Global Marketing Final Exam

Question 1

The manner in which organizations structure subunits and use coordination and control mechanisms to achieve their strategic goals is the

a) Organizational design.

b) Organizational structure.

c) Organizational culture.

d) Degree of formalization.

Answer 1

Organizational design.

Question 2

The functional structure is considered most efficient when

a) When the organization is in the mature phase of the life cycle.

b) An organization gets too large.

c) When customers need special functions.

d) When organizations have few products.

Answer 2

When organizations have few products.

Question 3

All of the following statements are true about the functional structure EXCEPT

a) In small organizations, the functional structure is the least efficient of all structures.

b) The functional structure is the simplest of organizations.

c) In the functional structure, departments perform separate business functions such as marketing or manufacturing.

d) Because functional subunits are separated from each other, coordination among the units can be difficult.

Answer 3

In small organizations, the functional structure is the least efficient of all structures.

Question 4

All of the following statements are true about product structures EXCEPT

a) Product organizations must still perform some functional tasks of a business.

b) The structure builds a department or subunit around a product .

c) Managers choose product structures when they believe that a product or a group of products is sufficiently unique to require focused efforts on one type of product or service.

d) The product structure is the most efficient of all structures.

Answer 4

The product structure is the most efficient of all structures.

Question 5

Organizations that are designed with mixtures of structures that are the best to implement their strategies are

a) Geographic structures.

b) Hybrid structures.

c) Product structures.

d) Functional structures.

Answer 5

Hybrid structures.

Question 6

When exports become a significant percentage of company sales and a company wishes greater control over its export operations, managers often create a separate

a) Functional department.

b) Product department.

c) Export department.

d) Liaison office.

Answer 6

Export department.

Question 7

There are several issues to consider in picking a partner for a strategic alliance. One of these is

a) Go for the biggest partner possible because they have the most assets.

b) Seek strategic complementarity.

c) Make sure your partner will be dependent on you and not vice versa.

d) All of the above

Answer 7

Seek strategic complementarity.

Question 8

According to the text, all of the following are true about strategic alliances EXCEPT

a) They are used mostly as a means to share technology.

b) They are among the most popular choice to go international.

c) They are inherently unstable and provide significant management challenges.

d) Estimates of failure rates range from 30 to 60 percent.

Answer 8

They are used mostly as a means to share technology.

Question 9

In operations alliances, multinational companies

a) Combine manufacturing to reach a profitable volume of activity.

b) Share the risk of developing new or costly technology.

c) Use research and development to merge different technical skills.

d) Gain access to new markets.

Answer 9

Combine manufacturing to reach a profitable volume of activity.

Question 10

The best level of dependency recommended for a strategic alliance is

a) Balanced.

b) It does not matter if there are more than two companies.

c) Home country dominated.

d) Host country dominated.

Answer 10

Balanced

Question 11

The elephant-and-the-ant complex refers to

a) Difficulties that come with two different size organizations in a strategic alliance.

b) An unbalanced management structure.

c) Problems that arise when one side feels inferior to the other.

d) Strategic alliances between developed and developing countries.

Answer 11

Difficulties that come with two different size organizations in a strategic alliance.

Question 12

When a large number of companies form a joint venture, the international joint venture is a

a) Multi-partner joint venture.

b) Equity joint venture.

c) Informal cooperative alliance.

d) Consortium.

Answer 12

Consortium

Question 13

In the independent control management structure

a) Strategic alliance managers have nearly complete autonomy for operational decisions.

b) Partners act independently of each other except when necessary.

c) Partners focus only on their special areas of expertise.

d) None of the above

Answer 13

Strategic alliance managers have nearly complete autonomy for operational decisions.

Question 14

When partners share strategic decision making but make decisions independently at the functional level (e.g., marketing, production), they are using which of the following management structures?

a) Independent management structure

b) Split-control management structure

c) Dominant partner

d) Rotating management

Answer 14

Split-control management structure

Question 15

Strategic alliance partners prefer a dominant management structure

a) If the alliance has more strategic importance to one partner.

b) If partners have similar technologies or know-how and they contribute this knowledge equally to the alliance.

c) If partners have different technologies or know-how and they contribute this knowledge equally to the alliance.

d) If partners have different technologies or know-how and they contribute this knowledge differently to the alliance.

