IBMS solve assignment for International Business (Each Question for ¼ marks)
(Negative Marking)
Short Answer – Each question for 5 marks True/False ____ 1. Multinational enterprise is a firm that engages in foreign direct investment by directly investing in,
controlling, and managing value-added activities in other countries.
____ 2. The term International Business should always refer to business activities conducted abroad.
____ 3. Most top managers of large firms lack significant global competence.
____ 4. Expatriate managers make ideal candidates for top management positions.
____ 5. Expatriate employees face fewer and lower-ranked employment opportunities upon return to the US.
____ 6. Both, institution- and resource-based views are two core perspectives answering the fundamental question:
"What determines the success and failure of firms around the globe?"
____ 7. According to the pendulum view, the globalization is a positive phenomenon and perceived both positively
and negatively throughout the history.
____ 8. The world economy at the beginning of the 21st century is an approximately $48 trillion economy (GDP
calculated at official, nominal exchange rates).
____ 9. South Africa represents 10% of Africa's population and 45% of the continent's gross domestic product (GDP).
____ 10. Totalitarian countries often experience wars, riots, protests, chaos, and breakdowns, resulting in higher
political risk.
____ 11. Intellectual property rights (IPRs) include rights associated with patterns, trademarks, and copyrights ____ 12. More than 40% of Africa's economy is reportedly informal, the highest proportion in the world.
____ 13. Managers should develop herd mentality.
____ 14. Managers considering working abroad should have a thorough understanding of the formal institutions before
entering a country.
____ 15. It is most accurate to apply a specific culture to each country.
____ 16. Most firms agree that while following strict ethical standards may help win them goodwill, it is rarely
financially beneficial in the end.
____ 17. The United States consistently retains a very low level of corruption according to the Foreign Corrupt
Practices Act. ____ 18. While Asian societies prefer to remain in a defensive position against new economic growth, the ideology
behind Islamic cultures encourages members to embrace it.
____ 19. Awareness, knowledge, and skills are the three phases an individual seeking cultural intelligence must pass
through.
____ 20. The insight that competitors do not share certain resources and capabilities specific to one's firm is also
known as the resource-based view.
____ 21. A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.
____ 22. Human resources, innovation, and reputational resources and capabilities are all intangible assets.
____ 23. Offshoring means outsourcing to an international or foreign firm.
____ 24. Original equipment manufacturers are firms that capture some of the design work of the original firm.
____ 25. The theory of mercantilism viewed international trade as a win-win game.
____ 26. Government payments to domestic firms to produce a competitive advantage are called non-tariff barriers.
____ 27. Bureaucratic rules that make it harder to import foreign goods are defined as administrative policies.
____ 28. The United States runs a trade deficit with all its major trading partners − Canada, the EU, Japan, and Mexico.
____ 29. Managers should monitor and nurture current comparative advantages of certain locations and take advantage
of new locations. ____ 30. FDI refers to investment in a portfolio of foreign securities such as stocks and bonds that do not entail the
active management of foreign assets.
____ 31. A type of FDI in which the firm moves upstream or downstream in different value chain stages in a host
country is called horizontal FDI.
____ 32. If firms from country A undertake $20 billion of FDI in firms from country B in year 1, and another $20
billion in year 2, then we can say that in each of those two years, B receives annual FDI outflows of $20
billion, and A generates annual FDI inflows of $20 billion.
____ 33. The benefit of ownership lies in the combination of equity ownership rights and management control rights.
____ 34. Implicit knowledge can be written down and transferred without losing much of its richness.
____ 35. International transactions are generally as effective as those governing domestic transactions.
____ 36. FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their
responses to overcome imperfections and failures.
____ 37. Brazil, China, India, Hungary, Russia, and Ireland have adopted more FDI-friendly policies.
____ 38. Government tactics include removing incentives, demanding a higher share of profits and taxes, and
confiscating foreign assets.
____ 39. Wal-Mart is the second largest company in the world by sales.
____ 40. Since foreign exchange is such a unique commodity, its markets are influenced only by economic factors and
free from the effect of social or political pressures. ____ 41. A deficit in the current account does not have to be balanced by other financial accounts.
