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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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