Week 12 - Service Industry

Question 1

What was the primary reason Bankco relocated its call centre to India? a. To explore new markets. b. To improve customer service. c. To reduce labour costs and increase control. d. To take advantage of advanced technology in India.

Answer 1

c. To reduce labour costs and increase control.

Question 2

Which of the following was NOT a challenge Bankco faced when operating the call centre in the UK? a. High levels of absenteeism. b. Difficulty recruiting and retaining staff. c. Abuse of sickness leave entitlements. d. Customers complaining about long wait times.

Answer 2

d. Customers complaining about long wait times.

Question 3

3. What was the preferred labour supply for Bankco’s UK call centre? a. Working mothers. b. Students. c. Recent graduates. d. Men in their 30s and 40s.

Answer 3

a. Working mothers.

Question 4

4. Why did Bankco struggle to recruit their preferred labour supply in the UK? a. The wages offered were not competitive. b. The local labour market had a high proportion of young people and relatively low female labour participation. c. The location of the call centre was not convenient for commuters. d. The company had a poor reputation.

Answer 4

b. The local labour market had a high proportion of young people and relatively low female labour participation.

Question 5

5. What unforeseen issue did Bankco encounter when running the call centre in India? a. Lack of technological infrastructure. b. Customer resistance due to racial bias and communication difficulties. c. Inability to find workers with sufficient English language skills. d. High staff turnover due to cultural differences.

Answer 5

b. Customer resistance due to racial bias and communication difficulties.

Question 6

6. Which of the following best describes Bankco’s “lift and drop” strategy for replicating their telephone banking service in India? a. Strict performance targets and detailed service agreements ensured a standardised approach. b. Investing heavily in technology to automate as many processes as possible. c. Hiring only experienced Indian call centre workers with prior knowledge of UK banking practices. d. Gradually transferring operations to India to allow for a smoother transition.

Answer 6

a. Strict performance targets and detailed service agreements ensured a standardised approach.

Question 7

7. How did the employment relation differ between Bankco’s UK and Indian call centres? a. Indian workers had more opportunities for promotion within the company. b. Indian workers had less generous terms and conditions, including fewer sick days and no part-time work options. c. UK workers had more access to training and development opportunities. d. UK workers were more closely monitored by management than their Indian counterparts.

Answer 7

b. Indian workers had less generous terms and conditions, including fewer sick days and no part-time work options.

Question 8

8. Why did Bankco ultimately decide to return the call centre operations to the UK? a. The Indian government introduced new regulations that made outsourcing less profitable. b. To protect their brand image in the face of customer dissatisfaction. c. To reduce costs associated with high staff turnover in India. d. To provide more jobs for UK workers during an economic downturn.

Answer 8

b. To protect their brand image in the face of customer dissatisfaction.

Question 9

What is the main argument of the article? a. Offshoring is an inevitable trend that will continue to grow in the future. b. Call centres are an example of how globalisation can create high-quality jobs in developing countries. c. While seemingly driven by economic factors, offshoring can also be a way for companies to escape organised labour and reconstruct the employment relationship to their advantage. d. Companies should focus on improving customer service rather than simply reducing labour costs.

Answer 9

c. While seemingly driven by economic factors, offshoring can also be a way for companies to escape organised labour and reconstruct the employment relationship to their advantage.

Question 10

How did Bankco’s experience reflect broader trends in the globalisation of service work? a. It demonstrated that any type of service work can be successfully offshored with the right approach. b. It highlighted the ethical concerns surrounding the displacement of workers in developed countries. c. It showed that the success of offshoring depends on various factors, including the complexity of the work and customer perceptions. d. It proved that offshoring ultimately benefits both companies and workers in the long run.

Answer 10

c. It showed that the success of offshoring depends on various factors, including the complexity of the work and customer perceptions.

