1) Experts suggest that firms that want to
globalize through e-commerce must first localize, which means that firms need
suppliers, vendors, and distributors to manufacture products for the local
B.modify their products
and services to meet the needs and interests of local cultures
products in a brick-and-mortar store before selling them through an e-market
products and services in local markets before selling them over the Internet
2) Which of the following behaviors is
inconsistent with Casse’s profile of successful American negotiators?
A.Refusing to make
concessions in advance
good sense of timing
C.Being quiet and
3) Dell most likely offshores product support
service jobs to India because of the
technical knowledge of Indian workers
center experience of Indian workers
costs associated with Indian workers
preference for interacting with Indian workers
4) In the context of doing business in Asia,
what is meant by the phrase “the contract is in the relationship, not on
are not legally binding for MNCs.
ceremoniously destroyed after they are written.
being offensive to Asians by requiring contracts.
nurture the relationship to ensure the reliability of the contract.
5) The ________ model of leadership style has
been recommended by American research studies as one more likely to have
positive results with American employees.
6) Which of the following is a similarity
between the negotiation styles of both North Americans and Latin Americans?
sensitivity is highly valued.
commitment is shown to the employer.
importance is given to documentation.
argumentative when they think they are right.
7) Arab negotiators will most likely make
concessions because of their interest in
8) According to research, what is the most
significant monetary benefit for firms that implement corporate social
9) Which of the following statements about the
Foreign Corrupt Practices Act (FCPA) is NOT true?
A.The FCPA allows
grease payments as long as they are lawful in the host country.
penalties for violating the FCPA include severe fines and imprisonment.
C.The FCPA allows
firms to give government officials gifts in exchange for help.
D.The FCPA applies
only to U.S.-based multinational corporations.
10) John Smith travels back and forth between
the United States and Saudi Arabia as an international manager. On John’s most
recent trip to Saudi Arabia, he presents his business associate, Tariq Ahmed,
with a silk scarf. The scarf is intended as a gift for Tariq’s wife. John’s
actions will most likely be viewed by Tariq as
gesture from the American
and impolite gesture
punishable by imprisonment
D. an obligation that must be reciprocated
11) Stereotyping should most likely be avoided
by international managers because
variables of culture are grossly inaccurate
have diverse subcultures
outlaw the practice
12) Sweden barring airlines from transmitting
passenger information most likely illustrates the
the Internet by Swedish citizens
of privacy rights in Sweden
the Internet to international business
culture on Internet usage
13) Which of the following is the primary
reason for ineffective cross-cultural business negotiations?
knowledge about native bargaining rituals
restrictive government legislation
14) Most small and medium-sized enterprises are
on the local level due to technological and financial constraints
heavily in world markets by offshoring their labor activities
their national economies through exporting
avoid becoming globalized too quickly
15) What is the best method for avoiding
D.Relying on a
16) Problems associated with cross-cultural
negotiations and decision making styles are the primary reasons for
against MNCs by angry shareholders
numbers of international joint ventures
regulations within the European Union
hardships in former socialist countries
17) Which of the following significantly
increases the complexity of corporate social responsibility for MNCs?
the home office and the subsidiaries
of training managers in different cultures
stakeholders associated with the firm’s activities
laws, regulations, and moral principles
18) Primo is a multinational enterprise based
in California that manufactures and sells affordably priced athletic shoes in
retail stores around the world. A Primo manufacturing subsidiary in China
employs over 20,000 locals. Primo executives recently learned of human rights
violations at the firm’s China subsidiary. Workers had been forced to work more
than 60 hours each week, and minimum wage laws were regularly ignored. As a
result, Primo executives need to decide whether to continue operations in China.
Which of the following, if true, would best support a decision by Primo to
remain in China?
B.Sales of Primo’s
competitors drop sharply.
manufacturing jobs decrease in number.
sector jobs become available in China.
19) Which of the following is a common Chinese
tactic used during negotiations with Americans?
answer the Americans’ questions or respond to their inquiries
the Americans are reneging on their friendship
compromise until the last possible moment
concessions relating to product delivery time
20) What is the most likely reason that over
half of the Saudi workforce consists of foreigners?
A.High wage rates
and low taxes for expatriates at Saudi-based MNEs
attitudes among Saudi Arabians regarding hard work
tight restrictions on male and female workers
D.Lack of Saudi
government support for university training
21) A French businessman has a meeting scheduled
with a Brazilian businessman to negotiate terms of a joint venture. The
Frenchman prepares for the meeting in the way he always does when negotiating
with French firms. The Frenchman assumes that the Brazilian will perceive and
reason the way he does. Which of the following terms best describes the
22) Which of the following best explains why
Avon expanded to the international market?
domestic competition in the door-to-door cosmetic industry
of American women in the workforce
restrictions on cosmetics in the Chinese market
of qualified sales representatives in the United States
23) John is an American manager working at his
firm’s subsidiary in Indonesia. A local government official tells John that
materials could be delivered to the firm’s facility more quickly if John pays
an extra fee to the port supervisor. What should be John’s first action?
supervisor in the United States.
issue with his local agent.
C.Refer to the
company’s code of ethics.
American and Indonesian laws.
24) An international manager can best develop
an understanding of a particular culture by
cultural profile for that country or region in which the firm does business
American cultural styles and practices can be successfully transplanted
stereotypes to develop cross-cultural understanding in a business setting
rather than expatriates for management positions in overseas subsidiaries
25) Tom manages a U.S. pharmaceutical
subsidiary located in Ireland. In order to communicate effectively with Irish
employees, Tom should most likely
specific results be met
support to workers
conflicts during group meetings
26) Which of the following is a typical value
in U.S. culture?
for a lifetime.
because of luck.
should be honored.
relative to other priorities.
27) A person working in a high-contact culture
will most likely experience which of the following?
spending time together socially
hand motions to express emotion
speaking to subordinates quickly and rudely
greeting each other with a double handshake
28) How will negotiators most likely benefit
from exhibiting an understanding of the opponents’ viewpoints during
succumb quicker to concession strategies than to aggressive bargaining tactics.
sides promotes the assessment of a wide range of resolution alternatives.
appeals not backed by information will be more persuasive to skeptical
demand that each side share their weaknesses during the negotiation process.
29) Contingency theory proposes that the best
organizational structure is that which
A.enables a firm
to globalize quickly
B.leads to a
high-efficiency work system
balanced control of subsidiaries
D.allows the firm
to carry out its strategic goals
30) Trust most likely improves cross-cultural
managers to network effectively
legal contracts for global firms
open exchange of ideas and information
variables that hinder the communication process