Graded Homework

Question 1

Cross-border allies
usually collaborate effectively, and are most often associated with long
lasting trust and loyalty.

	True
	False

Question 2

People with high
uncertainty avoidance are motivated by more risky opportunities for variety and
fast-track advancement.

	True
	False

Question 3

Research indicates
that correspondence through e-mails is the best way to kick off a virtual team
project.

	True
	False

Question 45 pts

Feelings of alienation
due to the loss of contact with family, friends, and daily life speed up the
resocialization process.

	True
	False

Question 5

Organizing to
facilitate a globalization strategy does not involve rationalization.

	True
	False

Question 6

In the globalized
economy, the knowledge and management resources required for the firm to
succeed are no longer concentrated in a single region but are distributed
around the world.

	True
	False

Question 7

Managers around the
world have similar needs but show differing levels of satisfaction of those
needs derived from their jobs.

	True
	False

Question 8

To maximize the
long-term use of their global cadre, companies need to make sure that the
foreign assignment and the reintegration process are positive experiences.

	True
	False

Question 9

Local managers are, by
and large, ineffective in dealing with problems in sensitive political
situations.

	True
	False

Question 10

High power distance
implies that people would be more motivated by teamwork and relations with
peers.

	True
	False

Question 11

According to Hofstede,
the crucial fact to grasp about leadership in any culture is that it is a
complement to “subordinateship.”

	True
	False

Question 12

In general,
decentralized decision making is common for functions such as finance, and
research and development that are organized for the entire corporation, whereas
other functions such as production, marketing, and sales are more appropriately
centralized.

	True
	False

Question 13

The need to outsource
employees is a complex issue for international human resource (IHR) managers as
they seek to support strategic mandates.

	True
	False

Question 14

An equity strategic
alliance is a new independent entity jointly created and owned by two or more
parent companies.

	True
	False

Question 155 pts

Small firms typically
start their international involvement by establishing international divisions.

	True
	False

Question 16

The most important
single factor determining International Joint Venture success or failure
is the choice of a partner.

	True
	False

Question 17

International human
resource management is a vital component of implementing global strategy.

	True
	False

Question 18

One major disadvantage
of cross-border alliances is that there is a potential loss of a company’s
technology and knowledge.

	True
	False

Question 19

To address the
globalization–localization dilemma, firms that have evolved through the
multinational form and the global company seek the advantages of horizontal
organization in the pursuit of transnational capability.

	True
	False

Question 20

To ensure that
expatriates do not lose out through their overseas assignment, the going-rate
approach is often used to equalize the standard of living between the host
country and the home country.

	True
	False

Question 21

Lauryn, an American
national, was sent to Japan on an assignment. According to her, it was during
this time that she learned to understand situations from the viewpoint of local
employees and business people. As an expatriate, which of the following skills
did Lauryn attain?

	multiple perspectives
	ability to work with others

	tolerance for ambiguity
	technical skills

Question 22

Which of the following
is true with regard to the global functional structure?

	The global functional structure results in plants that serve widely different markets.
	The global functional structure is most advantageous for firms with diversified product lines that have different technological bases and that are aimed at dispersed markets.

	The global functional structure is used primarily by large firms with highly decentralized systems.
	Foreign operations in a global functional structure are integrated into the activities and responsibilities of each department to economies of scale.

Question 23

Which of the following
is true about collectivist cultures?

	People place high emphasis on autonomy, opportunities for personal achievements, and a work–life balance.
	People are motivated when they feel that the company is providing them with good working conditions, fringe benefits, and training.

	People typically opt for high pay, personal accomplishment, and job advancement.
	People typically opt for risky opportunities for variety and fast-track advancement.

Question 24

Which of the following
is an advantage of the polycentric staffing approach?

	Home-country managers gain valuable overseas management experience.
	Coordination between the subsidiary and the parent company is simplified.

	Local managers tend to be instrumental in staving off or more effectively dealing with problems in sensitive political situations.
	The local managers have no conflicting loyalties.

Question 25

Which of the following
is the final stage of the IHRM process that is used to maximize the
effectiveness of expatriate assignments?

	selection of expatriate
	debriefing expatriate and family to improve IHRM process

	development of contract
	assessment of development and support needs

Question 26

________ are managers
with global experience who are transferred to the organization’s headquarters
country, so their overseas business and cultural experience and contacts can
facilitate interactions among the country’s far-flung operations.

	Inpatriates
	Third-country nationals

	Host-country nationals
	Repatriates

Question 27

Historically, a firm
reorganizes as it internationalizes to ________.

	inhibit organizational change
	curb competition

	boost domestic competition
	accommodate new strategies

Question 28

In addition to the
global war for talent, there are considerable strategic competitive challenges
for firms. Which of the following is one such challenge?

	increasing talent in order to lower the costs of operations
	relocating operations around the world

	obtaining competent talent at higher wages than competitors
	obtaining talent using a regiocentric approach

Question 29

SoftCorp and TechGig,
upcoming software companies in San Diego, have decided to create a new and
independent telecommunications company, ST-source. Each parent firm has agreed
to have 50 percent equity in the new company. This is an example of a(n)
________.

	e-business
	subsidiary

	franchise
	joint venture

Question 30

Sigma Inc. is designed
on the basis of the company’s business activities such as production, finance,
and marketing. Foreign operations at Sigma are integrated into the activities
and responsibilities of each division to achieve economies of scale and operative
specialization. In other words, Sigma has a(n) ________.

	domestic structure with foreign subsidiary
	domestic structure with export department

	global functional structure
	international division structure

Question 31

Felix Johnson is a senior
HR manager in a global conglomerate. He believes that an important factor
contributing to international competitiveness is the ability of an organization
to maximize its global human resources in the long run. With which of the
following is Felix most likely to agree?

