1) Experts suggest that firms that want to globalize
through e-commerce must first localize, which means that firms need to
use
local suppliers, vendors, and distributors to manufacture products for the
local market
modify
their products and services to meet the needs and interests of local
cultures
sell
their products in a brick-and-mortar store before selling them through an
e-market
test
their products and services in local markets before selling them over the
Internet
2) Which of the following behaviors is
inconsistent with Casse’s profile of successful American
negotiators?
Refusing
to make concessions in advance
Exhibiting
a good sense of
timing
Being
quiet and not arguing
Understanding
the issues
3) Dell most likely offshores product support
service jobs to India because of the
superior
technical knowledge of Indian workers
extensive
call center experience of Indian workers
lower
payroll costs associated with Indian
workers
customer
preference for interacting with Indian workers
4) In the context of doing business in Asia,
what is meant by the phrase “the contract is in the relationship, not on
the
paper”?
Asian
contracts are not legally binding for
MNCs.
Contracts
are ceremoniously destroyed after they are
written.
Managers
risk being offensive to Asians by requiring
contracts.
Managers
should nurture the relationship to ensure the reliability of the contract.
5) The ________ model of leadership style has
been recommended by American research studies as one more likely to have
positive results with American
employees.
autocratic
charismatic
transactional
participative
6) Which of the following is a similarity
between the negotiation styles of both North Americans and Latin
Americans?
Emotional
sensitivity is highly valued.
A
strong commitment is shown to the
employer.
Significant
importance is given to documentation.
Negotiators
are argumentative when they think they are right.

7) Arab negotiators will most likely make
concessions because of their interest in
saving
valuable time
preventing
embarrassment
forming
long-term relationships
implementing
spontaneous decisions
8) According to research, what is the most
significant monetary benefit for firms that implement corporate social
responsibility?
Employee
retention
High
recruitment rates
Increased
brand value
Improved
organizational culture
9) Which of the following statements about
the Foreign Corrupt Practices Act (FCPA) is NOT true?
The
FCPA allows grease payments as long as they are lawful in the host
country.
Possible
penalties for violating the FCPA include severe fines and
imprisonment.
The
FCPA allows firms to give government officials gifts in exchange for
help.
The
FCPA applies only to U.S.-based multinational corporations.
10) John Smith travels back and forth between the
United States and Saudi Arabia as an international manager. On John’s most
recent trip to Saudi Arabia, he presents his business associate, Tariq Ahmed,
with a silk scarf. The scarf is intended as a gift for Tariq’s wife. John’s
actions will most likely be viewed by Tariq
as
a
thoughtful gesture from the American
an
inappropriate and impolite gesture
a
bribe punishable by imprisonment
an
obligation that must be reciprocated
11) Stereotyping should most likely be avoided by
international managers
because
current
variables of culture are grossly
inaccurate
many
cultures have diverse subcultures
many
countries outlaw the
practice
national
culture is nonexistent
12) Sweden barring airlines from transmitting
passenger information most likely illustrates
the
dependence
on the Internet by Swedish
citizens
lax
enforcement of privacy rights in Sweden
importance
of the Internet to international business
impact
of culture on Internet usage
13) Which of the following is the primary reason for
ineffective cross-cultural business
negotiations?
Insufficient
knowledge about native bargaining
rituals
Highly
restrictive government legislation
Poorly
planned business strategies
Language
differences
14) Most small and medium-sized enterprises
are
competing
only on the local level due to technological and financial constraints
investing
heavily in world markets by offshoring their labor
activities
contributing
to their national economies through exporting
attempting
to avoid becoming globalized too quickly
15) What is the best method for avoiding
miscommunications?
