MGT 510 Final Exam Part 1 & 2

Question 1 

As entry-mode strategies, direct and indirect exporting have

Answer 

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.

4 points 

Question 2 

When a firm from another country has an equity (or ownership) position in a separate company, it is engaging in

Answer 

An international cooperative alliance.

A turnkey operation.

A contract manufacturer.

FDI.

4 points 

Question 3 

A company that treats and fills overseas orders like domestic orders is an example of a

Answer 

Indirect exporter.

Export management company.

Aggressive exporter.

Passive exporter.

4 points 

Question 4 

Which strategy attempts to balance advantages from three other multinational strategies?

Answer 

Regional

Multidomestic

Transnational

International

4 points 

Question 5 

Common customer needs, global sources of raw material, and favorable trade policies all lead to

Answer 

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.

4 points 

Question 6 

Selling global products and using similar marketing techniques worldwide is an example of a

Answer 

Transnational strategy.

International strategy.

Multidomestic strategy.

Regional strategy.

4 points 

Question 7 

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

Answer 

Bureaucratic.

Output.

Cultural.

Decision making.

4 points 

Question 8 

Which of the following is NOT one of the questions asked when designing an organization?

Answer 

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?

Question 9 

A __________ helps link the organization horizontally.

Answer 

Control system

Coordination system

Cultural system

Centralized operations

4 points 

Question 10 

The type of control system favored by the transnational is

Answer 

Bureaucratic.

Output.

Cultural.

Decision making.

4 points 

Question 11 

The worldwide product structure is usually considered best to implement a/an _____ strategy.

Answer 

Multidomestic or regional

Transnational

International

Indirect exporting

4 points 

Question 12 

The least efficient of the following structural options is

Answer 

Product structure.

Functional structure.

Vertical structure.

Graphic structure.

4 points 

Question 13 

Understanding a new market and developing a new technology may be used as performance criteria for which of the following?

Answer 

Organizational learning

Management processes

Competitive advantage

Commitment

4 points 

Question 14 

Strategic alliance partners prefer a dominant management structure

Answer 

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.

4 points 

Question 15 

Which of the following type of strategic alliances allows the multinational to combine manufacturing or assembly activities to achieve a profitable volume of activity?

Answer 

Operations alliances

Output alliances

Upstream-downstream alliances

Marketing alliances

4 points 

Question 16 

Strategic complementarity in a strategic alliance means that

Answer 

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.

4 points 

Question 17 

An agreement not legally binding between companies to cooperate on any value-chain activity is a (an)

Answer 

Formal international cooperative alliance.

International joint venture.

Informal international joint venture.

International cooperative alliance.

4 points 

Question 18 

__________ means that companies rely on each other to contribute to the relationship.

Answer 

Shared management

Balanced management

The norm of reciprocity

Mutual dependency

4 points 

Question 19 

Which of the following describes the situation where companies stay in a strategic alliance despite strong evidence that the alliance won’t work?

Answer 

Calculative commitment

Credibility commitment

Attitudinal commitment

Escalation of commitment

4 points 

Question 20 

According to the text, the degree of difficulty in conducting global e-commerce businesses is primarily dependent on

Answer 

The financial requirements.

The availability of management talent.

The infrastructure requirements.

The telecommunications infrastructure requirements.

4 points 

Question 21 

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

Answer 

North America

The European Union

South America

Asia

4 points 

Question 22 

Having systems in place to ensure that collected information is accurate and reliable represents which form of information security?

Answer 

Confidentiality

Availability

Integrity

Authentication

4 points 

Question 23 

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

Answer 

Spanish language websites.

Membership in ASEAN.

Global demand.

Internet economy.

4 points 

Question 24 

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?

Answer 

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

4 points 

Question 25 

An Internet host that allows users to send encrypted data so that those outside the connection cannot see the information is a

Answer 

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

Question 1 

Companies with a global HRM orientation

Answer 

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.

4 points 

Question 2 

The main objective of the balance sheet approach to international compensation is

Answer 

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.

4 points 

Question 3 

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

Answer 

A global HRM orientation.

A polycentric HRM orientation.

Either a ethnocentric or regiocentric HRM orientation.

A geocentric orientation.

4 points 

Question 4 

Home country nationals are

Answer 

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.

4 points 

Question 5 

International Human Resource Management

Answer 

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.

4 points 

Question 6 

Evidence on training for international assignments suggests

Answer 

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.

4 points 

Question 7 

Companies with ethnocentric HRM orientations

Answer 

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.

4 points 

Question 8 

The process by which companies choose people to fill vacant position is

Answer 

Recruitment.

Compensation.

Selection.

Training and development.

Question 9 

Which of the following represents one possible solution to the “Old Friends" dirty trick?

Answer 

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.

4 points 

Question 10 

The sequential approach to concession-making

Answer 

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.

4 points 

Question 11 

Deliberate deception, one example among some common ploys in international negotiations, refers to

Answer 

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.

4 points 

Question 12 

In competitive negotiation

Answer 

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.

4 points 

Question 13 

Olfactics

Answer 

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.

4 points 

Question 14 

If negotiators are using deliberate deception as a dirty tricks, the best way to deal with the deception is

Answer 

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.

4 points 

Question 15 

High context languages

Answer 

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.

4 points 

Question 16 

__________ negotiators search for possible win-win situations where the outcome of the negotiation is mutually satisfactory to both sides.

Answer 

Problem-solving

Concession-making

Competitive

Hard nosed

4 points 

Question 17 

When applying need theories in a cross-national context, managers should

Answer 

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.

4 points 

Question 18 

Social loafing

Answer 

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.

4 points 

Question 19 

The need to maximize personal achievement refers to which type of need in Maslow’s hierarchy of needs

Answer 

Physiological needs.

Self esteem needs.

Self actualization needs.

Security needs.

4 points 

Question 20 

In a cross-national context, expectancy theory prescribes that managers

Answer 

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.

4 points 

Question 21 

Esteem needs refer to

Answer 

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.

4 points 

Question 22 

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?

Answer 

Extinction

Goal-directed

Reinforcement

Punishment

4 points 

Question 23 

Need theories of motivation are based on the assumption that

Answer 

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.

4 points 

Question 24 

Which types of motivation theories explain motivation arising from satisfaction of needs and values combined with an individual's beliefs regarding the work environment?

Answer 

Needs theories

Work centrality theories

Process and reinforcement theories

Work functions theories

4 points 

Question 25 

Conclusions from the World Values Survey and the European Values Survey on functions of work reveal that

Answer 

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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