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Homework answers / question archive / 1) Increasing globalization has dramatically changed the competitive landscape for everyone in recent years
1) Increasing globalization has dramatically changed the competitive landscape for everyone in recent years.
2) The two major aspects of a country's environment are its heritage and culture.
3) A country's institutional environment consists of its rules, policies, and enforcement processes.
4) The institutional environment of a country has little effect on the individuals and organizations that operate within it.
5) The Sarbanes-Oxley Act was enacted by the United States to enforce tariffs and quotas on goods imported from China.
6) If a country's laws related to intellectual property rights are weak, then firms with valuable technologies will be reluctant to bring them into that country.
7) Societal culture can dramatically influence how people observe and interpret the business world around them.
8) Power distance is the extent to which people accept power and authority differences among people.
9) Citizens in nations high in uncertainty avoidance prefer to have fewer rules and tend to be more comfortable in ambiguous situations.
10) Individualism can be defined as the extent to which a person's identity is a function of the groups to which he or she belongs.
11) People from countries with high collective orientations tend to exhibit emotional dependence on the organizations and institutions to which they belong.
12) As firms gain more experience operating in international markets, they prefer to enter markets that have institutional environments and cultures similar to their own.
13) The most common way of entering international markets is via strategic alliances.
14) By forming a strategic alliance, two firms agree to share resources to accomplish a mutually desirable goal.
15) In a globally focused organization, strategic decisions are made in the branch offices.
16) An organization using a region-country focus is highly decentralized.
17) A transnational organization tries to be simultaneously centralized and decentralized.
18) In low-context cultures, the situation itself may or may not affect what is considered to be appropriate behavior.
19) Managers rarely have to manage multicultural teams within one organization in one location.
20) In virtual teams, members frequently depend on electronically
mediated communications.
21) A global mind-set can allow a manager to influence individuals, groups, and organizations from diverse sociocultural and institutional environments.
22) ________ refers to the flow of goods and services, capital, and knowledge across country borders.
A) Marketing
B) Globalization
C) Repatriation
D) Entrepreneurialism
23) According to Thomas Friedman, the third stage of globalization involves ________.
A) internationalization of countries
B) countries moving into international markets
C) individuals collaborating or competing on a global basis
D) increasing influence of national governments on local economies
24) A country's ________ consists of its rules, policies, and enforcement processes.
A) cultural milieu
B) economic dimension
C) institutional environment
D) socioeconomic landscape
25) Of the following, ________ is a dimension of a country's distinct institutional environment.
A) human behavior
B) societal values
C) economic development
D) power distance
26) Which one of the following economies tends to have a more effective capital market than the rest?
A) emerging
B) developing
C) developed
D) expansive
27) Which of the following is true about the economic development of an institutional environment?
A) Economies that are not highly developed but are growing rapidly are classified as developing economies.
B) Developing economies tend to have more effective capital markets than developed economies.
C) Developed economy countries have rapidly growing economies.
D) Developed economies tend to be larger than less-developed or emerging economies.
28) When the laws of a country related to enforcement of ________ are weak, firms with valuable technologies are reluctant to bring them into the country.
A) currency exchange rates
B) intellectual property rights
C) infrastructure dimensions
D) environmental protection
29) Which of the following is a dimension of the country's physical infrastructure?
A) welfare of the citizens
B) production of raw materials
C) number of airports
D) political stability
30) Rooney, Inc. is a company that manufactures sugar. It is based in South Africa. The company follows the just-in-time approach in which it does not believe in stocking raw materials and maintaining an inventory, but instead relies on a strong supply chain to deliver materials in time. As a part of recent business development plans, the company decided to begin importing raw materials from Borneo. Which of the following, if true, would force the company to question its reliability on the JIT approach?
A) Regulations in Borneo have become stricter.
B) Borneo has recently been classified as an emerging economy.
C) Borneo has yet not relaxed its markets to direct foreign investments.
D) The physical infrastructure in Borneo is weak.
31) Cluster 1 countries largely consist of developing and transition economies that ________.
A) are low on monetary policies
B) have strong physical infrastructures
C) have balanced regulatory controls and political rights
D) are high in regulatory control and low in political rights
32) Cluster 4 countries have the most developed institutional infrastructure, with ________.
