Question 1

The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the

Accepted Answer

A)   International model.
B)   Multinational model.
C)   Global model.
D)   Transnational model.
E)   Multimedia model.F) B) and E)
G) A) and D)

Question 2

An advantage of licensing as a method of entering global competition is that the

Accepted Answer

A)   Licensing company need not bear the costs and risks of opening up an overseas market.
B)   Licensing company has control over its technology.
C)   Licensing company has control over quality levels.
D)   Licensing company has lower communication costs.
E)   Licensee has lower production costs.F) All of the above
G) B) and D)

Question 3

The international model of organizational structure consists of

Accepted Answer

A)   Large low-cost manufacturing facilities located in selected locations with products exported to various subsidiaries.
B)   Subsidiaries located in countries where the company does business with much of the control exercised by the parent company.
C)   Subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries.
D)   Manufacturing various components at appropriate sites and assembling the components at national subsidiaries.
E)   Global services.F) C) and D)
G) A) and B)

Question 4

The value of U.S. imports from China is more than five times the value of U.S. exports to China.

Accepted Answer

A) True 
 B)False

Question 5

What are the pros and cons of using expatriates, host-country nationals, and third-country nations to run overseas operations? If you were expanding your business, which approach would you use?

Accepted Answer

There are several pros and cons to consi...

Question 6

Hershey uses __________ to participate in the global marketplace.

Accepted Answer

A)   licensing
B)   franchising
C)   exporting
D)   joint ventures
E)   wholly owned subsidiariesF) A) and E)
G) None of the above

Question 7

Which of the following is a reason why some companies prefer to use expatriates at their overseas operations?

Accepted Answer

A)   It can cost three to four times as much to use host-country nationals, compared to expatriates.
B)   Expatriates are often able to transfer the corporate culture and best practices to other countries.
C)   The personal security of host-country nationals may be an issue in some developing countries.
D)   Governments may provide incentives to employ expatriates.
E)   All of these are reasons why some organizations prefer to use expatriates.F) A) and B)
G) B) and C)

Question 8

NAFTA had an immediate and negative effect on the U.S. automobile industry.

Accepted Answer

A) True 
 B)False

Question 9

Offshoring occurs when an organization contracts with an outside provider to produce one or more of an organization's products or services.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an advantage of a wholly owned subsidiary as a global entry strategy?

Accepted Answer

A)   The company may gain access to new knowledge or technologies.
B)   The partner will share the costs of operating overseas.
C)   This method has the highest transportation costs for finished goods.
D)   This method minimizes the risks of overseas operations.
E)   This method gives a company tight control over operations in other countries.F) A) and D)
G) A) and C)

Question 11

The __________ organizational model is designed to enable a company to market a standardized product in the global marketplace and to manufacture that product in a limited number of locations where the mix of costs and skills is most favorable.

Accepted Answer

A)   international
B)   multinational
C)   global
D)   transnational
E)   multimediaF) B) and E)
G) A) and D)

Question 12

Transnational companies are companies that produce products in one country and export these products to many overseas countries.

Accepted Answer

A) True 
 B)False

Question 13

Using host-country nationals at an overseas subsidiary is generally more expensive than using expatriates.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a consequence of an increasingly integrated global economy?

Accepted Answer

A)   World output and trade have decreased to a dramatically low level.
B)   Many companies find their home markets under attack from foreign competition.
C)   Companies are making foreign direct investments at home.
D)   Imports are failing to penetrate deeper into the world's largest economies.
E)   There are reduced opportunities for global trade.F) None of the above
G) A) and B)

Question 15

__________ is the tendency to judge others by the standards of one's group or culture, which are seen as superior.

Accepted Answer

A)   Individualism
B)   Power distance
C)   Uncertainty avoidance
D)   Ethnocentrism
E)   ExpatriotismF) A) and B)
G) A) and C)

Question 16

In order to achieve cost economies, Apex Manufacturing bases its production plants in Mexico and gets its engineering services from skilled workers in Germany. Apex is using the __________ model of organizational structure.

Accepted Answer

A)   international
B)   multinational
C)   global
D)   transnational
E)   intranationalF) C) and E)
G) None of the above

Question 17

Jennifer has been assigned to manage an operation in Venezuela. Upon her arrival she encouraged all of her employees (native Venezuelans)  to feel free to individually approach her with ideas on improving operations. After many months, no employees had offered suggestions. Jennifer should have realized that Venezuelan culture not only has a _________ degree of collectivism but accepts a _________ power distance.

