Review for Exam 1

Question 1

Which is NOT one of the disadvantages of the home replication strategy?

Answer 1

• It is organizationally complex and difficult to implement.
• It focuses too much on the foreign country.
• It has higher costs due to duplication efforts in multiple countries.

Question 2

Which of the following is NOT a leading problem with the international division organizational structure?

Answer 2

• It is not locally responsive.
• It is too locally responsive.
• The management team is duplicated creating organizational confusion.

Question 3

Which of the following DOES NOT best exemplify how informal institutions govern MNEs?

Answer 3

often taken for granted and deeply embedded in administrative heritages
thus making them difficult to change.
Informal institution: MNEs from different countries have different Norms in Staffing
i. Must avoid stereotyping
ii. Extra compensation required to attract high-caliber expats

Question 4

Which of the following best describes the motive for appointing a host-country national as head manager in a MNE subsidiary?

Answer 4

-They are familiar with the local informal institutions and market.

Question 5

Why is the flexible global matrix a popular organizational structure right now?

Answer 5

Sharing and coordination of responsibilities between product divisions and geographic areas in order to be both cost efficient and locally responsive
Multinational corporations the geographical distances for communication are greate and coordination is more complex.

Question 6

An ethnocentric staffing policy:

Answer 6

• Emphasizes norms and practices of parent company
• Relies on PCNs
• Perceived lack of talent amount HCNs often necessitates this approach

Question 7

Which of the following is a going rate approach advantage?

Answer 7

Advantages:
♣ Equality among parent, third, and host-country nationals in the same location
♣ Simplicity
♣ Identification of host country
o Disadvantages:
♣ Variations between assignments in different locations for the same employee
♣ Re-entry problem if the going rate in the parent is the parent country is less than that in the host country

Question 8

Which of the following is a balance sheet approach disadvantage?

Answer 8

Balance Sheet: balances the cost of living differences relative to parent country levels and adds a financial inducement to make the package attractive
o Advantages:
♣ Equity between assignments for the same employee
♣ Facilitates expatriate re-entry (repatriation)
o Disadvantages:
♣ Costly and complex to administer
♣ Great disparities between expatriates and host country nationals

Question 9

The resource-based view focuses on:

Answer 9

• Deploy overwhelming resources and capabilities to offset their liability and forgiveness
• The resource-based view argues that foreign firms need to deploy overwhelming resources and capabilities that after offsetting the liability of foreignness, there is still some competitive advantage left.

Question 10

What is defined as the ability to meet the needs of the present without compromising the ability of future generations to meet their needs?

Answer 10

Global Sustainability

Question 11

Which of the following best describes a firm taking a reactive strategy regarding CSR (corporate social responsibility)?

Answer 11

♣ Reactive Strategy: relatively little or no response to CSR causes; denial usually first line of defense
♣ Defensive strategy: Focuses on regulatory compliance. Firms admit responsibility, but fight it.
♣ Accommodative Strategy: some support from top managers who may increasingly view CSR as worthwhile endeavor
♣ Proactive strategy: Being responsible and endeavoring to do more than required

Question 12

5 to 10 questions on Hyperplane counts

Answer 12

a hyperplane count you count the loadings between .1 and -.1. For factor analysis the item that has the greatest impact on naming a dimension is the one that has the highest absolute value while the one that has the least impact is the one with the least absolute value.

Question 13

5 to 10 questions on Interpretation of Multiple Regression analysis

Answer 13

For the Multiple Regression you need to remember the R squared is the percentage of variance accounted for and the traditional significance level is .05 so you want significance levels that are .05 or less.

Question 14

5 to 10 questions from Special Readings article

Answer 14

For the reading download Carraher (2011) from the Baltic Journal of Management and read it

Question 15

Goal Settings

Answer 15

All of the above

Question 16

Which best describes the tension between central control and subsidiary initiative in a large firm?

Answer 16

Not necessarily consistent with the MNE’s corporate wide goals.

Question 17

Which of the following is one of the major management strategies?

Answer 17

Interdependence Role of foreign subsidiaries

Development and diffusion of knowledge and flow of knowledge.

Question 18

Which of the following is most closely aligned with the free market view of why a firm exists?

Answer 18

Sustainable Development

Question 19

One consequence of internationalizing a firm’s CSR is:

Answer 19

1.) Devoting resources to overseas CSR often means fewer resources left to devote to domestic CSR 2.) Expanding overseas can increase employment in host countries and help develop those economies. 3.) Expanding overseas can increase corporate profits and shareholder return. 4.) However it comes at the expense of local jobs.

Question 20

While examining attituded towards benefits which of the following has been found?

Answer 20

support for reginal culture variations in the relationship between attitudes towards benefits and business turnover
unrelated to business turnover

Question 21

One of the most frequent problems organizations in the Baltics have faced has been?

Answer 21

employee retention

Question 22

According to the special reading it would appear that with respect to benefits how do the theoretical results differ between entrepreneurs and employees in the baltics?

Answer 22

with both equity theory and expectancy theory playing a part in benefits predicting turnover among employees

Question 23

According to the special reading what % of payroll costs are benefits in SME within Europe?

Answer 23

30%

Question 24

According to the special reading what % of payroll costs are benefits in SME withing the USA?

Answer 24

28%

Question 25

According to the special reading which of the following are suggestions for future research?

Answer 25

emphasis on the need for stronger theoretical and historical frameworks to guide future reasearch