Quiz Review

Flashcard maker : Lily Taylor
A factory, located in a Mexican border town, that imports materials and equipment on a duty and tariff-free basis for assembly or manufacturing and re-exports is called a:
The ultimate objective of the EU is to:
Eliminate barriers among member countries
The asian economic block, made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Cambodia, Myanmar and Vietnam is referred to as:
Association of Southeast Asian Nations (ASEAN)
Agreements like NAFTA and CAFTA:
Not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights
A ____ is comparable to a monopoly in the sense that the organization, in this case the government, has explicit control over the price and supply of a good or service
Command economy
Which of the following statements is true with regard to the economy of Poland?
Political instability and risk, large external debts, a deteriorating infrastructure and only modest education levels have led to continuing economic problems in Poland
The term used to indicate the amount invested in property, plant, and equipment in another country is:
Foreign direct investment
Which of the following statements is false with regard to a mixed economy?
Businesses in this model are owned by the state to ensure that investments and practices are done in the best interest of the nation despite the often opposing outcomes
The global organization of countries that oversees rules and regulations for international trade and investments, including agriculture, intellectual property, services, competition, and subsidies is the:
To qualify as a multinational corporation, a firm must meet all of the following criteria except:
Sales of at least one million dollars per year
Which country receives the most foreign direct investment (FDI) by U.S. companies?
Great Britain
A free-trade agreement between the United States, Canada, and Mexico that has removed most barriers to trade and investment is:
A keiretsu is a government agency in Japan
The United States, Canada, and Mexico make up the ___, which in essence has removed all barriers to trade between these countries and created a huge North American market
North American Free Trade Agreement
The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments is:
International Management
Which of the following statements is true of the economic system of North America?
The free-market-based economy of the region allows for more freedom in decision-making processes of private firms
The following are characteristics of the BRIC economies except:
Demand for higher priced goods is expected to continue to be low in the future
The process by which companies undertake some activities at offshore locations instead of in their countries of origin is:
The former communist countries that have become most visible in the international arena include:
Poland, Hungary, and the Czech Republic
Identify the statement that is false of globalization
It is the process of a business crossing national and cultural borders
One of the biggest impediments to attracting more foreign investment in Russia is:
Political corruption
International law includes the following types of jurisdictional principles:
National, territoriality, and protective
Critics of the Foreign Corrupt Practices Act feared the loss of sales to foreign competitors, especially in those countries where:
Bribery is an accepted means
MNCs are unwilling to put up high investments unless they are assured of:
Operating control on their investment in telecommunications
____ law comes from the Marxist socialist system and continues to influence regulations in former communist countries, especially those from the former Soviet Union, as well as present-day China, Vietnam, North Korea, and Cuba
Which of the following are characteristics of fascism?
U.S. laws require equality in the workplace for all employees, U.S. citizens who take a job in Japan cannot sue their Japanese employer under the provisions of U.S. law for failure to provide equal opportunity for them. This is in line with the:
Principle of sovereignty
Which country does not rank huh on the ease-of-doing-business index?
The Philippines
Japanese companies are aware that their dependency on the world market for many goods and services is negatively impacted by ____, resulting in local consumers paying the price
___ has placed pressure on MNCs to outsource production
Mounting cost pressure and profit expectations
Under the ____, all acts of other governments are considered to be valid by U.S. courts, even if such acts are inappropriate in the United States
Act of state doctrine
The ____ principle holds that every nation has the right of jurisdiction within its legal territory
Identify from the following the correct statement on civil law
It is derived from Roman law and is found in nonsocialist countries
Aristotle and David Hume contributed to the principle of:
The area of e-business that will most affect global consumers is:
E-retailing and financial services
Communism as an economic system has failed due to the tendency of common goals to stunt:
Progression and individual creativity
Some observers have noted that technology already has eliminated much and in the future will eliminate even more of the work now begin done by:
Middle managers and white-collar staff
Political repression and denial of rights and civil liberties are dominant ideals of:
The totalitarian form of government is to be seen in
Vietnam, Cuba, and North Korea
Countries have the legal right to refuse admission of forge in citizens and to impose special restrictions on the following except:
A company with a ____ predisposition allows the values and interests of the parent to company to guide the strategic decision
In regard to the cultural dimension, “What is the conception of space?” the dominant characteristic for American managers is”
In China, the term guanxi means:
Good connections
What matches a firms predisposition with its culture?