Taking
detailed notes
Learning
foreign phrases
Practicing
projective listening
Relying
on a language interpreter
16) Problems associated with cross-cultural
negotiations and decision making styles are the primary reasons for
lawsuits
filed against MNCs by angry shareholders
decreasing
numbers of international joint ventures
increasing
regulations within the European Union
economic
hardships in former socialist countries
17) Which of the following significantly increases
the complexity of corporate social responsibility for MNCs?
distance
between the home office and the
subsidiaries
difficult
nature of training managers in different
cultures
additional
stakeholders associated with the firm’s activities
international
laws, regulations, and moral principles
18) Primo is a multinational enterprise based in
California that manufactures and sells affordably priced athletic shoes in
retail stores around the world. A Primo manufacturing subsidiary in China
employs over 20,000 locals. Primo executives recently learned of human rights
violations at the firm’s China subsidiary. Workers had been forced to work more
than 60 hours each week, and minimum wage laws were regularly ignored. As a
result, Primo executives need to decide whether to continue operations in
China. Which of the following, if true, would best support a decision by Primo
to remain in China?
Primo
becomes SA8000 certified.
Sales
of Primo’s competitors drop sharply.
U.S.
manufacturing jobs decrease in number.
More
service sector jobs become available in China.
19) Which of the following is a common Chinese
tactic used during negotiations with Americans?
Refusing
to answer the Americans’ questions or respond to their
inquiries
Suggesting
that the Americans are reneging on their
friendship
Refusing
to compromise until the last possible
moment
Asking
for concessions relating to product delivery time
20) What is the most likely reason that over half of
the Saudi workforce consists of
foreigners?
High
wage rates and low taxes for expatriates at Saudi-based MNEs
Negative
attitudes among Saudi Arabians regarding hard work
Saudi
Arabia’s tight restrictions on male and female workers
Lack
of Saudi government support for university training
21) A French businessman has a meeting scheduled
with a Brazilian businessman to negotiate terms of a joint venture. The
Frenchman prepares for the meeting in the way he always does when negotiating
with French firms. The Frenchman assumes that the Brazilian will perceive and
reason the way he does. Which of the following terms best describes the
Frenchman’s mistake?
cognitive
dissonance
moral
idealism
parochialism
projective
cognitive similarity
22) Which of the following best explains why Avon
expanded to the international
market?
Increased
domestic competition in the door-to-door cosmetic industry
Increased
number of American women in the workforce
Decreased
restrictions on cosmetics in the Chinese market
Decreased
number of qualified sales representatives in the United States
23) John is an American manager working at his
firm’s subsidiary in Indonesia. A local government official tells John that
materials could be delivered to the firm’s facility more quickly if John pays
an extra fee to the port supervisor. What should be John’s first
action?
Consult
his supervisor in the United States.
Discuss
the issue with his local agent.
Refer
to the company’s code of ethics.
Consult
both American and Indonesian laws.
24) An international manager can best develop an
understanding of a particular culture
by
creating
a cultural profile for that country or region in which the firm does
business
assuming
that American cultural styles and practices can be successfully transplanted
using
stereotypes to develop cross-cultural understanding in a business setting
hiring
locals rather than expatriates for management positions in overseas
subsidiaries
25) Tom manages a U.S. pharmaceutical subsidiary
located in Ireland. In order to communicate effectively with Irish employees,
Tom should most likely
speak
explicitly and
directly
demand
that specific results be met
provide
positive support to
workers
address
conflicts during group meetings
26) Which of the following is a typical value in
U.S. culture?
Employment
is for a lifetime.
Success
occurs because of luck.
Commitments
should be honored.
Schedules
are relative to other priorities.
27) A person working in a high-contact culture will
most likely experience which of the following?
Co-workers
spending time together socially
Managers
using hand motions to express emotion
Managers
speaking to subordinates quickly and rudely
Co-workers
greeting each other with a double handshake
28) How will negotiators most likely benefit from
exhibiting an understanding of the opponents’ viewpoints during presentations?
Opponents
succumb quicker to concession strategies than to aggressive bargaining tactics.
Considering
both sides promotes the assessment of a wide range of resolution alternatives.
Emotional
appeals not backed by information will be more persuasive to skeptical opponents.
Cultural
norms demand that each side share their weaknesses during the negotiation
process.
