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Indirect exporting.

Question 1
Using intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is usually associated with

a. Direct exporting.

b. Licensing.

c. Franchising.

d. Indirect exporting.

Question 2
What dictates the choice of a multinational entry-mode strategy?

a. Strategic competition

b. Strategic reason to be in the market

c. Companies want to achieve economies of scale

d. Companies want to share risks and costs of developing technology

Question 3
The global solution to the global-local dilemma refers to

a. Conducting business similarly around the world.

b. Responding to differences in the global markets in which a company operates.

c. Customization of products to regional but not country differences.

d. None of the above

Question 4
Foreign direct investment

a. Is an entry-mode strategy.

b. Means that a multinational owns, in part or in whole, an operation in another country.

c. Symbolizes the highest rate of internationalization.

d. All of the above

Question 5
Which of the following statements regarding exporting is FALSE?

a. Exporting is the easiest of entry-mode strategies.

b. Because it is the easiest form of going international, exports are not as important to the US economy.

c. Export can be indirect where companies rely on intermediaries to sell overseas.

d. Export can be of the passive form where overseas orders are treated like domestic orders
Question 6
A __ helps link the organization horizontally.

a. Centralized operations

b. Coordination system

c. Control system

d. Cultural system

Question 7
All of the following statements are true about the functional structure EXCEPT

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

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

c. The functional structure is the simplest of organizations.

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

Question 8
_ mean/means that management locates subsidiaries anywhere in the world where they can benefit the company.

a. Dispersed subunits

b. Specialized operations

c. Interdependent relationships

d. None of the above

Question 9
The type of vertical control mechanism most often associated with a profit center is

a. Bureaucratic.

b. Cultural.

c. Output.

d. Decision making.

uestion 10
Equity in a strategic alliance implies

a. Labor skills.

b. Ownership.

c. Domination.

d. None of the above

Question 11
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

Question 12
If strategic alliance partners have different technologies or know-how and they contribute this knowledge equally, they often prefer

a. Dominant management structure.

b. Rotating management structure.

c. Split management structure.

d. Shared management structure.

Question 13
Suggested ways to build and sustain commitment in strategic alliances include

a. Go slowly.

b. Be the dominant partner.

c. Use extensive written documentation.

d. Keep your goals secret so your partner does not get nervous about your intentions.

Question 14
Which of the following statements regarding globalizing through the Internet is not true?

a. A company that globalizes through the Internet must still decide whether to go global or to require localization to national or regional levels.

b. A company that globalizes through the Internet does not have to be concerned with the global-local dilemma.

c. A company that globalizes through the internet must still address the traditional problems of multinational business (i.e., currencies, local laws, infrastructure for delivery).

d. A company that globalizes through the Internet still faces the same challenges that a brick and mortar company faces.

Question 15
Southeast Asian countries represent opportunities for e-commerce growth due to

a. Spanish language websites.

b. Global demand.

c. Internet economy.

d. Membership in ASEAN.
Question 16
According to the text, where is the greatest potential for e-commerce businesses?

a. South America

b. Asia

c. The European Union

d. North America

Question 17
Which of the following strategies is a pure e-business least likely to be concerned with when facing e-commerce challenges?

a. Maintaining rapid decision making, creativity, innovation, and flexibility

b. Developing information and management systems to respond to rapid growth

c. Altering HR programs to suit the different skill requirements of e-commerce employees

d. Attracting and retaining e-commerce-capable talent

Question 18
A new trend is that multinationals are using ___ to their advantage.

a. Tall hierarchical web structures

b. Tacit knowledge

c. User Generated Content

d. None of the above

Question 19
Companies with a multi-local strategy are most likely to have a

a. A global HRM orientation.

b. A geocentric orientation.

c. Either a ethnocentric or regiocentric HRM orientation.

d. A polycentric HRM orientation.

Question 20
Companies with a global HRM orientation

a. Focus primarily on language training as preparation for expatriate assignments.

b. Use similar pay and benefit packages for all international assignments.

c. Evaluate their managers by headquarters’ country standards.

d. Usually provide significant extra pay for expatriate assignments.

Question 21
Difficulties that managers face in coming back to their home countries and reconnecting with their home organizations is known as the

a. Low home re-adaptation index.

b. Repatriation problem.

c. Expatriation problem.

d. Reverse culture shock.

Question 22
Which of the following is NOT true regarding low training rigor?

a. Low training rigor usually includes briefings concerning company operations.

b. Low training rigor usually includes lectures and videos on the local culture.

c. Low training rigor usually lasts for a short period.

d. Low training usually lasts over two months.

Sample Solution

more worth than the “big-box-king” (Meyer, 3). A quick statistic: Around 44 cents of every single dollar which an American is spending online, goes to Amazon. Not even close, but the next biggest online retailer is eBay, with only six cents of every dollar. Even when the conditions were different back then, the problems and issues are still pretty similar. Jobs and politics back then in the Gilded Age were different than today. Back then in the Gilded Age, most of the employees do not have to have a high degree or at least the requirement were not as strict as today. Today in order to obtain a really good job, job seekers need to obtain a bachelor or a master’s degree with in a field. The minimum wage in the United States, set by the US labor law and a range of state and local laws, is $7.25 per hour. And if an employee does not want to work in a certain industry, they still can change their job by learning something different. Education is much easier in the current time age than back then. However, monopolies still affect the workers. Probably not as the same way back then, but still in their selling prices (and so, also if they can increase their wages, or leave it on the minimum wage of $7.25 per hour) and how they manipulate other businesses and their employees to increase their profit margins. “Monopoly power allows a company that has eaten up an entire industry to fix prices for consumers, driving them higher than they would be if other companies were able to compete in the same market and offer lower prices.” (Covert, 3). In the Gilded Age, the monopolies like Andrew Carnegie’s U.S. Steel or John D. Rockefeller’s Oil refinery etc. controlled the economics of United States. But also, today it is “impossible for employees to leave for a better-paying job elsewhere” (Covert, 3). Companies regulate their own prices, in favor of their profit. The main goal of almost every business person, is to get the highest most possible profit and win. Customers will prefer a company which offers the lowest price and will regard the high-price-companies. Even though, most of the people would say, that monopolies do not have a big influence on the economic, as it was back then in the Gilded Age. Nevertheless, it still does affect the way how customers think or handle by regulating very cheap prices, manipulate smaller businesses and do not increasing the wages. Monopolies in the Gilded Age brought many jobs to the nation’s citizen, but they also set the wage very low, why also labor unions were created. Some obdurate Politician took benefit on the monopolies to strengthen their campaigns for their presidential elections, like the one in 1896 between Democra
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