____ 42. A weak US dollar hurts exporters in Asia and Europe, but it helps improve the US balance of payments and
creates a greater global balance. ____ 43. Even though a country may have a high currency risk, the country might still be worthy of investment.
____ 44. The "stumbling stone" of the Doha round turned out to be intellectual property.
____ 45. Expect for Moldavia, all WTO members are now involved in some regional trade arrangement.
____ 46. Denmark and United Kingdom are the only two members of the EU-12 (members who joined the union prior
to 1990) that do not use the euro as their currency.
____ 47. The ANZCERTA or CER, launched in 1983, turned historical rivalry between Australia and New Zealand
into a partnership.
____ 48. Ever since the establishment of the ASEAN, in 1992, intra-ASEAN trade has grown by 12% annually.
____ 49. Entrepreneurship flourishes more in environments with many formal institutional requirements.
____ 50. An institution-based view suggests that firm-specific resources and capabilities largely determine
entrepreneurial success and failure.
____ 51. Owners, managers, and employees at entrepreneurial firms tend to be more innovative and take more risks
than those at large firms.
____ 52. Licensing is mostly used in the service industries.
____ 53. The level of complexity and required resources increases from direct export, to licensing / franchising, and
finally to foreign direct investment. ____ 54. A first mover advantage is preemption of scarce resources.
____ 55. Late movers face greater technological and market uncertainties.
____ 56. Having access to partners' knowledge and assets is an advantage for equity modes, such as joint ventures.
____ 57. Indirect export is a strategy of exporting through domestically based export intermediaries.
____ 58. Competitive dynamics are the interactions between two rivaling firms and include an initiator and responder.
____ 59. The desire for fairness in competition is the same everywhere in the world.
____ 60. Resource similarity is the extent to which a given competitor possesses strategic endowment comparable to
those of the focal firm.
____ 61. The strategy with the strongest intention to move overseas is the dodger strategy.
____ 62. The main argument protectionists hold for imposing antidumping policies is that, through unfair dumping,
foreign rivals will drive out local firms and then increase the prices to make up for the loss.
____ 63. Acquisitions are more common than mergers.
____ 64. Many firms establish alliances with competitors.
____ 65. It is important for managers to have collaborative relationship skills since alliances are more about
collaboration than pure competition.
____ 66. Alliances, as real options, may be more suitable under a high level of uncertainty, and acquisitions are
preferable when the level of uncertainty is low. ____ 67. Equity alliance relationships tend to have less direct control over joint activities on a continual basis than the
contractual relationships.
____ 68. Regarding motives for acquisitions, synergistic motives add value while hubris and managerial motives
reduce value.
____ 69. The challenge for the Lenovo and IBM relationship was the tremendous liability of foreignness.
____ 70. The framework that addresses the pressures MNEs confront is commonly referred to as the integrationresponsiveness
framework. ____ 71. Transnational strategy is usually the easiest strategy for an MNE to implement and the first one adopted when
the firm ventures abroad.
____ 72. The global standardization strategy, despite its complexity, is still the best option at being cost effective and
locally responsive.
____ 73. Strategy usually drives structure, but structure does not usually drive strategy.
____ 74. The top executives at the highest level of an MNE are usually host country nationals.
____ 75. Explicit knowledge is codifiable and can be transmitted by IT. Tacit knowledge is noncodifiable and requires
hands-on communication.
____ 76. Social capital is the necessary intangible material needed for a central management to trust a subsidiary
initiative.
____ 77. Economies with more individual GDP tend to report more price elasticity.
____ 78. Standardized promotion is attractive because it projects a global message but it is more costly than localized
marketing.
____ 79. Adaptability in supply chain management refers to the ability to quickly react to unexpected shifts in supply
and demand.
____ 80. All countries have the same legal regulation and restrictions on marketing and advertising in order have
standardized global reach. ____ 81. Marketers do not have a good handle on how advertising in the new online media world adds value.