Question 11

11. What is “enacted sociability”, and what is its role in call centre work? a. The ability of call centre advisors to maintain a professional demeanour even when dealing with difficult customers. b. The use of technology to create a sense of personal connection between call centre advisors and customers. c. The training provided to call centre workers on how to effectively handle customer complaints. d. The performance of friendliness and helpfulness by call centre advisors, even when they may not feel these emotions, in order to create a positive customer service experience.

Answer 11

d. The performance of friendliness and helpfulness by call centre advisors, even when they may not feel these emotions, in order to create a positive customer service experience.

Question 12

12. What makes the skills required in call centre work difficult to replicate in a different social and cultural context? a. The technical knowledge required to operate call centre software varies significantly between countries. b. The successful execution of “enacted sociability” relies on shared cultural understanding and norms that may not translate well across cultures. c. Call centre workers in different countries have different levels of educational attainment, making it difficult to find workers with comparable skills. d. The high turnover rate in call centres makes it challenging to build up a workforce with the necessary experience and expertise.

Answer 12

b. The successful execution of “enacted sociability” relies on shared cultural understanding and norms that may not translate well across cultures.

Question 13

13. How did the presence of a large student population in the city where Bankco’s UK call centre was located impact their ability to manage their workforce? a. Students were highly motivated and eager to learn, leading to lower training costs for the company. b. Students were more likely to join unions, leading to increased labour activism and demands for better working conditions. c. The availability of a large pool of student labour made it difficult for Bankco to attract and retain their preferred demographic of working mothers. d. Students were more likely to be tech-savvy, allowing Bankco to implement more advanced call centre technology.

Answer 13

c. The availability of a large pool of student labour made it difficult for Bankco to attract and retain their preferred demographic of working mothers.

Question 14

14. Which of the following is NOT a reason why call centre work is often considered a feminised sector? a. Gender stereotypes often associate women with qualities deemed desirable in customer service roles, such as being caring and communicative. b. The availability of part-time work in call centres can be attractive to women with caregiving responsibilities. c. Women are inherently better at performing emotional labour than men. d. The relatively low wages and limited career progression opportunities in call centres can make them less appealing to men.

Answer 14

c. Women are inherently better at performing emotional labour than men.

Question 15

15. How did Bankco use technology to monitor the performance of its call centre in India? a. By requiring Indian call centre workers to submit daily reports on their activities and the number of calls handled. b. By using video conferencing to conduct regular performance reviews with individual Indian call centre workers. c. By using real-time monitoring systems that tracked metrics such as the number of calls answered, call handling times, and advisor break adherence. d. By requiring Indian call centre workers to log all customer interactions in a centralised database accessible to UK management.

Answer 15

c. By using real-time monitoring systems that tracked metrics such as the number of calls answered, call handling times, and advisor break adherence.

Question 16

16. What are the potential long-term consequences of offshoring service sector jobs on the labour market in developed countries? a. It could lead to an overall increase in wages and improved working conditions for service sector workers in developed countries due to reduced competition. b. It could result in a decline in the quality of service sector jobs available in developed countries, as companies seek to reduce costs and increase control over their workforce. c. It could lead to a shortage of skilled labour in developed countries, forcing companies to invest more in training and development. d. It could promote greater cultural understanding and cooperation between developed and developing countries.

Answer 16

b. It could result in a decline in the quality of service sector jobs available in developed countries, as companies seek to reduce costs and increase control over their workforce. c

Question 17

1. According to the source, what was a significant shortcoming of many companies’ supply chain management practices revealed by the COVID-19 pandemic? a. An over-reliance on artificial intelligence and automated systems. b. A lack of preparedness for large-scale disruptions with widespread effects. c. Insufficient investment in training and development for supply chain managers. d. A failure to adequately diversify sourcing strategies and supplier networks.

Answer 17

b. A lack of preparedness for large-scale disruptions with widespread effects.

Question 18

What does the ADDAPT framework, as presented in the source, aim to achieve? a. To eliminate all supply chain disruptions through proactive risk mitigation. b. To automate supply chain management processes and reduce reliance on human intervention. c. To enhance supply chain resilience by equipping companies to manage both known and unknown-but-knowable risks. d. To centralise supply chain management decision-making within a single, dedicated department.

