PBL International Business

PBL International Business2002 NLC

Indicate whether the sentence or statement is true or false. Mark “A” if the statement is True or “B” if it is False.

1. Exporting refers to selling domestically produced goods and services in foreign countries. A

1. Sales growth opportunities for most large domestic producers are greater in foreign countries. A

1. An unfavorable balance of trade is known as a trade surplus. B

1. If a country can specialize in what it does best, it can trade surplus production for other products it lacks. A

1. Oil production in the Mid-East approximates absolute advantage. A

1. Due to low labor costs, China has a comparative advantage in producing airplanes. B

1. A country’s balance of trade is determined by comparing the total amount of its exports to its imports. A

1. A trade surplus exists when a nation’s imports exceed its exports. B

1. A revenue tariff is designed to raise funds for the government. A

1. An import quota is an example of a cultural barrier to global business. B

1. Quotas help to prevent dumping. A

1. The WTO (World Trade Organization) makes decisions that are binding on nations involved in disputes. A

1. The IMF was created to promote trade through financial cooperation. A

1. A nation’s exchange rate is the rate at which its currency can be exchanged for goods and services. B

1. The EU’s (European Union) main goal is to have a borderless Europe. A

1. A foreign licensing agreement is one way of avoiding trade barriers and trade restrictions. A

1. Overseas marketing involves a firm setting up a foreign production operation. B

1. Global business always involves production in a foreign country. B

1. A multinational corporation with a global strategy uses a standardized production and marketing strategy worldwide. A

1. A global strategy involves separate product and marketing strategies that vary from one nation to another. B

Mark the correct answer on your scrantron sheet for each of the following questions.

1. The economic agreement that links the US, Canada, and Mexico in an economic block that allows freer exchange of goods and services is known as the D
2. EU.
3. OPEC.
4. APEC.
5. NAFTA.

1. Nearly half of the total in world trade is among B
2. U.S. and Japan.
3. the TRIAD countries.
4. Japan and Europe.
5. China, the U.S. and Japan.

1. The sale of government owned business to private investors is known as C
2. a tax sale.
3. bureaucratic divestiture.
4. privatization.
5. capitalization.

1. On which of Hofstede’s value dimensions does the U.S. rank highest? B
2. Masculinity
3. Individualism
4. Patriotism
5. Power Distance

1. An emphasis on leadership styles that appeal to duty and commitment and motivational assumptions, that involve moral involvement, are found primarily in countries with D
2. low masculinity.
3. low uncertainty avoidance.
4. short term orientations.
5. low individualism (collectivist).

1. Cultures with high power distance values probably have C
2. participative leadership.
3. decentralized decision making.
4. large wage differences between management and workers.
5. managers selected by educational achievement.

1. Which of the following statements is true regarding a future oriented society? C
2. Managers and workers do not necessarily believe that hard work can lead to future success.
3. People believe they can control nature.
4. Managers actively try to change situations.
5. Managers believe that they must accept situations rather than change them.

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PBL International Business2002 NLC

1. In countries where it is believed that nature dominates people, D
2. managers are less likely to be fatalistic.
3. managers emphasize planning and scheduling.
4. managers actively try to change situations.
5. managers believe that they must accept situations rather than changing them.

1. It is expected that people in individualistic cultures have lower trust expectations of each other because C
2. they believe they can dominate nature and do not need to trust people.
3. they can succeed by being independent.
4. the self-interested nature of such cultures promotes value, where people can take advantage of each other and become less trusting of each other.
5. None of the above

1. Attribution A
2. is the process by which we interpret the meaning and intent of spoken words or nonverbal exchanges.
3. is communication through body movements.
4. focuses on how people use space to communicate.
5. is a form of verbal communication.

1. When communicating with nonnative speakers, which of the following would make communication harder and less accurate? C
2. Strictly following basic rules of grammar
3. Using words that have numerous alternative meanings
4. Using slang
5. Using most common words with their most common meanings

1. In competitive negotiation C
2. negotiators seek out mutually satisfactory ground, that is beneficial, that allows both companies to win.
3. competitive negotiators view the negotiation as a win-win game.
4. competitive negotiators use dirty tricks and any plot that leads to their advantage.
5. competitive negotiators search for possible win situations where the outcome of the negotiation is mutually satisfactory to both sides.