____ 82. In order to protect their imitability, some 3PL firms have made certain capabilities untouchable.
____ 83. Marketing and sales departments tend to have tension in their relationship.
____ 84. Global standardization or transnational strategies often require a geocentric approach, resulting in the mix of
HCNs, PCNs, and TCNs.
____ 85. MNEs intend to eventually replace even top-level expatriates with HCNs, in part to save cost.
____ 86. In 2007, the (US) House of Representative passed a new Employee Choice Act, designed to make it easier to
organize unions in the United States.
____ 87. Eastern Europe is a highly lucrative market for the US-based Manpower.
____ 88. European MNEs are more likely to appoint HCNs and TCNs to lead subsidiaries.
____ 89. Expatriation versus inpatriation practice argues that a firm needs to search for the best external and internal
fit.
____ 90. Owners, managers and boards of directors are known as the "tripod" of corporate governance.
____ 91. In firms with concentrated ownership, principal-agent conflicts between controlling and minority shareholders
are more important.
____ 92. In East Asia where most firms have concentrated family ownership and control, there is extensive CEO
duality.
____ 93. The board of directors performs control, service, and resource acquisition functions. ____ 94. A voice-based mechanism indicates that shareholders no longer have patience and are willing to "exit" by
selling their shares.
____ 95. The market for corporate control enables the "wholesale" removal of entrenched managers.
____ 96. The institution-based view argues that among a number of firms governed by the same set of rules, some
excel more than others because of differences in firm-specific capabilities that leverage advantage in
corporate governance.
____ 97. The CSR approach draws upon Adam Smith's idea that the pursuit of economic self-interest within legal and
ethical bounds leads to efficient markets.
____ 98. A promoter of the CSR approach would argue that as long as there is competition, there will be both winners
and losers.
____ 99. The institutional view concerning the effectiveness of the CSR approach focuses on the strategic responses of
the firms.
____ 100. In general, most MNEs take full advantage of lower environmental regulations in developing countries. Multiple Choice ____ 101. In order to better compare/contrast costs of living in the various environments GNP/GDP may be adjusted to:
a. PPP (purchasing power parity)
b. Foreign exchange rate
c. Country's inflation rate
d. Five-year national bond appreciation/depreciation
____ 102. In addition to their regular compensation, managers working abroad are awarded with
a. Global fringe benefits
b. Foreign pension plan
c. International premium
d. Health insurance
____ 103. Which of the following is NOT a view on globalization stressed by the author
a. A new force sweeping through the world in recent times
b. A long-run historical evolution since the dawn of human history
c. A pendulum that swings from one extreme to another from time to time
d. A force empowered by recent technological achievements
____ 104. The pendulum of globalization is embraced by:
a. Globalization's opponents and skeptics
b. Globalization's proponents and enthusiasts
c. Globalization's realists aware of historical cycles that globalization has gone through
d. Most MNEs and their lobbyists
____ 105. Which expression does the author use to describe contemporary globalization?
a. Global localization
b. Total globalization
c. Semiglobalization
d. Global standardization ____ 106. An institutional framework is made up of:
a. Regulatory and cognitive pillars
b. Formal and informal institutionsc. The political, economic, and legal systems of countries
d. None of these answers
____ 107. ____ are defined as "fundamental and comprehensive changes introduced to the formal and informal rules of
the game that affect organizations as players."
a. Opportunities
b. Transaction costs
c. Institutional transitions
d. Costs of doing business
____ 108. The institution-based view of global business focuses on the dynamic interaction among:
a. Institutions
b. Firms
c. Firm behaviors
d. All of these answers
____ 109. Jewish and Islamic law are examples of:
a. Common law
b. Theocratic law
c. Civil law
d. Quasi-democracy
____ 110. The TRIPS system was designed to
a. Support and oversee strict IPR protection.
b. Grant trademarks and patents.
c. Force firms to pay large attention to innovation.
d. Force firms to innovate while strictly adhering to IPR guidelines.
____ 111. In a collective society:
a. Family units are highly valued.
b. Being an entrepreneur is a popular mindset.
c. Being different than your neighbor is important.
d. Outsiders are easily trusted.
