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IBM110-1C-FinalExam

Total questions: 40

Worksheet time: 41mins

Name
Class
Date
1.

The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ________.

a)

strategic planning

b)

strategic delegation

c)

organizational design

d)

product planning

2.

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.

a)

Competition

b)

Growth

c)

Strategy

d)

Vision

3.

Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain?

a)

customer demands

b)

trade barriers

c)

globalization of competitors

d)

growth opportunities

4.

One pressing reason for many large firms to expand overseas is to seek economies of scale.

a)

True

b)

False

5.

________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level.

a)

Break-even points

b)

Comparative advantages

c)

Absolute advantages

d)

Distinctive competencies

6.

A ________ is an assessment of a firm's capabilities relative to those of its competitors as pertinent to the opportunities and threats in the environment for those firms.

a)

PEST analysis

b)

transactional analysis

c)

SWOT analysis

d)

break-even analysis

7.

Which of the following is the first step in developing a successful export strategy?

a)

identification of a potential market

b)

match market needs to the company's abilities

c)

initiation of meetings

d)

commitment of resources

8.

Core competencies are challenging and at times difficult for competitors to imitate.

a)

True

b)

False

9.

Offshoring is when a company moves one or all of its factories from the host country to the home country.

a)

True

b)

False

10.

________ is the process by which a firm gradually changes in response to global competition; domestic market saturation; and the desire for expansion, new markets, and diversification.

a)

Segmentation

b)

Integration

c)

Segregation

d)

Internationalization

11.

A ________ structure is the ideal way to organize work when global integration is more important than local responsiveness and the industry structure encourages cost leadership.

a)

decentralized

b)

matrix

c)

divisional

d)

functional

12.

Small firms typically start their international involvement by getting involved in exporting.

a)

True

b)

False

13.

Which of the following is the most common form of organizing foreign operations in which divisions are created to cover various regions?

a)

global functional structure

b)

global geographic structure

c)

global product structure

d)

matrix structure

14.

Marketing-oriented companies, such as Nestlé and Unilever, which produce a range of products that can be marketed through similar channels of distribution to similar customers, will usually opt for the ________.

a)

domestic structure plus foreign subsidiary

b)

global geographic structure

c)

matrix structure

d)

domestic structure plus export department

15.

A ________ is a hybrid organization of overlapping responsibilities.

a)

functional structure

b)

divisional structure

c)

product structure

d)

matrix structure

16.

Which of the following refers to focusing on and specializing in specific markets?

a)

integration

b)

implementation

c)

differentiation

d)

globalization

17.

________ refers to an organization running its operations and opening subsidiaries worldwide right from the beginning.

a)

International joint venture

b)

The subordinateship phenomenon

c)

The born-global phenomenon

d)

Outsourcing

18.

________ refers to the ability to manage across national boundaries, retaining local flexibility while achieving global integration.

a)

Positioning

b)

Globalization

c)

Transnational capability

d)

Filtering capability

19.

To be effective, an organizational structure should ________.

a)

not accommodate overlapping responsibilities

b)

be rigid

c)

be highly adaptable to the changing needs of the company

d)

be the same as that of its competitors

20.

Which of the following should ideally dictate the organizational structure and staffing needs of the firm?

a)

the firm's customers

b)

the size of the firm

c)

the firm's strategy

d)

the firm's short-term objectives

21.

________ are employees assigned to a country other than their own.

a)

Host-country nationals

b)

Inpatriates

c)

Third-country nationals

d)

Expatriates

22.

A(n) ________ policy is likely to be used where a company notes the inadequacy of local managerial skills and determines a high need to maintain close communication and coordination with headquarters.

a)

global

b)

regiocentric

c)

polycentric

d)

ethnocentric

23.

________ are familiar with company goals, products, technology, policies, and procedures; they know how to get things accomplished through headquarters.

a)

Expatriates

b)

Parent-country nationals

c)

Third-country nationals

d)

Host-country nationals

24.

________ are familiar with company goals, products, technology, policies, and procedures; they know how to get things accomplished through headquarters.

a)

Expatriates

b)

Parent-country nationals

c)

Third-country nationals

d)

Host-country nationals

25.

In ________, operations outside the home country are managed by individuals from the host country.

a)

vertical integration

b)

horizontal integration

c)

ethnocentric staffing

d)

polycentric staffing

26.

In which of the following staffing approaches, are the best managers recruited from within or outside of the company, regardless of nationality?

a)

geocentric staffing approach

b)

global staffing approach

c)

ethnocentric staffing approach

d)

polycentric staffing approach

27.

A global staffing policy ________.

a)

avoids recruiting third-country nationals

b)

relies primarily on local managers to fill key managerial positions abroad

c)

is overly in favor of filling key managerial positions with people from headquarters

d)

provides a greater pool of qualified and willing applicants from which to choose

28.

Who, among the following, when used to manage subsidiaries, usually brings more cultural flexibility and adaptability to a situation?

a)

parent-country nationals

b)

home-country nationals

c)

managers with minimal global exposure

d)

third-country nationals

29.

Recruiting managers from Latin America for a position in Brazil is an example of ________.

a)

global staffing approach

b)

ethnocentric staffing approach

c)

regiocentric staffing approach

d)

polycentric staffing approach

30.

More recently, a staffing option known as ________ has been utilized to provide a linking pin between the company's headquarters and local host subsidiaries.

a)

expatriates

b)

inpatriates

c)

transpatriates

d)

migrants

31.

Expatriate failure, defined in broad terms, refers to the ________.

a)

manager's premature return home due to poor job performance

b)

manager's miscues, which give competitors a market advantage

c)

unintentional dilution of the company's core competency

d)

poor expatriate selection procedures of the MNE

32.

A state of disorientation and anxiety that results from not knowing how to behave in an unfamiliar culture is called ________.

a)

culture shock

b)

enculturation

c)

cultural contingency

d)

acculturation

33.

Which of the following most likely occurs when a manager is transferred to another part of the country where there are significant cultural differences?

a)

culture shock

b)

subculture shock

c)

expatriation

d)

repatriation

34.

Alienation or lack of support from headquarters is one of the major causes of expatriate failure.

a)

True

b)

False

35.

Effective human resource management of a company's global cadre ends with ________.

a)

allocation of an overseas assignment to the executive

b)

successful repatriation of the executive into company headquarters

c)

preparing the executive for cultural differences

d)

providing foreign-language training to the executive

36.

The psychological process of readapting to one's home culture after working in a host-country culture is called ________.

a)

social loafing

b)

assimilation effect

c)

reverse culture shock

d)

expatriate failure

37.

Which of the following is the primary benefit for a firm that carefully manages its expatriates' careers?

a)

creating global opportunities for junior managers

b)

retaining managers with global experience and skills

c)

maintaining close connections with national subsidiaries

d)

recruiting fresh college graduates for global management positions

38.

) ________ is an acquired skill that refer(s) to making decisions with less information and more uncertainty about the process and the outcome.

a)

Technical skills

b)

Managerial skills

c)

Multiple perspectives

d)

Tolerance for ambiguity

39.

A repatriated manager says, "I learned to understand situations from the viewpoint of local employees and businesspeople when I worked overseas." Which of the following acquired skills is the manager referring to in this instance?

a)

technical skills

b)

multiple perspectives

c)

managerial skills

d)

tolerance for ambiguity

40.

The members of ________ interact through computer-mediated communication systems and are linked together across time, space, and organizational boundaries.

a)

virtual teams

b)

primary groups

c)

local teams

d)

cliques