _____ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality.

Student Answer: global

ethnocentric

geocentric

polycentric

transnational

Points Received: 1 of 1
Comments:

Question 21. Question : Broadly speaking, a(n) _____ staffing approach is compatible with an international strategy.

Student Answer: ethnocentric

geocentric

polycentric

transnational

ethical

Points Received: 1 of 1
Comments:

Question 22. Question : International businesses pursuing a(n) _____ strategy are increasingly using management development as a strategic tool as they need a strong unifying corporate culture and informal management networks to assist in coordination and control.

Student Answer: localization

international

transnational

global standardization

ethnocentric

Points Received: 1 of 1
Comments:

Question 23. Question : From a strategic perspective, the key issue in international labor relations is:

Student Answer: dealing with multiple business units.

the extent to which a reciprocal tax treaty can be brought into effect.

Points Received: 1 of 1
Comments:

Question 24. Question : A concern of organized labor is that an international business keeps highly skilled tasks in its home country and farm out low-skilled tasks to foreign plants.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 25. Question : A(n) _____ staffing policy requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters.

Student Answer: geocentric

polycentric

ethnocentric

global

transnational

Question : International firms pursuing an ethnocentric staffing policy may be better able to create value from the pursuit of experience curve and location economies than firms pursuing other staffing policies.

Student Answer: True
False

Points Received: 0 of 1
Comments:

1. Question : International firms pursuing an ethnocentric staffing policy may be better able to create value from the pursuit of experience curve and location economies than firms pursuing other staffing policies.

Student Answer: True
False

Points Received: 0 of 1
Comments:

Question 2. Question : In international businesses, firms pursue a polycentric staffing policy because they see it as the best way to maintain a unified corporate culture.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 3. Question : According to Mendenhall and Oddou's dimensions that predict success in a foreign posting, which of the following is a result of the attribute of others-orientation?

Student Answer: The expatriate has high self-esteem.

The expatriate empathizes with the host-country nationals.

Points Received: 1 of 1
Comments:

Question 4. Question : A(n) _____ refers to extra pay the expatriate receives for working outside his or her country of origin.

Student Answer: parity adjustment

special bonus

foreign service premium

expat allowance

benefit

Points Received: 1 of 1
Comments:

Question 5. Question : According to Mendenhall and Oddou, the attribute of _____ provides an expatriate the ability to understand why people of other countries behave the way they do.

Student Answer: cultural toughness

perceptual ability

self-orientation

others-orientation

willingness to communicate

Points Received: 1 of 1
Comments:

Question 6. Question : It is important that the spouse of an expatriate manager, and perhaps the whole family, be included in cultural training programs.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 7. Question : Which of the following is the most common approach to expatriate pay which equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home?

Student Answer: Merit approach

Correspondence approach

Balance sheet approach

Parity approach

Perceptual approach

Points Received: 1 of 1
Comments:

Question 8. Question : The norms and value systems of an organization constitute its _____.

Student Answer: corporate social responsibility

cultural toughness

cultural sensitivity

corporate culture

perceptual ability

Points Received: 1 of 1
Comments:

Question 9. Question : A concern of organized labor is that an international business keeps highly skilled tasks in its home country and farm out low-skilled tasks to foreign plants.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 10. Question : From a strategic perspective, the key issue in international labor relations is:

Student Answer: dealing with multiple business units.

the extent to which a reciprocal tax treaty can be brought into effect.

Points Received: 1 of 1
Comments:

Question 11. Question : A(n) _____ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality.

Student Answer: global

ethnocentric

geocentric

polycentric

transnational

Points Received: 1 of 1
Comments:

Question 12. Question : In international businesses, a geocentric staffing policy is one in which all key management positions are filled by parent-country nationals.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 13. Question : A(n) _____ staffing policy is one in which all key management positions are filled by parent-country nationals.

Student Answer: ethnocentric

global

polycentric

geocentric

transnational

Points Received: 1 of 1
Comments:

Question 14. Question : Which of the following steps is true of bias in performance evaluations?

Points Received: 1 of 1
Comments:

Question 15. Question : Historically, most international businesses have been more concerned with management development than with training.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 16. Question : With regard to the types of allowances often included in an expatriate's compensation package, a(n) _____ allowance is paid when the expatriate is being sent to a difficult location.

Student Answer: education

housing

hardship

cost-of-living

reciprocal

Points Received: 1 of 1
Comments:

Question 17. Question : Organizational architecture refers to an organization's norms and value systems.

Student Answer: True
False

Points Received: 1 of 1
Comments:

Question 18. Question : During performance appraisals, two groups evaluate the performance of expatriate managers-host-nation managers and home-office managers. This is aimed at avoiding the problem of _____.

Student Answer: cultural conflict

unintentional bias

operational errors

central tendency

culture shock

Points Received: 1 of 1
Comments:

Question 19. Question : Which of the following is an advantage of adopting a polycentric staffing approach?

It increases interaction between the headquarters of a firm and its foreign subsidiaries.
It bridges the gap between host-country managers and parent-country managers.

Points Received: 1 of 1
Comments:

Question 20. Question : The _____ function of an international business is typically responsible for international labor relations.

Student Answer: public relations

human resource management

finance and accounting

legal

logistics

Points Received: 1 of 1
Comments:

Question 21. Question : A polycentric staffing approach is effective for firms pursuing a(n) _____ strategy.

Student Answer: international

localization

global

transnational

regional

Points Received: 1 of 1
Comments:

Question 22. Question : What is the advantage of a geocentric staffing policy?

It allows all key management positions of the firms and their subsidiaries to be filled by parent-country nationals.
It helps firms to follow a localization strategy.

Points Received: 1 of 1
Comments:

Question 23. Question : If a firm tries to create value by transferring core competencies to a foreign operation and, therefore, transfers parent-country nationals who have knowledge of that competency to the foreign operation, it pursues a(n) _____ staffing policy.

Student Answer: ethnocentric

polycentric

geocentric

eurocentric

transnational

Points Received: 1 of 1
Comments:

Question 24. Question : Which of the following strategies is compatible with a geocentric staffing policy?

Student Answer: Global standardization strategy

Localization strategy

International strategy

Ethical strategy

Global strategy

Points Received: 1 of 1
Comments:

Question 25. Question : Unless a host country has a reciprocal tax treaty with the expatriate's home country, an expatriate must pay income tax to both the home- and host-country governments.

Student Answer: True
False

Points Received: 1 of 1

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