____ 112. Which of the following dimensions does NOT accurately describe the majority firms in the United States?
a. High Individualism
b. Low Power Distance
c. Low Uncertainty Avoidance
d. High Masculinity
____ 113. Which one of the following is NOT a major criticism against Hofstede's Dimensions Approach?
a. Hofstede's study focused on one company in one industry.
b. Hofstede conducted interviews in various languages resulting in mistranslations.
c. Hofstede still viewed the world with his own cultural bias.
d. Hofstede looked at national boundaries rather than cultural boundaries.
____ 114. Which is considered as a major driver behind economic growth in the East?
a. Atheism
b. Buddhism
c. Confucianism
d. Deism
____ 115. Which of the following is NOT a tangible asset?
a. Financial resources and capabilities
b. Physical resources and capabilities
c. Innovation resources and capabilities
d. Organizational resources and capabilities
____ 116. Which of the following is NOT an intangible asset?
a. Human resources and capabilities
b. Reputational resources and capabilities
c. Innovation resources and capabilities
d. All of these are intangible assets
____ 117. A chain of vertical activities used in the production of goods and services that add value is a(n):
a. Value chain
b. Vertical chain
c. Activity chain
d. None of these answers
____ 118. Which of the following are the four focal points of the resource-based view?
a. Value, return on investment, imitability, organizational aspects of resources and
capabilities
b. Validity, return on investment, imitability, organizational aspects of resources and
capabilities
c. Value, rarity, imitability, operation
d. Value, rarity, imitability, organizational aspects of resources and capabilities
____ 119. Which one of the following is an example of successful domestic firm that was not so successful
internationally?
a. IKEA
b. Toyota
c. Coca-Cola
d. Wal-Mart
____ 120. Widely practiced during the 1960s and 1700s, ____ viewed international trade as a zero-sum game.
a. Protectionism
b. Theory of mercantilism
c. Classical trade theories
d. Free trade
____ 121. The theory of absolute advantage is:
a. The idea that free market forces should determine how much to trade with little
government intervention.
b. The economic advantage one nation enjoys that is absolutely superior to other nations.
c. The idea that governments should actively protect domestic industries from imports and
vigorously promote exports.
d. The belief that held that the wealth of the world was fixed and that a nation that exported
more and imported less would enjoy the net inflows of gold and silver and thus become
richer.
____ 122. The relative advantage in one economic activity that one nation enjoys in comparison with other nations is
known as:
a. Theory of comparative advantage
b. Theory of absolute advantage
c. Free-trade advantage
d. Theory of nations advantage
____ 123. The policy to assist strategic advantage is known as:
a. Strategic trade policy
b. "Diamond" policy
c. Heckscher-Ohlin policy
d. Free trade policy ____ 124. Which of the following is the first theory to incorporate dynamic changes in patterns of trade:
a. Strategic trade
b. Mercantilism
c. Product life cycle
d. Absolute advantage
____ 125. ____ are restrictions on the quality of imports for specific periods of time.
a. Export restraints
b. Import quotas
c. Local content requirements
d. Antidumping duties ____ 126. A type of FDI in which firms moves upstream or downstream in different value chain stages in a host county
is identified as:
a. horizontal FDI
b. radical FDI
c. vertical FDI
d. FDI flow
____ 127. The amount of FDI moving in a given period in a certain direction is:
a. Downstream vertical FDI
b. Upstream vertical FDI
c. Horizontal FDI
d. FDI inflow
____ 128. Non-MNE firms can also do business abroad by:
a. Licensing and franchising
b. Outsourcing and engaging in FDI
c. Exporting and importing
d. All of these answers
____ 129. The share of FDI-based value added of foreign affiliates of MNEs in world GDP:
a. Declined from 10% in 1990 to 7% in 2006
b. Rose from 7% in 1990 to 10% in 2006
c. Declined from 25% in 1980's to 19% in 2006
d. Remained the same
____ 130. Prague is an attractive site as MNE's regional headquarters for Eastern Europe, is example of:
a. Knowledge spillovers
b. Location advantage
c. Industry demand
d. None of these answers ____ 131. Based on resource and institution based views, FDI is a reflection of:
a. Firms' responses to overcome market imperfections and failures.
