Week 11 – FTE

Final Exam Questions

Question 1

Using intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is usually associated with

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a. Direct exporting.
b. Licensing.
c. Franchising.
d. Indirect exporting.


Question 2

What dictates the choice of a multinational entry-mode strategy?

a. Strategic competition
b. Strategic reason to be in the market
c. Companies want to achieve economies of scale
d. Companies want to share risks and costs of developing technology


Question 3

The global solution to the global-local dilemma refers to

a. Conducting business similarly around the world.
b. Responding to differences in the global markets in which a company operates.
c. Customization of products to regional but not country differences.
d. None of the above


Question 4

Foreign direct investment

a. Is an entry-mode strategy.
b. Means that a multinational owns, in part or in whole, an operation in another country.
c. Symbolizes the highest rate of internationalization.
d. All of the above


Question 5

Which of the following statements regarding exporting is FALSE?

a. Exporting is the easiest of entry-mode strategies.
b. Because it is the easiest form of going international, exports are not as important to the US economy.
c. Export can be indirect where companies rely on intermediaries to sell overseas.
d. Export can be of the passive form where overseas orders are treated like domestic orders

Question 6

A __________ helps link the organization horizontally.

a. Centralized operations
b. Coordination system
c. Control system
d. Cultural system


Question 7

All of the following statements are true about the functional structure EXCEPT

a. In the functional structure, departments perform separate business functions such as marketing or manufacturing.
b. In small organizations, the functional structure is the least efficient of all structures.
c. The functional structure is the simplest of organizations.
d. Because functional subunits are separated from each other, coordination among the units can be difficult.


Question 8

_________ mean/means that management locates subsidiaries anywhere in the world where they can benefit the company.

a. Dispersed subunits
b. Specialized operations
c. Interdependent relationships
d. None of the above


Question 9

The type of vertical control mechanism most often associated with a profit center is

a. Bureaucratic.
b. Cultural.
c. Output.
d. Decision making.


uestion 10

Equity in a strategic alliance implies

a. Labor skills.
b. Ownership.
c. Domination.
d. None of the above


Question 11

There are several issues to consider in picking a partner for a strategic alliance. One of these is

a. Go for the biggest partner possible because they have the most assets.
b. Seek strategic complementarity.
c. Make sure your partner will be dependent on you and not vice versa.
d. All of the above


Question 12

If strategic alliance partners have different technologies or know-how and they contribute this knowledge equally, they often prefer

a. Dominant management structure.
b. Rotating management structure.
c. Split management structure.
d. Shared management structure.


Question 13

Suggested ways to build and sustain commitment in strategic alliances include

a. Go slowly.
b. Be the dominant partner.
c. Use extensive written documentation.
d. Keep your goals secret so your partner does not get nervous about your intentions.


Question 14

Which of the following statements regarding globalizing through the Internet is not true?

a. A company that globalizes through the Internet must still decide whether to go global or to require localization to national or regional levels.
b. A company that globalizes through the Internet does not have to be concerned with the global-local dilemma.
c. A company that globalizes through the internet must still address the traditional problems of multinational business (i.e., currencies, local laws, infrastructure for delivery).
d. A company that globalizes through the Internet still faces the same challenges that a brick and mortar company faces.


Question 15

Southeast Asian countries represent opportunities for e-commerce growth due to

a. Spanish language websites.
b. Global demand.
c. Internet economy.
d. Membership in ASEAN.

Question 16

According to the text, where is the greatest potential for e-commerce businesses?

a. South America
b. Asia
c. The European Union
d. North America


Question 17

Which of the following strategies is a pure e-business least likely to be concerned with when facing e-commerce challenges?

a. Maintaining rapid decision making, creativity, innovation, and flexibility
b. Developing information and management systems to respond to rapid growth
c. Altering HR programs to suit the different skill requirements of e-commerce employees
d. Attracting and retaining e-commerce-capable talent


Question 18

A new trend is that multinationals are using _______________ to their advantage.

a. Tall hierarchical web structures
b. Tacit knowledge
c. User Generated Content
d. None of the above


Question 19

Companies with a multi-local strategy are most likely to have a

a. A global HRM orientation.
b. A geocentric orientation.
c. Either a ethnocentric or regiocentric HRM orientation.
d. A polycentric HRM orientation.


Question 20

Companies with a global HRM orientation

a. Focus primarily on language training as preparation for expatriate assignments.
b. Use similar pay and benefit packages for all international assignments.
c. Evaluate their managers by headquarters’ country standards.
d. Usually provide significant extra pay for expatriate assignments.



Question 21

Difficulties that managers face in coming back to their home countries and reconnecting with their home organizations is known as the

a. Low home re-adaptation index.
b. Repatriation problem.
c. Expatriation problem.
d. Reverse culture shock.


Question 22

Which of the following is NOT true regarding low training rigor?

a. Low training rigor usually includes briefings concerning company operations.
b. Low training rigor usually includes lectures and videos on the local culture.
c. Low training rigor usually lasts for a short period.
d. Low training usually lasts over two months.


Question 23

Languages in which people state things directly and explicitly where the words provide most of the meaning are

a. Moral languages.
b. High context languages.
c. Low context languages.
d. None of the above


Question 24


a. Is communication through body movements.
b. Is the process by which we interpret the meaning and intent of spoken words or nonverbal exchanges.
c. A form of verbal communication.
d. Focuses on how people use space to communicate.


Question 25

All of the following are true about the Exchanging Information and the First Offer Step of the International Negotiation process EXCEPT

a. Both parties exchange information on their needs for the agreement.
b. Parties exchange information that is task-related.
c. Both sides present offers that often differ from what they hope to achieve eventually.
d. Both sides usually present their final offer.

Question 26

In the _____ stage, each side in the negotiation attempts to get the other side to agree to its position.

a. Building the relationship
b. Exchanging Information and the First Offer
c. Persuasion
d. Concession


Question 27

Telecommuting studies suggest all of the following EXCEPT​

a. ​increases the identity and integration with the company culture.
b. ​provides the employee with more flexibility.
c. ​international  employees will more likely be given this this option.
d. ​A  and B above.


Question 28

In individualistic cultures, performance drops off with the use of teamwork because

a. Of social loafing.
b. Workers believe that the group will make up any slack in their personal efforts.
c. Workers do not feel responsible for group outcomes.
d. All of the above


Question 29

Social loafing

a. Means that everyone’s work is easier in groups.
b. Occurs when people put out less effort when working in groups.
c. Occurs when people prefer to work in groups.
d. Is the social process of sharing.


Question 30

Reactions to a person’s behavior that encourage the person to continue the behavior is

a. Need.
b. Punishment.
c. Reinforcement.
d. Goal-directed behavior.