Question 1

Which of the following companies is an example of a transnational company?

Accepted Answer

A)  Sony
B)  IBM
C)  Heineken
D)  Panasonic
E)  UnileverF) None of the above
G) A) and C)

Question 2

Research suggests that regardless of nationality or religion, most people embrace a set of five core values. Which of the following is one of the five core values?

Accepted Answer

A)  ambition
B)  competitiveness
C)  greed
D)  submission
E)  compassionF) A) and E)
G) B) and C)

Question 3

Henry was having a few friends over for dinner, many of whom Henry knew from an international management association. Henry's company provides services to create detailed maps of world areas from satellites, which the firm then sells via the Internet to firms, countries, and others around the world. One of his guests, Tamia, bakes cakes for a living. Her recipes are so well liked that her company has grown dramatically. She has just sold the right to manufacture her cakes to a firm in eastern Alpland. Another friend, Chang, is a director at InSpiral, and his wife, Chloe, has contracted with the breakfast chain Flapjack Frank's to open a branch in their state, bearing all the preliminary expenses and development costs. Chang also announced that InSpiral and another company, McElwee's, are starting a new venture. Finally, Kamala works for New Frontier technologies, which is headquartered in her home country, and is soon to go abroad to work in New Frontier's new facility, which is an independent company that New Frontier owns and controls in another country. The guests were discussing how their companies decided to "go global." New Frontier wants to use ________ to participate in the global marketplace.

Accepted Answer

A)  licensing
B)  franchising
C)  exporting
D)  joint ventures
E)  wholly owned subsidiariesF) A) and C)
G) A) and B)

Question 4

Which of the following is an advantage of the international model?

Accepted Answer

A)  It facilitates the transfer of skills from the parent company to the subsidiaries.
B)  It provides maximum latitude to research and development functions.
C)  It provides the opportunity to achieve a low-cost position via scale economies.
D)  It requires a minimum amount of effort and coordination by the parent company.
E)  It transfers ultimate control of the company to the subsidiaries.F) A) and C)
G) C) and E)

Question 5

Which of the following methods of entering global competition best allows a company to have operations in other countries and maintain tight control over them?

Accepted Answer

A)  exporting
B)  licensing
C)  a joint venture
D)  franchising
E)  a wholly owned subsidiaryF) B) and E)
G) A) and E)

Question 6

Big Ed's Barbecue sells small business owners the rights to use the company's brand name in return for a lump-sum payment and a share of the buyer's profits. This practice is referred to as

Accepted Answer

A)  offshoring.
B)  international licensing.
C)  exporting.
D)  franchising.
E)  royalty facilitation.F) A) and E)
G) A) and D)

Question 7

A disadvantage of a multinational model is that it

Accepted Answer

A)  cannot easily transfer core skills among international operations.
B)  does not give any freedom to its subsidiaries to respond to local conditions.
C)  standardizes its goods and services, ignoring customers' preferences.
D)  cannot easily launch a coordinated global attack against competitors.
E)  centralizes functions of research and development to the parent company.F) A) and B)
G) A) and E)

Question 8

Isabella Ruiz, Vice President of International Operations for Worldwide Products Corporation, was working with her subordinate, Jake Harris, to plan his upcoming 18-month overseas assignment to the firm's new office in Athens, Greece. Based upon her experience with previous failed overseas assignments, she was taking steps to avoid another failure. Therefore, one of the key features of Isabella's plan for Jake was to

Accepted Answer

A)  develop a reentry plan for Jake prior to the completion of the overseas assignment.
B)  limit communication to every-other-month status phone calls so as to not micromanage Jake.
C)  develop performance measures after Jake had completed his first year.
D)  save costs by avoiding a "look-see" trip for Jake and his family, given Jake's enthusiasm.
E)  develop the assignment "on the fly" given the uncertainties involved.F) A) and B)
G) B) and E)

Question 9

A major disadvantage of operating a wholly owned subsidiary is that

Accepted Answer

A)  a loss of control over technology is likely to occur.
B)  a wholly owned subsidiary offers too much flexibility over operations.
C)  high costs and risk are associated with this type of operation.
D)  overseas consumers are often resentful of foreigners.
E)  host countries can impose higher tariffs on the firm.F) C) and E)
G) B) and D)

Question 10

In the integration-responsiveness grid the

Accepted Answer

A)  vertical axis measures pressures for global integration, and the horizontal axis measures pressures for local responsiveness.
B)  horizontal axis measures pressures for local interaction, and the vertical axis measures pressures for global responsiveness.
C)  horizontal axis measures financial viability, and the vertical axis measures employee satisfaction.
D)  vertical axis measures employee satisfaction, and the horizontal axis measures management credibility.
E)  vertical axis measures pressures for global systems capacity, and the horizontal axis measures pressures for local financial success.F) A) and B)
G) A) and E)

Question 11

Which of the following characteristics is most likely associated with an international executive?

Accepted Answer

A)  ethnocentric
B)  flexible
C)  overconfident
D)  fainthearted
E)  close-mindedF) C) and D)
G) A) and D)

Question 12

A disadvantage of exporting is that

Accepted Answer

A)  it does not provide scale economies.
B)  the company may face tariff barriers.
C)  it is the most expensive method of expanding globally.
D)  the company risks losing control of its intellectual property.
E)  it is inconsistent with a pure global strategy.F) C) and D)
G) B) and E)

Question 13

Which of the following is true of the multinational approach to international competition?