A) balanced regulatory control and political rights
B) high regulatory control and low political rights
C) low monetary policy and investment restrictions
D) low regulatory control and low political rights
33) ________ is a learned set of assumptions, values, and beliefs that have been accepted by members of a group and that affect human behavior.
A) Culture
B) History
C) Nationality
D) Ethnicity
34) According to Hofstede, ________ is the extent to which people accept power and authority differences among people.
A) gender focus
B) individualism
C) power distance
D) uncertainty avoidance
35) Which of the following is similar to the given scenario?
A) In a steel mill in Japan, all tasks take place only after careful planning. The managers proceed to make changes step by step. They believe this reduces risks to a minimum.
B) In an accounting firm in Australia, the manager encourages individual thought process. He puts a high value on personal achievement.
C) Employees of an HR consultancy firm in Pakistan make sure everyone is at the table during lunch hour. This practice also helps them discuss alternatives and reach decisions collectively.
D) Players of the Manchester United soccer team revere their manager Sir Alex Ferguson and trust him completely with respect to team tactics and selection.
36) In EduTech, a software company, the views and suggestions of managers are considered unquestionable and employees never go against what has been suggested by the managers. Sole authority rests in the hands of the managers. What is this an example of?
A) uncertainty avoidance
B) power distance
C) individualism
D) gender focus
37) When Maria arrived from Mexico to study in the U.S., she noticed a difference between the students in Mexico and the students in the U.S. The American students felt comfortable asking questions, they were eager to share a thought or an opinion, and in some instances they even contradicted the teacher. Maria comes from a country that has ________.
A) individualism
B) gender focus
C) high power distance
D) uncertainty avoidance
38) Brian, a senior manager in a logistics firm, has a democratic style of leadership. Brian is very approachable, and employees in his department are free to consult with him at any time. The culture in Brian's department is one of ________.
A) low power distance
B) gender focus
C) uncertainty avoidance
D) economic development
39) Which of the following is a dimension of national culture?
A) political stability
B) uncertainty avoidance
C) regulations
D) economic development
40) ________ is when cultures differ in the extent to which they need clarity or can tolerate ambiguity.
A) Collectivism
B) Individualism
C) Power distance
D) Uncertainty avoidance
41) Business meetings in Japan follow elaborate procedure, often take a long time as seemingly little details are scrutinized, and end with all parties signing detailed protocols to leave no room for misunderstandings. This is because Japan ranks high when it comes to ________.
A) personal freedom
B) uncertainty avoidance
C) individualism
D) gender focus
42) Swedish companies usually have a flat and team-oriented structure with few management levels. The result is a simple and direct decision-making process. In Swedish companies, the concept of personal responsibility is paramount. This is because Swedish companies have ________.
A) low power distance
B) high uncertainty avoidance
C) gender focus
D) collectivism
43) ________ is the extent to which people's identities are self-oriented and people are expected to take care of themselves and their immediate families.
A) Individualism
B) Power distance
C) Collectivism
D) Uncertainty avoidance
44) As a teacher in a primary school in Scottsdale, Arizona, Ruth likes to make decisions that are independent of the school organization. She is dedicated to inculcating the habit of making choices in her students and places a high reward on personal achievement. This is an example of ________.
A) uncertainty avoidance
B) power distance
C) collectivism
D) individualism
45) People who live in countries that score high on individual orientations tend to ________.
A) value collective decisions
B) emphasize group membership
C) emphasize and reward individual achievement
D) exhibit emotional dependence on organizations
46) ________ is the extent to which a person's identity is a function of the group(s) to which he or she belongs and the extent to which group members are expected to look after each other.
A) Individualism
B) Collectivism
C) Power distance
D) Uncertainty avoidance
47) In a steel mill in Japan, all tasks take place only after careful planning. The employees rely on the rules, laws, and regulations set by the authorities. They proceed to make changes step by step. The managers of the mill believe this reduces risks to a minimum. This is an example of ________.
A) collectivism
B) individualism
C) uncertainty avoidance
D) group membership
48) Which of the following is a characteristic of collectivism?
A) high emotional independence
B) value for individual decisions
C) emphasis on individual achievement
D) group membership
49) Ruth belongs to a community where members have a strong feeling of involvement in each other's lives, as well as a strong feeling of loyalty and responsibility to their community. This community is an example of?
A) avoidance
B) power distance
C) collectivism
D) gender focus
50) Countries emphasizing masculine traits value ________.