Answer 15

If the alliance has more strategic importance to one partner.

Question 16

When applied to a strategic alliance relationship, the concept of trust includes

a) Confidence that the partner will deliver.

b) Confidence that the partner will behave with good will.

c) Confidence that the partner will engage in fair exchange.

d) All of the above

Answer 16

All of the above

Question 17

The confidence that the partner will behave with goodwill and trust is

a) Credibility trust.

b) Commitment.

c) Calculative commitment.

d) Benevolent trust.

Answer 17

Benevolent trust.

Question 18

Ebay is a prime example of which form of e-commerce?

a) Business to consumer transactions (B2C)

b) Business to business transactions (B2B)

c) Consumer to consumer transactions (C2C)

d) Consumer to business transactions (C2B)

Answer 18

Consumer to consumer transactions (C2C)

Question 19

An Internet host that allows users to send encrypted data so that those outside the connection cannot see the information is a

a) A computer that has its own Internet Protocol address.

b) A secure server.

c) A computer that has its own World Wide Web address.

d) An internet host.

Answer 19

A secure server.

Question 20

Secure servers and internet hosts are two indicators of the

a) Internet infrastructure.

b) global presence of e-commerce.

c) Web influence.

d) Internet security.

Answer 20

global presence of e-commerce.

Question 21

Which of the following is NOT one of the necessary steps to ensure a successful E-Commerce strategy?

a) Allocating resources to the e-commerce business

b) Making sure that the entire firm is prepared to embrace the e-commerce model

c) Building on current business models and experimenting with new e-commerce models

d) Training all upper level management in computer programming

Answer 21

Training all upper level management in computer programming

Question 22

Independent operations between the brick and mortar part of a company and its e-commerce system offer which of the following benefits?

a) The brick and mortar part of the company can transfer learning to the e-commerce system of the company.

b) Independent operations can facilitate synergy between the brick and mortar part and the e-commerce system.

c) The independent operation can benefit from cross-promotion of shared products, shared customer information, increased large-quantity purchase leverage, and economies of scale by using the same distribution channels.

d) The independent operation can move faster and be more entrepreneurial when freed from corporate bureaucracy and it can seek funding from deep pockets of venture capitalists

Answer 22

The independent operation can move faster and be more entrepreneurial when freed from corporate bureaucracy and it can seek funding from deep pockets of venture capitalists.

Question 23

According to the text, which of the following is NOT one of the management challenges companies will face as they develop their e-commerce businesses?

a) Deciding which e-commerce functions to outsource

b) Finding funds to develop the e-commerce business

c) Finding ways to provide individuals with growth opportunities and job fulfillment to encourage employee retention in the e-commerce business

d) Attracting, retaining, and developing employees in the e-commerce unit

Answer 23

Finding funds to develop the e-commerce business

Question 24

According to the text, the degree of difficulty in conducting global e-commerce businesses is primarily dependent on

a) The infrastructure requirements.

b) The telecommunications infrastructure requirements.

c) The availability of management talent.

d) The financial requirements.

Answer 24

The infrastructure requirements.

Question 25

Which of the following is NOT one of the major threats to e-commerce globalization?

a) Traditional cross-border transaction and other cross-cultural complexities

b) Cost of training in top managers in computer programming

c) Cost of site construction, maintenance and upgrades

d) Easily copied e-commerce models

Answer 25

Cost of training in top managers in computer programming

Question 26

The process by which companies choose people to fill vacant position is

a) Recruitment.

b) Compensation.

c) Selection.

d) Training and development.

Answer 26

Recruitment.

Question 27

Inpatriates are

a) Expatriate workers who come from neither the host nor the home country.

b) Local workers who come from the host country where the unit is located.

c) Employees who come from a different country where he/she is working.

d) Employees from foreign country who work in the country where the parent company is located.

