Experts suggest that firms that want to globalize through e-commerce must first localize, which means that firms need to
1) Experts suggest that firms that want to globalize through e-commerce must first localize, which means that firms need to
A.use local suppliers, vendors, and distributors to manufacture products for the local market
B.modify their products and services to meet the needs and interests of local cultures
C.sell their products in a brick-and-mortar store before selling them through an e-market
D.test their
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
B.Exhibiting a good sense of timing
C.Being quiet and not arguing
D.Understanding the issues
3) Dell most likely offshores product support service jobs to India because of the
A.superior technical knowledge of Indian workers
B.extensive call center experience of Indian workers
C.lower payroll
costs associated with Indian workers
D.customer
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 the paper”?
A.Asian contracts
are not legally binding for MNCs.
B.Contracts are
ceremoniously destroyed after they are written.
C.Managers risk
being offensive to Asians by requiring contracts.
D.Managers should
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.
A.autocratic
B.charismatic
C.transactional
D.participative
6) Which of the following is a similarity
between the negotiation styles of both North Americans and Latin Americans?
A.Emotional
sensitivity is highly valued.
B.A strong
commitment is shown to the employer.
C.Significant
importance is given to documentation.
D.Negotiators are
argumentative when they think they are right.
7) Arab negotiators will most likely make
concessions because of their interest in
A.saving valuable
time
B.preventing
embarrassment
C.forming
long-term relationships
D.implementing
spontaneous decisions
8) According to research, what is the most
significant monetary benefit for firms that implement corporate social
responsibility?
A.Employee
retention
B.High recruitment
rates
C.Increased brand
value
D.Improved
organizational culture
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.
B.Possible
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
A.a thoughtful
gesture from the American
B.an inappropriate
and impolite gesture
C.a bribe
punishable by imprisonment
D. an obligation that must be reciprocated
11) Stereotyping should most likely be avoided
by international managers because
A.current
variables of culture are grossly inaccurate
B.many cultures
have diverse subcultures
C.many countries
outlaw the practice
D.national culture
is nonexistent
12) Sweden barring airlines from transmitting
passenger information most likely illustrates the
A.dependence on
the Internet by Swedish citizens
B.lax enforcement
of privacy rights in Sweden
C.importance of
the Internet to international business
D.impact of
culture on Internet usage
13) Which of the following is the primary
reason for ineffective cross-cultural business negotiations?
A.Insufficient
knowledge about native bargaining rituals
B.Highly
restrictive government legislation
C.Poorly planned
business strategies
D.Language
differences
14) Most small and medium-sized enterprises are
A.competing only
on the local level due to technological and financial constraints
B.investing
heavily in world markets by offshoring their labor activities
C.contributing to
their national economies through exporting
D.attempting to
avoid becoming globalized too quickly
15) What is the best method for avoiding
miscommunications?
A.Taking detailed
notes
B.Learning foreign
phrases
C.Practicing
projective listening
D.Relying on a
language interpreter
16) Problems associated with cross-cultural
negotiations and decision making styles are the primary reasons for
A.lawsuits filed
against MNCs by angry shareholders
B.decreasing
numbers of international joint ventures
C.increasing
regulations within the European Union
D.economic
hardships in former socialist countries
17) Which of the following significantly
increases the complexity of corporate social responsibility for MNCs?
A.distance between
the home office and the subsidiaries
B.difficult nature
of training managers in different cultures
C.additional
stakeholders associated with the firm’s activities
D.international
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?
A.Primo becomes
SA8000 certified.
B.Sales of Primo’s
competitors drop sharply.
C.U.S.
manufacturing jobs decrease in number.
D.More service
sector jobs become available in China.
19) Which of the following is a common Chinese
tactic used during negotiations with Americans?
A.Refusing to
answer the Americans’ questions or respond to their inquiries
B.Suggesting that
the Americans are reneging on their friendship
C.Refusing to
compromise until the last possible moment
D.Asking for
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
B.Negative
attitudes among Saudi Arabians regarding hard work
C.Saudi Arabia’s
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
Frenchman’s mistake?
A.cognitive
dissonance
B.moral idealism
C.parochialism
D.projective
cognitive similarity
22) Which of the following best explains why
Avon expanded to the international market?