Accepted Answer

A)   low; small
B)   low; large
C)   high; large
D)   high; small
E)   There is not enough information in this example to determine an answer.F) All of the above
G) B) and E)

Question 18

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

Accepted Answer

A)   Ethnocentric.
B)   Flexible.
C)   Extremely self-confident and assertive.
D)   Likes familiarity.
E)   Avoids criticism.F) B) and C)
G) A) and B)

Question 19

Culture shock is the disorientation and stress associated with being in a foreign environment.

Accepted Answer

A) True 
 B)False

Question 20

One consequence of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies, such as that of the United States.

Accepted Answer

A) True 
 B)False

Exam 6: International Management

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

Correct Answer
verified

Offshoring occurs when an organization contracts with an outside provider to produce one or more of an organization's products or services.

Correct Answer
verified

Which of the following is a consequence of an increasingly integrated global economy?

Correct Answer
verified

Transnational companies are companies that produce products in one country and export these products to many overseas countries.

Correct Answer
verified

Hershey uses __________ to participate in the global marketplace.

Correct Answer
verified

The __________ organizational model is designed to enable a company to market a standardized product in the global marketplace and to manufacture that product in a limited number of locations where the mix of costs and skills is most favorable.

Correct Answer
verified

In order to achieve cost economies, Apex Manufacturing bases its production plants in Mexico and gets its engineering services from skilled workers in Germany. Apex is using the __________ model of organizational structure.

Correct Answer
verified

The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the

Correct Answer
verified

Culture shock is the disorientation and stress associated with being in a foreign environment.

Correct Answer
verified

Which of the following is an advantage of a wholly owned subsidiary as a global entry strategy?

Correct Answer
verified

An advantage of licensing as a method of entering global competition is that the

Correct Answer
verified

The value of U.S. imports from China is more than five times the value of U.S. exports to China.

Correct Answer
verified

One consequence of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies, such as that of the United States.

Correct Answer
verified

Using host-country nationals at an overseas subsidiary is generally more expensive than using expatriates.

Correct Answer
verified

__________ is the tendency to judge others by the standards of one's group or culture, which are seen as superior.

Correct Answer
verified

The international model of organizational structure consists of

Correct Answer
verified

What are the pros and cons of using expatriates, host-country nationals, and third-country nations to run overseas operations? If you were expanding your business, which approach would you use?

Correct Answer
Answered by ExamLex AI
There are several pros and cons to consi...
View Answer

Correct Answer
verified

Which of the following is a reason why some companies prefer to use expatriates at their overseas operations?

Correct Answer
verified

NAFTA had an immediate and negative effect on the U.S. automobile industry.

Correct Answer
verified

Exam 6: International Management

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

Correct AnswerverifiedShow Answer

Offshoring occurs when an organization contracts with an outside provider to produce one or more of an organization's products or services.

Correct AnswerverifiedShow Answer

Which of the following is a consequence of an increasingly integrated global economy?

Correct AnswerverifiedShow Answer

Transnational companies are companies that produce products in one country and export these products to many overseas countries.

Correct AnswerverifiedShow Answer

Hershey uses __________ to participate in the global marketplace.

Correct AnswerverifiedShow Answer

The __________ organizational model is designed to enable a company to market a standardized product in the global marketplace and to manufacture that product in a limited number of locations where the mix of costs and skills is most favorable.

Correct AnswerverifiedShow Answer

In order to achieve cost economies, Apex Manufacturing bases its production plants in Mexico and gets its engineering services from skilled workers in Germany. Apex is using the __________ model of organizational structure.

Correct AnswerverifiedShow Answer

The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the

Correct AnswerverifiedShow Answer

Culture shock is the disorientation and stress associated with being in a foreign environment.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a wholly owned subsidiary as a global entry strategy?

Correct AnswerverifiedShow Answer

An advantage of licensing as a method of entering global competition is that the

Correct AnswerverifiedShow Answer

The value of U.S. imports from China is more than five times the value of U.S. exports to China.

Correct AnswerverifiedShow Answer

One consequence of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies, such as that of the United States.

Correct AnswerverifiedShow Answer

Using host-country nationals at an overseas subsidiary is generally more expensive than using expatriates.

Correct AnswerverifiedShow Answer

__________ is the tendency to judge others by the standards of one's group or culture, which are seen as superior.

Correct AnswerverifiedShow Answer

The international model of organizational structure consists of

Correct AnswerverifiedShow Answer

What are the pros and cons of using expatriates, host-country nationals, and third-country nations to run overseas operations? If you were expanding your business, which approach would you use?

Correct AnswerAnswered by ExamLex AIThere are several pros and cons to consi...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a reason why some companies prefer to use expatriates at their overseas operations?

Correct AnswerverifiedShow Answer

NAFTA had an immediate and negative effect on the U.S. automobile industry.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
Answered by ExamLex AI
There are several pros and cons to consi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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