	Outsourcing is the most logical method of achieving economies of scale and maximizing benefits.
	Extensive training programs are unlikely to help organizations improve the quality of their workers.

	The promotion of women in international management is unlikely to positively impact an organization’s competitiveness in the global business arena.
	Maximizing long-term retention through career management increases the odds in favor of global competitiveness.

Question 32

Jeff Richards works
for an American MNC. For more than 10 years, Jeff was posted in the company’s
subsidiary in Ghana. Upon returning to his home country a few months ago, Jeff
reported that his international experience had substantially enhanced his skills
of making decisions with less information and more uncertainty about the
outcome. In this instance, Jeff alludes to which of the following acquired
skills?

	tolerance for ambiguity
	technical skills

	managerial skills
	multiple perspectives

Question 33

No matter what the
stage of internationalization, a firm’s structural choices always involve

	low standardization procedures
	integration and differentiation

	vertical job specialization
	mass marketing and niche marketing

Question 34

The term ________
describes a collection of managers in or from several countries who must rely
on group collaboration if each member is to experience optimum success and goal
achievement.

	global management team
	niche management team

	niche management team
	strategic management team

Question 35

Which of the following
is true about the matrix structure of organizational design?

	The matrix structure is developed to combine geographic support for both global integration and local responsiveness.
	Regional managers are solely responsible for the operations and performance of the countries within a given region.

	In the matrix structure, communication problems, confusion, and conflict are minimal.
	Overlapping responsibilities are absent in a matrix structure.

Question 36

Mike Norris was
assigned as a business manager at an American MNC’s Russian subsidiary. In
order to motivate his subordinates, Mike delegated limited authority to some of
them. However, it did not work out as he expected. Which of the following is
most likely the reason behind the plan’s failure?

	Workers in Russia are less likely to use their own judgment in making decisions.
	The Russian culture is characterized by a low power distance.

	The Russian culture is highly individualistic in nature.
	Workers in Russia prefer self-managed work teams.

Question 37

Blackmoor Industries
is an American firm that manufactures automotive parts. The firm has several
manufacturing facilities in the U.S. and one in a foreign country. Blackmoor’s
global managers have recently reported that workers in the foreign facility are
more comfortable with the traditional division of work and roles. Consequently,
flexible roles and work networks are unlikely to find favor in this particular
facility, unlike in those spread across the U.S.

If the above
information is true, which of the following can be fittingly inferred?

	Blackmoor’s foreign facility is located in a low uncertainty avoidance culture.
	Blackmoor’s foreign facility is located in a highly individualist culture.

	Blackmoor’s foreign facility is located in a masculine culture.
	Blackmoor’s foreign facility is located in a low power distance culture.

Question 38

In the context of
needs, Eastern cultures tend to focus on ________.

	the needs of the individual
	the needs of society

	materialistic needs
	self-actualization needs

Question 39

A global staffing
policy ________.

	avoids recruiting third-country nationals
	relies primarily on local managers to fill key managerial positions abroad

	is overly in favor of filling key managerial positions with people from headquarters
	provides a greater pool of qualified and willing applicants from which to choose

Question 40

For companies to
maximize the long-term use of their global cadre, they need to make sure that
________.

	cross-cultural entry and training are given far more importance than managing the reentry phase of the career cycle
	the foreign assignment and the reintegration process are positive experiences

	the potential effects of reverse culture shock are maximized
	communication with the home office are minimized

Question 41

Reverse culture shock
occurs primarily because of the difficulty of ________.

	learning foreign languages
	reuniting with family members

	reintegrating into the organization
	adapting to foreign cultures

Question 425 pts

All of the following
are examples of international joint venture control mechanisms used by parent
firms EXCEPT ________.

	staffing policies
	legal contracts

	regional authorities
	organizational design

Question 43

Which of the following
factors has the maximum influence on the success of multinational firm
alliances?

	form of governance chosen
	introduction of new competition

	differing national cultures
	cumulative learning of partner

Question 44

For most people, the
basic meaning of work is tied to ________.

	self-actualization needs
	subordinateship

	group membership
	economic necessity

Question 45

Which of the following
is the most beneficial aspect of an international joint venture?

	the international partner receives the entire profit
	) the responsibility of risks is solely taken by the international partner

	the partner’s local contacts and markets will be utilized
	the entire cost of production will be borne by the local partner

Question 46

________ are
partnerships between two or more firms that decide they can better pursue their
mutual goals by combining their resources as well as their existing distinctive
competitive advantages.

	Greenfield investments
	Strategic alliances

	Foreign subsidiaries
	Turnkey operations

Question 47

France’s Thomson
Electronics combined with China’s TCL to form TCL-Thomson Electronics. Thomson
owns 33% and TCL owns the remaining 67% of TCL-Thomson Electronics. This is
best described as a(n) ________.

	turnkey operation
	acquisition

	international licensing agreement
	equity strategic alliance

Question 48

Which of the following
is NOT one of the typical reward categories in the United States?

	job content
	cultural

	financial
	social status

Question 49

________ is increasingly
being recognized as a major determinant of success or failure in international
business.

	International human resource management
	Procurement of raw materials from abroad

	Outsourcing
	Insourcing

Question 50

With the geographic structure,
the focus is on ________, since products can be adapted to local requirements.

	marketing
	innovation

	divesting
	importing