Answer 18

c. To enhance supply chain resilience by equipping companies to manage both known and unknown-but-knowable risks.

Question 19

How did Loblaw initially react to the emergence of COVID-19? a. The company immediately recognised it as a potential supply chain disruptor and activated its emergency response plan. b. The company primarily viewed it as a health concern and implemented measures to protect employees and customers. c. The company proactively engaged with suppliers to assess potential disruptions and secure alternative sourcing options. d. The company leveraged its AI-powered demand management system to anticipate and mitigate potential product shortages.

Answer 19

b. The company primarily viewed it as a health concern and implemented measures to protect employees and customers.

Question 20

4. What challenge did Loblaw’s pandemic task force encounter in managing the supply chain disruption caused by COVID-19? a. They lacked access to real-time data on consumer demand and product availability. b. Their expertise was primarily focused on internal operations and did not extend to the company’s vendors. c. They faced resistance from employees who were unwilling to adapt to new procedures and protocols. d. They were hindered by outdated technology and a lack of investment in supply chain management systems.

Answer 20

b. Their expertise was primarily focused on internal operations and did not extend to the company’s vendors.

Question 21

5. Which of the following is NOT a capability included in the ADDAPT framework? a. Anticipate b. Diagnose c. Delegate d. Track

Answer 21

c. Delegate

Question 22

Which ADDAPT capability involves establishing “trip wires” to alert companies to potential supply disruptions? a. Anticipate b. Detect c. Diagnose d. Protect

Answer 22

b. Detect

Question 23

Which of the following actions is recommended for developing the “Anticipate” capability? a. Implementing real-time monitoring systems to track the flow of goods. b. Conducting drills and mock exercises to simulate supply disruptions. c. Formalising relationships with alternative suppliers for critical items. d. Centralising supply chain management decision-making under a senior executive.

Answer 23

b. Conducting drills and mock exercises to simulate supply disruptions.

Question 24

What does the “Diagnose” capability entail? a. Establishing communication protocols to alert stakeholders of potential supply chain disruptions. b. Analysing data in real-time and after a disruption to understand its root causes and formulate effective responses. c. Dedicating resources and implementing solutions to restore the flow of goods as quickly as possible. d. Revamping supply chains to prevent future disruptions by implementing long-term protection mechanisms.

Answer 24

. b. Analysing data in real-time and after a disruption to understand its root causes and formulate effective responses.

Question 25

What is the primary focus of the “Protect” capability? a. Preventing future supply chain disruptions by leveraging lessons learned from past experiences. b. Ensuring the availability of sufficient resources to respond to disruptions when they occur. c. Monitoring external conditions and identifying emerging threats to supply chain stability. d. Developing detailed emergency playbooks and training supply chain managers in their use.

Answer 25

a. Preventing future supply chain disruptions by leveraging lessons learned from past experiences.

Question 26

According to the source, what should companies do with the short-term solutions implemented during a supply chain disruption? a. Discard them once the crisis has passed and resume normal operations. b. Document them for future reference but avoid implementing them proactively. c. Share them with competitors to foster industry-wide collaboration on supply chain resilience. d. Systematically review and evaluate their effectiveness as potential long-term protection mechanisms.

Answer 26

d. Systematically review and evaluate their effectiveness as potential long-term protection mechanisms.

Question 27

What proportion of global GDP does the World Trade Organization estimate is currently accounted for by the service sector? a. One quarter b. Two-thirds c. One half
d. Three quarters

Answer 27

b. Two-thirds

Question 28

What economic indicator is used in the source to illustrate the growth of the service economy? a. Inflation rate b. Unemployment rate c. GDP composition by sector d. Balance of trade

Answer 28

c. GDP composition by sector

Question 29

What is a key factor contributing to the increasing importance of services in the global economy? a. Government subsidies for service industries b. Advancements in communication technology c. Declining demand for manufactured goods d. Increased consumer spending on luxury goods

