MGT 538 Final Exam Solutions
1) Experts suggest that firms that want to globalize through e-commerce must first localize, which means that firms need to
- use local suppliers, vendors, and distributors to manufacture products for the local market
- modify their products and services to meet the needs and interests of local cultures
- sell their products in a brick-and-mortar store before selling them through an e-market
- 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?
- Refusing to make concessions in advance
- Exhibiting a good sense of timing
- Being quiet and not arguing
- Understanding the issues
3) Dell most likely offshores product support service jobs to India because of the
- superior technical knowledge of Indian workers
- extensive call center experience of Indian workers
- lower payroll costs associated with Indian workers
- 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”?
- Asian contracts are not legally binding for MNCs.
- Contracts are ceremoniously destroyed after they are written.
- Managers risk being offensive to Asians by requiring contracts.
- 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.
6) Which of the following is a similarity between the negotiation styles of both North Americans and Latin Americans?
- Emotional sensitivity is highly valued.
- A strong commitment is shown to the employer.
- Significant importance is given to documentation.
- Negotiators are argumentative when they think they are right.
7) Arab negotiators will most likely make concessions because of their interest in
- saving valuable time
- preventing embarrassment
- forming long-term relationships
- implementing spontaneous decisions
8) According to research, what is the most significant monetary benefit for firms that implement corporate social responsibility?
- Employee retention
- High recruitment rates
- Increased brand value
- Improved organizational culture
9) Which of the following statements about the Foreign Corrupt Practices Act (FCPA) is NOT true?
- The FCPA allows grease payments as long as they are lawful in the host country.
- Possible penalties for violating the FCPA include severe fines and imprisonment.
- The FCPA allows firms to give government officials gifts in exchange for help.
- 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 thoughtful gesture from the American
- an inappropriate and impolite gesture
- a bribe punishable by imprisonment
- an obligation that must be reciprocated
11) Stereotyping should most likely be avoided by international managers because
- current variables of culture are grossly inaccurate
- many cultures have diverse subcultures
- many countries outlaw the practice
- national culture is nonexistent
12) Sweden barring airlines from transmitting passenger information most likely illustrates the
- dependence on the Internet by Swedish citizens
- lax enforcement of privacy rights in Sweden
- importance of the Internet to international business
- impact of culture on Internet usage
13) Which of the following is the primary reason for ineffective cross-cultural business negotiations?
- Insufficient knowledge about native bargaining rituals
- Highly restrictive government legislation
- Poorly planned business strategies
- Language differences
14) Most small and medium-sized enterprises are
- competing only on the local level due to technological and financial constraints
- investing heavily in world markets by offshoring their labor activities
- contributing to their national economies through exporting
- attempting to avoid becoming globalized too quickly
15) What is the best method for avoiding miscommunications?
- Taking detailed notes
- Learning foreign phrases
- Practicing projective listening
- Relying on a language interpreter
16) Problems associated with cross-cultural negotiations and decision making styles are the primary reasons for
- lawsuits filed against MNCs by angry shareholders
- decreasing numbers of international joint ventures
- increasing regulations within the European Union
- economic hardships in former socialist countries
17) Which of the following significantly increases the complexity of corporate social responsibility for MNCs?
- distance between the home office and the subsidiaries
- difficult nature of training managers in different cultures
- additional stakeholders associated with the firm’s activities
- 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?
- Primo becomes SA8000 certified.
- Sales of Primo’s competitors drop sharply.
- U.S. manufacturing jobs decrease in number.
- More service sector jobs become available in China.
19) Which of the following is a common Chinese tactic used during negotiations with Americans?
- Refusing to answer the Americans’ questions or respond to their inquiries
- Suggesting that the Americans are reneging on their friendship
- Refusing to compromise until the last possible moment
- 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?
- High wage rates and low taxes for expatriates at Saudi-based MNEs
- Negative attitudes among Saudi Arabians regarding hard work
- Saudi Arabia’s tight restrictions on male and female workers
- 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?
- cognitive dissonance
- moral idealism
- projective cognitive similarity
22) Which of the following best explains why Avon expanded to the international market?
- Increased domestic competition in the door-to-door cosmetic industry
- Increased number of American women in the workforce
- Decreased restrictions on cosmetics in the Chinese market
- Decreased number 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?
- Consult his supervisor in the United States.
- Discuss the issue with his local agent.
- Refer to the company’s code of ethics.
- Consult both American and Indonesian laws.
24) An international manager can best develop an understanding of a particular culture by
- creating a cultural profile for that country or region in which the firm does business
- assuming that American cultural styles and practices can be successfully transplanted
- using stereotypes to develop cross-cultural understanding in a business setting
- hiring locals 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
- speak explicitly and directly
- demand that specific results be met
- provide positive support to workers
- address conflicts during group meetings
26) Which of the following is a typical value in U.S. culture?
- Employment is for a lifetime.
- Success occurs because of luck.
- Commitments should be honored.
- Schedules are relative to other priorities.
27) A person working in a high-contact culture will most likely experience which of the following?
- Co-workers spending time together socially
- Managers using hand motions to express emotion
- Managers speaking to subordinates quickly and rudely
- Co-workers greeting each other with a double handshake
28) How will negotiators most likely benefit from exhibiting an understanding of the opponents’ viewpoints during presentations?
- Opponents succumb quicker to concession strategies than to aggressive bargaining tactics.
- Considering both sides promotes the assessment of a wide range of resolution alternatives.
- Emotional appeals not backed by information will be more persuasive to skeptical opponents.
- Cultural norms demand that each side share their weaknesses during the negotiation process.
29) Contingency theory proposes that the best organizational structure is that which
- enables a firm to globalize quickly
- leads to a high-efficiency work system
- provides for balanced control of subsidiaries
- allows the firm to carry out its strategic goals
30) Trust most likely improves cross-cultural communication by
- enabling managers to network effectively
- replacing formal legal contracts for global firms
- encouraging the open exchange of ideas and information
- eliminating all variables that hinder the communication process