b. Firms' motivation to extend firm-specific capabilities abroad.
c. Both firms' responses to market imperfections and their motivation to extend firm-specific
capabilities abroad.
d. International trade between two subsidiaries in two countries controlled by the same MNE
____ 132. The primary costs of FDI to host countries are:
a. Loss of sovereignty and patriotism
b. Adverse effects on competition and exports
c. Capital outflow
d. Loss of sovereignty, adverse effects on competition, and capital outflow
____ 133. Which debate focuses on whether recent anti-FDI incidents represent mere aberrations in the large
environment of having FDI friendlier policies or represent some routine occurrences in the future?
a. FDI versus outsourcing
b. Facilitating versus confronting inbound FDI c. Disinvestment versus FDI
d. Managing FDI in globalizing economies debate
____ 134. If a country's interest rate is high relative to other countries, the country will:
a. Develop a trade deficit.
b. Attract foreign funds.
c. Experience depreciation in its home currency.
d. Discourage foreign investing.
____ 135. Which of the following best describes a rate where selective government intervention works hand-in-hand
with allowing markets the freedom to work themselves out?
a. Floating rate
b. Fixed rate
c. Dirty float rate
d. Target exchange rate
____ 136. Which is NOT one of the primary types of foreign exchange transactions?
a. Swaps
b. Direct transactions
c. Spot transactions
d. Forward transactions
____ 137. Multinational enterprises looking to expand to another foreign market with potentially risky exchange rates
should:
a. Go ahead with the investment because most all foreign firms are able to use other
intangible resources to find a profit.
b. Look to other markets with more manageable currency risks.
c. Focus solely on domestic issues.
d. Patiently wait until the foreign market is no longer as risk ____ 138. The most (in)famous loophole in merchandise trade created through GATT was:
a. TRIPS
b. NTB
c. MFA
d. MBA
____ 139. Which one of the following was NOT part of the agenda of the Doha round?
a. Reducing agricultural subsidies in developing countries
b. Slashing tariffs in the industries that developing countries might benefit from
c. Freeing up trade in services
d. Strengthening intellectual property protection
____ 140. Which of the following was established within 12 countries of the EU?
a. A passport free travel zone (schengen)
b. Free flow of capital
c. Free flow (migration) of labor
d. All of these answers
____ 141. Which of the following regional integration is yet to be established?
a. Mercosur
b. Andean Community
c. FTAA
d. CAFTA
____ 142. Since the main trading partners of ASEAN members are EU, Japan, US, and China, the ACFTA has been
launched. Which of the following countries is NOT a member of ACFTA?
a. Four Tigers (Hong Kong, Singapore, South Korea, and Taiwan)
b. China c. Japan
d. EU and US
____ 143. Which of the following is NOT a defining characteristic of entrepreneurship?
a. Opportunity
b. Discovery
c. Exploration
d. Age
____ 144. Which of the following is NOT a part of VRIO?
a. Value
b. Resources
c. Imitability
d. Organization
____ 145. Which is not one of the four major characteristics associated with a growing entrepreneurial firm?
a. Growth
b. Financing
c. Inimitable
d. Internationalization
____ 146. Which is NOT one of the three broad modes for entering foreign markets?
a. Licensing/franchising
b. Direct exports
c. Microfinancing
d. Foreign direct investment ____ 147. ____ perform an important "middleman" function by linking sellers and buyers overseas.
a. Export intermediaries
b. Indirect exporters
c. Sporadic exporters
d. Alliance partners
____ 148. Which of the following statements most closely supports the "institutional" school of thought on the
motivation behind entrepreneurship?
a. Entrepreneurs are more likely to possess a stronger desire for achievement and are more
willing to take risks.
b. It is not what is in people's "blood" that makes or breaks entrepreneurship, but in their
environment.
c. Entrepreneurs are innately able to understand opportunities that create value.
d. The deviation from the norm of working for "bosses" is something that may be in the
"blood" of entrepreneurs.