Answer 29

b. Advancements in communication technology

Question 30

Which city serves as a primary example of deindustrialization in the source? a. New York b. London c. Detroit d. Pittsburgh

Answer 30

c. Detroit

Question 31

What was a significant social consequence of deindustrialization in Detroit? a. Widespread poverty and inequality b. A decrease in crime rates c. An increase in educational attainment d. A surge in property values

Answer 31

a. Widespread poverty and inequality

Question 32

What industry replaced steel as the largest employer in Pittsburgh in the 1980s? a. Technology b. Finance c. Health care d. Education

Answer 32

c. Health care

Question 33

What distinguishes the nature of employment in the health care sector compared to the steel industry in Pittsburgh, as described in the source? a. Health care jobs were primarily unionized, while steel jobs were not. b. Health care jobs offered higher wages and more benefits than steel jobs. c. Health care jobs tended to be more precarious and less well-paid than steel jobs. d. Health care jobs required a lower level of skill and education than steel jobs.

Answer 33

c. Health care jobs tended to be more precarious and less well-paid than steel jobs.

Question 34

What characteristic is attributed to the distribution of income in service-dominated economies? a. A normal distribution b. A U-shaped distribution c. A bell-shaped curve d. A linear relationship

Answer 34

b. A U-shaped distribution

Question 35

Which three cities are highlighted as examples of “global cities” in the 1980s? a. Los Angeles, Paris, Hong Kong b. New York, London, Tokyo c. Chicago, Berlin, Shanghai d. San Francisco, Toronto, Singapore

Answer 35

b. New York, London, Tokyo

Question 36

What factor led to the concentration of economic decision-making in global cities? a. Government policies promoting urban development b. The decline of manufacturing in rural areas c. The growth of multinational corporations and the increasing complexity of the global economy d. Improvements in transportation infrastructure connecting major cities

Answer 36

c. The growth of multinational corporations and the increasing complexity of the global economy

Question 37

Which of the following is the most accurate definition of offshoring, as presented in the source? a. Relocating a company’s headquarters to a foreign country with lower tax rates. b. Establishing production facilities outside a company’s home market to manufacture goods for sale back in that market. c. Outsourcing non-core business functions, such as customer service or IT support, to independent foreign suppliers. d. Investing in foreign companies to gain access to new markets and technologies.

Answer 37

b. Establishing production facilities outside a company’s home market to manufacture goods for sale back in that market.

Question 38

What key distinction is made between offshoring and outsourcing in the source? a. Offshoring exclusively involves manufacturing, while outsourcing encompasses a broader range of services. b. Offshoring entails establishing and managing a company’s own facilities in a foreign location, while outsourcing relies on external suppliers. c. Offshoring is primarily driven by a desire to reduce labor costs, while outsourcing aims to access specialized expertise. d. Offshoring is typically a long-term strategy, while outsourcing is often used for short-term projects.

Answer 38

b. Offshoring entails establishing and managing a company’s own facilities in a foreign location, while outsourcing relies on external suppliers.

Question 39

How does the source relate the concepts of deindustrialization and the rise of the service economy to offshoring? a. It argues that deindustrialization led to a decline in demand for services, prompting companies to offshore production. b. It suggests that as manufacturing jobs moved offshore, advanced economies shifted towards service sectors, and the competitive pressures of globalization also impacted services. c. It posits that offshoring in the service sector was the primary driver of deindustrialization in developed economies. d. It claims that the growth of the service economy mitigated the negative consequences of offshoring in manufacturing.

Answer 39

b. It suggests that as manufacturing jobs moved offshore, advanced economies shifted towards service sectors, and the competitive pressures of globalization also impacted services.