An MNC with an ethnocentric predisposition:
Takes back its profits to its home country
Behavioral practices that affect doing business in China?
The Chinese are proud of their economic accomplishments and want to share these feelings with outsiders
The word namaste means “greetings to you” in:
In which of the following countries are spots viewed as cultural events and reviewed as if they were literature or films?
The following selections accurately reflects labor relations in Germany:
Be prepared for high wages and short work week; expect high productivity from unionized workers
The following country prefers advertising that is factual and rational:
In Great Britain, Ireland and the United Staes, managers value their individualism and are motivated by all the following opportunities except:
Profit-sharing plans
If a U.S. manager acted the same way with a British manager as they would with a Chinese manager, the U.S. manager will be exhibiting a behavioral process referred to as:
The United States has what is called a _____
Low-context culture
The following selections accurately reflects recruitment and selection processes in Mexico
Use of expatriates sparingly; recruit home country nationals at U.S. colleges
The 5 criteria in the acronym HAIRL stands for:
Helicopter, analysis, imagination, reality, and leadership
The process of exhibiting the same orientation toward different culture groups is referred to as:
4 distinct predispositions, which help determine the specific steps an MNC will follow, are:
Ethnocentric, polycentric, regiocentric, and geocentric
Research reveals that far from addressing regional differentiation issues, many MNCs are committed to a _____, which is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness
Globalization imperative
All of the following are characteristics of low-context cultures except:
Insiders and outsiders are easily distinguishable and outsiders typically do not gain entrance to the inner group
Initially, after breakup of the Soviet Union, the republics called themselves the:
Commonwealth of Independent States
The following is not an advantage of virtual teams
They force managers to rely on subjective data when assessing team members’ work
The following would be associated with the dimension of pragmatic conduct
To put the demands and expectations of the customers first
____ cultures often create environments where participants thrive in an intense, emotional commitment to the nature of the work
Global firms need:
Both an internal and an external diversity focus
A ____ group is a group in which all members but one have the same background, such as a group of Japanese retailers and a British attorney
Under an ____ culture, jobs are well defined, employees know what they are supposed to do and everything is coordinated form the top
Eiffel Tower
Norms are reflected by things such as:
The amount of work to be done
In the ____ stage of group development, attention may be directed more toward describing and analyzing the problem or task that has been assigned
The following sets of characteristics is typical of French negotiators
Look for a meeting of minds, intellectual competence is very important and a contact is viewed as well-reasoned transaction
When it works well, the ___ culture can catalos and multiply the energies of the personnel and appeal to their deepest feelings and aspirations
___ culture is characterized by a strong emphasis not eh hierarchy and orientation to the person
___ culture is characterized by a strong emphasis on equality in the workplace and orientation to the task
Guided missile
The benefits or advantage of culturally diverse groups include the following except
Glass-ceiling protection
There are 3 aspects of organizational functions that seem to be especially important in determining an MNCs organizational culture. There are:
The general relationship between the employees and their organization; the hierarchical system of authority that defines the roles of managers and subordinates; and the general views tat employees hold about the MNCs purpose, destiny, goals and their places in them
Multicultural teams are most effective when they face tasks requiring
Organizational climate is reflected by:
The way participants interact with each other
To ensure good communication in global teams, managers should do all of the following except
Avoid the use of email, and use only video conferencing of telephone communication to avoid misunderstandings
Observed behavioral regularities are typified by the following except
Customer relations
____ is a pattern of basic assumptions that are developed by a group as it learns to cope with problem sod external adaption and internal integration and that are taught to new members as the correct way to perceive, think and feel in relation to these problems
Organizational culture
When individuals koi a multinational corporation they bring their national culture, which greatly affects all of the following except
The special nature of foreign direct investment is not related to
The following are internal factors which MNCs may use to evaluate apolitical risk