____ 149. An advocate of globalization of every industry would most closely believe:
a. Firms need to enter culturally and institutionally close markets first and then gradually
move to use sophisticated strategies in distant markets.
b. Entrepreneurial firms need to internationalize rapidly in order to take advantage of new
opportunities.
c. New entrepreneurs will most likely "drown" in unfamiliar foreign waters.
d. Firms have a hard time overcoming substantial inertia because of their domestic
orientation. ____ 150. In the United States:
a. Entrepreneurs are shown a fair amount of leniency and assistance when claiming
bankruptcy
b. Entrepreneurs are easily scared away from starting entrepreneurial firms because of harsh
bankruptcy laws. c. Entrepreneurs never suffer any consequences if they file for bankruptcy.
d. Entrepreneurs rarely file for bankruptcy but rely more on informal financing in times of
trouble.
____ 151. The resource-based view argues that foreign firms need to:
a. Understand regulatory risks.
b. Employ overwhelming resources and capabilities to offset the liability of foreignness.
c. Understand the rules governing investing.
d. Be aware of trade and investment barriers.
____ 152. The motto for international business is:
a. Beat the competition to the marketplace
b. Set strategic goals
c. Partner with local companies
d. Location, Location, Location
____ 153. Favorable locations in certain countries may give firms:
a. Location-specific advantages
b. Opportunities for expansion
c. Access to new markets
d. All of these answers
____ 154. The benefits of large-scale market entries investments:
a. Assure local customers and suppliers you are here for the long haul
b. Demonstrate a commitment to a long-term investment in dollars and manpower
c. Show you are willing to take a risk
d. Indicate better control over distribution ____ 155. One advantage to exports is:
a. Marketing distance from customers
b. Concentration of resources on production
c. Trade barriers and protectionism
d. High transportation cost for bulky products
____ 156. One disadvantage for nonequity modes contractual agreements is:
a. Low development costs
b. Low risk in overseas expansion
c. Difficult to negotiate and enforce contracts
d. Ability to reach more customers
____ 157. One advantage to contractual agreements is:
a. Low development costs
b. Lack of long-term presence
c. Limited coordination
d. Creation of competitors
____ 158. One advantage to wholly owned subsidiaries is:
a. Protection of know-how
b. Complete equity and operation control
c. Fast entry speed
d. All of these answers
____ 159. Licensing/franchising agreements refer to:
a. Outsourcing agreements in R&D firms
b. A new corporate entity given birth to and jointly owned by two or more companies
c. Efforts among a number of firms to jointly market their products and services
d. The licensor/franchiser selling the rights to intellectual property ____ 160. Turnkey projects refer to: a. A non-equity mode of entry used to build a longer-term presence
b. Efforts among a number of firms to jointly market their products and services
c. Projects in which clients pay contractors to design and construct new facilities and train
personnel
d. Outsourcing agreements in R&D firms
____ 161. From a resource-based view, managers need to:
a. Develop more trained workers
b. Develop overwhelming capabilities to offset the liability of foreignness
c. Enter into more joint venture agreements
d. Outsource work to the lowest bidder
____ 162. Which of the following is an area of mathematics that studies how competing parties interact?
a. Explicit collusion
b. Game theory
c. Prisoner's dilemma
d. Competitive analysis
____ 163. Which is NOT one of the five factors attributed to collusion and incentives to cheat?
a. Low concentration ratio
b. Homogenous products
c. High entry barriers
d. Strong industry price leader ____ 164. The market balance between competition and cooperation as well as efficiency and fairness is guided by the
____.
a. Competition policy
b. Antitrust policy
c. Mutual forebearance
d. Multimarket competition
____ 165. Which combination of resource similarity and market commonality results in the most intense competition?
a. High resource similarity, low market commonality
b. Low resource similarity, high market commonality
c. Low resource similarity, low market commonality
d. High resource similarity, high market commonality
____ 166. If a firm wished to counterattack but then changed its mind because the attacked market is of marginal value,
this is an example of:
a. Motivation
b. Awareness
c. Timing
d. Capabilities
____ 167. Huawei's move into the US market is an example of which strategy?
a. Defender strategy
b. Extender strategy
c. Dodger strategy
d. Contender strategy ____ 168. While the filed complaint may have been over property license, which was the underlying issue behind the
Huawei versus Cisco case?