Question 40

According to the source, which historical period marked the significant rise of offshoring? a. The period following World War I b. The era of colonialism in the 1500s c. The period after World War II d. The early 21st century

Answer 40

c. The period after World War II

Question 41

Which of the following is NOT cited as a factor contributing to the rise of offshoring after World War II? a. The establishment of institutions like the IMF and World Bank b. The development of artificial intelligence and automation technologies c. Advancements in transportation, such as improved shipping and air travel d. Progress in communication technologies, including undersea cables and satellite technology

Answer 41

b. The development of artificial intelligence and automation technologies

Question 42

What industry serves as the initial example of offshoring in the source? a. The automotive industry b. The textile industry c. The electronics industry d. The pharmaceutical industry

Answer 42

c. The electronics industry

Question 43

Why did Japanese electronics companies initially establish factories in East Asia? a. To access raw materials not available in Japan b. To take advantage of government subsidies offered by East Asian countries c. To bypass trade restrictions imposed by the US d. To cater to the growing consumer market in East Asia

Answer 43

c. To bypass trade restrictions imposed by the US

Question 44

What is meant by the term “global production” as described in the source? a. Concentrating all stages of production in a single, highly efficient location. b. Distributing different stages of production across multiple countries based on factors like market conditions and available technology. c. Automating the entire production process to reduce reliance on human labor. d. Sourcing all components and materials from domestic suppliers to ensure quality control.

Answer 44

b. Distributing different stages of production across multiple countries based on factors like market conditions and available technology.

Question 45

What is the “tough choice” faced by companies considering offshoring, as discussed in the source? a. Deciding whether to prioritize cost reduction or environmental sustainability b. Determining whether to focus on mass production or customized products c. Choosing between operating a single global production system or maintaining separate factories for different markets d. Balancing the need for innovation with the pressure to maintain existing product lines

Answer 45

c. Choosing between operating a single global production system or maintaining separate factories for different markets

Question 46

What is a potential drawback of a highly integrated global production system, as highlighted in the source? a. It can lead to higher transportation costs due to the dispersed nature of production. b. It can create vulnerabilities, as disruptions in one part of the system can impact the entire process. c. It can limit a company’s ability to adapt to local market preferences and regulations. d. It can result in increased labor costs due to the need for highly skilled workers in multiple locations.

Answer 46

b. It can create vulnerabilities, as disruptions in one part of the system can impact the entire process.

Question 47

What legal case is presented in the source to illustrate the concept of offshoring finance? a. The Enron scandal b. The De Beers Consolidated Mines case c. The Panama Papers leak d. The Lehman Brothers bankruptcy

Answer 47

b. The De Beers Consolidated Mines case

Question 48

How did the De Beers case influence the practice of offshoring finance? a. It demonstrated the legality of tax avoidance through offshore shell companies. b. It established a precedent for multinational corporations to claim residency in tax havens. c. It prompted companies to move their headquarters to avoid taxation in their home countries. d. It revealed the ease with which companies could manipulate financial regulations in offshore jurisdictions.

Answer 48

c. It prompted companies to move their headquarters to avoid taxation in their home countries.

Question 49

What is the IMF’s definition of an offshore financial centre, as cited in the source? a. A country with low or no corporate income tax rates. b. A country or jurisdiction providing financial services to non-residents on a scale disproportionate to its domestic economy. c. A country that guarantees the anonymity of individuals and corporations holding assets within its borders. d. A country that lacks robust financial regulations and oversight, making it susceptible to illicit activities.

Answer 49

b. A country or jurisdiction providing financial services to non-residents on a scale disproportionate to its domestic economy

Question 50

What event is highlighted as a significant controversy surrounding offshore finance? a. The collapse of the Bernie Madoff Ponzi scheme b. The leak of the Panama Papers c. The global financial crisis of 2008 d. The Enron Corporation scandal

Answer 50

b. The leak of the Panama Papers

Question 51

What common historical factor is identified as contributing to the rise of both offshoring production and offshoring finance in the 1970s? a. The widespread adoption of personal computers and the internet b. The end of the Bretton Woods system of currency controls c. The formation of the World Trade Organization (WTO) d. The increased availability of venture capital funding for startups

Answer 51

b. The end of the Bretton Woods system of currency controls

Question 52

Which of the following statements best defines the service sector of the economy? a. The service sector involves the production of tangible goods that can be physically owned and traded. b. The service sector is characterised by intangible activities, such as transportation, haircuts, and hospitality. c. The service sector primarily focuses on the extraction and processing of natural resources, such as mining and agriculture. d. The service sector encompasses the manufacturing of goods using machinery and industrial processes.