29) Contingency theory proposes that the best
organizational structure is that
which
enables
a firm to globalize
quickly
leads
to a high-efficiency work system
provides
for balanced control of subsidiaries
allows
the firm to carry out its strategic goals
30) Trust most likely improves cross-cultural
communication by
enabling
managers to network
effectively
replacing
formal legal contracts for global firms
encouraging
the open exchange of ideas and information
eliminating
all variables that hinder the communication process
1) Experts suggest that firms that want to globalize
through e-commerce must first localize, which means that firms need touse
local suppliers, vendors, and distributors to manufacture products for the
local market modify
their products and services to meet the needs and interests of local
cultures sell
their products in a brick-and-mortar store before selling them through an
e-market test
their products and services in local markets before selling them over the
Internet 2) Which of the following behaviors is
inconsistent with Casse’s profile of successful American
negotiators? Refusing
to make concessions in advance Exhibiting
a good sense of
timing Being
quiet and not arguing Understanding
the issues 3) Dell most likely offshores product support
service jobs to India because of the superior
technical knowledge of Indian workersextensive
call center experience of Indian workers lower
payroll costs associated with Indian
workers customer
preference for interacting with Indian workers 4) In the context of doing business in Asia,
what is meant by the phrase “the contract is in the relationship, not on
the
paper”? Asian
contracts are not legally binding for
MNCs. Contracts
are ceremoniously destroyed after they are
written. Managers
risk being offensive to Asians by requiring
contracts. Managers
should nurture the relationship to ensure the reliability of the contract. 5) The ________ model of leadership style has
been recommended by American research studies as one more likely to have
positive results with American
employees. autocratic charismatic transactionalparticipative 6) Which of the following is a similarity
between the negotiation styles of both North Americans and Latin
Americans? Emotional
sensitivity is highly valued. A
strong commitment is shown to the
employer. Significant
importance is given to documentation. Negotiators
are argumentative when they think they are right. 7) Arab negotiators will most likely make
concessions because of their interest in saving
valuable time preventing
embarrassment forming
long-term relationships implementing
spontaneous decisions 8) According to research, what is the most
significant monetary benefit for firms that implement corporate social
responsibility? Employee
retentionHigh
recruitment rates Increased
brand value Improved
organizational culture 9) Which of the following statements about
the Foreign Corrupt Practices Act (FCPA) is NOT true? The
FCPA allows grease payments as long as they are lawful in the host
country. Possible
penalties for violating the FCPA include severe fines and
imprisonment. The
FCPA allows firms to give government officials gifts in exchange for
help. The
FCPA applies only to U.S.-based multinational corporations. 10) John Smith travels back and forth between the
United States and Saudi Arabia as an international manager. On John’s most
recent trip to Saudi Arabia, he presents his business associate, Tariq Ahmed,
with a silk scarf. The scarf is intended as a gift for Tariq’s wife. John’s
actions will most likely be viewed by Tariq
as a
thoughtful gesture from the American an
inappropriate and impolite gesture a
bribe punishable by imprisonment an
obligation that must be reciprocated11) Stereotyping should most likely be avoided by
international managers
because current
variables of culture are grossly
inaccurate many
cultures have diverse subculturesmany
countries outlaw the
practice national
culture is nonexistent12) Sweden barring airlines from transmitting
passenger information most likely illustrates
the dependence
on the Internet by Swedish
citizens lax
enforcement of privacy rights in Sweden importance
of the Internet to international business impact
of culture on Internet usage13) Which of the following is the primary reason for
ineffective cross-cultural business
negotiations? Insufficient
knowledge about native bargaining
rituals Highly
restrictive government legislationPoorly
planned business strategies Language
differences14) Most small and medium-sized enterprises
are competing
only on the local level due to technological and financial constraints investing
heavily in world markets by offshoring their labor
activities contributing
to their national economies through exporting attempting
to avoid becoming globalized too quickly15) What is the best method for avoiding
miscommunications?Taking
detailed notes Learning
foreign phrases Practicing
projective listening Relying
on a language interpreter16) Problems associated with cross-cultural
negotiations and decision making styles are the primary reasons for lawsuits
filed against MNCs by angry shareholders decreasing
numbers of international joint ventures increasing
regulations within the European Union economic
hardships in former socialist countries17) Which of the following significantly increases
the complexity of corporate social responsibility for MNCs?distance
between the home office and the
subsidiaries difficult
nature of training managers in different
cultures additional
stakeholders associated with the firm’s activities international
laws, regulations, and moral principles18) Primo is a multinational enterprise based in
California that manufactures and sells affordably priced athletic shoes in
retail stores around the world. A Primo manufacturing subsidiary in China
employs over 20,000 locals. Primo executives recently learned of human rights
violations at the firm’s China subsidiary. Workers had been forced to work more
than 60 hours each week, and minimum wage laws were regularly ignored. As a
result, Primo executives need to decide whether to continue operations in
China. Which of the following, if true, would best support a decision by Primo
to remain in China? Primo
becomes SA8000 certified.Sales
of Primo’s competitors drop sharply. U.S.