1. International business ethics C
2. present problems similar to domestic business ethics.
3. pertain to the rules and values that determine actions that companies should follow when dealing with other companies.
4. pertain to those unique ethical problems faced by managers conducting business across countries.
5. none of the above

1. Ethical decision making of multinational managers probably should B
2. be based solely on home country ethical principles.
3. go beyond legal constraints and respect the local cultural norms.
4. be primarily profitable for the multinational.
5. none of the above

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PBL International Business2002 NLC

1. Key success factors are B
2. examples of defensive strategies.
3. important characteristics of a company, or its product, that lead to success in an industry.
4. similar to generic strategies.
5. the economic characteristics of countries that lead to success.

1. The acronym SWOT stands for C
2. strategies with organizational timelines.
3. selection, withdrawal, opportunities, and timeliness.
4. strengths, weakness, opportunities, and threats.
5. strategies, winning, organizations, and tender offers.

1. Conducting business similarly throughout the world, and locating company units wherever there is high quality and low cost, is B
2. the global-local dilemma.
3. the global integration solution.
4. the local responsiveness solution.
5. the multi-domestic solution.

1. Comparative advantage is/are D
2. similar to competitive advantage.
3. a local responsiveness solution.
4. where the company can produce the cheapest.
5. advantages of nations over other nations.

1. Using intermediaries, or go-between firms, to provide the knowledge and contacts necessary to sell overseas is usually associated with C
2. direct exporting.
3. franchising.
4. indirect exporting.
5. licensing.

1. International franchising b
2. is when multinationals make a project fully operational and train local managers and workers before the owner takes control.
3. is a comprehensive licensing agreement where the franchisor grants to the franchisee the use of a whole business operation.
4. is the use of intermediaries, or go-between firms, to provide the knowledge and contacts necessary to sell overseas.
5. is none of the above.

1. When exports become a significant percentage of company sales and a company wishes greater control over its export operations, managers often create a separate A
2. export department.
3. functional department.
4. product department.
5. liaison office.

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PBL International Business2002 NLC

1. Companies often abandon their international divisions as they expand international operations in terms of products and country locations because D
2. too many products often overwhelm the capacities of the international division.
3. it is difficult for people in the international division to know the whole product line and sell it worldwide.
4. when the number of locations in different countries grows, it is difficult for the international division to manage multidomestic or regional adaptations.
5. all of the above are true.

1. Which of the following structures best support strategies that emphasize global products and rationalization? D
2. The functional structure
3. The matrix structure
4. The geographic structure
5. The product structure

1. Temporary groups created to solve a particular organizational problem, such as entering a new market, are C
2. teams.
3. liaisons.
4. taskforces.
5. full-time integrators.

1. The most important decision in setting up a strategic alliance is usually considered D
2. working out the proportions of ownership.
3. decision on the proper management structure.
4. developing a detailed contract.
5. selecting the right partner.

1. The “best” level of dependency recommended for a strategic alliance is A
2. balanced.
3. home country dominated.
4. host country dominated.
5. It does not matter if there are more than two companies

1. In dealing with cross-cultural communication in a strategic alliance, managers should expect B
2. communication difficulties to disappear when operational managers are fluent in each other’s language.
3. slower communication and more errors.
4. no communication problems if all managers were educated in the US.
5. no communication difficulties if all parties agree on a common language of the strategic alliance.

1. Small businesses differ from large businesses, when going international, primarily in C
2. the available participation strategies.
3. the strategies they can use to go international.
4. their founder’s or entrepreneur’s influence.
5. the available multinational strategies.

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PBL International Business2002 NLC

1. Which of the following statements does not accurately describe the most likely form of organizing a multinational e-business? D
2. A multinational e-business is three-tiered, mixing global and local functions.
3. Corporate headquarters of the business provides the vision, strategy, and leadership that drive the marketing of products worldwide.
4. Local subsidiaries of the business take charge of the functions better done locally in each country.
5. Corporate headquarters of the business provides the vision, strategy, and leadership and also takes charge of the local strategies in each country.