Answer 52

b. The service sector is characterised by intangible activities, such as transportation, haircuts, and hospitality

Question 53

Which country has the world’s largest service sector? a. China b. Japan c. The United States d. Germany

Answer 53

c. The United States

Question 54

Which of the following is NOT one of the “five I’s” that define a service? a. Intangibility b. Inseparability c. Inventory d. Interoperability

Answer 54

d. Interoperability

Question 55

. Which of the following statements accurately describes the environmental impact of services? a. Services have negligible environmental impact because they do not involve the production of physical goods. b. While services do not produce physical goods, their provision and consumption can have significant environmental consequences. c. The environmental impact of services is always positive because they promote economic growth and job creation. d. The environmental impact of services is a concern only in developing countries with lax environmental regulations.

Answer 55

b. While services do not produce physical goods, their provision and consumption can have significant environmental consequences.

Question 56

What specific example of a polluting service is discussed in detail in the source? a. The airline industry b. The cruise industry c. The fast-food industry d. The online retail industry

Answer 56

b. The cruise industry

Question 57

What is a major environmental concern associated with the cruise industry, as highlighted in the source? a. Cruise ships generate excessive noise pollution, disrupting marine ecosystems. b. Cruise ships often dump untreated sewage and wastewater directly into the ocean. c. Cruise ship tourism contributes to the destruction of coral reefs and other sensitive marine habitats. d. Cruise ships release large amounts of plastic waste into the ocean, harming marine life.

Answer 57

b. Cruise ships often dump untreated sewage and wastewater directly into the ocean

Question 58

What type of waste do cruise ships burn at sea, contributing to air pollution? a. Only biodegradable waste, such as food scraps and paper products. b. Hazardous waste, including oil, sewage sludge, and biohazardous waste, as well as solid waste like plastics and metal. c. Nuclear waste from the ships’ power plants. d. Electronic waste from outdated navigation and entertainment systems.

Answer 58

b. Hazardous waste, including oil, sewage sludge, and biohazardous waste, as well as solid waste like plastics and metal

Question 59

According to the source, how do the sulfur emissions from a single cruise ship compare to those of cars? a. A single cruise ship produces the same amount of sulfur emissions as 10 cars. b. A single cruise ship causes as much smog-producing pollution as 350,000 cars. c. Cruise ships have advanced emission control systems that make their sulfur emissions negligible compared to cars. d. The sulfur emissions from cruise ships are offset by their use of renewable energy sources, such as solar and wind power.

Answer 59

b. A single cruise ship causes as much smog-producing pollution as 350,000 cars

Question 60

What are the Quaternary and Quinary sectors collectively known as? a. The Industrial Sector b. The Knowledge Economy c. The Manufacturing Sector d. The Agricultural Sector

Answer 60

b. The Knowledge Economy

Question 61

Which of the following activities is characteristic of the Quaternary sector? a. Mining and resource extraction b. Manufacturing and assembly of goods c. Research and development, education, and information technology d. Agriculture and food production

Answer 61

c. Research and development, education, and information technology

Question 62

What primarily distinguishes the Quinary sector from the Quaternary sector? a. The Quinary sector involves manual labour, while the Quaternary sector involves intellectual labour. b. The Quinary sector involves top-level decision making, while the Quaternary sector focuses on knowledge-based services. c. The Quinary sector is dominated by private companies, while the Quaternary sector is primarily government-run. d. The Quinary sector is more prevalent in developing countries, while the Quaternary sector is concentrated in developed countries.

Answer 62

b. The Quinary sector involves top-level decision making, while the Quaternary sector focuses on knowledge-based services.