1. power struggle among elite ethnic corporations
2. regional struggles
3. economic factors affecting stability
4. Factors affecting a specific project
Over the past decade political risk has become
A vital area for MNCs to assess and manage
Which of the following criteria involves maximum political risk
Effectiveness of public administration
Some multinational corporations attempt to manage political risk through simultaneously analyzing a range of variable to derive an overall rating of the degree of political risk in a given jurisdiction. This is referred to as a:
Quantification process
__ risks stem from government policies that limit the transfer of capital, payments, production, people, and technology in or out of a country
The following are all forms of terrorism
Examples of proactive and defensive techniques include all of the following
1. doing as little local manufacturing as possible and conduct all R & D
2. limiting responsibility of local personnel and bring only those vital to the operation
3. raising capital from local banks and host govt as well as outside resources
4. diversifying production of the product among a number of countries
The economies of China, Russia, India, and Vietnam present ____ political risk for MNCs
China’s decision regarding restrictions on foreign exchange transitions is a ____ political risk
The following is not an example of risk factors for an MNC
Complying with contractual terms of agreements
Laws that require that nations hold a majority interest in the operation are known as
Indigenization laws
All of the following are examples of integrative techniques
1. Developming a good relationship with host govt and local political groups
2. producing as much as product locally as possible with the use of in counter suppliers; subcontractors thus making it a “domestic product”
3. Crating joint venture and hiring local people to manage
4. doing as much local r & d
5. developing effective labor-mgmt relations
Foregin ownership limitations, pressure for local participation, confiscation, expropriation, and abrogation of property rights are examples of
Ownership-control risks
According to the 2009 Transparency international Corruption Perceptions Index, which of the following is the least corrupt nation?
New Zealand
The following is not a challenge of doing business in Russia
Strong faith in government practices
Expropriation is more likely to occur in
Non-western governments that are poor, relatively unstable, and suspicious of foreign multinationals
The theory behind ____ is quite simple. The MNC works to maintain a stronger bargaining power position than that of the host country
Relative bargaining power
____ investments include the product of raw materials or intermediate goods that are to be processed into final products
Examples of proactive political strategies include all of the following except
Downsizing and transferring business elsewhere
The leadership scholar that coined the terms “Theory X” and “Theory Y” management was:
Douglas McGregor
The process of influencing people to direct their efforts toward the achievement of some particular goal is referred to as
U.S. managers believe that to motivate workers, it is necessary to satisfy their:
Higher-order needs
Positive organizational scholarship consists of the following subunits except
Compared to non-entrepreneurs typically
Are more creative and innovative
The limiting of uncertainty and the focusing of action on a limited number of alternatives is referred to as:
Variety reduction
This is a dynamic view that factors in fundamental concerns, but ultimately emphasizes positive human potential
The following leaders clarifies what needs to be done and provides both psychic and material rewards to those who comply with their directives
Contingent reward leader
British managers tend to use a highly ___ leadership approach
The focus of attention of this leadership style usually is on work progress, work procedures and roadblocks that are preventing goal attainment
Bass found that the most effective leaders were ____ leaders
As a general statement, most evidence indicates that European managers tend to use this approach to leadership
The type of leadership is popular in many technologically advanced countries
Authoritarian leadership has all of the following characteristics except
It is widely used by Theory Y managers
This leader avoids intervening or accepting responsibility for followers actions
Laissez-faire leader
The philosophical assumptions of both the Chinese and the Russian managers help dictate the leadership approach that they use. Te assumptions are most easily seen in the
Managers’ behavior
All of the following are assumptions that underlie Theory X management except
The expenditure of physical and mental effort at work is as natural to people as resting
Japan is well-known for favoring this approach to leadership
The creation of uncertainty and the analysis of many alternatives regarding future action is referred to as
Variety amplification
Theory Z leadership is associated with the work of
William Ouchi

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