As entry-mode strategies, direct and indirect exporting have
High levels of control and low levels of risk.
Similar levels of risk and control as FDI.
Low levels of risk and control.
Are among the most risky.
When a firm from another country has an equity (or ownership) position in a separate company, it is engaging in
An international cooperative alliance.
A turnkey operation.
A contract manufacturer.
A company that treats and fills overseas orders like domestic orders is an example of a
Export management company.
Which strategy attempts to balance advantages from three other multinational strategies?
Common customer needs, global sources of raw material, and favorable trade policies all lead to
An increased focus on local markets.
More use of the multidomestic strategy.
More use of the local solution to the global-local dilemma.
A greater likelihood that companies select global strategies.
Selling global products and using similar marketing techniques worldwide is an example of a
The type of vertical control mechanism most often associated with a profit center is
Which of the following is NOT one of the questions asked when designing an organization?
How should work be divided among the organization’s subunits?
How should the work be coordinated among the various subunits?
How should the work of the various subunits be controlled?
How many subunits should the multinational have?
A __________ helps link the organization horizontally.
The type of control system favored by the transnational is
The worldwide product structure is usually considered best to implement a/an _____ strategy.
Multidomestic or regional
The least efficient of the following structural options is
Understanding a new market and developing a new technology may be used as performance criteria for which of the following?
Strategic alliance partners prefer a dominant management structure
If partners have similar technologies or know-how and they contribute this knowledge equally to the alliance.
If partners have different technologies or know-how and they contribute this knowledge equally to the alliance.
If partners have different technologies or know-how and they contribute this knowledge differently to the alliance.
If the alliance has more strategic importance to one partner.
Which of the following type of strategic alliances allows the multinational to combine manufacturing or assembly activities to achieve a profitable volume of activity?
Strategic complementarity in a strategic alliance means that
Both sides must have similar strategic objectives for the strategic alliance to succeed.
Objectives can be different if they are not in conflict.
Cultural differences must be dealt with first.
Parent companies must leave the strategic alliance management to develop their own strategic goals.
An agreement not legally binding between companies to cooperate on any value-chain activity is a (an)
Formal international cooperative alliance.
International joint venture.
Informal international joint venture.
International cooperative alliance.
__________ means that companies rely on each other to contribute to the relationship.
The norm of reciprocity
Which of the following describes the situation where companies stay in a strategic alliance despite strong evidence that the alliance won’t work?
Escalation of commitment
According to the text, the degree of difficulty in conducting global e-commerce businesses is primarily dependent on
The financial requirements.
The availability of management talent.
The infrastructure requirements.
The telecommunications infrastructure requirements.
According to the text, where is the greatest potential for e-commerce businesses?
The European Union
Having systems in place to ensure that collected information is accurate and reliable represents which form of information security?
Southeast Asian countries represent opportunities for e-commerce growth due to
Spanish language websites.
Membership in ASEAN.
According to the text, which of the following is NOT one of the management challenges companies will face as they develop their e-commerce businesses?
Attracting, retaining, and developing employees in the e-commerce unit
Deciding which e-commerce functions to outsource
Finding funds to develop the e-commerce business
Finding ways to provide individuals with growth opportunities and job fulfillment to encourage employee retention in the e-commerce business
An Internet host that allows users to send encrypted data so that those outside the connection cannot see the information is a
A secure server.
An internet host.
A computer that has its own Internet Protocol address.
A computer that has its own World Wide Web address.
MGT 510 Final Exam Part 2
Companies with a global HRM orientation
Usually provide significant extra pay for expatriate assignments.
Evaluate their managers by headquarters’ country standards.
Focus primarily on language training as preparation for expatriate assignments.
Use similar pay and benefit packages for all international assignments.
The main objective of the balance sheet approach to international compensation is
To match home and host county purchasing power.
To make sure you reward international managers for their hardship.
To save costs in inexpensive countries.
To provide headquarters’ accountants with consistent information on salaries.
Companies with a multi-local strategy are most likely to have a
A global HRM orientation.
A polycentric HRM orientation.
Either a ethnocentric or regiocentric HRM orientation.
A geocentric orientation.
Home country nationals are
Expatriate employees who come from the parent’s home country.
Employees who come from a different country where he/she is working.
Expatriate employees which come from the parent’s home country.
Employees from foreign country who work in the country where the host company is located.
International Human Resource Management
Is no different from domestic HRM.