Question 63

What term is sometimes used to describe professionals working in the Quinary sector? a. Blue-collar workers b. White-collar workers c. Pink-collar workers d. Gold-collar professionals

Answer 63

d. Gold-collar professionals

Question 64

What is the central puzzle that the source seeks to explain? a. Why Wal-Mart’s “Everyday Low Prices” strategy failed to attract German consumers. b. Why Wal-Mart, a highly successful global retailer, was unable to establish itself in the German market. c. Why German consumers prefer shopping at smaller, local stores rather than large superstores. d. Why German labour unions opposed Wal-Mart’s entry into the country.

Answer 64

b. Why Wal-Mart, a highly successful global retailer, was unable to establish itself in the German market.

Question 65

What is the author’s main argument regarding Wal-Mart’s failure in Germany? a. Wal-Mart underestimated the strength of German unions and the rigidity of the German labour market. b. Wal-Mart failed to adapt its business model to the specific cultural and institutional context of Germany. c. German consumers were resistant to the American-style shopping experience offered by Wal-Mart. d. Wal-Mart’s acquisition strategy was flawed, leading to high costs and an unfavourable brand image.

Answer 65

b. Wal-Mart failed to adapt its business model to the specific cultural and institutional context of Germany

Question 66

Which of the following is NOT cited as a constraint on globalization in the retail sector? a. The need for physical stores and local supplier networks. b. Divergent consumer tastes in different countries. c. The rise of e-commerce and online shopping platforms. d. Regulations specific to the retail sector in different countries.

Answer 66

c. The rise of e-commerce and online shopping platforms

Question 67

What specific examples does the source provide of foreign retail companies that have successfully established themselves in the German market? a. Tesco, Carrefour, and Metro b. IKEA, H&M, Ebay, and Amazon c. Aldi and Trader Joe’s d. Lands’ End and McDonald’s

Answer 67

b. IKEA, H&M, Ebay, and Amazon

Question 68

How does the source characterise the German retail market in terms of efficiency? a. The German retail market is highly efficient, with low prices and thin profit margins. b. The German retail market is inefficient due to overregulation and a lack of competition. c. The German retail market is dominated by large, publicly traded companies that stifle innovation. d. The German retail market is characterised by high levels of consumer spending and brand loyalty.

Answer 68

a. The German retail market is highly efficient, with low prices and thin profit margins

Question 69

What were some of the specific management mistakes that Wal-Mart made in Germany? a. Frequent changes in CEO, failure to utilise the existing management talent from acquired companies, and an inability to establish strong relationships with suppliers. b. Aggressive price-cutting that triggered a price war and alienated competitors. c. Over-reliance on advertising and marketing campaigns that did not resonate with German consumers. d. Failure to secure prime retail locations due to strict zoning regulations.

Answer 69

a. Frequent changes in CEO, failure to utilise the existing management talent from acquired companies, and an inability to establish strong relationships with suppliers.

Question 70

Which of the following best describes the German system of labour relations, as presented in the source? a. Adversarial, with a strong emphasis on individual bargaining power. b. Consensual, with a focus on cooperation between employers, workers, and unions. c. Highly regulated, with strict government control over wages and working conditions. d. Decentralised, with wage negotiations taking place primarily at the company level.

Answer 70

b. Consensual, with a focus on cooperation between employers, workers, and unions.

Question 71

How did Wal-Mart’s approach to labour relations clash with German norms? a. Wal-Mart paid its employees significantly lower wages than other German retailers. b. Wal-Mart refused to recognise the role of trade unions in the workplace. c. Wal-Mart implemented American-style management practices that were perceived as authoritarian by German workers. d. Wal-Mart rejected the established system of collective bargaining and neglected to consult with work councils.

Answer 71

d. Wal-Mart rejected the established system of collective bargaining and neglected to consult with work councils.

