Chapter 2 MGT 367

Question 1

Majority of Fortune 500 companies are now _______; many of them are deriving more than half of their revenues from overseas business

Answer 1

MULTINATIONAL

Question 2

Creation of offshore professional and operations centers is derived from which of the four trends ________.

Answer 2

GLOBALIZATION TREND

Question 3

Why should a company expand globally?

Answer 3

• Access to additional resources
• Lower costs
• Economies of scale
• Favorable regulations and tax systems
• Direct access to new & growing markets
• Ability to customize products to local tastes & styles
• Rise of regional trade alliances

Question 4

How do organizations expand globally?

Answer 4

Engaging in international commerce without investing in foreign factories or facilities

Question 5

___________ is when the firm sells its products and services in foreign marketplaces through intermediaries

Answer 5

EXPORTING

Question 6

_______ is when the licensor leases the right to use its intellectual property to another firm (the licensee) in exchange for a fee

Answer 6

LICENSING

Question 7

________ is a special form of licensing which allows an independent organization (the franchisee) to operate a business under the name of the franchisor in return for a fee

Answer 7

FRANCHISING

Question 8

______ is a firm outsources the creation of its products to another country

Answer 8

CONTRACT MANUFACTURING

Question 9

____________ is a company sells its management (and sometimes technical) expertise to a company in another country

Answer 9

MANAGEMENT CONTRACTS

Question 10

___________ is partnering with a local organization  allowing the firm to make a direct investment very gradually while sharing its risk with a knowledgeable, experienced other party

Answer 10

ALLIANCES

Question 11

______________ is partners create a new, separate company that is owned jointly by the venture partners

Answer 11

JOINT VENTURES

Question 12

_____________is companies agree to partner with one another, but do not set up a separate entity

Answer 12

STRATEGIC ALLIANCE

Question 13

_____________- a firm owns an operation in a foreign country in order to ensure that they have full decision-making authority and operational control

Answer 13

SOLE OWNERSHIP

Question 14

The _______ environment includes; A country’s economic, legal, political, and socio-cultural systems and it’s
Language and religious beliefs

Answer 14

GENERAL

Question 15

The _______ enviornment includes; Forces that are directly related to the industry, such as: cost pressures, intensity of competitive rivalry, barriers to entry….

Answer 15

TASK

Question 16

What are Porter’s two types of international industries?

Answer 16

Multilocal & Global industry

Question 17

______________—competition in each country or regional is essentially independent of the competition in other regions

Answer 17

MULTILOCAL INDUSTRY

Question 18

___________– a firms competitive position in one country is significantly affected by its position in other countries.

Answer 18

GLOBAL INDUSTRY

Question 19

Factors Influencing Organization’s Decision to Invest in an International Market include;__________________________.

Answer 19

General enviornment, task enviornment, multilocal industry, global industry,and internal strengths and weaknesses.

Question 20

What are the factors that affect the level of difficulty of HRM?

Answer 20

• Legal complexity
• Degree of foreign investment in relation to its domestic investment
• Attitude of senior management toward international operations

Question 21

Who described the degree of cultural differences by cultural dimensions?

Answer 21

Geert Hofstede

Question 22

What are Hofstede’s four cultural dimensions?

Answer 22

1. INDIVIDUALISM VS. COLLECTIVISM
2. POWER DISTANCE
3. MASCULINITY VS. FEMININITY
4. UNCERTAINTY AVOIDANCE

Question 23

______________:the ties between individuals are loose; everyone is expected to look after him/herself and his/her immediate family.

Answer 23

INDIVIDUALISTIC SOCIETIES

Question 24

__________: People from birth onwards are integrated into strong, cohesive in-groups, often extended families which continue protecting them in exchange for unquestioning loyalty.

Answer 24

COLLECTIVISTIC SOCIETIES

Question 25

________: The extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally

Answer 25

POWER DISTANCE

Question 26

___________ Refers to the different expectation of roles about genders in society.

Answer 26

MASCULINITY VS. FEMININITY

Question 27

___________ is fhe extent to which members of a society feel either uncomfortable or comfortable in unstructured situations

Answer 27

UNCERTAINTY AVOIDANCE

Question 28

___________are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures.

Answer 28

UNSTRUCTURED SITUATIONS

Question 29

What are the 4 IHRM approaches?

Answer 29

1. ETHNOCENTRIC
2. POLYCENTRIC
3. GEOCENTRIC
4. REGIOCENTRIC

Question 30

The choice of an IHRM strategy is influenced by (1) the ____________ of the firm, (2) the _________environment, (3) the firm’s ___________, and (4) _________ strategy

Answer 30

GENERAL ENVIRONMENT, INDUSTRY, STRENGTHS AND WEAKNESSES, AND ORGANIZATIONAL

Question 31

__________-employees who are placed in an assignment outside their home country

Answer 31

EXPATRIATES

Question 32

What are the three challenges of international business assignements?

Answer 32

1, ASSIGNMENT FAILURE

2. INTERNATIONAL COMPENSATION
3. REPATRIATION

Question 33

Balance sheet approach, localization, and cafeteria style benefit package are all ____________.

Answer 33

INTERNATIONAL COMPENSATIONS