1. Multinational e-commerce enablers exist because A
2. many companies, including very large ones, do not have the internal resources or abilities to conduct all e-commerce functions.
3. there is a shortage of employees with e-commerce skills.
4. it is extremely difficult for a “brick and mortar” company to develop an e-commerce strategy.
5. it is more beneficial to have a strategic partner when conducting multinational e-commerce.

1. An entrepreneur A
2. creates new ventures that seek profit and growth.
3. is seldom the primary force behind a company’s decision to go international.
4. can accurately predict the risks and uncertainties of his/her ventures.
5. faces less uncertainty than a multinational.

1. Global start-ups occur when C
2. companies have consistent licensing agreements.
3. companies start exporting as soon as they receive their first order.
4. companies begin as multinationals.
5. companies move rapidly through the stages of internationalization.

1. Small businesses can potentially have more advantages than larger businesses in the global economy because A
2. small companies have less trouble overcoming extensive bureaucratic procedures when adopting new products.
3. larger companies have more slack resources to waste.
4. small companies can most often produce the highest quality products.
5. small companies have more access to venture capital.

1. The small business advantage refers to C
2. the energy and creativity entrepreneurs can put in their multinational operations.
3. the ease by which small companies can become global start-ups.
4. the speed by which entrepreneurs can react to changing conditions and capture significant sales before larger companies can react.
5. the number of venture capitalists willing to invest in successful small businesses.

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PBL International Business2002 NLC

1. Impatriates are D
2. employees who come from a different country where he/she is working.
3. expatriate workers who come from neither the host nor the home country.
4. local workers who come from the host country where the unit is located.
5. employees from foreign country who work in the country where the parent company is located.

1. Home country nationals are A
2. employees from foreign countries who work in the country where the parent company is located.
3. employees who come from a different country where he/she is working.
4. expatriate employees which come from the parent’s home country.
5. employees from foreign country who work in the country where the host company is located.

1. Expatriates are B
2. local workers who come from the host country where the unit is located.
3. employees who come from a different country than where she or he is working.
4. the more talented local managers.
5. none of the above.

1. Evidence on training for international assignments suggests that A
2. cross-cultural training reduces expatriate failure rates.
3. cross-cultural training makes people feel more comfortable, but there are no bottom line effects on performance.
4. US firms invest most heavily in this activity.
5. it only pays off for long term assignments.

1. Which is the best strategy for US women to use to succeed in traditional cultures? A
2. Emphasize organizational position and not gender
3. Develop close contact with local government officials
4. Not being overly aggressive in negotiation
5. Proving that women can also be successful at international assignments

1. Using more local managers to reduce the costs of training expatriate managers is a benefit usually associated with a(n) B
2. global Human Resource Management orientation.
3. polycentric or regiocentric HRM orientation.
4. ethnocentric HRM orientation.
5. geocentric orientation.

1. Managerial selection and recruitment in Korea and Japan are dominated by A
2. high school and university ties.
3. club membership.
4. performance-related backgrounds and qualifications.
5. all of the above.

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PBL International Business2002 NLC

1. The dual-system in Germany refers to C
2. the combination of selection and recruitment in one process.
3. the unification of management practices from Eastern and Western Germany.
4. the combination of in-house apprenticeship training with part-time vocational school training.
5. academic preparation at the high school level.

1. Which of the following describes one potential way a Japanese supervisor can communicate negative feedback for poor work performance to his/her subordinate? A
2. By simply ignoring the subordinate
3. With formal appraisal systems
4. By discussing the poor performance openly
5. By providing the negative feedback in writing

1. Japanese compensation systems base pay raises mostly on B
2. marital status and family size.
3. seniority.
4. merit.
5. position.

1. In most collectivist cultures, performance appraisals B
2. follow similar patterns to the US legal requirements.
3. are often communicated subtly, such as by a manager ignoring a worker.
4. favor and open and honest dialogue regarding performance.
5. are more formal than in individualistic cultures.

