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MULTIPLE CHOICE:

1. Today’s companies compete in a ____.

a.

growingly domestic economy

b.

low-context culture

c.

high-context culture

d.

Greenfield economy

e.

borderless world

2. In which stage, market potential is limited
to home country, with all production and marketing facilities located at home?

a.

Domestic

b.

International

c.

Global

d.

Multinational

e.

Stateless

3. In the ____ stage a company usually adopts a
multidomestic approach.

a.

Global

b.

Multinational

c.

Stateless

d.

International

e.

Domestic

4. Global Dandelion, with explosion of
international operations stage of developement, is participating at what stage
of globalization in the international arena?

a.

International stage

b.

Global stage

c.

Domestic stage

d.

Multinational stage

e.

Interdomestic stage

5. Quality-cast Telecom with an export-oriented,
multidomestic strategic orientation would be participating in what stage of the
international arena?

a.

Domestic stage

b.

International stage

c.

Multinational stage

d.

Global stage

e.

Binational stage

6. The process of globalization typically passes
through all of the following stages EXCEPT

a.

domestic stage.

b.

global stage.

c.

international stage.

d.

interdomestic stage.

e.

multinational stage.

7. Which of the following refers to engaging in
the international division of labor so as to obtain the cheapest sources of
labor and supplies regardless of country?

a.

Franchising

b.

Licensing

c.

Market entry strategy

d.

Outsourcing

e.

Activity

8. The Maquiladora industry along the
Texas-Mexico border on the Mexico side uses cheap labor for assembling
products. This lowers the price for U.S. consumers and is an example of

a.

licensing.

b.

joint venture.

c.

outsourcing.

d.

franchising.

e.

none of these.

9. Most firms begin with which strategy to enter
foreign markets?

a.

Exporting

b.

Greenfield venture

c.

Joint venture

d.

Acquisition

e.

Direct investment

10. Which of the following is an entry strategy in which the
organization maintains its production facilities within its home country and
transfers its products for sale in foreign markets?

a.

Franchising

b.

Licensing

c.

Exporting

d.

Greenfield venture

e.

Joint venture

11. What is exporting?

a.

Countertrade

b.

The barter of products for products,
often used in developing nations

c.

Items produced in the home country for
sale in foreign markets

d.

All of these

e.

None of these

96

12. A form of exporting to less-developed countries is called

a.

licensing.

b.

franchising.

c.

greenfield venture.

d.

joint venture.

e.

countertrade.

13. As a first step into international business, which two countries
are most companies going to today?

a.

Russia and Japan

b.

Sweden and Germany

c.

China and India

d.

Brazil and Philippines

e.

Indonesia and Brazil

:

14. ____ is the most widespread approach to international involvement
in China and India.

a.

Importing

b.

Exporting

c.

Manufacturing

d.

Outsourcing

e.

Greenfield venture

15. The management of business operations conducted in more than one
country is called

a.

global management.

b.

international management.

c.

outsourcing management.

d.

planning management.

e.

domestic management.

16. ____ aspects of management do not change when doing business
internationally.

a.

Planning

b.

Organizing

c.

Controlling

d.

Leading

e.

All of these

17. Language, values, religion, and education all describe which
dimension in the international environment?

a.

Economic

b.

Legal

c.

Political

d.

Sociocultural

e.

Technological

18. In international operations, the economic environment represents
all of the following factors EXCEPT

a.

infrastructure.

b.

resource and product markets.

c.

laws and regulations.

d.

inflation.

e.

exchange rates.

19. Resource development, infrastructure, and exchange rates all
describe which dimension in the international environment?

a.

Economic

b.

Legal

c.

Political

d.

Sociocultural

e.

Technological

20. In international operations, the economic environment includes

a.

shared knowledge, beliefs and values.

b.

political risks.

c.

social organizations.

d.

infrastructure.

e.

tariffs, quotas, and taxes.

21. Which of the following is a sociocultural factor in the
international environment?

a.

Language

b.

Exchange rates

c.

Tariffs, taxes, and quotas

d.

Per capita income

e.

Infrastructure

22. ____ is normally used to classify countries as developed or
developing.

a.

Exchange rates

b.

Interest rates

c.

Gross national product

d.

Per capita income

e.

Inflation rates

23. ____ generally are located in Asia, Africa and South America.

a.

MNCs

b.

EUs

c.

LDCs

d.

WTOs

e.

MFNs

24. A country’s physical facilities that support economic activities
make up its ____.

a.

resource markets

b.

infrastructure

c.

physical markets

d.

product markets

e.

plants and equipment

25. If you built a computer company in Africa and then found that your
product was having difficulty being distributed to customers because of the
road system, your problem would be related to

a.

an inadequate infrastructure.

b.

an economy incapable of supporting
growth.

c.

a poor resource market.

d.

a poor product market.

e.

none of these.

26. Your grocery store in India is having trouble getting the local
farmers to supply you with the proper produce. This is a problem with India’s

a.

product market.

b.

resource market.

c.

infrastructure.

d.

economy.

e.

power distance.

27. Exchange rates are included in which of the following
international environments?

a.

The legal-political sector

b.

The economic environment

c.

The sociocultural environment

d.

The barter system environment

e.

The government sector

:

28. The legal-political environment, in international operations,
includes which of the following?

a.

Shared knowledge, beliefs and values

b.

Political risks

c.

Social organizations

d.

Infrastructure

e.