manufacturing jobs decrease in number. More
service sector jobs become available in China.19) Which of the following is a common Chinese
tactic used during negotiations with Americans?Refusing
to answer the Americans’ questions or respond to their
inquiries Suggesting
that the Americans are reneging on their
friendship Refusing
to compromise until the last possible
moment Asking
for concessions relating to product delivery time20) What is the most likely reason that over half of
the Saudi workforce consists of
foreigners? High
wage rates and low taxes for expatriates at Saudi-based MNEsNegative
attitudes among Saudi Arabians regarding hard workSaudi
Arabia’s tight restrictions on male and female workersLack
of Saudi government support for university training21) A French businessman has a meeting scheduled
with a Brazilian businessman to negotiate terms of a joint venture. The
Frenchman prepares for the meeting in the way he always does when negotiating
with French firms. The Frenchman assumes that the Brazilian will perceive and
reason the way he does. Which of the following terms best describes the
Frenchman’s mistake? cognitive
dissonance moral
idealism parochialismprojective
cognitive similarity22) Which of the following best explains why Avon
expanded to the international
market? Increased
domestic competition in the door-to-door cosmetic industryIncreased
number of American women in the workforce Decreased
restrictions on cosmetics in the Chinese market Decreased
number of qualified sales representatives in the United States23) John is an American manager working at his
firm’s subsidiary in Indonesia. A local government official tells John that
materials could be delivered to the firm’s facility more quickly if John pays
an extra fee to the port supervisor. What should be John’s first
action? Consult
his supervisor in the United States. Discuss
the issue with his local agent. Refer
to the company’s code of ethics. Consult
both American and Indonesian laws.24) An international manager can best develop an
understanding of a particular culture
by creating
a cultural profile for that country or region in which the firm does
business assuming
that American cultural styles and practices can be successfully transplantedusing
stereotypes to develop cross-cultural understanding in a business setting hiring
locals rather than expatriates for management positions in overseas
subsidiaries25) Tom manages a U.S. pharmaceutical subsidiary
located in Ireland. In order to communicate effectively with Irish employees,
Tom should most likely speak
explicitly and
directly demand
that specific results be met provide
positive support to
workers address
conflicts during group meetings26) Which of the following is a typical value in
U.S. culture? Employment
is for a lifetime. Success
occurs because of luck.Commitments
should be honored. Schedules
are relative to other priorities.27) A person working in a high-contact culture will
most likely experience which of the following?Co-workers
spending time together sociallyManagers
using hand motions to express emotionManagers
speaking to subordinates quickly and rudelyCo-workers
greeting each other with a double handshake28) How will negotiators most likely benefit from
exhibiting an understanding of the opponents’ viewpoints during presentations?Opponents
succumb quicker to concession strategies than to aggressive bargaining tactics.Considering
both sides promotes the assessment of a wide range of resolution alternatives.Emotional
appeals not backed by information will be more persuasive to skeptical opponents. Cultural
norms demand that each side share their weaknesses during the negotiation
process.29) Contingency theory proposes that the best
organizational structure is that
which enables
a firm to globalize
quickly leads
to a high-efficiency work system provides
for balanced control of subsidiaries allows
the firm to carry out its strategic goals30) Trust most likely improves cross-cultural
communication byenabling
managers to network
effectively replacing
formal legal contracts for global firmsencouraging
the open exchange of ideas and information eliminating
all variables that hinder the communication process