A) activities that encourage forgiveness
B) activities that lead to success
C) activities that show caring for others
D) activities that enhance quality of life
51) Countries emphasizing feminine traits value ________.
A) activities that lead to success
B) activities that lead to money
C) activities that lead to possessions
D) activities that enhance quality of life
52) Which of the following is true for the dimensions of national culture?
A) Power distance is a measure of the extent to which a group has power and status differences.
B) Citizens in nations high in uncertainty avoidance prefer to have fewer rules.
C) Countries emphasizing masculine traits value activities that lead to success, money, and possessions.
D) Individualism is the extent to which a person's identity is a function of the group(s) to which the person belongs.
53) ________ involves manufacturing products in a firm's home country and shipping them to a foreign market.
A) Importing
B) Exporting
C) Outsourcing
D) Strategic marketing
54) For smaller firms and for firms entering into foreign markets, ________ is the most common way to enter an international market.
A) licensing arrangements
B) exporting goods
C) creating strategic alliances
D) cross-border acquisition
55) Which of the following is true about exporting goods?
A) Exporting is not a popular entry strategy because of its high risks and capital requirements.
B) Exporting requires establishing operations in the country and a large capital investment.
C) An export strategy most likely provides big returns because of shared costs with local firms.
D) An exporting firm must establish a means of marketing and distributing its goods within the country.
56) A foreign company can enter a new market via ________ agreements that allow a local firm in the new market to manufacture and distribute the foreign company's product.
A) exporting
B) importing
C) licensing
D) marketing
57) Refer to the scenario above. Which of the following best supports the firm's decision to use licensing as a strategy to enter the Chinese market?
A) Even though the company is experiencing profits, it cannot afford to take risks while investing in a foreign market.
B) Cocoabeans has little control over the sales of its products in the U.S. and is looking for the support of a local firm.
C) The firm has partnered with a local firm on mutually profitable terms.
D) Cocoabeans has purchased a local firm to market its product in China because it does not want to give full rights to anyone else.
58) Which of the following is likely to be an advantage for the licensor in a licensing arrangement?
A) low cost and little risk
B) major returns on investment irrespective of sales
C) strict control over the use of its product and brand name
D) low royalty percentages
59) ________ are cooperative arrangements between two firms in which they agree to share resources to accomplish a mutually desirable goal.
A) Strategic alliances
B) Licensing arrangements
C) Cross-border acquisitions
D) Wholly-owned subsidiaries
60) Chucks' Eggs is a company that distributes eggs in Latin America and is planning to enter the North American market. As the risks are greater when entering new markets, Chucks' decides to join hands with another firm that has mutually desirable goals. This way, they can share the costs and have access to each other's resources. Which of the following ways is Chucks' implementing to enter a new market?
A) exporting
B) creating a strategic alliance
C) licensing
D) purchasing a local firm
61) A foreign firm can enter a new international market by using a(n) ________ to purchase a local firm in that market.
A) strategic alliance
B) licensing agreement
C) cross-border acquisition
D) exporting strategy
62) Which of the following is a challenge associated with cross-border acquisitions?
A) little control over the product
B) increased costs of transportation
C) integration of two previously independent companies
D) complexity in launching
63) When a company ________ a foreign country, it makes a direct investment to establish a business that it solely owns and controls there.
A) creates a new, wholly-owned subsidiary in
B) enters into a licensing arrangement with
C) exports goods to
D) purchases a local firm to enter
64) A ________ is often called a "Greenfield venture."
A) strategic alliance
B) licensing arrangement
C) wholly-owned subsidiary
D) cross-border acquisition
65) A ________ is an organization that invests the primary authority for major strategic decisions in the home office.
A) globally focused
B) region-country focused
C) transnational focus
D) state focused
66) Which of the following is true for a globally focused organization?
A) Managers can tailor strategies to local market conditions and demands.
B) It allows a subsidiary to react quickly to changes in the marketplace.
C) They attempt to market a relatively standardized product across geographic markets.
D) It strives to be simultaneously centralized and decentralized.
67) MGN is company that manufactures hardware, headquartered in London, UK. The company strives to be simultaneously centralized and decentralized. As such, its goal is to achieve global efficiency while maintaining local market responsiveness. Which approach is the organization following?
A) transnational focus
B) state focus
C) region-country focus
D) global focus
68) In an organization using a region-country focus, ________.