None of these

29. Political risk is defined as an organization’s risk of ____ due to
politically based events or actions by host governments.

a.

loss of assets

b.

managerial control

c.

earning power

d.

all of these

e.

managerial control and earning power
only

30. A company’s risk of loss of assets, earning power, or managerial
control due to politically based events or action by host government is
referred to as

a.

MFN.

b.

political risk.

c.

tariffs.

d.

political instability.

e.

terrorism.

31. Rooftop International, Inc. buys insurance against host government
takeover when investing in foreign countries. This is an example of which
sector of the international environment?

a.

Legal-political

b.

Sociocultural

c.

Technological

d.

Economic

e.

Infrastructure

32. Which of the following is NOT a legal-political factor in the
international environment?

a.

Laws and regulations

b.

Language

c.

Tariffs, quotas, taxes

d.

Political risk

e.

Government takeovers

33. A foreign terrorist kidnaps your firm’s marketing VP while the VP
is in the host country. This is a harsh example of

a.

economic development.

b.

infrastructure.

c.

political risk.

d.

international law.

e.

social risk.

34. A nation’s ____ includes the shared knowledge, beliefs and values,
as well as the common modes of behavior and ways of thinking, among members of
a society.

a.

power distance

b.

culture

c.

masculinity

d.

individualism

e.

uncertainty avoidance

35. Cultural factors in foreign countries are ____ the political and
economic factors.

a.

easier than

b.

similar to

c.

more perplexing than

d.

less important than

e.

none of these

36. ____ refers to the degree to which people accept inequality in
power among institutions, organizations, and people.

a.

Power distance

b.

Uncertainty avoidance

c.

Individualism

d.

Collectivism

e.

Masculinity

:

37. Countries whose social values reflect low power distance

a.

are highly democratic.

b.

accept inequality in power among
institutions, organizations, and people.

c.

expect equality in power.

d.

avoid uncertainty.

e.

none of these.

38. A loosely knit social framework in which individuals are expected
to take care of themselves is called

a.

culture.

b.

individualism.

c.

ethnocentrism.

d.

masculinity.

e.

power distance.

39. Collectivist values are represented in the social framework of
which of these?

a.

The United States

b.

Australia

c.

Ecuador

d.

Great Britain

e.

All of these

40. Austria’s cultural preference is for achievement, heroism,
assertiveness, and material success. This would be considered

a.

power distance.

b.

individualism.

c.

masculinity.

d.

ethnocentrism.

e.

collectivism.

41. ____ refers to a value characterized by people’s intolerance for
uncertainty and ambiguity and resulting support for beliefs that promise
certainty and conformity.

a.

Power distance

b.

Uncertainty avoidance

c.

Certainty avoidance

d.

Conformity seekers

e.

None of these

42. Which of these reflects a cultural preference for cooperation,
group decision making, and quality of life?

a.

Individualism

b.

Collectivism

c.

Masculinity

d.

Femininity

e.

Power distance

43. One of Hofstede’s social values that was developed later is

a.

power distance.

b.

uncertainty avoidance.

c.

masculinity.

d.

collectivism.

e.

long-term orientation.

44. Recent research by the GLOBE project has extended ____ research
and offered new insights for managers.

a.

Hofstede’s

b.

Walton’s

c.

Weber’s

d.

Fayol’s

e.

Gilbreth’s

45. All of the following are cultural dimensions as defined by the
GLOBE Project, EXCEPT:

a.

assertiveness

b.

gender differentiation

c.

social collectivism

d.

humane orientation

e.

masculinity

:

46. In countries where women are often in positions of high status,
the Globe Project would describe that culture as high in ____.

a.

assertiveness

b.

uncertainty avoidance

c.

gender differentiation

d.

societal collectivism

e.

performance orientation

47. A country that places emphasis on fairness and values kindness
would be described by the Globe Project as high in ____.

a.

assertiveness

b.

uncertainty avoidance

c.

gender differentiation

d.

humane orientation

e.

societal collectivism

48. According to Spotlight on Skills in Chapter 3, what does the
gesture of scratching one’s head usually mean in Russia?

a.

“You’re crazy.”

b.

“I am listening carefully.”

c.

“I want to get to know you
better.”

d.

“I’m confused or skeptical.”

e.

“No.”

49. According to Spotlight on Skills in Chapter 3, one of the most
universal gestures is:

a.

Arm up, shaking back and forth
(waving)

b.

Scratching your chin (thinking)

c.

A smile (happiness or politeness)

d.

Closing your eyes (boredom)

e.

A pat on the back (congratulations)

50. Which of the following is defined as a culture in which
communication is used to enhance personal relationships?

a.

Interpersonal culture

b.

High-context culture

c.

Power culture

d.

Low-context culture

e.

Family-oriented culture

51. Which of the following countries possesses a high degree of
assertiveness?

a.

Spain

b.

Sweden

c.

Japan

d.

Iceland

e.

Switzerland

52. Which of the following countries possesses a low degree of gender
differentiation?

a.

China

b.

Brazil

c.

Italy

d.

South Korea

e.

Denmark

53. Which of the following countries possesses a high performance
orientation?

a.

Israel

b.

Sweden

c.

Taiwan

d.

Russia

e.

Venezuela

54. Countries that use several languages

a.

are ethnocentric.

b.

are geocentric.

c.

are likely to have high uncertainty
avoidance.

d.

have linguistic pluralism.

e.

are polycentric.

55. In a(n) ____, people use communication primarily to exchange facts
and information.

a.

power culture

b.

informational culture

c.

high-context culture

d.

mid-context culture

e.

low-context culture

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