Is the application of HRM to international settings.
Is the orientation to hiring international employees.
Is the selection and compensation of expatriates.
Evidence on training for international assignments suggests
Cross-cultural training reduces expatriate failure rates.
Cross-cultural training makes people feel more comfortable but there are no bottom line effects on performance.
US firms invest the most in this activity.
It only beneficial for long term assignments.
Companies with ethnocentric HRM orientations
Use similar pay and benefit packages worldwide.
Select home country nationals for key positions.
Emphasize extensive training in the company culture before allowing a manager to go international.
Often use international experience as a technical qualification for high level management.
The process by which companies choose people to fill vacant position is
Training and development.
Which of the following represents one possible solution to the “Old Friends” dirty trick?
Ignore the ploy and focus on mutual benefits.
Keep a psychological distance that reflects the true nature of the relationship.
Walk out of negotiations.
Reveal when you plan to leave negotiations.
The sequential approach to concession-making
Is very popular in Asian cultures.
Is similar to the holistic approach.
Implies that concession making begins only after all participants discuss all issues.
Implies that negotiators expect each side to give and take on individual issues in sequence.
Deliberate deception, one example among some common ploys in international negotiations, refers to
Negotiators presenting flagrant untruths either in the facts they present or in their intentions for the negotiation.
Negotiators waiting to the last minute before the international negotiation team plans to go home.
Negotiators making an agreement then reveal that it must be approved by senior managers or the government.
One negotiator acting agreeable and friendly while his or her partner makes outrageous or unreasonable demands.
In competitive negotiation
Negotiators seek out mutually satisfactory ground that is beneficial that allows both companies to win.
Competitive negotiators view the negotiation as a win-win game.
Competitive negotiators use dirty tricks and any plot that leads to their advantage.
Competitive negotiators search for possible win situations where the outcome of the negotiation is mutually satisfactory to both sides.
Is the use of smells as a means of nonverbal communication.
Refers to communication through eye contact or gazing.
Communication through the use of space.
Communication through body contact.
If negotiators are using deliberate deception as a dirty tricks, the best way to deal with the deception is
Not to make any concessions.
To ignore the ploy and focus on the agreement.
To not reveal your negotiation plans.
To point out directly what you believe is happening.
High context languages
Are languages in which people state things directly and explicitly.
Include most northern European languages including German, English, and the Scandinavian languages.
Are languages in which people state things indirectly and implicitly.
Are languages where the words provide most of the meaning.
__________ negotiators search for possible win-win situations where the outcome of the negotiation is mutually satisfactory to both sides.
When applying need theories in a cross-national context, managers should
Ignore the differences in needs between nations and apply the models uniformly.
Take into consideration the particular needs that people seek to satisfy in different countries.
Give the same magnitude of importance to work needs and apply these motivational tools.
Understand work centrality and then provide the same rewards to satisfy needs.
Is the social process of sharing.
Occurs when people prefer to work in groups.
Means that everyone’s work is easier in groups.
Occurs when people put out less effort when working in groups.
The need to maximize personal achievement refers to which type of need in Maslow’s hierarchy of needs
Self esteem needs.
Self actualization needs.
In a cross-national context, expectancy theory prescribes that managers
Should specify the hierarchy of needs of workers.
Identify and eliminate potential sources of inequity at work.
Identify valued outcomes and convince workers that their efforts will lead to these outcomes.
Punish workers for not achieving organizational goals.
Esteem needs refer to
Basic survival needs such as food, water and shelter.
Safety and avoidance of pain and life-threatening situations.
Being loved and having friendship.
Focus on respect and feelings of self-worth.
A manager gives bonuses to high performing foreign employees hoping that they will continue performing at a high level. This manager is using which motivational principle?
Need theories of motivation are based on the assumption that
Motivation is a function of the individual’s beliefs of what happens if one works hard.
Motivation is a result of the outcomes of one’s past behaviors.
Motivation is a function of why people work.
People can satisfy basic human needs in the work setting.
Which types of motivation theories explain motivation arising from satisfaction of needs and values combined with an individual’s beliefs regarding the work environment?
Work centrality theories
Process and reinforcement theories
Work functions theories
Conclusions from the World Values Survey and the European Values Survey on functions of work reveal that
People across the world assign the same degree of importance to work functions.
People across the world rate income as the most important work function.
People from different nations do not assign the same magnitude of importance to work functions.
Workers saw the most important function of work as providing contact with other people.
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