1. The practice in Germany, whereby management surrenders a traditionally reserved share of control to workers, refers to A
2. co-determination.
3. co-selection.
4. veto power.
5. joint planning.

1. Reactions to a person’s behavior that encourage the person to continue the behavior is C
2. goal-directed behavior.
3. punishment.
4. reinforcement.
5. need.

1. In a cross-national context, expectancy theory prescribes that managers C
2. should identify the hierarchy of needs of workers.
3. identify and eliminate potential sources of inequity at work.
4. identify valued outcomes and convince workers that their efforts will lead to these outcomes.
5. punish workers for not achieving organizational goals.

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PBL International Business2002 NLC

1. Setting goals for work groups is recommended in B
2. individualistic cultures.
3. collectivist cultures.
4. high power distance cultures.
5. goal setting for groups works equally well in all cultural settings.

1. In individualistic cultures, performance drops off with the use of teamwork because D
2. of social loafing.
3. workers believe that the group will make up any lack in their personal efforts.
4. workers do not feel responsible for group outcomes.
5. All of the above

1. Person-centered leaders C
2. focus on completing tasks by initiating structure.
3. give specific directions to subordinates so that the subordinates can feel comfortable completing tasks.
4. show a concern for subordinates’ feelings and taking subordinates’ ideas into account.
5. make all major decisions themselves.

1. Building support for ideas and networking, and using friendships, involve the use of which influenced tactics? D
2. Assertiveness
3. Friendliness
4. Sanctioning
5. Coalitions

1. The attribution approach to leadership B
2. focuses on using rewards or punishments to influence the attributes of subordinates.
3. emphasizes the leader’s attributions, regarding the causes of subordinates’ behaviors.
4. is similar to the trait approach, except that it focuses on a person’s attributes.
5. represents one key aspect of transformational leadership.

1. The fundamental attribution error A
2. is a tendency for managers to believe that most people act because of internal motivations.
3. is a tendency for managers to believe, more often, that people behave in certain ways because of outside factors, such as poor working conditions.
4. occurs most often in Asian cultures.
5. concerns primarily external attributions.

1. The recommended leadership style for a country low on power distance and low on uncertainty avoidance is A
2. “the democrat” -- supportive, participative, and achievement.
3. “the master” -- directive and supportive.
4. “the professional” – directive, supportive, and participative.
5. “the boss” -- directive.

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PBL International Business2002 NLC

1. U.S. and Japanese strategic objectives are different in that C
2. the US favor strategic over financial objectives.
3. the Japanese financial markets impose coercive and normative isomorphic pressures on managers to emphasize profits and returns to shareholders.
4. U.S. firms rank most financial objectives as more important than strategic objectives.
5. Japanese and U.S. managers favor the same class of objectives.

1. The Japanese keiretsu can best be described as B
2. an outlawed form of organizational run secretly in Japan.
3. a web of trading partners based on financial or production relationships.
4. a radically different form of organization than the zaibatsu.
5. symbolically the opposite of a close knit family.

1. The span of control means A
2. the number of subordinates that report to a superior.
3. the power of the expatriate managers over local subordinates.
4. the number of products produced worldwide and controlled by headquarters.
5. the influence of local managers on headquarters.

1. The family bureaucracy fits cultures D
2. where people can tolerate ambiguity in organizational roles and have less need for formalized rules and regulations.
3. is the preferred organization form for cultures with small power distance and high uncertainty avoidance norms.
4. and occurs in countries high on both power distance and the need to avoid uncertainty.
5. and occurs in countries with large power distance norms and low uncertainty avoidance norms.

1. The typical Japanese consensus bureaucracy includes B
2. a high degree of job specialization.
3. little job specialization for individuals.
4. little emphasis on hierarchy.
5. considerably more departmentalization than U.S. bureaucracies.

1. What country accepts more refugees per capita than any other country? B
2. U.S.A.
3. Canada
4. Russia
5. India

1. Many developing nations have lower per-capita incomes than highly developed countries. This fact D
2. indicates that, for most products, there will be negligible market.
3. international trade will not be of much help to their economies.
4. means that there is little opportunity for their economies to grow.
5. does not mean there is little opportunity for sales.

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