Kafli 4 (lauslega) Flashcards
Which of the following is likely to be considered international management?
A.
Being a member of a team of seven individuals from different states of a country.
B.
Managing a team of contingent workers for a national company.
C.
Working as an expatriate manager in a foreign subsidiary of a company.
D.
Managing a local company that adopts international trends in product development.
C.
Working as an expatriate manager in a foreign subsidiary of a company.
SNP Motors, an automobile manufacturing company based in Germany, has decided to set up a manufacturing plant in China as part of its expansion strategy. The company plans to build the facility by the end of 2020 and start operations soon after. The company will retain all profits of the new facility and have complete control over the technology and expertise used in the facility. Which of the following forms of conducting international business does this scenario exemplify?
A.
Business process outsourcing.
B.
Franchising.
C.
Licensing.
D.
Foreign direct investment.
D.
Foreign direct investment.
Identify one difference between franchising and licensing.
A.
In a franchise agreement, the franchisor retains control over the profits and management of the franchisee, whereas in a licence agreement, the licensor retains control over the expertise and technology used by the licensee.
B.
Licensing requires the licensee to make a royalty payment to the licensor, whereas franchising does not require the franchisee to pay any fee to the franchisor.
C.
In a franchise agreement, the franchisor imposes strict conditions on quality, customer service and work procedures, whereas in a license agreement, the licensor does not.
D.
Licensing is an expansion strategy used by service businesses, whereas franchising is an expansion strategy used by businesses that produce and sell goods.
C.
In a franchise agreement, the franchisor imposes strict conditions on quality, customer service and work procedures, whereas in a license agreement, the licensor does not.
Which of the following theories states that a country can increase its economic wealth by specialising in the production of goods that it can produce more efficiently than other countries and then trading those goods?
A.
The general systems theory.
B.
The theory of absolute advantage.
C.
Agency theory.
D.
Porter’s five forces theory.
B.
The theory of absolute advantage.
Identify one reason why a country’s political factors would matter to a potential investor.
A.
Political factors such as distribution of wealth and currency stability are determined by the ruling government.
B.
Political factors shape an investor’s risk of losing assets, earning power or managerial control due to the actions of host governments or political events.
C.
Political factors such as exchange rates and telecommunications are determined by the ruling government.
D.
Political factors affect political stability and internationalisation of markets as suggested by the theory of absolute advantage.
B.
Political factors shape an investor’s risk of losing assets, earning power or managerial control due to the actions of host governments or political events.
ASN Technologies, a software company based in the country Liasia, is planning to expand by purchasing Terrabits Inc., a software company in the country Saintande. After extensive research, ASN Technologies’ management discovers that government attitudes towards foreign direct investment are unfavourable in Saintande, as is the attitude of the country’s population towards foreign companies and staff. The management also discovers that power supply in the areas surrounding Terrabits is unstable and company taxation rates are very high. As a result, the management decides to shelve the idea of purchasing Terrabits. Which of the following is a technological factor that affected the company’s decision?
A.
The corporate tax rate for private companies
B.
The instability of power supply in the areas surrounding Terrabits.
C.
Attitudes towards foreign companies and staff
D.
Attitudes towards foreign direct investment
B.
The instability of power supply in the areas surrounding Terrabits.
Which of the following terms did Hofstede and Hofstede describe as the collective programming of the mind that differentiates one category or group of individuals from others?
A.
Culture.
B.
Sustainability.
C.
Corporate governance.
D.
Globalisation.
A.
Culture.
Anagram Inc., a software development firm, has a hierarchical structure and authoritarian culture. Employees are expected to obey their supervisors and managers and address them as ‘sir’ or ‘ma’am’. The employees of the company accept this inequality and consider it part of the natural order. In this context, which of the following statements is most likely to be true?
A.
Anagram Inc. is based in a country that scores high on individualism.
B.
Anagram Inc. is based in a country that has a low-context culture.
C.
Anagram Inc. is based in a country that scores high on power distance.
D.
Anagram Inc. is based in a country that scores low on masculinity.
C.
Anagram Inc. is based in a country that scores high on power distance.
Sara lives in a country in which social gender roles overlap and both men and women are supposed to be tender, modest and concerned about the quality of life. By contrast, Megan lives in a country in which men and women have distinct gender roles. Men are supposed to be breadwinners, and women are supposed to be homemakers. In this context, which of the following statements is most likely to be true?
A.
Sara lives in a country that scores high on power distance, whereas Megan lives in a country that scores low on power distance.
B.
Sara lives in a country with a high-context culture, whereas Megan lives in a country with a low-context culture.
C.
Sara lives in a feminine country, whereas Megan lives in a masculine country.
D.
Sara lives in a country with high long-term orientation, whereas Megan lives in a country with high short-term orientation.
C.
Sara lives in a feminine country, whereas Megan lives in a masculine country.
According to Hofstede’s comparison of national cultures, who among the following individuals most likely lives in a country that scores high on long-term orientation?
A.
Kyle, who lives in Canada and seeks the immediate gratification of his needs.
B.
Alena, who lives in Hong Kong and abides by the values of perseverance and thrift.
C.
Derek, who lives in Australia and focuses on fulfilling his social obligations.
D.
Rebecca, who lives in New Zealand and is particular about her image in her social circle.
B.
Alena, who lives in Hong Kong and abides by the values of perseverance and thrift.
Which of the following terms refers to the increasing integration of internationally dispersed economic activities that results in homogenised markets across the world?
A.
Sustainability.
B.
Bureaucracy.
C.
Globalisation.
D.
Social entrepreneurship.
C.
Globalisation.