Answer 27

Employees from foreign country who work in the country where the parent company is located.

Question 28

Expatriates are

a) Local workers who come from the host country where the unit is located.

b) Employees who come from a different country from where he or she is working.

c) The more talented local managers.

d) None of the above

Answer 28

Employees who come from a different country from where he or she is working.

Question 29

All of the following are benefits that companies obtain by using expatriates EXCEPT

a) Reduced turnover for key international managers.

b) Receiving important strategic information.

c) Increased coordination and control of international operations.

d) Timely information on the local markets.

Answer 29

Reduced turnover for key international managers.

Question 30

Key expatriate success factors include all of the following EXCEPT

a) Professional or technical skill.

b) Experience in at least two cultures different from the assignment country.

c) Favorable family situation.

d) Stress tolerance.

Answer 30

Experience in at least two cultures different from the assignment country.

Question 31

Evidence on training for international assignments suggests

a) US firms invest the most in this activity.

b) Cross-cultural training reduces expatriate failure rates.

c) Cross-cultural training makes people feel more comfortable but there are no bottom line effects on performance.

d) It only beneficial for long term assignments.

Answer 31

Cross-cultural training reduces expatriate failure rates.

Question 32

Which of the following is NOT one of the issues that make expatriate performance appraisals difficult?

a) Unreliable data

b) Time differences and distance separation

c) Complex and volatile environments

d) Refusal of host company to provide performance information regarding expatriate

Answer 32

Refusal of host company to provide performance information regarding expatriate

Question 33

Difficulties that managers face in coming back to their home countries and reconnecting with their home organizations is known as the

a) Expatriation problem.

b) Reverse culture shock.

c) Low home re-adaptation index.

d) Repatriation problem.

Answer 33

Repatriation problem.

Question 34

International negotiation

a) Is the process of making business deals across national and cultural boundaries.

b) Is less complex than domestic negotiation.

c) Can be successful regardless of ease of communication.

d) All of the above

Answer 34

Is the process of making business deals across national and cultural boundaries.

Question 35

All of the following are true about international negotiation EXCEPT

a) International negotiations are more complex than domestic negotiations.

b) Differences in national cultures and differences in political, legal, and economic systems often separate potential business partners.

c) Most successful international negotiators use their home country negotiation styles.

d) All of the above are true.

Answer 35

Most successful international negotiators use their home country negotiation styles.

Question 36

Which of the following statements is true regarding high context languages?

a) Most Northern European languages, including German, English, and the Scandinavian languages are high context languages.

b) Words provide most of the meaning in high context languages.

c) In high context languages, what is left unsaid is often as important as what is said.

d) All of the above are true.

Answer 36

In high context languages, what is left unsaid is often as important as what is said.

Question 37

Kinesics is

a) Focuses on how people use space to communicate.

b) Communicating through body movements.

c) The type of touching that is deemed appropriate in different cultures.

d) A form of verbal communication.

Answer 37

Communicating through body movements.

Question 38

Proxemics

a) Represents the degree of formality in communication styles.

b) Focuses on how people use space to communicate.

c) Refers to the use of body movements to communicate.

d) Means communicating with and without words.

Answer 38

Focuses on how people use space to communicate.

Question 39

Olfactics

a) Refers to communication through eye contact or gazing.

b) Communication through body contact.

c) Is the use of smells as a means of nonverbal communication.

d) Communication through the use of space.

Answer 39

Is the use of smells as a means of nonverbal communication.

Question 40

Communication through eye contact or gaze is known as

a) Proxemics.

b) Haptics.

c) Oculesics.

d) Olfactics.

Answer 40

Oculesics.

Question 41

People’s expectations from work (such as work providing necessary income or work providing satisfactory experiences) refer to

a) Functions of work.

b) Work motivation.

c) Work centrality.

d) Importance of work.

Answer 41

Functions of work.

Question 42

The concept of work centrality refers to

a) The reasons why people work.

b) Goals that people hope to achieve from working.

c) The functions that work plays in people’s lives.

d) The degree of importance of work in the life of an individual.

