International Management

Question 1

The Global Organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition and subsidies is the:
a. WIPO;
b. WTO;
c. NAFTA;
d. EU;

Answer 1

b. WTO;

Question 2

Multinational corporations can be defined as firms having operations in more than one country, international sales, and a nationality mix of nationalities among managers and owners.
a. False;
b. True.

Answer 2

b. True.

Question 3

………….. has placed pressure on MNCs to outsource production.
a. Mounting cost pressure and profit expectations;
b. Profit expectation by governments;
c. Global and Internal competition;
d. Lack of cheap and expert labor;

Answer 3

a. Mounting cost pressure and profit expectations;

Question 4

The ……….. principle holds that every country has jurisdiction over behaviour that adversely affects its national security, even if that conduct occurred outside the country.
a. Territoriality;
b. Nationality;
c. Sovereignty;
d. Protective.

Answer 4

d. Protective.

Question 5

Common law is derived from Romanian law and is found in the non-islamic and non-socialist countries such as France, some countries in Latin America and even Louisiana in the US.
a. True;
b. False.

Answer 5

b. False.

Question 6

MNCs have moved certain production activities overseas to capitalise on:
a. Higher purchasing power;
b. Cheap Labor;
c. Larger markets;
d. Increasing costs.

Answer 6

b. Cheap Labor;

Question 7

Research reveals that far from addressing regional differentiation issues, many MNCs are committed to a(n) ……………, which is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness.
a. Cross-cultural contentment;
b. Globalisation imperative;
c. Worldwide indifference;
d. International complacency.

Answer 7

b. Globalisation imperative;

Question 8

In some cases, both the product and the marketing message are similar worldwide; this is particularly true for high-end products.
a. False;
b. True.

Answer 8

b. True.

Question 9

All of the following are characteristics of low-context cultures except:
a. Insiders and outsiders are easily distinguishable and outsiders typically do not gain entrance to the inner group;
b. Messages are explicit, and people are taught to say what they mean;
c. Deep personal involvement with others is not valued greatly;
d. Agreements tend to be in writing rather than spoken.

Answer 9

a. Insiders and outsiders are easily distinguishable and outsiders typically do not gain entrance to the inner group;

Question 10

A(n) …….. organizational culture is characterized by a strong emphasis on equality and orientation to the person.
a. Eiffel Tower;
b. Incubator;
c. Family;
d. Guided missile

Answer 10

c. Family;

Question 11

Organizational climate is reflected by:
a. Common language, terminology, and rituals;
b. High product and service quality;
c. The degree of cooperation between management and employees;
d. The way participants interact with each other.

Answer 11

d. The way participants interact with each other.

Question 12

When individuals join a multinational corporation they bring their national culture, which greatly affects all of the following except:
a. Learned beliefs;
b. Behaviours;
c. Attitudes and values;
d. Ethnicity.

Answer 12

d. Ethnicity.

Question 13

The transmission of information from manager to subordinate is referred to as:
a. Horizontal communication;
b. Upward communication;
c. Lateral communication;
d. Downward communication.

Answer 13

d. Downward communication.

Question 14

……communication is to provide feedback, ask questions or obtain assistance from higher-level management.
a. Horizontal;
b. Lateral;
c. Downward;
d. Upward.

Answer 14

d. Upward.

Question 15

In communicating on a face-to-face basis, ….. distance is used to handle most business transactions.
a. Social;
b. Personal;
c. Intimate;
d. Public.

Answer 15

a. Social;

Question 16

The two types of joint ventures are:
a. External and internal ventures;
b. Proprietary and public ventures;
c. Equity and non- equity ventures;
d. Statutory and unofficial ventures.

Answer 16

c. Equity and non-equity ventures;

Question 17

A franchise is an agreement that allows one party to use an industrial property right in exchange for payment to the other
party.
a. False;
b. True.

Answer 17

b. True.

Question 18

The non-equity venture:
a. Provides the most benefits when the need for product specification or differentiation is high;
b. Organizes worldwide operations based primarily on function and secondarily on product;
c. Involves a financial investment by the MNC in a business enterprise with a local partner;
d. Is characterized by one group merely providing a service for another.

Answer 18

d. Is characterized by one group merely providing a service for another.

Question 19

Advantages of alliances and joint ventures include all of the following except:
a. Collusion or restriction in competition;
b. Access to knowledge;
c. Improvement of efficiency;
d. Mitigating political factors.

Answer 19

a. Collusion or restriction in competition;

Question 20

The following factors encourage the use of decentralized decision making except
a. High degree of technology;
b. Relatively low importance to MNC;
c. Small company size;
d. Stable environment.

Answer 20

a. High degree of technology;

Question 21

The more sophisticated the level of technology, the greater the use of ….decision making
a. Participative;
b. Centralized;
c. Decentralized;
d. Team-based.

Answer 21

b. Centralized;

Question 22

Direct controls use reports and other written forms of communication to control operations.
a. True;
b. False.

Answer 22

b. False.

Question 23

According to this theory, if people believe they are not being treated fairly, especially in relation to relevant others, they will be dissatisfied, and this belief will have a negative effect on their job performance.
a. Expectancy theory;
b. Goal-setting theory;
c. Motivation theory;
d. Equity theory.

Answer 23

d. Equity theory.

Question 24

The first assumption about the motivation process is that it is:
a. Regionally distinct;
b. Country specific;
c. Universal;
d. Culturally explicit.

Answer 24

c. Universal;

Question 25

Process theories of work motivation include the achievement motivation theory, the goal-setting theory, and the
expectancy theory.
a. False;
b. True.

Answer 25

a. False;