a. It was only about property rights.
b. It was about dumping.
c. It was about illegal predator pricing.
d. It was about a market attack and counterattack between highly competitive firms. ____ 169. A(n) ____ is a voluntary agreement between firms involving exchange, sharing, and co-developing of
products, technologies, and services.
a. Equity-based alliance
b. Strategic alliance
c. Merger
d. Acquisition
____ 170. Which of the following is NOT one of the three broad categories in value creation in an alliance?
a. Possibilities to use alliances as real options
b. Controlling the direction of the firm's investments
c. Reducing costs, risks, and uncertainties
d. Accessing complementary assets and learning opportunities
____ 171. ____ create value primarily by combining complementary resources, whereas ____ derive most of their value
by eliminating redundant resources.
a. Alliances; acquisitions
b. Acquisitions; alliances
c. Joint ventures; acquisitions
d. Joint ventures; alliances
____ 172. ____ refers to a manager's overconfidence in his or her abilities.
a. Hubris
b. Relational capability
c. Strategic fit
d. Learning by doing ____ 173. Which are the two primary pressures MNEs confront?
a. Ethics and governance
b. Cost reductions and local responsiveness
c. Liability of foreignness and investment risk
d. Local and foreign government
____ 174. Which strategy is most difficult to implement and is the most organizationally complex?
a. Localization strategy
b. Transnational strategy
c. Home replication strategy
d. Global standardization
____ 175. Which of the following is a leading problem with the international division organizational structure?
a. It is not locally responsive.
b. It tends to be phased out first when a firm faces domestic challenges.
c. It is too locally responsive
d. The management team is duplicated, creating organizational confusion.
____ 176. Which best describes the tension between central control and subsidiary initiative in a large firm?
a. The central management must realize social capital in order to take advantages of the
complex subsidiary relationships.
b. The central management's main motivation is value for the firm, so it will only give
subsidiaries greater responsibility if they create value.
c. The central management may want to give subsidiaries control and encourage
entrepreneurship and innovation, but it is difficult to distinguish between good faith
subsidiary initiative and opportunism.
d. All of the answers
____ 177. Which of the following is NOT one of the major management strategies?
a. Understand and be prepared to change the internal rules of the game governing MNE
management.
b. Understand and carefully control subsidiaries and minimize autonomous and locally
dependent teams.
c. Understand and master the external rules of the game governing MNEs and home/host
country environments.
d. Develop learning and innovation capabilities to leverage multinational presence as an
asset.
____ 178. Which of the following is NOT one of the four segments of global consumers?
a. Global citizens
b. Global activists
c. Antiglobals
d. Global agnostics
____ 179. Which best describes the positive or negative perception of firms and products from a certain country?
a. Total cost of ownership
b. Country promotion
c. Sellers' image
d. Country of origin effect
____ 180. What is known as the set of firms that facilitate the movement of goods from producers to consumers?
a. Supply chain
b. Product chain
c. Distribution channel
d. Marketing mix
____ 181. Which best describes why the supply chain is so important?
a. Supply chains are no more important than the rest of the business structure.
b. The supply chain management handles the entire processes of value creation, which is the
whole reason for the firm.
c. It is the way consumers get their products.
d. Distribution channels are getting more complex, so supply chain efficiency is crucial.
____ 182. Which of the following is not one of the triple As behind supply chain management?
a. Advantage
b. Agility
c. Alignment
d. Adaptability
____ 183. Alignment in the supply chain is best defined as:
a. The joining of interests of various players involved in the supply chain.
b. The ability to change supply chain configurations in response to long-term changes in the
environment and technology.
c. The ability to quickly react to unexpected shifts in supply and demand.
d. The way to identify consumers who differ from others in purchasing behavior.