Answer 42

The degree of importance of work in the life of an individual.

Question 43

All the following are true about work centrality EXCEPT

a) High levels of work centrality may lead to dedicated workers and more effective organizations.

b) High levels of work centrality in Japan have been physically and psychologically stressing to middle-aged managers.

c) It represents the function of work in an organizational culture.

d) Higher levels of work centrality closely match average number of hours worked in a country.

Answer 43

It represents the function of work in an organizational culture.

Question 44

All of the following statements about work in different countries are true EXCEPT

a) In some societies, work is very central and absorbs more of a person’s life.

b) Regardless of country, money has the highest priority for why people work.

c) All people hope to receive certain benefits from work.

d) People from different countries have different goals for their jobs.

Answer 44

Regardless of country, money has the highest priority for why people work.

Question 45

Which of the following motivation theory suggests that only some people have the need to win in competitive situation or to exceed excellence standards?

a) Achievement-motivation theory

b) Motivator-hygiene theory

c) Expectancy theory

d) Reinforcement theory

Answer 45

Achievement-motivation theory

Question 46

The theory based on the idea that employees compare their inputs and outcomes to other persons in the work setting to determine if they are being fairly treated is

a) Reinforcement theory.

b) Expectancy theory.

c) Needs difference theory.

d) Equity theory.

Answer 46

Equity theory.

Question 47

All the following statements are true about leadership EXCEPT

a) Excellent leaders motivate their employees to achieve more than minimal organizational requirements.

b) Leadership is influencing group members to achieve organizational goals.

c) Companies can achieve success with or without good leaders.

d) Leading in a multinational company is an even greater challenge than in a domestic one.

Answer 47

Companies can achieve success with or without good leaders.

Question 48

Some of the characteristics of the new breed of global leaders include

a) The skills and abilities to interact with and manage people from the diverse cultural backgrounds that populate their multinational companies.

b) Sufficiently flexible to operate comfortably in pluralistic cultural environments.

c) Knows at least one foreign language and understands the complexities of interaction with people from other cultures.

d) All of the above

Answer 48

All of the above

Question 49

The idea that leaders are born with unique characteristics that make them different form ordinary people is the

a) The great-person theory.

b) The leadership behaviors theory.

c) Task centered leadership theory.

d) A contingency theory of leadership.

Answer 49

The great-person theory.

Question 50

All of the following are true about trait leadership theories EXCEPT

a) Using trait theory, one can conclude that successful business, political, religious, and military leaders were born with unique characteristics that made them quite different from ordinary people.

b) Leadership theorists identified an exact list of leadership traits.

c) The great person theory of leadership assumes that leaders are born.

d) All of the above are true.

Answer 50

Leadership theorists identified an exact list of leadership traits.

Question 51

Leaders who do not allow employees to share in the decision- making are

a) Consultative leaders.

b) Democratic leaders.

c) Participative leaders.

d) Autocratic leaders.

Answer 51

Autocratic leaders.

Question 52

Transformational leadership

a) Is one leadership style of Fieldler’s leadership theory.

b) Succeeds because subordinates respond to the leader with high levels of performance, personal devotion, and excitement.

c) Means that managers use rewards or punishments to influence their subordinates.

d) Is similar to transactional leadership.

Answer 52

Succeeds because subordinates respond to the leader with high levels of performance, personal devotion, and excitement.

Question 53

Behaviors and characteristics of transformation leaders include the all of the following EXCEPT

a) Provides goals and a plan.

b) Uses rewards or punishments to influence subordinates.

c) Articulates a vision.

d) Breaks from the status quo.

Answer 53

Uses rewards or punishments to influence subordinates.

Question 54

Trait models of leadership

a) Assumes that different styles and different leaders are more appropriate for different situations.

b) Focuses on the behaviors leaders use to manage their employees.

c) Includes Maslow’s Hierarchy of Needs theory.

d) Evolved from the debate regarding whether leaders are born or made.

Answer 54

Evolved from the debate regarding whether leaders are born or made.