Accepted Answer

A)  The subsidiaries are completely under the control of the parent company.
B)  The parent company allows the subsidiaries to respond to local conditions.
C)  The companies have centralized manufacturing facilities.
D)  The subsidiaries depend completely on the parent company for new products.
E)  The system lowers manufacturing costs by eliminating duplication of effort.F) C) and E)
G) B) and E)

Question 14

Family issues are the main reason expatriates return home early.

Accepted Answer

A) True 
 B)False

Question 15

One of the drawbacks of exporting is

Accepted Answer

A)  loss of scale economies.
B)  decreased scale volume.
C)  loss of control over quality.
D)  high transportation costs.
E)  loss of control over technology.F) D) and E)
G) C) and D)

Question 16

When pressures for local responsiveness are high and pressures for global integration are low, the global model is appropriate.

Accepted Answer

A) True 
 B)False

Question 17

Bluestone Systems is opening a branch office in Taiwan. The responsibility for staffing this office falls to Jack Swanson, Vice President of International Operations, based in Chicago. Jack has decided to enlist the help of a Taiwan-based agent, Rick Wang, to help him fill several open positions in the new office. Rick advises Jack to fill the positions with ________, in other words, native Taiwanese because they will better understand how to conduct business with clients in Taiwan.

Accepted Answer

A)  third-country nationals
B)  host-country nationals
C)  second-country nationals
D)  ethnocentricists
E)  expatriatesF) D) and E)
G) None of the above

Question 18

Bluestone Systems opened a branch office in Taiwan a year ago. Jack Swanson, Vice President of International Operations, is based in Chicago, and he selected Dennis Cooper, his top subordinate in Chicago, to head up the new office. Jack is now disappointed that the Taiwan operation was not thriving; Dennis had not been successful in developing relationships with potential clients. Jack wondered if, instead of sending a(n) ________ from the United States to lead the office, he should have heeded the advice of his Taiwanese agent, who had recommended that Jack hire a native Taiwanese to lead the office.

Accepted Answer

A)  third-country national
B)  host-country national
C)  second-country national
D)  inpatriate
E)  expatriateF) None of the above
G) A) and D)

Question 19

Exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are all methods of

Accepted Answer

A)  identifying lucrative consumers on a global scale.
B)  operating a transnational business.
C)  entering overseas markets.
D)  optimizing global profit.
E)  reducing costs.F) C) and D)
G) A) and B)

Question 20

Describe the advantages and disadvantages of wholly owned subsidies.

Accepted Answer

Student answers will vary but should dem...

Exam 6: International Management

Which of the following methods of entering global competition best allows a company to have operations in other countries and maintain tight control over them?

Correct Answer
verified

Correct Answer
verified

Big Ed's Barbecue sells small business owners the rights to use the company's brand name in return for a lump-sum payment and a share of the buyer's profits. This practice is referred to as

Correct Answer
verified

Correct Answer
verified

Exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are all methods of

Correct Answer
verified

One of the drawbacks of exporting is

Correct Answer
verified

Which of the following is an advantage of the international model?

Correct Answer
verified

A disadvantage of a multinational model is that it

Correct Answer
verified

Which of the following characteristics is most likely associated with an international executive?

Correct Answer
verified

Which of the following is true of the multinational approach to international competition?

Correct Answer
verified

Research suggests that regardless of nationality or religion, most people embrace a set of five core values. Which of the following is one of the five core values?

Correct Answer
verified

When pressures for local responsiveness are high and pressures for global integration are low, the global model is appropriate.

Correct Answer
verified

Correct Answer
verified

A disadvantage of exporting is that

Correct Answer
verified

In the integration-responsiveness grid the

Correct Answer
verified

Family issues are the main reason expatriates return home early.

Correct Answer
verified

A major disadvantage of operating a wholly owned subsidiary is that

Correct Answer
verified

Correct Answer
verified

Describe the advantages and disadvantages of wholly owned subsidies.

Correct Answer
verified
Student answers will vary but should dem...
View Answer

Which of the following companies is an example of a transnational company?

Correct Answer
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Exam 6: International Management

Which of the following methods of entering global competition best allows a company to have operations in other countries and maintain tight control over them?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Big Ed's Barbecue sells small business owners the rights to use the company's brand name in return for a lump-sum payment and a share of the buyer's profits. This practice is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are all methods of

Correct AnswerverifiedShow Answer

One of the drawbacks of exporting is

Correct AnswerverifiedShow Answer

Which of the following is an advantage of the international model?

Correct AnswerverifiedShow Answer

A disadvantage of a multinational model is that it

Correct AnswerverifiedShow Answer

Which of the following characteristics is most likely associated with an international executive?

Correct AnswerverifiedShow Answer

Which of the following is true of the multinational approach to international competition?

Correct AnswerverifiedShow Answer

Research suggests that regardless of nationality or religion, most people embrace a set of five core values. Which of the following is one of the five core values?

Correct AnswerverifiedShow Answer

When pressures for local responsiveness are high and pressures for global integration are low, the global model is appropriate.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A disadvantage of exporting is that

Correct AnswerverifiedShow Answer

In the integration-responsiveness grid the

Correct AnswerverifiedShow Answer

Family issues are the main reason expatriates return home early.

Correct AnswerverifiedShow Answer

A major disadvantage of operating a wholly owned subsidiary is that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe the advantages and disadvantages of wholly owned subsidies.

Correct AnswerverifiedStudent answers will vary but should dem...View AnswerShow Answer

Which of the following companies is an example of a transnational company?

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Student answers will vary but should dem...
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Correct Answer
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