Question 72

What examples does the source give of Wal-Mart’s people policies that backfired in Germany? a. Offering employee discounts and stock options, which were perceived as unfair by non-employee customers. b. Implementing a strict dress code that was seen as too formal for the German retail environment. c. Introducing the Wal-Mart Cheer and the practice of greeters, which were not well-received by German employees and customers. d. Providing extensive training and development opportunities for employees, which were seen as unnecessary by German workers.

Answer 72

c. Introducing the Wal-Mart Cheer and the practice of greeters, which were not well-received by German employees and customers.

Question 73

How did Germany’s institutional features, such as zoning regulations and shopping hour restrictions, impact Wal-Mart’s strategy? a. They made it difficult for Wal-Mart to establish its preferred big-box store format and 24/7 operating model. b. They gave an unfair advantage to smaller, local retailers who were exempt from these regulations. c. They forced Wal-Mart to significantly increase its prices to cover the costs of compliance. d. They prevented Wal-Mart from accessing prime retail locations in major cities.

Answer 73

a. They made it difficult for Wal-Mart to establish its preferred big-box store format and 24/7 operating model.

Question 74

What is the significance of Germany’s antitrust and unfair trading regulations in the context of Wal-Mart’s entry? a. They allowed German competitors to collude and fix prices, making it impossible for Wal-Mart to compete on price. b. They limited Wal-Mart’s ability to engage in aggressive price-cutting and dumping practices to gain market share. c. They forced Wal-Mart to adhere to strict environmental standards that increased its operating costs. d. They created a complex bureaucratic process that delayed Wal-Mart’s entry into the market.

Answer 74

b. They limited Wal-Mart’s ability to engage in aggressive price-cutting and dumping practices to gain market share.

Question 75

How does the source characterise the ownership structure of most German retailers? a. Predominantly family-owned or organised as cooperatives, not publicly traded. b. Largely controlled by foreign investors, particularly from the United States. c. Dominated by a few large conglomerates with significant market power. d. Heavily reliant on government subsidies and protectionist policies.

Answer 75

a. Predominantly family-owned or organised as cooperatives, not publicly traded.

Question 76

What is the key difference between shareholder capitalism (common in the US) and stakeholder capitalism (common in Germany) highlighted in the source? a. Shareholder capitalism prioritises the interests of employees and customers, while stakeholder capitalism focuses on maximising profits for investors. b. Shareholder capitalism emphasises short-term profits for investors, while stakeholder capitalism considers the interests of a wider range of stakeholders, including employees, suppliers, and the local community. c. Shareholder capitalism is more common in developed economies, while stakeholder capitalism is prevalent in developing countries. d. Shareholder capitalism promotes competition and innovation, while stakeholder capitalism leads to stagnation and inefficiency.

Answer 76

b. Shareholder capitalism emphasises short-term profits for investors, while stakeholder capitalism considers the interests of a wider range of stakeholders, including employees, suppliers, and the local community.

Question 77

What is the broader implication of Wal-Mart’s failure in Germany for theories of globalization? a. Globalization is an unstoppable force that will eventually homogenise all cultures and economies. b. Globalization is a complex process that is shaped by local cultures and institutions, and there is no single “best practice” that guarantees success in all markets. c. Globalization primarily benefits large multinational corporations at the expense of local businesses and workers. d. Globalization is a myth, and national borders remain the most important factor in determining economic success.

Answer 77

b. Globalization is a complex process that is shaped by local cultures and institutions, and there is no single “best practice” that guarantees success in all markets.

Question 78

What is the author’s conclusion regarding the potential for future success by Wal-Mart or other foreign retailers in Germany? a. Success is impossible because German consumers are inherently resistant to foreign products and services. b. Success is likely if companies replicate the strategies that have proven successful in the United States. c. Success is possible if companies adapt their business models to the specific cultural and institutional context of Germany, particularly by embracing a more consensual and cooperative approach. d. Success is dependent on the German government implementing policies that make the country more attractive to foreign investment.

Answer 78

c. Success is possible if companies adapt their business models to the specific cultural and institutional context of Germany, particularly by embracing a more consensual and cooperative approach.