____ 184. Which part of the supply chain was affected by the terrorist attacks on September 11, 2001?
a. Agility
b. Adaptability
c. Alignment
d. All of these answers
____ 185. The majority of MNEs' employees would be:
a. HCNs
b. PCNs
c. TCNs
d. Multinationals
____ 186. An ethnocentric staffing policy: a. Utilizes host country nationals in key foreign management and technical positions.
b. Assigns expatriates who have learned the language and culture of the country of their
assignment.
c. Is required in order to prepare home country citizens for high-level managerial positions at
headquarters.
d. None of these answers
____ 187. Factors in an expatriate selection decision are:
a. Corporate headquarters preferences and host country/subsidiary preferences
b. Corporate headquarters preferences, host country/subsidiary preferences, and language
skills
c. Host country/subsidiary preferences and language skills
d. Corporate headquarters preferences and language skills
____ 188. Which of the following is NOT a going rate approach advantage?
a. Simplicity
b. Identification with host country
c. Equality among PCNs, TCNs, and HCNs in the same location
d. Facilitates expatriate re-entry
____ 189. MNEs are rushing into ____, whereby the local supply of top talent is limited.
a. Japan
b. Mexico
c. Eastern Europe
d. Brazil, Russia, India, and China ____ 190. Resource-based view focuses on:
a. Value and rarity
b. Imitability
c. Organization and value
d. Value, rarity, imitability, and organization
____ 191. IT inpatriates from India go to work for IBM in the United States and the telecom inpatriates from China to
work at Alcatel in France. These are examples of:
a. Inpatriation versus expatriation
b. Best fit versus best practice
c. Emphasizing teamwork
d. Across-the-board pay versus reduction in force
____ 192. Human resource management is indeed:
a. Strategic
b. One-dimensional
c. Simplistic
d. Cost prohibitive
____ 193. Shareholders' willingness to work with managers refers to:
a. Exit-based mechanism
b. Voice-based mechanism
c. Market for private equity
d. Market for product competition ____ 194. ____ has a relatively active market for corporate control and a large number of firms with concentrated
ownership and control
a. China
b. Russia
c. Canada
d. The United States ____ 195. ____ argues that among a number of firms governed by the same set of rules, some excel more than others
because of differences in firm-specific capabilities that leverage advantage in corporate governance.
a. The resource-based view
b. The global convergence versus divergence debate
c. The institution-based view
d. The opportunistic agents versus managerial steward's debate
____ 196. The recent changes in corporate governance around the world can be identified as:
a. The rise of capitalism
b. The global diffusion of "best practices"
c. The impact of globalization
d. All of these answers
____ 197. Which acronym represents Starbucks guidelines to ensure the sustainable supply of high-quality coffee,
achieve economic accountability, promote social responsibility within coffee supply chain, and protect the
environment?
a. NOVA
b. NGO
c. CSR
d. CAFÉ
____ 198. What is defined as the ability to meet the needs of the present without compromising the ability of future
generations to meet their needs?
a. Capitulation
b. Global sustainability
c. Corporate social responsibility
d. Social activism ____ 199. Home Depot and Lowe's both being able to monitor that their lumber suppliers in Latin America are only
working out of renewable forests is an example of valuable capabilities but low ____.
a. Rarity
b. Imitability
c. Organization
d. Value
____ 200. Which of the following best describes the "pollution haven" problem?
a. Automobiles in developed countries are necessary for commerce but the largest producer
of local pollution.
b. Many developing countries purposefully keep environmental regulations low to attract
investors and businesses.
c. Container ships, cargo vessels, and tankers that act as the backbone of internalized firms
are polluting the earth's oceans.
d. MNEs in developing countries hold on to higher environmental standards than what their
host country usually requires. Essay 201. Explain by illustrating examples from the opening case in Chapter 1 how "the winds of global change"
impacted the book you are using for this course.
202. Are domestic firms successfully positioned to go global? Support your answer with an example.
203. Describe what it means for a country to peg its currency to another, and give two benefits to this policy.
204. Discuss why a manager may not want to practice currency hedging.
205. Identify and describe two of the arguments that managers in the US make regarding antitrust law. dear student if you want this solved assignment the please kindly email me for request of solved assignment on my email id solve zone@gmail.com after received your email with your qustion atteched then we can reply you price of solve this assignment
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