A) attempts are made to market a relatively standardized product across geographic markets
B) managers can tailor their strategies to local market conditions and demands
C) the goal is to achieve global efficiency while maintaining local market responsiveness
D) the firm's home office makes major strategic decisions
69) In an organization using a region-country focus, the primary authority to determine competitive strategy rests with the ________.
A) corporate stockholders
B) corporate board of directors
C) home office management team
D) management of the international subsidiary
70) Romano Ware manufactures kitchen utensils. It is headquartered in Jakarta and has an international presence. Its production sites and sales locations are situated in Europe, Asia, and Australia. The organization is highly decentralized, and region or country managers can tailor their strategies to local market conditions and demands. Which of the following approaches is Romano Ware using?
A) supply chain
B) region-country focused
C) globally focused
D) transnationally focused
71) Jenson Foods is headquartered in New Jersey and has subsidiaries in many countries across the world. The home office has centralized authority and the international subsidiaries follow the same or a similar strategy in each of their markets. Jenson Foods is following a ________.
A) global focus
B) region-country focus
C) transnational focus
D) state focus
72) In an organization using transnational focus, ________.
A) innovative products are developed in the home country market
B) subsidiaries react quickly to changes in the marketplace
C) strategic decisions are decentralized
D) managers can tailor their strategies to local market conditions and demands
73) Which of the following is true for organizations that are transnational in nature?
A) These organizations attempt to market a standardized product across geographic markets.
B) Subsidiaries of transnational organizations cannot respond to changes in customers' needs in the local market.
C) This approach can be expensive for the company because it cannot achieve economies of scale.
D) Its goal is to achieve global efficiency while maintaining local market responsiveness.
74) In high-context cultures, the situation has a ________ on what is considered appropriate behavior.
A) minimal influence
B) marginal influence
C) significant influence
D) negligible influence
75) ________ is the degree to which a situation influences behavior or perception of the appropriateness of behavior.
A) Cultural milieu
B) Cultural context
C) Cultural elasticity
D) Cultural dimensionality
76) In ________, people pay close attention to the situation and its various elements.
A) power distance
B) individualism
C) gender focus
D) high-context cultures
77) In ________, contextual variables have much less impact on the determination of appropriate behaviors.
A) low-context cultures
B) power distance
C) gender focus
D) collectivism
78) Which of the following is true about the cultural context?
A) In high-context cultures, contextual variables have much less impact on the determination of appropriate behaviors.
B) In low-context cultures, people pay close attention to the situation and its various elements.
C) In low-context cultures, the situation may or may not affect what is considered appropriate behavior.
D) In low-context cultures, the context has a significant influence on this judgment.
79) ________ rely on electronically mediated communication.
A) Ad hoc teams
B) Virtual teams
C) Swift trust teams
D) Cross-functional teams
80) Which of the following is NOT a characteristic of geographically dispersed multicultural teams?
A) Mutual trust is unimportant.
B) They often lack traditional supervision.
C) They must work more autonomously.
D) Coordination between team members is challenging.
81) ________ is the rapid development of trust in teams with positive and reciprocal communications about the team's task activities.
A) Reciprocal trust
B) Swift trust
C) Improved trust
D) Improved reliability
82) Which of the following is a requirement for swift trust?
A) The manager must let the team members eliminate misunderstandings among themselves.
B) The manager must have significant cultural knowledge and sensitivity to handle the virtual team.
C) Team members must know each other's faiths before starting a project.
D) Team members must learn a common language to communicate better.
83) A ________ is a set of cognitive attributes that allows an individual to influence individuals, groups, and organizations from diverse sociocultural and institutional environments.
A) winning attitude
B) global mind-set
C) facile imagination
D) charismatic personality
84) Managing multicultural teams, competing in international markets, and managing international operations all require managers to develop a ________.
A) global mind-set
B) certain savoir-faire
C) cross-functional vocabulary
D) no-holds-barred management style
85) Define globalization. According to Thomas Friedman, what are the three stages of globalization?
86) Define the term institutional environment.
87) Explain the importance of the institutional environment.
88) Explain the four prominent dimensions of national culture.
89) Discuss the ways that firms can enter new global markets.
90) What are Greenfield ventures?
91) What is a globally focused organization?
92) What is a transnational organization?
93) Define and discuss the term cultural context.
94) What is a global mind-set?
